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Monday 13 February 2017
Dallas Man Sentenced to 30 Months in Federal Prison after Pleading Guilty to Felony Offense Stemming from his Work with FAIM Economic Development CorporationRead the Press Release
DALLAS — Kevin Kenard Howard of Dallas, Texas, was sentenced today by U.S. District Judge Jane J. Boyle to serve 30 months in federal prison and pay $1,850,000 in restitution following his guilty plea in May 2016 to a felony offense stemming from his work with co-defendant Ellis Wamsley, IV and the FAIM Economic Development Corporation, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Howard, 34, pleaded guilty to one count of wire fraud and aiding and abetting. Judge Boyle ordered that he surrender to the Bureau of Prisons on April 26, 2017.
Co-defendant Wamsley, 47, of Grand Prairie, Texas, pleaded guilty in May 2016 to one count of engaging in a monetary transaction with property derived from specified unlawful activity and aiding and abetting and. Wamsley was sentenced to 54 months in federal prison and ordered to pay $1,850,000 in restitution in October 2016.
According to documents filed in the case, Wamsley formed FAIM in 2003, and in 2010, as its CEO, hired Howard to work as a financial consultant to assist in recruiting investors for FAIM. In summer 2010, while trying to recruit these investors to supply additional cash revenue for FAIM, Howard and Wamsley recruited “M.R.,” the owner/operator of “Company R,” in Flower Mound, Texas. They advised M.R. that a proposed joint venture between FAIM and Company R would generate funding for FAIM economic development projects in the southern sector of Dallas and throughout the U.S.
In August 2010, M.R. wired $2 million to a FAIM brokerage account at Charles Schwab. Approximately one month later, Wamsley transferred $1,791,703 in Company R’s investment funds from that account to a FAIM Merrill Lynch brokerage account that he had established and to which M.R. did not have access.
Wamsley told Howard that Howard would be FAIM’s primary point of contact with M.R. After the first few trades, the joint venture began to lose money. Wamsley told Howard to hide the investment losses from M.F. Howard agreed to, and did, lie to M.R. about the trading losses and the true balance of the investment account.
Howard knowingly participated in the fraud scheme by sending lulling emails to M.R. that contained false information about the true balance and value of the account. In November 2010, Howard sent an email to M.R. falsely assuring M.R. that profits in the investment account had increased. In December 2010, Howard sent an email to M.R. in which he falsely represented that the account balance was $2,436,611. In January 2011, Howard sent another email saying the total account balance was $2,500,000. In fact, from October 2010 to August 2011, Howard, at Wamsley’s instruction, sent several emails to M.R. with the specific intent to deceive, mislead and confuse M.R. about the account’s true balance. Wamsley and Howard also concealed that fact that Wamsley was diverting some of the funds in the account for his own personal benefit and use.
For instance, from October 2010 through April 2012, Wamsley fraudulently transferred more than $1.7 million of Company R investment funds to FAIM’s business accounts, and he unlawfully spent those funds for his, Howard’s and others’ personal benefits. For example, in November 2010, Wamsley used $40,024 in Company R investment funds to purchase a 2008 Cadillac Escalade for Howard; $41,764 of investment funds to purchase a 2008 Cadillac Escalade for a family member; and $125,477 in investment funds to purchase a 2007 Aston Martin for himself. Wamsley also used more than $200,000 in investment funds to host a Super Bowl fund-raising event in 2011.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. This defendant is the 16th defendant convicted since August 2013 as part of that initiative.
Internal Revenue Service Criminal Investigation investigated the case. Assistant U.S. Attorney David Jarvis was in charge of the prosecution.
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Cross Lanes couple prosecuted for methamphetamine conspiracyRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man was sentenced today to 12 years in federal prison for conspiring to distribute methamphetamine with his wife, announced United States Attorney Carol Casto. Matthew Little, 39, previously pleaded guilty to conspiracy to distribute five grams or more of methamphetamine. Sherri Little, the wife of Matthew Little, was previously sentenced to three years and fourth months in prison for a federal drug charge.
Matthew Little admitted that from early 2014 until December 2014, he conspired to distribute methamphetamine with his wife, Sherri Little. Matthew Little further admitted that he and his wife would sell methamphetamine, either from their residence in Cross Lanes or at different locations throughout Cross Lanes. On September 9, 2014, Matthew Little told a confidential informant working with law enforcement to go to his home for a drug deal. Once the confidential informant arrived at the house, Sherri Little called her husband to confirm the details of the drug deal. After the conversation with her husband, Sherri Little sold methamphetamine to the confidential informant.
On December 11, 2014, Matthew Little was arrested and law enforcement recovered several bags of methamphetamine from his vehicle. Matthew Little also admitted that he possessed three guns that were located in a backpack containing additional methamphetamine found during a search of a vehicle registered to his wife.
The cases against Matthew and Sherri Little were investigated by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney John J. Frail is in charge of the prosecution. United States
District Judge Thomas E. Johnston presided over these cases.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, including methamphetamine. 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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Cleveland man faces 15 years in prison for administering group that shared images of toddlers being sexually abusedRead the Press Release
A Cleveland man who administered an online group that shared images and videos of toddlers being sexually assaulted pleaded guilty today, said U.S. Attorney Carole S. Rendon.
Brian Keeling, 34, faces a mandatory minimum sentence of 15 years in prison after admitting to charges of advertising, receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
He is scheduled to be sentenced on May 26.
Keeling was the administrator of a group on Kik named “Toddlers” which included 50 members that shared images and videos of young children being raped and sexually assaulted, according to court documents.
A search of Keeling’s home at 3438 West 59th Street revealed he had more than 30 movie files and hundreds of images of toddlers being raped and sexually assaulted, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the U.S. Department of Homeland Security, Homeland Security Investigations.
Civilian Army Police Officer Pleads Guilty to Armed Bank RobberyRead the Press Release
Baltimore, Maryland – Alan Kemp, age 38, of District Heights, Maryland, pleaded guilty today to armed bank robbery and to using a firearm in relation to a crime of violence. Kemp was employed as a civilian police officer by the Department of the Army at Fort Myer in Arlington, Virginia, at the time of the crime.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Gary Gardner of the Howard County Police Department.
According to the information presented by the government at today’s plea hearing, on August 26, 2016, Kemp entered a bank in the 8400 block of Baltimore National Pike in Ellicott City wearing all black, a mask over his mouth, glasses over his eyes, black gloves, and a Baltimore Ravens hat, and was carrying a loaded black and tan handgun. Kemp pointed the gun at the teller and demanded money. The teller set the cash box on the counter and backed up, as Kemp had ordered. Kemp took the money and placed it in a black trash bag. Detectives were able to track Kemp to the intersection of Thunder Hill and Twin Knolls Roads, where they saw him walk out of the woods and get into a vehicle. Police stopped the vehicle and Kemp was arrested and searched. An empty brown leather holster was found on Kemp’s waistband. In the woods nearby police found a cooler which contained the black trash bag with the money in it. Subsequent investigation identified Kemp’s fingerprints inside the cooler. The gun was found in the trunk of Kemp’s car, unsecured. The gun was loaded with 12 rounds in the magazine and a round in the chamber.
Kemp faces a maximum sentence of 25 years in prison for armed bank robbery, and a mandatory minimum sentence of five years, consecutive to any other sentence, and up to life in prison for using a firearm in relation to a crime of violence. U.S. District Judge George L. Russell III has scheduled sentencing for May 12, 2017, at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI and Howard County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who is prosecuting the case.
Citizen of Haiti Admits Role in Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JACQUES FLEURIJEUNE, 27, also known as “Magic,” last residing in New London, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of conspiracy to commit mail and wire fraud stemming from his involvement in an insurance fraud scheme.
According to court documents and statements made in court, between April 2011 and February 2014, FLEURIJEUNE and others conspired to stage approximately 50 car crashes in southeastern Connecticut for the purpose of defrauding automobile insurance companies and enriching themselves. A high percentage of these planned crashes were single-vehicle accidents on remote roads where there were no witnesses other than the occupants of the crashed vehicle. After each staged accident, the defendants filed fraudulent property damage and bodily injury claims with various automobile insurance companies. They then collected payouts on the fraudulent claims from the victim insurance companies. These payouts typically ranged from approximately $10,000 to $30,000 per accident.
In pleading guilty, FLEURIJEUNE admitted his personal involvement in one staged crash that occurred on October 22, 2013, in Norwich. After another scheme participant crashed the vehicle, FLEURIJEUNE replaced the other participant in the driver’s seat and falsely reported to responding law enforcement officers that FLEURIJEUNE had been driving the car at the time of the crash, and that the crash occurred because he swerved into a tree to avoid hitting a deer in the road.
After the crash, FLEURIJEUNE and his co-conspirators submitted fraudulent insurance claims that misrepresented the conditions that caused the crash, who was driving the vehicle at the time of the crash, and whether and to what extent the occupants of the vehicle suffered injuries as a result of the crash. As a result, FLEURIJEUNE and others collected a total of $31,334.52 from the insurer.
Judge Meyer scheduled sentencing for May 10, 2017, at which time FLEURIJEUNE faces a maximum term of imprisonment of 20 years. FLEURIJEUNE, a citizen of Haiti, is detained.
This matter is being investigated by the Federal Bureau of Investigation, the Norwich Police Department and the National Insurance Crime Bureau, with the assistance of the Mohegan Tribal Police Department. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Chief of Maintenance Employee at Paradise #9 Mine Located in Muhlenberg County, Kentucky, Charged with Falsifying A Safety Record and Lying to Federal InspectorsRead the Press Release
BOWLING GREEN, Ky. – The Chief of Maintenance at Paradise #9 Mine located in Muhlenberg County, Kentucky was recently charged, by Grand Jury Indictment, for falsifying a safety record and lying to federal inspectors about making the fraudulent statement, announced Untied States Attorney John E. Kuhn, Jr.
According to the indictment, Daniel L. Couch, Jr., whose job it was to make a weekly inspection of electric equipment, specifically of the belt drive of coal seal 11 at Paradise #9 Mine, did not in fact make the required fire suppression checks for the week of May 1 through 7, in 2016.
On about May 17, 2016, an Inspector from the United States Department of Labor, Mine Safety & Health Administration, inspected the record book for fire suppression checks conducted on the belt drives for coal seam 11, which contains seven separate belt drives at seven different locations, and found that no fire suppression checks had occurred for the week of May 1 through 7, 2016.
On or about May 19, 2016, the Inspector returned to Paradise #9 mine and re-examined the record book for inspections for the belt drive for coal seam 11, at which time the book revealed that the belt drives had been examined on May 7, 2016 by “D. Couch,” and that no hazards had been observed.
Couch is further charged with knowingly making a false statement to an inspector of the United States Department of Labor, Mine Safety & Health Administration, by stating that he had been underground, and had made an inspection on the belt drive of coal seam 11 at Paradise #9 Mine on May 7, 2016, when the statement and representation was false, because the defendant had not been underground at the mine on that date, and had not conducted said inspection.
If convicted at trial, Couch could face no more than 5 years in prison. Couch’s whereabouts is unknown.
This case is being prosecuted by Assistant United States Attorney Randy Ream and is being investigated by the Mine Safety and Health Administration (MSHA) U.S. Department of Labor.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
California Mother and Son Convicted for Fraudulent Corporate Income Tax ReturnsRead the Press Release
A San Francisco, California mother and son were convicted today following a six-day trial for conspiring to file fraudulent corporate income tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Brian J. Stretch for the Northern District of California.
According to the evidence presented at trial, Howard Hsu owned and operated Didsee Corporation (Didsee), a Nevada company that provided advertisement marketing services to online websites and marketplaces. Tracy Chang, Hsu’s mother, was Didsee’s bookkeeper and was listed as the President, Secretary, Treasurer and Director. Chang opened bank accounts for the business, transferred money between the various accounts, and paid Didsee’s bills.
Hsu and Chang conspired together to file fraudulent 2008 through 2009 corporate income tax returns, and an amended 2007 corporate tax return, cheating the Internal Revenue Service (IRS) out of approximately $400,000. provided false summaries to Didsee’s return preparers, which claimed business expenses that were never incurred and included Hsu’s personal expenses. Chang signed the fraudulent returns as Didsee’s President.
“Owners can’t use their businesses as piggybanks, paying personal expenses out of their corporate accounts and falsely claiming them as business expenses,” said Acting Deputy Assistant Attorney General Goldberg. “All employers are legally required to file accurate and complete returns and pay their fair share – just like their employees.”
“This case was not about a mistake or a misunderstanding, it was about greed,” said Special Agent in Charge Michael T. Batdorf of IRS Criminal Investigation (CI). “Tracy Chang agreed to help her son, Howard Hsu and his business cheat the IRS. Hsu fabricated millions of dollars in expenses and Chang knew the expenses were false. She maintained the books and signed the tax returns while Hsu gave the CPA the “cooked books”. In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe.”
A sentencing date has not been scheduled. Hsu and Chang face a statutory maximum sentence of five years in prison for the conspiracy count and three years in prison for the false return counts. Hsu and Chang also face a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Colin Sampson and Trial Attorney Matthew Kluge 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.
California Mother and Son Convicted for Fraudulent Corporate Income Tax ReturnsRead the Press Release
SAN FRANCSICO – San Francisco residents Howard Hsu and his mother, Tracy Chang, were convicted today following a one-week trial for conspiring to file fraudulent corporate income tax returns, announced U.S. Attorney Brian J. Stretch and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the evidence presented at trial, Hsu, 36, owned and operated Didsee Corporation (Didsee), a Nevada company that provided advertisement marketing services to online websites and marketplaces. Tracy Chang, 65, was Disdee’s bookkeeper and was listed as the President, Secretary, Treasurer and Director. Chang opened bank accounts for the business, transferred money between the various accounts, and paid Didsee’s bills.
Hsu and Chang conspired together to file fraudulent 2008 through 2009 corporate income tax returns, and an amended 2007 corporate tax return, cheating the Internal Revenue Service (IRS) out of approximately $400,000. Hsu provided false summaries to Didsee’s return preparers, which claimed business expenses that were never incurred and included Hsu’s personal expenses. Chang signed the fraudulent returns as Didsee’s President.
“Owners can’t use their businesses as piggybanks, paying personal expenses out of their corporate accounts and falsely claiming them as business expenses,” said Acting Deputy Assistant Attorney General Goldberg. “All employers are legally required to file accurate and complete returns and pay their fair share – just like their employees.”
“This case was not about a mistake or a misunderstanding, it was about greed ,” said Special Agent in Charge Michael T. Batdorf of IRS Criminal Investigation (CI). “Tracy Chang agreed to help her son, Howard Hsu and his business cheat the IRS. Hsu fabricated millions of dollars in expenses and Chang knew the expenses were false. She maintained the books and signed the tax returns while Hsu gave the CPA the “cooked books”. In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe.”
A date for sentencing has not yet been scheduled. Hsu and Chang face a statutory maximum sentence of five years in prison for the conspiracy count and three years in prison for the false return counts. Hsu and Chang also face a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Colin Sampson and Trial Attorney Matthew Kluge of the Tax Division, who are prosecuting the case.
Belleville Man Charged with Bank Robbery of Regions Bank in Collinsville, IllinoisRead the Press Release
Michael S. Putman, 50, of Belleville, was charged on Saturday, February 11, 2017, with a one-count criminal complaint of Bank Robbery. The alleged violation took place on Friday, February 10, 2017 in Collinsville, Madison County, Illinois. Today, the Court ordered that Putman be detained without bond pending indictment.
The offense charged in the complaint alleges that on February 10, 2017, Michael Putman committed the offense of Bank Robbery in that he 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 Regions Bank in Collinsville, Illinois.
If convicted, the defendant faces a term in prison of up to 20 years, 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 case was investigated by the Collinsville Police Department and the Federal Bureau of Investigation with assistance from the Illinois State Police, East St. Louis Police Department and the United States Marshal Service. The case is assigned to Assistant United States Attorney Ali Summers.
Bank Manager Admits Stealing More Than $500K from Customer AccountsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARRIE CAESAR, 46, of New Britain, pleaded guilty today in New Haven federal court to embezzling funds from Webster Bank Corporation.
According to court documents and statements made in court, CAESAR was a long-time employee of Webster Bank where she served in a variety of roles, including bank teller, account manager and, most recently, as manager of the Avon branch office. Between 2003 and 2016, CAESAR withdrew at least $535,600 from account holders’ certificate of deposit (CD) accounts at Webster Bank, without the knowledge or consent of the account holders, used the embezzled funds for her own purposes, and took steps to conceal her misconduct.
CAESAR targeted primarily six customers, all of whom were at least 79 years old and with whom she had developed a relationship as an account manager.
CAESAR pleaded guilty to one count of theft, embezzlement and misapplication by a bank officer and employee, an offense that carries a maximum term of imprisonment of 30 years. She is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on May 8, 2017.
CAESAR is released on a $150,000 bond.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Albuquerque-Area Construction Contractor Pleads Guilty to Federal Tax Evasion and Fraud ChargesRead the Press Release
ALBUQUERQUE – Joseph Dubois, 37, of Albuquerque, N.M., pled guilty last week in federal court to evading federal taxes evasion and fraudulently presenting a fictitious surety bond. The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Ismael Nevarez Jr. of the Phoenix Field Office of IRS Criminal Investigation, and Special Agent in Charge David A. House of the Department of the Interior, Office of Inspector General.
Dubois, the owner and operator of Regency Development Group (RDG), a construction contractor located in Albuquerque, was charged by felony information with tax evasion and presenting a fictitious surety bond. According to the information, Dubois evaded his federal corporate tax obligations from Nov. 2011 to Oct. 2013, by opening and concealing a new bank account to circumvent tax liens, removing and dissipating assets to avoid their seizure, and by underreporting income and gross receipts. The information also alleged that Dubois created a materially false document, a surety bond, and fraudulently presented it as an actual security and financial instrument under the authority of a surety company.
On Feb. 8, 2017, Dubois pled guilty to the two charges in the information. In entering the guilty plea, Dubois admitted that as owner and operator of RDG, he evaded payment of $237,251 in federal employment taxes for tax years 2010 through 2012. Specifically, Dubois admitted that from Nov. 2011 through Oct. 2013, he opened a bank account which he used to divert funds in an attempt to circumvent liens and levies, and to evade payment of his tax liabilities. Dubois also acknowledged underreporting income and gross receipts to the IRS.
According to Dubois’s plea agreement, in Dec. 2011, RDG entered into contracts with the Ramah Navajo School Board to renovate a building at the Pine Hill School. The contracts required RDG to obtain and provide a surety bond. On Feb. 10, 2012, Dubois produced a materially false and fictitious surety bond which appeared to be an actual security under the authority of the Western Surety Company.
At sentencing, Dubois faces a statutory maximum penalty of 25 years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of IRS Criminal Investigation and Department of the Interior, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Jeremy Pena.
Albuquerque Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jorge Chacon, 33, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms laws by unlawfully using and carrying a firearm in furtherance of a drug trafficking crime.
Chacon was arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Chacon was charged in a seven-count indictment filed on June 30, 2016. The indictment charged Chacon with distributing methamphetamine, carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm on May 16, 2016; being a felon in possession of a firearm on May 19, 2016; being a felon in possession of a firearm and possession of firearms with obliterated serial numbers on May 26, 2016. According to the indictment, Chacon committed the offenses in Bernalillo County. Chacon was prohibited from possessing firearms or ammunition because of his prior felony convictions for burglary, aggravated battery and aggravated battery with a deadly weapon.
During today’s proceedings, Chacon pled guilty to Count 2 of the indictment charging him with carrying a firearm in relation to a drug trafficking crime. In entering the guilty plea, Chacon admitted that on May 16, 2016, he carried a firearm in furtherance of the sale of methamphetamine. At sentencing, Chacon faces a statutory mandatory minimum penalty of five years in federal prison. A sentencing hearing has yet to be scheduled.
To date, 27 of the 104 defendants have entered guilty pleas and two have been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque office of ATF. Assistant U.S. Attorney Norman Cairns is prosecuting the case.
Albuquerque Man Pleads Guilty to Aiding and Abetting Armed Bank RobberyRead the Press Release
ALBUQUERQUE – Christopher Gallegos, 33, of Albuquerque, N.M., pled guilty this morning in federal court to aiding and abetting the armed robbery of an Albuquerque-area bank.
Christopher Gallegos was arrested in March 2016, on a criminal complaint charging him and four co-defendants, Greg Miera, 51, Martin Huerta, 43, Christian Herrera, 20, and Isaiah Gallegos, 20, all of Albuquerque, with bank robbery. According to the complaint, a source identified the co-defendants as the individuals involved in robbing the US Bank branch located at 5620 Wyoming Blvd. NE in Albuquerque, on March 30, 2016. The complaint alleged that Albuquerque Police Department (APD) officers conducted surveillance as a vehicle with four men pulled up to the US Bank on the afternoon of March 30, 2016. The complaint alleged that three of the men remained in the vehicle while the fourth entered the bank, threatened to shoot the bank employees, and demanded that two bank tellers place cash into a plastic bag.
Miera, Huerta, Herrera, Isaiah Gallegos and Christopher Gallegos were subsequently indicted on an armed bank robbery charge on April 27, 2016.
During today’s proceedings, Christopher Gallegos entered a guilty plea to the indictment. In entering the guilty plea, Christopher Gallegos admitted aiding and abetting the armed robbery of the U.S. Bank branch on March 30, 2016, by conducting surveillance of various potential banks in the two days leading up to the robbery.
Co-defendant Huerta previously entered a guilty plea to the indictment on Sept. 9, 2016, and Miera entered a guilty plea on Oct. 11, 2016.
At sentencing, Christopher Gallegos, Miera and Huerta each face a statutory maximum penalty of 25 years in federal prison. The co-defendants remain in custody pending sentencing hearings.
The two remaining co-defendants have entered pleas of not guilty to the indictment. Charges in complaints and indictments are merely accusations and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Letitia Simms is prosecuting the case.
Saturday 11 February 2017
New England HIDTA Recognized for Investigative ExcellenceRead the Press Release
BOSTON – The New England High Intensity Drug Trafficking Area (HIDTA) was recognized on Thursday, Feb. 9, 2017, with the National HIDTA of the Year Award for its outstanding work in reducing drug trafficking in the region.
“The New England HIDTA has been instrumental in disrupting the flow of dangerous drugs in the region,” said Acting United States Attorney William D. Weinreb. “Their work is unquestionably demanding, dangerous and at times thankless, but through their dogged determination communities across New England are safer places for children and families to call home. I hope this award validates their hard work and reaffirms their commitment in these challenging times. Congratulations to the leadership and each member of the NEHIDTA team.”
“New England HIDTA is both honored and humbled to be recognized as HIDTA of the year for 2016,” said Jay Fallon, Executive Director of New England HIDTA. “This award serves to honor the efforts of all entities affiliated with the HIDTA Program. We will continue to address the burgeoning drug threat in New England holistically with our partners in law enforcement, treatment, prevention and education.”
In 2015, the New England HIDTA disrupted or dismantled 170 drug trafficking organizations (DTOs) and 19 money laundering organizations (MLOs). This represents 6% of all DTOs and 10% of all MLOs disrupted or dismantled nationwide. In addition, in 2015, the New England HIDTA trained more than 3,400 students, supported more than 12,000 de-conflictions, and provided analytical support to nearly 400 cases.
The New England HIDTA has also championed innovative and progressive approaches to law enforcement and counterdrug policy. The HIDTA’s SCOPE of Pain initiative, conducted in collaboration with Boston University School of Medicine, has become a model for public health and public safety partnerships to combat the opioid epidemic. The New England HIDTA also is recognized as one of the founding members of the HIDTA Heroin Response Strategy, which now encompasses eight regional HIDTAs and 20 states.
The New England HIDTA and its leadership have also been reliable and trusted partners to the White House Office of National Drug Control Policy (ONDCP) and to the entire National HIDTA Program. They frequently host events in collaboration with ONDCP leadership and support the implementation of the National Drug Control Strategy priorities throughout the New England region.
The HIDTA program, created by Congress through the Anti-Drug Abuse Act of 1988, facilitates cooperation and intelligence sharing between federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. There are currently 28 HIDTAs, which include approximately 16% of all counties in the United States and 60% of the U.S. population. The New England HIDTA was designated in 1999 to eliminate DTOs and improve efficiency and effectiveness of law enforcement. For more information on the New England HIDTA, visit their website.
Former U.S. Attorney honored at national HIDTA award ceremonyRead the Press Release
WHEELING, WEST VIRGINIA – Former U.S. Attorney William J. Ihlenfeld, II, was presented with the Outstanding Support to the National HIDTA Program award this week, Acting United States Attorney Betsy Steinfeld Jividen, announced.
In presenting him with this prestigious award, The Office of National Drug Control Policy stated that:
“Mr. Ihlenfeld demonstrated a remarkable commitment to the HIDTA program. In addition to serving on the executive boards of both the Appalachia and the Washington/Baltimore HIDTAs, he advocated for expansion of the HIDTA program to the counties in his state that were among the hardest hit by the opioid epidemic. Mr. Ihlenfeld also is noteworthy for championing drug use prevention initiatives in his state and throughout the HIDTA regions he served. Mr. Ihlenfeld is recognized as a powerful advocate of and steadfast partner to the National HIDTA Program.”
Jividen said, “Those of us who worked with Bill are glad to see him honored for his hard work and many achievements in this area during his tenure as United States Attorney.”
Friday 10 February 2017
Woman Sentenced in Prison Bribery and Drug Trafficking CaseRead the Press Release
MISSOULA —Lauren Jane Hoskins, 26, of Somerville, Tennessee, was sentenced to 14 months in prison, 3 years supervised release, and a $100 special assessment by Chief United States District Court Judge Dana L. Christensen on Friday, February 10, 2017 for aiding and abetting the possession with intent to distribute controlled substances—methamphetamine and Suboxone—into the Montana State Prison The charges were part of a scheme where Erin Bernhardt, an employee in the prison laundry, smuggled the controlled substances into inmates at the prison in exchange for bribes. The crimes occurred between April and August 2015.
The court previously sentenced other members of the scheme to the following sentences: Cordero Robert Metzker, to three years in prison; Erin Bernhardt, to 14 months in prison; and Ian Scott Barclay to 92 months in prison.
The charge against Hoskins is the result of an investigation by the Federal Bureau of Investigation, the United States Postal Inspector, the Montana Department of Corrections-Division of Investigations, Montana State Prison Warden Leroy Kirkegard and his staff, and the Montana Division of Criminal Investigations. Criminal Chief Assistant United States Attorney Joseph Thaggard and Assistant United States Attorney Jeffrey Starnes prosecuted the case.
United States Attorney Michael Cotter stated, “This is an important case aimed at an ongoing effort to root out public corruption and exclude unlawful controlled substances from the Montana State Prison. The sentence issued by the court sends a powerful message that those who introduce drugs into the prison will be investigated, prosecuted, and imprisoned.” Cotter also praised the cooperation of the various agencies that worked in unison to conduct the investigation and prosecution.
Westerly Resident Sentenced for Operating Butane Hash Oil LabRead the Press Release
PROVIDENCE, R.I. – Scott Slagel, 41, of Westerly, RI, was sentenced today by U.S. District Court Judge John J. McConnell, Jr., to three years probation for operating a butane hash oil lab in his Westerly residence. Slagel pleaded guilty on May 13, 2016, to endangering human life while illegally manufacturing a controlled substance.
In court filings and at today’s sentencing hearing, the government recommended a sentence of 27 months imprisonment, which falls within the sentencing guideline range in this matter of 24 to 30 months imprisonment.
According to court documents and information presented to the court, in the early morning hours of November 27, 2015, in the wake of a fire in a multi-unit apartment building on Apache Drive in Westerly, investigators discovered an active butane hash oil lab in the unit where the fire originated. After extinguishing the fire and securing the scene, investigators located a number of items related to a butane hash oil manufacturing laboratory, including marijuana plants, multiple cans of butane, glass tubes and a vacuum oven containing butane hash oil, commonly referred to as “shatter.”
At the time of his guilty plea, Slagel admitted to the court that he used the above-described items to manufacture butane hash oil, in what is known as the open-blast method - a dangerous and potentially explosive process.
In March 2016, in announcing federal criminal charges in four cases against five individuals all of whom, it is alleged, were involved in the operation of unrelated BHO labs in South Kingstown, Westerly, Providence, and West Warwick, including the lab discovered in Slagel’s residence, United States Attorney Peter F. Neronha said then, and reiterates now, “This activity poses an enormous threat to human life. Where BHO manufacturing is going on, no one is safe: not those involved in the illegal operation themselves; not those who happen to be living or visiting nearby; not first responders. The demand for BHO, whether for purported medical purposes or otherwise, cannot justify its production, given the magnitude of risk. Second, those who continue to engage in the production of BHO, notwithstanding what ought to be abundantly clear by now, will be the strong focus of our collective law enforcement efforts.”
This case was prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Richard B. Myrus.
This matter was investigated by the Westerly Police Department, DEA and the Rhode Island State Fire Marshal’s Office.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Virginia Attorney Convicted of Defrauding Local Construction Company Out of More Than A Million DollarsRead the Press Release
FRANKFORT, Ky. – Daniel R. Goodwin, an attorney from McLean, Virginia, has been convicted of defrauding a Laurel County construction company, in connection with a purported project to build a “green recycling center” in Manchester, Ky. The company, Elza Construction, LLC, lost $1.32 million upfront and incurred several million dollars more in excavation and site preparation costs, but nothing was ever built at the site.
Late Thursday, a federal jury in Frankfort delivered a guilty verdict on four counts of wire fraud and one count of conspiracy to commit wire fraud. The verdict came after a week of trial and a day-and-a-half of deliberation.
The evidence at trial established that from 2008 until at least 2011, a company called “Waste Not Technologies,” which also went by the name “Global Green Holdings,” made false promises to the city of Manchester and several would-be contractors who wanted to work on building a green recycling center that would turn municipal waste into useful products like railroad ties and insulation. David Bennett, the chief executive officer of Global Green Holdings, promised the project would create 1,400 jobs and bring in millions in revenue.
Part of this scheme was to require contractors like Elza Construction to send money to an escrow account in lieu of a traditional construction performance bond, with the promise that the money would be used to release financing for the project and that the money would be returned on a set schedule, typically within 3 to 4 months. Daniel Goodwin controlled the escrow account that received money from Elza Construction and others. Instead of following the terms of written agreements, he distributed the money among his co-conspirators and kept some of it for himself. The money was never returned to Elza Construction or any of the other contractors.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly announced the verdict. The case was investigated by the FBI and Assistant U.S. Attorneys Gregory Rosenberg and Andrew Trimble prosecuted the case on behalf of the federal government.
Goodwin is scheduled to be sentenced on June 14, 2017. He faces a maximum sentence of 20 years on each count of wire fraud, and a maximum of five years on the count of conspiracy to commit wire fraud. However, any sentence would be imposed only after the Court has considered the U.S. Sentencing Guidelines and the applicable statutes.
U.S. Attorney's Office Concludes Investigation into Fatal Shooting in Northeast WashingtonRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that it has completed its review of the fatal shooting of Peter John, Jr., by a Metropolitan Police Department (MPD) officer on Feb. 1, 2016, in the Clay Terrace area of Northeast Washington. After a careful review of all of the evidence, the U.S. Attorney’s Office has concluded that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against the officer involved in the fatal shooting of Mr. John.
The U.S. Attorney’s Office and the Metropolitan Police Department conducted a comprehensive review of the incident, including interviews of civilian and law enforcement witnesses as well as a review of autopsy and toxicology reports, Mobile Crime and District of Columbia Department of Forensic Sciences reports, photographs, and diagrams; video footage enhanced by the FBI; DNA analysis; audio transmissions; and physical evidence collected on the scene, including a BB pistol that is virtually identical in appearance to a real firearm.
According to the evidence, the shooting took place Feb. 1, 2016, at approximately 2:07 a.m., in the 5300 block of Clay Terrace NE. The officer, who was assigned to patrol the area in a marked MPD sport utility vehicle, first encountered Mr. John, 36, in the vicinity of the 300 block of 53rd Street NE. When the officer rolled down his window to ask Mr. John if he lived in the area, Mr. John started running and disappeared on nearby Cloud Place NE. As the officer continued his patrol, he saw Mr. John again, this time standing by a parking lot in the 300 block of 53rd Street NE. As the officer pulled up, Mr. John ran past the officer’s SUV and into the Clay Terrace housing area. After unsuccessfully trying to block Mr. John’s path by driving around the block, the officer drove back to the parking lot area and again saw Mr. John.
As the officer was pulling over, Mr. John ran past the officer’s SUV. The officer got out of his vehicle and pursued Mr. John on foot. As Mr. John turned left into the 5300 block of Clay Terrace, he slipped on the wet ground. According to the officer, as Mr. John fell, he saw a black gun, later determined to be a BB gun, fall from Mr. John’s hand. Mr. John landed on top of the gun. The officer, who was right behind Mr. John, could not stop his momentum and ended up straddling Mr. John while activating the emergency button on his radio for help. The officer ordered Mr. John to show his hands. Instead, Mr. John struggled repeatedly to push himself up from the ground while reaching under his body in the direction of the gun. As Mr. John raised up, the officer fired one round, fatally wounding Mr. John in the neck area. In less than 30 seconds, another officer arrived on the scene and observed the gun next to Mr. John’s body. DNA testing further confirmed that Mr. John’s DNA was on the weapon.
While the shooting was not captured on video, the footage of the dimly lit area shows furtive movements by Mr. John, to include Mr. John emerging from behind a building near Cloud Place, and his unprovoked flight from the officer.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the officer used excessive force under the circumstances. To the contrary, there is sufficient evidence to corroborate the officer’s account that he was acting in self-defense at the time of the shooting.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove such violations, prosecutors must typically be able to prove that the involved officers willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids. A conclusion that “there is insufficient evidence” is not meant to suggest anything further about what evidence, if any, exists.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are fully and completely investigated. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
Two Rochester Men Indicted on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y.-Acting U.S. James P. Kennedy, Jr. announced today that a federal grand jury has indicted Brian Donaldson, 50, of Webster, NY, and Pablo Ulloa, 33, of Rochester, NY, on a charge of conspiracy to possess with intent to distribute five grams or more of methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the indictment and a previously filed complaint, the Drug Enforcement Administration received a tip regarding the drug trafficking activities of the defendants. On October 27, 2016, Hamburg Police conducted surveillance at a local motel where the defendants were staying. At approximately 9:15 p.m., Donaldson left the motel and was subsequently pulled over in a traffic stop by Hamburg officers. A search of the vehicle recovered a small quantity of methamphetamine, and a lock box which contained a much larger quantity of methamphetamine.
A search was then conducted of the motel room where Donaldson and Ulloa were staying. During that search, officers recovered more containers of methamphetamine, several cellular telephones, drug packaging materials, a scale and pipes.
The defendants will be arraigned at a later date before U.S. Magistrate judge Michael J. Roemer.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division and the Hamburg Police Department, under the direction of Chief Gregory Wickett.
The fact that defendants have been charged with crimes are merely accusations and defendants are presumed innocent until and unless proven guilty.
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Two New York City Residents Pleaded Guilty to All Charges in Terrorism CaseRead the Press Release
Earlier today, Munther Omar Saleh, 21, of Queens, New York, pleaded guilty at the federal courthouse in Brooklyn, New York, to all charges in an indictment charging him with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and with assaulting and conspiring to assault federal officers. Saleh’s co-defendant, Fareed Mumuni, 22, of Staten Island, New York, pleaded guilty yesterday, on Thursday, February 9, to conspiring and attempting to provide material support to ISIL, assaulting and conspiring to assault federal officers and attempted murder of federal officers. Saleh faces up to 53 years of imprisonment at sentencing, while Mumuni faces up to 85 years of imprisonment at sentencing. Saleh’s and Mumuni’s guilty pleas were accepted by U.S. District Judge Margo K. Brodie, who has scheduled both sentencing hearings for May 16.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Robert L. Capers for the Eastern District of New York, Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office and Commissioner James P. O’Neill of the New York City Police Department (NYPD).
“Munther Omar Saleh and Fareed Mumuni conspired to provide material support to ISIL and devised a plan to conduct an attack in New York. During his arrest, Mumuni stabbed an FBI agent numerous times, but thankfully the agent’s body armor protected him from the defendant’s attack and the defendant was safely apprehended by law enforcement,” said Acting Assistant Attorney General McCord. “Counterterrorism is the National Security Division’s highest priority. We will continue to seek justice against any individuals who conspire to provide material support to designated foreign terrorist organizations, and those who attempt to harm the brave law enforcement officials who risk their lives to protect us.”
“In the name of ISIL’s false and hateful ideology, these defendants attacked the law enforcement officers who work tirelessly to preserve the safety of our communities,” stated U.S. Attorney Capers. “We are especially grateful that an FBI Special Agent survived the violent attack perpetrated by Fareed Mumuni, who repeatedly stabbed the agent in the chest during the execution of a search warrant in a terrorism investigation. We and our partners on the Joint Terrorism Task Force remain ever-vigilant in our efforts to protect our citizens and allies and by bringing terrorists to face justice. Today’s convictions will help incapacitate these defendants and sends a strong message to those who would follow in their footsteps.” Mr. Capers thanked the West Midlands Police in the United Kingdom for their assistance in providing evidence related to foreign coconspirators.
“Today’s guilty pleas show just how close the threat of homegrown terrorism exists for New York City. From their respective homes in Queens and Staten Island, Saleh and Mumuni conspired to place a pressure cooker bomb in the New York metro area on behalf of ISIL. Mumuni even attacked an FBI agent when a court-authorized search was being conducted by the Joint Terrorism Task Force at his home in Staten Island. Threats like this are exactly why protecting the United States from a terrorist attack remains the FBI’s number one priority,” stated Assistant Director in Charge Sweeney.
“Saleh and Mumumi engaged in plotting attacks against New York City in the name of ISIL. They received instructions from senior ISIL leaders in Syria. They were committed to violence. When the arrests were made the defendants were armed. One attacked an FBI agent with a large knife. The detection and disruption of these plots is a credit to the partnership between the FBI-NYPD Joint Terrorism Task Force and the NYPD's Intelligence Bureau,” said Police Commissioner O'Neill.
As alleged in the indictment and in other court filings, Saleh and Mumuni conspired to support ISIL by helping their co-conspirators attempt to travel to ISIL-controlled territory in order to join ISIL, and by plotting to use a pressure-cooker bomb to conduct a terrorist attack in the New York metropolitan area on behalf of ISIL. As part of their support for ISIL, Saleh and Mumuni, together with other co-conspirators, assisted New Jersey resident Nader Saadeh’s planned travel to ISIL-controlled territory. Saleh personally accompanied Saadeh to John F. Kennedy International Airport where Saadeh departed on a flight for Jordan in the first leg of a planned trip to ISIL-controlled territory. Saadeh was subsequently apprehended and pleaded guilty in the U.S. District Court for the District of New Jersey to conspiring to provide material support to ISIL. Working with ISIL fighters located overseas, Saleh and Mumuni also coordinated their plot to conduct a terrorist attack in New York City. Saleh sought and received instructions from an ISIL attack facilitator to create a pressure-cooker bomb and discussed with the same ISIL attack facilitator potential targets for a terrorist attack in New York City.
As detailed in court documents, Saleh informed ISIL fighters that his co-conspirators, five individuals located in New York and New Jersey, had confronted law enforcement officers who were continuously surveilling them. Saleh also sought and received religious authorization from an ISIL fighter permitting Mumuni to conduct a suicide “martyrdom” attack by using a pressure-cooker bomb against law enforcement officers who were following the co-conspirators and thus preventing them from traveling to join ISIL.
On June 13, 2015, Saleh and another individual were arrested in Queens after they charged at a federal officer who was performing physical surveillance of Saleh. Saleh and the other individual were armed with knives. Following his arrest, Saleh admitted to agents that he had discussed with Mumuni physically attacking the law enforcement officers who were surveilling Mumuni. On June 17, 2015, during the execution of a search warrant at his residence in Staten Island, Mumuni was arrested after he repeatedly stabbed an FBI agent in the torso with a large kitchen knife. Fortunately, the knife did not penetrate the agent’s protective body armor and he sustained only minor injuries.
During a search of the vehicle used by Mumuni, investigators recovered a second large knife. In his post-arrest interview, Mumuni admitted that Saleh had informed him that an ISIL member had sanctioned Mumuni’s planned suicide attack on law enforcement and that Saleh and Mumuni had discussed using a pressure-cooker bomb to carry out the attack. Mumuni further admitted that he had kept the knife he used to attack the agent wrapped in a t-shirt in his bed, as well as the knife recovered from the vehicle, specifically for use in an anticipated confrontation with law enforcement officers.
The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda and Ian C. Richardson for the Eastern District of New York are in charge of the prosecution, with assistance provided by Trial Attorneys Justin Sher and Robert Sander of the National Security Division’s Counterterrorism Section.
Two New York City Residents Plead Guilty to All Charges in Terrorism CaseRead the Press Release
Earlier today, Munther Omar Saleh of Queens, New York, pleaded guilty at the federal courthouse in Brooklyn, New York, to all charges in an indictment charging him with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), and with assaulting and conspiring to assault federal officers. Saleh’s co-defendant, Fareed Mumuni, of Staten Island, New York, pleaded guilty yesterday, on Thursday, February 9, 2017, to conspiring and attempting to provide material support to ISIL, assaulting and conspiring to assault federal officers, and attempted murder of federal officers. Saleh faces up to 53 years of imprisonment at sentencing, while Mumuni faces up to 85 years of imprisonment at sentencing. Saleh’s and Mumuni’s guilty pleas were accepted by United States District Judge Margo K. Brodie, who has scheduled both sentencing hearings for May 16, 2017.
The pleas were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Acting Assistant Attorney General for National Security Mary B. McCord, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Commissioner James P. O’Neill of the New York City Police Department (NYPD).
As alleged in the indictment and in other court filings, Saleh and Mumuni conspired to support ISIL by helping their coconspirators attempt to travel to ISIL-controlled territory in order to join ISIL, and by plotting to use a pressure-cooker bomb to conduct a terrorist attack in the New York metropolitan area on behalf of ISIL. As part of their support for ISIL, Saleh and Mumuni, together with other coconspirators, assisted New Jersey resident Nader Saadeh’s planned travel to ISIL-controlled territory. Saleh personally accompanied Saadeh to John F. Kennedy International Airport where Saadeh departed on a flight for Jordan in the first leg of a planned trip to ISIL-controlled territory. Saadeh was subsequently apprehended and pleaded guilty in the United States District Court for the District of New Jersey to conspiring to provide material support to ISIL. Working with ISIL fighters located overseas, Saleh and Mumuni also coordinated their plot to conduct a terrorist attack in New York City. Saleh sought and received instructions from an ISIL attack facilitator to create a pressure-cooker bomb and discussed with the same ISIL attack facilitator potential targets for a terrorist attack in New York City.
As detailed in court documents, Saleh informed ISIL fighters that his coconspirators—five individuals located in New York and New Jersey—had confronted law enforcement officers who were surveilling them continuously. Saleh also sought and received religious authorization from an ISIL fighter permitting Mumuni to conduct a suicide “martyrdom” attack by using a pressure-cooker bomb against law enforcement officers who were following the coconspirators and thus preventing them from traveling to join ISIL.
On June 13, 2015, Saleh and another individual were arrested in Queens after they charged at a federal officer who was performing physical surveillance of Saleh. Saleh and the other individual were armed with knives. Following his arrest, Saleh admitted to agents that he had discussed with Mumuni physically attacking the law enforcement officers who were surveilling Mumuni. On June 17, 2015, during the execution of a search warrant at his residence in Staten Island, Mumuni was arrested after he repeatedly stabbed an FBI agent in the torso with a large kitchen knife. Fortunately, the knife did not penetrate the agent’s protective body armor, and he sustained only minor injuries. During a search of the vehicle used by Mumuni, investigators recovered a second large knife. In his post-arrest interview, Mumuni admitted that Saleh had informed him that an ISIL member had sanctioned Mumuni’s planned suicide attack on law enforcement and that Saleh and Mumuni had discussed using a pressure-cooker bomb to carry out the attack. Mumuni further admitted that he had kept the knife he used to attack the agent wrapped in a t-shirt in his bed, as well as the knife recovered from the vehicle, specifically for use in an anticipated confrontation with law enforcement officers.
“In the name of ISIL’s false and hateful ideology, these defendants attacked the law enforcement officers who work tirelessly to preserve the safety of our communities,” stated United States Attorney Capers. “We are especially grateful that an FBI Special Agent survived the violent attack perpetrated by Fareed Mumuni, who repeatedly stabbed the agent in the chest during the execution of a search warrant in a terrorism investigation. We and our partners on the Joint Terrorism Task Force remain ever-vigilant in our efforts to protect our citizens and allies by bringing terrorists to justice. These convictions will help incapacitate these defendants and send a strong message to those who would follow in their footsteps.” Mr. Capers thanked the West Midlands Police Counterterrorism Unit in the United Kingdom for their assistance with regard to foreign coconspirators.
“Munther Omar Saleh and Fareed Mumuni conspired to provide material support to ISIL and devised a plan to conduct an attack in New York. During his arrest, Mumuni stabbed an FBI agent numerous times, but thankfully the agent’s body armor protected him from the defendant’s attack and the defendant was safely apprehended by law enforcement,” said Acting Assistant Attorney General McCord. “Counterterrorism is the National Security Division’s highest priority. We will continue to seek justice against any individuals who conspire to provide material support to designated foreign terrorist organizations, and those who attempt to harm the brave law enforcement officials who risk their lives to protect us.”
“Today’s guilty pleas show just how close the threat of homegrown terrorism exists for New York City. From their respective homes in Queens and Staten Island, Saleh and Mumuni conspired to place a pressure cooker bomb in the New York metro area on behalf of ISIL. Mumuni even attacked an FBI agent when a court-authorized search was being conducted by the Joint Terrorism Task Force at his home in Staten Island. Threats like this are exactly why protecting the United States from a terrorist attack remains the FBI’s number one priority,” stated Assistant Director-in-Charge Sweeney.
“Saleh and Mumumi engaged in plotting attacks against New York City in the name of ISIL. They received instructions from senior ISIL leaders in Syria. They were committed to violence. When the arrests were made the defendants were armed. One attacked an FBI agent with a large knife. The detection and disruption of these plots is a credit to the partnership between the FBI-NYPD Joint Terrorism Task Force and the NYPD’s Intelligence Bureau,” said Police Commissioner O'Neill.
The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda, and Ian C. Richardson are in charge of the prosecution, with assistance provided by Trial Attorneys Justin Sher and Robert Sander of the National Security Division’s Counterterrorism Section.
The Defendants:
MUNTHER OMAR SALEH
Age: 21
Queens, New York
FAREED MUMUNI
Age: 22
Staten Island, New York
E.D.N.Y. Docket No. 15-CR-393 (MKB)
Twin Cities Man Sentenced to 41 Months in Prison for Filing Fraudulent Tax ReturnsRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of JULIUS LEE BOSTON, 37, to 41 months in prison for filing false income tax returns seeking approximately $135,000. BOSTON pleaded guilty on August 31, 2016, before U.S. District Judge Patrick J. Schiltz.
“At the IRS, protecting taxpayer dollars is a serious matter. Detecting and catching fraudulent tax refund claims is an integral part of our mission,” said IRS Criminal Investigation Special Agent in Charge Shea Jones of the St. Paul Field Office. “The 41-month sentencing for Julius Boston serves as a strong warning to those who are considering filing false tax returns to obtain fraudulent refunds this filing season.”
According to the defendant’s guilty plea, between July 2011 and at least August 6, 2012, BOSTON filed almost 100 fraudulent income tax returns with the IRS. In order to file the fraudulent income tax returns, BOSTON convinced various people to provide him with their personal identifying information, including dates of birth and social security numbers, to use in filing the returns. He filed returns in the names of those individuals which reported false or inflated W-2 wage income, false withholding amounts, and other fraudulent information.
According to his guilty plea and documents filed in court, during the course of executing the scheme, BOSTON filed fraudulent claims for tax refunds seeking approximately $135,000. The IRS paid more than $64,000 in tax refunds, which BOSTON had mailed to his home or other addresses to which he had access. He later shared a portion of the proceeds of his fraud with the taxpayers who had provided him with their personal identifying information.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, and the United States Postal Inspection Service.
Assistant U.S. Attorney Michelle E. Jones prosecuted the case.
Defendant Information:JULIUS LEE BOSTON, 37
Convicted:
• Making false claims for tax refunds, two countsSentenced:
• 41 months in prison
• Supervised release for a term of three years
• Restitution of $64,139Twin Cities Man Sentenced to 15 Years in Prison for Conspiring to Sell HeroinRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of JAIME EDWARD MCCLELLAN, a/k/a “Goldie Armani Callaway,” a/k/a, “Jaime Edward McClennan,” a/k/a, “Armando Blanco,” a/k/a, “Red,” 32, to 15 years in prison for conspiring to distribute heroin and related charges. MCCLELLAN pleaded guilty on October 17, 2016.
According to the defendant’s guilty plea and documents filed in court, between January 2014 and December 2015, MCCLELLAN conspired with others in Minnesota to distribute more than two pounds of heroin. In December 2015, MCCLELLAN sold heroin on at least four separate occasions to undercover law enforcement agents. When arrested on December 16, 2015, the defendant was in possession of 10mm semi-automatic pistol, which he was prohibited from owning because he had previously been convicted of a felony.
This case is the result of an investigation conducted by the Anoka-Hennepin Narcotics and Violent Crime Task Force, West Metro Drug Task Force, Anoka County Sheriff’s Office, Hennepin County Sheriff’s Office, Sherburne County Sheriff’s Office, Blaine Police Department, Coon Rapids Police Department, Elk River Police Department, Maple Grove Police Department, Medina Police Department, Mounds View Police Department, and U.S. Drug Enforcement Administration.
Assistant U.S. Attorney David Steinkamp prosecuted the case.
Defendant Information:JAIME EDWARD MCCLELLAN, a/k/a, “Goldie Armani Callaway,” a/k/a, “Jaime Edward McClennan,” a/k/a, “Armando Blanco,” a/k/a, “Red,” 32
Brooklyn Park, Minn.
Convicted:
• Conspiring to distribute heroin, 1 count
• Possession of a firearm during and in relation to a drug trafficking crime, 1 countSentenced:
• 15 years in prison
• Supervised release for a term of five yearsTexas Man Guilty of Interference with Flight AttendantRead the Press Release
HONOLULU – A federal jury today found William Clark Turner, 53, of Kemp, Texas, guilty of one count of interference with a flight attendant. The verdict followed a four-day jury trial. Sentencing is scheduled for June 5, 2017, before Senior District Judge Susan Oki Mollway.
Florence T. Nakakuni, United States Attorney, said that according to information produced in court, on March 14, 2016, Turner, a physician, was flying on American Airlines from Dallas-Fort Worth International Airport non-stop to Maui, when he interfered with the ability of the flight attendant to perform her duties. According to witness testimony, Turner was threatening and verbally abusive toward other passengers, diverting a flight attendant from her normal duties to manage the situation. When Turner’s actions were communicated to the pilot, he placed the cockpit in lockdown, locking the doors for the duration of the flight so that no one could enter or exit the cockpit.
Turner faces a maximum term of imprisonment of 20 years. The jury also found him not guilty of two counts of simple assault.
The investigation was led by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys Margaret Nammar and Jill Otake.
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Swanville Man Sentenced to Time Served for Illegally Possessing FirearmsRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that John T. Hines, 50, of Swanville, Maine was sentenced yesterday in U.S. District Court by Judge John A. Woodcock, Jr. to time served in prison (about 10 months) for unlawfully possessing firearms. He pled guilty to the charge on August 30, 2016.
According to court records, two Waldo County Sheriff’s deputies went to Hines’ residence to investigate a neighbor’s complaint of hearing gunfire coming from the property and found Hines in possession of a loaded .357 Ruger revolver, two rifles and a shotgun. Hines was prohibited under federal law from possessing any firearms because he had previously been convicted of domestic violence assault, a misdemeanor crime of domestic violence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waldo County Sheriff’s Office.Stamford Man Sentenced to More Than 5 Years in Federal Prison for Illegally Possessing FirearmRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHARLES BARNES, 35, of Stamford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 63 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded firearm.
According to court documents and statements made in court, on December 29, 2015, Stamford Police stopped a car BARNES was driving. A subsequent search of the vehicle revealed a Berretta 9 millimeter pistol loaded with 12 rounds of ammunition, which was found in the glove box. The search also revealed 16 bags of marijuana packaged for sale.
Prior to December 2015, BARNES had sustained a felony conviction for possession of marijuana with intent to sell, and two felony convictions for second degree assault. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
BARNES has been detained since December 29, 2015. On November 17, 2016, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Stamford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Rochester Men Charged with Distributing OxycodoneRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Daniel Volonino, Jr., 29, Ronald Lockwood, 43, and Michael Ingham, 23, all of Rochester, NY, were arrested and charged by criminal complaint with conspiracy to distribute and distributing oxycodone, a Scheduled II controlled substance. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, between October 2016 to January 2017, Lockwood was prescribed oxycodone by a health care provider. The prescription included 500 30 mg pills per month. Law enforcement officers received an anonymous letter stating that Lockwood was selling the oxycodone pills to “someone named Dan-last name unknown.”
As a result of this anonymous letter, the Drug Enforcement Administration and the New York State Attorney General’s Office began an investigation which included surveillance of Lockwood and the use of a GPS tracking device. A search warrant was also obtained for text messages on Lockwood’s cellular telephone.
During the investigation, defendant Volonino was identified as the buyer of the oxycodone pills. As a result, law enforcement officers began conducting surveillance on Volonino as well. During that surveillance, defendant Ingham was also identified as a member of the conspiracy.
The three defendants were arrested Thursday morning at which time 498 oxycodone pills were seized and a large amount of cash. In addition, a Cadillac Escalade driven by Volonino was also seized.
Volonino, Lockwood and Ingham made an initial appearance Thursday afternoon before U.S. Magistrate Judge Marian W. Payson and were released.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge, James J. Hunt, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, and the New York State Attorney General’s Office, Medicaid Fraud Control unit, under the direction of Eric Schneiderman.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Readout of Second Day Events for Attorney General SessionsRead the Press Release
Attorney General Jeff Sessions today met with department heads and their staff in the Civil Rights and Civil Divisions, discussing ongoing cases and how each division can strengthen relationships with the department's law enforcement and regulatory partners and steps the department can take to combat the rise in violent crime.
As part of his meeting with the Civil Division, he received a briefing on the status of litigation surrounding president’s executive order protecting our nation from foreign terrorists entering the United States.
Rapid City Man Pleads Guilty to Tax ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has pled guilty to Failure to Collect and Pay Over Tax.
Kenneth E. Orrock, age 48, was charged on January 30, 2017. He appeared before U.S. Magistrate Judge Daneta Wollman on February 10, 2017, and pled guilty pursuant to a plea agreement reached with federal prosecutors.
The maximum penalty is 5 years imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
charges stem from Orrock’s failure to collect and pay over federal employee tax withholdings related to his private security company, Black Hills Asset Protection Group, which does business under the trade name Black Hills Patrol. Orrock, the sole owner of Black Hills Asset Protection Group, is also a licensed attorney and served as the Bennett County State’s Attorney until January 2017.
This case was investigated by the Internal Revenue Service Criminal Investigation Division. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Orrock was released pending sentencing. A sentencing date has not been set.
Plattsburgh Man Charged in Fatal Heroin OverdoseRead the Press Release
PLATTSBURGH, NEW YORK – Thomas A. Burnell, age 34, of Plattsburgh, New York, was charged today with distributing heroin resulting in another person’s death.
The announcement was made by United States Attorney Richard S. Hartunian, Plattsburgh Acting Chief of Police Michael Branch, and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
Burnell is detained pending a detention hearing before Magistrate Judge Gary L. Favro on February 14, 2017.
Burnell has been incarcerated since January 18, 2016, on state charges arising out of the same allegations charged in the federal complaint. According to the criminal complaint, on January 16, 2016, Burnell sold heroin to a man identified as “J.G.” who died later that night. The cause of death was an opiate overdose.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
If convicted of the offense of distributing heroin resulting in death, Burnell faces at least 20 years and up to life in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the Plattsburgh Police Department and the DEA, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Platte City Man Sentenced for Child Porn after Attempting to Meet Two Minors for SexRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Platte City, Mo., man was sentenced in federal court today for distributing child pornography following an undercover operation in which he attempted to meet two minor girls for sex.
Daniel C. Irwin, 39, of Platte City, was sentenced by U.S. District Judge Roseann Ketchmark to 13 years and nine months in federal prison without parole. The court also sentenced Irwin to 20 years of supervised release following incarceration.
On July 7, 2016, Irwin pleaded guilty to distributing a video of child pornography over the Internet. Irwin was an assistant vice president of accounting at a Kansas City, Mo., corporation at the time of the offense.
Irwin admitted that he sent the child pornography video to an undercover detective with the Kansas City, Mo., Police Department. Irwin met with the undercover detective and attempted to exchange incest pornography for the opportunity to have sex with the undercover detective’s two minor daughters (ages 12 and 16). Irwin sent additional videos of child pornography to the undercover detective on Aug. 4, 2014.
This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Project Safe Childhood
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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Plantation Physician and Physician Practice to Pay $750,000 to Resolve False Claims Act Allegations Involving Medically Unnecessary Sinus and Throat ProceduresRead the Press Release
Dr. Paul B. Tartell, an ENT physician practicing in Plantation, Florida and his practice Paul B. Tartell, M.D., P.L., have agreed to pay $750,000 to resolve allegations that he violated the False Claims Act by billing for surgical endoscopies with debridement and laryngeal stroboscopies that were not provided or not medically necessary.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Scott Rezendes, Special Agent in Charge, U.S. Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement today.
“We remain deeply committed to holding individual health care providers accountable for exploiting federal health care programs,” said Wifredo A. Ferrer, United States Attorney for the Southern District of Florida. “Physicians who bill for unnecessary services and services that were never provided put their own desire for personal profit ahead of their oath to provide safe and essential patient care. Doctors engaged in this conduct violate their patients’ trust and deprive federal health care programs of resources intended to provide care for the elderly, sick, and impoverished.”
The settlement announced today resolves allegations originally brought by Theodore Duay, a former patient of Dr. Tartell. Mr. Duay filed a complaint under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government and receive a share of any recovery. The False Claims Act authorizes the United States to intervene in such lawsuits and take over primary responsibility for litigation. Mr. Duay will receive $135,000.
Mr. Duay alleged that Dr. Tartell routinely performs diagnostic endoscopies on patients but bills these diagnostic procedures as more expensive and intrusive surgical debridements. Surgical debridements are a specialized procedure frequently performed following sinus surgery involving the transnasal insertion of an endoscope and parallel insertion of various instruments to remove postsurgical crusting, bone or tissue deposits. It may also be used to remove crusts and debris in patients with longstanding chronic sinusitis who have undergone surgery in the past.
In addition to the allegations regarding surgical debridements, the settlement also resolves the United States’ allegations that Dr. Tartell systematically billed federal health benefit programs, in particular, Medicare and the Federal Employment Health Benefits Program, for claims arising from laryngeal video stroboscopies that were not performed or were not medically necessary.
“When physicians and their practices bill for services not provided or not medically necessary it undermines the public’s trust in medical institutions and the financial integrity of federal health care programs,” said Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General. “Our agents and lawyers will aggressively pursue those who exploit taxpayers, patients, and government health programs.”
“This case demonstrates the FBI’s commitment to use all legal means available, including the False Claims Act, to pursue individuals who compromise the federal health care system for their own profit,” said George L. Piro, Special Agent in Charge, FBI Miami. “The FBI and our law enforcement partners are committed to investigating fraud schemes that divert taxpayer dollars away from those in need of care.”
“Today’s settlement is a reminder that fraud against the Federal Employees Health Benefits Program will not be tolerated,” said OPM Special Agent in Charge Rezendes. “I would like to thank the OPM OIG criminal investigators and our law enforcement partners for their fine work in protecting not only the health and wellbeing of FEHBP enrollees, but also the financial integrity of the program.”
The investigation of Dr. Tartell reflects a coordinated effort among the U.S. Attorney’s Office for the Southern District of Florida, the Department of Health and Human Services’ Office of Inspector General, the Federal Bureau of Investigation, and the United States Office of Personnel Management Office of the Inspector General along with the Florida Blue Special Investigative Unit. The investigation and settlement were handled by Assistant United States Attorney Jessica E. Elliott.
The case is captioned United States ex rel. Duay v. Paul B. Tartell, M.D. et al., No. 14-23954-Civ-Altonaga (S.D. Fla.). The claims settled by the lawsuit are allegations only and there has been no determination of liability.
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.
Pair Sentenced to Fifteen Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Alicia Bucy, age 60, of Hot Springs and Peaches Marie Herrick, age 40, of Kaufman, Texas, were sentenced today on one count each of Conspiracy to Distribute Methamphetamine. Bucy was sentenced to 87 months in federal prison followed by 3 years of supervised release and Herrick was sentenced to 97 months in federal prison followed by 3 years of supervised release. The Honorable Susan O. Hickey presided over the sentencing hearings in the United States District Court in Hot Springs.
According to court records, on October 20, 2015, members of the 18th Judicial East Drug Task Force executed a search warrant at the residence of Alicia Bucy where two prior controlled purchases of methamphetamine had been made. That residence is located in Royal, Arkansas, which is in the Western District of Arkansas. During the search, officers located a U.S. Postal Express parcel in the washing machine in the laundry room containing 170 grams of a substance which field tested positive for methamphetamine. The package label revealed that it was sent from Nacogdoches, Texas on October 15, 2015 and that it had arrived at Bucy’s residence on October 19, 2015. Through further investigation, it was learned that Peaches Herrick, who lived in Nacogdoches, had sent the parcel containing the drugs. Bucy waived her Miranda rights and gave a verbal statement to investigators stating that she had been distributing meth in the Hot Springs area for several years. She stated that she knew meth was in the mail parcel and that she had hid it in the washing machine. An examination of one of her cell phones revealed a text message which had been sent to co-conspirator, Peaches Herrick, discussing the shipment of the methamphetamine.
Bucy and Herrick were both named in a federal indictment in December, 2015. Bucy pleaded guilty in March, 2016 and Herrick pleaded guilty in February, 2016.
“We will continue to work together with our law enforcement partners to keep drugs out of our communities,” said Special Agent in Charge of HSI New Orleans Raymond R. Parmer, Jr. “Disrupting the flow of illegal drugs coming into our country continues to be one of our top priorities.”
Parmer is the special agent in charge of the New Orleans field office of HSI with responsibility for Arkansas, Alabama, Louisiana, Mississippi and Tennessee.
This case was investigated by Homeland Security Investigations, the Hot Springs Police Department, and the 18th Judicial Drug Task Force. Assistant United States Attorney David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Omaha Man Sentenced for Attempted Bank RobberyRead the Press Release
United States Attorney Deborah R. Gilg announced that Cameron Ammons, age 24, of Omaha, Nebraska, was sentenced February 8, 2017, by the Honorable Joseph F. Bataillon for attempting to rob a Centris Federal Credit Union branch. He was sentenced to two years in federal prison followed by three years of supervised release when his incarceration ends. He had previously pleaded guilty to the charge.
On March 4, 2016, Ammons ran through the first door of the vestibule of the Centris Federal Credit Union, 3537 L. Street, Omaha, at approximately 9:20 a.m. As he approached the second door, the door that allows access into the bank, a uniformed off-duty officer that was working there drew his weapon and chased Ammons, who ran from the bank. Other officers were able to catch and arrest Ammons approximately one-half hour later. Nothing was taken from the bank.
The case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.
North Las Vegas Man Sentenced to 10 Years for Possession of A Stolen FirearmRead the Press Release
LAS VEGAS, Nev. – A North Las Vegas man was sentenced today to 120 months in prison for possession of a stolen firearm, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“The defendant threatened and pointed a stolen firearm at another person,” said U.S. Attorney Bogden. “He received the statutory maximum penalty for this crime. We will continue to work with all our Las Vegas law enforcement partners to ensure community members are protected and that justice is served in all matters.”
Vandemere Gipson, 39, pleaded guilty on Nov. 7, 2016, to the criminal charge and was indicted on Nov. 19, 2014. United States District Chief Judge Gloria M. Navarro presided over the sentencing hearing.
According to the plea agreement, on Oct. 13, 2014, at Gipson’s request, he and two women drove to a Quick Check Mart, AM/PM convenience store, and other locations. The driver told Gipson that she was not a taxi service. At that time, Gipson reached under his left leg, pulled out a Smith and Wesson 9-mm handgun that he had been sitting on, racked the firearm, which loaded a live round into the chamber of the firearm, pointed the firearm at the driver and yelled, “Bitch, I will take your last breath! I will kill your ass!” The other woman exited the car and Gipson followed her outside. At this time, the driver noticed that Gipson left the firearm on the seat, so she drove away and secured the firearm. On Oct. 24, 2014, Gipson was arrested by the North Las Vegas Police Department. He admitted to owning and possessing the stolen firearm.
The case was investigated by North Las Vegas Police Department; and prosecuted by Assistant U.S. Attorneys Alexandra Michael and Phillip Smith Jr.
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Narcotics Dealer Charged in Manhattan Federal Court for Overdose DeathRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, the Special Agent-in-Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a complaint charging VICTOR PETERSON, 54, with selling fentanyl-laced heroin that resulted in the death of a 39-year-old Upper West Side man.
The complaint alleges that, on or about October 20, 2016, PETERSON distributed heroin laced with fentanyl that resulted in the death of Kevin Coombs, age 39, of Manhattan. The complaint also alleges that PETERSON sold heroin and crack cocaine to undercover NYPD officers on other occasions. PETERSON was arrested this morning and will be presented today before United States Magistrate Judge James L. Cott. PETERSON faces a mandatory minimum term of 20 years in prison.
Manhattan U.S. Attorney Preet Bharara said: “The opioid abuse epidemic has claimed far too many lives, and 39-year-old Kevin Coombs was one such life cut short. As alleged, Victor Peterson sold the fentanyl-laced heroin that tragically killed Kevin Coombs. Thanks to the outstanding partnership with the DEA and the NYPD, we continue to combat the deadly opioid crisis one alleged drug dealer at a time.”
DEA Special Agent-in-Charge James J. Hunt said: “Last year the CDC announced that there were over 52,000 fatal drug overdoses in the US; here in NYC, three people died everyday as a result of a drug overdose. DEA is focusing our enforcement efforts on major heroin and fentanyl distribution organizations, in addition to investigating and arresting the street dealers who sell the fatal dose that takes the life of another.”
Commissioner James P. O’Neill said: “The defendant in this case is facing the possibility of life in prison for allegedly selling fentanyl-laced heroin to a 39-year-old man who died of an overdose. Law enforcement is committed to investigating overdoses like this to hold those who sell these deadly opioids criminally responsible. I want to thank the NYPD detectives, DEA agents, and US Attorney Preet Bharara for their work that led to today’s arrest.”
According to the allegations in the Complaint[1] filed in federal court:
Kevin Coombs was found unresponsive by NYPD officers and paramedics on the afternoon of October 21, 2016. Coombs was transported to the hospital, but later died from an overdose of heroin and fentanyl. Prior to Coombs’s death, Coombs composed, but did not send, a text message to PETERSON in which Coombs stated, “Man that shit is so good. I literally just finished the last o[n]e.”
An NYPD undercover officer subsequently contacted PETERSON by cellphone and arranged to purchase narcotics. PETERSON sold the undercover officer crack cocaine on three occasions and heroin on one occasion in December 2016 and January 2017.
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PETERSON, 54, of New York, New York, has been charged with one count of narcotics distribution resulting in the death of another, which carries a maximum sentence of life in prison, and a mandatory minimum sentence of 20 years in prison. PETERSON has also been charged with four counts of narcotics distribution, each of which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.
Mr. Bharara praised the outstanding work of the NYPD and DEA’s Tactical Diversion Squad for their investigative efforts and ongoing support and assistance with the case. The Drug Enforcement Administration's Tactical Diversion Squad (Group TDS-NY) comprises agents and officers from the U.S. Drug Enforcement Administration (DEA), the New York City Police Department, the New York State Police, and NYC Health and Hospitals Office of the Inspector General.
The prosecution of this case is being overseen by the Office’s Narcotics Unit. Assistant U.S. Attorney Andrew Thomas is in charge of the case.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
More Than a Pound of PCP Seized During Federal Drug Interdiction InvestigationRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Taylor Overton Foster, 28, of White Plains, N.Y., with a phencyclidine (PCP) trafficking offense. Foster was released pending trial to a halfway house and will be under pretrial supervision and other conditions of release.
Foster was arrested on Feb. 8, 2017, and was charged in a criminal complaint after the DEA and New Mexico State Police (NMSP) seized approximately 508.9 grams (1.12 pounds) of PCP from him during an interdiction investigation at the Amtrak Train Station in Albuquerque.
If convicted, Foster faces a statutory minimum penalty of ten years and a maximum of life in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the DEA and the NMSP. Assistant U.S. Attorney Eva Fontanez is prosecuting the case.
Missouri Man Indicted for Stealing Public School Employees’ IDs and Filing Fraudulent Tax Returns in Their NamesRead the Press Release
Montgomery, Alabama – A federal grand jury sitting in St. Louis, Missouri, indicted a St. Louis resident on mail fraud and aggravated identity theft charges relating to a scheme to steal public school employees’ IDs and use them to file federal tax returns, announced U. S Attorney George Beck Jr. for the Middle District of Alabama, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and U.S. Attorney Richard G. Callahan for the Eastern District of Missouri.
According to the indictment returned on Feb. 1 and unsealed yesterday, Kevin K. Williams stole public school employees’ IDs from a payroll company and used them to electronically file fraudulent federal income tax returns in the name of those employees. He also allegedly stole several tax preparation businesses’ Electronic Filing Identification Numbers (EFINs), which he used to secure bank products that allowed him to print refund checks and direct refunds to prepaid debit cards. The indictment alleges that Williams had printed refund checks issued in the names of the stolen IDs, and blank check stock and debit cards sent to his residence.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Williams faces a statutory maximum sentence of 20 years in prison for each mail fraud count and a mandatory minimum sentence of two years in prison for aggravated identity theft. Williams also faces a period of supervised release, restitution, monetary penalties and forfeiture.
U.S. Attorney Beck, Acting Deputy Assistant Attorney General Goldberg, and U.S. Attorney Callahan commended special agents of Internal Revenue Service Criminal Investigation, FBI and the U.S. Postal Inspection Service as well as the Dothan Alabama Police Department and Alexander City Alabama Police Department, who conducted the investigation, and Trial Attorneys Michael C. Boteler and Charles M. Edgar, Jr. of the Tax Division, who are prosecuting the case with assistance from the U.S. Attorney’s Offices for the Eastern District of Missouri and Middle District of Alabama.
Mississippi woman sentenced to 26 months in prison for mail fraud, identity theftRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a Mississippi woman was sentenced Monday to 26 months in prison for using stolen identities to file 100 false income tax returns in order to illegally receive refunds.
Andrea W. White, 46, of Jackson, Miss., was sentenced by U.S. District Judge Robert G. James on one count of mail fraud and one count of aggravated identity theft. She was also sentenced to three years of supervised release and ordered to pay $195,296 in restitution. According to the August 13, 2014 guilty plea, from January 6, 2012 to September 25, 2012, White conducted a scheme to electronically file 100 fraudulent income tax returns using stolen identities. Most of the refunds were then mailed to four U.S. Post Office boxes in Tallulah, La. On April 27, 2012, the Internal Revenue Service mailed one such refund check to one of the U.S. Post Office boxes in the name of an unsuspecting innocent taxpayer for $5,454. White received the benefit of that federal tax refund.
The IRS and the U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
Mexican national sentenced to nearly 11 years in federal prison for role in California-to-West Virginia drug conspiracyRead the Press Release
CHARLESTON, W.Va. – A Mexican national was sentenced today to 10 years and 11 months in federal prison for his role in a California-to-West Virginia methamphetamine conspiracy, announced United States Attorney Carol Casto. Miguel Tafolla-Montoya, 31, previously pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine.
Tafolla-Montoya admitted that on March 19, 2016, he arrived in Huntington after traveling from California to pick up money for a delivery of crystal methamphetamine. Some of Tafolla-Montoya’s codefendants had previously driven approximately 10 pounds of crystal methamphetamine from California to Huntington for delivery. Tafolla-Montoya further admitted that he had helped conceal the drugs in the spare tire of the car that some of his codefendants used to transport the methamphetamine. Tafolla-Montoya was arrested prior to collecting any money for that drug delivery.
Tafolla-Montoya additionally admitted that near the end of February 2016, he had helped conceal 10 pounds of crystal methamphetamine in a vehicle that transported drugs from California to Louisville. Furthermore, Tafolla-Montoya admitted his involvement in a drug deal for crystal methamphetamine that took place in late December 2015 in the parking garage of the Embassy Suites in Charleston.
This prosecution is the result of a multi-agency investigation that led to an eight-count indictment implicating several defendants, some of whom have already been sentenced to prison. Velarian Sylvester Carter, of Beckley, was sentenced to 20 years in federal prison for conspiracy to distribute more than 50 grams of methamphetamine. Daniel Ortiz-Rivera, a Mexican national, was sentenced to 12 years and seven months in federal prison for conspiracy to distribute more than 50 grams of methamphetamine. Kelly Newcomb, of Nevada, and Danielle Dessaray Estrada, of Los Angeles, were both sentenced to a year and a day in prison for interstate travel in furtherance of a drug crime. Marco Antonio Bojorquez-Rojas, a Mexican national residing in California, was sentenced to a year and a half in prison for interstate travel in furtherance of a drug crime.
Several defendants have pleaded guilty and are awaiting sentencing. Rafael Garcia Serrato, of Los Angeles, Cesar Garcia, also of Los Angeles, Brian Ashby, of Kanawha County, and Miguel Alejandro Robles-Ibarra, a Mexican national, previously pleaded guilty to conspiring to distribute more than 50 grams of methamphetamine.
The FBI, Homeland Security Investigations, the United States Postal Inspection Service, the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of these prosecutions. United States District Judge John T. Copenhaver, Jr., imposed the sentence and is presiding over these cases.
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, including methamphetamine. 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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Members and Associates of the Westside Crips and Hotel Manager Indicted in Racketeering Conspiracy Involving Drug Trafficking, Prostitution and Other CrimesRead the Press Release
Assistant U. S. Attorneys Alessandra P. Serano (619) 546-8104 or Joseph Orabona (619) 546-7951
NEWS RELEASE SUMMARY – February 10, 2017
SAN DIEGO – Eleven alleged gang members and associates of the Westside Crips street gang and the manager of two national brand hotels in Oceanside are charged in a federal grand jury indictment with participating in a racketeering conspiracy involving narcotics trafficking, prostitution and other crimes.
Early this morning, detectives and agents from the Narcotics Task Force, U.S. Drug Enforcement Administration and Oceanside Police Department, with assistance from other agencies, made five arrests in North County and one in New Mexico. One defendant remained at large at midday; five were already in state custody and will be transferred to federal custody.
Some of the local defendants are scheduled to make their first court appearances today at 2 p.m. before U.S. Magistrate Judge Barbara L. Major and Monday before U.S. Magistrate Judge Andrew G. Schopler.
The indictment, unsealed today, alleges that the defendants are associated with the Westside Crips, a criminal street gang that primarily operates in Oceanside. According to the indictment and other court documents, the members of the conspiracy were involved in drug trafficking, prostitution, attempted murder, assaults and robberies. The acts alleged date back to 2004 and continue to up to 2016.
According to court documents, members of Westside Crips are akin to a crime family, where all members work together committing various crimes for the purpose of making money. The indictment alleges that the defendants took on different responsibilities within the criminal enterprise. Some sold narcotics. Others managed prostitutes and transported them all over the country. The hotel manager provided a safe haven for the alleged gang members to conduct their illegal activities. For that reason, the defendants are charged with racketeering conspiracy—the statute traditionally used for organized-crime syndicates and mobsters.
This is the fourth time the U.S. Attorney’s office here has used the racketeering statute to charge large numbers of gang members, associates, and facilitators with operating a criminal enterprise that included drugs, human trafficking, and violence. In the first case, 39 Oceanside gang members and associates were charged with racketeering, and, to date, 35 have pleaded guilty. The second case involved gangs in North Park; that case is pending, with 21 guilty pleas so far and two guilty verdicts after a jury trial in July 2016. The third case involved 22 defendants as members and associates of the Tycoons street gang. To date, all 22 defendants in that case have pleaded guilty.
“This case, along with many others like it in our district, demonstrates that human and drug trafficking by criminal street gangs is rampant,” said Acting U.S. Attorney Alana Robinson. “Not only are we targeting the traffickers and customers, but we are also going after the businesses that facilitate this type of gang activity.”
“The members of the criminal street gang that were arrested today face serious charges,” said DEA San Diego Special Agent in Charge William Sherman. “It is critical to the safety of our citizens to get these violent drug traffickers off the streets.”
“The Oceanside Police Department continues to be committed to fighting gang crime and gang activity in our City,” said Chief Frank S. McCoy. “The arrests today are an example of our commitment to utilize law enforcement agencies at all levels to help us to that end. I am very proud of all the hard teamwork and commitment our officers and the other law enforcement agencies had in this operation to make it such a success.”
“Today's enforcement actions mark the beginning of the end for the Westside Crip street gang,” said IRS Criminal Investigation’s Acting Special Agent in Charge Anthony J. Orlando. “Our agency plays a unique role in federal law enforcement’s resolve to dismantle the criminal gang enterprises terrorizing our streets. Our agents target the profit and financial gains of these organizations, following the money in an effort to disrupt these organizations and bring their members to justice.”
DEFENDANTS Case Number 17cr0270-JAH
Corey Austin aka Westwood Age: 36 Oceanside, CA
William Bright aka “Slim” Age: 51 Oceanside, CA
Ameer Roby aka “Tiny Dum” Age: 36 Oceanside, CA
Michael Sullivan aka “Du-Low” Age: 33 Oceanside, CA
Peter Miranda aka “Lil’ Burger” Age: 33 Oceanside, CA
Shane Anderson aka “Tiny West” Age: 25 Oceanside, CA
Jasiri Lacey aka “Baby West” Age: 25 Oceanside, CA
Demetrius McFarland aka “Mecchi Ruu” Age: 23 Oceanside, CA
Travion McHenry aka “2Much” Age: 25 Oceanside, CA
Richard Cleveland aka “Face” Age: 37 Oceanside, CA
Larry Monroe Age: 59 Oceanside, CA
Umesh Oza aka “Kevin” Age: 32 Oceanside, CA
SUMMARY OF CHARGES
Title 18, United States Code, Section 1962(d) - Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity; Title 18, United States Code, Section 1963 - Criminal Forfeiture
Maximum Penalties: 20 years’ incarceration, a fine of $250,000, three years of supervised release
AGENCIES
North County Narcotics Task Force
Drug Enforcement Administration
Oceanside Police Department
Internal Revenue Service Criminal Investigation
U.S. Marshal’s Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Manteca Man Pleads Guilty to Executing a Bank Fraud Scheme via Identity Theft and Stolen U.S. MailRead the Press Release
SACRAMENTO, Calif. — Matthew Gene Ballard, 38, of Manteca, pleaded guilty today to executing a bank fraud and identity theft scheme and to numerous violations of the terms of his supervised release from prison for a prior conviction, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Ballard had been released from federal prison on March 27, 2015, after serving three years in prison for similar offenses and was under the supervision of the U.S. Probation Office. Between July 2015 and April 2016, while on supervision, Ballard, working with others, obtained stolen U.S. Mail and stolen property and used the identification information and mail contents to make counterfeit identifications. Ballard used the identities to fraudulently open accounts, obtain lines of credit, and get cash and goods at the expense of banks and merchants. As part of his scheme, Ballard stole his own landlord’s identity and used unauthorized credit cards to pay for personal expenses, including doctor visit co-pays.
This case is the product of an investigation by the U.S. Postal Inspection Service with the assistance of the U.S. Probation Office. Assistant U.S. Attorney Michelle Rodriguez is prosecuting the cases.
Ballard is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on April 28, 2017. Ballard faces the maximum statutory penalty of 30 years in prison for bank fraud, 20 years in prison for possession of counterfeit identification, and a mandatory two-year consecutive prison sentence for aggravated identity theft. For his violation of federal supervision terms, Ballard faces up to three years in prison consecutive to any other sentence. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Manatee County Probationer Sentenced to More Than Six Years for Possessing A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Pedro Garcia (34, Manatee County) to six years and six months in federal prison for knowingly possessing a firearm as a convicted felon. The Court also ordered him to forfeit the firearm and ammunition involved in the offense.
Garcia was found guilty on November 2, 2016.
According to court documents, on November 9, 2015, various law enforcement authorities conducted a compliance search relating to a state conviction at Garcia’s residence, pursuant to the terms of Garcia’s probation. During the search, officers found a loaded Ruger, 9mm pistol, various types of 9mm and .45 caliber ammunition, and drug paraphernalia. As a convicted felon, Garcia is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Florida Department of Corrections Probation & Parole Field Service Office, and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Man Sentenced to over 12 Years in Federal Prison on Federal Gun and Drug ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Thurmond Lowery, Jr., age 36, of Cheraw, SC, was sentenced yesterday afternoon in federal court in Florence on multiple gun and drug charges to include felon in possession of a firearm, possession with intent to distribute and distribution of heroin, and possession with intent to distribute and distribution of cocaine. United States District Judge R. Bryan Harwell of Florence sentenced Lowery to 150 months in federal prison.
Evidence presented at Lowery’s guilty plea hearing established that on April 19, 2015, an officer with the Myrtle Beach Police Department (MBPD) conducted a traffic stop on a vehicle driven by Lowery. Lowery was placed under arrest for driving under suspension. During a search of the vehicle a loaded .40 caliber handgun was found. Lowery was prohibited from possessing a handgun because he had previously been convicted of a crime punishable by more than one year in prison. During August 2015, officers with the Fifteenth Circuit Drug Enforcement Unit (DEU) and the Federal Bureau of Investigation (FBI) were investigating drug activity in the Myrtle Beach area. As part of that investigation, on August 4, 2015, DEU and FBI agents made a controlled buy of a quantity of heroin from Lowery. The next day, agents made a second controlled buy of a quantity of cocaine from Lowery.
The case was investigated by agents of the Fifteenth Circuit Drug Enforcement Unit (DEU) and the Federal Bureau of Investigation (FBI). Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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Mail Carrier Pleads Guilty to Stealing MailRead the Press Release
WICHITA, KAN. – A Derby man pleaded guilty in federal court in Wichita today to stealing mail while he worked as a mail carrier, U.S. Attorney Tom Beall said.
Gary W. Yenzer, 34, Derby, Kan., pleaded guilty to one count of theft of U.S. mail. In his plea, he admitted that in August and September 2016 while working as a mail carrier in rural Sedgwick County he stole mail. Investigators learned Yenzer looked for birthday and anniversary cards so he could remove cash and gift cards. He kept the cash and sold some of the gift cards for cash, but he did not use the gift cards for fear of them bring traced to him.
Sentencing is set for May 1. The government has agreed to recommend a sentence of a year and a day in prison. Beall commended the U.S. Postal Service-Office of Inspector General and Assistant U.S. Attorney Brent Anderson for their work on the case.
Luzerne County Man Sentenced to 7 ½ Years in Prison for Role in Bath Salts ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Folweiler, age 29, of Pittston, Pennsylvania, was sentenced today to serve 7 ½ years in prison for his role in a conspiracy to distribute and possess with intent to distribute alpha-pvp, commonly known as “bath salts,” by U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney Bruce D. Brandler, Folweiler previously pleaded guilty to conspiring with others to distribute the drug during 2011 through 2014, in Luzerne County. Folweiler admitted to distributing a kilogram of alpha-pvp. Folweiler was one of seven people indicted by a federal grand jury in August 2014. All seven defendants have pleaded guilty.
The investigation revealed a nationwide operation to distribute “bath salts” based in Texas. The two Texas-based suppliers have also pleaded guilty and been sentenced to prison.
Judge Mannion also ordered Folweiler to spend three years on supervised release following his prison sentence.
The case was investigated by Homeland Security Investigations, the Drug Enforcement Administration, United States Postal Inspectors, the Pennsylvania State Police, and West Pittston Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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Local Businessman Pleads Guilty in $70 Million Ponzi SchemeRead the Press Release
DAYTON – William M. Apostelos, 55, formerly of Springboro, Ohio, pleaded guilty in U.S. District Court today to charges related to a $70 million Ponzi scheme that defrauded nearly 500 victims. Specifically, Apostelos pleaded guilty to conspiracy to commit wire and mail fraud and conversion of funds from an employee benefit fund.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Troy N. Stemen, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office; Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI); Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service; James Vanderberg, Special Agent in Charge, U.S. Department of Labor Office of Inspector General; Joe Rivers, Regional Director of the U.S. Department of Labor Employee Benefits Security Administration; and Brian Peters, Enforcement Attorney, Ohio Department of Commerce Division of Securities, announced the plea entered into today before U.S. District Judge Thomas M. Rose.
Apostelos and his wife, Connie, also known as Connie Coleman, were indicted in October 2015. According to court documents, beginning in 2009, and continuing for at least five years, the couple and others orchestrated a Ponzi scheme in the Dayton area in which nearly 480 investors lost more than $20 million collectively. Apostelos received $70 million in investment funds in total.
William Apostelos operated and oversaw multiple purported investment and asset management companies in the Dayton area, including WMA Enterprises, LLC, Midwest Green Resources, LLC and Roan Capital. He falsely reported that he held a degree in mathematics and was a registered securities broker.
Connie Apostelos also operated and oversaw multiple companies in the Dayton area, including Coleman Capital, Inc. and Silver Bridle Racing, LLC. These companies were allegedly operated through improper use of investor funds to William Apostelos’ companies.
The couple recruited investors from 37 states to invest in WMA and Midwest Green, telling the investors that their money would be used for acquiring stocks or securities, purchasing real estate or land, providing loans to business and buying gold and silver.
Rather than investing the money, the couple used it to pay for personal luxuries. According to court documents, William Apostelos was spending $35,000 per month on his wife’s horse racing company and $400 per month on Victoria’s Secret lingerie.
When the defendants became late on interest payments to the victims, they advised that their bank account had been hacked, a bank mistakenly failed to wire payment and/or the deal the victim had invested in was temporarily on hold.
The government has seized two race horses, vehicles, jewelry, artwork and cash totaling approximately $650,000 from the couple.
“William Apostelos took advantage of nearly 500 people, defrauding them of honestly earned money, in order to fuel his own lavish lifestyle,” U.S. Attorney Glassman said. “We will hold schemers like Apostelos accountable for their actions.”
“The investigation of William Apostelos uncovered a multi-million dollar Ponzi scheme laced with a web of financial lies that left approximately 500 investors in financial peril,” said Troy N. Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime. Combining the financial investigative expertise of the IRS with the skills and resources of our law enforcement partners and the U.S. Attorney’s Office makes a formidable team for combating major, greed-driven crimes.”
“William Apostelos engaged in an extensive fraud scheme that impacted hundreds of victims, including American workers who lost approximately $1.9 million in ERISA covered pension assets. We will continue to work with our law enforcement partners to safeguard employee benefit plan assets," stated James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the United States Department of Labor, Office of Inspector General.
William Apostelos pleaded guilty to conspiracy to commit mail and wire fraud and theft or embezzlement from an employee benefit plan. As part of his plea agreement, the parties involved have recommended to the court a sentence of 180 months in prison. That sentencing recommendation will be considered by the Judge at a future sentencing hearing, which has yet to be scheduled.
Steven Scudder, 62, of Centerville, an attorney who served as trustee of the WMA Trust, pleaded guilty in U.S. District Court on January 19 to wire fraud, admitting that he used his position as an attorney to facilitate the fraudulent investment scheme.
U.S. Attorney Glassman commended the investigation of this case by law enforcement, and Assistant United States Attorney Brent G. Tabacchi and Deputy Criminal Chief Laura Clemmens, who are prosecuting the case.
Leawood Attorney Pleads Guilty to Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Leawood, Kan., attorney pleaded guilty in federal court today to his role in a fraud conspiracy, while his former law partner was sentenced for stealing more than $1.2 million from St. Luke’s Health System, a client of their former law firm.
Mark J. Schultz, 57, of Leawood, waived his right to a grand jury and pleaded guilty before U.S. District Judge Beth Phillips to a federal information that charges him with participating in a wire fraud and mail fraud conspiracy.
Alan B. Gallas, 65, of Kansas City, Mo., was sentenced by U.S. District Judge Beth Phillips to one year and one day in federal prison without parole. The court also ordered Gallas to pay $1,224,264 in restitution to St. Luke’s. Gallas must report to the Bureau of Prisons by April 10, 2017, to begin serving his sentence.
Schultz and Gallas were attorneys and partners in the law firm of Gallas & Shultz in Kansas City, Mo., which specialized in collection work for corporations. Gallas surrendered his license to practice law in Missouri and Kansas in November 2015.
On April 13, 2016, Gallas pleaded guilty to mail fraud. Gallas admitted that he engaged in a scheme from 2009 through July 2015 to defraud a client, St. Luke’s Health System, of monies collected by his law firm totaling $1,224,264.
By pleading guilty today, in a separate but related case, Schultz admitted that he participated in the conspiracy from January 2014 through July 2015. Under the terms of his plea agreement, Schultz must forfeit to the government any property he derived from the proceeds of the wire fraud and wire fraud conspiracy.
Gallas was the attorney responsible for the St. Luke’s account at the law firm. After attempting to collect on patient accounts for a period of time, St. Luke’s would transfer its larger outstanding patient accounts to Gallas & Shultz for collection. As payments on patient accounts were received, the payments were logged into the case management system for the appropriate patient account. The monies were then deposited into the law firm’s trust account. On a periodic basis, often monthly, the firm would remit the patient payments collected to St. Luke’s.
Gallas admitted that he caused personnel at the law firm to withhold money from payments made to St. Luke’s by placing thousands of payments on “hold” status, then directing those funds be transferred from the trust account to the firm’s operating account. The pattern of not remitting some payments to St. Luke’s escalated significantly from 2012 to 2015. According to court documents, Gallas withheld 601 payments totaling $211,391 in 2012. Gallas withheld 699 payments totaling $266,696 in 2013. Gallas withheld 625 payments totaling $227,892 in 2014. Through the month of July 2015, Gallas withheld 625 payments totaling $216,845.
Schultz admitted today that he agreed with Gallas and others to transfer funds from the trust account into the law firm’s operating account. The amount of funds diverted by Schultz, and the amount of restitution Schultz must pay to St. Luke’s for the total amount of its loss, will be determined by the court at Schultz’s sentencing hearing.
Under federal statutes, Schultz is subject to a sentence of up to five years in federal prison without parole. 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. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
These cases are being prosecuted by Assistant U.S. Attorney Paul S. Becker. They were investigated by the FBI.
Leader of Three Worldwide Cyberattacks Sentenced to 8 Years for Computer Intrusion and Access Device Fraud ConspiraciesRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, Ercan Findikoglu, a Turkish citizen also known by the online nicknames “Segate,” “Predator,” and “Oreon,” was sentenced to eight years for his leadership role in organizing and carrying out three cyberattacks on the global financial system between 2011 and 2013 that caused more than $55 million in losses. Findikoglu pleaded guilty on March 1, 2016, to computer intrusion conspiracy, access device fraud conspiracy, and effecting transactions with unauthorized access devices. In addition, as part of the sentence, the Court ordered Findikoglu to pay $55,080,226.14 in restitution. Today’s proceeding was held before United States District Judge Kiyo A. Matsumoto.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and David E. Beach, Special Agent in Charge, United States Secret Service, New York Field Office.
“Findikoglu was a skilled hacker who chose to use his considerable computer talents for criminal financial gain and to wreak economic havoc, rather than for legitimate pursuits. The defendant was responsible for hacking into computer networks of financial institutions across the globe and causing tens of millions of dollars in losses. Today’s sentence effectively neutralizes Findikoglu for years, and also should serve as a strong warning to those who seek to abuse their technical skills to breach the networks of trusted financial institutions,” stated United States Attorney Capers. Mr. Capers praised the extraordinary efforts of the Secret Service in investigating these complex network intrusions.
“Today’s sentencing brings one of the world’s most prolific cyber-criminals to justice,” stated Special Agent in Charge David Beach of the New York Field Office. “The relentless pursuit by the Secret Service and our international partners to identify and apprehend such criminals demonstrates the success of the law enforcement community to safeguard our nation’s financial infrastructure.”
According to public court filings, Findikoglu and his co-conspirators used sophisticated intrusion techniques to hack into the systems of credit and debit card processing companies, manipulated network administrator privileges at the victim card processing companies, manipulated account balances of prepaid debit cards to eliminate withdrawal limits on those cards, and stole the personal identification numbers (PINs) associated with the compromised debit cards. Findikoglu and his co-conspirators then disseminated the stolen card numbers and PINs worldwide to trusted associates who encoded magnetic stripe cards with the compromised debit card data. The associates then distributed these cards to teams of cashing crews, who used the cards to make fraudulent ATM withdrawals on a massive scale across the globe. As a result of the effective elimination of withdrawal limits, these cyber-attacks were known as “unlimited operations.”
Findikoglu organized and carried out three such unlimited operations. In the first operation on February 27 and 28, 2011, Findikoglu’s cashing crews withdrew approximately $10 million through approximately 15,000 fraudulent ATM withdrawals in 18 countries. In a second operation on December 21 and 22, 2012, Findikoglu’s cashing crews withdrew approximately $5 million through approximately 5,000 fraudulent ATM withdrawals in 20 countries. During this second operation, in New York alone, cashers conducted more than 700 fraudulent ATM withdrawals, totaling nearly $400,000 in losses, at more than 140 different ATM locations over the course of just two and a half hours. In a third operation on February 19 and 20, 2013, Findikoglu’s cashing crews withdrew approximately $40 million through approximately 36,000 fraudulent ATM withdrawals in 24 countries. During this third operation, in New York alone, cashers conducted nearly 3,000 fraudulent ATM withdrawals, totaling approximately $2.4 million in losses, over the course of approximately 10 hours.
Findikoglu was paid a significant portion of the illegal proceeds from these unlimited operations.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Douglas M. Pravda, Richard M. Tucker, and Saritha Komatireddy are in charge of the prosecution. Assistant United States Attorney Brian Morris of the Office’s Civil Division is responsible for the forfeiture of assets. The Justice Department’s Office of International Affairs provided assistance.
The Defendant:
ERCAN FINDIKOGLU
Aliases: Segate, Predator, Oreon
Age: 35
Nationality: Turkish
E.D.N.Y. Docket No. 13-CR-440 (KAM)