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22 March 2017
Memphis Man Indicted for Illegal Reentry into the United StatesRead the Press Release
Memphis, TN – A federal grand jury has indicted a Memphis man for illegal reentry into the United States. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.
Official immigration records of Dionico Salazar-Martinez, a/k/a "Dionicio Salazar-Martinez," a/k/a/ "Martinez Salazar," age 53 reflect that he has been found in the United States and returned or removed to Mexico on 15 prior occasions.
According to the indictment, on or about January 25, 2017, the defendant, an alien, was found in Shelby County, Tennessee, after having been denied admission, excluded, deported and removed from the United States and not having obtained the express consent of the Secretary of Homeland Security to reapply for admission into the United States, in violation of Title 8, United States Code, Section 1326(a) and (b) (1).
Immigration records reflect the following:
- April 23, 1998, the defendant was arrested by the U.S. Border Patrol near Uvalde, Texas. He was given a Voluntary Return to Mexico.
- April 27, 1998, the defendant was arrested by the U.S. Border Patrol near Brackettville, Texas. He was given a Voluntary Return to Mexico.
- May 30, 1998, the defendant was arrested by the U.S. Border Patrol near Brackettville, Texas. He was given a Voluntary Return to Mexico.
- June 26, 1998, the defendant was arrested by the U.S. Border Patrol near Uvalde, Texas. He was given a Voluntary Return to Mexico.
- August 5, 1998, the defendant was arrested by the U.S. Border Patrol near Brackettville, Texas. He was given a Voluntary Return to Mexico.
- August 28, 1998, the defendant was arrested by the U.S. Border Patrol near Uvalde, Texas. He was given a Voluntary Return to Mexico.
- September 1, 1998, the defendant was arrested by the U.S. Border Patrol near Uvalde, Texas. He was given a Voluntary Return to Mexico.
- September 16, 1998, the defendant was arrested by the U.S. Border Patrol near Brackettville, Texas. He was given a Voluntary Return to Mexico.
- October 21, 1998, the defendant was arrested by the U.S. Border Patrol near Uvalde, Texas. He was given a Voluntary Return to Mexico.
- October 24, 1998, the defendant was arrested by the U.S. Border Patrol near Brackettville, Texas. He was given a Voluntary Return to Mexico.
- October 29, 1998, the defendant was arrested by the U.S. Border Patrol near Uvalde, Texas. He was given a Voluntary Return to Mexico.
- December 27, 1998, the defendant was arrested by the U.S. Border Patrol near Brackettville, Texas. He was placed into removal proceedings and on May 29, 1999, the defendant was removed from the United States to Mexico at El Paso, Texas.
- August 8, 1999, the defendant was arrested by the U.S. Border Patrol near Eagle Pass, Texas. He was placed into removal proceedings and on February 4, 2000, the defendant was removed from the United States to Mexico at Laredo, Texas.
- October 2, 2002, the defendant was arrested by the Immigration and Naturalization Service in Memphis, Tennessee. He was placed into removal proceedings and on October 23, 2002, the defendant was removed from the United States to Mexico at Laredo, Texas.
- August 13, 2003, the defendant was arrested by Immigration and Customs Enforcement in Memphis, Tennessee. He was placed into removal proceedings and on March 2, 2004, the defendant was removed from the United States to Mexico at Hidalgo, Texas.
If convicted, Salazar-Martinez faces a maximum possible sentence of ten (10) years imprisonment, a fine of $250,000, a three-year term of supervised release, and a $100 mandatory special assessment.
The case is being investigated by the United States Department of Homeland Security – Immigration and Customs Enforcement. Assistant U.S. Attorney Stephen Hall is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Member of CD and DVD Counterfeiting Ring in Atlanta Sentenced to Five Years in PrisonRead the Press Release
ATLANTA – Mamadou Aliou Simakha has been sentenced to five years in prison for his involvement in a counterfeit DVD and CD ring. Simakha pleaded guilty on March 10, 2010, to one count of conspiracy to commit criminal copyright infringement, to traffic in counterfeit goods, and counterfeit labels.
“Simakha admitted his part as a high volume seller in a conspiracy to produce and traffic millions of pirated music CDs and DVDs which was a leading supplier for the southeastern U.S.,” said U.S. Attorney John Horn. “His decision to flee the country garnered him the statutory maximum sentence he deserves for his many years as a disc counterfeiter and international fugitive.”
“Criminal enforcement of the copyright laws plays an essential role in preserving the rights of American authors, artists and creators,” said Acting Assistant Attorney General Blanco. “This group of defendants stole from thousands of victims by mass-producing counterfeit music CDs and DVD movies in a far-reaching pirating operation. As this case demonstrates, we will continue to investigate, prosecute and, if necessary, extradite those individuals who seek to profit illegally by stealing the works of others.”
“The international extradition and resulting federal conviction and sentencing of Simakha clearly illustrates that the U.S. government will not tolerate the wholesale theft of intellectual property on this scale,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office. “The FBI will continue to be a significant partner in the fight against such individuals and groups engaged in criminal copyright infringement and counterfeit trafficking operations.”
“Intellectual property theft negatively impacts the U.S. economy, threatens consumer health and safety and funds black market criminal organizations involved in other illicit activities,” said Special Agent in Charge Annan. “HSI will continue to protect intellectual property rights, crack down on counterfeiting, and collaborate with industry and law-enforcement authorities to ensure we conduct effective and efficient intellectual property enforcement.”
According to U.S. Attorney Horn, the charges and other information presented in court: Simakha was one of 13 individuals charged by a federal grand jury on May 19, 2009, in an indictment alleging various copyright, trademark and counterfeit label offenses. At the plea hearing, Simakha admitted that two co-conspirators supplied him with blank CDs and DVDs and he burned counterfeit copies of music and movies onto the CDs and DVDs along with placing counterfeit artwork onto the CDs and DVDs. Simakha also admitted that he was involved in a conspiracy to then sell copies of the pirated works to others.
After entering his guilty plea, Simakha fled the country, and a warrant was issued for his arrest on April 6, 2010. On March 1, 2016, Simakha was arrested in Morocco and was extradited from Morocco into the custody of the U.S. Marshals Service (USMS) on December 15, 2016.
Seven other defendants were sentenced in 2011 to prison terms ranging from probation to five years. The court found that Simakha conspired with co-defendants and others to reproduce and distribute tens of thousands of copyright infringing music CDs and movie DVDs which, if legitimate, would have been worth more than $769,000.
Mamadou Aliou Simakha, 41, of Dakar, Senegal, was sentenced by U.S. District Judge William S. Duffey Jr., to five years in federal prison, three years of supervised release, a $100 special assessment, and ordered to pay restitution of $70,894.21, to the Motion Picture Association and Recording Industry Association of America.
Assistant U.S. Attorney Brian Pearce in the Northern District of Georgia and Assistant Deputy Chief John H. Zacharia of the DOJ Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case. The FBI and ICE-HSI investigated the case with assistance from the Atlanta Police Department Organized Crime Unit; Fulton County, Georgia, Sheriff’s Office; College Park, Georgia, Police Department; East Point, Georgia, Police Department; the Recording Industry Association of America; and the Motion Picture Association of America. The Office of International Affairs and USMS assisted in Simakha’s extradition from Morocco.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Member of CD and DVD Counterfeiting Ring in Atlanta Sentenced to 60 Months in PrisonRead the Press Release
A Dakar, Senegal, man was sentenced to 60 months in prison today for his involvement in a counterfeit DVD and CD ring.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney John A. Horn of the Northern District of Georgia, Special Agent in Charge David J. LeValley of the FBI’s Atlanta Field Office and Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Atlanta made the announcement.
Mamadou Aliou Simakha, 41, was also ordered to pay $70,894 in restitution, jointly and severally with his co-defendants, by U.S. District Judge William S. Duffey Jr. of the Northern District of Georgia. Simakha pleaded guilty on March 10, 2010, to one count of conspiracy to commit criminal copyright infringement, to traffic in counterfeit goods and to traffic in counterfeit labels.
After entering his guilty plea, Simakha fled the country, and a warrant was issued for his arrest on April 6, 2010. On March 1, 2016, Simakha was arrested in Morocco and was extradited from Morocco into the custody of the U.S. Marshals Service (USMS) on Dec. 15, 2016.
“Criminal enforcement of the copyright laws plays an essential role in preserving the rights of American authors, artists and creators,” said Acting Assistant Attorney General Blanco. “This group of defendants stole from thousands of victims by mass-producing counterfeit music CDs and DVD movies in a far-reaching pirating operation. As this case demonstrates, we will continue to investigate, prosecute and, if necessary, extradite those individuals who seek to profit illegally by stealing the works of others.”
“Simakha admitted his part as a high volume seller in a conspiracy to produce and traffic millions of pirated music CDs and DVDs which was a leading supplier for the southeastern United States,” said U.S. Attorney Horn. “His decision to flee the country garnered him the statutory maximum sentence he deserves for his many years as a disc counterfeiter and international fugitive.”
“The international extradition and resulting federal conviction and sentencing of Simakha clearly illustrates that the U.S. government will not tolerate the wholesale theft of intellectual property on this scale,” said Special Agent in Charge LeValley. “The FBI will continue to be a significant partner in the fight against such individuals and groups engaged in criminal copyright infringement and counterfeit trafficking operations.”
“Intellectual property theft negatively impacts the U.S. economy, threatens consumer health and safety and funds black market criminal organizations involved in other illicit activities,” said Special Agent in Charge Annan. “HSI will continue to protect intellectual property rights, crack down on counterfeiting, and collaborate with industry and law-enforcement authorities to ensure we conduct effective and efficient intellectual property enforcement.”
At the plea hearing, Simakha admitted that two co-conspirators supplied him with blank CDs and DVDs and Simaka burned counterfeit copies of music and movies onto the CDs and DVDs along with placing counterfeit artwork onto the CDs and DVDs. Simakha also admitted that he was involved in a conspiracy to then sell copies of the pirated works to others.
Simakha was one of 13 individuals charged by a federal grand jury on May 19, 2009, in an indictment alleging various copyright, trademark and counterfeit label offenses. Seven other defendants were sentenced in 2011 to prison terms ranging from probation to five years. The court found that Simakha conspired with co-defendants and others to reproduce and distribute tens of thousands of copyright infringing music CDs and movie DVDs which, if legitimate, would have been worth more than $769,000.
Assistant Deputy Chief John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Brian Pearce of the Northern District of Georgia prosecuted the case. The FBI and ICE-HSI investigated the case with assistance from the Atlanta Police Department Organized Crime Unit; Fulton County, Georgia, Sheriff’s Office; College Park, Georgia, Police Department; East Point, Georgia, Police Department; the Recording Industry Association of America; and the Motion Picture Association of America. The Office of International Affairs and USMS assisted in Simakha’s extradition from Morocco.McAlester Man Sentenced to 78 Months for Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that BRANDON RAY PARKER, age 41, of McAlester, Oklahoma, was sentenced to 78 months imprisonment and 5 years of supervised release for POSSESSION OF CERTAIN MATERIAL INVOLVING THE SEXUAL EXPLOITATION OF MINORS, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2).
The Indictment alleged that between in or about October 2013 and on or about October 2, 2015, in the Eastern District of Oklahoma, the defendant, did knowingly possess, attempt to possess and access with intent to view matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), the production of said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of such sexually explicit conduct and had been transported in interstate commerce by computer.
The charge arose from an investigation by the Federal Bureau of Investigation.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Edward Snow represented the United States.
Mauldin Man Pleads Guilty to Child Porn ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that David Specyalski, age 47, of Mauldin, pled guilty in federal court in Greenville, to possession of child pornography, a violation of Title 18, United States Code, Section 2252A. United States District Judge Bruce H. Hendricks of Greenville accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that law enforcement conducted a proactive investigation involving a file-sharing network used by individuals with an interest in child pornography. An undercover officer downloaded a video that Specyalski had available for sharing.A federal search warrant was obtained and executed. A forensic exam of his computer revealed twelve videos of child pornography. Specyalski has a prior state child pornography possession conviction.
Ms. Drake stated the maximum penalty Specyalski can receive is a fine of $250,000 and/or imprisonment for not less than 10 years and no more than 20 years, plus a special assessment of $100.
The case was investigated by agents with ICE - Homeland Security Investigations. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Maryland Chiropractor Indicted for Filing False Tax Returns and Obstructing the IRSRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Dr. Warren Gregory Belcher, age 58, of Salisbury, Maryland, with one count of corruptly endeavoring to impede the Internal Revenue Service (IRS) and six counts of filing false tax returns. The indictment was returned on March 20, 2017, and unsealed late on March 21, 2017.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the indictment, Dr. Belcher, operated a chiropractic business for nearly 20 years. During that time, he received income for chiropractic services from insurance companies, patients and other third parties, including another chiropractor in Baltimore. The indictment alleges that for the years 2009 through 2015, Belcher filed false individual income tax returns on which he failed to report that he operated a chiropractic business and falsely claimed that he had earned $0 in business income.
The indictment further alleges that between 2008 and 2015, Belcher submitted approximately 79 letters to insurance companies and other third parties in which he threatened that the companies could be subject to civil and criminal penalties for reporting his income to the IRS on a Form 1099-MISC. A Form 1099-MISC is a tax form that is used to report certain types of income to the IRS, including payments for services performed by someone who is not an employee and medical and health care payments. Belcher also made threatening statements to an accountant to prevent the accountant from reporting his income to the government. In addition, Belcher is alleged to have submitted approximately 68 fraudulent Forms 1099-MISC to the IRS on which he falsely claimed that the companies who reported his income to the IRS on Forms 1099-MISC for those years had paid him $0 in income. Finally, Belcher allegedly responded to notices from the IRS regarding additional taxes he owed for the years 2009 and 2011 and a penalty that the IRS assessed against him for filing a frivolous income tax return by sending letters to the IRS in which he falsely claimed that the IRS was violating the law by assessing and collecting his taxes.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
If convicted, Belcher faces a statutory maximum sentence of three years in prison on each count of the indictment. Belcher is scheduled to have an initial appearance today in U.S. District Court in Baltimore.
U.S. Attorney Rosenstein and Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, for their work in the investigation, and Assistant U.S. Attorney Sean R. Delaney and Trial Attorney Melissa S. Siskind of the Justice Department’s Tax Division, who are prosecuting the case.
Maryland Chiropractor Indicted for Filing False Tax Returns and Obstructing the IRSRead the Press Release
A grand jury in Baltimore, Maryland returned an indictment on March 9, which was unsealed yesterday, charging a chiropractor with one count of corruptly endeavoring to impede the Internal Revenue Service (IRS) and six counts of filing false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rod J. Rosenstein for the District of Maryland.
According to the indictment, Dr. Warren Gregory Belcher, a resident of Salisbury, Maryland, operated a chiropractic business for nearly 20 years. During that time, he received income for chiropractic services from insurance companies, patients and other third parties, including another chiropractor in Baltimore. The indictment alleges that for the years 2009 through 2015, Belcher filed false individual income tax returns on which he failed to report that he operated a chiropractic business and falsely claimed that he had earned $0 in business income.
The indictment further alleges that between 2008 and 2015, Belcher submitted approximately 79 letters to insurance companies and other third parties in which he threatened that the companies could be subject to civil and criminal penalties for reporting his income to the IRS on a Form 1099-MISC. A Form 1099-MISC is a tax form that is used to report certain types of income to the IRS, including payments for services performed by someone who is not an employee and medical and health care payments. Belcher also made threatening statements to an accountant to prevent the accountant from reporting his income to the government. In addition, Belcher is alleged to have submitted approximately 68 fraudulent Forms 1099-MISC to the IRS on which he falsely claimed that the companies who reported his income to the IRS on Forms 1099-MISC for those years had paid him $0 in income. Finally, Belcher is alleged to have responded to notices from the IRS regarding additional taxes he owed for the years 2009 and 2011 and a penalty that the IRS assessed against him for filing a frivolous income tax return by sending letters to the IRS in which he falsely claimed that the IRS was violating the law by assessing and collecting his taxes.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Belcher faces a statutory maximum sentence of three years in prison on each count of the indictment, as well as a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Rosenstein commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorney Melissa S. Siskind of the Tax Division and Assistant U.S. Attorney Sean R. Delaney of the District of Maryland, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Lower Brule Man Sentenced on Drug ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on March 20, 2017, by U.S. District Judge Karen E. Schreier.
Dru Peterson, age 29, was sentenced to 30 months in custody, and three years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Peterson was indicted for Possession with Intent to Distribute a Controlled Substance by a federal grand jury on March 9, 2016. He pled guilty on December 28, 2016.
On August 27, 2015, Yankton Sioux Tribal Police officers responded to a call at the Fort Randall Casino of suspicious activity in a parked vehicle. Three individuals were in the vehicle, Dru Peterson, and two of his three co-defendants Wanda Fields and Lacey Crow. The fourth defendant, Renee Peterson, had been in the casino and, upon arriving at the car while the officers were questioning the others, gave officers permission to search the vehicle. Officers found 32.07 grams of methamphetamine and drug paraphernalia in the vehicle. All four individuals were arrested.
This case was investigated by Yankton Sioux Tribal Police and the Bureau of Indian Affairs. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Peterson was immediately turned over to the custody of the U.S. Marshals Service. Peterson’s co-defendants all pleaded guilty and are awaiting sentencing.
Long-Time Bonanno Crime Family Member Indicted for Arson; Six Others Indicted for Violent CrimesRead the Press Release
BROOKLYN, NY – Two indictments were unsealed this morning in federal court in the Eastern District of New York charging seven defendants variously with arson, bank robbery, Hobbs Act robberies and firearms offenses based, in part, on their participation in the criminal affairs of the Bonanno organized crime family of La Cosa Nostra (the Bonanno family).[1] The defendants – Vincent Asaro, John J. Gotti, Michael Guidici, Matthew Rullan, also known as “Fat Matt,” Christopher Boothby, also known as “Bald Chris,” Matthew Hattley, also known as “Mack,” and Darren Elliott – were arrested earlier today.
The seven defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Roanne L. Mann, at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York. The cases have been assigned to United States District Judge Allyne R. Ross.
The charges and arrests were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“The defendants are charged with committing an assortment of violent crimes – arson to exact punishment for a perceived slight and robberies to unjustly enrich themselves. This Office and its partners will continue to vigilantly pursue such organized violence and stop it in its tracks,” said Acting United States Attorney Rohde. Ms. Rohde thanked the Queens District Attorney’s Office, the New York City Police Department (“NYPD”), and the Nassau County Police Department’s Major Case Bureau and Robbery Squad for their assistance in the investigations.
“A man well-known in organized crime circles allegedly got cut off in traffic, and exacted his revenge by sending his associates to allegedly torch the victim’s car. The FBI refuses to allow acts like arson, bank robbery and home invasions to be conducted as business as usual, as if it is just another day in the office. The FBI and our law enforcement partners will continue to aggressively go after those who refuse to follow the laws and prey upon the law-abiding public,” said FBI Assistant Director-in-Charge Sweeney.
Arson
As alleged in the government’s court filings, Asaro was inducted into the Bonanno family more than 30 years ago and has previously held the position of captain. In early April 2012, Asaro was traveling in a car in Howard Beach when he became enraged at another motorist who had switched lanes in front of Asaro at a traffic light. Asaro chased the other vehicle at a high rate of speed. Later, after obtaining the home address of the owner of the other vehicle, Asaro directed an associate of the Bonanno family (“Associate-1”) to set fire to that vehicle. Associate-1 then recruited Gotti and Rullan to help him carry out the arson.
As further alleged, Associate-1, Gotti and Rullan drove in Gotti’s Jaguar sedan to a service station in the pre-dawn hours of April 4, 2012 where they filled a container with gasoline and proceeded to the residence of the owner of the other vehicle. Associate-1 doused the vehicle with gasoline, and Rullan ignited it. An NYPD police officer in an unmarked car observed the crime in progress and pursued the Jaguar on a high-speed chase through the streets of Queens until he terminated the pursuit for safety reasons due to Gotti’s reckless driving.
The following day, Associate-1 told Asaro about the arson, and Asaro drove to the auto body shop where the burned vehicle had been towed to confirm that his order had been carried out.
Bank Robbery
Two weeks after the vehicle arson, Gotti, Rullan, and Guidici allegedly robbed the Maspeth Federal Savings and Loan Association. On April 18, 2012 at approximately 5:45 p.m., Guidici entered the bank and handed the teller a note demanding money and stating, among other things, “I HAVE A BOMB[.]” The teller placed $5,491 on the counter, which Guidici took. Guidici then joined Gotti and Rullan who were waiting outside the bank in a car. The three defendants then fled the scene together.
Home Invasion Robbery
Boothby, an associate of the Bonanno family, and Hattley are charged with robbing a residence in Queens on March 12, 2014. Boothby remained outside the home as a lookout while Hattley and another Bonanno associate (“Associate-2”) tied up the homeowner’s girlfriend (“Jane Doe”). The defendants then stole more than $50,000 in cash and hundreds of thousands of dollars’ worth of jewelry, including high-end designer watches and a Cartier ring from Jane Doe’s finger, among other items.
Jewelry Store Robbery and Attempts
Hattley and Elliott are charged with the gunpoint robbery of a jewelry store in Franklin Square, Long Island, making off with approximately $250,000 in merchandise, and the attempted robberies of two other jewelry stores, also in Franklin Square, between August 17, 2011 and May 5, 2012. The jewelry store owners were menaced with guns and tied up.
All of the defendants face a maximum sentence of 20 years’ imprisonment on the robbery, attempted robbery, arson and arson conspiracy charges. In addition, Asaro, Gotti and Rullan each face a mandatory minimum sentence of five years’ imprisonment if convicted of the arson-related charges and Hattley and Elliot face a mandatory minimum sentence of seven years’ imprisonment if convicted of the firearms charges.
The government’s case is being prosecuted by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Nicole M. Argentieri, Lindsay K. Gerdes, Keith D. Edelman, and Alicyn L. Cooley are in charge of the prosecution.
The Defendants:
VINCENT ASARO
Age: 82
Queens, NY
JOHN J. GOTTI
Age: 23
Queens, NY
MICHAEL GUIDICI
Age: 22
Queens, NY
MATTHEW RULLAN, a.k.a. “Fat Matt”
Age: 26
Queens, NY
CHRISTOPHER BOOTHBY, a.k.a. “Bald Chris”
Age: 37
Queens, NY
DARREN ELLIOTT
Age: 30
Queens, NY
MATTHEW HATTLEY, a.k.a. “Mack”
Age: 26
Queens, NY
E.D.N.Y. Docket Nos. 17-CR-00127 (RRM) and 17-CR-00128 (ARR)
[1] The charges contained in the indictments are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Local Restaurant Owner Pleads to Felon in Possession of Firearms and Ammunition ChargeRead the Press Release
Contact Person: Stacey D. Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Nigel Michael Sandiford, a/k/a “Marvin H. Rogers,” a/k/a “Cecil Price,” age 43, of Columbia, plead guilty in federal court today to being a felon in possession of firearms and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Senior United States District Judge Cameron McGowan Currie of Columbia accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented in court during the guilty plea hearing established that July 18, 2016, federal agents executed a search warrant at Sandiford’s Montego Bay restaurant on Parklane Road in Columbia. Inside the restaurant, agents located a Mossberg 12 gauge shotgun, a Glock .45 caliber handgun, as well as a high capacity magazine, and assorted rounds of 12 gauge shotgun shells, .40 caliber ammunition, .45 caliber ammunition, and 9mm ammunition. Sandiford admitted to possessing the firearms and ammunition and to having a prior Richland County drug conviction under the alias “Marvin H. Rogers.” Sandiford is prohibited under federal law from possessing firearms based upon his prior state conviction for possession with intent to distribute cocaine.
Sandiford faces a maximum of ten years imprisonment, a fine of $250,000, and three years of supervised release on the felon in possession of a firearm and ammunition charge. Sandiford, a native of Trinidad and Tobago, is also currently facing deportation proceedings.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Drug Enforcement Administration (DEA) and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Leader of Fraudulent Credit Card Scheme Pleads Guilty to Federal ChargesRead the Press Release
Greenbelt, Maryland – Hussain Abdullah, age 39 of Forestville, Maryland, pleaded guilty on March 21, 2017, to conspiracy to commit wire fraud, aggravated identity theft, and being a felon in possession of a firearm, related to a scheme to use victims’ stolen identity information to obtain credit. The conspirators used the fraudulent credit cards to obtain money and merchandise.
Co-conspirators Shazad Khan, age 56, of Maryland, Patricia Lynn Hiter, age 51, of Lawrenceville, Georgia, and James Edward Foster, age 61, of Woodbridge, Virginia, previously pleaded guilty to the wire fraud conspiracy and aggravated identity theft.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian J. Ebert of the United States Secret Service, Washington, D.C. Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to their plea agreements, Abdullah obtained and helped obtain the personal identifying information (PII) of others, without their knowledge or consent. From October 2014 through July 2016, Abdullah used the victim’s stolen personal information to create fake driver’s licenses in the names of the victims. As part of the conspiracy, Abdullah provided over 30 fake driver’s licenses to Khan, Hiter, Foster, and directed them to use the victims’ personal information to open instant credit cards in the victims’ names. Khan, Hiter, Foster, Shivers, and others used the fraudulent driver’s licenses to apply for credit at retail stores, and used the credit cards they obtained to purchase merchandise, including electronics and jewelry, and gift cards.
On September 30, 2016, Abdullah was arrested in Philadelphia and law enforcement seized a backpack and suitcase belonging to Abdullah. Inside the suitcase law enforcement recovered a .45/.410 caliber handgun, which Abdullah had transported to Pennsylvania from Maryland a few days earlier. Abdullah was prohibited from possessing a firearm or ammunition due to a previous felony conviction. Investigation showed that the handgun had previously been reported stolen during a residential robbery in Virginia. On October 1, 2016, law enforcement executed a search at Abdullah’s residence in Baltimore. During the search, law enforcement recovered a thumb drive containing approximately 799 documents bearing suspected victim names, including credit reporting information relating to those victims, and approximately 187 identification card templates bearing the photographs of 36 different suspects. A search of Abdullah’s suitcase recovered blank identification card stocks containing Virginia, Maryland, and Washington, D.C. holograms. Abdullah’s fingerprints were found on the card stock. Finally, law enforcement also recovered a phone with additional victim names, and a laptop computer containing the names of 32 victims.
The total loss to the card issuers was over $225,000, and the names of at least 65 victims – most of them Maryland residents - were used at retail stores without their permission. In addition, law enforcement has identified approximately 1,000 suspected victims based on their investigation of this scheme.
Abdullah and the government have agreed that if the Court accepts the plea agreement Abdullah will be sentenced to between 45 and 65 months in prison. U.S. District Judge George J. Hazel has scheduled sentencing for May 31, 2017 at 2:00 p.m.
Khan, Hiter, and Foster each face a maximum sentence of 30 years in prison for wire fraud conspiracy, and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. Judge Hazel has scheduled the sentencing for Khan on July 31, 2017, at 9:30 a.m.; for Hiter on May 15, 2017, at 2 p.m.; and for Foster on June 21, 2017, at 9:30 a.m.
Bland Shivers, age 50, of New Bern, North Carolina, previously pleaded guilty to the wire fraud conspiracy and aggravated identity theft and is awaiting sentencing.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service National Capitol Region Multi-Agency Task Force, the Montgomery County Police Department and Prince George’s County Police Department for their investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Arun G. Rao, who is prosecuting the case.
Lawrence, Massachusetts Man Sentenced to 87 Months in Prison for Conspiring to Distribute FentanylRead the Press Release
CONCORD, N.H.: Elgid Guzman, 46, of Lawrence, Massachusetts was sentenced today to serve 87 months in federal prison for conspiring to distribute fentanyl, announced Acting United States Attorney John J. Farley.
According to court documents and statements in court, Guzman conspired to distribute in excess of 4 kilograms of fentanyl. Between May and August of 2016, Guzman made five sales of fentanyl to an individual who was cooperating with law enforcement officers. Following the sales, a search warrant was executed at Guzman’s Lawrence residence. Approximately $113,100 in cash was found hidden in a wall of the apartment.
Guzman, who previously pleaded guilty to the charge, will be placed on supervised release for five years following his release from prison. He also was ordered to forfeit the $113,100 in drug proceeds that had been seized from his residence.
“Fentanyl has been the cause of the majority of overdose deaths in New Hampshire. Thanks to the cooperation of the Drug Enforcement Administration and our local partners, law enforcement officers were able to prevent a large quantity of this potentially deadly drug from being sold on the street. I particularly want to commend the Manchester Police Department and the DEA for their excellent work in stopping this very significant drug trafficking operation,” said Acting United States Attorney Farley.
“The state of New Hampshire is faced with a fentanyl and heroin crisis unlike ever before,” said Special Agent in Charge Michael J. Ferguson. “Those suffering from a fentanyl and heroin substance use disorder need treatment and recovery, but those who are coming from out of state to distribute and profit from spreading this misery need to be held accountable. This investigation demonstrates the strength of collaborative law enforcement in New Hampshire and our strong partnership with the U.S. Attorney’s Office to aggressively seek and bring to justice anyone who distributes these drugs.”
This matter was jointly investigated by the United States Drug Enforcement Administration, the Manchester, New Hampshire Police Department, and the Lawrence, Massachusetts Police Department. The case was prosecuted by Assistant U.S. Attorney Seth R. Aframe.
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Lawrence Man Pleads Guilty to Money Laundering and Theft of Public FundsRead the Press Release
BOSTON – Leonardo Lara, 36, pleaded guilty yesterday to concealment money laundering, transacting in criminally-derived property, and theft of public funds. U.S. District Court Judge Rya W. Zobel scheduled sentencing for June 28, 2017.
On at least 10 occasions between January and March 2012, Lara converted fraudulent United States Treasury tax refund checks for his own use. Specifically, Lara deposited into his personal checking account at least 10 fraudulent tax refund checks payable in the names of taxpayers in Puerto Rico and elsewhere that resulted from the filing of fraudulent tax returns in tax years 2010 and 2011. Each of the tax refund checks was endorsed with the purported signature of the payee taxpayer and the notation “pay to the order of Leonardo Lara” along with the defendant’s signature. The payees of the tax refund checks did not earn the wages reported in the tax returns and were unaware that the tax returns had been filed in their names. Shortly after the tax refund checks cleared, Lara made cash withdrawals from the account. In total, he converted at least $67,871 in government funds for his own use.
In addition, Lara engaged in money laundering activity relating to the purchase of property. Specifically, on Feb. 12, 2012, Lara purchased a cashier’s check in the amount of $56,574 with funds withdrawn from an account controlled by him held in the name of JZE LLC. The bank account was funded, at least in part, by structured cash deposits, and the funds withdrawn from the bank had been derived, at least in part, from Lara’s theft of public funds. Lara used the cashier’s check to purchase property on Riverside Drive in Lawrence, Mass. Lara conducted a similar activity on March 16, 2012 – purchasing a cashier’s check for $60,657 and using it to purchase property on Florence Street in Lawrence. These transactions were designed to conceal the nature and source of the proceeds.
The charge of concealment money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $500,000 and forfeiture. The charges of transacting in criminally-derived property and theft of public funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, forfeiture and restitution. 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; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division in Boston; and Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. Assistant U.S. Attorney Linda M. Ricci of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Laurel Man Sentenced to over 19 Years in Federal Prison for Defrauding Victims of Millions of Dollars Through Internet Dating ScamRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Gbenga Ogundele a/k/a “Benson Ogundele,” age 58; of Laurel, Maryland, today to 234 months in prison, and sentenced his wife, Moji Popoola, a/k/a “Mojisola Oluwakemi Tin Popoola” and “Moji T. Popoola,” age 42, also of Laurel, to 18 months in prison, each followed by three years of supervised release, for conspiracies to commit wire fraud and money laundering arising from a scheme to defraud vulnerable victims of millions of dollars. Ogundele was also convicted of aggravated identity theft in connection with the scheme. Judge Grimm ordered that Mojisola Popoola’s supervised release is to be served in home detention. Judge Grimm also ordered Ogundele to forfeit $2,195,103.36, and ordered Mojisola Popoola to forfeit approximately $165,000 and to pay restitution of $34,100.
On March 20, 2017, Judge Grimm sentenced Moji Popoola’s brother, Babatunde Emmanuel Popoola, a/k/a “Emmanuel Popoola” and “Tunde Popoola, age 34, of Bowie, Maryland, to 12 years in prison, on the same charges. Judge Grimm ordered Babatunde Popoola to pay restitution of $465,170.76. Ogundele and the Popoolas were convicted on November 18, 2016, after a 17-day trial.
In a related case, Funmilayo Joyce Shodeke, age 67, of Burtonsville, Maryland, pleaded guilty on March 22, 2017 to conducting an unlicensed money transmitting business, and was sentenced to 13 months’ probation, and ordered to forfeit $29,900.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation.
According to the evidence presented at trial, and co-conspirators’ plea agreements, from January 2011 to May 18, 2015, members of the conspiracy searched online dating websites to initiate romantic relationships with vulnerable male and female individuals. They phoned, emailed, texted and used internet chat messenger services to form romantic relationships with the victims, who lived in Maryland and around the country.
Members of the conspiracy used false stories and promises to convince the victims to provide money to the conspirators, including fake hospital bills, plane trips to visit the victims, problems with overseas businesses and foreign taxes. Ogundele, the Popoolas, co-conspirators Olusegun Charles Ogunseye, Olufemi Wilfred Williams, Adeyinka Olubunmi Awolaja and others opened bank accounts, called “drop accounts,” in order to receive millions of dollars from the victims. The victims provided money to the defendants as a result of the false stories and promises, either depositing money directly into drop accounts controlled by the defendants, or by checks sent to the conspirators. The payments from victims ranged from $1,720 to $50,000. Ogundele, Babatunde Popoola, and others used victims’ names, bank account numbers or driver’s licenses in furtherance of the fraud scheme.
Ogundele, the Popoolas, Ogunseye, Williams, Awolaja and their co-conspirators dispersed money received from the victims by transferring funds to other accounts controlled by the conspirators, by obtaining cashier’s checks, and by writing checks to individuals or entities, in order to conceal the nature, source, and control of those assets.
Co-conspirator Victor Oyewumi Oloyede, age 42, of Laurel, Maryland, was also convicted at trial for his role in the fraud scheme. Oloyede was sentenced to 234 months in prison.
Co-conspirators Olusegun Charles Ogunseye, age 59 of Laurel, Maryland, Olufemi Wilfred Williams, age 28, of Owings Mills, Maryland, and Adeyinka Olubunmi Awolaja, Jr., age 34, of New Carollton, Maryland, each pleaded guilty to conspiracy to commit money laundering. Judge Grimm scheduled sentencing for Awolaja on June 12, 2017, for Ogunseye on July 25, 2017, and for Williams on July 27, 2017, all at 2:30 p.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Thomas P. Windom, who is prosecuting the case.
Las Cruces Man Pleads Guilty to Assaulting Federal and Local Law Enforcement OfficersRead the Press Release
ALBUQUERQUE – Richard Ruiz Leyva, 36, of Las Cruces, N.M., pled guilty today in federal court to assaulting federal and local law enforcement officers. Under the terms of his plea agreement, Leyva will be sentenced to 82 months in prison followed by a term of supervised release to be determined by the court.
Leyva was arrested in Aug. 2016, and charged by a criminal complaint with assaulting and resisting federally commissioned officers of the U.S. Marshals Service (USMS). According to the complaint, Leyva assaulted the officers by using his vehicle as a weapon by repeatedly running into law enforcement vehicles as the law enforcement officers attempted to conduct a traffic stop on Leyva. Leyva also drove his vehicle directly at a USMS Federally Deputized Task Force Officer (TFO) who had exited his vehicle after Leyva had rendered the TFO’s vehicle inoperable by crashing into the law enforcement vehicle.
During today’s proceedings, Leyva pled guilty to a felony information charging him with two counts of assaulting, resisting and interfering with federal officers and other law enforcement officers engaged in the performance of their official duties. In entering the guilty plea, Leyva admitted that on Aug. 19, 2016, he used his vehicle as a deadly weapon in an attempt to flee from federal and local law enforcement officers because of an outstanding warrant for his arrest. Leyva further admitted that he drove directly at a TFO who had exited his law enforcement vehicle, but turned when the TFO fired his weapon at Leyva in an attempt to stop Leyva.
Leyva remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces offices of the FBI and the USMS and the Las Cruces Police Department. Assistant U.S. Attorney Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Lake Andes Man Sentenced on Weapons ChargeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lake Andes, South Dakota, man convicted of Felon in Possession of Firearms was sentenced on March 20, 2017, by U.S. District Judge Karen E. Schreier.
Michael Shane Thompson, age 44, was sentenced to time served, six months of home confinement, and three years of supervised released. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Thompson was indicted for Felon in Possession of Firearms by a federal grand jury on March 9, 2016. He pled guilty on December 15, 2016.
On February 11, 2016, Yankton Sioux Tribal Police responded to a welfare check on children in Lake Andes. Law enforcement observed the residence was unfit for any child’s welfare and safety. The children’s parents appeared to be under the influence of methamphetamine. Law enforcement observed drug paraphernalia and a sawed-off 12-gauge shotgun. A search warrant was obtained, and more firearms and miscellaneous ammunition were found in the home and garage.
This case was investigated by Yankton Sioux Tribal Police, and Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Kingsport Residents Sentenced for Federal Fraud CrimesRead the Press Release
GREENEVILLE, Tenn. – On Mar. 22, 2017, Jimmy Allen Hulse, 56, and Randy Gerald Harkleroad, 49, both of Kingsport, Tenn., were sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge to serve time in federal prison for their roles in a mail and wire fraud conspiracy. Hulse received a prison sentence of 22 months while Harkleroad received 12 months. Both were ordered to complete three years on supervised release, pay restitution of $327,612, and pay $100 special assessments.
Hulse and Harkleroad pleaded guilty to an information charging them with conspiring to commit mail fraud and wire fraud. In the plea agreement on file with U.S. District Court, they admitted that over a two-year period, beginning in mid-2013, they submitted 585 false claims to Goodman Manufacturing, a manufacturer of water heaters in Houston, Tex. The false claims generated payments of $310,994 for labor and a loss of $16,618 in parts credit for water heater warranty work that was never performed. Hulse worked for East Coast Metal Distributors, which sold Goodman water heaters and extended warranty plans. Harkleroad was the owner of Point Blank Heating and Air, a heating, ventilation, and air conditioning contractor.
Agencies involved in this investigation included the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigations. Helen Smith, Assistant U.S. Attorney represented the United States.
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Jury Convicts Two in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH — Following a two-day jury trial before U.S. District Judge Reed C. O’Connor, a federal jury has convicted two Fort Worth men on felony drug offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
David Piper, Jr., 52, and Carlos Cortinas, 39, were each convicted late yesterday on one count of conspiracy to possess with intent to distribute methamphetamine. The drug trafficking conspiracy count carries a maximum statutory penalty of life in federal prison and a $10 million fine. Sentencing is scheduled for July 17, 2017.
Co-conspirator Chadwick Hernandez, 32, pleaded guilty in February 2017 to the same offense and is scheduled to be sentenced June 26, 2017.
The government presented evidence at trial that beginning in March 2015 until January 20, 2016 Piper and Cortinas possessed with the intent to distribute 500 grams or more of methamphetamine. Evidence elicited at trial showed that methamphetamine distributors from Arlington, including Cortinas, transported multiple pounds of methamphetamine to Piper for re-distrubution of methamphetamine in Bolivar, Missouri.
DEA Fort Worth investigated with the assistance of DEA’s Springfield and Tulsa offices, Arlington Police Department, Fort Worth Police Department, North Richland Hills Police Department, Oklahoma DPS, and Polk County, Missouri Sheriff’s Office. Assistant U.S. Attorneys Aisha Saleem and Shawn Smith prosecuted.
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Joplin Man Pleads Guilty to Attempted Armed Bank Robbery Foiled by CustomerRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man pleaded guilty in federal court today to the attempted armed robbery of Pinnacle Bank in Joplin.
Sean LaDue, 29, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charges contained in a Jan. 18, 2017, superseding indictment.
By pleading guilty today, LaDue admitted that he used a firearm to rob Pinnacle Bank, 1316 E. 32nd Street, Joplin, on Nov. 14, 2016. LaDue also pleaded guilty to using a firearm during a crime of violence.
LaDue and an accomplice entered the bank at approximately 3:50 p.m. and announced, “This is a robbery, get down!” The sole customer of the bank struggled with one of the robbers in the bank lobby. During the struggle, the robber produced a firearm and fired three shots. Both robbers then fled from the bank without taking any money.
Police officers located and arrested LaDue after a brief foot chase on Nov. 16, 2016.
Under federal statutes, LaDue is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of up to life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Joplin, Mo., Police Department and the FBI.
Jefferson City Man Pleads Guilty to Burglary Scheme, Possessing Stolen FirearmsRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to burglarize residences in Columbia, Mo., and sell the stolen items – including firearms.
Henry Anthony Williams, also known as “Foolish,” 27, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to possessing stolen firearms and to participating in a wire fraud conspiracy.
According to today’s plea agreement, Williams admitted that he possessed firearms that had been stolen during the burglary of a residence in Columbia. The investigation began on Sept. 17, 2014, when Moberly, Mo., police officers received a report from a local gun store that someone was trying to sell one of the stolen firearms – a customized Remington rifle – to the store’s owner. The person who tried to sell the stolen rifle told officers that he had purchased it from another man, identified as “LJ,” who in turn said he purchased it from Williams. LJ told officers that Williams had other firearms for sale.
On Sept. 24, 2014, LJ arranged to meet Williams in the Hooters parking lot in Columbia to purchase another firearm. In a controlled undercover transaction, LJ was provided $350 and purchased a Marlin .22-caliber rifle and a Western Field 12-gauge shotgun from Williams. The Marlin rifle was among the firearms stolen in the Columbia burglary.
Williams also admitted that he was part of a conspiracy to burglarize residences in the Columbia area, primarily targeting college housing and electronic equipment. Williams and others burglarized residences and sold the stolen merchandise to a coconspirator, who sold the items on eBay.
Williams admitted that he committed at least one of the three residential burglaries that occurred on Nov. 17, 2015, among residences on Commercial Drive in Columbia.
Under federal statutes, Williams is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Columbia, Mo., Police Department, the FBI, the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jamaican Man Indicted on “Sweepstakes Fraud” Charges Targeting Senior CitizensRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tackya Whyte, age 41, a Jamaican citizen residing in Richmond, Virginia, was indicted by a federal grand jury on conspiracy, mail fraud, and money laundering charges.
Whyte was arrested on February 6, 2017, in Richmond and ordered detained by United States Magistrate Judge Susan E. Schwab following a February 14, 2017, preliminary hearing in Harrisburg.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Whyte and unidentified fraudsters perpetrated a scheme to defraud senior citizens that were falsely told they had won a multi-million-dollar international sweepstakes prize. The indictment further alleges that the purported winners were directed to send Western Union and MoneyGram money transfers and money orders payable to Whyte, and others, to pre-pay taxes and other fictitious expenses in order to collect the non-existent cash prizes. The indictment also alleges that Whyte re-transferred the fraud proceeds to conspirators in Jamaica.
The case was investigated by the Harrisburg Office of the United States Postal Inspection Service. Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.
The United States Attorney and United States Postal Inspectors remind all citizens that they should never make an advance payment of any kind on the promise of a sweepstakes prize, loan or grant.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Mail fraud and money laundering are each punishable by up to 20 years’ imprisonment. Conspiracy to commit mail fraud and money laundering carry a five-year statutory maximum, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Indianapolis man sentenced to 15 years’ imprisonment for unlawful possession of a firearmRead the Press Release
Armed career criminal had three prior felonies on his record
PRESS RELEASE
Indianapolis - United States Attorney Josh J. Minkler today announced the sentencing of an Indianapolis man for being an armed career criminal, having illegally possessed a firearm. John Foster, 48, Indianapolis, was sentenced to 15 years’ imprisonment by U.S. District Judge Sarah Evans Barker in federal court.
“Keeping our communities safe from violent criminals like Mr. Foster remains a top priority at the U.S. Attorney’s Office,” said Minkler. “The narrative is simple; if you illegally possess a firearm and terrorize Hoosier neighborhoods, you will be arrested, held without bond, convicted and sent to federal prison.”
Foster was confronted by officers from the Indianapolis Metropolitan Police Department (IMPD) on October 5, 2015, on the Southside of Indianapolis. Officers saw Foster driving a stolen SUV near the intersection of Southport Road and South Meridian Street. When he saw the officers following him, he drove through the front yard of a business and fled south on Meridian Street. Several weeks prior, Foster walked away from a work release facility in Oldham County, Kentucky.
After a short pursuit, IMPD officers stopped Foster in the parking lot of Perry Meridian Middle School where they observed him holding a pistol in his hand as he got out of the stolen vehicle. During the time of the incident, school was in session and several children were present. The school was placed on lockdown until the incident was over.
Foster cannot legally possess a firearm because he has three prior violent felony convictions. He was convicted of dealing cocaine in 2006, burglary in 1988, and robbery in 1986, all in Marion County.
The Armed Career Criminal Act mandates a minimum 15-year sentence to anyone possessing a firearm after three prior convictions for serious drug offenses or violent felonies.
The Indianapolis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
“The defendant’s disregard for the safety of our community by unlawfully possessing a firearm, posed a threat and underlines the necessity of his spending significant time removed from society,” said Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners at IMPD to ensure that individuals who are threating our streets with firearms violence are brought to justice.”
According to Assistant United States Attorney Jeffrey D. Preston, who prosecuted this case for the government, Foster must serve three years of supervised release following his sentence.
INTERPOL Washington to Attend Counter ISIL Ministerial MeetingRead the Press Release
Department of StateINTERPOL Washington Acting Director Wayne Salzgaber will attend a meeting of the Ministers of the Global Coalition working to defeat ISIS on March 22, 2017, at the U.S. Department of State. Secretary of State Rex Tillerson will host the 68 foreign ministers and senior Coalition leaders from around the world.
As one of the international organizations represented in the Coalition, INTERPOL, the largest international police organization, will be represented by INTERPOL Secretary General Jϋrgen Stock. INTERPOL Washington is the U.S. National Central Bureau representing the United States in INTERPOL. INTERPOL provides a global framework of resources for combating transnational crime and terrorism, including leading a multinational fusion cell and analytical database containing biometric and other data of value to law enforcement and border control authorities responsible for determining threats from foreign fighters within their jurisdictions.The Ministerial is intended to accelerate international efforts to defeat ISIS in the remaining areas it holds in Iraq and Syria and to maximize pressure on its branches, affiliates, and networks. The Coalition regularly meets at the Small Group level to coordinate and enhance combined efforts to counter ISIS.
The ministerial participants will discuss detailed priorities for the Coalition’s multiple lines of effort, including military, foreign terrorist fighters, counterterrorist financing, counter-messaging, and stabilization of liberated areas, to increase the momentum of the campaign. Ministers will also discuss the ongoing humanitarian crises in Iraq and Syria that are affecting the region.
For more information on the Global Coalition, please visit the State Department webpage: https://www.state.gov/s/seci/ .
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to the International Criminal Police Organization on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 federal, state, local, and tribal law enforcement agencies in the United States.
Houston Man Guilty in Beaumont IH-10 Drug TraffickingRead the Press Release
BEAUMONT, Texas – A 41-year-old Houston man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Fabian Paredes Alvarez, also known as Fabian Hernandez Alvarez, has pleaded guilty to conspiracy to possess with intent to distribute methamphetamine today before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, on Dec. 28, 2015, law enforcement officers received information that a described vehicle would be traveling to Beaumont, Texas to deliver methamphetamine. Officers observed the described vehicle and performed a traffic stop on the vehicle in the Eastern District of Texas. The driver was identified as Cody Drawhorn and there were three other passengers in the vehicle. A drug-detecting K-9 was then deployed to perform an open-air search of the vehicle and while arresting one of the passengers on an active warrant, officers located a used glass smoking pipe with residue believed to be methamphetamine in her purse. Drawhorn provided the officers with consent to search his vehicle. The vehicle was then searched and officers located approximately 6.5 ounces of methamphetamine packaged in 20 individually prepackaged baggies. Additionally, officers located two firearms inside the vehicle. The first one, which was identified as a black, Hi-Point.45 caliber semi-automatic pistol, bearing serial number X4271020, loaded with nine live rounds in plain view between the driver and front passenger seat. The second firearm also located inside the vehicle was identified as a black, Davis Industries P .380 caliber automatic pistol, bearing serial number AP156106, loaded with five rounds. Additional ammunition, small amounts of methamphetamine and methamphetamine paraphernalia was also located inside the vehicle. Drawhorn later advised officers that he brought one of the passengers to Beaumont to drop off some methamphetamine there after they picked it up in northwest Houston from Drawhorn’s supplier he knew as “Rob Bos.” Drawhorn further admitted that he had been selling approximately one pound of methamphetamine per week that he obtained from “Rob Bos” to pay his bills. Phone analysis identified the person whom Drawhorn was receiving methamphetamine was Robert Borowski. The defendants were indicted by a federal grand jury on Sep. 7, 2016. Drawhorn pleaded guilty on Mar. 20, 2017. Robert Edward Borowski pleaded guilty on Mar. 15, 2017.
Under federal statutes, the defendants face up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) as a joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, weapons trafficking offenders, money laundering organizations, and those individuals responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michelle Englade.
Honduran National Sentenced for Immigration OffenseRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DENIS A. MUNOZ-RODRIGUEZ, age 33, a native of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Court Judge Ivan L.R. Lemelle sentenced MUNOZ-RODRIGUEZ to time served, followed by one year of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on November 3, 2016, MUNOZ-RODRIGUEZ was found in the United States after having been previously deported on January 16, 2003. He also had not received permission from the Attorney General of the United States nor the Secretary of the Department of Homeland Security to reenter.
Acting U.S. Attorney Evans praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Holland Couple Pleads Guilty in Connection with Fraudulent Receipt of over $1,000,000 in Veterans Benefits and Postal Workers CompensationRead 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 Richard Klaffka, 59, and his wife, Cathleen Klaffka, 62, both of Holland, NY, pleaded guilty before U.S. District Judge Richard J. Arcara in connection with Richard Klaffka’s receipt of over $1,000,000 in benefits from the Department of Veterans Affairs (VA) and the Department of Labor under false pretenses. Richard Klaffka pleaded guilty to wire fraud and faces a maximum penalty of 20 years in prison and a $250,000 fine. Cathleen Klaffka pleaded guilty to misprision of a felony, which is punishable by maximum penalty of three years in prison. The couple was also ordered to pay $1,237,427 in restitution.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that in 2006, Richard Klaffka told the VA that, due to an injury connected with his military service in 1978, he was disabled, confined to a wheelchair and unable to engage in daily activities like walking, driving, and dressing himself. To promote the fraud, Cathleen Klaffka pushed Richard Klaffka in a wheelchair when at the VA hospital in order to support Richard’s false claim regarding his mobility limitations. In fact, both knew that Richard Klaffka was able to walk without assistance and regularly engaged in extensive physical activities including hiking, riding a bike, and pitching iron horseshoes.
Similarly, in order to get workers compensation benefits from his employment with the United States Postal Service, the defendant falsely claimed that his mobility was limited due to a work injury and that he was only able to walk with the assistance of a cane. All told, the Klaffka’s received $1,237,427 in government benefits to which they were not entitled. The investigation was triggered by an anonymous call to a fraud hotline.Acting U.S. Attorney Kennedy noted that the defendants “sought fraudulently to enrich themselves by exploiting for their own personal financial benefit a system intended to provide a safety net for disabled American veterans and workers. Through these pleas, the government, in addition to forcing the couple to repay the money they essentially stole, will also seek to hold them liable for interest—in the form of their liberty—when it comes time for sentencing.”
USPS-OIG Special Agent-in-Charge Monica Weyler stated, “The U.S. Postal Service spends more than $1-billion dollars per year on workers compensation related expenses. The majority of that money goes to unfortunate postal employees who suffered legitimate on the job injuries. However, as the evidence in this case shows, there are a few employees who decide to take advantage of the federal workers compensation program for their own personal gain. When special agents with the U.S. Postal Service Office of Inspector General receive allegations of workers compensation fraud, they will conduct a thorough investigation with our law enforcement partners, and seek criminal prosecution of those found to be committing fraud. To report workers compensation fraud, or any other crimes committed by postal employees, contact us at www.uspsoig.gov or 888-USPS-OIG.”
The pleas are the result of an investigation on the part of Special Agents of the United States Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, under the direction of Donna L. Neves; the Department of Veterans Affairs Police Department, under the direction of Chief Jeremy Novak; U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Michael C. Mikulka, Special Agent-in-Charge of the New York Region; and the United States Postal Service, Office of Inspector General, under the direction of Monica Weyler, Special Agent-in-Charge, Eastern Area Field Office.
Sentencing for the couple is scheduled for July 26, 2017, at 1:00 p.m. before Judge Arcara.
Holdenville Man Pleads Guilty to Delay or Destruction of Mail by Postal EmployeeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that MIKEL DWAYNE MEEK, age 48, of Holdenville, Oklahoma, pled guilty to DELAY OR DESTRUCTION OF MAIL BY POSTAL EMPLOYEE, in violation of Title 18, United States Code, Section 1703, punishable by up to 5 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about November 22, 2016 in the Eastern District of Oklahoma, the Defendant, a United States Postal Service employee, did willfully, knowingly and unlawfully secrete, destroy, detain and open a package entrusted to him and which came into his possession to be conveyed by mail, while performing his assigned duties as an employee of the United States Postal Service.
The charge arose from an investigation by the United States Postal Service Office of Inspector General.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant remains on release status pending a sentencing hearing.
Assistant United States Attorney John David Luton represented the United States.
Harrisburg Man Charged with Drug and Firearms OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Timothy Madison, age 29, of Harrisburg, Pennsylvania, was indicted by a federal grand jury for possession of heroin with intent to distribute and possession of firearms in furtherance of drug trafficking.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Madison was in possession of heroin and two handguns, a 9mm Kel-Tec and .40 caliber EEA Witness, at his home on April 14, 2016.
The case was investigated by the Harrisburg Police Department, the Pennsylvania Probation and Parole Board, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Scott Ford is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Garland, Texas, Man Sentenced to 144 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
DALLAS — Jeffrey David Mitchell, 54, of Garland, Texas, was sentenced today by U.S. District Judge Ed Kinkeade to 144 months in federal prison and 10 years supervised release following his guilty plea in August 2015 to one count of transportation of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Mitchell has been in federal custody since his arrest in May 2015 on related charges.
According to documents filed in the case, the investigation began in late April 2015 resulting from a CyberTip from the National Center for Missing and Exploited Children (NCMEC) regarding the upload of images depicting child pornography to an electronic group and to various email accounts. The investigation led law enforcement to secure and execute a search warrant on Mitchell’s home on April 29, 2015; Mitchell and his parents were home during the search.
Mitchell admitted he possessed child pornography and that he sent and received child pornography via his email account. He confirmed that he created and used multiple email accounts to trade the child pornography, and that images of child pornography were on his desktop computer located in his bedroom.
Law enforcement seized several media items from the residence, and a forensic analysis and review of Mitchell’s email accounts revealed approximately 750 images and 100 videos of child pornography. Some of those images and videos depict sadistic/and/or violent content, and some of the files depict infants and toddlers.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI, Collin County Sheriff’s Office and Garland Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Founder of Non-Profit Organization Sentenced to 36 Months in Prison for Defrauding Parents of Abducted ChildrenRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that PETER SENESE, the Founding Director of the I CARE Foundation (“I CARE”), a purported non-profit organization allegedly dedicated to preventing child abduction and trafficking, was sentenced in Manhattan federal court today by U.S. District Naomi R. Buchwald to 36 months in prison for wire fraud and conspiracy to commit wire fraud. In connection with the scheme, SENESE defrauded parents of international abduction victims by falsely representing that he could find and return the children to the United States in exchange for payments to fund his purported international rescue operation. SENESE pled guilty September 8, 2016.
Manhattan Acting U.S. Attorney Joon H. Kim said: “In this most cruel and heartbreaking criminal scheme, Peter Senese preyed on the most vulnerable and desperate victims, anguished parents of abducted children. Senese did more than just steal his victims’ money – he robbed them of hope. For seeking personal profit out of others’ pain and tragedy, Senese has been convicted of federal crimes and will now do time in a federal prison. We hope this prosecution provides some measure of justice to those who were so callously victimized by Senese.”
As alleged in the Superseding Indictment and in other documents filed in federal court:
Between November 2013 and February 2015, on his websites (www.stopchildabduction.org and www.petersenese.com) and elsewhere, SENESE claimed falsely that I CARE was “a self-funded not-for-profit 501-C-3 corporation” that successfully “reunited numerous internationally kidnapped children” with their parents “while protecting an exponentially larger number of children from abduction.” SENESE credited I CARE’s success to the “great efforts, financial, legal, and investigative resources” of individuals associated with I CARE, including a team of former members of the U.S. Army component Delta Force. In one instance, SENESE represented to a parent-victim that he could recover her child from India, appearing on a local radio program with the parent-victim, and sending numerous text messages and emails to the parent-victim stating falsely that he was in a “remote location” in India, was communicating with her child, and that the child would be returned to the United States in a matter of hours or days. Though he never traveled overseas or communicated with the child, SENESE collected over $70,000 from the parent-victim.
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In addition to the prison sentence, SENESE, 51, of Brooklyn, New York, was ordered to pay restitution and forfeiture in the amount $85,100.
Mr. Kim praised the outstanding work of the FBI for its investigative efforts and ongoing support and assistance with the case.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jaimie L. Nawaday is in charge of the case.
Founder and Former CEO of Technology Firm Charged with Defrauding Investors Out of $6 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment charging MARYSE LIBURDI with defrauding investors out of more than $6 million through a technology company founded and operated by LIBURDI. The defendant was arrested by Italian authorities in Rome, Italy, in April 2016, and arrived in the Southern District of New York yesterday following her extradition. LIBURDI was arraigned this afternoon and the case has been assigned to U.S. District Judge Denise Cote.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Maryse Liburdi repeatedly lied to investors in her tech company, telling them the company was profitable when it was in fact generating no revenue. Rather than using investor money to operate her company, she was allegedly spending it on herself and her family, paying for personal expenses like spas and salons, wine, luxury clothing, and rental fees on a three-bedroom Manhattan apartment.”
FBI Assistant Director William F. Sweeney Jr. said: “We see this behavior time and time again--fraudsters intentionally misrepresenting a company's financials to lure investors down a path from which it's particularly hard to return. Today, Maryse Liburdi is charged with allegedly defrauding investors out of more than $6 million over the course of several years, all the while converting much of the money to her own personal and extravagant use. As long as this type of criminal activity continues to go on, we will continue to go after those responsible for it.”
According to the allegations contained in the criminal Complaint and Indictment filed against LIBURDI:[1]
Since at least in or about 2008, LIBURDI perpetrated a multi-year scheme to defraud individuals into investing more than $6 million in a technology company (the “Company”) founded and run by LIBURDI. LIBURDI repeatedly made misrepresentations to investors about the Company’s revenue and assets, manipulated Company bank accounts to hide the Company’s true financial condition and, contrary to LIBURDI’s express promises to the investors, converted hundreds of thousands of dollars of investor funds to LIBURDI’s own use, including rent for LIBURDI’s Manhattan apartment and to purchase luxury clothing and other personal items.
While LIBURDI repeatedly told investors that the Company had millions of dollars in revenue, a review of the Company’s bank records shows that, from at least 2008 until the Company ceased operating in January 2015, the Company earned little or no revenue. Moreover, as reflected in the Company’s bank records, LIBURDI misappropriated investor funds, transferring over $1 million to her and her former husband’s bank accounts and to pay LIBURDI’s personal expenses, including luxury clothing. For example, LIBURDI used funds from one victim investor for, among other things, transfers to a personal bank account in the name of LIBURDI and her former husband; rental payments for LIBURDI’s three-bedroom Manhattan apartment; payments for personal credit cards; and substantial personal expenditures on corporate credit cards, including, among other things, expenditures at various retail clothing, accessories, and cosmetics stores, salons and spas, and wine and liquor stores.
In order to hide her scheme, LIBURDI manipulated the Company’s bank accounts by, on at least three occasions, writing checks for hundreds of thousands of dollars drawn on accounts with insufficient funds in order to fraudulently inflate the balance of a Company bank account and thereby hide the Company’s true cash balance from the investors. For example, in October 2013, LIBURDI wrote and deposited into the Company’s bank account a $700,000 check drawn on a different account that had a balance of only about $2,000. LIBURDI then falsely represented to the victims that the Company’s bank account held approximately $700,000 and showed investors a bank statement for the Company account listing the inflated balance.
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LIBURDI, 45, formerly of Victoria, Minnesota, and New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI. He also thanked Italian law enforcement authorities, including Interpol Rome, for their assistance in the arrests, as well as the Department of Justice’s Attaché at the U.S. Embassy in Rome and the DOJ Office of International Affairs.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Elisha J. Kobre is in charge of the prosecution.
The charges contained in the Complaint and the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and Indictment and the description of the Complaint and Indictment set forth below constitute only allegations and every fact described should be treated as an allegation.
Former Tax Preparer in Belleville Pleads Guilty to Submitting False Claims Against the United States for Preparation of False Federal ReturnsRead the Press Release
Victoria Foster, 55, of East St. Louis, Illinois, entered pleas of guilty to two counts of false claims against the United States by a paid tax preparer assisting in the preparation of a false federal tax return, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Victoria Foster worked at Elite Tax in Belleville. As part of the plea, Foster admitted that for the 2015 tax year she filed false returns that caused a loss in excess of $180,000. Victoria Foster faces a prison sentence of up to ten years, a fine of up to $500,000, and up to three years of supervised release with mandatory restitution. Sentencing is scheduled for June 27, 2017.
The prosecution is the result of an investigation by the Internal Revenue Service/Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former President of Telexfree Sentenced for Billion Dollar Pyramid SchemeRead the Press Release
BOSTON – The former President of Telexfree, Inc., a global pyramid scheme disguised as an internet telecom company, was sentenced today in U.S. District Court in Worcester.
James Merrill, 55, of Ashland, was sentenced by U.S. District Court Judge Timothy S. Hillman to six years in prison and three years of supervised release. In October 2016, Merrill pleaded guilty to one count of wire fraud conspiracy and eight counts of wire fraud. He also agreed to forfeit approximately $140 million and other assets.
“Despite knowing that Telexfree was a pyramid scheme, Mr. Merrill profited for years at the expense of the hard-working individuals who invested in the fraudulent company,” said Acting U.S. Attorney William D. Weinreb. “For the hundreds of thousands of investors, here and around the world, who were taken in by the lies promoted by Mr. Merrill and Telexfree, today’s sentence provides a measure of justice. Mr. Merrill’s greed damaged the livelihoods of thousands of people who were simply struggling to make ends meet.”
“While the harm and damage James Merrill caused by stealing more than $3 billion from innocent investors can never be repaired, his victims in more than 240 countries around the world can take some small measure of satisfaction that he is now looking at six years in federal prison and a substantial forfeiture as repayment for his crimes.” said Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston. “HSI special agents will continue to aggressively investigate those who seek to profit by taking advantage of others.”
Between February 2012 and April 2014, Merrill was the President of TelexFree, Inc., which sold a “voice-over-internet-protocol” (VOIP) telephone service, similar to Skype, for which customers could sign up on a website maintained by TelexFree. TelexFree, however, was a pyramid scheme; all of the money TelexFree paid out came, not from sales of its product, but from new participants paying TelexFree to sign up as “promoters” for the company.
TelexFree’s website prominently featured Merrill as the leader of the company and as an experienced businessman in the telecom field. As the website advertised at various times, participants paid $1,425 or $339 to sign up with TelexFree, after which they would be paid $100 per week or $20 per week to post classified ads every day on the internet. The company couched those payments in terms of “buying back” unused VOIP packages the participants were unable to sell, but the reality was that participants were guaranteed an annual return of over 200% on their money without having to sell anything. Among other things, emails showed Merrill’s awareness that the ad-posting was intended only to ensure that people visited TelexFree’s web site as opposed to generating actual retail sale of the VOIP product. Participants spent minutes a day cutting and pasting ads into various classified ad sites provided by TelexFree, which were already saturated with thousands of ads posted by earlier participants.
Participants were also given substantial financial incentives to recruit others to join the scheme. To receive bonuses for recruiting others, in theory each participant needed to have one VOIP customer. But in reality, participants met this requirement simply by buying the product themselves and, in 97% of instances, never using it. In this way, TelexFree created the illusion that it had hundreds of thousands of legitimate VOIP customers. On paper the company sold about 12.4 million VOIP plans, but in reality it had a tiny number of legitimate customers, an even smaller number of which had actually paid money to TelexFree for the service. Overall, the nearly 2 million who participated in TelexFree made 96% of their compensation, not from selling the company’s VOIP service, but from ad-posting and recruiting others to join.
TelexFree derived only a fraction of its total revenue in a two-year period from sales of VOIP service – approximately 2%. The remaining 98% came from new people buying into the scheme. TelexFree could only pay the returns it had promised to its existing promoters by bringing in money from newly-recruited promoters.
Beginning in late 2012, involvement in TelexFree spread rapidly, and by April 2014, well over a million people worldwide had signed up with the company. This included over 20,000 people in Worcester, Mass. alone, and thousands more in Boston, Framingham, Chelsea and other communities statewide. Meanwhile, beginning in 2013, Merrill received increasingly frequent warnings that the company was a pyramid scheme. Beginning in August 2013, Merrill began to take steps to change how the company did business, but Merrill never alerted the public, even though over a million people signed up for TelexFree between that month and TelexFree’s collapse.
In December 2013, Merrill wired himself and two co-conspirators a total of $10 million from TelexFree accounts. On April 14, 2014, Telexfree filed for bankruptcy, at which point it owed approximately $6 billion to its participants, while having only about $120 million on hand (about 2% of what it owed). At that point, approximately 1,855,000 participants worldwide lost money in the scheme, with total losses of about $3,045,000,000. Overall, these victims came primarily from the United States (all 50 states), Brazil, China, Portugal, Peru, other Central and South American nations, Italy, and Russia, with smaller victim populations in dozens of other countries.
Acting U.S. Attorney Weinreb and HSI SAC Etre made the announcement today. The U.S. Attorney’s Office also received valuable assistance from the Federal Bureau of Investigation, the Brazilian Federal Police based in Vitoria, Brazil, the Securities & Exchange Commission, and the Massachusetts Securities Division of the Office of the Secretary of the Commonwealth of Massachusetts. Assistant U.S. Attorneys Andrew E. Lelling and Neil J. Gallagher, Jr., of Weinreb’s Economic Crimes Unit are prosecuting the case.
Former Oil Company President Charged with Orchestrating $30 Million Stock Manipulation SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker announced a 13 count indictment charging RYAN RANDALL GILBERTSON, 41, founder of Dakota Plains, Inc., DOUGLAS VAUGHN HOSKINS, 48, and NICHOLAS HARRIS SHERMETA, 49, with wire fraud stemming from a complex stock manipulation scheme that resulted in the company owing more than $30 million in fraudulent bonus payments. The defendants are expected to make their initial appearances in U.S. District Court in Minneapolis within the next week.
“This fraud scheme, like other financial crimes involving the mail, erodes public trust and threatens the integrity of the U.S. Mail," said Craig Goldberg, Inspector in Charge of the U.S. Postal Inspection Service, Denver Division, which includes Minnesota. "It is critical we make every effort to protect shareholders from being cheated. To help protect the public and ensure America's confidence in the U.S. Mail, Postal Inspectors are committed to working with our federal, state and local partners to aggressively investigate any fraud in which the mail is used.”
“IRS Criminal Investigation is committed to unraveling complex financial transactions where individuals, such as Ryan Randall Gilbertson, Douglas Vaughn Hoskins, and Nicholas Harris Shermeta operated a stock scheme to defraud investors,” stated Shea Jones, Special Agent in Charge of IRS-CI’s St. Paul Field Office. “Those individuals who engage in this type of stock manipulation fraud should know they will not go undetected and will be held accountable."
“As alleged, each of the defendants played a key role in this complex fraud scheme,” said Special Agent in Charge Richard T. Thornton of the Minneapolis Division of the FBI. “The FBI will continue to work closely with our law enforcement partners to ensure those who engage in this type of criminal behavior will be brought to justice.”
According to the indictment, in December 2008, GILBERTSON and his business partner (identified in the indictment as “Individual A”) founded Dakota Plains, Inc. (Dakota Plains), a privately held Minnesota corporation that owned and operated a transloading facility in New Town, North Dakota, for loading crude oil onto trains for transport to oil refineries.
According to the indictment, in January 2011, GILBERTSON and his partner caused Dakota Plains to issue a $1.9 million cash dividend to shareholders, from which GILBERTSON and his ex-wife received nearly $450,000 in dividend payments. That same month, GILBERTSON and his partner caused Dakota Plains to issue $3.5 million in promissory notes (the “Senior Notes”) from which GILBERTSON purchased a $1 million promissory note and another $100,000 promissory note in the name of Total Depth Foundation, GILBERTSON’S nonprofit corporation. In April 2011, GILBERTSON and his partner caused Dakota Plains to issue $5.5 million in promissory notes (the “Junior Notes”) in which GILBERTSON instructed the company to include an “additional payment” provision stating that the noteholders would receive bonus payments based on the price of Dakota Plains’ stock at the time of an initial public offering (“IPO”). From the Junior Notes, GILBERTSON purchased a $2 million promissory note and another $250,000 promissory note on behalf of Total Depth Foundation.
According to the indictment, in November 2011, at GILBERTSON’S direction, Dakota Plains combined the Senior Notes and Junior Notes into a series of consolidated promissory notes (the “Consolidated Notes”). GILBERTSON then directed Dakota Plains to alter the “additional payment” provision from the Junior Notes to (a) apply to the new total value of the Consolidated Notes; and (b) apply not only in the event of an IPO but also if Dakota Plains became public via a reverse merger. Specifically, the “additional payment” provision provided that if Dakota Plains’ average stock price exceeded $2.50 per share during the first 20 days of public trading, the noteholders would receive bonus payments which would increase relative to the average stock price.
According to the indictment, as part of the scheme, in late 2011 and early 2012, GILBERTSON arranged for Dakota Plains to become a publicly traded company by entering into a “reverse merger” agreement with MCT Holding Corporation (“MCT”), a public shell company that owned a single defunct tanning salon in Salt Lake City, Utah. At GILBERTSON’S direction, HOSKINS, who was a player and manager for GILBERTSON’S polo team, purchased 50,000 freely trading shares of MCT stock and opened a trading account with a broker in Salt Lake City, Utah, which would allow him to sell the MCT stock. HOSKINS, who had no prior investing experience or assets and a significant amount of debt, received $30,000 from GILBERTSON to purchase the stock. On March 23, 2012, following the merger of Dakota Plains with MCT, Dakota Plains Holdings became a publicly traded company.
According to the indictment, on the first day of public trading, HOSKINS offered to sell his newly acquired shares for an inflated price of approximately $12 per share at GILBERTSON’S direction, and continued to do so throughout the first 20 days of trading following the reverse merger. During this same time period, SHERMETA, who had a series of bogus consulting agreements with GILBERTSON, began purchasing shares of Dakota Plains stock on behalf of both himself and his clients at inflated prices without their knowledge. Throughout the 20-day period following the reverse merger, GILBERTSON, with the help of SHERMETA and HOSKINS, manipulated the price of Dakota Plains stock to increase the average trading price to $11.30 per share which, as stated in the “additional payment” provision in the Consolidated Notes, triggered a bonus payment of approximately $32,851,800 to GILBERTSON and the other noteholders. GILBERTSON, who controlled 40 percent of the Consolidated Notes, was entitled to more than $12 million in bonus payments.
This case is the result of an investigation conducted by the FBI, Criminal Investigation Division of the IRS, and the United States Postal Inspection Service.
This case is being prosecuted by Assistant United States Attorneys Joseph H. Thompson and Kimberly A. Svendsen.
Defendant Information:
RYAN RANDALL GILBERTSON, 41
Delano, Minn.
Charges:
- Wire Fraud, 13 counts
DOUGLAS VAUGHN HOSKINS, 48,
Wayzata, Minn.
Charges:
- Wire Fraud, 7 counts
NICHOLAS HARRIS SHERMETA, 49
Minnetonka, Minn.
Charges:
-
Wire Fraud, 5 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Jefferson County Resident Indicted on Identity Theft and Student Loan Fraud ChargesRead the Press Release
St. Louis, MO – On October 12, 2016, a federal grand jury returned a ten-count indictment charging Malachi Duncan, a/k/a "Demarcus Brewster" with multiple fraud charges for orchestrating a scheme to commit student loan fraud, mail fraud, bank fraud, social security fraud and identity theft. Duncan had his first appearance in federal court today.
On March 1, 2017, Duncan, a former resident of Hillsboro, Missouri, was arrested by the United States Marshals Service in Memphis, Tennessee. At the time of his arrest, the defendant was living in Memphis and had enrolled at the University of Memphis under an assumed name.
According to the indictment, Duncan fraudulently used the pedigree information of co-conspirator "Demarcus Brewster" to enroll and gain admission as a full-time student during the 2013-2014 school year at Jefferson College in Hillsboro, MO. As part of the scheme, Duncan fraudulently used Brewster’s identity to obtain federal financial aid, student housing and on-campus employment.
Duncan is charged with: one felony count of conspiracy, two felony counts of identity theft, two felony counts of aggravated identity theft, one felony count of fraudulent production of an identification document, three felony counts of social security fraud and one felony count of bank fraud.
If convicted, Duncan faces penalties of up to 30 years in prison and/or fines up to $1 million. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
In June 2016, co-conspirator Demarcus Brewster entered a plea of guilty to one count of conspiracy to commit student loan fraud. On September 27, 2016, United States District Judge John A. Ross sentenced Brewster to a seven-month term of imprisonment and ordered that Brewster pay restitution to the United States Department of Education.
This case was investigated by the United States Secret Service, the United States Postal Inspection Service, the United States Department of Education, the Office of the Inspector General/Social Security Administration, the United States Marshals Service, the Hillsboro Police Department, the Jefferson County Sheriff’s Department and the Jefferson College Campus Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Former Financial Manager Pleads Guilty to Embezzling over $1.4 Million from EmployerRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today that WADE BARBAY, age 54, of Baton Rouge, Louisiana, has pled guilty before U.S. District Judge John W. deGravelles to engaging in a wire fraud scheme to defraud his former employer Axiall Corporation. Through the scheme, BARBAY embezzled approximately $1,406,080. His sentencing date has not yet been determined.
During today’s hearing, the defendant admitted to using his position as Director of Shared Services, which oversaw Axiall’s corporate credit card program, to embezzle more than $1.4 million from the organization from January of 2011 through May of 2016. BARBAY did so by submitting fraudulently-inflated business expenses of other employees for payment to Axiall’s headquarters, causing the company to pay the inflated amounts to American Express. The defendant then directed American Express to credit his account with the fraudulently-inflated funds. Through this scheme, the defendant embezzled over $1,125,000. In addition, the defendant’s scheme included negotiating and depositing corporate refund checks into his personal bank account, totaling approximately $280,430. In total, over the course of a five-and-a-half-year period, the defendant fraudulently obtained over $1.4 million from his former employer.
Axiall Corporation is an international manufacturer and supplier of products derived from petrochemicals. The company is headquartered in Houston, Texas, and employs approximately 9,000 people in more than 42 facilities worldwide. One of Axiall’s facilities is located in Plaquemine, Louisiana. The defendant worked at this facility in a financial capacity for over 24 years.
Acting U.S. Attorney Amundson stated, “Fraud schemes perpetrated by insiders, particularly those entrusted with an organization’s finances, pose a serious threat to all organizations and, by extension, their employees. Our office will continue to aggressively pursue such matters, along with the FBI and our other excellent federal, state, and local partners. Once identified, these fraudsters must not be allowed to simply move to their next victim employer. Employers and law enforcement must work together to stop them. I thank the victim organization for uncovering the fraud and assisting in this important matter.”
FBI Special Agent-In-Charge Jeffrey S. Sallet stated: "I applaud the men and women of the FBI's Baton Rouge Resident Agency and U.S. Attorney’s Office for their aggressive work to help root out white collar crime within Louisiana. This is yet another example of how greed has driven an individual to enrich himself through dishonesty and theft. The arms of justice have a long reach and with our federal, state, and local law enforcement partners, we will continue to pursue such criminals."
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge Office of the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Former Finance Director Pleads Guilty to EmbezzlementRead the Press Release
PROVIDENCE – Charles F. Denno, 66, of East Providence, a former finance director for the Providence Plan, pleaded guilty in federal court today to fraud, admitting to the court that he devised and executed a scheme in which he fraudulently converted $742,190.69 of Providence Plan funds for his own use.
The Providence Plan is a non-profit educational entity which receives federal, state and private grant funds, including funds from the United States Department of Education and the Bloomberg Family Foundation. These grant funds are to be used to support educational and other programs for adults and children in Rhode Island. Annually, the federal grant funds awarded to the Providence Plan totaled in excess of four million dollars.
Denno’s guilty plea to one count of wire fraud is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; Brian Hickey, Special Agent in Charge of the U.S. Department of Education Office of Inspector General; and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
Appearing before U.S. District Court Chief William E. Smith, Denno admitted to the court that from November 2012 through July 2016, that he used his authority to cause the U.S. Department of Education and the Bloomberg Family foundation to deposit funds into Providence Plan bank accounts, and then fraudulently converted funds to his own accounts and personal use. Denno admitted to the court that he fraudulently prepared and issued Providence Plan checks made payable to CMG Enterprises, an entity he owned. The payments issued to CMG and deposited into a CMG bank account were not authorized and contained a forgery of the authorized check signing official at the Providence Plan. Denno subsequently made multiple withdrawals from the CMG bank account in various forms, including credit card payments, check payments and ATM cash withdrawals at Twin River Casino.
Denno is scheduled to be sentenced on June 23, 2017. Wire fraud is punishable by statutory penalties of up to 20 years imprisonment; 3 years supervised; and a fine of up to $250,000.
The matter, being prosecuted by Assistant U.S. Attorney John P. McAdams, was investigated by the Rhode Island State Police Gaming Enforcement Unit, the U.S. Department of Education Office of Inspector General and the FBI.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former FBI Contractor Pleads Guilty to Making False Statements to InvestigatorsRead the Press Release
A former FBI contractor pleaded guilty today to making false statements to FBI agents in connection with an official FBI investigation.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Assistant Director in Charge Andrew W. Vale of the of the FBI’s Washington Field Office and Acting Inspector General April Stephenson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG) made the announcement.
Arkadiy Zagaytov, 59, pleaded guilty before U.S. Magistrate District Judge Robin M. Meriweather of the District of Columbia. The defendant’s sentencing will be scheduled at a later date.
From June 2010 to October 2011 and September 2012 to August 2014, Zagaytov worked as an Oracle Database Administrator at the FBI Headquarters Information Technology Division and maintained Top Secret security clearance level for the entirety of his term at FBI. On July 31, 2014, Zagaytov was interviewed by Special Agents of the FBI in connection with an official investigation.
According to admissions made in connection with his plea agreement, Zagaytov lied to investigators about a financial transaction that he facilitated in 2004 and 2005 between a senior DOE official and a private company doing business in the United States. Specifically, at the request of the senior official, Zagaytov served as a conduit for purported “consulting” payments from the private company to the senior official. Zagaytov prepared and submitted false invoices to the private company for up to $140,000 in services that he never rendered or performed. Upon receiving payment from the private company and withholding a portion thereof to cover tax liabilities and other personal expenses, Zagaytov made several cash disbursements to the senior official. During his interview with the FBI on July 31, 2014, Zagaytov denied making any such payments to the senior official. Zagaytov also failed to disclose these transactions in his application for Top Secret clearance even though he was required to do so.
The FBI’s Washington Field Office and DOE-OIG investigated the case. Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section is prosecuting the case.
Felon Sentenced for Counterfeit Charges and Possession of a FirearmRead the Press Release
Contact Person: Jamie L. Schoen (864) 282-2100
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Nakeo Tawian Vance, age 41, of Greenville, South Carolina was sentenced today in federal court in Greenville, South Carolina, for two counts Uttering Counterfeit Securities and one count Felon in Possession of a Firearm, in violation of 18 U.S.C. §§ 472 and 922(g). United States District Judge Bruce H. Hendricks of Charleston sentenced Vance to thirty months imprisonment, followed by three years of supervised release.
Evidence presented at the change of plea hearing established that in May of 2015, law enforcement stopped Vance and found him in possession of ninety-eight counterfeit bills. Vance claimed he had received the money from a drug deal and had already used $600 to pay off drug debts. In May of 2016, the Greenville Police Department responded to a call concerning suspicious activity at a hotel. When law enforcement arrived, they observed Vance standing outside a vehicle, and upon their approach, the officers saw Vance shove something into a backpack and throw the backpack in the car. The officers frisked Vance and located a Butler Associate Incorporated, Model Single Shot, .22 short caliber pistol. The firearm was loaded with one round of .22 short ammunition. Vance fled, but the officers apprehended him shortly thereafter. Law enforcement recovered more counterfeit bills from Vance at that time. Greenville Police Department obtained and executed a search warrant for the car and located a General Precision Corporation, Model 60, .22 short caliber revolver, in the backpack Vance had been holding, along with other drug paraphernalia. The firearm was loaded with five rounds of .22 short ammunition. Vance has prior felony convictions and was prohibited from possessing firearms at the time.
The case was investigated by agents of ATF and the Greenville Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
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Federal Prison Inmate Sentenced for Possession of ContrabandRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Wheeler J. Paavola, 35, of Spokane, Washington was sentenced to six months of imprisonment on March 20, 2017 for possession of a controlled substance inside the federal prison at Greenville, Illinois. Paavola’s six-month sentence will be served consecutively to his original 2011 sentence of 188 months for possession with intent to deliver methamphetamine.
At his change of plea hearing, Paavola admitted that he had possessed "K-2," a form of synthetic marijuana, on July 27, 2016 while he was an inmate at the federal prison in Greenville.
The investigation which resulted in Paavola’s arrest and conviction was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Federal Inmate Sentenced for Possessing MarijuanaRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John Vercusky, age 39, a federal inmate, was sentenced by United States District Court Judge Robert D. Mariani in Scranton, on March 21, 2017, to serve three months in prison for possessing contraband at the United States Penitentiary located in Schuylkill, Pennsylvania (“USP Schuylkill”).
According to United States Attorney Bruce D. Brandler, Vercusky was caught in possession of marijuana on October 25, 2015, while incarcerated at USP Schuylkill.
The investigation was conducted by the Federal Bureau of Investigation and officers from USP Schuylkill. Assistant United States Attorney Evan Gotlob prosecuted the case.
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Father and Son Indicted on Federal Conspiracy Charges that Allege They Steal Cash from the U.S. Postal ServiceRead the Press Release
Update:
LOS ANGELES – A father and son from Adelanto are scheduled to be arraigned this afternoon on federal charges related to a string of thefts from moving mail trucks and the robbery of a United States Postal Service facility in Victorville. Kory Kreshon Parker Sr., 46, and Kory Kreshon Parker Jr., 23, are expected to enter pleas to a two-count indictment that was returned by a federal grand jury on March 15. Both Parkers are charged with conspiracy and robbery of United States property. Each of the two counts carries a five-year statutory maximum sentence.
Original Release (March 6):
Federal Case Charges San Bernardino County Father and Son in Conspiracy to Steal Cash from the U.S. Postal Service
RIVERSIDE, California – A father and son have been arrested and charged in federal court in connection with a robbery late last week at a United States Postal Service facility in Victorville.
According to court documents filed on Friday, the father and son – Kory Kreshon Parker Sr., 46, and Kory Kreshon Parker Jr., 23, both of Adelanto – also are suspects in a series of Postal truck robberies across Southern California that has caused more than $400,000 in losses.
The Parkers were charged Friday in a criminal complaint filed in United States District Court. The complaint charges both men with conspiracy to rob the Victorville Post Office on Thursday night.
According to the affidavit in support of the criminal complaints, the pair also are believed to have committed a string of postal truck robberies over the last 18 months – thefts that occurred while the trucks were moving or otherwise in transit. During those robberies, the thieves jumped on the back of a postal truck and opened the rear door to steal the truck’s contents, specifically registered mail that included cash, checks and money orders.
The Parkers made their initial court appearances on Friday afternoon, and United States Magistrate Judge Sheri Pym ordered them detained – held without bond – pending trial. A preliminary hearing in this case was scheduled for March 17, and the two men are scheduled to be arraigned on March 22.
If convicted of the conspiracy charge in the criminal complaint, the defendants each would face a statutory maximum sentence of five years in federal prison.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
This matter is being investigated by the United States Postal Inspection Service, with the assistance of the Rialto Police Department. The case is being prosecuted by Assistant United States Attorney Bilal Essayli of the Riverside Branch Office.
The Parkers are the latest defendants to be charged in relation to crimes affecting the mails and the United States Postal Service.
Other cases prosecuted recently by the United States Attorney’s Office include:
- 33 defendants charged across 28 cases;
- 11 defendants charged across seven cases in the Inland Empire;
- Carlos Canjura, 54 of Van Nuys;
- Chinh Vuong, 48, of Garden Grove;
- Bernie Martinez, 23, and Kammi Leigh Vestesen, 24, both of Corona; and
- Paul Wagner, 28, of Corona.
This representative sample of cases is only a portion of the cases charged by the U.S. Attorney’s Office in which the mail service was victimized. To address the rising problem of mail theft and crimes such as identity theft that flow from mail theft, the Los Angeles-based U.S. Attorney’s Office more than doubled the number of cases charged which were investigated by the United States Postal Inspection Service from 2015 to 2016.
Ellicott City Man Pleads Guilty to Federal Charges in $4.4 Million Insurance Fraud SchemeRead the Press Release
Baltimore, Maryland – Glenn R. Fischer, age 70, of Ellicott City, Maryland, pleaded guilty on March 21, 2017, to wire fraud and aggravated identity theft arising from a scheme to defraud businesses seeking insurance. Fischer admitted that he fraudulently collected more than $4.4 million in insurance premiums which he did not remit to an insurance company, causing losses in that amount to the victims who thought they were insured.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According his plea agreement, from 2002 to about 2014, Fischer was a partner at TriArc Financial Services, Inc., (TriArc Services) which provided automotive and mortgage insurance products, including residual value insurance. Residual Value Insurance (“RVI”) helped companies leasing vehicles to consumers to manage the risk from decreases in the value of the vehicle during the term of an auto lease. RVI typically provided for payments to the owner of a leased vehicle if the value of the vehicle at the end of the lease was less than a certain amount specified in the terms of the insurance coverage when the lease began. In the early 2000s, RVI policies were widely issued by insurance companies and TriArc Services generated substantial revenue for the company and its partners, including Fischer, who served as insurance brokers for RVI products. In 2008 and 2009, in conjunction with the financial recession and changes in consumers’ desires for used automobiles, many insureds suffered substantial losses under RVI insurance policies.
Fischer admitted that from 2009 until 2014, he persuaded victim businesses to purchase RVI insurance coverage, which Fischer knew did not exist, so that Fischer could use a substantial portion of the victims’ insurance premiums for his personal benefit. Specifically, in the summer of 2009, Fischer created a Nevada corporation called TriArc Marketing Solutions (TriArc Solutions) and opened bank accounts for TriArc Solutions. During the course of the scheme, Fischer caused prospective insureds to believe that he that he was authorized to issue RVI policies on behalf of TriArc Services, a multinational property and casualty insurance company specializing in coverage for small to medium sized businesses, and one of that business’ subsidiaries. Fischer also concealed the creation and use of TriArc Solutions from his partners at TriArc Services.
Fischer created and sent false insurance coverage documents, fraudulent emails, premium invoices, lists of covered vehicles, and other documents to victim companies, causing them to falsely believe that they had purchased RVI insurance through Fischer. Fischer used the identity of an employee of a multinational property and casualty insurance company in furtherance of the fraud, including his name, title and purported signature on the declaration pages of the fake insurance policies. Fischer concealed from the employee and the company that Fischer was pretending to issue RVI insurance policies on behalf of the company.
Fischer collected more than $4.4 million in RVI insurance premiums from the victims, which he deposited into the TriArc Solutions bank accounts. Fischer and his relatives used the proceeds of the insurance premium payments for their personal benefit.
Fischer also admitted that he failed to report a significant portion of the money he obtained from the fraud on his annual tax returns for the 2009 through 2014 calendar years. The total income Fischer received but did not report to the IRS for these tax years exceeded $3.3 million, which generated a substantial tax loss to the United States.
As part of his plea agreement, Fischer will be required to forfeit all property constituting, derived from, or traceable to the proceeds of the fraud, including, but not limited to $4.4 million.
Fischer faces a maximum penalty of 20 years in prison for wire fraud, and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge George L. Russell has scheduled sentencing for June 9, 2017, at 11:00 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry M. Gruber and David Metcalf, who are prosecuting the case.
Edgewater Man Sentenced to Federal Prison for Bank Fraud Scheme Involving over $1.3 Million in LossesRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Mrugesh G. Patel (38, Edgewater) to 18 months in federal prison for bank fraud. The Court also entered a money judgment in the amount of $405,087.99, the proceeds of the offense. Patel pleaded guilty on December 19, 2016.
According to court documents, between February 2011 and December 2012, Patel participated in a scheme to defraud federally insured banks, including TD Bank and Centerstate Bank. Specifically, he opened numerous bank accounts under the names of various Florida-based companies that he had established. He then used these accounts to make bulk deposits of fraudulent bank drafts made payable to his companies. The bank drafts were made using the unauthorized account information of other individuals, businesses, and entities. Patel also made false representations to bank representatives when he opened the accounts and during the time period that he was making the deposits.
Patel's fraud scheme caused more than $1,352,956 in losses to victims whose account information was used to create the fraudulent bank drafts. He used some of this money for personal expenditures and to pay third parties. During the investigation, law enforcement seized over $400,000 in illegal proceeds from bank accounts that Patel controlled.
This case was investigated by the U.S. Secret Service and the Internal Revenue Service-Criminal Investigation. It was prosecuted by Assistant United States Attorneys Andrew C. Searle and Nicole Andrejko.
Dunkirk Man Sentenced in Major Cocaine 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 David Jesus Pagan, 40, of Dunkirk, NY, who was convicted of conspiring to possess with intent to distribute and distribute five kilograms or more of cocaine and being a felon in possession of a firearm, was sentenced to 97 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that David Jesus Pagan and co-defendant Rafael Burgos were the leaders of a drug trafficking organization that distributed illegal narcotics in the Dunkirk, NY, area between 2013 and June 10, 2015. During that time, members distributed multiple kilograms of cocaine throughout the Dunkirk area.
Pagan was arrested in June of 2015 along with Burgos and four others. Search warrants were executed at the time of the arrests at six properties which resulted in the recovery of more than seven kilograms of cocaine (the largest seizure ever in the City of Dunkirk) and approximately $175,000 in cash as well as an AR-15 assault rifle with a 30 round magazine, most of which was found in the defendant’s residence. During a search of Burgos’ residence, officers discovered a secret room with a money counting machine. All defendants have been convicted.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Office; the Dunkirk Police Department, under the direction of Chief David C. Ortolano; the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace; the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy S. Whitcomb; and the Chautauqua County District Attorney’s Office, under the direction of Patrick Swanson.
Dominican National Sentenced for Being an Alien in Possession of a FirearmRead the Press Release
BOSTON – A Dominican national was sentenced in U.S. District Court in Boston yesterday in connection with being an alien in possession of a firearm and ammunition.
Felix Renaldo Nunez-Guerrero, 43, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 37 months in prison and three years of supervised release. Following the completion of his sentence, Nunez-Guerrero will be placed into removal proceedings and deported to the Dominican Republic.
On April 23, 2016, Lawrence police officers were dispatched to the area near Poplar Street and Alder Street in response to a report of shots fired. Upon arrival, they received information that the individual involved in the shooting had fled in a white Mercedes SUV. At the scene, law enforcement officers recovered eight .45 caliber shell casings.
Shortly thereafter, officers stopped a white Mercedes SUV containing three occupants and removed them for questioning. Additionally, the officers recovered a silver Para Ordinance .45 caliber semi-automatic firearm from under the front passenger’s seat. While being questioned at the police station, the front seat passenger provided a false name, but his fingerprints were found to match those of Nunez-Guerrero. According to law enforcement records, Nunez-Guerrero was a citizen of the Dominican Republic and had been deported on two previous occasions, March 25, 2009 and July 21, 2015. Nunez-Guerrero was interviewed and admitted to being an alien, to previously being deported, and to firing the .45 caliber firearm. Nunez-Guerrero’s hands were swabbed and later tested positive for gunshot residue.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigation in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Lawrence Police Chief James X. Fitzpatrick made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crime Unit prosecuted the case.
Diamond Bar Man Pleads Guilty to Smuggling ED Drugs that Were Sold as ‘Herbal Enhancement’ Products without PrescriptionsRead the Press Release
LOS ANGELES – A Diamond Bar man who illegally imported the active ingredients used in erectile dysfunction drugs such as Viagra and Cialis and repackaged the drugs for sale as herbal sexual enhancement products pleaded guilty today to federal charges.
Joseph Jinn, also known as Tzong Hwan Jinn, 60, pleaded guilty this afternoon to one count of conspiring to bring the drugs into the United States by means of false statements.
In a plea agreement filed in United States District Court, Jinn admitted being part of a scheme that imported Tadalafil, Sildenafil and Dapoxetine – the active ingredients in pharmaceutical medications such as Viagra and Cialis – with false claims to customs officials that the multi-kilogram shipments were “cooked powder and tools,” “Chinese bread baking mixture,” and other innocuous materials. U.S. Customs and Border Protection intercepted some of the shipments, which had a cumulative value of nearly $550,000.
But some of the illegally imported drugs entered the United States. Jinn admitted in court that he and his co-conspirators repackaged and sold the drugs as an “herbal supplement sexual enhancer.” The products were sold without the necessary prescriptions required by regulations enforced by the U.S. Food and Drug Administration, which had previously warned Jinn’s company that it was engaged in illegal sales.
According to the plea agreement, the FDA “issued public warnings regarding these sexual supplements because they contain ingredients that can interact with other drugs in dangerous ways and may lower blood pressure to unsafe levels.”
“These products were falsely and dangerously marketed as herbal supplements, when in truth they were unregulated prescription medications that are harmful to some people,” said Acting United States Attorney Sandra R. Brown. “The scheme began with a smuggling operation, and the conduct continued with the distribution of supplements falsely labeled as natural and safe.”
The products marketed by Jinn and his co-conspirators were sold in storefronts and over the internet.
As part of his plea agreement, Jinn agreed to forfeit to the United States approximately $105,000 that was seized from three bank accounts during the investigation.
“When it comes to purchasing medications online or in storefronts, never has the expression ‘buyer beware’ had a greater ring of truth,” said Joseph Macias, special agent in charge for Homeland Security Investigations (HSI) Los Angeles. “Imposter drugs pose a serious threat to consumers who mistakenly assume these substances are safe. The reality is that unscrupulous providers who introduce untested products into the marketplace purely to turn a profit are putting their unwitting clients in harm’s way.”
“The FDA oversees the production and sale of prescription drugs to ensure that they are safe and effective,” said Lisa L. Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations, Los Angeles Field Office. “Criminals who attempt to sell medicines outside of FDA’s oversight put the health of U.S consumers at risk. Our office will continue to pursue and bring to justice those who endanger the public’s health.”
The FDA has warned consumers about numerous over-the-counter products that claim to be “herbal,” but in fact contain hidden active ingredients.
Jinn pleaded guilty before United States District Judge Christina A. Snyder, who scheduled a sentencing hearing for June 19. When he is sentenced, Jinn will face a statutory maximum sentence of five years in federal prison.
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Food and Drug Administration, Office of Criminal Investigations; the Los Angeles Police Department; and U.S. Customs and Border Protection.
The case against Jinn is being prosecuted by Assistant United States Attorneys Vicki Chou and Jennie L. Wang of the Cyber and Intellectual Property Crimes Section.
Daughter of Deceased VA Beneficiary Sentenced for Theft of VA BenefitsRead the Press Release
Contact Person: Jamie L. Schoen (864) 282-2100
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Pamela Bullington, age 28, of Cowpens, South Carolina was sentenced today in federal court in Greenville, South Carolina, for Theft of Government Funds, in violation of 18 U.S.C. § 641. United States District Judge Bruce H. Hendricks of Charleston sentenced Bullington to probation and to pay restitution of $12,552.50.
Evidence presented at the change of plea hearing established that Bullington used her mother’s ATM card to withdraw her mother’s veteran benefits after her mother died. The Office of Veterans Affairs had not been informed of the death of Bullington’s mother, and therefore continued to deposit VA benefits into the account. Bullington admitted that she knew these funds were from the VA. Bullington also allowed another person to use the ATM card to make withdrawals from her deceased mother’s account.
The case was investigated by agents of the Veterans Affairs Office of Inspector General. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
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Dallas Man Indicted in East Texas Investment Fraud SchemeRead the Press Release
SHERMAN, Texas – A 51-year-old Dallas man has been indicted for investment fraud in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Carlton Chadbourne Sayers, also known as Chad Sayers was indicted by a federal grand jury on Mar. 8, 2017, and charged with wire fraud, mail fraud, bank fraud, and aggravated identity. The indictment was unsealed on Mar. 15, 2017, and Sayers was arraigned before U.S. Magistrate Judge Christine Nowak and entered a plea of not guilty on Mar. 16, 2017.
According to the indictment and information presented in court, Sayers is alleged to have devised a scheme to defraud numerous victims by requesting that individuals loan to or invest money with him and Wellington and Franklin Financial, a business that he controlled, representing that this money would be used to purchase and/or renovate various residential real properties, to be secured by an interest in the property. The indictment also alleges that Sayers would promise a significant rate of return (such as ten percent) to the investors, and would frequently secure multiple investments based on a single piece of real property. As set out in the indictment, however, Sayers did not invest the funds as he had represented to investors and did not provide the secured interests in real property as he represented to the investors. On some occasions, as set forth in the indictment, when Wellington and Franklin Financial or Sayers did actually own the residential properties, the property had been purchased with a pre-existing loan from a seasoned investor, and was already acting as security to that investor. Sayers is also alleged to have defrauded dozens of victims with little experience in real estate investments, who were induced by Sayers’s false claims of a secure investment, purportedly backed by the assignment of an interest in the respective real estate asset and returns that were considerably higher than what they could achieve through many other investments. The scheme is alleged to have resulted in substantial losses of over $3 million affecting dozens of victims.
If convicted, Sayers faces up to 30 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Tom Gibson.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Columbia Man Indicted on More Charges Related to Sex Trafficking Additional VictimsRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man charged last month with sex trafficking a minor was indicted by a federal grand jury today on additional charges.
Kenneth Ronald Jones, 25, of Columbia, was charged in an eight-count indictment returned by a federal grand jury in Jefferson City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Jones on Feb. 23, 2017, and includes additional charges related to additional victims.
Today’s indictment charges Jones with three counts of transportation for illegal sexual activity by coercion and enticement. The indictment alleges that Jones induced three victims to travel across state lines to engage in prostitution and illicit sexual activity between May 1 and June 1, 2016.
Because one of those victims, identified in court documents as “L.V.,” was under the age of 18, the indictment also charges Jones with one count of transporting a minor across state lines for illegal sexual activity and with the sex trafficking of a minor. The indictment also charges Jones with three counts of sex trafficking by force, fraud or coercion.
According to an affidavit filed in support of the original criminal complaint, FBI agents learned on June 29, 2016, that a 17-year-old runaway from Wisconsin – identified in court documents as “L.V.” – was being held against her will and forced into prostitution by Jones. She was located at a residence in Columbia and removed by law enforcement agents the same day.
L.V. told investigators that she met Jones in May 2016 at a party in Milwaukee, Wis., and agreed to travel with him to Columbia to engage in prostitution. Within a few minutes of arriving at a Columbia residence that was used as a brothel, the affidavit says, a man arrived soliciting prostitution. This man selected L.V. from the approximately five prostitutes present, and paid to have sex with her. L.V. subsequently engaged in prostitution almost every day, averaging two or three clients per day.
Although Jones knew that L.V. was 17 years old, the affidavit says, he told everyone else at the brothel that L.V was 18 years old so she would be allowed to work there. L.V. reported that escort advertisements were purchased on Backpage, a classified advertising website frequently utilized by prostitutes.
Another victim, identified in court documents as “C.M.,” told police that three days after arriving at the house, Jones told her that she needed to make money, and threatened to kick her to the streets if she did not do what he wanted. C.M. agreed and did a prostitution “date.” When C.M. told Jones she didn’t want to do that anymore and that she was willing to work as a dancer to make money, Jones allegedly pulled out a handgun and pointed it at her. Jones said he was not playing games, and that C.M. was going to make money.
C.M. and a third victim, identified in court documents as “K.S.,” ran away from Jones in late May or early June 2016.
Jones became increasingly verbally abusive and cruel, the affidavit says, and pressured L.V. to see more clients. L.V. said she wanted to stop prostituting herself after two weeks and told Jones on multiple occasions she did not want to prostitute anymore because it was sad and degrading. Jones did not care, the affidavit says, and instructed L.V. to keep making money. She feared repercussions from Jones if she attempted to leave him.
L.V. told investigators that Jones had left for Milwaukee the day before law enforcement took her from the Columbia residence. Before he left, the affidavit says, Jones instructed L.V. to send the money she earned prostituting herself to him while he was in Milwaukee. L.V. told investigators that she had planned to flee from the residence the following day. Jones was arrested when he returned from Milwaukee for a Boone County court appearance today on an unrelated matter on Feb. 27, 2017.
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 Ashley S. Turner. It was investigated by the FBI.