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29 March 2017
New London Man Sentenced to 7 Years in Federal Prison for Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEROME HUNTER, also known as “Rome,” 32, of New London, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 84 months of imprisonment, followed by four years of supervised release, for distributing heroin.
This matter stems from a long-term investigation headed by the Connecticut State Police Statewide Narcotics Task Force East and U.S. Drug Enforcement Administration into the large-scale distribution of narcotics in southeastern Connecticut. The investigation revealed that Sydney Jackson, also known as “Fatz,” and others regularly acquired kilogram quantities of cocaine and heroin from sources in New York and transported the drugs to southeastern Connecticut. Much of the cocaine was converted to crack cocaine by Jackson in Connecticut, and the drugs were distributed through a network of dealers, including HUNTER, in Groton, Norwich, New London, Stonington, Westerly, R.I. and the surrounding area.
On November 24, 2015, a federal grand jury in Hartford returned a 35-count superseding indictment charging HUNTER, Jackson and 11 other defendants with various narcotics trafficking and firearm offenses. In addition, approximately 20 individuals were prosecuted on related state charges.
During the course of the investigation, which included numerous controlled purchases of narcotics, extensive surveillance and the execution of 11 state search warrants, investigators seized approximately 1.3 kilograms of cocaine, one kilogram of crack cocaine, 416 grams of heroin, five firearms and $53,500 in cash.
HUNTER has been detained since his arrest on September 2, 2015. On that date, he was in possession of more than 100 grams of heroin, a handgun, approximately $2,200 and heroin processing and packaging equipment.
On October 5, 2016, he pleaded guilty to one count of conspiracy to distribute 100 grams or more of heroin.
On October 27, 2016, Jackson pleaded guilty to one count of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”). On February 16, 2017, he was sentenced to 10 years of imprisonment.
This matter has been investigated by the Connecticut State Police Statewide Narcotics Task Force East, U.S. Drug Enforcement Administration, Homeland Security Investigations, U.S. Marshals Service, Connecticut Department of Correction and Groton City, Groton Town, New London, Norwich and Waterford Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Dave Vatti and Joseph Vizcarrondo, with the assistance of Senior Assistant State’s Attorneys Paul Narducci and David Smith of the State’s Attorney’s Office for the Judicial District of New London.
Missouri Man Indicted for $12 Million Tax Refund Fraud, Voter Fraud, Illegal Reentry and Felon in Possession of FirearmRead the Press Release
A federal grand jury sitting in St. Louis, Missouri, returned a superseding indictment today charging a St. Louis resident for his role in a sophisticated stolen identity refund fraud scheme and other federal offenses, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Carrie A. Costantin for the Eastern District of Missouri.
The superseding indictment charges Kevin Kunlay Williams aka Kunlay Sodipo, a Nigerian citizen, with mail fraud, aggravated identity theft, voter fraud, illegal reentry and being a felon in possession of a firearm. According to the indictment, Williams and others stole public school employees’ IDs from a payroll company and used them to electronically file more than 2000 fraudulent federal income tax returns seeking more than $12 million in refunds. He also allegedly stole several Electronic Filing Identification Numbers (EFINs) that he used to secure bank products allowing him to print refund checks and direct the Internal Revenue Service (IRS) to send refunds to prepaid debit cards. The indictment alleges that Williams had refund checks issued in the names of the stolen IDs, and blank check stock and debit cards sent to his residence.
The indictment further alleges that Williams previously entered the United States from Nigeria under the name Kunlay Sodipo, but was deported in 1995. According to the indictment, in 1999, Williams illegally returned to the United States from Nigeria using the last name Williams. In 2012, Williams allegedly registered to vote in federal, state and local elections by falsely claiming that he was a U.S. citizen and is alleged to have voted in the 2012 and 2016 presidential elections. On the day of his arrest in February, Williams is alleged to have been illegally in possession of a firearm.
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 count of mail fraud, a mandatory minimum sentence of two years in prison for the aggravated identity theft, a statutory maximum sentence of 10 years in prison for the illegal reentry, a statutory maximum sentence of five years in prison for each of the voter fraud counts, and a statutory maximum sentence of 10 years in prison for the felon in possession of a firearm. The defendant also faces a period of supervised release, restitution, forfeiture and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Costantin commended special agents of IRS-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 this case with assistance from the U.S. Attorney’s Offices in the Eastern District of Missouri and Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Members of the “Oviedo Soldiers” Sentenced to Prison for Heroin Conspiracy and Firearms ChargesRead the Press Release
Orlando, Florida – U.S. District Judge Anne C. Conway has sentenced Freddrick Dorr (46, Oviedo), James Dellafield, Jr. (24, Sanford), Beth Farber (30, Orlando), and George Materazzi (46, Orlando) to federal prison for drug trafficking. The Court also ordered each to forfeit firearms and U.S. currency that are traceable to proceeds of the offenses. A fifth individual, Danny Hampton (36, Oviedo) is scheduled to be sentenced on October 17, 2017. Each previously pleaded guilty to conspiracy to distribute and to possess with the intent to distribute heroin. In addition, Hampton and Dellafield each pleaded guilty to possessing a firearm as a convicted felon.
According to court documents, Hampton, Dorr, Dellafield, Farber, and Materrazi were affiliated with a drug trafficking organization known as the “Oviedo Soldiers” that distributed heroin, cocaine, and other narcotics in Seminole and Orange Counties. The organization was also known to law enforcement as the source of several violent crimes in the area. During the investigation, agents recovered multiple firearms. Each of the defendants has a criminal history involving drugs, firearms, and/or violent crimes.
Dellafield received a sentence of seven years in federal prison. Dorr was sentenced to six years’ imprisonment. Farber was sentenced to five years’ imprisonment, and Materazzi received a sentence of three years and one month in federal prison.
“The investigation and prosecution of members of this organization demonstrates the collective hard work of our law enforcement partners and prosecutorial team,” said Acting U.S. Attorney Stephen Muldrow. “We will continue to combine and utilize our resources to combat violent crime and drug trafficking in our communities.”
"This case emphasizes how successful the collaboration between state, local and federal law enforcement can be," said Paul Wysopal, Special Agent in Charge of the FBI Tampa Division. "The combined effort made our community safer by ridding the streets of these violent career criminals."
“I am extremely proud of the work done by the Orange County Sheriff’s Office Gang and Narcotics Units in partnership with the MBI, the FBI, and ICE-HSI to bring this criminal group to justice,” said Sheriff Jerry L. Demings. “Cocaine and heroin trafficking result in violence and death, and the dismantling of this organized group will have a positive impact on public safety in our community.”
“The Metropolitan Bureau of Investigation was pleased to work with federal and local law enforcement partners to bring the defendants in this drug trafficking organization to justice,” said Director Ron Stucker. “The prosecution of this drug trafficking organization will disrupt the flow of illegal drugs and reduce violence in the community.”“These sentencings send a clear message to criminals that law enforcement will use every investigative technique possible to ensure the dismantling of criminal organizations in our communities,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI and our law enforcement partners are dedicated to making communities safer by bringing violent criminals to justice.”
This case was investigated by the Federal Bureau of Investigation, the Metropolitan Bureau of Investigation, the Orange County Sheriff’s Office, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
Member of Grant County Methamphetamine Trafficking Ring Sentenced to PrisonRead the Press Release
ALBUQUERQUE – Crystal Medina Gomez, 50, of Silver City, N.M., was sentenced today in federal court in Las Cruces, N.M., to 30 months of imprisonment for her methamphetamine trafficking conviction. Gomez will be on supervised release for three years after completing her prison sentence.
Gomez was one of twelve defendants charged with methamphetamine trafficking offenses as the result of a multi-agency investigation targeting a drug trafficking organization led by Daniel Lee Jacquez, 35, of Silver City, that distributed methamphetamine in Grant County, N.M. The investigation concluded in April 2015 with the filing of a 34-count indictment against Gomez, Jacquez and ten co-defendants.
The indictment charged the 12 defendants with participating in a drug trafficking conspiracy and committing a series of substantive drug trafficking offenses and a firearms offense. According to the indictment, the defendants conspired to distribute methamphetamine in Grant County from March 2014 through April 2015. Eight counts charged certain defendants with distributing or possessing with intent to distribute methamphetamine and 24 counts charge certain defendants with using communications devices (telephones) to facilitate drug trafficking crimes. The indictment also charged one defendant with being a felon in possession of a firearm.
On Aug. 3, 2016, Gomez pled guilty to participating in a methamphetamine trafficking conspiracy, and admitted that from March 2014 through April 2015, she was responsible for distributing between 500 grams and 1.5 kilograms of methamphetamine in the Silver City area.
All of Gomez’s co-defendants, including Jacquez, have entered guilty pleas. Anthony R. Davila, 26, of Santa Clara, N.M., was sentenced on Feb. 21, 2017, to 60 months in prison followed by three years of supervised release. The remaining co-defendants are currently awaiting sentencing hearings.
The case was investigated by the Las Cruces offices of the DEA, HSI and FBI with assistance from the U.S. Marshals Service and the New Mexico State Police. Assistant U.S. Attorney Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office is prosecuting this case.
The investigation leading to the filing of charges in this case was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Member of Bronx Gang Pleads Guilty to Murder and Racketeering ConspiracyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that today ELIJAH DAVILA, a/k/a “Montana,” pled guilty to committing the murder of Pablo Beard, participating in racketeering and narcotics conspiracies, and committing a firearms offense, all in connection with a violent street gang known as the “Taylor Avenue Crew” or “Bugatti,” which is based primarily in and around the New York City Police Department’s 43rd Precinct in the Bronx, New York. As part of his guilty plea, DAVILA admitted to shooting and killing Pablo Beard, in the vicinity of Leland Avenue in the Bronx. DAVILA faces a mandatory minimum term of 40 years in prison and a maximum term of life in prison, and will be sentenced before United States District Judge Katherine Polk Failla on July 13, 2017.
Manhattan Acting U.S. Attorney Joon H. Kim said: “Elijah Davila and the Taylor Avenue Crew wrought havoc in their Bronx neighborhood, selling drugs and committing acts of violence. As he admitted today, as part of his racketeering and drug crimes, Davila murdered Pablo Beard. We are committed to bringing federal prosecutions like this one to reduce violent crime and drug dealing in our neighborhoods.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
DAVILA was a member of the Bronx-based street gang known as the Taylor Avenue Crew or Bugatti, and in that capacity committed the murder of Beard. From at least 2008 to September 2015, members and associates of the Taylor Avenue Crew enriched themselves by selling drugs, such as “crack” cocaine, and committed acts of violence, including murder and attempted murder, against various people, including rival gang members, rival drug traffickers, and innocent bystanders. As part of this enterprise, members and associates of the Taylor Avenue Crew – including DAVILA – killed and attempted to kill others individuals. On March 3, 2015, DAVILA shot Beard to death in the vicinity of 1504 Leland Avenue.
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Mr. Kim praised the work of the New York City Police Department, the Drug Enforcement Administration, and Homeland Security Investigations. He also thanked the Bronx County District Attorney’s Office for their participation and support in this case.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Scott Hartman, Jessica Lonergan, and Jason Swergold are in charge of the prosecution.
Member of Atm Skimming Conspiracy Targeting Multiple New Jersey Bank Locations Pleads GuiltyRead the Press Release
NEWARK, N.J. – A member of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty today in Newark federal court.
Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Special Agent in Charge Terence S. Opiola of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Newark Division made the announcement.
Radu Bogdan Marin, 36, a Romanian citizen residing in Glendale, New York, pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to commit bank fraud. Marin is the first of 13 defendants charged in this matter to plead guilty.
According to documents filed in this case and statements made in court:
Marin and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Marin admitted that between March 2015 and July 2016, he and others used counterfeit ATM cards and stolen customer information to withdraw cash from compromised bank accounts at ATMs in New Jersey. Marin and others used more than 10 ATM cards to conduct fraudulent cash withdrawals in New Jersey, $39,140 of which was personally attributable to Marin.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is set for July 17, 2017.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s Newark, New Jersey, Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution.
The government is represented by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.
Defense counsel: Gary Mizzone Esq., Little Falls, New Jersey
Manchester Man Pleads Guilty to Attempting to Rob A Convenience Store and Bank RobberyRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced that Jonathan Faucher (39) of Manchester, New Hampshire, pleaded guilty on Tuesday to attempting to rob a convenience store and a robbing a bank in Manchester.
According court records and statements made in court, shortly after midnight on September 28, 2016, Faucher entered a 7-Eleven store on Maple Street in Manchester, New Hampshire, asked for a pack of cigarettes, then brandished a box cutter with a razor blade and told the clerk to “give me all the money if you don’t want to get hurt.” The clerk behind the counter responded by brandishing a pizza cutter at Faucher, who fled the area.
A few days later, on October 3, 2016, Faucher robbed a TD Bank branch on Franklin Street, in Manchester, New Hampshire. Faucher handed a note to a bank teller claiming that he had a gun and demanding money. The bank teller handed over $600 and Faucher fled the bank on foot. Manchester Police responding to the robbery apprehended him just a few blocks from the scene of the crime.
A sentencing hearing is scheduled for July 19, 2017.
The case was investigated by the Manchester Police Department, with assistance from the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Shane Kelbley.
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Man sentenced for threatening to damage government buildingsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jeremy E. Smith, 37, an incarcerated individual at the United States Penitentiary at Hazelton, was sentenced to 27 months incarceration for threatening to destroy government buildings, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Smith mailed threats to destroy buildings in Philadelphia, Boston, Washington, D.C., New York, and Chicago on November 26, 2015. He pled guilty to one count of “Threat to Damage Buildings by Use of Explosives” in February 2017.
His sentence is to run consecutively to any sentence previously imposed or that he is currently serving.
Assistant U.S. Attorney Sarah W. Montoro prosecuted the case on behalf of the government. The United States Secret Service and the Special Investigative Services at USP Hazleton investigated.
U.S. District Judge Irene M. Keeley presided.
Man from Mexico sentenced to 6 months in prison for reentering the U.S. illegally for the second timeRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a citizen of Mexico was sentenced Monday to six months in prison for re-entering the United States illegally.
Juan De Dios Trejos-Sanchez, 37, of Mexico, was sentenced by U.S. District Judge Donald E. Walter on one count of illegal re-entry of a removed alien. According to the January 12, 2017 guilty plea, Trejos-Sanchez was arrested in Calcasieu Parish on October 6, 2016, on domestic battery charges and was then turned over to U.S. Immigration and Customs Enforcement. Trejos-Sanchez was previously removed from the United States in January of 2012 near Brownsville, Texas.
United States Immigrations and Customs Enforcement conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
Man Sentenced to 17 Years in Prison for Sex Trafficking of ChildrenRead the Press Release
SAN JUAN, P.R. – United States District Court Judge Francisco A. Besosa sentenced José Luis Otero-Otero to 210 months (17 years and 6 months) in prison followed by 10 years of supervised release for sex trafficking of children, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Otero-Otero had plead guilty on November 4, 2016.
According to the Plea Agreement filed on November of 2016, the defendant sexually abused and/or engaged in illicit sexually explicit conduct with at least four male minors. Otero-Otero knowingly recruited, enticed, harbored, transported, provided, obtained, advertised, maintained, patronized and solicited by any means two 12 year-olds, one thirteen and one fourteen year-old male minors, knowing and in reckless disregard of the fact that they were minors and caused them to engage in commercial sex act.
The Government’s version of facts states that the defendant paid the male minors between twenty and eighty dollars to engage in sexual acts. Otero-Otero paid the victims in order for them to allow him to perform oral sex on them and also for the minor males to penetrate Otero-Otero anally.
“Justice was done today. This sentence should serve to reassure the public that we are paying close attention to the well-being of our children, and that we will spare no expense to take child predators off the streets,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “All child sexual predators will be held accountable for the unspeakable crimes they commit and the harm they cause to their victims and their families.”
Project Safe Childhood is an initiative of the Department of Justice aimed at preventing the abuse and exploitation of children by the use of digital cameras, computers and other digital and electronic media.
The criminal prosecution was handled by Assistant U.S. Attorney Elba Gorbea. ICE-HSI was in charge of the investigation with the collaboration of the Puerto Rico Police Department.
Mail carrier from Leetonia indicted for worker's compensation fraudRead the Press Release
A federal grand jury returned a four-count indictment charging Jess A. Leon, 66, of Leetonia, with theft of government property and false statements and fraud to obtain federal employees’ compensation, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
The indictment alleges that Leon, a mail carrier employed by the U.S. Postal Service, failed to disclose income from other employment, resulting in the receipt of federal workers’ compensation benefits to which he was not entitled. It further alleges that Leon falsely represented his physical limitations in connection with his receipt of workers’ compensation benefits.
Assistant United States Attorney Megan R. Miller is prosecuting the case following an investigation by the U.S. Postal Service Office of the Inspector General.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Last defendant in Acadiana methamphetamine distribution conspiracy sentencedRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that the last defendant was sentenced Monday in an Acadiana methamphetamine conspiracy.
Elton J. Scoggin, 36, of Breaux Bridge, La., and 10 other defendants conspired to distribute methamphetamine in Lafayette and the surrounding areas from April 2015 until December 2015. Co-defendants Jeremy David Hamlett, 38, of Arnaudville, La., and Lovelace Louis Comeaux, 54, of Carencro, La., were the primary suppliers of the methamphetamine. Scoggin, the remaining defendant, was sentenced on Monday by U.S. District Judge Donald E. Walter, to 33 months in prison and three years of supervised release for conspiracy to distribute and possess with intent to distribute methamphetamine.
In addition to Scoggin, Hamlett and Lovelace Comeaux, eight other defendants were indicted. They are: Darrell James Serrette II, 34, Jade Dupuis, 30, Jared J. Dupuis, 39, John S. Stutes, 45, and Travis Joseph Thibodeaux, 35, all of Breaux Bridge; Kevin Comeaux, 55, of Milton, La.; Matthew James Hebert, 43, of New Iberia, La.; and Ronnie J. Touchet, 36, of Carencro. These defendants previously pleaded guilty and were sentenced as shown below:
Defendants Prison term Probation Supervised release Counts* Date Lovelace Comeaux 120 months 5 years 1, 6 June 9, 2016 Touchet 60 months 3 years 1 Oct. 20, 2016 Hamlett 120 months 5 years 1 Oct. 21, 2016 Kevin Comeaux 63 months 3 years 1 Oct. 21, 2016 Serrette 36 months 3 years 1 Jan. 12, 2017 Jared Dupuis 30 months 3 years 1 Jan. 12, 2017 Stutes 24 months 3 years 1 Jan. 12, 2017 Hebert 37 months 3 years 1 Jan. 12, 2017 Jade Dupuis 12 months 3 years 2 Feb. 13, 2017 Thibodeaux 5 years 1 Feb. 13, 2017*Count 1 is conspiracy to distribute and possess with intent to distribute methamphetamine, Count 2 is distribution of methamphetamine, and Count 6 is use of a communication facility in causing or facilitating a drug trafficking crime.
According to Scoggin’s August, 24, 2016 guilty plea, he was recorded, along with Hamlett and the other co-conspirators, planning the distribution of methamphetamine and receipt of funds made from the sale of the drugs. Scoggin and others admitted that the methamphetamine received from Hamlett was of high quality and purity. Scoggin conspired with the other defendants to distribute 50 grams or more of methamphetamine during the course of the conspiracy. The overall conspiracy involved the distribution of more than 15 kilograms of methamphetamine to the Acadiana area of Louisiana, which the group received and transported from Texas.
The DEA (Lafayette Task Force), Louisiana State Police and Lafayette Metro Narcotics (LMN) conducted the investigation. ATF, FBI, DEA Task Force, St. Martin Parish Sherriff’s Office, and LMN assisted in the apprehension of the individuals named in the indictment. Assistant U.S. Attorneys Myers P. Namie and Daniel J. McCoy prosecuted the case.
Laredoan Sent to Prison for Firearms ChargeRead the Press Release
LAREDO, Texas – A 31-year-old Laredo resident has been ordered to federal prison following his conviction of possession of a firearm by a convicted felon, announced Acting U.S. Attorney Abe Martinez. Anthony Tays pleaded guilty June 7, 2016.
Today, Senior U.S. District Judge George P. Kazen handed Tays a 50-month sentence to be immediately followed by three years of supervised release.
Tays was convicted in 2006 for criminally negligent homicide and, therefore, prohibited from possessing firearms or ammunition. On Sept. 15, 2015, law enforcement discovered and seized six firearms from his home.
Before handing down the sentence today, Judge Kazen noted that Tays had acquired a membership to a local firearm range in 2015, where he rented firearms and shooting lanes, purchased ammunition and practiced shooting personal and rented firearms during several visits.
Tays has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Laredo Police Department and the Texas Department of Public Safety. Assistant U.S. Attorney Jose Homero Ramirez prosecuted this case.
Lancaster County Man Pleads Guilty to Conspiracy to Straw Purchase a FirearmRead the Press Release
Contact Person: (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Adam Tyler Shrader, age 22, of Lancaster, South Carolina has entered a guilty plea in federal court in Columbia to conspiracy to straw purchase a firearm, a violation of 18 U.S.C. § 371. United States District Judge Mary Geiger Lewis of Columbia accepted the guilty plea and will impose sentence after she has reviewed the presentence report that will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on October 21, 2014, a Lancaster County deputy met with Lillie Mae Govea about her pistol being stolen. According to Govea, someone had stolen her pistol out of the trunk of her car. She indicated that the only person who had been in the trunk of the car was her boyfriend, Adam Tyler Shrader.
The officer then contacted Shrader who told the officer that a friend of his named "Nick" had asked Govea to purchase a pistol for him. Nick gave Govea and Shrader the money and told them to make the purchase at a named local gun store. Govea and Shrader agreed.
Govea indicated that during the entire drive to the gun store, Shrader was on the telephone asking for directions. When they got to the store, Shrader showed her a picture of a specific pistol that had been previously advertised by the store. However, the store did not have the pistol in stock so they purchased a different pistol and ammunition instead.
On the way back home, Shrader was talking to someone on the telephone and told him they would be returning shortly. When they returned, a black male that Govea did not know approached them, gave her additional money for the pistol and took the pistol out of the car. Shrader told Govea to wait three (3) days to report the pistol stolen in case Nick did something "bad" with it. Govea waited less than one (1) day to report the pistol stolen. The pistol was later found in the possession of a convicted felon during a search by another police jurisdiction. Govea pled guilty and was recently sentenced on the same charge.
Ms. Drake stated the maximum penalty for this offense is imprisonment for 5 years and a fine of $250,000.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lancaster County Sheriff’s Department. Assistant United States Attorney William K. Witherspoon of the Columbia office is prosecuting the case.
This case was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.
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Jury Convicts Schenectady Felon of Firearm and Drug ChargesRead the Press Release
ALBANY, NEW YORK – A jury today convicted Edwin Ferrer, age 44, of Schenectady, New York, of unlawfully possessing a firearm and ammunition, as well as a small quantity of crack cocaine.
The announcement was made by United States Attorney Richard S. Hartunian and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
The jury’s verdict followed a 3-day trial before United States District Judge Mae A. D’Agostino. The evidence at trial showed that on December 18, 2015, Ferrer was driving his Cadillac SUV in Schenectady when he accidentally shot himself in the leg with his Smith & Wesson pistol. Investigators searched his SUV and recovered the pistol, four rounds of ammunition, and approximately a quarter of a gram of crack cocaine. As a felon, Ferrer was prohibited from possessing the pistol and ammunition.
Ferrer faces up 10 years in prison, 3 years of post-imprisonment supervised release, and a fine of up to $250,000 when he is sentenced on July 26, 2017 by Judge D’Agostino. 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 ATF and the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Inmate at USP Lee Sentenced for Possessing MethamphetamineRead the Press Release
Abingdon, VIRGINIA – A federal inmate at United States Penitentiary at Lee County, Virginia, was sentenced today for being in possession of a prohibited objected inside the prison, Acting United States Attorney Rick A. Mountcastle announced.
Antonio Stitt, 39, previously pled guilty to a one count Information that charged him with knowingly possessing a prohibited objected, specifically methamphetamine, inside USP Lee. Today in the United States District Court for the Western District of Virginia in Abingdon, Stitt was sentenced to an additional 48 months of federal prison time to run consecutive to any other sentence.
Stitt is the third federal inmate sentenced this week to additional federal prison time because of criminal actions that took place inside the penitentiary.
The investigation of the case was conducted by the United States Bureau of Prisons and the Bristol office of the Federal Bureau of Investigations. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Indictment: Credit Union Was Liquidated After Employee Stole More than $5 MillionRead the Press Release
WICHITA, KAN. – A Parsons woman was indicted Tuesday on federal charges of embezzling more than $5 million from a credit union that was declared insolvent and liquidated, U.S. Attorney Tom Beall said.
Nita Rae Nirschl, 64, Parsons, Kan., is charged in an 81-count indictment including 22 counts of embezzlement, 37 counts of money laundering, 18 counts of interstate transportation of stolen property and four counts of attempting to evade taxes. The indictment alleges the crimes took place while Nirschl worked for the Parsons Pittsburg Credit Union based in Parsons.
Following an audit that found the credit union was insolvent, the credit union was placed in conservatorship and ultimately liquidated in March 2014. The audit revealed that from 2010 to December 2014 Nirschl embezzled more than $5 million from the credit union. The indictment alleges she deposited money stolen from the credit union into her personal accounts. She withdrew the funds as cash from ATMs at Harrah’s North Kansas City casino, the Buffalo Run casino in Miami, Okla., the Stables casino in Miami, Okla., the Downstream casino in Quapaw, Okla., Harrah’s News Orleans casino and Harrah’s Lake Tahoe casino.
Upon conviction, the crimes carry the following penalties:
Embezzlement by a credit union employee: Up to 30 years in federal prison and a fine up to $1 million on each count.
Money laundering: Up to 10 years and a fine up to $250,000 on each count.
Interstate transportation of stolen property: Up to 10 years and a fine up to $250,000 on each count.
Attempt to evade taxes: Up to five years and a fine up to $100,000.
The FBI and the Internal Revenue Service investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
OTHER INDICTMENTS
Six men from Mexico were indicted Tuesday in a case of alleged alien smuggling.
Adrian Guzman-Rojas, 19, a citizen of Mexico, was charged with one count of knowingly transporting Mexican citizens who were not lawfully in the United States.
In court documents, investigators alleged that on March 10, 2017, Guzman-Rojas was driving a 2012 Buick Enclave when the Kansas Highway Patrol stopped him on Interstate 70 near Ellsworth, Kan. It is alleged that five men in the car with Guzman-Rojas were Mexican citizens who previously had been deported and who had returned to the United States unlawfully.
Charged with one count each of illegally re-entering the United States are the following:
Mario Esqivel-Garduno, 38, Ernesto Galeno-Castillo, 36, Juan Gonzalez-Vicente, 20, Manuel Luna-Macin, 31, and Alejandro Villa-Maldonado, 27, all citizens of Mexico.
Investigators allege Guzman-Rojas was being paid by smugglers in Phoenix.
Upon conviction, the crimes carry the following penalties:
Unlawful transportation of undocumented aliens: Up to five years in federal prison and a fine up to$250,000.
Un-lawful re-entry: Up to two years and a fine up to $250,000.
The case was investigated by the Kansas Highway Patrol, Homeland Security Investigations and Enforcement and Removal Operations, and is being prosecuted by Assistant U.S. Attorney Brent Anderson.
Shannon Marie Grub, 34, Wichita, Kan., is charged with one count of unlawful possession of a firearm in furtherance of drug trafficking, two counts of possession with intent to distribute methamphetamine, and one count of unlawful possession of a firearm by a user of controlled substances. The crimes are alleged to have occurred in May and September 2016 in Wichita.
Upon conviction, the crimes carry the following penalties:
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years in federal prison and a fine up to $250,000.
Possession with intent to distribute: Not less than five years and not more than 40 years and a fine up to $2 million.
Unlawful possession of a firearm by a user of controlled substances: up to 10 years and a fine up to $250,000.
The Wichita Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Marquez I. Garcia, 32, Wichita, Kan., is charged with one count of unlawful possession of ammunition following a felony conviction. The crimes are alleged to have occurred Dec. 21, 2016, in Sedgwick County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Randy J. Johnson, 31, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 13, 2015, in Sedgwick County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000, The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Lind is prosecuting.
Oscar Humberto Beltran-Ramirez, 37, Jorge Urquidez-Navarro, 42, and Hector Manuel Gomez-Panduro, 34, are charged with one count each of possession with intent to distribute methamphetamine. In addition, Urquidez-Navarro is charged with knowingly transporting an illegal alien. The crimes are alleged to have occurred March 22, 2017, in Sedgwick County, Kan.
Up conviction, the drug charge carries a penalty of not less than 10 years in federal prison and a fine up to $10 million. The transporting charge carries a penalty of up to five years and a fine up to $250,000. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct
Harrison County man convicted for unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher C. Cozad, of Mount Clare, West Virginia, was convicted today in federal court for illegal possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Cozad, age 32, pled guilty to one count of “Unlawful Possession of a Firearm.” Cozad, having previously convicted of felony fleeing from an officer in Harrison County in 2011, did possess a Smith & Wesson 5.56 caliber firearm. The crime is alleged to have occurred in April 2016 in Harrison County.
Cozad faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau for Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guard Guilty of Accepting Bribe to Smuggle Contraband into JailRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old former employee of the Costal Bend Detention Center has pleaded guilty to accepting a bribe as a public official, announced Acting U.S. Attorney Abe Martinez.
At today’s hearing, Misti Dawn Alva, of Corpus Christi, admitted she accepted money in exchange for delivering contraband to a federal inmate housed at the Costal Bend Detention Center in Robstown.
Avila was the warehouse supervisor and smuggled synthetic marijuana, also known as “K2” into the facility for inmates. During the course of the investigation, she met with an undercover agent and accepted cash to smuggle a package of synthetic marijuana to an inmate at the facility. Alva took the package, which she believed contained synthetic marijuana, and drove directly to the Costal Bend Detention Center. When she entered the facility, she was arrested and found in possession of the package.
Sentencing has been set for July 20, 2017, before U.S. District Judge Nelva Gonzales Ramos. At that time, Alva faces up to 15 years in federal prison and a possible $250,000 maximum fine.
This FBI conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Grand Jury Returns Three-Count Indictment Charging Ogden Couple in FBI Child Pornography CaseRead the Press Release
SALT LAKE CITY – A federal grand jury returned a three-count indictment last week charging Jason David Lott, age 32, and his wife, Camila Mae Bergeson, age 22, both of Ogden, in connection with a child pornography case investigated by the FBI Child Exploitation Task Force.
Lott faces charges of distribution of child pornography, possession of child pornography, and possession of a firearm and ammunition following a felony conviction. Bergeson is charged with Lott in a possession of child pornography count. Lott and Bergeson appeared for arraignment on the charges in U.S. District Court Thursday. Both entered not guilty pleas to the charges
According to a complaint filed in the case, an FBI special agent was conducting an online investigation on the BitTorrent network for offenders sharing child pornography. He directed his investigative focus to a device at a specific IP address, referred to as the “Suspect Device” in the complaint, because it was associated with Torrent files. At least one of the files was identified as being a file of interest in child pornography investigations.
The complaint alleges that on several occasions, the agent successfully completed several downloads made available from the Suspect Device. The downloaded files included sexually explicit images and videos depicting the sexual abuse of infants, toddlers, and prepubescent children. Further investigation of the IP address led the FBI task force to Lott and Bergeson’s residence in Ogden.
Federal agents executed a federal search warrant at the residence on March 16, 2017. Several devices were seized during the execution of the warrant, including a laptop computer. During a preliminary search of the laptop computer, agents located the Bit-Torrent program Vuze, as well as evidence indicative of an individual using a peer-to-peer program to obtain files of child pornography.
Agents also located an H & R 12 gauge shotgun and associated ammunition. Lott is a registered sex offender. He has a 2009 Utah conviction for sexual exploitation of a minor.
Lott admitted to having the Bit-Torrent program on his computer and having knowledge that one could obtain images of child pornography. He also admitted to using a program to wipe his computer once a week. Bergeson admitted to looking at videos and images of child pornography on the computer with her husband. She admitted they have looked at child pornography for the last six months approximately every other week. They erased the child pornography after looking at it.
Lott faces a potential mandatory minimum sentence of 15 years with a maximum 40-year sentence if convicted of distribution of child pornography. Because of his criminal history, Lott faces a potential 10-year mandatory minimum for the possession of child pornography count. Possessing a firearm following a felony conviction carries a potential 10-year sentence. Bergeson faces up to 20 years in prison if convicted of the possession of child pornography count.
A four-day jury trial is set for May 22, 2017, before U.S. District Judge Jill N. Parrish. Lott is in custody. Bergeson was been released from custody subject to standard and special conditions of supervised release, including a requirement that she get a full-time job.
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
Gonzales Pleads Guilty to Possession of Ammunition; Agreement Includes Stipulated 10-Year SentenceRead the Press Release
SALT LAKE CITY – Sentencing is set for June 7, 2017, for Aldo Gonzalez, 26, of Salt Lake City, who pleaded guilty to possession of ammunition after a previous felony conviction. The plea agreement includes a stipulated 10-year sentence in federal prison. Gonzalez, a member of the Nortenos Familia Varrio Loco gang, is being prosecuted as a part of the #UtahGangInitiative and the Utah Project Safe Neighborhoods initiative.
Gonzalez was indicted on the charge in September. He entered his guilty plea March 14, 2017, before U.S. District Judge Tena Campbell.
The charges stem from a July 1, 2016, encounter Gonzalez had with an individual at a restaurant in West Valley City. The victim and his girlfriend saw a male, later identified as Gonzalez, wearing a red 49ers hat. The victim told Gonzalez he had a cool hat. Gonzalez left the restaurant shortly thereafter.
The victim and his girlfriend finished their dinner and drove to their home in West Valley City. As they got out of the vehicle, they were approached by two men who were pointing handguns at them. The victim recognized one of the men as the individual he had seen at the restaurant. Gonzalez asked the victim, “What set you claim?” The two men immediately began shooting at the victim. The two men got back into their car and fled the scene. The victim, who was not injured, recognized the make and model of the car.
A West Valley City police officer responded to the scene and observed several bullet holes in a nearby car and the victim’s home. He also located 10 spent shell casings. Two bullets were recovered from the house.
An officer patrolling the area quickly found a car that matched the description provided by the victim and the description of Gonzalez. After following the car for a while, the driver of the car suddenly accelerated in an apparent effort to evade the officer. The officer activated his lights and siren as the car reached speeds of 50-60 in a residential neighborhood. Gonzalez abandoned the car he was driving and fled the scene. The officer continued to give commands for him to stop. After a chase, Gonzalez jumped a fence and swam across a canal. Other officers responded to the other side of the canal where Gonzalez had been seen last. A bystander advised officers that Gonzalez had entered a home. Officers set up a perimeter around the home and ordered the occupants to leave the house. Three people exited the house. One occupant advised officers that Gonzalez was still in the home. SWAT teams entered the home and took Gonzalez into custody.
Officers found ammunition in the garage of the home, including ammunition that appeared to be hollow point. Additionally, 20 rounds of .40 caliber centerfire pistol cartridges and 20 rounds of 9 mm centerfire pistol cartridges in Gonzalez’ car.
The 10-year sentence in the plea agreement is subject to the approval of the court. As a part of the plea agreement reached in the federal case, Gonzalez agreed to plead guilty to three counts (12-14) in a related case filed in Third District Court. At the time of the offense, Gonzalez was on parole for a felony burglary conviction in state court.
Gonzalez was indicted on the charge in September. The case is being investigated by West Valley City police officers and special agents of the ATF. The case is being prosecuted by a West Valley City prosecutor acting as a Special Assistant U.S. Attorney.
Former Vice President of Finance at Publicly Traded Company Charged with Accounting and Securities Fraud SchemeRead the Press Release
A former vice president of finance for Bankrate Inc., a publicly traded financial services and marketing company headquartered in New York City, was charged in an indictment filed yesterday for his alleged participation in a complex accounting and securities fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin Greenberg of the Southern District of Florida and Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS) made the announcement today.
Hyunjin Lerner, 48, of Martin County, Florida, was charged in an indictment filed in the Southern District of Florida with one count of conspiracy to commit wire fraud, falsify a public company’s books, records and accounts and make false statements to a public company’s accountants; three counts of wire fraud; one count of securities fraud; four counts of false entries in a public company’s books, records and accounts; and three counts of false statements to a public company’s accountants. Lerner, who previously worked at Bankrate’s offices in Palm Beach Gardens, Florida, made his initial appearance earlier today before U.S. Magistrate Judge John J. O’Sullivan of the Southern District of Florida and was released on bond.
The indictment alleges that between 2011 and 2014, Lerner and his co-conspirators carried out a complex scheme to manipulate Bankrate’s financial statements and artificially inflate Bankrate’s earnings. According to the indictment, Lerner and his co-conspirators allegedly engaged in “cookie jar” or “cushion” accounting, meaning unsupported expense accruals were left on Bankrate’s books and then selectively reversed in later quarters to meet earnings goals. In addition, Lerner and his co-conspirators allegedly: misrepresented certain company expenses as “deal costs” in order to artificially inflate publicly reported adjusted earnings metrics; booked hundreds of thousands of dollars in unsupported revenue to further inflate Bankrate’s reported revenue and earnings; and made materially false statements to conceal the improper accounting entries from Bankrate’s auditors, shareholders and the investing public.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The USPIS Washington, D.C., Division investigated the case. Assistant Chief Henry Van Dyck and Trial Attorneys Rush Atkinson, Emily Scruggs and Somil Trivedi of the Criminal Division’s Fraud Section are prosecuting the case. The Securities and Exchange Commission and the U.S. Attorney’s Office of the Southern District of Florida provided assistance in this matter.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Former Vice President of Finance at Publicly Traded Company Charged with Accounting and Securities Fraud SchemeRead the Press Release
A former vice president of finance for Bankrate Inc., a publicly traded financial services and marketing company headquartered in New York City, was charged in an indictment filed yesterday for his alleged participation in a complex accounting and securities fraud scheme.
Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, and Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS) made the announcement today.
Hyunjin Lerner, 48, of Martin County, Florida, was charged in an indictment filed in the Southern District of Florida with one count of conspiracy to commit wire fraud, falsify a public company’s books, records and accounts and make false statements to a public company’s accountants; three counts of wire fraud; one count of securities fraud; four counts of false entries in a public company’s books, records and accounts; and three counts of false statements to a public company’s accountants. Lerner, who previously worked at Bankrate’s offices in Palm Beach Gardens, Florida, made his initial appearance earlier today before U.S. Magistrate Judge John J. O’Sullivan of the Southern District of Florida and was released on bond.
The indictment alleges that between 2011 and 2014, Lerner and his co-conspirators carried out a complex scheme to manipulate Bankrate’s financial statements and artificially inflate Bankrate’s earnings. According to the indictment, Lerner and his co-conspirators allegedly engaged in “cookie jar” or “cushion” accounting, meaning unsupported expense accruals were left on Bankrate’s books and then selectively reversed in later quarters to meet earnings goals. In addition, Lerner and his co-conspirators allegedly: misrepresented certain company expenses as “deal costs” in order to artificially inflate publicly reported adjusted earnings metrics; booked hundreds of thousands of dollars in unsupported revenue to further inflate Bankrate’s reported revenue and earnings; and made materially false statements to conceal the improper accounting entries from Bankrate’s auditors, shareholders and the investing public.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The USPIS Washington, D.C., Division investigated the case. Assistant Chief Henry Van Dyck and Trial Attorneys Rush Atkinson, Emily Scruggs and Somil Trivedi of the Criminal Division’s Fraud Section are prosecuting the case. The Securities and Exchange Commission and the U.S. Attorney’s Office of the Southern District of Florida provided assistance in this matter.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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.
Former Pontoon Beach Water District Supervisor Admits to Embezzlement and Wire FraudRead the Press Release
Brian Buske, 44, of Alton, Illinois, entered a plea of guilty to an indictment charging wire fraud in a scheme to defraud the Pontoon Beach Water District, in Madison County, Illinois, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Buske faces a statutory maximum prison sentence of up to 20 years, a fine of up to $250,000, three years of supervised release and mandatory restitution. Sentencing is scheduled for July 21, 2017. Buske was employed by the Pontoon Beach Water District from 2007 through June of 2016. In approximately May of 2014, Buske was promoted to the position of supervisor. As supervisor, Buske managed the daily operations of the company. Buske also handled the daily financial transactions of the company in that he issued checks to pay other companies for equipment or services rendered. In May of 2016, the Chairperson of the Pontoon Water District Board noticed that the District was a month behind in making the bank deposits. The missing deposits were not located within the safe. On May 27, 2016, Buske was confronted about the missing funds. Buske then retrieved four deposit summaries with the corresponding checks and cash from his truck. Four additional deposits were found to be missing. Buske admitted to taking the money and later returned with $5323 in cash, the amount of money corresponding to the records of the missing deposits. Further investigation revealed that records of the Pontoon
Beach Water District had been falsified to cover up personal expenses that Buske made on the District’s credit card. Check stubs were supposed to record the payment of legitimate District expenses, but some of the stubs falsified who the payee was to conceal personal expenses made by Buske that included the payment of an electric bill, insurance, cell phone bills and other personal expenses. The total misappropriated funds was in excess of $10,000.
The prosecution is the result of an investigation by the Pontoon Beach Police Department and the Federal Bureau of Investigation with the cooperation of the Pontoon Beach Water District. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former O.C. Superior Court Clerk Pleads Guilty to RICO Charge in Bribery Scheme to ‘Fix’ Criminal Cases and Traffic ChargesRead the Press Release
SANTA ANA, California – A former clerk of the Orange County Superior Court pleaded guilty this afternoon to federal racketeering charges stemming from a scheme in which he accepted more than a quarter-million dollars in bribes to illegally resolve criminal cases and traffic offenses on terms favorable to hundreds of defendants without the knowledge of prosecutors or judges.
Jose Lopez Jr., 36, of Anaheim, pleaded guilty today to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO).
In a plea agreement filed last week, Lopez admitted that he was at the center of a scheme in which co-conspirators paid him as much as $8,000 in bribes to “fix” cases. The co-conspirators were middlemen who recruited individuals with pending cases to pay money that was given to Lopez to resolve their cases without the authorization of the court.
“In total, defendant [Lopez] improperly resolved approximately 1,034 cases, including 69 misdemeanor driving under the influence cases, 160 other misdemeanor cases and 805 traffic-related infraction cases,” Lopez admitted in the plea agreement.
Over the course of more than five years, Lopez “resolved” cases by entering information into the court’s computers to make it appear that a defendant had pleaded guilty, paid required fees or had performed community service. In some cases, Lopez fraudulently created records that made it appear drunk driving charges had been dismissed or defendants had served mandatory jail time.
In addition to taking bribes and falsifying court records, Lopez also forged the signature of a prosecutor with the Orange County District Attorney’s Office.
The conspiracy ended in the spring of 2015 when the court learned about the misconduct and took steps to reopen the cases that Lopez tampered with.
“This defendant compromised the justice system in Orange County to line his pocket with money he used to travel abroad, take trips to Las Vegas and open a Mexican restaurant,” said Acting United States Attorney Sandra R. Brown. “This scheme affected hundreds of cases and caused havoc in the Orange County Superior Court – problems that were further complicated when the former clerk encouraged others to lie about the scheme.”
Lopez pleaded guilty before United States District Judge Josephine L. Staton, who is scheduled to sentence the defendant on September 22. As a result of today’s guilty plea, Lopez faces a statutory maximum sentence of 20 years in federal prison.
“The defendant ignored the rule of law and potentially undermined public safety by essentially serving as judge and jury in scores of cases to enrich himself,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and our partners will continue to investigate complaints of corruption by public officials and those with access to sensitive information.”
“IRS Criminal Investigation will continue to use our financial investigative skills to combat corruption and hold public officials accountable for their actions,” stated IRS Criminal Investigation’s Acting Special Agent in Charge Anthony J. Orlando. “Today’s guilty plea should serve as a reminder of what can happen when officers of the court try to profit from their position.”
With Lopez’s guilty plea late this afternoon, and the guilty plea of a co-defendant earlier today, 10 people charged last fall with participating in the racketeering scheme by acting as recruiters have pleaded guilty. One more defendant is scheduled to plead guilty next month, and the twelfth defendant in the case is pending trial.
The other 10 defendants who have pleaded guilty or have agreed to plead guilty are:
- Ricardo Quinones, 33, of Santa Ana;
- Juan C. Rosas Santillana, 33, of Chino Hills, who is scheduled to plead guilty on April 21;
- Ramon Salvador Vasquez, 28, of Santa Ana;
- Manuel Galindo Jr., 27, of Santa Ana;
- Gibram Rene Lopez, also known as “Ivan,” 27, of Anaheim;
- Agustin Sanchez Jr., 32, of Santa Ana;
- Luis Alberto Flores Guillen, also known as “Bills,” 26, of Santa Ana, who pleaded guilty earlier today;
- Oscar Centeno, also known as “Mosquito,” 27, of Santa Ana;
- Jeff Reynes Fernandez, also known as “Lean,” 25, of Fullerton; and
- Jesus Saldana, 28, of Garden Grove.
The final defendant in the case – Javed Asefi, also known as “Joey,” 44, of Ladera Ranch, who in addition to the RICO count is charged with making false statements to the FBI during its investigation into the bribery scheme – is scheduled to go on trial before Judge Staton on May 2.
Prior to the 12-defendant indictment being returned by a federal grand jury last fall, three other recruiters pleaded guilty to federal bribery charges, including Rebeca Sarai Rosell, who worked at a Santa Ana bail bonds company and funneled a bribe to Lopez from a drunk driving defendant.
This case is being investigated by special agents with the Federal Bureau of Investigation and IRS Criminal Investigation.
Former Labor Union Officer SentencedRead the Press Release
Abingdon, VIRGINIA – A former officer in a local labor union was sentenced today on federal embezzlement charged, Acting United States Attorney Rick A. Mountcastle announced.
William Dixon, 41, of Castlewood, Virginia, previously pled guilty to one count of embezzling funds from a labor organization. Today in the United States District Court for the Western District of Virginia in Abingdon, Dixon was sentenced to two years of probation and ordered to pay full restitution.
Dixon previously admitted that while serving as the secretary/treasurer of a labor union in Lebanon, Virginia, of which he was a member, he embezzled $4,338 between October 2015 and April 2016.
The investigation of the case was conducted by the United States Department of Labor, Office of Labor-Management Standards. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Former IT Director and Wife Convicted for Embezzling More Than $1 Million from EmployerRead the Press Release
HOUSTON - Former director of Information Technology (IT) Services for Orion Real Estate Services Inc. and his wife have entered guilty pleas related to a conspiracy in which they stole more than $1 million, announced Acting U.S. Attorney Abe Martinez today.
Bradley David Freitas pleaded guilty to conspiracy to commit mail and wire fraud, while Loren Elizabeth Freitas, entered her plea last Friday to conspiracy to commit mail fraud. From approximately April 14, 2009 through Jan. 14, 2014, Bradley Freitas embezzled approximately $1,009,634.45 from Orion Real Estate Services Inc., at times with the help of his wife.
Orion is a full-service, multi-family residential real estate management company serving a wide variety of investors, ranging from institutions, private partnerships, foreign investors, individual owners and government housing organizations. Orion had more than over 665 employees and provides management for all types of multi-family properties, and had a growing portfolio of more than 25,000 apartment homes under management throughout the nation.
Bradley Freitas was hired as the Director IT services for Orion on March 5, 2009. Throughout his employment, he created false explanations on internal Orion company justification documents so that the unauthorized purchases were masked as IT related items. Bradley Freitas would miscode Orion justification documents to mask the unauthorized personal purchases for several years and made these unauthorized purchases with the company credit cards issued to him for IT purchases only. The merchandise was purchased from online retailers, such as Amazon, NewEgg and CDW, and mailed either to his office or home. Several of the items, such as a dining room table with chairs, a Gucci purse and wallet, home entertainment systems, televisions and more, were purchased for the Freitas’ own personal enrichment. Other items, such as ipads and laptops, were sold on eBay or to their own private customers in New York and elsewhere for them to obtain a profit. At times, Loren Freitas would direct her husband as to what to purchase and then mailed the various items to be sold to their customers via FedEx or UPS.
U.S. District Judge Sim Lake accepted the guilty pleas and has set sentencing for Mr. and Mrs. Freitas on July 21 and June 14, 2017, respectively. At that time, Bradley Freitas faces up to 20 years in federal prison, while Loren Freitas faces a maximum five-year-term of imprisonment. Both convictions also carry a maximum possible $250,000 fine. Both were permitted to remain on bond pending their sentencing hearings.
The FBI conducted the investigation. Assistant U.S. Attorneys Suzanne Elmilady and Melissa Annis are prosecuting the case.
Former Deputy Executive Director of Port Authority Sentenced to 24 Months in Prison, Former Deputy Chief of Staff in N.J. Governor’s Office to 18 MonthsRead the Press Release
Misused Government Property to Punish Fort Lee Mayor for Not Endorsing Gov. Christie’s Re-election
NEWARK, N.J. – A former top official of the Port Authority of New York and New Jersey and a former member of Gov. Christopher J. Christie’s senior staff were sentenced today to prison terms for their roles in a scheme to punish the mayor of Fort Lee, New Jersey, by misusing Port Authority resources to cause traffic problems in the borough, Acting U.S. Attorney William E. Fitzpatrick announced.
William E. Baroni Jr., 45, former deputy executive director of the Port Authority of New York and New Jersey, was sentenced to 24 months in prison and Bridget Anne Kelly, 44, former deputy chief of staff to Gov. Christie, to 18 months. On Nov. 4, 2016, Baroni and Kelly were each convicted following a six-week trial before U.S. District Judge Susan D. Wigenton on all seven counts with which they had been charged in an indictment returned May 1, 2015, by a federal grand jury. Judge Wigenton imposed the sentences today in Newark federal court.
“We are satisfied that the sentences handed down today are a just result,” Acting U.S. Attorney Fitzpatrick said. “The defendants’ unlawful use of their government positions and government resources to settle a petty political score was a flagrant breach of their duty to the public and reflected a callous disregard for the welfare of the people of New Jersey. These sentences are fair and appropriate.”
“Today’s sentencing further reinforces the FBI’s commitment to aggressively pursue public corruption at any level, along with our federal, state, and local law enforcement partners and the U.S. Attorney’s Office,” Special Agent in Charge Timothy Gallagher of the Newark FBI Field Office said. “The citizens of the state of New Jersey expect and deserve the highest quality of government, and the FBI and our law enforcement partners remain dedicated to ensuring they receive it.”
“The investigation, prosecution, and convictions, after trial, of William Baroni and Bridget Anne Kelly established that they misused their sacred public trust to harm the very constituents they were hired to serve,” Michael Nestor, Inspector General of the Port Authority, said. “Further, Baroni and Kelly engaged in a cover-up of their scheme, and caused false information to be distributed to their fellow Port Authority employees, other government employees, and the public. The Port Authority Office of Inspector General, and its professional staff, will continue to fulfill its mission of rooting out corruption, no matter what level it may exist within the Port Authority. We commend our law enforcement partners for their cooperative effort and tireless work.”
Baroni and Kelly were each convicted of conspiring to misuse, and actually misusing, property of an organization receiving federal benefits; conspiring to commit, and actually committing, wire fraud; conspiring to injure and oppress certain individuals’ civil rights, and acting under color of law to deprive certain individuals of their civil rights. All of the charges relate to the defendants’ scheme to manufacture traffic problems in Fort Lee by, without public warning, reducing from three to one the number of local access lanes, located in Fort Lee, to the upper level of the George Washington Bridge, and the toll booths servicing those lanes. This was done to punish Mayor Mark Sokolich for not endorsing Gov. Christie’s re-election bid.
A third conspirator, David Wildstein, the former director of Interstate Capital Projects at the Port Authority, pleaded guilty May 1, 2015, to a separate information charging him with two counts of conspiracy for his role in the scheme. Wildstein pleaded guilty to conspiring to misuse the property of an organization receiving federal benefits and conspiring to injure and oppress certain individuals’ civil rights in connection with his role in causing traffic problems to punish Mayor Sokolich. He is awaiting sentencing.
According to documents filed in this case, statements made in court and the evidence at trial:
In August 2013, after Kelly confirmed that Mayor Sokolich would not be endorsing Gov. Christie for re-election in November 2013, Baroni, Kelly, and Wildstein decided to punish the mayor by deliberately causing significant traffic problems in Fort Lee under the false pretense of a traffic study.
From the morning of Sept. 9, 2013, to Sept. 13, 2013, they caused the local access lanes to be reduced so that only one toll booth, instead of the usual three, was accessible to the approach to the bridge for local traffic traveling through Fort Lee. To maximize the congestion and the punitive impact on Mayor Sokolich, Baroni, Kelly and Wildstein caused these lane and toll booth reductions to start on the first day of the school year without any advance notice to Mayor Sokolich, the Fort Lee chief of police or borough residents. The lane and toll booth reductions resulted in significant traffic in Fort Lee, for motorists intending to access the George Washington Bridge from local lanes and for residents, whose streets were choked with traffic.
The conspirators agreed to disregard any inquiries from Mayor Sokolich and other Fort Lee officials about the lane and toll booth reductions. They purposely ignored communications from Mayor Sokolich, including his pleas for help, requests for information, and repeated warnings about the increased risks to public safety. On Sept. 9, 2013, after Baroni received an email that Mayor Sokolich had called about an urgent matter of public safety, Wildstein sent an email to Baroni reiterating that Baroni should maintain “radio silence” toward the mayor. On Sept. 10, 2013, Kelly sent Wildstein a text message stating: “I feel badly about the kids … I guess,” to which Wildstein replied, “They are the children of Buono voters …” a reference to Christie’s opponent in the gubernatorial election, state Sen. Barbara Buono (D-Middlesex).
When Kelly was made aware of Mayor Sokolich’s communication regarding an urgent matter of public safety, she thanked Wildstein for confirming that Baroni had maintained “[r]adio silence” toward Mayor Sokolich. On Sept. 12, 2013, Baroni instructed a Port Authority employee through coded language that the employee should not contact Mayor Sokolich.
The three conspirators concocted and promoted a sham story that the lane reductions were for a traffic study. They created and advanced this cover story so they could use Port Authority property, including the time and services of unwitting Port Authority personnel and other resources, to implement the lane and toll booth reductions and conceal their true punitive purpose.
On Nov. 25, 2013, with Kelly’s and Wildstein’s knowledge, Baroni provided false and misleading testimony about the lane and toll booth reductions to the N.J. Assembly Transportation, Public Works, and Independent Authorities Committee. Baroni knowingly and intentionally made misleading statements and false representations, including: (1) communications between members of the Port Authority Police Department and Wildstein triggered the lane and toll booth reductions; (2) the lane and toll booth reductions were part of a one-week traffic study; and (3) the failure to communicate with Fort Lee and the executive director of the Port Authority was simply the result of communication breakdowns at the Port Authority.
In addition to the prison terms, Judge Wigenton sentenced the each of the defendants to one year of supervised release.
Acting U.S. Attorney Fitzpatrick credited criminal investigators of the Port Authority, Office of Inspector General, under the direction of Inspector General Nestor; special agents of the FBI, under the direction of Special Agent in Charge Gallagher; and criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s guilty verdicts.
The government is represented by Assistant U.S. Attorneys Lee M. Cortes Jr., Vikas Khanna, David W. Feder and Senior Litigation Counsel J Fortier Imbert of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: William E. Baroni: Michael Baldassare Esq., Newark
Bridget Anne Kelly: Michael Critchley Sr. Esq., Roseland, New JerseyFormer Department of Children’s Services Employees Sentenced for Unlawfully Accessing Confidential InformationRead the Press Release
Memphis, TN – Two Memphis women who used to work for the Tennessee Department of Children’s Services (DCS) have been found guilty and sentenced for unlawfully accessing confidential information on the Department’s computers. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentences today.
According to information presented in court, on May 17, 2016, former DCS employee Rubbie King, 48, of Memphis, contacted a friend who still worked at the agency and caused the friend, Bernice Gunn-Davis, 58, to access the file of a minor child in the Department’s care. King’s daughter was involved with Marcus Ross, who faces charges of rape, aggravated statutory rape, aggravated child abuse, and sex trafficking in connection with the minor whose file was accessed. Neither King nor Gunn-Davis had authority to review the contents of the minor’s file. Ross’ case is pending in Shelby County Criminal Court.
King was convicted of conspiracy to access a protected computer without authorization and obtain information, a violation of Title 18, United States Code, Section 371. On March 17, 2017, the Honorable Judge Sheryl H. Lipman sentenced King to serve an eighteen-month term of supervised release, with the first three months on home confinement. This is a felony conviction.
Gunn-Davis was convicted of exceeding authorized access to a protected computer to obtain information, a misdemeanor violation of Title 18, United States Code, Section 1030 (a) (2) (c). On March 27, 2017, Judge Lipman sentenced Gunn-Davis to one year of probation. Gunn-Davis is no longer associated with DCS.
DCS is the state of Tennessee’s public child welfare agency. It investigates allegations of child abuse and neglect; administers the state’s foster care system; works to establish permanency for children that come into the Department’s care; and serves youth who have been adjudicated delinquent. DCS case files are designated confidential by state law. It is a state crime to disclose confidential information about children or families involved with DCS.
The case was investigated by the FBI cybercrime unit, with the assistance of the Department of Children’s Services.
Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.
Former Compton Treasury Official Arrested on Federal Charges Related to Embezzlement of $3.7 Million from City CoffersRead the Press Release
LOS ANGELES – The former deputy city treasurer for the City of Compton was arrested today on federal charges related to the theft of more than $3.7 million of city funds.
Salvador Galvan, 47, of La Mirada, was arrested this morning by special agents with the FBI pursuant to a criminal complaint that charges him with theft concerning programs receiving federal funds.
Galvan faces federal charges stemming from allegations that he stole $3,721,924 from May 2010 through December 2016
Galvan, who worked in the Compton Treasurer’s Office for more than 20 years, was responsible for tallying the cash received by the city as payment for parking tickets, business licenses and other fees. After the cash was counted, Galvan prepared the money for deposit into a city bank account.
According to the criminal complaint filed late yesterday in United States District Court, Galvan skimmed cash from the daily receipts on numerous occasions. An audit of the city’s cash deposits “identified discrepancies which vary from approximately $200 to $8,000 per day,” according to the affidavit in support of the complaint.
The FBI interviewed Galvan’s supervisor, who “reflected about Galvan’s time in the office, his unexplained affluence, and his generosity,” according to the affidavit. The supervisor told investigators that Galvan went from driving an “old Toyota” to increasingly luxurious vehicles, including a black Audi sedan. That affidavit states that Galvan told his supervisor that he purchased a residence in La Mirada and demolished the house so he could rebuild it – all on an annual salary of approximately $60,000.
“The people of Compton deserved better,” said Acting United States Attorney Sandra R. Brown. “This defendant stole millions of dollars intended to help residents, placing his own greed over their interests.”
Galvan was arrested late last year by the Los Angeles County Sheriff’s Department in relation to the theft of city funds. The federal case that led to Galvan’s arrest this morning resulted from further investigation by the Federal Bureau of Investigation.
“Defendant Galvan violated the trust of the public he served by stealing money designated for the betterment of the Compton community,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “By operating a scheme whereby he skimmed Compton city coffers to live beyond his means, Mr. Galvan faces significant federal charges and time behind bars.”
Galvan is scheduled to make his initial court appearance this afternoon in United States District Court.
If he is convicted of the embezzlement charge, Galvan would face a statutory maximum sentence of five years in federal prison.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The case against Galvan is being investigated by the FBI, which is receiving assistance from the Los Angeles County Sheriff’s Department.
This matter is being prosecuted by Assistant United States Attorney Daniel O’Brien of the Public Corruption and Civil Rights Section
Five from Northeast Ohio indicted for firearms violationsRead the Press Release
Five men from Northeast Ohio were indicted on federal firearms charges, said Acting U.S. Attorney David A. Sierleja and Trevor Velinor, ATF Special Agent in Charge for the Columbus Field Division.
Indicted in the unrelated cases are: Nicholas Martin, 37, of Cleveland; Terrence Trawick, 30, of Garfield Heights; Delvon Houser, 31, of Euclid; Vernell Jordan, 27, of Cleveland, and Marlon Clemons, 39, of Warrensville Heights.
“These are individuals with criminal records who have to business or right to carry firearms,” Sierleja said. “We will continue to work with federal agencies and local police to curb violence and prosecute gun offenses.”
“ATF is committed to combating gun violence in our communities,” Velinor said. “These indictments demonstrate our on-going commitment to work with our law enforcement partners to make our communities safer.”
Martin had a SCCY 9 mm pistol on March 2, despite prior felony convictions in Cuyahoga County Common Pleas Court for drug trafficking and improper discharge of a firearm into a habitation.
Trawick had a Taurus .380 caliber pistol with an obliterated serial number on Feb. 11, despite prior felony convictions in Cuyahoga County Common Pleas Court for drug trafficking and robbery and a federal conviction for being a felon in possession of a firearm.
Houser had a Taurus .38 caliber revolver on Jan. 19 despite prior felony convictions in Cuyahoga County Common Pleas Court for robbery and felonious assault.
Jordan had a Smith & Wesson .40 caliber pistol on March 1 despite a conviction in Cuyahoga County Common Pleas Court for attempted felonious assault with a firearms specification.
Clemons had a Taurus .45 caliber pistol and ammunition on Jan. 23, despite prior convictions in Cuyahoga County Common Pleas Court for improper discharge of a firearm, robbery and felonious assault.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
These cases are being prosecuted following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshal Service, the Cleveland Division of Police and the Euclid Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Federal Judge Sentences Hondo, TX, Man to more than 15 Years Imprisonment for Distribution of Child PornRead the Press Release
In Del Rio this week, 46–year-old Bryan DeWain Splawn was sentenced to 188 months in federal prison for distributing child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
During Monday’s sentencing hearing, United States District Judge Alia Moses also ordered that Splawn be placed on supervised release for a period of ten years after completing his prison term.
On July 28, 2016, Splawn pleaded guilty to one count of distribution of child pornography. According to court documents, on December 9, 2015, HSI launched its investigation after making contact online with the defendant who was actively seeking minor females for sex. During the investigation, while Splawn was chatting and texting online, he sent by email five videos containing child pornography to an undercover agent.
On December 19, 2015, HSI agents, with assistance from the Hondo Police Department, arrested Splawn without incident. He has remained in federal custody since.
“These HSI investigations help protect children by taking child predators off the internet and off the streets by putting them behind bars," said Special Agent in Charge Shane Folden, HSI San Antonio. "Targeting these crimes against children is a high priority for HSI. We will continue to dedicate our law enforcement resources to identify and bring to justice child predators who traumatize and victimize children."
Assistant United States Attorney Matthew H. Watters prosecuted the case.
This case was prosecuted as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html.
Edlind Sentenced on Witness Tampering Charges Related to Labor Trafficking CaseRead the Press Release
Harrisonburg, VIRGINIA – A local woman, who was found guilty in December 2015 by a jury of witness tampering and perjury charges in relation to the Inca’s Secret labor trafficking investigation, was sentenced yesterday in the United States District Court for the Western District of Virginia in Harrisonburg, Acting United States Attorney Rick A. Mountcastle announced.
In December 2015, Carolyn J. Edlind, 69, of Harrisonburg, was convicted by jury trial of one count of conspiracy to witness tamper, one count of witness tampering, two counts of obstruction of justice, and one count of perjury. Following the trial, in response to the defendant’s motion, Judge Michael F. Urbanski overturned a portion of the jury’s verdict and dismissed one count of obstruction of justice and one count of perjury.
Yesterday in District Court, Edlind was sentenced to two years’ probation and six months’ home confinement. A co-conspirator in the case, Felix Adriano Chujoy, who was also convicted of similar charges during the same jury trial, has yet to have his sentencing hearing. At Chujoy’s request, the court has put off his sentencing hearing indefinitely.
According to information presented during trial by Assistant United States Attorney Heather L. Carlton, Edlind and Chujoy facilitated in-person meetings between a government witness with information about employees of Inca’s Secret, a restaurant in Harrisonburg being investigated for labor trafficking. Evidence presented at trial proved that the purpose of those meetings was to persuade the witness to change his expected trial testimony.
The investigation of the case was conducted by the Department of Homeland Security. Assistant United States Attorney Heather L. Carlton prosecuted the case for the United States.
Duson man sentenced to 12 months in prison for not paying nearly a quarter of a million dollars in taxesRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Duson business owner was sentenced Monday to 12 months and one day in prison for evading taxes for three years.
Larry J. Thibodeaux, 66, of Duson, La., was sentenced by U.S. District Judge Donald E. Walter on one count of attempting to evade and defeat payment of tax. He was also sentenced to one year of supervised release. The judge also ordered Thibodeaux to pay $248,777 in restitution and a $50,000 fine. According to the November 16, 2016 guilty plea, Thibodeaux, who at the time of the offense was the president and sole shareholder of Thib’s Trailers in Duson, underreported taxes on IRS forms from 2012 to 2014. The corporate tax loss for the three years was $110,970, and the individual tax loss was $137,807 for a total loss to the U.S. Treasury of $248,777.
Internal Revenue Service (IRS) Criminal Investigations conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
Dominican Man Sentenced to 61 Months in Prison for Wire Fraud and Identity TheftRead the Press Release
Johnny Santiago Valdez Calderon, 24, a dual citizen of the United States and the Dominican Republic, was sentenced on March 27, 2017, to serve 61 months in prison, followed by 3 years of supervised release, for engaging in a wire fraud and identity theft scheme, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
According to testimony at a plea hearing in September 2016, Valdez Calderon discovered a technique by which he was able to submit fraudulent online claims to a Tennessee company engaged in the business of selling insurance policies on mobile telephones. By assuming the identities of customers of that company, Valdez Calderon was able to cause that company to ship approximately 2,499 replacement telephones to various addresses in the United States, from which the telephones were collected by individuals who were aiding Valdez Calderon in the scheme. The total value of the fraudulently obtained cellular telephones was approximately $1,144,783.
Valdez Calderon also was ordered to pay restitution in the amount of $1,144,783.54. He has been in custody since his arrest on September 11, 2015.
This case was investigated by the Federal Bureau of Investigation and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Byron Jones of the Middle District of Tennessee and Senior Counsel Anthony V. Teelucksingh of the U.S. Department of Justice, Computer Crimes and Intellectual Property Section are prosecuting the case.
Detroit man pleads guilty for role in Boone County heroin conspiracyRead the Press Release
CHARLESTON, W.Va. – A Detroit man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Darrell Eugene Woodside, 46, entered his guilty plea to using a phone to facilitate the distribution of heroin.
Woodside admitted that from October 2015 through March 2016, while in Detroit, he communicated by phone regarding heroin trafficking with his nephew in Boone County, Daymeon Johnson. Woodside also admitted that these conversations were to help arrange the delivery of heroin from Michigan to West Virginia for distribution in and around Boone County. Woodside additionally admitted making travel arrangements for runners carrying heroin and cash between Michigan and West Virginia.
Woodside faces up to four years in federal prison when he is sentenced on June 22, 2017.
This case is part of a long-term investigation of heroin trafficking in Boone County conducted by the West Virginia State Police and the U.S. Route 119 Drug Task Force. The investigation has led to the convictions of several defendants. Christopher Priestly, of Bloomingrose, was sentenced to two and a half years in federal prison for distribution of heroin. Robert Donavan Buzzard, of Bloomingrose, was sentenced to a year and nine months in federal prison for distribution of heroin. Gregory Scott Runion, of Seth, was sentenced to a year and a half in federal prison for being a felon in possession of a firearm. Daymeon Johnson, of Detroit, previously pleaded guilty to conspiracy to distribute heroin and faces up to 20 years in federal prison when he is sentenced on April 4, 2017. Joyce Ann Zornes, of Seth, previously pleaded guilty to aiding and abetting the distribution of heroin and faces up to 20 years in federal prison when she is sentenced on April 27, 2017.
Assistant United States Attorney Joshua C. Hanks is in charge of these prosecutions. The plea hearing was held before United States District Judge Joseph R. Goodwin.
These cases are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Couple Charged with Tax Fraud SchemeRead the Press Release
Christine Corazo Holscher, 47, and Mark E. Holscher, 54, of Pennsauken, NJ, were charged yesterday by Indictment with conspiracy to defraud the United States and multiple counts of tax fraud, announced Acting United States Attorney Louis D. Lappen. According to the indictment, for several years Corazo Holscher and Holscher, who were then living in Philadelphia, conducted a scheme to defraud the IRS by soliciting the Social Security Numbers and dates of birth from other persons, and then filing false tax returns in the names of those persons. The tax returns filed by the Holschers falsely claimed that those persons had earned income and were entitled to a tax refund. When tax refunds were issued, the Holschers would obtain and keep a portion of each refund for themselves. The refunds issued as a result of the scheme totaled over $2 million.
If convicted, each of the defendant faces a maximum possible sentence of 131 years in prison and over $10 million in fines.
The case was investigated by the Internal Revenue Service and is being prosecuted by Assistant United States Attorneys Bea L. Witzleben and Tiwana L. Wright.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Columbia Man Pleads to Sex Trafficking ChargeRead the Press Release
Contact Person: William K. Witherspoon (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Alshura Tabil Annessa Frazier, age 36, of Columbia, South Carolina has entered a guilty plea in federal court in Columbia, to sex trafficking of children, a violation of 18 U.S.C. § 1591(a) (1) and possession of a firearm during a drug trafficking crime, a violation of 18 U.S.C. § 924(c). United States District Judge Mary Geiger Lewis of Columbia accepted the guilty plea and will impose sentence after she has reviewed the presentence report that will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that around Memorial Day in 2015, a minor female under the age of eighteen (18) left her family in North Carolina and met Frazier in Myrtle Beach. Following this encounter, Frazier and others had sex with the minor in exchange for providing her with the recreational drug “Molly” and shelter for the night. After leaving Myrtle Beach, Frazier brought the minor to Columbia, South Carolina, where Frazier recruited her to perform sexual acts on clients for money. Frazier posted the minor or had others post the minor on Backpage.com, a site known to be used for sex trafficking. Frazier transported her to and from North Carolina and to and from South Carolina on multiple occasions for the purpose of prostitution. Frazier received one-hundred (100%) percent of the profits made from the prostitution. The minor was sixteen (16) years of age at the time she began working as a prostitute for Frazier. During this time, Frazier knew that the minor was under the age of eighteen (18).
The minor also advised that she engaged in sexual intercourse with Frazier when she was sixteen (16) years of age. The minor stated that Frazier used one of his cell phones to video her and another prostitute with Frazier engaging in sexual activity when the minor was sixteen (16) or seventeen (17) years of age.
In addition, on March 18, 2015, a Richland County deputy attempted to make a traffic stop on a car for failing to give a turn signal. The car sped off and a chase took place. During the chase, the car pulled into a parking lot and a female, who was later identified as a prostitute working for Frazier, got out of the car and ran carrying a box. The officer was able to identify Frazier by his driver’s license photo. The car was registered to Frazier’s mother.
After the officer could not stop the car, he returned to the spot where the prostitute exited the car and ran. With the help of citizens, he found the female hiding in the woods. The female took the officer back to where she hid the box. In the box, officers located a 10mm Glock pistol, cocaine, crack cocaine, and suspected Molly. The female told the officer that the box belonged to Frazier who gave it to her and told her to run. Based upon this evidence, the gun was used and carried during and in relation to, and possessed in furtherance of a drug trafficking crime.
Ms. Drake stated the maximum penalty for the sex trafficking charge is life imprisonment and/or a fine of $250,000. The maximum penalty for the possession of a firearm in furtherance of the drug trafficking crime is also life imprisonment and/or a fine of $250,000.
The case was investigated by agents of the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Springdale Police Department, and Richland County Sheriff’s Department. Assistant United States Attorneys William K. Witherspoon and T. DeWayne Pearson of the Columbia office are prosecuting the case.
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Columbia Man Pleads Guilty to Possession of a FirearmRead the Press Release
Contact Person: William K. Witherspoon (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Johnny Willie Jones, age 30, of Columbia, South Carolina has entered a guilty plea in federal court in Columbia to felon in possession of a firearm, a violation of 18 U.S.C. § 922(g)(1). United States District Judge Mary Geiger Lewis of Columbia accepted the guilty plea and will impose sentence after she has reviewed the presentence report that will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on January 31, 2016, Jones was involved in a verbal altercation at a halfway house on Lady Street. Under the rules of the halfway house, females are not allowed in the males’ rooms. The manager of the home confronted Jones about having a female in his room. A verbal altercation turned physical between Jones, the manager, and her daughter. After it became physical, Jones stated, “I got something for you” and went up to his room and retrieved a sawed-off shotgun, went back downstairs, and shot in the direction of the two females. Both females were unharmed. Jones then left the halfway house after the police were called. The police found the shotgun in a lot behind the house. Jones fled the scene and was later arrested in Arizona. Jones had previously been convicted of kidnapping and two (2) counts of armed robbery and, therefore, was prohibited from possessing a firearm.
Ms. Drake stated the maximum penalty for a felon in possession of a firearm in this case is imprisonment for 10 years and a fine of $250,000.
The case was investigated by agents of the Federal Bureau of Investigation (FBI) and Columbia Police Department. Assistant United States Attorney William K. Witherspoon of the Columbia office is prosecuting the case.
This case was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.
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Collin County Man Guilty of Federal Tax ViolationsRead the Press Release
PLANO, Texas – A 48-year-old McKinney, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Peter Mwedziwendira pleaded guilty on Mar. 28, 2017, to filing false personal tax returns before U.S. Magistrate Judge Kimberly C. Priest Johnson.
According to information presented in court, Mwedziwendira admitted to filing false personal tax returns for himself for tax years 2011, 2012 and 2013. In those false returns, Mwedziwendira falsely claimed that he was entitled to a Head of Household filing status and also falsely claimed the Earned Income Tax Credit and the Child Tax Credit in addition to false educational expenses. Mwedziwendira also admitted to preparing false tax returns for several of his clients for the 2011, 2012 and 2013 tax years. Mwedziwendira’s actions caused a tax loss to the Internal Revenue Service of $248,332. He was indicted in February 2017 by a federal grand jury.
Under federal statutes, Mwedziwendira faces up to three years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
This case was investigated by the Internal Revenue Service Criminal Investigations is being prosecuted by Assistant U.S. Attorney J. Andrew Williams.
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Cleveland man indicted for robbing two Mansfield banksRead the Press Release
A Cleveland man was indicted for robbing two banks in Mansfield, said Acting U.S. Attorney David A. Sierleja, FBI Special Agent in Charge Stephen D. Anthony and Mansfield Police Chief Kenneth Coontz.
Marty Taylor, 40, was indicted on two counts of bank robbery.
Taylor robbed the Richland Bank located at 50 Marion Avenue in Mansfield on Dec. 12, 2016. He also robbed the First Merit Bank located at 100 Park Avenue West in Mansfield on Jan. 17, 2017, according to the indictment.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Mansfield Police Department and the Federal Bureau of Investigation’s Mansfield Office. The case is being prosecuted by Assistant United States Attorney Brad J. Beeson.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man guilty of making illegal straw purchases at gun showRead the Press Release
A Cleveland man pleaded guilty to making illegal straw purchases of 24 firearms over two days at a gun show, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio and Trevor Velinor, ATF Special Agent in Charge for the Columbus Field Division.
Carlton H. Nunn, 36, is scheduled to be sentenced July 11.
Nunn purchased two dozen firearms from four dealers at an area gun show on Sept. 10 and 11, 2016. He knowingly and unlawfully made false and fictitious statements, intended to deceive dealers, that he was the actual buyer of said firearms when, in fact, he was not the actual buyer of said firearms, according to court documents and statements.
This case is being prosecuted by Assistant United States Attorney Megan R. Miller following an investigation by the ATF.
Caribbean Corridor Strike Force Arrests Four Individuals and Seizes 1,608 Kilograms of CocaineRead the Press Release
SAN JUAN, PR – On March 27, 2017, federal officers assigned to the Caribbean Corridor Strike Force (CCSF) arrested four individuals while attempting to smuggle 1,608 kilograms of cocaine into Puerto Rico, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. A Glock 9mm pistol and 18 rounds of 9mm ammunition were also seized during the arrests. U.S. Magistrate Judge Camille L. Vélez-Rivé authorized a complaint charging Wilson Cuevas-Alcántara, Evelio Rivera-Jiménez, Tairo Martínez-De Rosario and Juan C. Rodríguez with Conspiracy to Possess with Intent to Distribute Cocaine and Possession of Cocaine.
On Monday, at approximately 12:00am, a United States Customs and Border Protection Marine Patrol Aircraft detected a vessel traveling southbound without navigation lights at approximately 40 nautical miles (NM) north of Dorado, Puerto Rico. The aircraft coordinated with the CBP Interceptor Unit and the United States Coast Guard to intercept the vessel. The CBP Interceptor Unit came to a short distance of the vessel at approximately four nautical miles north of the coast of Río Grande, PR, and initiated the interdiction of the vessel by energizing its blue lights, siren and verbal commands, but the vessel did not stop and continued at a high rate of speed of approximately 30-35knots.
The CBP Interceptor Unit fired two warning shots, but the vessel did not stop so they fired six disabling rounds to the vessel engines. Two individuals were arrested onboard and the other two who had jumped overboard during the pursuit were also apprehended by members of the United States Coast Guard and Puerto Rico Police Maritime Unit.
Forty-eight bales containing 1,449 bricks of cocaine weighing approximately 1,608 kilograms were field tested and yielded positive results to cocaine.
“These arrests are a clear indication of the continued success of the Caribbean Corridor Strike Force” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “This is just another example of the fine work our State and Federal law enforcement partners accomplish every day. With the continued collaboration and assistance of our law enforcement partners, we will continue our efforts to bring the most powerful and prolific drug organizations to justice.”
“This is another example of how our anti-crime plan, which establishes a close collaboration with the federal agencies, is producing great dividends,” said Puerto Rico Police Department Superintendent Michelle Hernandez. “We congratulate all PRPD police officers who participated in this effort and the Caribbean Corridor officers and special agents for keeping our borders safe. Drug traffickers should know that we are working as a team to stop the flow of drugs on the Island.”
The case is being investigated by agents from the Caribbean Corridor Strike Force (CCSF). The CCSF is an initiative of the U.S. Attorney's Office created to disrupt and dismantle major drug trafficking organizations operating in the Caribbean. CCSF is part of the Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of DEA, HSI, FBI, US Coast Guard, US Attorney Office for the District of Puerto Rico, and PRPD's Joint Forces for Rapid Action.
The case is being prosecuted by Assistant United States Attorney Carlos R. Cardona.
The defendants are facing terms of imprisonment from 10 years to life for the narcotics violations. Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Buffalo Man Pleads Guilty to Heroin and Fentanyl ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Francis Tessina, 45, of Buffalo, NY, pleaded guilty to possession with intent to distribute heroin and fentanyl before U.S. District Judge Lawrence J. Vilardo. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on March 9, 2015, the defendant sold heroin and fentanyl to an individual cooperating with law enforcement. The following day, as Tessina was again preparing to sell heroin and fentanyl to the same person, he was arrested.
According to a previously filed complaint, on February 28, 2015, law enforcement officers investigated the apparent opioid overdose of a man in Hamburg, NY. During the investigation, officers discovered a cellular telephone that belonged to the individual. Text messages exchanged between him and an individual identified as John Haak revealed that the man received what was purported to be heroin from Haak shortly before his body was discovered. Further investigation revealed that Haak delivered fentanyl, purchased from Tessina, to the man late in the afternoon of February 28, 2015. Haak also sent text messages to him warning him to be careful with the heroin because Haak believed it contained fentanyl.
The plea is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Hamburg Police Department, under the direction of Chief Gregory Wickett, and the Evans Police Department, under the direction of Chief Douglas Czora.Sentencing is scheduled for July 12, 2017 at 9:00 a.m. before Judge Vilardo.
Bridgeport Heroin Trafficker Sentenced to 51 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL BENNETT, 29, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 51 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, in 2015, the FBI’s Bridgeport State Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force initiated an investigation into several heroin distributors operating in Bridgeport. The investigation, included court-authorized wiretaps, controlled purchases of heroin and physical surveillance, revealed that Kareem Roseboro, also known as “Swiss,” was supplying heroin to other distributors. Roseboro and others used the Stylz Barbershop, located on State Street in Bridgeport, as a hub for their narcotics distribution activity.
The investigation further revealed that BENNETT supplied certain individuals in Roseboro’s network with heroin when Roseboro was unable to do so. In addition, in September and November 2015, investigators conducted two controlled purchases of heroin from BENNETT.
During the course of the investigation, investigators seized multiple “bricks” of heroin, items used in the processing and packaging of heroin, and five firearms. A brick of heroin contains 100 individual dose bags.
On June 6, 2016, a grand jury in Bridgeport returned an eight-count indictment charging BENNETT, Roseboro and five other Bridgeport residents with heroin trafficking offenses. The seven defendants were arrested on June 7, 2016.
BENNETT has been detained since his arrest. On December 21, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin.
BENNETT’s criminal history includes a 2007 state conviction for first degree assault, which stemmed from an incident in which BENNETT shot an individual in the shoulder during a personal dispute. BENNETT was sentenced to 15 years of incarceration, suspended after 117 months, and five years of probation. He was on state probation when he was trafficking heroin that resulted in this federal charge.
Roseboro has pleaded guilty and awaits sentencing.
This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, with the assistance of the Drug Enforcement Administration, Connecticut State Police, Stratford Police Department, Stamford Police Department and the Trumbull Police Department K-9 Unit. The case is being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds and H. Gordon Hall.
Boise Man Sentenced for Unlawful Possession of GBLRead the Press Release
BOISE – Davis Jacobs, 27, of Boise, Idaho, was sentenced on March 28, 2017, to one year of probation, including six months of home detention, 200 hours of community service, and a $1,000 fine, for unlawful possession of Gamma-Butyrolactone (GBL), Acting United States Attorney Rafael Gonzalez announced. Jacobs was charged in an information.
According to the plea agreement, on April 13, 2016, United States Customs and Border Protection in San Francisco, California, intercepted a parcel from Hong Kong addressed to Jacobs in Boise, Idaho. The parcel, which was declared as “paint tools,” contained a bottle of 1,218 gross grams of liquid GBL. GBL is a Schedule I controlled substance. Jacobs admitted to purchasing the GBL knowing that it was illegal and a controlled substance.
The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement, with assistance from the U.S. Postal Inspection Service.
Boerne Man Admits Hacking into Former Employer’s Computer System and Shutting it DownRead the Press Release
In San Antonio, 40-year-old Brian Neal Bond of Boerne, TX, faces up to five years in federal prison after admitting to hacking into a local business and shutting down their computer operations announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Xavier Rodriguez, Bond pleaded guilty to one count of computer intrusion and damage. According to court records, from September 2010 to approximately April 2015, Bond worked as an Information Technology Help Desk manager in the Boerne, TX, facility of Colorado-based business. Bond left that company’s employment to accept a position with a different company. By pleading guilty, Bond admitted that beginning in June 2015 and continuing to January 2016, Bond, without authorization, accessed his former employer’s computers approximately 124 times. On one of those occasions—January 12, 2016—Bond admitted to shutting down his former employer’s trading system, making it unavailable to customers. Bond also deleted a file that was essential to the trading systems ability to operate. Bond’s interruption actions resulted in an estimated loss to his former employer of $10,816, which Bond has already paid into the registry of the Court.
The defendant remains out on bond pending sentencing scheduled for June 28, 2017, before Judge Rodriguez.
The Federal Bureau of Investigation conducted this investigation. Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the Government.
Bay Area Fraudster Sentenced to 30 Months in Prison for Duping Investors Out of More Than $3 MillionRead the Press Release
SAN FRANCISCO- Marc Christopher Harmon was sentenced today to 30 months in prison for his role in a conspiracy to commit wire fraud and wire fraud, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The sentence was handed down by the Honorable Richard Seeborg, U.S. District Judge, after Harmon was tried and found guilty by a federal jury.
Harmon, 44, formerly of San Leandro, Calif., was charged in an indictment filed July 3, 2014, along with co-conspirator Jason George Rivera, Jr., 38, of Danville, Calif., in a scheme to defraud multiple investors of more than $3 million. The evidence at trial demonstrated that between October 2008 and January 2011, Harmon and Rivera used a Nevada corporation known as Executive Members Management Group, or EMMG, as a vehicle to defraud investors. The scheme involved promises that EMMG would purchase or trade collateralized mortgage obligations (CMOs) using funds provided by the investors, or would invest their funds in other lucrative transactions. Rivera and Harmon convinced victims to invest substantial sums of money, by promising, among other things, high rates of returns by participating in exclusive trading markets overseas and funding short-term loans for banks. The evidence at trial demonstrated Harmon’s role included recruiting investors to EMMG and making many false representations to induce the investors to contribute to non-existent investment programs.
On July 3, 2014, a grand jury returned an indictment charging defendants with eight counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349. Rivera also was charged with two counts of tax evasion, in violation of 26 U.S.C. § 7201. On July 29, 2015, Rivera pleaded guilty to the conspiracy to commit wire fraud charge and the two tax evasion counts. As against Harmon, the government dismissed two counts of fraud and the jury convicted him of all the remaining charges. Following trial, on October 11, 2016, Harmon entered into a post-trial plea agreement with the government in which he pleaded guilty to one count of fraud.
In addition to the prison sentence, Judge Seeborg sentenced Harmon to three years of supervised release and $1,837,500 in restitution. Harmon is in custody and will begin serving his sentence immediately.
Rivera was sentenced on February 8, 2017, to 33 months of imprisonment, three years of supervised release, and $2,045,207 in restitution.
Assistant U.S. Attorneys Benjamin Kingsley and Shailika Kotiya are prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the FBI and IRS, Criminal Investigation.
Baltimore Area Retailer Sentenced to Federal Prison for Food Stamp FraudRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Muhammad Sarmad, age 41, of Nottingham, Maryland, to 18 months in prison, followed by three years of supervised release, for conspiracy to commit food stamp fraud and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. At the sentencing on March 27, 2017, Judge Bennett also ordered that Sarmad pay restitution of $3,550,662.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation.
“The food stamp program can be exploited by criminals like Muhammad Sarmad, who take advantage of the fact that the Department of Agriculture trusts retailers to actually provide food in return for taxpayer money,” said U.S. Attorney Rod J. Rosenstein.
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers must bill the government only in return for providing approved food items.
Sarmad, co-defendant Mohammad Irfan, and other family members owned and/or operated New Sherwood Market, 6324 Sherwood Road in Northwood, Maryland; Martin Mart, 1504 Martin Boulevard in Middle River, Maryland; Rosedale Mart, 6326 Kenwood Avenue in Rosedale, Maryland; and M&A Mart 7400-A Belair Road in Baltimore. All of the stores were authorized to accept SNAP, except the M&A Mart. According to their plea agreements, from October 2010 through at least July 2016, Sarmad, Irfan, and their co-conspirators exchanged EBT benefits for cash, in violation of the food stamp program rules. Sarmad, Irfan, and their co-conspirators typically paid half the value of the EBT benefits in cash. To avoid detection, they often debited the funds from the card in multiple transactions over a period of hours or days, or called a different store where the transaction was processed manually. Since the M&A Mart was not authorized to accept SNAP, Sarmad or a co-conspirator would call one of the other stores to run the transaction at the other store and then hand out the cash at M&A Mart.
Sarmad, Irfan and their co-conspirators received instruction regarding the requirements and regulations of the food stamp program, including that only eligible food items could be exchanged for EBT benefits, and that a retailer may never exchange EBT benefits for cash or non-food items. Sarmad admitted that from October 2010 through August 2016, Sarmad and his co-conspirators obtained more than $3.5 million in payments for food sales that never occurred or were substantially inflated.
In addition to Sarmad and Irfan, nine other retail store operators have pleaded guilty to their roles in similar schemes to illegally redeem food stamp benefits in exchange for cash, and are awaiting sentencing. Three other defendants are scheduled to go to trial later this year.
Mohamad Irfan, age 59, of Baltimore, previously pleaded guilty to conspiracy to commit wire and food stamp fraud, and faces a maximum sentence of five years in prison. Judge Bennett has scheduled sentencing for Irfan on May 9, 2017 at 11:00 a.m. Irfan is detained pending sentencing.
United States Attorney Rod J. Rosenstein praised the USDA Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Kathleen O. Gavin, who prosecuted Sarmad and Irfan.
Attorney General Sessions to Travel to St. LouisRead the Press Release
****** MEDIA ADVISORY ******
Attorney General Jeff Sessions will travel to St. Louis on FRIDAY, MARCH 31, 2017, to speak with federal, state and local law enforcement about efforts to combat violent crime and restore public safety.
WHO: Attorney General Jeff Sessions
WHAT: Speech to federal, state and local law enforcement partners.
WHEN: FRIDAY, MARCH 31, 2017
10:00 a.m. CDT (11 a.m. EDT)
WHERE: Thomas Eagleton U.S. Courthouse
111 S. 10th Street
St. Louis, MO 63102
1st Floor Jury Assembly Room
OPEN PRESS
(Camera Preset by for K9 Sweep: 9:15 a.m. CDT // Final Access: 9:40 a.m. CDT)
NOTE: All media must RSVP and present government-issued photo I.D. (such as a driver’s license as well as valid media credentials). The RSVP and any inquiries regarding logistics should be directed to Peter Carr in the Office of Public Affairs at 202 514-2007 or [email protected].