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28 March 2017
Independence Man Indicted for Meth After High-Speed ChaseRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was indicted by a federal grand jury today for possessing methamphetamine to distribute, following a high-speed pursuit and foot chase by Independence police officers.
George S. Schrand, Jr., 35, of Independence, was charged in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Schrand on March 13, 2017.
Today’s indictment alleges that Schrand was in possession of methamphetamine with the intent to distribute on March 13, 2017.
According to an affidavit filed in support of the original criminal complaint, an Independence police officer saw Schrand, who was driving a 1996 Ford Mustang, rev his engine and accelerate in a careless manner from the intersection of East Golf Avenue and Home Street. The officer activated the emergency equipment of his patrol vehicle and attempted to initiate a traffic stop, but Schrand refused to stop and a high-speed chase ensued.
During the chase, the affidavit says, Schrand’s vehicle reached speeds of 80-to-90 miles-per-hour throughout residential areas and on city thoroughfares. Schrand traveled into oncoming traffic and nearly collided with another vehicle before eventually being disabled by police stop sticks in Kansas City, Mo. Schrand then fled on foot with officers in pursuit. Schrand eluded officers during the pursuit by jumping over a fence near 18th Street and Bennington in Kansas City, Mo. An Independence K-9 officer discovered Schrand hiding beneath a vehicle that was parked behind a residence in the 1900 block of South Ewing Street in Kansas City, Mo.
A black backpack that Schrand dropped near the fence he jumped over was opened and searched. According to the affidavit, officers found four plastic baggies that contained a total of approximately 338 grams of methamphetamine, drug paraphernalia and eight tablets of Alprazolam (generic Valium). Officers searched Schrand during his arrest and found $20,950 and a plastic baggie that contained approximately 4.4 grams of methamphetamine.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Matt Moeder. It was investigated by the Independence, Mo., Police Department.
Framingham Man Pleads Guilty to Multiple Bank RobberiesRead the Press Release
BOSTON – A Framingham man pleaded guilty today in U.S. District Court in Boston to robbing two banks in Framingham.
Jalonni Tucker a/k/a Jalonni Shabazz, 36, pleaded guilty to two counts of unarmed bank robbery and is scheduled to be sentenced on July 5, 2017.
On June 21, 2016, an individual entered a branch of TD Bank in Framingham and placed a demand note on the teller’s counter indicating a robbery. The teller handed the robber cash, and the individual exited the bank. The bank’s surveillance cameras captured images of the individual, and surveillance cameras on neighboring businesses captured images of the individual driving away in a white/silver Chrysler SUV with distinctive chrome wheels.
On July 13, 2016, an individual entered a branch of Citizens Bank in Framingham and committed a similar robbery. The bank’s exterior surveillance cameras captured images of the individual driving away in a white/silver Chrysler SUV with distinctive chrome wheels.
During the course of the investigation, law enforcement determined that the Chrysler SUV belonged to a Framingham resident and that Tucker was married to the registered owner of the vehicle. Tucker’s picture matched the surveillance camera images of the robbery suspect. On July 15, 2016, Tucker was arrested at his Framingham home.
The charging statue provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000 on each robbery charge. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb, Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division and Framingham Police Chief Kenneth Ferguson made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit.
Four Plead Guilty in Marijuana Drug ConspiracyRead 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 Damarcus Hennings, 25; Shaquata Hennings, 30; Shahana Beaver, 25; and Janice Humphrey, 28, all of Buffalo, N.Y., pleaded guilty for their involvement in a marijuana and money laundering conspiracy before U.S. District Judge Elizabeth A. Wolford. Demarcus Hennings, Shaquata Hennings, and Shahana Beaver each pleaded guilty to conspiracy to possess with intent to distribute marijuana and face a maximum possible sentence of five years in prison. Demarcus and Shaquata Hennings also each pleaded guilty to additional crimes. Specifically, Demarcus also pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory minimum penalty of five years in prison and a maximum of life, which must be served consecutive to any sentence imposed on his drug conviction. While Shaquata also pleaded guilty to conspiracy to commit money laundering, a crime for which she faces up to 20 years in prison. Finally, Janice Humphrey pleaded guilty to maintaining a drug involved premises, which carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that between April 2015, and September 2015, the defendants conspired to ship, receive, and distribute more than 50 packages containing marijuana from Denver, Colorado to Buffalo, New York. The defendants also conspired to send the cash proceeds from resulting marijuana sales back to their marijuana source of supply in Denver.
Charges are pending against two other defendants in this case, Dashawn Abrams and Arthur Clark. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The guilty pleas are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.Defendants Beaver and Humphrey are scheduled to be sentenced on July 11, 2017, before Judge Wolford. Sentencing for Damarcus Hennings and Shaquata Hennings will be scheduled at a later date.
Former Texas Congressman and Associate Indicted for Multi-Year Fraud SchemeRead the Press Release
HOUSTON - A former U.S. Congressman and one of his associates were indicted today for their roles in orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations. Some of the funds were used to illegally finance the politician’s campaigns for public office and to pay for his personal expenses and those of his associates. Acting U.S. Attorney Abe Martinez of the Southern District of Texas and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement along with Assistant Director in Charge Andrew W. Vale of the FBI's Washington Field Office and Special Agent in Charge D. Richard Goss of IRS - Criminal Investigation (CI), Houston Field Office.
Former U.S. Representative Stephen E. Stockman, 60, of Clear Lake, and the former director of special projects in Stockman’s congressional office, Jason Posey, 46, formerly of the Houston area, were charged in a 28-count superseding indictment with mail and wire fraud, conspiracy, making false statements to the Federal Election Commission (FEC), making excessive campaign contributions and money laundering. Stockman is also charged with filing a false tax return that concealed his receipt and personal use of the fraudulent proceeds, while Posey is charged with falsifying an affidavit in order to obstruct an FEC investigation. Thomas Dodd, a former special assistant in Stockman’s congressional office, pleaded guilty to his involvement in the scheme on March 20, 2017.
According to the superseding indictment, from May 2010 to October 2014, Stockman solicited approximately $1,250,000 in donations based on false pretenses. Specifically, the indictment alleges that in 2010, Stockman diverted a significant portion of $285,000 donated to charitable causes to pay for his and Dodd’s own personal expenses and to further Stockman’s own interests. The indictment further alleges that in 2011 and 2012, Stockman and Dodd received an additional $165,000 in charitable donations, much of which Stockman used to finance his 2012 congressional campaign.
Shortly after Stockman took office in the U.S. House of Representatives in 2013, he and Dodd allegedly used the name of a nonprofit entity to solicit and receive a $350,000 charitable donation. Stockman allegedly used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, a covert surveillance project targeting a perceived political opponent and payments associated with Stockman’s U.S. Senate campaign in early 2014.
The superseding indictment further alleges that in connection with Stockman’s Senate campaign, Posey used a nonprofit entity to secure a $450,571 donation in order to fund a mass-mailing project attacking Stockman’s opponent. Only approximately half of the donation was spent on the mail campaign, and Posey used a portion of the unspent balance to pay for expenses associated with Stockman’s Senate campaign and to fund personal expenses, according to the charges.
The FBI and IRS-CI conducted the investigation. Assistant U.S. Attorney Melissa Annis of the Southern District of Texas and Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section are prosecuting the case.
Former Texas Congressman and Associate Indicted for Multi-Year Fraud SchemeRead the Press Release
A former U.S. Congressman and one of his associates were indicted today for their roles in orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations. Some of the funds were allegedly used to illegally finance the politician’s campaigns for public office and to pay for his personal expenses and those of his associates.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Assistant Director in Charge Andrew W. Vale of the FBI's Washington Field Office and Special Agent in Charge D. Richard Goss of IRS Criminal Investigation’s (CI) Houston Field Office made the announcement.
Former U.S. Representative Stephen E. Stockman, 60, of Clear Lake, Texas, and the former director of special projects in Stockman’s congressional office, Jason Posey, 46, formerly of the Houston, Texas, area, were charged in a 28-count superseding indictment with mail and wire fraud, conspiracy, making false statements to the Federal Election Commission (FEC), making excessive campaign contributions and money laundering. Stockman is also charged with filing a false tax return that concealed his receipt and personal use of the fraudulent proceeds, while Posey is charged with falsifying an affidavit in order to obstruct an FEC investigation. Thomas Dodd, a former special assistant in Stockman’s congressional office, pleaded guilty to his involvement in the scheme on March 20, 2017.
According to the superseding indictment, from May 2010 to October 2014, Stockman solicited approximately $1,250,000 in donations based on false pretenses. Specifically, the indictment alleges that in 2010, Stockman diverted a significant portion of $285,000 donated to charitable causes to pay for his and Dodd’s own personal expenses and to further Stockman’s own interests. The indictment further alleges that in 2011 and 2012, Stockman and Dodd received an additional $165,000 in charitable donations, much of which Stockman used to finance his 2012 congressional campaign.Shortly after Stockman took office in the U.S. House of Representatives in 2013, he and Dodd allegedly used the name of a nonprofit entity to solicit and receive a $350,000 charitable donation. Stockman allegedly used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, a covert surveillance project targeting a perceived political opponent and payments associated with Stockman’s U.S. Senate campaign in early 2014.
The superseding indictment further alleges that, in connection with Stockman’s Senate campaign, Posey used a nonprofit entity to secure a $450,571 donation in order to fund a mass-mailing project attacking Stockman’s opponent. Only approximately half of the donation was spent on the mail campaign, and Posey used a portion of the unspent balance to pay for expenses associated with Stockman’s Senate campaign and to fund personal expenses, according to the charges.
The charges and allegations contained in the superseding indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The FBI and IRS-CI conducted the investigation. Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Melissa Annis of the Southern District of Texas are prosecuting the case.
Former St. Peters Mayor Pleads Guilty to Federal Fraud ChargesRead the Press Release
St. Louis, MO – Shawn Brown pled guilty to one charge of mail fraud. Brown appeared today before United States District Judge Ronnie L. White. Sentencing is set for June 29, 2017.
According to court documents, at some time in 2008, Shawn Brown (“Brown”) contacted M.S. to discuss purchasing Midwest Environmental, a company that focused on mold and asbestos removal, air duct cleaning and other property clean up. Brown and M.S. agreed that Brown would run the day to day operation of the company. Brown’s responsibility included making bids, accepting and depositing payments and paying various operating expenses.
From 2008 until April 2014, Brown spoke with M.S. monthly and informed him generally of the company’s financial well-being. In April 2014, Brown began suffering from a health issue and was unable to work for a period of time. In Brown’s absence, M.S. reviewed NUTECH’s financials. Upon review, M.S. discovered numerous charges on the company’s bank account statements for purchases made by Brown for his personal use and benefit from April 2011 through May 2014.
It was determined that Brown stole $65,054 of NUTECH’s money for his own personal use and benefit.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the FBI. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.
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Former Commercial Supply Company Employee Charged with Fraud, Corruption, and Giving False TestimonyRead the Press Release
NEWARK, N.J. – A former salesman at Bayway Lumber, a Linden, New Jersey company that sold commercial and industrial products to numerous public and private entities, was charged today with defrauding Bayway Lumber customers and knowingly making false statements before a federal grand jury, Acting U.S. Attorney William E. Fitzpatrick announced.
Adam Martignetti, 43, of South River, New Jersey, is charged by indictment with one count of conspiracy to commit wire fraud, four counts of corruptly giving valuable items to agents of entities receiving federal funds, and one count of providing false testimony to a federal grand jury. He was arrested this morning by federal agents and is scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the indictment:
From 2011 through 2013, Martignetti allegedly conspired with others to defraud certain customers by fraudulently billing them for free items given to the customers’ employees and by fraudulently providing lower-quality products than what was actually purchased.
Martignetti gave a variety of valuable items to employees of Amtrak, the City of Elizabeth, and the Plainfield Board of Education. These items included a laptop, several iPads, a camera and sound system, patio furniture, and other merchandise. Under the supervision of Robert Dattilo, President and partial owner of Bayway Lumber, Martignetti overbilled those customer entities to recover the gifts’ costs and generate additional revenue. Dattilo even kept a running tally of how much Martignetti and others fraudulently billed those customer entities – which many at Bayway Lumber referred to as the “Bank” – to ensure that Bayway Lumber recovered the full cost of the free items.
Martignetti also participated in a product substitution fraud in which Bayway Lumber supplied lower quality products than what was actually ordered and paid for. When Consolidated Edison Company of New York Inc. (ConEdison) ordered plywood that was graded to meet certain specifications, Martignetti, at Dattilo’s instruction, routinely sent lower grade or ungraded plywood, all while still charging ConEdison for the higher quality plywood.
While appearing as a witness under oath before a federal grand jury in March 2013, Martignetti falsely testified that he had never given free Bayway Lumber items to City of Elizabeth employees and that Elizabeth was never charged for items that were for the employees’ personal use.
The conspiracy to commit wire fraud count carries a maximum potential penalty of 20 years in prison. Each charge of corruptly giving valuable items to agents of federally-funded entities carries a maximum potential penalty of 10 years in prison. The knowingly making false statements before a grand jury count carries a maximum penalty of five years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.
Dattilo previously pleaded guilty to conspiracy to commit mail and wire fraud and was sentenced to 48 months in prison and ordered to pay restitution of $708,386 in July 2016.
Acting U.S. Attorney Fitzpatrick credited special agents with the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi; the Office of Inspector General, Amtrak, under the direction of Inspector General Thomas Howard; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s arrest. He also thanked the Department of Education Office of Inspector General, under the direction of Special Agent in Charge Brian Hickey, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division, and Deputy Chief Barbara R. Llanes of the U.S. Attorney’s General Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Michael A. Armstrong Esq., Willingboro
Former Atlantic County, New Jersey, Man Charged with Smuggling and Dispensing Misbranded DrugsRead the Press Release
CAMDEN, N.J. – A former Atlantic County, New Jersey, man charged in connection with a scheme to smuggle misbranded drugs into the country and dispense drugs without a valid prescription will make his initial court appearance today, Acting U.S. Attorney William E. Fitzpatrick announced.
Merwin Marc Snyder, 64, formerly of Egg Harbor Township, New Jersey, is charged by indictment with one count of conspiracy, three counts of smuggling of misbranded drugs, one count of receipt and delivery of misbranded drugs, four counts of misbranding by dispensing prescription drugs without a valid prescription, four counts of introducing misbranded drugs into interstate commerce. He is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court. He will then be arraigned before U.S. District Judge Noel L. Hillman.
Snyder was located in China’s Jiangsu Sheng Province earlier in the month and deported back to the United States to face the pending charges. He was indicted by a federal grand jury in Camden on Dec. 9, 2015.
According to documents filed in this case and statements made in court:
The U.S. Food and Drug Administration (FDA) is responsible for protecting the health and safety of the American public by enforcing the Federal Food, Drug, and Cosmetic Act (FDCA), a law intended to assure that drugs are safe, effective, and bear accurate labeling containing all required information. The FDA regulates the manufacture, labeling, and distribution of all drugs shipped or received in interstate commerce.
Between May 7, 2010, through July 25, 2013, Snyder allegedly received by mail from India various parcels that were accompanied by incomplete or misleading U.S. Customs declarations. The parcels contained prescription drugs, including unapproved generics that contained the active ingredients in the popular brand-name drugs Viagra, Cialis, and Levitra, as well as unapproved Mifepristone and Misoprostol. Snyder then repackaged these wholesale quantities of drugs into smaller amounts and dispensed them to consumers. Snyder did not seek FDA approval to market these drugs nor was he licensed as a pharmacist in the State of New Jersey or otherwise authorized to prescribe or dispense prescription drugs. The parcels Snyder shipped through the U.S. Postal Service contained misbranded drugs that did not bear the FDA-approved labeling.
Snyder allegedly caused to be shipped 27 parcels addressed to him in Egg Harbor that contained more than 25,000 tablets of unapproved generic drugs containing Tadalifil (active ingredient in Cialis) and 28,000 tablets of Sildenafil Citrate (active ingredient in Viagra).
The conspiracy count carries a maximum potential penalty of up to five years in prison. The three counts of smuggling each carry a carry a maximum potential penalty of up to 20 years in prison; one count of receipt and delivery of misbranded drugs, four counts of misbranding by dispensing prescription drugs without a valid prescription, four counts of introducing misbranded drugs into interstate commerce each carry a maximum potential penalty of up to three years in prison. All counts carry a fine of up to $250,000 or twice the gross pecuniary gain or loss.
Acting U.S. Attorney Fitzpatrick credited special agents with Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola in Newark, New Jersey; special agents of the Food and Drug Administration, under the direction of Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations’ Metro Washington Field Office; and postal inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge John Walker, Philadelphia Division, with the investigation leading to the indictment.
The government is represented by Special Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Defense counsel: Lisa Lewis Esq., Camden
Five Admit Robbing the Amarillo Education Credit UnionRead the Press Release
AMARILLO, Texas — Five defendants appeared in federal court and admitted robbing the Education Credit Union in Amarillo, Texas on September 23, 2016, announced U.S. Attorney John Parker of the Northern District of Texas.
Leonard Jovon Coulter, 29, and Raul Garcia, 28, each pleaded guilty to one count of credit union robbery, and one count of using and carrying a firearm during and in relation to a crime of violence. The robbery count carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. The firearms offense carries a mandatory seven-year penalty and a $250,000 fine. Sentencing for Coulter and Garcia is set for July 11, 2017.
Richard Charles Cunningham, Jr., 39, and Desire Valverde, 23, also each pleaded guilty to one count of credit union robbery. Sentencing for Cunningham is set for July 10, 2017. Sentencing for Valverde is set for July 11, 2017.
Keli Edwards, 35, pleaded guilty to one count of misprision of a felony. This count carries a maximum statutory penalty of 3 years in federal prison and a $250,000 fine. Sentencing for Edwards is also set for July 10, 2017.
According to the plea documents, on September 23, 2016, Coulter and Cunningham Jr. entered the Education Credit Union located at 1801 FM 2381, Amarillo, Texas. Coulter approached the teller counter, pointed a firearm at the teller, and told the teller to give him all her money in the drawer. Coulter told the teller to not do or push anything or he would shoot her. The teller told Coulter the drawers were locked. Coulter jumped the counter, pressed the firearm in the teller’s back, and told the teller to hurry. Coulter got money out of the teller’s drawer, and then he demanded access to the vault. The teller stated she could not access the vault.
The manager was then ordered to come and open the vault. After Coulter took the money from the vault, the tellers and manager were ordered to the ground. Coulter and Cunningham exited the Credit Union with approximately $60,067.
The Federal Bureau of Investigation (FBI) and Potter County Sheriff’s office investigated the robbery. Agents learned through their investigation that Garcia was a get-a-way driver and planned this robbery with Coulter and Cunningham. Later, agents stopped Garcia in his pickup and located $5,020 in United States Currency packaged in Education Credit Union bank bands. Agents also recovered two firearms in Garcia’s vehicle, including the firearm Coulter used during the robbery.
Agents conducted a search warrant on Garcia’s residence. Agents located a backpack that had $23,890 in United States Currency, and some of the bills were packaged with Education Credit Union bank bands.
Later, FBI agents learned that Garcia and Coulter were involved in another Education Credit Union Robbery on May 25, 2016. Agents learned through their investigation that Valverde, an employee of Education Credit Union at the time, helped Garcia plan both robberies by providing Garcia information of how and when to commit each robbery. FBI agents discovered that Valverde was in contact with Garcia by phone during each robbery. On May 25, 2016, Valverde was working as a teller and gave Coulter money from her drawer. Garcia paid Valverde a portion of the money taken from the Education Credit Union robbery on May 25, 2016, for her help.
According to plea documents filed in Edwards’ case, Edwards was Coulter’s girlfriend and was watching out for law enforcement on September 23, 2016, when Coulter and Cunningham entered the Credit Union to commit the robbery. Edwards drove Cunningham away from the Credit Union after the robbery to Garcia’s vehicle. Cunningham, Coulter, and Garcia met at Edwards’ residence prior to the robbery and discussed committing the robbery.
The FBI, Amarillo Police Department, the Potter County District Attorney’s Office and the Potter County Sheriff’s Department investigated. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
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Federal Judge in Del Rio Sentences Man to 6 1/2 Years Imprisonment for Firearms Smuggling OperationRead the Press Release
In Del Rio today, United States District Judge Alia Moses sentenced 49–year-old ringleader Eduardo Hinojosa (aka “Lalo”), a U.S. Citizen residing in Piedras Negras, Mexico, to 78 months in federal prison for attempting to smuggle firearms and an assortment of ammunition from the U.S. into Mexico announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
In addition to the prison term, Judge Moses ordered Hinojosa to pay a $3,000 fine and to be placed on supervised release for a period of three years after completing his prison term.
On September 21, 2016, a federal jury convicted Hinojosa of four counts of aiding and abetting the smuggling of goods from the U.S. and one count of providing a firearm to a prohibited person. Evidence presented at trial revealed that Hinojosa and three Mexican citizens residing in Piedras Negras were involved in a firearms smuggling scheme for profit. Prior to jury selection, Hinojosa’s co-defendants 43-year-old Carlos Mendoza-Hernandez (aka “Pepo”) and 26–year-old Gily Ajin-Cordova pleaded guilty to one count of possession of a firearm by a prohibited person; and, 25-year-old Elizabeth Cervantes-Mateos pleaded guilty to one count of aiding and abetting the smuggling of goods from the U.S. All three were sentenced to one year in federal prison.
According to testimony and court records, on April 7, 2015, investigators observed Hinojosa loading ammunition and firearms into a vehicle at an Eagle Pass business owned by Mendoza’s family. Authorities subsequently seized a .243 caliber rifle, a 12-gauge shotgun and approximately 1,000 rounds of ammunition in various calibers from inside that vehicle. At the time of the seizure, authorities arrested the vehicle’s occupants--Cervantes and Ajin. Agents later observed defendants Hinojosa and Mendez unloading boxes into a storage facility in Eagle Pass. Subsequently, authorities arrested Hinojosa and Mendez and a consensual search of that storage facility revealed approximately 750 rounds of shotgun shells. Testimony also revealed that the defendants were aware that the firearms and ammunition were ultimately destined for Mexico and that the defendants were aware that it is unlawful to export those items without a license.
The case was investigated by Homeland Security Investigations with assistance from U.S. Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms and Explosives; and, the Maverick County Sheriff’s Office. Assistant U.S. Attorneys Lewis Thomas and Dan Lee prosecuted this case on behalf of the Government.
Essex County, New Jersey, Man Admits Defrauding Investors Out of Hundreds of Thousands of DollarsRead the Press Release
NEWARK, N.J. – A North Caldwell, New Jersey, man today admitted fraudulently using over $550,000 in investment funds that he solicited to purchase and sell consumer products in bulk, Acting U.S. Attorney William E. Fitzpatrick announced.
Michael Esposito, 45, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of wire fraud.
According to the documents filed in this case and statements made in court:
From August 2013 through February 2017, Esposito was the president of numerous entities that purported to purchase consumer products in bulk from manufacturers for resale to wholesalers and retailers. Esposito admitted that he told potential investors that he could purchase consumer goods – such as soda and bottled water – at substantial discounts, and that he had buyers ready to purchase the products at a significant profit.
In return for providing the funds necessary to purchase the products, Esposito promised the victim investors a large percentage of the profits. However, Esposito admitted that he used the funds for his personal expenses and to pay other investors in order to make it appear the money was properly used. Esposito admitted that his actions resulted in losses of more than $550,000.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is set for July 20, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked investigators with the Florida Office of Financial Regulation for their assistance.
The government is represented by Assistant U.S. Attorneys Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit and Sarah Devlin of the Asset Forfeiture Unit in Newark.
Defense counsel: Brooke M. Barnett Esq., Newark
Deutsche Bank’s London Subsidiary Sentenced for Manipulation of LIBORRead the Press Release
DB Group Services (UK) Limited (DBGS), a wholly owned subsidiary of Deutsche Bank AG (Deutsche Bank), was sentenced today for its role in manipulating London Interbank Offered Rates (LIBOR) for U.S. Dollar and several other currencies. LIBOR is a leading benchmark used in financial products and transactions around the world.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office made the announcement.
DBGS was sentenced by U.S. District Judge Stefan R. Underhill of the District of Connecticut. DBGS pleaded guilty on April 23, 2015, to one count of wire fraud for its role in manipulating LIBOR benchmark interest rates. DBGS signed a plea agreement with the government in which it admitted its criminal conduct and agreed to pay a $150 million fine, which the court accepted in imposing today’s sentence. In addition, Deutsche Bank, the Frankfurt, Germany-based parent company of DBGS, entered into a deferred prosecution agreement (DPA) with the Justice Department requiring Deutsche Bank to pay an additional $625 million criminal penalty, to admit and accept responsibility for its misconduct and to continue cooperating with the Justice Department in its ongoing investigation. The DPA also requires Deutsche Bank to retain a corporate monitor for three years.
Together with approximately $1.744 billion in regulatory penalties and disgorgement – $800 million as a result of a Commodity Futures Trading Commission (CFTC) action, $600 million as a result of a New York Department of Financial Services (DFS) action and $344 million as a result of a U.K. Financial Conduct Authority (FCA) action – the Justice Department’s criminal penalties bring the total amount of penalties to approximately $2.519 billion.
According to the plea agreement, from at least 2003 through early 2010, numerous Deutsche Bank derivatives traders – whose compensation was directly connected to their success in trading financial products tied to LIBOR – engaged in efforts, many times in conjunction with other banks, to move these benchmark rates in a direction favorable to their trading positions. Specifically, the derivatives traders requested that LIBOR submitters at Deutsche Bank and other banks submit contributions favorable to trading positions, rather than the accurate rates that complied with the definition of LIBOR. Through these schemes, Deutsche Bank defrauded counterparties who were unaware of the manipulation. Deutsche Bank admitted that its fraudulent LIBOR submissions did, in fact, affect the resulting LIBOR fix on multiple occasions.
The FBI’s Washington Field Office is conducting the investigation. Trial Attorneys Alison Anderson and Richard Powers of the Criminal Division’s Fraud Section and Trial Attorney Michael Koenig of the Antitrust Division are prosecuting the case. The Criminal Division’s Office of International Affairs has provided assistance in this matter.
The investigation leading to these cases has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the CFTC’s Division of Enforcement referred this matter to the Justice Department and, along with the FCA, has played a major role in the investigation. The Justice Department is also grateful for the Securities and Exchange Commission’s significant role in the LIBOR investigation, as well as the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation.
Convicted Felon Sentenced on Drug and Firearm ChargesRead the Press Release
BOSTON – A Southbridge man was sentenced today in U.S. District Court in Worcester in connection with being a felon in possession of a firearm, distributing drugs and attempted money laundering.
Alehandros Medina, 25, was sentenced by U.S. District Court Judge Timothy S. Hillman to five years in prison and three years of supervised release. In October 2016, Medina pleaded guilty to distribution of cocaine, ketamine, MDMA (commonly referred to as ecstasy) and Methylone; being a felon in possession of a firearm; and attempted money laundering.
On several occasions between November 2014 and October 2015, Medina sold cocaine, MDMA, Methylone, and ketamine to an undercover federal agent, while on state probation for multiple charges of possession with intent to distribute controlled substances.
In August 2015, Medina traveled to Oregon and was stopped by police who confiscated approximately $22,000 from Medina that he intended to use to purchase marijuana. In October 2015, federal agents arrested Medina in Southbridge as he was delivering cocaine to an undercover agent. Later that day, agents seized cocaine and a loaded .38 caliber revolver from Medina’s residence.
Acting United States Attorney William D. Weinreb; Michal J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Southbridge Police Chief Shane Woodson made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office prosecuted the case.
Convicted Felon Sentenced to More Than Six Years for Possessing Firearms and AmmunitionRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Vaughn Matthews (25, St. Petersburg) to six years and six months in federal prison for possessing firearms in furtherance of a drug trafficking crime and for possessing firearms and ammunition as a convicted felon. He pleaded guilty on December 22, 2016.
According to court documents, law enforcement officers executed a search warrant at Matthews’s residence on March 23, 2016. During the search, officers recovered over 20 pounds of marijuana, 3 firearms, more than 50 rounds of assorted ammunition, and over $86,000 in cash. Further investigation revealed that Matthews had been working with individuals in California and had trafficked at least 50 packages of marijuana into Florida via the mail. As a previously convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the St. Petersburg Police Department, and the U.S. Postal Service. It was prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Christiansburg Pair Plead Guilty to Methamphetamine ChargesRead the Press Release
Roanoke, VIRGINIA – A pair of Christiansburg residents pled guilty yesterday in the United States District Court for the Western District of Virginia in Roanoke to Federal Drug conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Timothy Wayne Radford, 49 and Melissa Dawn Lytton, 45, each pled guilty yesterday to conspiracy charges. Radford pled guilty to one count of conspiracy to possess with the intent to distribute and to distribute 50 grams or more of methamphetamine. Lytton pled guilty to one count of conspiracy to possess with the intent to distribute and to distribute methamphetamine.
According to evidence presented at yesterday’s hearing by Assistant United States Attorney Ashley B. Neese, Radford and Lytton admitted today to being involved in a conspiracy to distribute methamphetamine since at least late 2015 and continuing through March 2016.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police and the Floyd County Sheriff’s Office. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Burlington Man Pleads Guilty to Sex TraffickingRead the Press Release
BOSTON – A Burlington man pleaded guilty yesterday in U.S. District Court in Boston to trafficking three women for sex and threatening them with violence.
“Sex trafficking is a deplorable crime which steals the dignity of young, vulnerable victims,” said Acting U.S. Attorney William D. Weinreb. “Individuals who seek to profit from the trafficking and abuse of others, and to enforce their will with violence, have no place walking the streets and preying on victims.”
“Barry Davis’ victims can never regain what was taken from them when they were forced into a life of sexual slavery,” said Special Agent in Charge Matthew Etre of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Boston. “But they can perhaps take some small comfort in knowing Davis is facing a significant sentence for his crimes. HSI has a long history of victim-centric support and will continue to provide victim assistance to these women. Further, HSI is proud of the work we’ve jointly accomplished in this matter with our law enforcement partners across New England.”
“I want to commend the work of the Boston Police Human Trafficking Unit and all the law enforcement agencies involved with this case,” said Boston Police Commissioner William Evans. “Together we are committed to ending the sexual exploitation of vulnerable young women who are victimized by predators like this defendant. Prostitution is not a victimless crime. We will continue to target those who engage in this type of criminal behavior.”
“The United States Marshals Service is dedicated to assisting our law enforcement partners with bringing violent offenders like Barry Davis to justice,” said U.S. Marshal John Gibbons for the District of Massachusetts. “We remain committed to doing our part to support victims of these heinous crimes.”
Barry Davis, 38, pleaded guilty to three counts of sex trafficking by force, fraud, and coercion and three counts of interstate transportation with intent to engage in prostitution. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for August 8, 2017.
In April 2015, Davis met a young woman at a driving instructing class and enticed her to leave with him by promising to take care of her and provide a steady supply of heroin. Davis drove her to New Jersey, rented a hotel room, posted an advertisement for sex with her online, and took the money she made having sex with men who responded to the ad. Davis used heroin to coerce the woman, and punched her in the head and threatened her with further harm if she did not follow his rules and prostitute for him.
In August 2015, Davis perpetrated a similar scheme after he picked up two young women from a heroin detox center and drove them to Connecticut. There, he rented a hotel room, posted online advertisements for sex with the women, and took the money they made having sex with men who responded to the ads. Davis used heroin to coerce the women to prostitute for him. Davis also hit one of the women for breaking one of his prostitution rules and threatened to beat the other woman if she did not make enough money prostituting for him.
Each charge of sex trafficking by force, fraud, and coercion provides for a mandatory minimum sentence of 15 years and up to a lifetime in prison, five years of supervised release, and a fine of $250,000. Each charge of interstate transportation of an individual with the intent to engage in prostitution provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. If the Court accepts the plea agreement, Davis will be sentenced to between 15 and 20 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Weinreb, HSI SAC Etre, Boston Police Commissioner Evans, and U.S. Marshal Gibbons, made the announcement today. Assistance was provided by the Boston Police Department’s Human Trafficking Unit and the Lawrence, Salem, Burlington, Milford (Conn.), and Franklin Township (NJ) Police Departments. Assistant U.S. Attorneys Leah Foley and Kelly Lawrence of Weinreb’s Civil Rights Enforcement Team are prosecuting the case.
Buffalo Man Pleads Guilty in Connection with Drug Trafficking Ring Linked to A Mexican Drug CartelRead 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 Bryant Hudson pleaded guilty to structuring transactions before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 10 years in prison and a $500,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that the defendant was charged in an indictment along with six others in connection with a sophisticated drug trafficking organization with ties to a Mexican drug cartel operating out of the Los Angeles, California area. The organization shipped drug packages to various states including New York, New Jersey, Illinois, and Colorado.
Hudson assisted in the depositing of drug proceeds in accounts at Bank of America branches in the Buffalo area in order to move the proceeds from Buffalo to California and avoid detection. The money was deposited in amounts just under $10,000, a practice known as structuring. Deposits of $10,000 or more require the bank to report the transaction. There were also deposits in bank branches across the country made by other defendants. The total amount of money deposited in this fashion reached more than $10,000,000. Local deposits totaled over $1,000,000 and involved at least 120 transactions.
Hudson is the first to be convicted in this case. Charges are pending against the remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s 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; Immigration and Custom Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigations Division, under the direction of Kathy A. Enstrom, Acting Special Agent-in-Charge, New York Field Office. Additional assistance was provided by ICE-HSI in Los Angeles, California.
Sentencing is scheduled for July 11, 2017, at 10:00 a.m. before Judge Wolford.
Bixby and Glenpool Men Sentenced to 60 Months for ArsonRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that GARRETT LEE RAYNOR, age 19, of Bixby, Oklahoma, and JOSHUA SCOTT COPPEDGE, age 19, of Glenpool, Oklahoma, were each sentenced to 60 months imprisonment and 1 year of supervised release for one count of ARSON, in violation of Title 18, United States Code, Sections 844(f)(1) and 2.
The Indictment alleged that on or about August 23, 2016, within the Eastern District of Oklahoma, the defendants, maliciously damaged, destroyed, and attempted to damage and destroy, by means of fire, a 2010 Bluebird school bus, owned by the Twin Hills School District, an institution receiving Federal financial assistance.
The charges arose from an investigation by the Okmulgee County Sherriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. COPPEDGE will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served. RAYNOR will remain in an in-patient treatment facility until April 27, 2017, and then will report to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.
Bethel Man Pleads Guilty to Heroin and Cocaine Distribution Charge Stemming from 2 Overdose DeathsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PAUL MIGNANI, 51, of Bethel, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of possession with intent to distribute, and distribution of, heroin and cocaine.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on July 31, 2016, Bethel Police responded to a residence in Bethel on report of a possible heroin overdose and found an unresponsive 54-year-old female. The victim was pronounced deceased shortly thereafter. The investigation revealed that MIGNANI distributed heroin, fentanyl and cocaine that was consumed by the victim shortly before her death.
On December 11, 2016, members of the Bethel Police and medical personnel responded to a report of an unresponsive 25-year old female at MIGNANI’s residence. The victim was pronounced deceased. Investigators seized three empty heroin folds from the victim’s purse, and six empty heroin folds from the victim’s jacket pocket.
On December 12, 2016, investigators conducted a court-authorized search of MIGNANI’s residence and seized three plastic bags of cocaine, each of which contained approximately one gram of the drug. Investigators also seized $1,531 in cash and multiple cellphones from the residence. MIGNANI was arrested on state charges on that date.
The investigation revealed that MIGNANI distributed heroin and cocaine to the victim shortly before her death.
MIGNANI has been detained since his arrest on a federal criminal complaint on December 28, 2016.
Judge Meyer scheduled sentencing for June 20, 2017, at which time MIGNANI faces a maximum term of imprisonment of 20 years.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the Bethel Police Department, with assistance from the States Attorney’s Office for the Judicial District of Danbury. The DEA Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Anthony Vita Pleads Guilty to Distributing Fatal Fentanyl-Laced Heroin to Pregnant WomanRead the Press Release
SYRACUSE, NEW YORK - Anthony Vita, 37, of Syracuse, New York, pled guilty today to distributing a controlled substance, announced United States Attorney Richard S. Hartunian and James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (DEA).
Sentencing is scheduled for July 31, 2017 at 11:00 am before Senior United States District Judge Norman A. Mordue. According to the terms of the plea agreement, Vita will be sentenced to 15 years of imprisonment. He also faces a term of supervised release of between three years and life, a fine of up to $1,000,000, and a special assessment of $100.
As part of his guilty plea today, Vita admitted that on November 7, 2015, he sold seven bags of heroin laced with fentanyl to a 24-year-old woman who was five months pregnant. Before the sale, the victim told Vita that she had not used heroin in five months and asked him to provide her with a syringe. As requested, he delivered a syringe and seven bags of the heroin/fentanyl mixture. She injected the mixture and died due to acute opiate intoxication.
“Today the defendant accepted responsibility for killing a young woman by selling her heroin laced with fentanyl. Thanks to the collaborative investigation by local police, the Onondaga County Sheriff’s Department and the DEA, the defendant is being held accountable, but the victim’s family continues to endure their unimaginable loss of a 24-year-old woman who was five months pregnant and struggling to overcome her addiction. We will continue to work tirelessly with our law enforcement partners to hold drug dealers accountable for fatal overdoses,” said United States Attorney Hartunian.
DEA Special Agent in Charge James J. Hunt stated, “There is no happy ending to this investigation, but justice has been served. DEA and our law enforcement partners used every resource to identify, track and arrest the defendant, who has pled guilty and will spend the next fifteen years behind bars.”
The case was investigated by the U.S. Drug Enforcement Administration (DEA), Syracuse Resident Office (with Assistance from DEA Norfolk, Virginia Resident Office), the Onondaga County Sheriff’s Department and the Town of Camillus (New York) Police Department, and was prosecuted by Assistant U.S. Attorneys Carla Freedman and Tamara Thomson.
Another KC Man Indicted for Kidnapping Resulting in DeathRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a second Kansas City, Mo., man was indicted by a federal grand jury today on charges related to the kidnapping and murder of another man.
Raynal King, 25, and Howard R. Ross, III, also known as “Lil’ Howard” and “Shooter,” 22, both of Kansas City, were charged in a six-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s superseding indictment replaces a Sept. 21, 2016, indictment and adds Ross as a defendant.
Today’s indictment alleges that King and Ross participated in a conspiracy to kidnap a victim identified in court documents as “J.P.” on Sept. 6, 2016. According to the affidavit, King and Ross began planning to commit a robbery a couple of days earlier. They allegedly kidnapped J.P. and took his 2014 Jeep Patriot. They attempted to access the victim’s bank account with his debit card at two bank ATM locations, the indictment says. At approximately 6:12 a.m., they allegedly shot J.P. and left him lying on the roadway near 135th and Holmes in Kansas City, Mo.
In addition to the criminal conspiracy, King and Ross are charged together in one count of kidnapping resulting in death, one count of using a firearm to commit murder in relation to the kidnapping, one count of carjacking resulting in death, one count of using a firearm to commit murder in relation to the carjacking and one count of being felons in possession of a firearm. King and Ross, both having been convicted of felony crimes, allegedly possessed a Springfield Armory .45-caliber pistol.
According to an affidavit filed in support of the original criminal complaint, J.P. was last known to be driving his black Jeep Patriot from a hospital, where he had been caring for a family member, towards his home sometime between 5 a.m. and 6 a.m. that day. Shortly after leaving the hospital, J.P. called his wife and asked her for the PIN to their debit card.
There were several failed attempts to use J.P.'s debit card at different ATMs that morning. According to the affidavit, King told investigators that he and Ross began talking about where they should drop off J.P., who remained conscious after having been shot. King told investigators that J.P. attempted to jump out of the vehicle and was shot at again. King, who was driving, slowed down the vehicle after J.P. jumped out. He looked in the rear view mirror and saw J.P. lying in the street then kept driving back to his residence.
Investigators obtained surveillance video from one of the ATMs that allegedly showed King driving J.P.'s vehicle shortly after 6 a.m. J.P. was in the passenger seat of the vehicle, according to the affidavit, with his arms straight out and palms on the dashboard. An unidentified person was in the back seat. King was also seen (driving a different vehicle) in surveillance video at the 7-Eleven at 8901 Wornall Road, Kansas City, Mo., the affidavit says, where more failed attempts had been made to use the debit card at an ATM inside the store about an hour later.
King was identified and located on Sept. 8, 2016. A Kansas City, Mo., police officer conducted a traffic stop and detained King, who has remained in federal custody since his arrest.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Amarillo Woman Pleads Guilty to Mail Fraud Stemming from a $400,000 Airline Travel SchemeRead the Press Release
AMARILLO, Texas — Ai Inthavong Lopez, 37, of Amarillo, Texas, appeared in federal court this morning before U.S. District Court Judge Sidney A. Fitzwater and pleaded guilty to one count of mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Lopez faces a maximum penalty of 20 years in federal prison and a $250,000 fine. Sentencing is set for July 11, 2017.
According to plea documents, from May 2014, and continuing through November 2015, Lopez participated in a scheme involving the sale of fictitious vouchers for future airline travel.
Specifically, Lopez, and persons acting at her direction, would telephonically contact customers in the United States who were falsely informed that they could purchase a voucher for either a round-trip domestic or international flights. Lopez claimed to customers that she was Stephanie Cancino, and that she received discounts on airline tickets through her employment.
Lopez would persuade some customers of her scheme, who did not know of the fraudulent nature of the scheme, to telephonically contact other customers to purchase airline vouchers for future travel. Customers who purchased vouchers would provide personal information, such as name, email address, phone number, and credit card information to Lopez. Lopez would receive money from customers via the United States Postal Service, PayPal, wire transfers, bank transfers, and credit card payments. Lopez, at times, would use the customer’s credit card to purchase other customers’ flight tickets.
To entice customers, Lopez would contact customers about vouchers for one-day sales or special promotions. Lopez knew actual airline tickets purchased by Lopez cost significantly more than the amount a customer paid to purchase the voucher. Lopez continued to solicit customers by promising vouchers below the market rate. Lopez would often have the customers purchase their airline tickets when they were stranded and Lopez would promise to reimburse the customer for the amount they spent. Several times during the course of this scheme, Lopez provided a check to customers to reimburse them for their loss, but the check would be returned to the customer by the bank due to insufficient funds. Lopez would then stop communication with the customer.
As a result of the scheme, Lopez’s false and fraudulent pretenses, representations, and promises fraudulently induced customers to issue monetary payments to Lopez, and for the benefit of Lopez, resulting in a total loss of approximately $401,955.06.
The Federal Bureau of Investigation and Amarillo Police Department investigated. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
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Albuquerque Woman Pleads Guilty to Federal Bank Robbery ChargesRead the Press Release
ALBUQUERQUE – Joleen Sedillo, 42, of Albuquerque, N.M., pled guilty this morning in federal court to bank robbery charges. Under the terms of her plea agreement, Sedillo will be sentenced within the range of 27 to 33 months in federal prison followed by a term of supervised release to be determined by the court.
Sedillo and co-defendants Abel Lopez, 31, and William Colbert, 38, both of Albuquerque, were arrested in July 2016, on a criminal complaint charging them with bank robbery charges. The criminal complaint alleges that Sedillo, Lopez and Colbert robbed Bank of the West branches located at 5401 Central Ave. NE and 7900 Wyoming Blvd. NE on June 22, 2016 and June 27, 2016, respectively, and attempted to rob the Bank of the West branch located at 5228 Central Ave. SW on July 14, 2016.
Sedillo, Lopez and Colbert were indicted on Aug. 10, 2016, and charged with conspiracy to commit bank robbery in June and July 2016; bank robbery on June 22, 2016 and June 27, 2016; and attempted bank robbery on July 14, 2016. According to the indictment, the three defendants committed the crimes in Bernalillo County, N.M.
During this morning’s proceedings, Sedillo pled guilty to conspiracy to commit bank robbery and to aiding and abetting an attempted bank robbery. In entering the guilty plea, Sedillo admitted driving Lopez and Colbert to the Bank of the West branches they planned to rob. Sedillo further admitted that on July 14, 2016, she drove her co-defendants away from a branch of Bank of the West branch that Colbert attempted to rob. She also admitted concealing the clothing Colbert wore during the attempted robbery. A sentencing hearing for Sedillo has yet to be scheduled.
Lopez and Colbert have entered pleas of not guilty to the charges against them. Both remain in custody pending trial, which has yet to be scheduled. Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
3 Canadians and their Company Charged with Conspiring to Sell Foreign-Made Drugs to Western Pennsylvania PharmacistsRead the Press Release
PITTSBURGH – Three Canadian residents and their company have been charged by Information in Pittsburgh with conspiring to distribute wholesale quantities of misbranded prescription drugs made for the foreign market and money laundering, Acting United States Attorney Soo C. Song announced today.
According to the Information, Tony Lee, Billy Lee and Tarn Uppal, all Vancouver, B.C. residents, operated Quantum Solutions, SRL (hereafter, Quantum), a company registered in Barbados with offices in the Vancouver, British Columbia area. Quantum purchased prescription drugs made for foreign markets and sold wholesale quantities to three pharmacists in Western Pennsylvania. Quantum purchased the drugs from suppliers located in Turkey, Great Britain and other countries. The defendants arranged for these misbranded drugs to be sent to a re-shipper in the United Kingdom (UK). The UK re-shipper was instructed to unpack the drugs, repack them in several small packages, put misleading labeling and shipping documentation on them and understate the dollar value of the contents in order to create the appearance to U.S. Customs and Border Protection that the drugs were health care products for the personal use of the addressee. The small packages were sent to Washington State and New York State re-shippers known to the U.S. Attorney, where they were once again unpacked and repacked for delivery in the United States. Wholesale quantities of these misbranded drugs intended for use in foreign markets were purchased by three pharmacists in Western Pennsylvania. The wire transfers, checks and credit card payments from the pharmacists traveled from Western Pennsylvania to Canada and Barbados. None of the re-shippers were licensed in the United States to conduct this business. None of the prescription drugs met FDA approval because they were made and labeled for use outside of the United States. The information against Quantum seeks forfeiture of $4,235,000.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The United States Food and Drug Administration-Office of Criminal Investigations and the Internal Revenue Service-Criminal Investigations conducted the investigation leading to the filing of these Informations.
A criminal Information is an accusation.
A defendant is presumed innocent unless and until proven guilty. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.
27 March 2017
Waldorf Man Sentenced to Eight Years in Federal Prison for Committing Two Bank Robberies in Less Than a WeekRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Joshua Francisco Miranda, age 29, of Waldorf, Maryland, today to eight years in prison, followed by five years of supervised release, for committing two bank robberies in March 2016. Judge Chuang also entered an order requiring Miranda to pay restitution of $7,800.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement, on March 23 and March 29, 2016, Miranda robbed banks in Accokeek and Fort Washington, Maryland, respectively. In each robbery Miranda entered the bank and gave the teller a note demanding $5,000. The notes also threatened that Miranda had a bomb which he would detonate if the teller did not comply with his demand. Surveillance footage and witness testimony showed that in each robbery Miranda had a wire coming out of one of his shirt sleeves. Miranda stole a total of $7,800 from the two banks. At the time of these robberies, Miranda was on parole and probation for three previous state robbery convictions.
United States Attorney Rod J. Rosenstein commended the FBI, and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas M. Sullivan, who prosecuted the case.
VR Labs Principals Charged with Scheme to Defraud Lee County of Millions in Grant Program FundsRead the Press Release
Fort Myers, FL – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Kay F. Gow (66, Naples), Robert T. Gow (75, Naples), and John G. Williams, Jr. (65, Virginia Beach, VA) with conspiracy to commit wire fraud and money laundering, wire fraud, and illegal monetary transactions. If convicted on all counts, the Gows each face a maximum penalty of 45 years in federal prison, and Williams faces a maximum penalty of 25 years in federal prison. The indictment also notifies the defendants that the United States intends to forfeit over $5.1 million, that is alleged to be traceable proceeds of the offenses. All three individuals will make their initial appearances today at 3:00 p.m. before United States Magistrate Judge Carol Mirando.
According to the indictment, , the Gows owned and controlled multiple entities, including HerbalScience Group, LLC and HerbalScience Singapore Pte, Ltd. In 2010, the Gows formed VR Laboratories, LLC to apply for a $5 million grant from Lee County through the Financial Incentives for Recruiting Strategic Targets (“FIRST”) program, which consisted of taxpayer funds set aside by the county to bring economic development projects to the Ft. Myers area. In seeking the award, the Gows made numerous false and fraudulent representations to various individuals and government entities about their financial success and that of HerbalScience and VR Labs, including that VR Labs was poised to become a leading global formulator and manufacturer of botanical pharmaceuticals. Ultimately, Lee County awarded VR Labs $5 million in FIRST incentive program funds to build a manufacturing facility that the Gows had claimed would bring hundreds of high-paying jobs and economic growth to Lee County.Once VR Labs executed an agreement with Lee County, Williams, a long-time friend of the Gows, registered a fictitious name, “Williams Specialty Bottling Equipment,” with the Florida Secretary of State. The Gows then represented that Williams would provide the bottling line for the manufacturing facility when he had no such experience or expertise. Williams used false and fraudulent invoices for work and services allegedly performed on the bottling line to make demands for payment and, once paid, kicked back a substantial portion of the funds to VR Labs and the Gows. The Gows then used Williams’s false and fraudulent invoices to justify requests to Lee County for the payment of the grant money. Once VR Labs received the grant funds, the Gows fraudulently transferred those funds to entities they owned and controlled, and ultimately to themselves, by disguising the transfers as fees, salaries, expenses, and other items. They also tried to conceal the source of the kickbacks through the creation of fictitious entities and documents. Ultimately, Lee County disbursed approximately $4.7 million in FIRST incentive grant funds to VR Labs, but the manufacturing facility was never completed or operational.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Josephine W. Thomas.
Two Sentenced in Robbery at Bank in Stilwell, Kan.Read the Press Release
KANSAS CITY, KAN. – Jacob L. Smith, 19, Kansas City, Kan., was sentenced Monday to 300 months in federal prison for a bank robbery in which he shot at law enforcement officers during a high-speed chase, U.S. Attorney Tom Beall said. Co-defendant Danille Morris, 27, Kansas City, Kan., whose 19-month child was with her in the getaway car, was sentenced to 200 months.
Smith pleaded guilty to one count of bank robbery and one count of brandishing a firearm. Morris pleaded guilty to one count of bank robbery, one count of brandishing a firearm and one count of unlawfully possessing a firearm following a felony conviction.
In his plea, Smith admitted that on March 9, 2016, he and co-defendant Gary Jordan, 40, Kansas City, Kan., brandished handguns when they entered the First National Bank at 7460 W. 199th Street in Stilwell, Kan. They held tellers at gunpoint before fleeing with cash stuffed in a backpack. Jordan took the wheel of the getaway car.
During the next 25 minutes, the robbers were pursued by the Kansas Highway Patrol, the Leawood Police Department and other law enforcement agencies as they fled across the Kansas/Missouri state line. During the chase, Smith fired at officers six times from the car. After the car overturned on a sharp turn, the defendants were arrested. Throughout the chase, Morris and her 19-month-old child were in the car.
Beall commended all the agencies that assisted in the investigation including the FBI, the Johnson County Sheriff’s Office, the Kansas Highway Patrol, the Leawood Police Department, the Kansas City, Kan., Police Department and the Kansas City, Mo., Police Department, as well as the prosecutor, Assistant U.S. Attorney Chris Oakley.
Two Sentenced in Child Sex Trafficking ConspiracyRead the Press Release
FORT WORTH, Texas — Audry Lane, a/k/a “Spud,” 29 and Alvin Lane, a/k/a “Spank,” 32, have been sentenced for their roles in a child sex trafficking conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Audry Lane, appeared before U.S. District Judge Reed C. O’Connor this morning and was sentenced to 280 months in federal prison and a lifetime of supervised release. He pleaded guilty to one count of conspiracy to engage in sex trafficking of children in November 2016.
Alvin Lane, appeared before U.S. District Judge Reed C. O’Connor last week and was sentenced to 166 months in federal prison. He also pleaded guilty to one count of conspiracy to engage in sex trafficking of children in October 2016.
Both defendants will be required to register as a sex offender.
According to documents filed in the case, in November 2015, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) learned that a 16-year-old runaway, Jane Doe 1, was being trafficked by a group of people in Fort Worth, Texas; that group included the defendants. The investigation revealed that from approximately October 1, 2013, through April 16, 2016, the members of this group facilitated the commercial sex acts of several minor and adult females.
Audry Lane and Alvin Lane, along with co-conspirators Diwone Nobles, Deon Bonner, Chad Johnson, Katelyn Ward and Stanley Johnson, acted as pimps for the girls and women they trafficked. They instructed them on how much to charge and they kept proceeds from transactions. They also provided the girls and women with condoms, cellular phones and hotel rooms. Some of the member of the group bought and sold the girls and women they were trafficking amongst themselves.
To locate commercial sex customers, Nobles, Bonner, Chad Johnson, Stanley Johnson, Katelyn Ward, Audry Lane and Alvin Lane facilitated the placement of advertisements on various commercial websites, including Backpage.com. In many instances, rather than placing the Backpage.com advertisement themselves, co-conspirators and sisters Serrah Arnold and/or Jessica Arnold, who acted as “bottom girls,” were told to post the advertisements using Backpage.com accounts belonging to the Arnolds.
For instance, on approximately June 1, 2013, 17-year-old Jane Doe 4 was introduced to Audry Lane, Serrah and Jessica Arnold, and Alvin Lane by a family friend of the Arnolds, co-defendant Katelyn Ward. Ward asked the Lanes and Arnolds to teach Jane Doe 4 how to engage in commercial sex acts. Serrah and Jessica Arnold explained to Jane Doe 4 about Backpage.com and how to talk to commercial sex customers. Ward, along with Audry Lane, and later Alvin Lane, acted as Jane Doe 4’s pimp at various times between 2013 and 2015. Audry Lane knew she was 17 when he began facilitating her commercial sex acts, and he kept the proceeds she earned. Various members of the group posted Jane Doe 4 on Backpage.com and facilitated her commercial sex acts.
On approximately October 10, 2015, friends Deon Bonner and Stanley Johnson met 17-year-old Jane Doe 2 and her 16-year-old friend Jane Doe 1 in Fort Worth. They took the girls to a motel on Meacham Street in Fort Worth. Shortly thereafter, Stanley Johnson told Jane Doe 2 that he wanted her to engage in commercial sex acts, and he sought help from Audry Lane and Alvin Lane to post commercial sex ads for her on Backpage.com. Stanley Johnson told Jane Doe 2 how much to charge and he bought condoms for her; he also kept the money she made from engaging in commercial sex acts.
According to documents filed in the case, one adult, female victim engaged in commercial sex acts at the direction of Nobles, Chad Johnson, Audry Lane, and Serrah Arnold. While that victim worked at Audry Lane’s direction, he would have Serrah Arnold, his “bottom girl,” supervise the victim and take the money she received. Nobles, Johnson and Lane all used force, fraud and/or coercion to cause the victim to engage in commercial sex acts.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Fort Worth Police Department investigated. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
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Rochester Man Sentenced to Life in Prison Plus Five Years for Murder and Narcotics and Firearms OffensesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Damion Colabatistto, 40, of Rochester, NY, having been convicted following a jury trial of murder, conspiracy to distribute cocaine, crack cocaine, and heroin, and the use of firearms in furtherance of a drug conspiracy, was sentenced to life in prison plus five years by Chief U.S. District Judge Frank P. Geraci. Jr.
Assistant U.S. Attorneys Everardo A. Rodriguez and Melissa M. Marangola, who handled the prosecution of the case, stated that on July 26, 2009, Colabatistto, and his former brother-in-law and friend, Angelo Ocasio, went to 137 Cameron Street looking to kill a rival drug dealer with whom Colabatistto and another co-conspirator had fought the night before. When they arrived at the house, Colabatistto and Ocasio shot and killed Meosha Harmon when she came to the upstairs window of the residence. The two mistakenly believed that Ms. Harmon was the rival drug dealer.
Angelo Ocasio, was also convicted following a jury trial in connection with the shooting of Meosha Harmon and of the underlying drug trafficking conspiracy. Ocasio was also sentenced to life in prison.
During Colabatistto’s trial, the government’s evidence established that one of the two guns used to murder Meosha Harmon was also used to murder Jose Troche on January 14, 2010, outside his house at 510 Augustine Street in Rochester. Jose Troche was a member of the drug distribution conspiracy along with Colabatistto and Ocasio. The drug conspiracy was headed by James Kendrick and his brother Pablo “Paul” Plaza. Troche was murdered because Kendrick and Plaza feared that Troche would cooperate against Kendrick in an ongoing narcotics prosecution. Colabatistto participated in the planning of the Troche murder and was the getaway driver when Paul Plaza shot Troche on the morning of January 14, 2010.
The drug conspiracy to which Colabatistto and Ocasio belonged was led by Kendrick and Plaza, and it was a large, long-term, and very violent drug distribution group. The group committed multiple beatings, shootings, and murders to protect their drug operations and to retaliate against those who posed a danger to the conspiracy, including disloyal workers and rival drug dealers.
James Kendrick and Paul Plaza were tried in a separate, seven-week trial and were each found guilty of the drug trafficking conspiracy and of several firearms offenses, including offenses relating to the murder of Jose Troche. Kendrick and Plaza were also found guilty of the murder of Francisco Santos in October 1998. Santos’ body was found in May 1999 buried on the Cattaraugus Indian Reservation in Erie County, NY. James Kendrick was also found guilty of the murder of Ryan Cooper in the spring of 1999. Cooper’s remains have never been found. Like Jose Troche, both Santos and Cooper (who was a cousin of Kendrick’s and Plaza’s) were murdered because Kendrick and Plaza believed they were disloyal members of the conspiracy who had cooperated with the police or were planning to do so.
Paul Plaza and James Kendrick have also been sentenced to life in prison.
Damion Colabatistto’s conviction is the culmination of an investigation that commenced in 2010. As a result of the investigation and resulting prosecutions, four murders (Francisco Santos in 1998, Ryan Cooper in 1999, Meosha Harmon in 2009 and Jose Troche in 2010) have been solved and the responsible murderers have been brought to justice. Altogether, 11 co-conspirators have been convicted in connection with the underlying drug distribution conspiracy and/or illegal firearms possession, and murders committed in furtherance of the conspiracy.
The conviction of Colabatistto and of his co-conspirators is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; and the Rochester Police Department, under the direction of Chief Michael Ciminelli.Roanoke Woman Sentenced on Federal Drug ChargeRead the Press Release
Roanoke, VIRGINIA – A Roanoke woman, who conspired with others to distribute cocaine, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Tiana Short, 21, of Roanoke, previously pled guilty to one count of conspiracy to distribute cocaine. Today in District Court, Short was sentenced to 44 months in federal prison.
Previously, co-conspirators in the case, Marvis Maurice Johnson was sentenced to 112 months in federal prison. Terrance Donald Jackson was sentenced to 151 months in prison and Lashantae Shunmore Keeling was sentenced to 20 months in prison.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roanoke County Police Department. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Raleigh Man Sentenced for Conspiracy to Export Defense Articles (Firearms)Read the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, Senior United States District Judge W. Earl Britt sentenced ALHAJI BOYE, 46, of Raleigh to 9 months of imprisonment followed by 3 years of supervised release.
BOYE pled guilty on October 31, 2016 to Conspiracy to Export Defense Articles (Firearms) from the United States from January 1, 2014 to June 21, 2016.
In 2012, with the intention of bringing political and social change to The Gambia, Gambian-American citizens and others joined a conspiracy entitled, The Gambia Freedom League. The group hoped to take over the country, gain support from internal allies, and bring about regime change. The primary goal was to overthrow the Gambian President Yahya Jammeh who had been in control of Gambia since his own nonviolent coup in 1994 and whose rule had been marred by accusations of years of human rights violations.
The conspiracy included directives for certain individuals to purchase firearms, others to ship them to The Gambia in 55-gallon barrels concealed among secondhand clothing, and others to travel and physically engage in the coup itself. BOYE’S role was to purchase firearms and ammunition.
On December 30, 2014, members of the armed conspiracy attempted to violently breach the door of the State House in Gambia. The attempt failed and many of the conspirators died as a result of the ensuing gun battle. Following the assault, the Gambian military recovered at least 35 firearms, assault gear, vehicles, and 55-gallon barrels.
On December 31, 2014, a member of The Gambia Freedom League returned to the United States and was interviewed by the Federal Bureau of Investigation (FBI). With the information received from the interview, the FBI initiated their investigation. The Investigation revealed bank records displaying that on August 25, 2014, $7,000 had been wired to BOYE in Raleigh. On August 26, 2014, BOYE had purchased two AK-47 style assault rifles, as well as 7,000 rounds of ammunition, and 98 AK-47 magazines. On September 5, 2014, BOYE also purchased four Diamondback rifles.
In early 2015, following the failed coup, FBI agents traveled to The Gambia, inventoried, and photographed the 35 firearms seized by the Gambian government. Five of those firearms matched serial numbers on the firearms purchased by BOYE.
President Jammeh was ultimately defeated in a 2016 democratic election. He initially conceded defeat, but then refused to recognize the results; however, on January 21, 2017, Jammeh relented to the external pressures applied by the United Nations and the African Union and he departed the country.
This criminal investigation of this case was conducted by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Jason Kellhofer prosecuted the case on behalf of the government.
Putnam County felon sentenced to federal prison for gun crimeRead the Press Release
HUNTINGTON, W.Va. – A Putnam County man was sentenced today to a year and a half in federal prison for a gun charge, announced United States Attorney Carol Casto. Troy Walter Simpson, 39, of Liberty, previously pleaded guilty to being a felon in possession of a firearm.
On December 15, 2014, law enforcement went to interview Simpson at his residence located at 198 Fisher Ridge Road in Liberty. Law enforcement had received a report that Simpson had multiple firearms in his residence. When officers spoke with Simpson, he admitted having the guns and gave permission to enter his residence to retrieve them. Officers subsequently located and seized a Marlin Model 30AS, .30-30 caliber rifle and a Harrington & Richardson, Topper Model shotgun. Simpson was prohibited from possessing any firearm under federal law because of a 2007 felony conviction in Putnam County Circuit Court for conspiracy to distribute marijuana.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Putnam County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Postal Service Employee Indicted After Faking Cancer in Order to Work from Home and Claim Hundreds of Hours of Sick LeaveRead the Press Release
DENVER – Caroline Zarate Boyle, age 59, of Highlands Ranch, Colorado, was indicted last week for using a forged writing to defraud the United States, Acting U.S. Attorney Bob Troyer and U.S. Postal Service Office of Inspector General Special Agent in Charge (USPS OIG) Scott Pierce announced. Boyle was indicted by a federal grand jury on March 16, 2017, and appeared before a federal magistrate judge last Friday morning (March 24, 2017) for arraignment. Earlier she was advised of her rights and the charges pending against her. She was then released on bond.
Boyle, a U.S. Postal Service employee, appeared before a Magistrate Judge in U.S. District Court earlier this month in response to a summons on a complaint alleging that she faked having cancer in order to claim over 100 days of sick leave and be allowed to work from home. She effectuated this fraud by forging several doctor notes regarding her alleged treatment and e-mailing them to her supervisor. However, employees from the offices of the doctors involved told special agents from the United States Postal Service, Office of Inspector General that the notes were fake and Boyle had never received treatment there. Some of the notes had inaccurate information, including misspellings of the name of the doctor she was allegedly seeing.
“The U.S. Postal Service Office of Inspector General is excellent at rooting out fraud and conducting thorough, righteous investigations,” said Acting U.S. Attorney Bob Troyer. “Thanks to them, Americans don’t have to tolerate this kind of cheating.”
Scott Pierce, USPS OIG Special Agent in Charge, Contract Fraud Investigations Division, said, “The American public expects employees of the U.S. Postal Service to be honest and forthright in their professional endeavors. For employees who choose otherwise, OIG special agents aggressively investigate allegations of criminal misconduct. In this instance, an employee fabricated medical documentation and other reports indicating she was being treated for a devastating disease, all of which were untrue. Fortunately, the actions of this employee are not indicative of the vast majority of U.S. Postal Service personnel who are dedicated, hard-working public servants.”
Boyle has been charged with a one count of presenting a forged writing to the United States with the intent to defraud. This charge carries a penalty of up to ten years in federal prison and up to a $250,000 fine.
This case is being investigated by the U.S. Postal Service’s Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Dan Burrows.
The charges contained in the complaint and indictment are allegations, and the defendant is presumed innocent until proven guilty.
Pair of Federal Inmates Sentenced for Possessing Prohibited ObjectsRead the Press Release
Abingdon, VIRGINIA – In separate hearings today, two inmates at United States Penitentiary at Lee County, Virginia in Jonesville received additional prison time for possessing prohibited objects inside the prison, Acting United States Attorney Rick A. Mountcastle announced.
Stanley Curtis Gillom, 31, previously pled guilty to one count of being an inmate of a federal prison in possession of a prohibited object, specifically marijuana. Today he was sentenced to 36 months of additional prison time.
In a separate hearing, Victor Lebron, 40, who previously pled guilty to being an inmate of a federal prison in possession of a prohibited object, specifically Suboxone film, was sentence to an additional 36 months of prison time.
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.
Pahrump Man Sentenced to Six Years for $35 Million Penny Stock Fraud SchemeRead the Press Release
Las Vegas, Nev. – One of the members involved in a penny stock fraud conspiracy that defrauded investors of over $35 million was sentenced today to 72 months in prison, announced Acting U.S. Attorney Steven W. Myhre.
Jeffrey Turino, 60, of Pahrump, was charged in an indictment with conspiracy to commit securities fraud and securities fraud in connection with a penny stock fraud scheme.
On Aug. 22, 2016, Turino pleaded guilty to conspiracy to commit securities fraud. According to the plea agreement, beginning in about 1997 continuing until about March 2010, Turino conspired with others to fraudulently issue, offer, and sell stock issued by corporate shells which they controlled, including World Wide Cannery and Distribution, Global Diamond Exchange, Inc., Equitable Mining Corporation, ODMA Oil and Gas, Inc. and Grand Entertainment and Music, Inc. Additionally, Turino and conspirators engaged in deceptive practices and issued misleading press releases to promote these companies and to give the impression that they were actively engaged in the importation and sale of products, when in truth, the companies were hollow shells that did not engage in regular or substantial business activities, did not produce any goods, services, or profits, and did not commercially import products as promoted in their news releases. According to the plea agreement, Turino and his conspirators fraudulently induced investors to purchase billions of unregistered shares of stock in the companies, which the conspirators had deceptively issued without requisite restrictions and disclosures. Although these penny stocks typically traded for less than one cent per share, the billions of shares of stock that the conspirators offered and sold in the public market yielded proceeds of more than $35 million, which was divided and distributed among Turino and the other conspirators.
In addition to the prison incarceration, U.S. District Judge Jennifer Dorsey sentenced Turino to five years of supervised release and ordered him to pay $35 million in restitution.
The case was investigated by the FBI and IRS-Criminal Investigation; and prosecuted by Assistant U.S. Attorney Kathryn Newman.
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Owner of Florida Telecommunications Company and His Co-Conspirator Sentenced to Prison for Involvement in International Cellphone Fraud SchemeRead the Press Release
A federal court in West Palm Beach, Florida, today sentenced the owner and operator of a Florida-based telecommunications company to 75 months in prison and his co-conspirator, a resident of Bronx, New York to 36 months in prison in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
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 Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Ramon Batista, 50, the owner and operator of Arymyx Inc., earlier pleaded guilty before Senior U.S. District Judge Daniel T.K. Hurley in the Southern District of Florida to one count of conspiracy to commit wire fraud; access device fraud; the use, production or possession of modified telecommunications instruments; and the use or possession of hardware or software configured to obtain telecommunications services, as well as one count of wire fraud and one count of aggravated identity theft. Batista’s co-conspirator, Farintong Calderon, 38, pleaded guilty to the same count of conspiracy.
According to the plea agreements, Batista, Calderon and their co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Batista and others also operated “call sites” in South Florida and elsewhere, where they would receive telecommunications identifying information associated with customers’ accounts from Calderon and additional co-conspirators, and use that data, as well as other software and hardware, to reprogram cellphones that they controlled. Batista and other co-conspirators would then transmit thousands of international calls over the internet to the call sites, where Batista and others would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
Batista admitted that his role in the scheme included selling fraudulent telecommunications services through Arymyx; acting as a “call site operator” which involved maintaining and re-programming cellphones through which he routed phone calls as part of the fraud scheme; and using and providing other co-conspirators with stolen or compromised telecommunications identifying information that was then employed to reprogram cellphones. Moreover, Batista admitted that he sent or received 1,132 “lines,” that is, combinations of telecommunications identifying numbers for specific devices or accounts associated with U.S. cellphone customers, and that the fraudulent use of these “lines” caused almost $800,000 in losses to Sprint and Verizon.
In addition, Calderon admitted that he was a “line supplier” based in New York City, who provided stolen or compromised telecommunications identifying information to Batista and other co-conspirators in Florida and elsewhere. Among other things, Calderon admitted that he sent or received about 1,408 “lines” and was personally responsible for more than $250,000 in losses resulting from the scheme.
Batista and Calderon are the third and fourth defendants to be sentenced in the case by Senior Judge Hurley. Edwin Fana was sentenced on Dec. 22, 2016, to 48 months in prison and Jose Santana was sentenced on Jan. 4, 2017, to 52 months in prison.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the Bureau’s ongoing effort to combat large-scale telecommunications fraud. Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida and Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
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.
Owner of Florida Telecommunications Company and His Co-Conspirator Sentenced to Prison for Involvement in International Cellphone Fraud SchemeRead the Press Release
A federal court in West Palm Beach, Florida, today sentenced the owner and operator of a Florida-based telecommunications company to 75 months in prison and his co-conspirator, a resident of Bronx, New York to 36 months in prison in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Ramon Batista, 50, the owner and operator of Arymyx Inc., earlier pleaded guilty before Senior U.S. District Judge Daniel T.K. Hurley in the Southern District of Florida to one count of conspiracy to commit wire fraud; access device fraud; the use, production or possession of modified telecommunications instruments; and the use or possession of hardware or software configured to obtain telecommunications services, as well as one count of wire fraud and one count of aggravated identity theft. Batista’s co-conspirator, Farintong Calderon, 38, pleaded guilty to the same count of conspiracy.
According to the plea agreements, Batista, Calderon and their co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Batista and others also operated “call sites” in South Florida and elsewhere, where they would receive telecommunications identifying information associated with customers’ accounts from Calderon and additional co-conspirators, and use that data, as well as other software and hardware, to reprogram cellphones that they controlled. Batista and other co-conspirators would then transmit thousands of international calls over the internet to the call sites, where Batista and others would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
Batista admitted that his role in the scheme included selling fraudulent telecommunications services through Arymyx; acting as a “call site operator” which involved maintaining and re-programming cellphones through which he routed phone calls as part of the fraud scheme; and using and providing other co-conspirators with stolen or compromised telecommunications identifying information that was then employed to reprogram cellphones. Moreover, Batista admitted that he sent or received 1,132 “lines,” that is, combinations of telecommunications identifying numbers for specific devices or accounts associated with U.S. cellphone customers, and that the fraudulent use of these “lines” caused almost $800,000 in losses to Sprint and Verizon.
In addition, Calderon admitted that he was a “line supplier” based in New York City, who provided stolen or compromised telecommunications identifying information to Batista and other co-conspirators in Florida and elsewhere. Among other things, Calderon admitted that he sent or received about 1,408 “lines” and was personally responsible for more than $250,000 in losses resulting from the scheme.
Batista and Calderon are the third and fourth defendants to be sentenced in the case by Senior Judge Hurley. Edwin Fana was sentenced on Dec. 22, 2016, to 48 months in prison and Jose Santana was sentenced on Jan. 4, 2017, to 52 months in prison.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the Bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida prosecuted the case.
North Carolina Return Preparers Indicted for False Tax ReturnsRead the Press Release
A federal grand jury sitting in Greensboro, North Carolina returned an indictment yesterday charging two Durham tax return preparers with conspiring to defraud the United States and preparing false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to the indictment, Keesha Frye owned and operated KEF Professional Tax Services, a Durham tax preparation business, where Maria Streater also worked as a return preparer. From 2012 through 2014, Frye and Streater allegedly falsified their clients’ tax returns by including fake and inflated sources of income to qualify for and maximize the earned income tax credit, and thereby increase the refunds claimed on the returns. Frye and Streater also allegedly filed false personal tax returns. Streater did not report the income she earned from KEF and Frye claimed false child care expenses.
An indictment merely alleges that crimes have been committed. The defendant are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Frye and Streater face a statutory maximum sentence of five years in prison for conspiracy and three years for each count of preparing false tax returns. They also face a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Anand Ramaswamy and Trial Attorney Nathan Brooks of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Man Sentenced for Role in Bank Fraud, ID Theft ConspiracyRead the Press Release
Lynchburg, VIRGINIA – A North Carolina man, who conspired with others to make money by cashing checks that had been stolen and altered, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg, Acting United States Attorney Rick A. Mountcastle announced.
Donald Hicklin, 39, of Charlotte, N.C., previously pled guilty to one count of conspiracy to commit bank fraud and two counts of aggravated identify theft. Today in District Court, Hicklin was sentenced to a term of imprisonment of 98 months. In January 2016, Charlotte resident Mario Clinton was sentenced to 85 months in federal prison for his involvement in the same conspiracy.
According to evidence presented at previous hearings by Assistant United States Attorney Laura Day Rottenborn and Special Assistant United States Attorney Kari Munro, Hicklin and Clinton stole checks from corporate mailboxes located in and around business districts and then altered them to reflect a new payee name and dollar amount. They recruited individuals off the street, who were frequently women, to cash the fraudulent checks at issuing banks. They operated primarily in Virginia and North Carolina but made criminal sweeps on a regular basis through locations as far away as Pennsylvania, Missouri and Tennessee.
Investigation of the case was conducted by the United States Postal Inspection Service, the Franklin County Sheriff’s Office, the Bedford County Sheriff’s Office and the Mount Holly, North Carolina Police Department. Assistant United States Attorney Laura Day Rottenborn and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
North Carolina Man Sentenced for Role in Bank Fraud, ID Theft ConspiracyRead the Press Release
Lynchburg, VIRGINIA – A North Carolina man, who conspired with others to make money by cashing checks that had been stolen and altered, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg, Acting United States Attorney Rick A. Mountcastle announced.
Donald Hicklin, 39, of Charlotte, N.C., previously pled guilty to one count of conspiracy to commit bank fraud and two counts of aggravated identify theft. Today in District Court, Hicklin was sentenced to a term of imprisonment of 98 months. In January 2016, Charlotte resident Mario Clinton was sentenced to 85 months in federal prison for his involvement in the same conspiracy.
According to evidence presented at previous hearings by Assistant United States Attorney Laura Day Rottenborn and Special Assistant United States Attorney Kari Munro, Hicklin and Clinton stole checks from corporate mailboxes located in and around business districts and then altered them to reflect a new payee name and dollar amount. They recruited individuals off the street, who were frequently women, to cash the fraudulent checks at issuing banks. They operated primarily in Virginia and North Carolina but made criminal sweeps on a regular basis through locations as far away as Pennsylvania, Missouri and Tennessee.
Investigation of the case was conducted by the United States Postal Inspection Service, the Franklin County Sheriff’s Office, the Bedford County Sheriff’s Office and the Mount Holly, North Carolina Police Department. Assistant United States Attorney Laura Day Rottenborn and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
New York Man Sentenced for False Statement at the BorderRead the Press Release
ALBANY, NEW YORK – Luis Augusto Santos Alonzo, age 50, of New York, New York, was sentenced today to one year in jail for making a false statement to federal officers during an immigration inspection.
The announcement was made by United States Attorney Richard S. Hartunian and Steven Bronson, United States Customs and Border Protection Port Director for the Champlain Port of Entry.
On January 24, 2017, Santos Alonzo pled guilty. He admitted that he provided a false name and falsely claimed to be a United States citizen, born in Puerto Rico and residing in Pennsylvania, during an immigration inspection at the Champlain Port of Entry on June 18, 2016. Santos Alonzo admitted that he was in fact a citizen of the Dominican Republic and a lawful permanent resident of the United States.
Senior United States Judge Norman A. Mordue also imposed a 3-year period of supervised release, to begin after Alonzo’s release from jail.
This case was investigated by Customs and Border Protection and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
New York Man Admits Armed Robbery of New Jersey Bar, Carjacking, and Violent Kidnapping of Taxi DriverRead the Press Release
NEWARK, N.J. – A Rockland County, New York, man today admitted participating in a December 2015 robbery of a North Jersey bar and the violent carjacking and kidnapping that took place shortly afterwards, Acting U.S. Attorney William E. Fitzpatrick announced.
Guillermo Carrillo-Iraheta, 19, of Suffern, New York, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count each of conspiracy to commit Hobbs Act Robbery, carjacking, and kidnapping.
According to documents filed in this case and statements made in court:
Guillermo Carrillo-Iraheta admitted that on Dec. 25, 2015, he and others robbed a bar in Hawthorne, New Jersey, and subsequently fled with approximately $200 in cash.
Afterwards, in the early morning hours of Dec. 26, 2015, Guillermo Carrillo-Iraheta and others hailed a taxi in Paterson, New Jersey, and forcibly took the taxi from the driver. Guillermo Carrillo-Iraheta admitted that he and others forced the driver into the back of the vehicle and took over driving. Guillermo Carrillo-Iraheta also admitted that he and others caused seriously bodily injury to the driver by hitting him in the head with a beer bottle and slicing his throat with a knife before eventually leaving him on the side of the road in New York. The taxicab driver survived.
The kidnapping charge carries a maximum potential penalty of life imprisonment. The carjacking charge carries a maximum potential penalty of 25 years in prison. The conspiracy charge carries a maximum potential penalty of up to 20 years in prison. Sentencing is scheduled for June 27, 2017.
Guillermo Carrillo-Iraheta was originally charged with Wilbur Jonathan Barahona, 21, of Ridgewood, New Jersey, Balmore Carrillo-Iraheta, 19, of Suffern, Juan Chiliseo-Vega, 20, of Suffern, Oscar Avalos-Cortez, 23, of New City, New York, and Jostin Reyes, 21, of Waldwick, New Jersey, in November 2016. Chiliseo-Vega pleaded guilty before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court on March 21, 2017 to a three-count information charging him with conspiracy to commit Hobbs Act Robbery, carjacking, and kidnapping. He awaits sentencing.
The charges against Barahona, Reyes, Balmore Carrillo-Iraheta, and Avalos-Cortez are still pending, and they are presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the Ridgewood and Hawthorne Police Departments, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Michele Ann Adubato Esq., Bayonne, New Jersey.
New Jersey Man Admits Operating Payroll Tax Fraud SchemeRead the Press Release
TRENTON, N.J. – The owner of former payroll company, Innovative Payroll Services LLC (IPS) admitted today he operated a multimillion-dollar fraud scheme through his company, Acting U.S. Attorney William E. Fitzpatrick announced.
John Scholtz, 68, of Sea Isle City, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of wire fraud and one count of transacting in criminal proceeds.
According to documents filed in this case and statements made in court:
Scholtz owned and operated IPS, a company that provided payroll services to clients – including municipalities, educational institutions, and various small to medium-sized privately held companies – in New Jersey and elsewhere. Each payroll period, IPS provided its clients with a summary setting forth the payroll taxes owed for that period. IPS clients then deposited the specified payroll taxes into an IPS bank account, where IPS held the funds until they were remitted to the taxing authorities.
Scholtz admitted that from February 2012 to January 2016, he withdrew or directed others at IPS to withdraw client tax funds from IPS’ Tax Impound Accounts, knowing that these funds constituted client tax funds, and used these funds instead for IPS operating expenses and his own personal expenses, including payments for homes, cars, boats, airplanes and credit cards.
This ongoing misappropriation of funds caused many IPS clients to be in delinquent status with the IRS and state and local taxing authorities. As clients’ tax deposit funds came in, IPS used such funds to pay other clients’ taxes owed for prior pay periods, as well as penalties and interest. As a result, at least 103 IPS clients lost more than $8.4 million worth of federal, state and local tax deposits that IPS failed to make, as well as more than $578,000 in associated penalties and interest. The City of Trenton was an IPS client from July 2009 to January 2016, and is one of is the IPS clients whose tax deposit funds were misappropriated by Scholtz.
The wire fraud count to which Scholtz pleaded guilty carries a maximum potential penalty of 20 years in prison; the transacting in criminal proceeds count carries a maximum penalty of 10 years in prison. Both charges also carry a fine of $250,000 or twice the gross gain or loss from the offense. Scholtz will also be ordered to pay restitution and forfeit certain property at sentencing, currently scheduled for July 6, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, Newark Division; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, Newark Division; and the Mercer County Prosecutor's Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Brian Reilly Esq., Assistant Federal Public Defender, Trenton
Navy Senior Chief Sentenced for ID Theft and Bank FraudRead the Press Release
NORFOLK, Va. – A U.S. Navy senior chief who stole personal identity information of sailors under his command was sentenced today to 50 months in prison for identity theft and bank fraud.
Clayton A. Pressley, 41, of Chesapeake, pleaded guilty on Aug. 22, 2016. According to the statement of facts filed with the plea agreement, Pressley used his position as a senior enlisted member of a local military command to steal personal identity information and identification documents of members of his command. Using that information and pretending to be two of his subordinates, he applied for and received several loans from Pioneer Mid-Country Bank totaling $24,000. He also possessed identity documents at his residence for eight other members of his military command.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Maureen Evans, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Special Assistant U.S. Attorney Alyssa Nichol and Assistant U.S. Attorney Stephen W. Haynie prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-66.
Navajo Woman from Arizona Pleads Guilty to Federal Firearms and Burglary Charges in New MexicoRead the Press Release
ALBUQUERQUE – Lisa Benally, 37, an enrolled member of the Navajo Nation from Fort Defiance, Ariz., pled guilty today in federal court in Albuquerque, N.M., to federal firearms and burglary charges.
Benally and co-defendant Loren Lloyd Wauneka, 37, an enrolled member of the Navajo Nation from Window Rock, Ariz., were arrested on Jan. 29, 2016, on a criminal complaint charging them with being felons in possession of firearms and burglary. The criminal complaint alleged that Benally and Wauneka committed the crimes on the Navajo Indian Reservation in McKinley County, N.M., on Dec. 1, 2015. According to the criminal complaint, a law enforcement officer encountered Benally, Wauneka and others as they were burglarizing the officer’s residence. During the execution of a search warrant on the vehicle in which Benally and Wauneka were traveling, officers seized a television, jewelry, bags, computer laptops and two firearms belonging to the officer whose home was burgled.
Benally and Wauneka were indicted on Feb. 24, 2016, and charged with being felons in possession of firearms and ammunition, possession of stolen firearms, and aggravated burglary on Dec. 1, 2015. According to the indictment, Benally was prohibited from possessing firearms or ammunition because she previously had been convicted of escape, possession of drug paraphernalia, and possession of dangerous drugs. Wauneka was prohibited from possessing firearms or ammunition because he previously was convicted of unlawful discharge of a firearm and aggravated driving while intoxicated.
During today’s proceedings, Benally pled guilty to being a felon in possession of a firearm and ammunition and aggravated burglary. In entering the guilty plea, Benally admitted that on Dec. 1, 2015, she and others drove to and unlawfully entered a residence with the intent to commit theft and stole two firearms and ammunition, which Benally placed into her vehicle, thus making Benally armed during the burglary. Benally further admitted that she was prohibited from possessing firearms or ammunition because of her status as a convicted felon.
On March 23, 2017, Wauneka pled guilty to being a felon in possession of a firearm and ammunition and aggravated burglary. In entering the guilty plea, Wauneka also admitted that on Dec. 1, 2015, he entered a residence with the intent to commit theft and stole two firearms and ammunition, which he placed into his vehicle, thus making Wauneka armed during the burglary. Wauneka further admitted that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
At sentencing, Benally and Wauneka each face a maximum penalty of ten years in federal prison. Sentencing hearings have yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety, the McKinley County Sheriff’s Office and the New Mexico State Police. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
Navajo Man from Ramah Pleads Guilty to Federal Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Nochise Martinez, 23, an enrolled member of the Navajo Nation who resides in Ramah, N.M., pled guilty today in federal court in Albuquerque, N.M., to a voluntary manslaughter charge. Under the terms of his plea agreement, Martinez will be sentenced to 48 months in prison followed by a term of supervised release to be determined by the court.
Martinez was arrested on Jan. 4, 2017, on a criminal complaint charging him with killing a Navajo man on the Ramah Navajo Indian Reservation in Cibola County, N.M., on Dec. 31, 2016. According to the criminal complaint, Martinez stabbed the victim multiple times during a fight.
During today’s proceedings, Martinez pled guilty to a felony information charging him with voluntary manslaughter. In entering the guilty plea, Martinez admitted that on Dec. 31, 2016, he killed the victim by stabbing him in the chest with a knife during a fight between the two men. Martinez remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and is being prosecuted by Assistant U.S. Attorney Joseph Spindle.
National Crime Victims’ Rights Week Event Set for April 2 in CharlottesvilleRead the Press Release
Charlottesville, VIRGINIA – The Jefferson Area Victim Assistance Coalition will host a Community Day on Sunday, April 2 from 1 to 4 p.m. at the Sprint Pavilion on the downtown mall in Charlottesville to commemorate National Crime Victims’ Rights Week (April 2-8).
“Every day in courtrooms throughout the United States victims of crime show great courage and strength by participating in our judicial system,” Acting United States Attorney Rick A. Mountcastle said today. “Their strength and resilience, as well as the dedication of the men and women in the victim advocacy community, who work with them, inspire prosecutors and law enforcement to seek justice for all victims. I am proud to honor victims and those who serve them. National Crime Victims’ Rights Week is dedicated to promoting victims’ rights and to recognizing the struggles and endurance of crime victims. Strength, Resilience, and Justice.”
The Community Day, which is free and open to the public, has been planned as a family friendly, interactive event with demonstrations and information available from dozens of local agencies. There will be plenty for kids to see and do, including police motorcycles, fire trucks, police cars, and demonstrations by local K9 Officers and therapy dogs. Many of the local agencies will have plenty of giveaways for the kids.
In addition, there will information available for parents, including DNA and fingerprinting kits available, anti-drug information, tips on home safeguarding, self-defense and how to avoid falling victim to scams.
The Jefferson Area Victim Assistance Coalition consists of members form the Albemarle Co. Victim/Witness Program, Charlottesville Victim/Witness Program, Fluvanna County Victim/Witness Program, Greene County Victim/Witness Program, Homeland Security Victim Assistance Program, Louisa County Victim/Witness Program, Sexual Assault Resource Agency, University of Virginia Victim/Witness Program, the Federal Bureau of Investigation Victim Assistance Program, the Shelter for Help in Emergency and the United States Attorney’s Office Victim/Witness Program.
Local Agencies participating in Sunday’s event include: the Jefferson Area Victim Assistance Coalition, Foothills Child Advocacy Center, Greene County Victim/Witness Program, Albemarle County Victim/Witness Program, Louisa County Victim/Witness Program, Charlottesville Victim/Witness Program, Shelter for Help in Emergency, the United States Attorney’s Office for the Western District of Virginia, Sexual Assault Resource Agency, UVA Police Department, Derby Dames, Albemarle DSS, CASA, Central Virginia Legal Aid Society, Women’s Initiative, Albemarle County Commonwealth’s Attorney, Albemarle County Police Department, Greene County Care Center, NGIC Sexual Assault Advocate/SART, WCHV 107.5 Radio, OAG Victim Services, Charlottesville Police Department, Louisa County Sheriff’s Office, Charlottesville Fire Department, DEA, Domestic Violence Project of the University of Virginia School of Law and the Virginia Parole Board/DOC Victim Services.
Nampa Man Sentenced to 25 years for Sexual Exploitation of ChildrenRead the Press Release
BOISE – Fernando Morales, 50, of Nampa was sentenced today in United States District Court to 300 months in prison, followed by lifetime supervised release, for sexual exploitation of children, Acting United States Attorney Rafael Gonzalez announced.
According to the plea agreement, officers with the Nampa Police Department contacted Morales at his residence in Nampa on August 23, 2016, after a sixteen-year-old minor living at the residence called 911. The minor victim informed officers that Morales had sexual contact with the minor victim for several years and had nude images of the minor victim on his cell phone. During an interview with Nampa Police Detectives, Morales admitted that he had sexual contact with the minor victim on numerous occasions, beginning in approximately June of 2015 in El Paso, Texas. Morales, the victim, and two other children later moved to Nampa in July of 2016. Morales also admitted that he recorded videos and pictures of himself and the minor victim engaged in sexually explicit conduct, and that he saved the videos and pictures on his cell phone.
Nampa Police Detectives seized several electronic devices from Morales. A Computer Forensic Agent with the Department of Homeland Security analyzed the devices, and discovered twenty-three videos and twenty-one still images of the minor victim engaged in sexually explicit conduct. Nineteen of the videos and all of the still images depicted Morales engaged in sexually explicit conduct with the victim. Two of the videos and nine of the still images contained data showing they were produced in the State of Texas, then transported to the State of Idaho.
“This prison sentence ensures that Morales will never again be a threat to children,” said Gonzalez. His conduct caused unimaginable harm to this child victim. The U.S. Attorney’s Office, along with our local, state and federal partners, will vigorously prosecute those who harm the children of this community.”
“Innocent children continue to be re-victimized with every view of a sexually explicit image or video,” said Brad Bench, special agent in charge of Homeland Security Investigations Seattle. “HSI and local law enforcement strive to assist traumatized youth by dedicating every resource available to ensure child predators are held accountable for their deeds.”
The case was investigated by the Nampa Police Department and the Department of Homeland Security, with assistance from the Canyon County Prosecutor’s Office, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Methamphetamine Traffickers SentencedRead the Press Release
AMARILLO, Texas — Francisco Javier Gutierrez-Alvarez, 33, Octavio Cabrera-Mayorquin, 28, and Guillermo Urenda-Bustos, 31 were sentenced today by U.S. District Judge Sidney A. Fitzwater following their guilty pleas in December 2016 to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Fitzwater sentenced Gutierrez-Alvarez to 70 months in federal prison, Cabrera-Mayorquin to 63 months in federal prison and Urenda-Bustos to 46 months in federal prison. The defendants have been in custody since their arrest in October 2016.
All three defendants are Mexican citizens and were in the United States illegally at the time of the offense. They will be deported after serving their sentence.
According to documents filed in the case, on October 6, 2016, New Mexico State Police (NMSP) made a traffic stop of a tractor-trailer (car hauler) for an obstructed license plate. During the course of the traffic stop, the officer noticed that the bill of lading regarding the shipment of a white Nissan Frontier was suspicious because it provided only general information. The officer asked the driver for consent to search the Nissan Frontier, and the driver granted consent to search the vehicle.
During the search of the vehicle, NMSP officers located 24 bundles of suspected methamphetamine concealed within the door panels. The bundles field tested positive for the presence of methamphetamine and had a gross weight of approximately 24.5 pounds.
The vehicle was being delivered to “Johnny” in Amarillo, Texas. “Johnny” was subsequently identified as Cabrera-Mayorquin.
On October 7, 2016, Homeland Security Investigation Amarillo and Homeland Security Investigation Albuquerque, along with the assistance from other law enforcement agencies and the truck driver, who was not involved in the conspiracy, delivered the Nissan Frontier to the scheduled destination in Amarillo, Texas. The Nissan Frontier was unloaded from the trailer and Cabrera approached the driver and took custody of the Nissan Frontier. Cabrera drove the Nissan Frontier to a nearby parking spot where it was left. Cabrera entered a silver F-150 pickup and left the area. The driver of the F-150 was subsequently identified as Gutierrez-Alvarez and the back passenger was later identified as Urenda-Bustos.
A tow truck arrived and loaded the Nissan Frontier. The tow truck transported the Nissan Frontier to a residence and then left. Gutierrez, Cabrera, and Urenda-Bustos were observed arriving in the alleyway behind the residence. Cabrera exited the F- 150 and moved the Nissan Frontier to the backyard of the residence.
Amarillo Police Department conducted a traffic stop of the silver F-150 pickup for a traffic violation. All three subjects were transported to the Amarillo Drug Enforcement Administration office for further investigation.
Subsequent testing by the DEA South Central Laboratory confirmed that the substance in the vehicle contained methamphetamine, a Schedule II controlled substance, with an approximate weight of 10,351 grams, and had a purity level of 94 percent.
The case was investigated by Homeland Security Investigation, with assistance from Amarillo Police Department and the Drug Enforcement Administration. Assistant U.S. Attorney Joshua Frausto was in charge of the prosecution.
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Memphis Man Pleads Guilty to Obstructing the IRSRead the Press Release
Memphis, TN – A Memphis man has pleaded guilty to obstructing the Internal Revenue Service ("IRS"). Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to the indictment, Cedric Zimbalist Chism was the former owner and operator of a security guard service, Memphis Security of Tennessee, Inc. ("MSOFT").MSOFT had contracts for services with various businesses throughout the Western District of Tennessee in Memphis. Chism attempted to impede and evade payment and reporting of employment taxes to the IRS from 1999 through 2011. Chism, personally and as owner and operator of MSOFT, owed $1,688,473.45 with a tax loss to the IRS of $854,144.39.
This charge carries a penalty of up to 36 months in federal prison and a fine of $5,000.00. The sentencing hearing is set for July 1, 2017.
The case was investigated by the United States Internal Revenue Service. Assistant U.S. Attorney Damon Keith Griffin is prosecuting this case on the government’s behalf.