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Thursday 2 February 2017
Federal Jury Convicts Three Brothers and Their Associate in A Massive Heroin ConspiracyRead the Press Release
Fort Myers, FL – United States Attorney A. Lee Bentley, III announces that a federal jury has found three brothers from Cape Coral, Gorge Antonio Vargas (34), Javier Martin Villar (47), and Daniel Vargas (32), and an associate, Zacharias Abab Aguedo (36, Fort Myers), guilty of conspiracy to possess with the intent to distribute one kilogram or more of heroin. The jury also found Gorge Vargas, Daniel Vargas, and Zacharias Abab Aguedo guilty of possession with the intent to distribute, and distribution of heroin. Javier Martin Villar previously pleaded to the same charge. Each faces a minimum mandatory penalty of 10 years, up to life, in federal prison. The sentencing hearings have been set for May 15, 2017.
According to evidence presented at trial, between January 1, 2013, and September 2, 2015, Gorge Vargas was the leader of the conspiracy that distributed massive quantities of heroin from a drug house located on Dean Street in the Tice neighborhood of Fort Myers. Vargas’s brother, Javier Martin Villar, joined the conspiracy in 2013, and his other brother, Daniel Vargas, joined the conspiracy in 2015. The brothers would receive large amounts of heroin from Chicago, repackage it into smaller baggies, and then distribute it in Fort Myers for $20 per bag.
As part of this case, deputies from the Lee County Sheriff’s Office (LCSO) seized more than 1.35 kilograms (approximately 3 pounds) of uncut heroin. At the time of the seizure, this was the largest single seizure of heroin in LCSO history. In addition, several firearms were recovered, including a pistol-grip style AK-47, two semi-automatic firearms, and one revolver, all of which were located in close proximity to distribution amounts of heroin. LCSO also seized multiple vehicles and more than $40,000 in connection with this heroin distribution conspiracy.
This case was investigated by the Lee County Sheriff’s Office Field Support Unit and the Federal Bureau of Investigation’s Violent Crimes Task Force. It is being prosecuted by Assistant United States Attorneys Charles Schmitz and Simon R. Eth.
Federal Jury Convicts St. Thomas Woman of Participating in a Cocaine ConspiracyRead the Press Release
St. Thomas, USVI – On February 1, 2017, Kanya Tirado, 38, of St. Thomas, was found guilty by a federal jury of one count of cocaine conspiracy and two counts of possession of cocaine.
Tirado faces a mandatory minimum sentence of 10 years of incarceration, a maximum fine of $10,000,000, and a special assessment of $100. Judge Curtis Gomez remanded Tirado into the custody of the U.S. Marshals Service pending her sentencing on June 6, 2017.
According to the evidence presented at trial, Tirado was a member of drug organizations led by Nilda Morton. Morton supplied cocaine to Vanier Murraine utilizing Delta Airlines employees Taheeda George and Roniqua Hart, who used their security clearances at the Cyril E. King Airport to smuggle Morton’s cocaine to Tirado, Dellana Magner, Kinia Blyden, and Jerrisha Rawlins, after completing their pre-boarding security clearance, but before boarding their commercial flights to the U.S. mainland.
On three occasions between December 2015 and February 2016, Tirado smuggled more than five kilograms of Morton’s cocaine to the U.S. mainland after receiving it from Hart and Taheeda George in the bathrooms at the Cyril E. King airport. Security surveillance at the airport captured the activities of the defendants as they entered the public restroom located in the Spirit Airlines lounge where Hart and George removed vacuum-sealed packages of cocaine from their bodies and placed them in the couriers’ carry-on bags before boarding their flights. After the cocaine was sold stateside, Nilda Morton arranged for her brother Rasheem Morton, Tirado, Dellana Magner, Te’Nae George, Kinia Blyden, Jerrisha Rawlins, Roniqua Hart and Monique David to transport the cash proceeds back to St. Thomas where she took possession of the money. The investigation culminated on July 1, 2016, with the arrest of Dellana Magner after she smuggled 3 kilograms of cocaine onboard an American Airlines flight destined for Miami.
Twelve members of Morton’s drug trafficking organization pleaded guilty to drug related charges. Vanier Murraine, 34, a native of St. Thomas and resident of Detroit; Christopher Butler, 30, and Drue Williams, III, 35, of Twinsburgh, Ohio; Nilda Morton, 32, Taheeda George, 37, Roniqua Hart, 24, Dellana Magner, 23, Kinia Blyden, 23, and Jerrisha Rawlins, 23, of St. Thomas, all pleaded guilty to possession with intent to distribute cocaine. Rasheem Morton, 36, Monique David, 40, and Te’Nae George, 23, of St. Thomas, pleaded guilty to money laundering conspiracy. All defendants were remanded to the custody of the U.S. Marshals Service pending sentencing on June 1, 2017.
This case is the result of a joint investigation by the Federal Bureau of Investigation in Pittsburgh, New York, Cleveland, Detroit, and St. Thomas. It was prosecuted by Assistant United States Attorney Delia L. Smith.
Federal Child Pornography Charge Filed Against Prominent San Antonio PhotographerRead the Press Release
In San Antonio, 46–year-old professional photographer Christopher Alexander Reilly, doing business as Chris Reilly Photography, is charged with one count of receipt of child pornography announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
A federal complaint unsealed this morning, alleges that Reilly downloaded child pornography from the Internet onto a computer hard drive last month. According to the complaint, on January 24, 2017, a data recovery firm reported to the FBI that they discovered videos depicting minors engaged in sexually explicit conduct on one of two hard drives submitted for recovery by the defendant.
FBI agents took possession of both computer hard drives and on Tuesday, executed a search warrant at Reilly’s residence where they seized his cellphone as well as an assortment of photography equipment, computers, and storage devices.
At this time, investigators have not positively identified any of Reilly's clients or subjects of his professional photography in child porn images. However, the investigation is continuing.
“As this investigation moves forward, the FBI will continue to focus significant resources on identifying and notifying those who were potentially victimized by the defendant to ensure they are provided appropriate access to victim services and support,” stated FBI SAC Combs. “Anyone possessing information about improper or unlawful activities by Reilly or the production of child pornography should contact the FBI in San Antonio at (210) 225-6741.”
Reilly remains in federal custody following his arrest yesterday afternoon and initial appearance in federal court this morning. Upon conviction, Reilly faces between five and 20 years in federal prison. A detention hearing for the defendant is scheduled for 10:00am on February 7, 2017, before United States Magistrate Judge Henry J. Bemporad in San Antonio.
Assistant United States Attorney Tracy Thompson is prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
El Paso Duo Sentenced to Federal Prison for an Estimated $2 Million Ponzi SchemeRead the Press Release
Two El Paso men were sentenced to federal prison terms and ordered to pay $2,013,242 restitution to their victims for carrying out an extensive Ponzi scheme announced United States Attorney Richard L. Durbin, Jr.; Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division; and, Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas Lindquist, El Paso Division.
This morning, Senior United States District Judge David Briones sentenced 59–year-old Clarence Counterman, owner of an income tax return preparation business known as Taxrite, to 12 years in federal prison followed by three years of supervised release. Judge Briones also sentenced Counterman’s co-defendant, 52–year-old Robert Loya, to ten years in federal prison followed by five years of supervised release. At the conclusion of today’s hearing, Judge Briones remanded both defendants, who had previously been out on bond, into U.S. Marshals Service custody.
“This classic pyramid scheme robbed unsuspecting investors in new energy technology of more than two million dollars. The punishments meted out by the Court fairly reflect the magnitude of the theft, which the defendants perpetuated for almost five years,” stated United States Attorney Richard L. Durbin, Jr.
On November 2, 2016, jurors convicted the pair of one count of conspiracy to commit wire fraud. Jurors also convicted Counterman and Loya of 14 and 13 substantive wire fraud counts, respectively. Jurors acquitted Loya of two substantive wire fraud charges and Counterman of one substantive wire fraud charge.
Evidence presented during trial revealed that from December 2008 to October 2013, the defendants conspired to convince others, including Counterman’s tax preparation clients, into investing into their solar energy related companies, including Renewable Energy Consultant, Inc. (Nevada); EP Solar Technologies, Inc. (Nevada); LITTCE, Inc. (Texas); and, Eco Global Corporation (Texas) by promising high rates of return. Contrary to the agreements with the victim investors, a significant amount of money was converted for personal use by Counterman, Loya and a third defendant, 54-year-old Leopoldo Parra of El Paso. The defendants also paid some returns to earlier investors from monies paid in by newer investors rather than from profits earned by these companies in an effort to avoid detection of their scheme and to lull investors into a false sense of security. Testimony during trial revealed that more than 50 investors lost more than a combined $2.1 million as a result of the defendants’ fraudulent scheme.
On November 30, 2016, Parra was sentenced to 30 months in federal prison followed by three years of supervised release and ordered to pay $486,695 restitution. August 10, 2016, Parra pleaded guilty to the conspiracy charge and one substantive wire fraud charge.
“These are significant sentences and should serve as a warning to those who seek to profit from fraudulent schemes,” said HSI Special Agent in Charge Waldemar Rodriguez, El Paso. “HSI is actively engaged in identifying these individuals and stopping their deceitful and unlawful endeavors.”
“This result reflects the hard work of the FBI and our partners in El Paso to protect the community from predatory practices that would cheat citizens out of their hard-earned income,” stated FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division
Assistant United States Attorneys Steve Spitzer and Chris Skillern prosecuted this case on behalf of the Government.
El Dorado County and Arizona Residents Indicted for Embezzling More Than $200,000 from Organic Food CompanyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against Jeffrey Scott Davis, 59, of Placerville, and Glen Michael Martinka, 67, of Phoenix, Arizona, charging them with conspiracy to commit mail fraud and mail fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between December 2008 and April 2012, Davis and Martinka conspired to embezzle approximately $218,000 from an organic food company by submitting false invoices. Davis was the national sales manager for the company and Martinka was an employee and part owner of a vendor that marketed and sold the company’s products. Davis and Martinka had invoices made that charged the company for services that the vendor did not perform. Davis authorized the payment of the false invoices, and based on these false invoices, the company made checks payable to the vendor and mailed the checks to Martinka in Arizona. Martinka then split the fraudulently obtained money with Davis by mailing checks made payable to Davis.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
If convicted, Davis and Martinka face a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
DTO Leader Sentenced to 30 Years in Federal PrisonRead the Press Release
LUBBOCK, Texas — This morning, Senior U.S. District Judge Sam R. Cummings sentenced Rudolfo Ledesma Castaneda, Jr., 31, to 360 months in federal prison, following his guilty plea in October 2016 to one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Castaneda and eleven defendants of a drug trafficking organization (DTO), mostly from the San Angelo, Texas, area, were arrested in July 2016 in a joint Organized Crime Drug Enforcement Task Force (OCDETF) operation led by the Drug Enforcement Administration (DEA), the Texas Department of Public Safety and the San Angelo Police Department. Other agencies, including the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Immigration and Customs Enforcement Homeland Security Investigations, and the Tom Green County Sheriff’s Office provided valuable assistance in the operation.
drug traffickers who have taken root in the San Angelo area and jeopardize the safety and security of our communities is a top priority for my office,” said U.S. Attorney Parker. “But one agency can’t do it alone. Today, I commend the dedicated efforts of the Drug Enforcement Administration, the Texas Department of Public Safety, and the San Angelo Police Department, in addition to the several other federal, state and local agencies that lent assistance when and where needed. When these agencies join efforts, nothing stands in their way, and we will push back hard against those who peddle this poison in our communities.”
“The state of Texas will not tolerate criminals who distribute drugs throughout our communities and endanger our residents,” said Texas Department of Public Safety Regional Commander Carey Matthews. “The department is proud to have participated in the multi-agency investigation that incorporated all levels of law enforcement and was key in identifying and disrupting this methamphetamine trafficking operation.”
“This investigation is another great example of the accomplishments of local, state and federal law enforcement agencies working together to make our communities a safer place,” said Chief Frank Carter of the San Angelo Police Department. “I am very thankful and proud of all the personnel who worked on this lengthy investigation.”
Castaneda was the DTO’s ringleader. Of the 12 defendants who were indicted, 11 have been convicted and 10 have been sentenced. The charges were dismissed against one of the defendants.
last sentencing in the case is set for defendant Richard Jasso, 39, of San Angelo, Texas, on February 17, 2017. Jasso was convicted at trial in November 2016 on one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. The government filed a notice of enhancement because Jasso has two previous “felony drug offenses.” If the Court finds those convictions are final and valid, then, by statute, the Court must impose a life sentence without parole.
Jesse Huerra, 31, of San Angelo, was sentenced to life in federal prison. He was convicted at trial in September 2016 on one count each of possession with intent to distribute 500 grams or more of methamphetamine, possession of firearms in furtherance of a drug trafficking crime, and being a convicted felon in possession of firearms.
Nancy Ann Flores, 41, of San Angelo, was sentenced to 15 months in federal prison. She pleaded guilty to one count of unlawful use of a communications facility.
Antonio N. Flores, 52, of San Angelo, was sentenced to 70 months in federal prison. He pleaded guilty to two counts of unlawful use of a communications facility.
Rudolfo Velasquez, 32, of San Angelo, was sentenced to 60 months in federal prison. He pleaded guilty to one count of possessing a firearm in furtherance of a drug trafficking crime and aiding and abetting.
Joe Lopez, III, 33, of San Angelo, was sentenced to 125 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute methamphetamine and aiding and abetting.
Jose G. Montez, 38, of San Angelo, was sentenced to 151 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute methamphetamine and aiding and abetting.
Shayna Kaye McCann, 25, of Great Falls, Montana, was sentenced to 10 months in federal prison. She pleaded guilty to one count of misprision of a felony.
Daniel Roy Lombrana, 29, of San Angelo, was sentenced to 87 months in federal prison. He pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute marijuana, with an enhancement for a prior conviction.
Gabriel Castaneda, 30, of San Angelo, was sentenced to 10 years in federal prison. He pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute methamphetamine.
The Texas Department of Public Safety, San Angelo Police Department, DEA and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Crowley man pleads guilty to taking videos of sex with minorRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Crowley man pleaded guilty Tuesday to using his cell phone to record sex acts with a minor.
Blake Damian Rodgers, 35, of Crowley, La., pleaded guilty before U.S. Magistrate Judge Carol Whitehurst to one count of production of child pornography. The plea will become final after it is accepted by U.S. District Judge Patricia Minaldi. According to the guilty plea, Rodgers was arrested and booked into the Acadia Parish jail February 24, 2016 on theft charges. While incarcerated, he had sexually explicit conversations on the phone with a 14-year-old minor. They discussed having had sexual intercourse and of videos he had taken of the acts on his cell phone. After retrieving the cell phone, law enforcement agents found several sexually explicit videos of the minor.
Rodgers faces 15 to 30 years in prison, five years to life of supervised release and a $250,000 fine. The court did not set a sentencing date.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Homeland Security Investigations and the Acadia Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney David C. Joseph is prosecuting the case.
Colorado U.S. Attorney's Office Closed Friday for MoveRead the Press Release
DENVER – To all news organizations. Tomorrow, Friday, February 3, 2017, the Colorado U.S. Attorney’s Office will be closed in order to move from our current address to 1801 California Street, Denver, Colorado 80202. The office will reopen on Monday, February 6, 2017 at that address. Phone numbers and email addresses will remain the same.
While the office is closed Friday, attorneys and staff will still be working on court and duty matters. An official announcement with the new address and contact information will be released on Monday morning.
Colorado U.S. Attorney Creates New Cybercrime and National Security UnitRead the Press Release
DENVER – Acting U.S. Attorney Bob Troyer announced today the creation of a new unit in the Colorado U.S. Attorney’s Office’s Criminal Division: The Cybercrime and National Security Section. This section will be staffed with six Assistant United States Attorneys who are experts in investigating and prosecuting cyber-enabled crimes and national security cases.
In addition to already having several cyber specialists, a national security cyber coordinator, and an anti-terrorism coordinator, the office created a Digital Currency Crimes Coordinator to address the emerging threat of criminals using digital currency and dark-net forums to commit serious crime that is difficult to track using traditional investigative techniques. Because of the ground-breaking work that the office has done in that area as well as other areas of cybercrime, it was recently awarded a cyber-dedicated Assistant U.S. Attorney. With that new position and because of the creation of this specialized section, this office will be in an even better position to respond to new, and ever more serious threats in the areas of cybercrime and national security.
The creation of this section will allow the office to build on the excellent work it has already been doing in cybercrime and national security cases. It will continue to investigate and prosecute cases targeting hacking, ransomware, network intrusions, denial of service attacks, economic espionage and trade secret theft, dark-net crime, national security cybercrime, counter-proliferation and export-control offenses, digital currency enabled crime, and child exploitation crimes. The office has investigated and prosecuted several such high-profile cybercrime cases including U.S. v. Rezendez, a prosecution involving a large-scale distributed denial of service attack; U.S. v. Bourret, et al., a computer intrusion case involving almost two million online accounts; U.S. v. Snowden, a prosecution involving economic espionage and trade secrets theft; U.S. v. Hugo, a production of child pornography case involving several children; U.S. v. Salias, a production of child pornography case involving an infant; and U.S. v. Holt et al., a prosecution involving a man and woman who sexually exploited three children. The section will also continue to expand its investigations and prosecutions of national security and terrorism matters as reflected in the good work it has already done in cases such as U.S. v. Conley, which involved a Colorado woman who met an ISIS fighter online and attempted to travel to Syria and provide support to the terrorist group; U.S. v. Ansberry, in which the defendant is charged for attempting to use an explosive device to destroy the Nederland Police Department; and U.S. v. Worku, which involved the investigation, prosecution, and trial of a convicted war criminal for visa fraud.
Statistics demonstrate the critical need for this new section. This District has increased its investigations and prosecutions into hacking and other cybercrimes by 20 percent over the last two years. Since 2014, there has been a 40 percent increase in child exploitation cases prosecuted. The largest increase was seen in cases involving the production of child pornography, Since 2012 there has been a 500 percent increase in child pornography production cases prosecuted in the District, many involving children who are toddlers and infants. In addition, nationally, since 1998 the National Center for Missing and Exploited Children (NCMEC) Cyber Tipline received 12.7 million reports, with 4.4 million coming in to the center in 2015 alone. NCMEC has reviewed 172 million images, and has identified more than 10,900 child victims.
Also, the office have prosecuted 16 individuals since 2014 for Bitcoin/Digital Currency crimes. Investigations aided by this section has also led to 9 individuals being prosecuted by foreign governments, and 6 to 10 individuals being prosecuted by state authorities.
“Cybercrime and national security crimes are increasingly urgent threats in the District of Colorado,” said Acting U.S. Attorney Bob Troyer. “This is what we do: identify emerging threats that we can effectively address, and fluidly deploy an elite team to meet the threat.”
The unit will also continue to build on the good working relationships it enjoys not only with our law enforcement partners, but with private industry. It will continue to conduct outreach and training to both law enforcement and private industry to solicit collaboration on cybercrime prevention and reporting. Cyber prosecutors in the office already regularly participate in numerous speaking engagements each year, and will continue to do so.
City of Cincinnati to Receive $450,000 from Drug Assets Seized in Federal ProsecutionRead the Press Release
CINCINNATI – U.S. Attorney Benjamin C. Glassman announced a final order of forfeiture has been filed in U.S. v. Christopher Whitfield, Tonia Whitfield and Steven Griffin, ordering the forfeiture of the more than $1 million in cash, among other things, that had been seized during the execution of search warrants in this case.
The Cincinnati Police Department will net approximately $450,000 from equitable sharing.
Also included in forfeiture in this case are: seven firearms, three properties in Cincinnati, five vehicles including two luxury vehicles and a motorcycle, multiple pieces of jewelry, Gucci and Rolex watches, two ballistic vests, a number of “mink” fur coats and vests, 13 designer handbags and Beats headphones and ear buds.
“This is a great illustration of the value of criminal forfeiture,” U.S. Attorney Glassman said. “Instead of enriching drug dealers, these proceeds will now be put to use combatting addiction and the other ravages of drug trafficking.”
“One of the government's most powerful weapons is the ability to seize through asset forfeiture the assets associated with narcotics-related crimes,” said Troy N. Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations.”
Christopher Whitfield, 42, of Cincinnati, Ohio was sentenced on November 3, 2016 to 120 months in prison after pleading guilty to one count of conspiracy to commit money laundering.
Tonia Whitfield, 41, of Cincinnati, Ohio was sentenced on December 14, 2015 to 12 months and one day in prison on three counts of money laundering.
Steven Griffin, 41, of Cincinnati, Ohio was sentenced on January 13, 2016 to 87 months in prison on one count each of possession with intent to distribute heroin and a felon in possession of a firearm.
A federal grand jury indicted the defendants in a 23-count indictment returned in April 2015. The indictment outlined that the group conspired to facilitate an illegal drug business, primarily cocaine and heroin.
As part of the conspiracy, the defendants operated “stash” houses to process, cut, package and store the drugs as well as firearms and money. In order to conceal the money generated from the drug sales, defendants would launder the profits by purchasing real and personal property and place assets in the names of other individuals.
This case was investigated by IRS-Criminal Investigation, FBI and the Cincinnati Police Department and was prosecuted by Assistant U.S. Attorneys Karl Kadon and Jessica W. Knight.
Central Valley Serial Robber Sentenced to 20 Years in PrisonRead the Press Release
FRESNO, Calif. — On Wednesday, U.S. District Judge Dale A. Drozd sentenced Ronald Castanon, 21, of Pinedale, to 20 years in prison for three counts of interference with commerce by robbery, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Castanon robbed three businesses at gunpoint: the Valero gas station at 10480 California 41 Business Route in Madera on October 3, 2015; the Arco gas station at 4149 N. Clovis Avenue in Fresno on October 4, 2015; and the Yo-Town Yogurt shop at 29424 Auberry Road in Prather on October 4, 2015.
At the Yo-Town Yogurt shop, Castanon entered the store, pointed a silver, long-barreled revolver at the 16-year-old clerk and demanded money. On October 5, 2015, a Fresno County Sheriff’s deputy saw the Chevy Impala that had been involved in the robberies. After Castanon got into the vehicle and drove away, the deputy followed him for several minutes and saw him throw a gun out of the window, which was later recovered. Castanon continued for 130 miles was later arrested with the assistance of air support.
“Project Safe Neighborhoods is a program that spans nationwide. The program is committed to reducing gun and gang crime. ATF has been a part of Project Safe Neighborhood for several years,” said Special Agent in Charge Jill Snyder. “The successful results that stem from partnerships between law enforcement agencies, like the one seen in this case, help to make our streets a safer place.”
This case was the product of an investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fresno County and Madera County Sheriffs’ Offices. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders. Assistant U.S. Attorney Kimberly Sanchez prosecuted the case.
Buffalo Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Rasheen Newkirk, 42, of Buffalo, NY, pleaded guilty to possession of heroin with intent to distribute and unlawful possession of a firearm and ammunition by a felon, before U.S. District Judge Richard J. Arcara. The charges carry a maximum penalty of 20 years and a $1,000,000 fine.
Assistant U.S. Attorneys Wei Xiang and Patricia Astorga, who are handling the case, stated that on December 11, 2013, Newkirk was arrested by Drug Enforcement Administration agents in Buffalo. A search of Newkirk’s house in Buffalo yielded, among other evidence, a quantity of heroin, 205 glassine envelopes, and a loaded Glock handgun. The defendant served a 112-month sentence for a previous federal firearm conviction and was prohibited from legally possessing any firearm and ammunition.
Newkirk pleaded guilty as jury selection was scheduled to begin for his trial tomorrow morning.
The plea is the result of an investigation by the Drug Enforcement Administration Resident Offices in Buffalo, Toledo, Ohio, and Chicago, Illinois, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, and the Ohio State Highway Patrol.
Sentencing is scheduled for May 15, 2017, at 12:30 p.m. before Judge Arcara.
Buffalo Man Convicted by A Federal Jury of Being A Felon in Possession of A GunRead 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 a federal jury has found Justin Vazquez, 30, of Buffalo, NY, guilty of being a felon-in-possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Michael J. Adler and Michael P. Felicetta, who handled the prosecution of the case, stated that on January 29, 2015, the defendant’s mother made a 911 call to Buffalo Police claiming that she was being held hostage by Vazquez in her residence on Madison Avenue in Buffalo. There were also two minors present in the home according to the mother.
When officers arrived, the defendant was in the shower. During a search of the residence, officers found a loaded semi-automatic assault rifle in Vazquez’s bedroom. On the bedroom door was a hand written sign that read “no trespassing or you will be shot.” Forensic testing determined that the defendant’s DNA was on the rifle.
The defendant was previously convicted on three felony charges of Criminal Contempt in State Court which prevented him from legally possessing a firearm.
The verdict is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Sentencing is scheduled for May 11, 2017, at 10:30 a.m., before Chief U.S. District Judge Frank P. Geraci, Jr. who presided over the trial.
Brevard County Man Sentenced to Fifteen Years for Conspiracy to Commit Money LaunderingRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced James Long (44, Brevard County) to 15 years in federal prison for conspiracy to commit money laundering. The Court also ordered him to forfeit numerous assets, including cash and real estate properties, which were proceeds traceable to the offense. He pleaded guilty on October 11, 2016.
According to the plea agreement, between 2010 and June 2013, Long and others used the Professional Pain Center located at 860 East State Road 434 in Longwood to cause the distribution and dispensation of controlled substances outside the usual course of professional practice and for no legitimate medical purpose.
Long, as president and owner of the clinic, employed approximately 10 physicians who were willing to write unlawful and invalid prescriptions for Schedule II and Schedule III controlled substances. Long admitted that doctors working for his clinic had engaged in a pattern of issuing prescriptions for controlled substances without a legitimate medical reason, outside the usual course of professional practice. According to the plea agreement, any reasonably prudent physician would not have issued such prescriptions for controlled substances in the quantity and combinations prescribed because of the danger of overdose and death, coupled with the likelihood of diversion.
Long and his conspirators also conducted financial transactions involving the drug proceeds to conceal the source of the funds. These transactions generally involved the structuring of cash deposits and the purchase of properties and other assets.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
Boone County felon sentenced to federal prison for gun crimeRead the Press Release
Charleston, W.Va. – A Boone County felon who sold a rifle to an informant was sentenced today to a year and a half in federal prison for illegally possessing the firearm, announced United States Attorney Carol Casto. Gregory Scott Runion, 34, of Seth, previously pleaded guilty to being a felon in possession of a firearm.
On March 25, 2016, Runion sold a KBI Inc., Russian SKS-45 rifle to an informant working for the U.S. 119 Drug and Violent Crime Task Force. Runion was prohibited from possessing any firearm under federal law because of a 2009 felony firearm possession conviction in Monroe, Michigan.
The U.S. 119 Drug and Violent Crime Task Force conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Bergen County, New Jersey, Man Gets Probation for Helping Disguise Foreign Contributions During 2012 Presidential ElectionRead the Press Release
NEWARK, N.J. – A Paramus, New Jersey, man was sentenced today to one year of probation for helping funnel $80,000 in campaign contributions from a foreign source to the joint fundraising committee of the President of the United States during the 2012 presidential election, U.S. Attorney Paul J. Fishman announced.
Bilal Shehu, 48, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with knowingly and willfully making foreign contributions and donations in connection with the 2012 presidential election and to a fundraising and political campaign committee of the president, aggregating $25,000 or more during a calendar year. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In September 2012, Shehu, a U.S. citizen living in New Jersey, received approximately $80,000 from a foreign source and provided it to a joint fundraising committee – including the authorized campaign committee of the president – to disguise the true origin of the money and so that a foreign national could attend a campaign event on Oct. 8, 2012, in San Francisco.
Federal law prohibits foreign nationals from making contributions to federal candidates or fundraising committees and, in order to attend the event, a foreign national needed to be accompanied by a U.S. citizen.
Shehu admitted that he received the $80,000 wire transfer into his New Jersey-based bank account from a foreign bank account in late September 2012, knowing that he was to provide it to the joint fundraising committee. In early October 2012, Shehu flew to San Francisco and attempted to gain entry into the San Francisco fundraising event with the foreign national, who was denied entry but was allowed to be photographed with the President.
No one on the joint fundraising committee has been accused of any wrongdoing and the committee has fully cooperated in the investigation leading to today’s sentencing.
William Argeros, 58, of Tampa, Florida, was also charged in this scheme and pleaded guilty on July 25, 2016. His sentencing is scheduled for Feb. 14, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the District of New Jersey’s Special Prosecutions Division and Trial Attorneys Charles Walsh and Peter Halpern of the Criminal Division’s Public Integrity Section.
Defense counsel: Alan M. Abramson Esq., New York
Battle Creek Hotel Owner Pleads Guilty to Lying to the US Department of Labor About Minimum Wage PaymentsRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that Mehul Chandubhai Patel, a/k/a “Mike Patel,” 31, of Battle Creek, Michigan, pled guilty today to lying to Labor Department investigators about the wages paid to his staff. The charges stem from Patel’s violation of minimum wage rules in connection with two hotels operated by him, in Battle Creek and Coldwater, Michigan.
Patel appeared in federal court today before Magistrate Judge Ellen Carmody and pled guilty to the crime of concealing a material fact from the federal government when obligated to disclose it. Patel admitted that during 2014, the Department of Labor (“DOL”) had found him to be in violation of minimum wage laws by underpaying his hotel employees. He thereafter signed an agreement promising to repay his employees. When requested to provide proof that he had done so, Patel sent DOL checks indicating that back wages had been repaid. However, he concealed the fact that he required his employees to return the money to him.
Patel faces up to five years in prison, restitution and other penalties. U.S. District Judge Paul Maloney will impose sentence on Patel.
Prosecution of the matter has been assigned to Timothy VerHey, Assistant U.S. Attorney. The matter was investigated by the U.S. Department of Labor, Office of Inspector General, Homeland Security Investigations, and the Battle Creek Police Department.
END
Auto Parts Industry Executive Pleads Guilty to Obstruction of JusticeRead the Press Release
Executive Agrees to Serve 14 Months in a U.S. Prison
An executive of an automotive parts company pleaded guilty today for his role in a conspiracy to obstruct a federal investigation and for attempting to obstruct justice, the Department of Justice announced.
Futoshi Higashida, formerly the president of a U.S. joint venture of an automotive body sealing products supplier based in Hiroshima, Japan, pleaded guilty today in the U.S. District Court of the Eastern District of Michigan to a two-count indictment charging him with conspiring to obstruct justice and attempting to obstruct justice. As a part of the plea agreement, Higashida agreed to serve 14 months in prison, pay a $7,500 criminal fine and was sentenced accordingly today.
“The Antitrust Division takes just as seriously pursuing individuals in the automotive parts industry who attempt to hide the facts as it does the subversion of the competitive process,” said Acting Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “We will continue to pursue the truth and to protect American consumers.”
On Sept. 21, 2016, a federal grand jury in the U.S. District Court of the Eastern District of Michigan returned an indictment against Higashida and another executive, who remains under indictment. According to the indictment, the defendants, along with their co-conspirators, conspired from at least as early as June 2008 until at least September 2012, to delete emails and electronic records and to destroy documents referring to communications with competitors, in contemplation of a federal investigation. During the charged conspiracy, Higashida was employed by an automotive body sealing products supplier in Japan and later in Novi, Michigan, as president of that company’s U.S. joint venture with another company. In addition, according to the indictment, on Sept. 25, 2012, intending to obstruct an official proceeding, Higashida instructed another individual to ensure that no phone numbers or call records remained on his cellular telephone and that no data remained on his computer that would reflect competitor communications.
Today’s guilty plea is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. A total of 65 individuals and 47 companies have been charged in the Antitrust Division’s investigations into the automotive parts industry. This case was brought by the Antitrust Division’s Chicago Office and the FBI’s Louisville Field Office, Covington Resident Agency, with the assistance of the FBI’s International Corruption Unit and the U.S. Attorney’s Offices for the Eastern District of Michigan and the Eastern District of Kentucky.
Anyone with information about anticompetitive conduct in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or contact the FBI’s Louisville Field Office at 502-263-6000.
Atlantic County, NJ, Man Admits Scheme to Defraud Women over Telephone Dating ServicesRead the Press Release
CAMDEN, N.J. – An Atlantic County man who was previously sentenced in 2007 in connection with a scheme to defraud women over telephone dating services and in 2015 for violating the conditions of his federal supervised release admitted today to traveling in order to launder money in connection with a similar scheme, U.S. Attorney Paul J. Fishman announced.
Patrick Giblin, 52, formerly of Ventnor, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of interstate travel and use of a facility in interstate and foreign commerce with the intent to launder money.
According to documents filed in this case and statements made in court:
From January 2013 to Dec. 16, 2014, Giblin allegedly posted advertisements and messages on telephone dating services throughout the United States. Giblin cultivated a telephone rapport with the women he spoke to on these services, falsely claimed that he would be relocating or travelling to the woman’s geographic area, and falsely represented that he wished to pursue a committed, romantic relationship with each woman. He then lied to the women about needing a loan, which he never intended to repay, for relocation or travel expenses. Giblin received money from the women he spoke to on the dating services via interstate wire services such as Western Union and MoneyGram. Giblin also directed women to transfer money through one of these services onto a payroll/debit card that he used. Giblin used some of his victims’ money in order to purchase airtime minutes for cellular telephones, which he in turn used to defraud additional women.
In October 2014, Giblin travelled from Atlantic County, New Jersey, to Albany County, New York. Giblin, who was on federal supervised release from a previous conviction, was not allowed to leave the state. While traveling in New York, Giblin continued to defraud women and used money he received from women to purchase additional airtime minutes and contact more women. Giblin’s victimized more than 10 women in various states, causing losses of $15,000 to $40,000.
Giblin was previously convicted of 10 counts of wire fraud in 2007 in connection with a similar scheme. In 2015, Giblin was imprisoned for violating the terms of his supervised release imposed in connection with the 2007 sentence. Giblin was also sentenced in 2013 in the Eastern District of Pennsylvania for escaping from a halfway house in Philadelphia, where he was living following the completion of the 2007 sentence. Giblin initiated the scheme in this current case at about the time that he escaped from the halfway house and resumed the scheme following the service of his sentence on the escape conviction.
The count to which Giblin pleaded guilty carries a maximum term of five years in prison and a fine of up to five years in prison and a fine of $250,000. He must also pay restitution to victims. As part of the plea agreement in this case, the U.S. Attorney’s Office will recommend that the Court sentence Giblin to the statutory maximum term of five years. Sentencing is scheduled for May 12, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. Fishman also thanked the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos in Newark, for its assistance in this case.
The government is represented by Deputy Attorney-in-Charge Matthew J. Skahill and Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office in Camden.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender (Camden)
Amherst Doctor Sentenced for Obtaining Controlled Substances by Fraud and Health Care FraudRead 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 Dr. Albert R. Cowie, 38, of Amherst, NY, who was convicted of obtaining controlled substances by fraud and health care fraud, was sentenced to 24 months in prison by U.S. District Judge Lawrence J. Vilardo.
“The purpose in publicizing today’s sentencing is not to try to shame or embarrass anyone, including Dr. Cowie, who unlawfully uses or distributes this poison,” said Acting U.S. Attorney Kennedy. “Rather, the purpose is to remind everyone—no matter who you are, whether you are a doctor or a derelict—that each of us will eventually be held accountable for the choices we make. Some, those that we catch, must answer in the criminal justice system. Sadly, many that we don’t catch, must answer with their lives. So my message today is that this Office will continue—with our law enforcement partners—aggressively to enforce the drug laws. We are not going to go away. Lives are at stake. If you are using these drugs—no matter who you are—then you need to get help, because if you don’t, you will end up either dead or, if you’re lucky, in jail.”
DEA Special Agent-in-Charge James Hunt stated, “This sentencing highlights a doctor’s crime and a drug user’s insidious cycle of addiction. The issuance of prescriptions of controlled substances for non- medical purposes is a federal crime that furthers opioid addiction. DEA and our law enforcement partners will continue to identify those responsible.”
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that between January 2010 and March 22, 2014, the defendant, a practicing radiologist, wrote more than 200 illegal prescriptions for controlled substances such as Oxycodone, Percocet, and Hydrocodone. The prescriptions were distributed to an individual who then went to local pharmacies and had the scripts filled. The individual retained some of the controlled substances for personal use but returned the remainder of the narcotics to Cowie for his own use.
During a meeting between Cowie and a confidential witness, the defendant advised the witness to lie to insurance investigators about his alleged prescription fraud. The witness is quoted as saying to the defendant “okay so just say they were written for me even though they were written for you…is what you’re saying? Cowie replied “right.”
As a result of the prescription fraud, Univera Health Care and HealthNow New York were fraudulently billed $20,482.83.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the New York State Bureau of Narcotic Enforcement, under the direction of NYS Health Commissioner Howard Zucker; and the Amherst Police Department, under the direction of Chief John Askey.
Aliquippa Man Pleads Guilty to Robbing Sewickley Savings Bank with a GunRead the Press Release
PITTSBURGH - A Beaver County resident pleaded guilty in federal court to charges of violating federal robbery and firearms laws, Acting United States Attorney Soo C. Song announced today.
Herbert Lee Pope, 28, pleaded guilty to three counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on February 12, 2016, Herbert Pope walked into the WesBanco Bank located in Ambridge, Pa., and asked a teller if the bank was able to make an overseas wire transfer. The teller instructed Pope that they do not, and Pope exited the bank. Shortly thereafter, the bank was robbed by a lone male in a gray sweat suit, who utilized a small black semi-automatic firearm with a silver barrel. The loss to the bank was $11,128.09. On February 16, 2016, Pope entered the Sewickley Savings Bank in Sewickley, Pa., and asked if the bank was able to do an international wire transfer. The teller informed Pope that the bank did not, and directed Pope to a nearby bank that did do that type of transaction. Pope left the bank, and appropriately 10 minutes later, Pope and another male entered the bank, both utilizing black semi-automatic handguns, vaulted the teller counter, and robbed the bank. The loss to the bank was $3,543.25.
Tyler Bridges, 31, is charged as the other individual involved in the armed bank robberies. Charges against Bridges remain pending.
Judge Bissoon scheduled sentencing for Pope on May 19, 2017, at 10 a.m. The law provides for a total sentence of not less than 7 years and up to life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Pope remain in custody.
Assistant United States Attorney Troy Rivetti is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Sewickley Police Department, the Allegheny County Police Department, and the Ambridge Police Department conducted the investigation that led to the prosecution of Herbert Lee Pope.
Albuquerque Felon Sentenced to Federal Prison for Violating Firearms LawsRead the Press Release
ALBUQUERQUE – Adrian Banks, 28, of Albuquerque, N.M., was sentenced today in federal court to 64 months in prison for unlawfully possessing a firearm. Banks will be on supervised release for three years after completing his prison sentence.
Banks and his codefendants Marcus Sowell, 20, Damon Giles, 23, Michael Borrego, 25, and Marcus Lewis, 27, were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Banks and his codefendants were charged in a 12-count indictment filed on June 30, 2016. The indictment charged the following:
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Sowell with possession of a firearm not registered to him in the National Firearms Registration and Transfer Record (NFRTR) and engaging in the business of dealing firearms without a license on May 19, 2016;
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Giles with being a felon in possession of a firearm on May 19, 2016;
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Giles and Borrego with engaging in the business of dealing firearms without a license on May 31, 2016;
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Giles and Banks with engaging in the business of dealing firearms without a license on June 7, 2016;
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Banks with being a felon in possession of firearms on June 7, 2016;
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Borrego with engaging in the business of dealing firearms without a license on June 7, 2016 and June 10, 2016;
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Giles and Lewis with distribution of cocaine on June 9, 2016;
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Borrego with possession of a firearm not registered to him in the NFRTR on June 10, 2016;
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Giles with engaging in the business of dealing firearms without a license and being a felon in possession of firearms on June 13, 2016.
According to the indictment, the offenses were committed in Bernalillo County, N.M.\
On Nov. 4, 2016, Banks pled guilty to being a felon in possession of a firearm and admitted that on June 7, 2016, he was in possession of three firearms despite his status as a convicted felon. Banks was prohibited from possessing firearms or ammunition because of his felony convictions for kidnapping in the second degree and aggravated assault with a deadly weapon.
To date, 25 of the 104 defendants including Sowell, Giles, Borrego and Lewis have entered guilty pleas and two have been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque office of ATF. Assistant U.S. Attorney James D. Tierney is prosecuting the case.
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"Prince Charming" Behind Bars: Nigerian Romance Scammer Nets 27-Year Prison SentenceRead the Press Release
Olayinka Ilumsa Sunmola, 33, of Lagos, Nigeria, was sentenced this morning to serve 324 months behind bars for an elaborate international romance scam he perpetrated from 2007 to 2014, U.S. Attorney Donald S. Boyce for the Southern District of Illinois announced today. Evidence presented in court showed that Sunmola was the ringleader of a criminal organization operating in South Africa that targeted hundreds of women across the United States, including many in the St. Louis area. The thieves managed to make away with millions of dollars in wire transfers and various electronics through the simple promise of true, enduring love.
The U.S. Postal Inspection Service began investigating Sunmola in 2012, when a woman in the Southern District of Illinois complained that she had been conned by a man masquerading online as "Elias Dyess." The investigation soon revealed that "Dyess" was merely one of the dozens of fictitious online profiles Sunmola and his confederates concocted on dating websites like Match.com to lure unsuspecting women. Portraying himself as an American soldier stationed overseas, or an engineer working on a large government contract in South Africa, Sunmola cultivated romantic relationships with dozens of women across the country. To further the conceit, he used photographs stolen from the hacked online accounts of real American men and researched facts about the American cities he pretended to be from. He also showered the women with poetry, cards, flowers, stuffed animals, and chocolates. Sunmola’s purpose was to lead each of his victims to believe that he was her "Prince Charming," her one true love, and the man with whom she was destined to spend the rest of her life.
Once he had successfully beguiled his target, Sunmola began to manufacture phony emergencies, each of which required increasingly large amounts of money from his victims. He played upon each woman’s romantic feelings and vulnerabilities, manipulating them into wiring
him money or shipping him laptop computers, tablets, and cell phones – equipment he told them he needed to complete his government mission. The women were invariably told to direct their shipments to "Ilumsa Sunmola," who was passed off as their lover’s driver, or a co-worker, or a hotel manager. In fact, it was Sunmola himself who was slowly bleeding them dry. When the money inevitably ran out, or the women refused to send more, Sunmola would abruptly end the relationship.
A federal grand jury sitting in East St. Louis, Illinois, indicted Sunmola in November 2013 on charges of mail fraud, wire fraud, conspiracy, and interstate extortion. Officers with the London Metropolitan Police Service (sometimes referred to as "Scotland Yard") later arrested Sunmola on the Southern Illinois indictment in August 2014, as he was about to board a plane from London to Johannesburg, South Africa. Sunmola eventually pled guilty to all eight counts of the indictment on March 2, 2016, after two full days of trial.
The United States has no way of knowing the precise amount of money Sunmola and his associates stole, but victims who responded to government requests for information reported total losses in excess of $1.7 million – a figure Sunmola has been ordered to pay in restitution. The crime forced at least three women to file for bankruptcy. Several more lost their jobs and their homes and were left in total financial ruin. One victim who testified at the trial lost over $90,000 to Sunmola. "Retirement should be a happy time," she wrote to the court. "Instead, I am stressed and broke and working part time jobs at $10 an hour to supplement my income."
Two victims were present in the courtroom when the sentence was announced. A number of businesses were also defrauded by Sunmola and his associates, who used stolen credit card data from thousands of Americans to make fraudulent purchases online and over the phone. The loss incurred by one computer manufacturer alone was over $800,000.
Even worse than the financial hardships Sunmola caused his victims was the profound emotional and psychological damage he inflicted on them. Many of the women believed they had finally found their true love. A few had even purchased wedding dresses. When the lie was exposed, their worlds collapsed. Some fell into depression. Two victims told the court they had seriously contemplated suicide. Even many years later, a number of Sunmola’s victims remain withdrawn and untrusting, afraid to meet new people or to venture back out on the internet. For at least two women in Illinois, the abuse was also sexual, as Sunmola stole images of their naked bodies, used the images to extort money from them, and then distributed their explicit images on the internet for anyone to see.
At sentencing, the United States argued that the court should depart upward from the range recommended by federal sentencing guidelines, because the crimes Sunmola committed were unusually cruel and caused his victims extreme psychological harm. In support of that argument, the government presented testimony from Monica Whitty, Ph.D., an Australian psychologist who has extensively researched online romance scams from her post at the United Kingdom’s University of Leicester. Whitty testified that, in her expert opinion, the victims had indeed suffered a substantial and severe psychological impact. "They’ve in many ways experienced potentially permanent, life-altering changes in their lives. The long-term effects remain, years and years later."
United States District Judge David R. Herndon agreed. "‘Conspiracy,’ ‘mail and wire fraud,’ and ‘interstate extortion’ hardly sound like the kinds of crimes that leave broken lives, wrecked women, fractured families, devastation, desires to die, humiliation and shame so extreme," Judge Herndon said. "But then, his charm turned to bullying, name calling, extortion, unthinkable demands and threats. Thoughts of paradise turned into thoughts of hell and, for some, thoughts of suicide." Judge Herndon called it "the most devastating crime one could ever imagine without laying hands or even eyes on another human being."
When Sunmola has completed his 27-year prison term, he will be removed to his native home of Nigeria. For that reason, no term of supervised release was ordered. Imposition of a fine was also waived, in favor of the restitution award. Over $200,000 in proceeds from the sale of Sunmola’s four properties in South Africa has already been turned over to the District Court and will be proportionally disbursed to the individual identified victims. In the meantime, Judge Herndon expressed hope that the significant prison sentence would act as a deterrent for other scam artists, particularly Sunmola’s "underlings": "When they hear of what sentence the boss received, they will hopefully be incentivized to stop their illegal activity immediately."
The case was investigated by the St. Louis Field Office of the Chicago Division of the U.S. Postal Inspection Service. "Criminals who look for or who expect anonymity of the mail or the borders of a country to protect them when conducting criminal activity are placed on notice today," said Inspector in Charge E.C. Woodson, Chicago Division U.S. Postal Inspection Service. "The U.S. Postal Inspection Service, in partnering with the U.S. Attorney’s Office, will go beyond borders to ensure justice is served. Nothing is as painful as a broken heart, and this defendant caused extreme hardship to many of his victims."
A number of other law enforcement agencies assisted in the investigation and prosecution of this case, including the U.S. Department of Homeland Security, Homeland Security
Investigations, the U.S. Secret Service, the London Metropolitan Police Service, and the South African Police Service, which conducted its own extensive investigation into Sunmola’s activities in South Africa and initiated the foreclosure proceedings on his properties.
The case was referred to the U.S. Attorney’s Office by the Illinois Attorney General’s Office as part of an ongoing partnership between the two offices to identify, investigate and prosecute international scammers who prey on Illinois residents. This prosecution is also part of a larger initiative with the Chicago Office of the Federal Trade Commission to target romance scammers. The prosecution was handled by Assistant United States Attorneys Nathan D. Stump, Bruce E. Reppert, and Emily J. Wasserman.
Wednesday 1 February 2017
Windsor Mill Woman Pleads Guilty to Participating in a Narcotics Conspiracy While on Pretrial Release for Federal Bank Fraud and Identity Theft ChargesRead the Press Release
Baltimore, Maryland – Jasmine Young, age 28, of Windsor Mill, Maryland, pleaded guilty in U.S. District Court on January 31, 2017, to a narcotics conspiracy, which was committed while she was on pretrial release for federal bank fraud and identity theft charges.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea agreement, from November 2015 through January 2016, Young conspired with others to distribute marijuana. Young was identified after a homicide in Baltimore that was related to the drug trafficking conspiracy. According to the plea agreement a woman was killed on January 12, 2016, the same day an eight to 11 pound marijuana shipment was delivered to her residence. Also on January 12, 2016, the DEA in Maryland received information from a DEA Narcotics Task Force operating in San Diego, California, that a suspicious package was in route to an address in Windsor Mill, Maryland, for delivery on January 15, 2016. Law enforcement interdicted the package, which was addressed to Nancy Young, at Jasmine Young’s address. A narcotics dog alerted to the package for narcotics. After obtaining a search warrant, the package was found to contain 11 pounds of marijuana. DEA conducted a controlled delivery and the package was accepted by Jasmine Young. A short time later, DEA executed a search warrant at the residence and Young and a man were taken into custody.
From the apartment, law enforcement recovered: a .22 caliber handgun located in a black shoebox on top of the dryer, along with ammunition in multiple calibers and a 9mm magazine with live rounds; a loaded revolver located inside a black sectional couch (near where the man had his hands when police entered the apartment); a package of green plastic wrap containing marijuana (what was left in the parcel that was delivered to the residence by DEA); six cellular phones located in several locations throughout the home; and a large digital scale with residue located on the kitchen counter. The gun recovered from the couch was later determined to have been stolen on January 28, 2015.
Young initially denied having any involvement in the drug conspiracy, but investigators recovered text messages from some of the recovered cellular phones that showed that Young was part of the conspiracy. Young and the woman who was murdered both allowed marijuana to be delivered to their residences.
As a result of Young’s arrest on narcotics charges, her pre-trial release in the bank fraud case was revoked and she was ordered to be detained.
On April 15, 2016, Young pleaded guilty to bank fraud and aggravated identity theft. Young admitted that from July 2014 through October 2014, she used her employment at a bank to obtain the personal information of customers. Specifically, Young admitted that she used her employee access to target customer accounts with high dollar balances. Once she accessed these accounts, she took “screen shots” of the account information, including the account holder’s personal information and copies of checks that had previously been written and processed. She then provided that information to co-schemers who used the information to fraudulently obtain and write checks drawn on the customers’ accounts. The bank identified 22 victims of the scheme, which resulted in a financial loss to the bank of over $300,000.
Young faces a sentence of five years in prison for the narcotics conspiracy and up to an additional 10 years’ imprisonment based on committing the offense while on pretrial release; a maximum of 30 years in prison for bank fraud; and two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge George L. Russell III has scheduled sentencing for March 30, 2017 at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Maryland State Police, DEA, and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Lauren E. Perry and Sandra Wilkinson, who are prosecuting the cases.
Williamsville Man Pleads Guilty to Child Pornography ChargeRead 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 Troy Malecki, 48, of Williamsville, NY, pleaded guilty to possession of child pornography, depicting minors less than 12 years of age, before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that Malecki was part of an online community dedicated to the exchange and discussion of child pornography. On September 18, 2015, Special Agents from the Federal Bureau of Investigation, Violent Crimes Against Children Task Force, executed a search warrant at the defendant’s residence and seized his cellular phone. Forensic examination of Malecki’s phone revealed that he was in possession of more than 850 images of child pornography, some of which depicted prepubescent children less than 12 years of age.
The plea is the result of an investigation by the Federal Bureau of Investigation, Violent Crimes Against Children Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for May 17, 2017, at 2:00 p.m. before Judge Skretny.
Wethersfield Resident Admits Operating Investment SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTHONY G. SCIARRA, 53, of Wethersfield, formerly of Marlborough, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of wire fraud stemming from an investment scheme that defrauded individuals and couples of more than $874,000.
According to court documents and statements made in court, from 2001 until May 2012, SCIARRA operated AGS Financial, through which he offered insurance, securities and other financial products. In approximately May 2012, the Connecticut Department of Insurance revoked SCIARRA’s insurance license.
Between approximately 2007 and July 2015, SCIARRA held himself out as a bona fide insurance agent and financial advisor when, in fact, he was not. Through AGS Financial, and later through an entity he described as “Westport Enterprises,” SCIARRA solicited investments from various victim-investors with promises of high annual investment returns ranging from 4 percent to 12 percent or more. SCIARRA falsely represented to investors that he would invest their funds in a bond fund and/or a cigarette distribution business. Instead of investing any of the invested money as promised, SCIARRA diverted funds for his personal use, including to pay for restaurant meals and department store purchases, and to pay loans and other personal bills. The investigation revealed that SCIARRA also made large cash withdrawals from ATMs and at Foxwoods Casino. SCIARRA also used some of the funds to make “interest” payments to other victim-investors.
During the scheme, SCIARRA made false statements to certain victim-investors, both in person and by e-mail, in an attempt to explain the various delays in the purported interest payments. In addition to telling victim-investors that their funds had been invested as represented, SCIARRA sought to prevent the discovery of the scheme by issuing partial payments to the victim-investors as a partial return of the principal and monies that were then due. Eventually, these payments stopped and the scheme was discovered.
Through this scheme, SCIARRA defrauded at least 12 victim-investors of approximately $874,000.
Judge Shea scheduled sentencing for April 26, 2017, at which time SCIARRA faces a maximum term of imprisonment of 20 years. He is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation, with the Assistance of the Connecticut Department of Banking, Securities Division. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Washington D.C.-Based Internal Revenue Service Attorney Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Jack Vitayanon with conspiring with others to distribute 500 grams or more of methamphetamine. Vitayanon, an attorney with the Internal Revenue Service, Office of Professional Responsibility in Washington, D.C, was arrested earlier today in Washington D.C.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement(ICE), Homeland Security Investigations (HSI), New York.
As detailed in the complaint, Vitayanon conspired with others in Arizona and on Long Island to distribute methamphetamine for several years and recently negotiated and consummated the sales of distribution quantities of methamphetamine to undercover HSI special agents on Long Island. The negotiations occurred via recorded internet-based video chats and text messages, and the defendant shipped the methamphetamine from his apartment in Washington D.C. to Long Island via Federal Express.
The recipient of the package, acting at the direction of law enforcement, recorded a video chat with Vitayanon over the internet on Dec. 15, 2016 and during the recorded conversation Vitayanon was observed in his residence smoking what appeared to be methamphetamine from a glass pipe, according to the complaint.
A search of the defendant’s Washington D.C. apartment executed pursuant to a court-authorized search warrant led to the seizure of additional quantities of suspected methamphetamine, drug paraphernalia, packaging materials and drug ledgers.
“As alleged, the defendant – a federal attorney working for the IRS’s Office of Professional Responsibility – broke bad and supplemented his income by selling distribution quantities of methamphetamine,” stated United States Attorney Capers. “The defendant will now be held to account for his alleged criminal conduct.” Mr. Capers expressed his grateful appreciation to the United States Treasury Department Inspector General, HSI’s High Intensity Drug Trafficking Area group in Washington D.C. and the United States Attorney’s Office for the District of Columbia.
HSI Special Agent-in-Charge Melendez stated, “Selling methamphetamine is a serious crime which is made more egregious when it is committed by a U.S. government attorney assigned to the Office of Professional Responsibility of the IRS.” “People that sell this highly addictive and destructive drug must be brought to justice before more lives are lost to this epidemic.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Long Island Criminal Section. Assistant United States Attorney Charles N. Rose is in charge of the prosecution.
The Defendant:
JACK VITAYANON
Age: 41
Washington, DC
E.D.N.Y. Docket No. 17-MJ-80
Vinton Man Sentenced on Federal Fraud ChargeRead the Press Release
Lynchburg, VIRGINIA – Acting United States Attorney Rick A. Mountcastle announced the sentencing of a Vinton man who previously pled guilty to stealing funds from the Social Security Administration.
Robert Wozniak, 48, of Vinton, Va., previously pled guilty to one count of theft of government property and one count social security fraud. Today in District Court, Wozniak was sentenced to time served and two years of supervised released. In addition, Wozniak was ordered to pay $16,500 in restitution and a $200 special assessment.
According to evidence presented in court by Assistant United States Attorney Charlene R. Day, Wozniak admitted previously that from July 2015 through April 2016 he stole Social Security Administration funds, namely retirement benefit payments, intended for Wozniak’s deceased grandmother, for which he was not entitled. The indictment specifically claims that Wozniak intentionally concealed his grandmother’s death in order to continue to receive and spend the retirement benefit payments made by the Social Security Admiration to his grandmother.
The defendant admitted that he concealed the body of his dead grandmother, Betty Wozniak in a freezer and later a barrel for months after she died in order to continue receiving her Social Security payments. Investigators discovered the body after Wozniak’s landlord became suspicious about the barrel and a hole she noticed in the property Robert Wozniak was renting from her.
The investigation of the case was conducted by the Department of Health and Human Services, the Social Security Administration, the Bedford County Sheriff’s Office and the Department of Veteran Affairs, Office of the Inspector General. Assistant United States Attorney Charlene R. Day will prosecute the case for the United States.
United States Files Enforcement Action Against Florida Company and Senior Managers to Stop the Adulteration and Misbranding of Medicated Animal FeedsRead the Press Release
A civil complaint was filed in the U.S. District Court for the Southern District of Florida against Syfrett Feed Company Inc. of Okeechobee, Florida; its owner and President Charles B. Syfrett I; its Vice President Melissa S. Montes De Oca; and its Operations Manager Charles B. Syfrett II to stop the adulteration and misbranding of medicated animal feed in violation of the federal Food, Drug, and Cosmetic Act (FDCA), the Department of Justice announced today.
Syfrett Feed Company Inc. (Syfrett Feed) manufactures and distributes medicated and non-medicated feed, primarily for food-producing animals and fowl. The complaint alleges that the defendants adulterated and misbranded animal feeds while such feeds were held for sale. The Department filed the complaint at the request of the U.S. Food and Drug Administration (FDA).
“The Food, Drug, and Cosmetic Act is designed to make sure that medicated animal feed has sufficient labeling to ensure its safe use,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “The Department of Justice will work closely with the FDA to ensure that medicated animal feeds are manufactured in compliance with current good manufacturing practices.”
According to the complaint, the company’s medicated animal feeds failed to list the name of the active drug ingredients on the label of the medicated animal feeds and failed to include adequate instructions for use on the labels of the medicated animal feeds. For example, as noted in the complaint, the defendants did not include adequate instructions when they omitted dose administration instructions, feeding limitations and/or cautionary statements for use of the drugs in combination with other drugs on the label of the medicated feeds.
The complaint further alleges that the feed was not manufactured in conformity with current good manufacturing practices for medicated feeds. Specifically, according to the complaint, the defendants: failed to establish and maintain adequate procedures for the identification, storage, and inventory control of drugs intended for use in their medicated feeds; failed to establish and use adequate procedures for all equipment used in the production and distribution of medicated feeds to avoid unsafe contamination of medicated and non-medicated feeds; and failed to adopt labeling practices that assure that the correct labels are used for the medicated feeds they manufacture.
As noted in the complaint, the company conducted a recall of its non-medicated horse pellet food in April 2014 when customers complained that their horses were falling ill. According to the complaint, 15 horses had to be euthanized after consuming the company’s horse pellet food and in September 2014, two more horses had to be euthanized after consuming the company’s horse pellet food. Following these events, the company discontinued manufacturing medicated and non-medicated feeds for horses, according to the complaint.
According to the complaint, FDA conducted inspections of Syfrett Feed’s facility located at 3079 NW 8th Street, Okeechobee, Florida, in January 2014, June 2015 and June 2016. In 2014, following the inspection, FDA sent a Warning Letter to Mr. Syfrett I, notifying him of the significant current good manufacturing practices deviations and misbranding violations observed during the January 2014 inspection. In September 2015, FDA wrote to Mr. Syfrett I, stating that Syfrett Feed had not taken adequate measures to correct the current good manufacturing practice deviations and misbranding violations noted in FDA’s 2014 Warning Letter and 2015 inspection. According to the complaint, Syfrett Feed did not respond to FDA’s September 2015 letter.
“Animal owners and caretakers must be able to have confidence that the feed they purchase is safe and properly labeled,” said Steven M. Solomon, D.V.M., M.P.H., director of the FDA’s Center for Veterinary Medicine. “It is the responsibility of feed manufacturers to have proper procedures in place and follow good manufacturing practices to ensure the safety of their products and the animals that consume them.”
The government is represented by Trial Attorney Jocelyn Hines of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Christopher Cheek of the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of Associate Chief Counsel for Enforcement Tara Boland of the F DA, Office of General Counsel, Department of Health and Human Services.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
U.S. Attorney Stanton Announces Upcoming ResignationRead the Press Release
Memphis, TN – Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, has announced his resignation, effective February 28, 2017. U.S. Attorney Stanton has served in office since August 2010.
"Nearly six and a half years ago I was provided the professional honor of a lifetime," U.S. Attorney Stanton said. "To be able to serve the district where I was born, raised and educated, and for which I have tremendous love and respect, was a remarkable experience. I am tremendously grateful to President Obama, Senators Lamar Alexander and Bob Corker and Congressman Steve Cohen for placing their trust in me. I am confident the extraordinary professionals of the U.S. Attorney’s Office will remain tirelessly devoted to the unwavering cause of justice on behalf of the citizens of West Tennessee and our great nation. I am proud of the work we have accomplished in and out of the courtroom, including building meaningful bonds of trust with the community we serve. As I step away from this esteemed post, I remain committed to being actively engaged in serving our great community."
When he assumed the role as U.S. Attorney in 2010, Mr. Stanton committed himself to protecting the nearly 1.5 million citizens that comprise West Tennessee through the vigorous enforcement of federal laws.
One of Mr. Stanton’s highlights during his tenure as U.S. Attorney was the creation of a dedicated Civil Rights Unit in 2011. The Unit, which has earned national acclaim, is responsible for prosecuting individuals who commit federal civil rights crimes, such as human trafficking, law enforcement corruption, excessive force, official misconduct, hate crimes, predatory lending, unfair housing, and Americans with Disabilities Act (ADA) violations.
Mr. Stanton has served on the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) Board. The program was recently awarded the U.S. Attorney’s Office funding to implement a federal initiative that exclusively targets crimes involving heroin and prescription opioids. He is also a founding member of the Multi-Agency Gang Unit, which is comprised of federal, state and local law enforcement officials, with a common goal of combating criminal gang activity.
With a focus on prosecuting cases involving violent crime, human trafficking, child exploitation, hate crimes, health care fraud, identity theft, racketeering, drug trafficking, and unlawful firearm possession, prosecutorial highlights during Mr. Stanton’s tenure include:
• Chastain Montgomery, Sr., was sentenced to consecutive life sentences in federal prison for the murders of United States Postal Service employees Paula Robinson and Judy Spray during a robbery of the establishment. Mr. Stanton served as co-counsel on the trial team.
• Ricky Lee Stewart, III was sentenced to life in federal prison for fatally shooting Henderson Police Department Captain Dennis Cagle during an attempted robbery of a Henderson, Tennessee Save-A-Lot. Stewart’s wife, Cheryl Freeman Stewart, was sentenced to 20 years in federal prison for her role in the attempted robbery.
• Orlando Garcia was sentenced to life in federal prison for his role in the murder of Tennessee State Trooper Calvin Wayne Jenks, who was fatally shot while conducting a traffic stop in Tipton County.
• Dale Mardis was sentenced to life in federal prison for the racially-motivated killing of a Shelby County Code Enforcement Officer. Mr. Stanton served as co-counsel on the trial team.
• Craig Petties, a leader of one of the largest drug trafficking organizations in the Mid-South, was sentenced to nine life sentences in federal prison. More than 40 additional people were also prosecuted for their roles within this violent and lucrative criminal enterprise.
• Clarence Mumford, Sr., the ringleader of a two-decade-long teacher certification testing scam, was sentenced to 60 months in federal prison. Thirteen other participants in the scheme were also prosecuted, and an additional 40 reached diversion agreements that resulted in the loss of their teaching licenses.
• Justin Shawn Baker was sentenced to federal prison for violating the civil rights of students and faculty of the Margolin Hebrew Academy. Baker defaced a Torah and religious prayer books, which the students and faculty used for a worship service conducted at the Doubletree Hotel in Jackson.
• Terrence Yarbrough, aka "T-Rex," was sentenced to more than 40 years in federal prison for sex trafficking at least 10 female victims, some underage teens. To coerce the victims into prostituting for him, he beat them with belts, wooden coat hangers, crowbars, padlocks attached to belts, and dog chains.
• Amos Patton, a former soldier, was sentenced to 50 years in federal prison for assault with intent to murder four soldiers at the Millington Army National Guard Recruiting Center.
• Terrence Milam was sentenced to 170 years in federal prison for producing child pornography and engaging in sexually explicit conduct with two prepubescent female minors between October 2013 and late January 2015.
• Christopher T. Crawford and Jordan West were sentenced to federal imprisonment for their roles in a lucrative shipping theft scheme that defrauded FedEx and wireless carriers of more than $1.8 million.
• Remark Chism was sentenced to federal prison for masterminding a federal benefit fraud scheme that cost the government approximately $2.8 million. His brother, Ray Chism III, was sentenced in a separate case for executing a federal benefit fraud scheme that defrauded the government of $400,000.
Between 2010 and 2016, the U.S. Attorney’s Office collected more than $50 million in civil and criminal actions.
During his tenure, Mr. Stanton also made it a priority to conduct outreach and strengthen relationships between law enforcement partners, citizens, and community groups.
For example, Mr. Stanton engaged the district’s clergy, civic, nonprofit and business communities through community forums, roundtable discussions and a myriad of speaking engagements; encouraged and equipped the district’s youth by visiting schools, community centers, and nonprofit organizations that cater to youth; and implemented programs that provide employment opportunities to non-violent ex-offenders determined to become productive members of society.
Mr. Stanton spearheaded the U.S. Attorney’s Office’s involvement in the U.S. District Court’s reentry and drug court program; appointed a Reentry and Prevention Coordinator; established an Employer Recruitment Program to help increase the number of companies who hire non-violent ex-offenders; and conducted quarterly visits to both the Federal Correctional Institution (FCI) in Memphis and Satellite Prison Camp (SPC) in Millington to talk with inmates about transitional resources, supervised release, and the necessity to watch the company they keep.
In addition, Mr. Stanton chaired the Attorney General’s Advisory Committee’s Racial Disparities Working Group. Under his leadership, this group of U.S. Attorneys from across the country addressed implicit and unconscious bias, potential sentencing disparities, and requested enhanced training programs for law enforcement officials.
Mr. Stanton is responsible for fully staffing both the Memphis and Jackson divisions of the U.S. Attorney’s Office by hiring two-thirds of the Office’s current Assistant U.S. Attorneys (AUSAs), along with nearly half of the Office’s support staff. He also appointed the district’s first-ever Appellate Chiefs and created a dedicated Appellate Unit to promote and defend the government’s interests in the Courts of Appeals. He was able to accomplish these milestones while navigating his staff through several financial challenges, including a hiring freeze, government shutdown and budget sequestration.
Mr. Stanton, a native Memphian, is a graduate of Central High School, the University of Memphis and the University of Memphis Law School. Prior to serving as U.S. Attorney, Mr. Stanton served as Senior Counsel with Federal Express Corporation. He also served as an Assistant City Attorney for the City of Memphis and in private practice with two Memphis law firms.
Two San Diego Ship Owners Plead Guilty After Intentional Sinking for Insurance MoneyRead the Press Release
Special Assistant U.S. Attorney Ari D. Fitzwater (619) 546-8756 and Assistant U. S. Attorney Patrick J. Bumatay (619) 546-8450
NEWS RELEASE SUMMARY – February 1, 2017
SAN DIEGO – Christopher Switzer and Mark Gillette pleaded guilty in federal court today to conspiring to destroy their own vessel, the “Commander,” a 57-ft boat used for charter sport-fishing trips, in order to fraudulently collect an insurance payout.
According to their plea agreement, on October 11, 2016, Switzer and Gillette headed out to sea on the Commander from its homeport in Mission Bay and headed toward Long Beach. The two had planned to intentionally sink the Commander and submit a claim to their insurance company.
Switzer and Gillette admitted how they attempted to sink the Commander while off the coast of California by destroying plastic PVC piping in the ship’s engine room, which caused sea water to flood into the vessel. They also pumped sea water onto the vessel and punctured its bulkhead to let sea water spread faster throughout the boat.
After sea water had flooded the Commander and as it was starting to go under, Switzer and Gillette called the United States Coast Guard for help which promptly launched a helicopter to find the two. A Dana Point Harbor Patrol rescue fireboat later found the two boatmen atop the partially submerged ship. As part of their plea agreement, Switzer and Gillette acknowledged that their actions subjected themselves and the emergency responders to the risk of death or serious injury.
Upon their rescue, Switzer and Gillette gave a series of false statements to officials to cover their plot to sink the Commander for insurance money. They indicated the first sign of a problem on the Commander was a power failure and they could not figure out why the vessel was flooding.
Switzer and Gillette’s actions failed to completely sink the Commander and it was found adrift near Dana Point, California the next day. A commercial salvage company was able to successfully tow the Commander back to San Diego Bay, California, where investigators uncovered the scheme to intentionally sink the ship.
Switzer and Gillette pleaded guilty before U.S. Magistrate Judge Jill L. Burkhardt. They face a maximum penalty of 10 years in prison and a maximum $250,000 fine. As part of their plea, they are required to reimburse the U.S. Coast Guard over $15,000 for the price of launching the rescue helicopter and other costs.
Sentencing is scheduled for March 6, 2017 at 9 a.m. before U.S. District Judge Michael M. Anello.
DEFENDANTS Case Number 17cr0251-MMA
Christopher Switzer Age: 39
Mark Gillette Age: 37
SUMMARY OF CHARGES
Conspiracy to Destroy Vessels – Title 18, U.S.C., Section 2271
AGENCY
U.S. Coast Guard Investigative Service
Two Florida Men Sentenced to Prison for Identity Theft and Credit Card FraudRead the Press Release
Two men who used stolen credit card information to make fraudulent purchases in Iowa were sentenced to federal prison this week.
Maiko Aragon, age 24, from Miami, Florida, received more than three years in federal prison after pleading guilty to aggravated identity theft and conspiracy to use counterfeit credit cards. David Viamontes-Pando, age 23, also from Miami, Florida, received a one-year prison term after pleading guilty to the same offenses.
Evidence at the sentencing hearings showed that Aragon, Viamontes-Pando, and a third man, Henry Herrera, traveled to Iowa on multiple occasions in January 2016. The evidence showed that the men used stolen credit card information to make fraudulent purchases at stores in and around Cedar Rapids, Iowa. Testimony at the sentencing hearing also showed that Aragon installed a skimming device on a gas pump in order to steal credit card information.
Both Aragon and Viamontes-Pando were sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Aragon was sentenced to 45 months’ imprisonment and ordered to make $19,422.13 in restitution to victims. He must also serve a two-year term of supervised release after the prison term. Viamontes-Pando was sentenced to 12 months’ imprisonment and ordered to make $3,654.10 in restitution to victims. He must also serve a one-year term of supervised release after the prison term. Henry Herrera, who has pleaded guilty to the same offenses as Aragon and Viamontes-Pando, is set to be sentenced on February 22, 2017. There is no parole in the federal system.
In sentencing Aragon and Viamontes-Pando, Judge Strand commented that the offenses undermined public faith in financial institutions and were driven by greed. Judge Strand also increased Aragon’s sentence due to Aragon’s leadership role in the operation.
The case was prosecuted by Assistant United States Attorney Ravi T. Narayan and investigated by Homeland Security Investigations and the Marion Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-24.
Follow us on Twitter @USAO_NDIA.
Tonawanda Man Sentenced for Production of Child PornographyRead 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 Jason M. Smith, 36, of Tonawanda, NY, who was convicted of production of child pornography, was sentenced to 40 years in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that on April 11, 2014, the Lancaster Police Department executed a search warrant at Smith’s residence on Byron Avenue in Tonawanda. During the search, officers seized external hard drives. Subsequent examination by the Western New York Regional Forensic Laboratory determined that the defendant was producing child pornography at his residence.
The investigation determined that between 2010 and 2012, Smith coerced Victim 1, who was less than 12 years old, to engage in sexually explicit conduct and produced a visual depiction of the conduct. The defendant was a friend of Victim 1’s father. Between July 2011 and September 2013, Smith coerced another individual, Victim 2, a 15-year old girl he met on MeetMe.com, to engage in sexual intercourse and took pictures of the conduct.
In addition, the investigation determined that the defendant sexually assault at least five more underage female victims. A forensic review of Smith’s electronics devices recovered over 1000 images of child pornography.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Lancaster Police Department, under the direction of Chief Gerald J. Gill, Jr.; and the Cheektowaga Police Department, under the direction of Chief David Zack.
Tommy Allen “Bert” Sentenced to Serve 240 Months in Prison for Distributing Crack CocaineRead the Press Release
GREENEVILLE, Tenn. – On Jan. 31, 2017, Tommy Allen, a.k.a. Bert, 30, of Kingsport, Tenn., formerly of Forrest City, Ark., was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 240 months in federal prison for distributing crack cocaine. Upon his release from prison, he will be on supervised release for five years. There is no parole in the federal system.
Tommy Allen pleaded guilty in June 2016 to a conspiracy to distribute 280 grams or more of crack cocaine. He was a member of a drug trafficking organization, involving 10 co-defendants, which obtained powder cocaine in Forrest City, Ark., and then transported it to Kingsport, Tenn., where it was “cooked” into crack cocaine and distributed in the Tri-Cities. Tommy Allen, the brother of the conspiracy’s leader, Billy Allen, a.k.a. “Grill,” distributed crack cocaine and fielded phone calls from customers ordering crack cocaine from the organization. Tommy Allen admitted to being conservatively responsible for distributing between 840 grams and 2.8 kilograms (approximately two to six pounds) of crack cocaine. He faced a minimum mandatory sentence of 10 years in prison as a result of trafficking in at least 280 or more grams of crack cocaine.
Agencies involved in this investigation included the Second Judicial District Drug Task Force, Kingsport Police Department, Sullivan County Sheriff’s Office, Bristol Police Department, Tennessee Bureau of Investigation, Bureau of Alcohol Tobacco Firearms and Explosives, Internal Revenue Service, and Drug Enforcement Administration. J. Gregory Bowman, Assistant U.S. Attorney represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Three Pittsburgh Residents Charged in Cocaine Distribution RingRead the Press Release
PITTSBURGH - Three residents of Pittsburgh have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to possess with intent to distribute and distribute 5 kilograms or more of cocaine, possession with intent to distribute 5 kilograms or more of cocaine, and conspiracy to commit money laundering, Acting United States Attorney Soo C. Song announced today.
The three-count indictment, returned yesterday, named Richard Stuart Wright, 74, and his wife, Michele Lynn Connell, 47, and Walter John Amman, III, 66, as defendants.
According to information presented to the court, several controlled purchases of cocaine were made from persons involved in the conspiracy which permitted federal agents to acquire search warrants for the residences of Wright, Connell and Amman, as well as a storage garage near Wright’s house, bank accounts and safety deposit boxes. A total of more than 5 kilograms of cocaine, some converted to crack, was located, along with over $600,000 in cash, numerous firearms, multiple vehicles and Harley Davidson motorcycles and drug packaging materials. Prepackaged amounts of cocaine were located in a fireman’s jacket with Amman’s name on it in his residence, and additional packaged amounts were located in his truck. These prepackaged quantities were color coded by their weight and also by their contents (i.e. crack cocaine or powder cocaine). This coding system was consistent with the prepackaged drugs in Wright’s residence and nearby garage. Federal authorities have also filed court documents to forfeit Wright’s Daytona Beach, Florida, residence, alleging that it was purchased with laundered money from Wright’s drug trafficking.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of up to $40,000,000, or both, for the drug charges faced by Wright and Amman, while Connell and Wright also face a maximum total sentence of 20 years in prison, a fine of up to $500,000, or both, for the money laundering charge. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation, Drug Enforcement Administration, Homeland Security Investigations, U.S. Postal Inspection Service and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Franklin County Residents Sentenced on Identity Theft ChargesRead the Press Release
St. Louis, MO – Three Franklin County, Missouri, residents have been sentenced for their participation in a conspiracy to commit identity theft and access device fraud in the Eastern District of Missouri.
According to court documents, John Dean Townsend stole the personal identification information of his customers while he was employed at an automotive dealership located in St. Louis County and sold the information to Jessica L. Franklin in exchange for quantities of methamphetamine and U.S. currency. Franklin used the stolen identification information to manufacture fraudulent Missouri Department of Revenue temporary driver’s licenses which Franklin and Jesse Ray Chitwood used to open lines of credit and purchase merchandise at various retailers throughout the Eastern District of Missouri.
Jessica L. Franklin, Beaufort, MO, pled guilty in October 2016 to one count of conspiracy to commit identity theft and one count of aggravated identity theft. She was sentenced in January 2017 to 45 months in the Bureau of Prisons.
Jesse Ray Chitwood, St. Clair, MO, pled guilty in September 2016 to one count of conspiracy to commit identity theft. He was sentenced in January 2017 to 24 months in the Bureau of Prisons.
John Dean Townsend, Pacific, MO, was sentenced today to 13 months on one felony count of conspiracy to commit identity theft and access device fraud.
All defendants appeared before United States District Judge John A. Ross.
This case was investigated by the Franklin County Sheriff’s Office; the Washington, Missouri, Police Department; the Ballwin Police Department and the Kirkwood Police Department. Assistant United States Attorney Jennifer Roy handled the case for the U.S. Attorney’s Office.
Tahlequah Man Sentenced to 120 Months for Drug Conspiracy, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JIMMY W. SEQUICHIE JR, age 25, of Tahlequah, Oklahoma, was sentenced to 120 months imprisonment, and 5 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(B); and for POSSESSION OF FIREARM IN FURTHERANCE OF A DRUG TRAFFICKING CRIME, in violation of Title 18, United States Code, Sections 924(c)(1)(A) and 2.
The Superseding Indictment alleged that from in or about the end of 2013 and continuing until on or about January 27, 2016, in the Eastern District of Oklahoma, the defendant, did willfully and knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and to distribute 50 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The Superseding Indictment further alleged that on or about November 25, 2015, within the Eastern District of Oklahoma, the defendant did knowingly possess a firearm in furtherance of a drug trafficking crime.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Tahlequah Police Department, the Muskogee Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the Drug Enforcement Administration. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
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 Shannon Henson represented the United States.
Staunton Doctor Sentencing for Illegal Prescribing of NarcoticsRead the Press Release
Lynchburg, VIRGINIA – A Staunton physician practicing in Lexington at Carilion Stonewall Jackson Hospital Emergency Department was sentenced today on a federal drug distribution charge, Acting United States Attorney Rick A. Mountcastle announced.
Stanley Elmer Heatwole, 73, of Staunton, Virginia, previously waived his right to be indicted and pled guilty to an Information charging him with one count of distribution of controlled substances. Today in District Court, Heatwole was sentenced to three years of probation, six months of which must be spent on home confinement. In addition, the defendant was ordered to pay a $3,000 fine and a special assessment of $100.
According to evidence presented at previous hearings by Assistant United States Attorney Jennie L. M. Waering, from 2009 to 2014, Stanley Elmer Heatwole wrote controlled substance prescriptions, specifically hydrocodone, to a female patient with whom he had an intimate relationship. These prescriptions were not for a legitimate medical purpose and were outside the usual course of professional practice. In 2014, his license to practice medicine was suspended.
The investigation of the case was conducted by the Tactical Diversion Squad of the Drug Enforcement Administration and the Virginia State Police. Assistant United States Attorney Jennie L. M. Waering is prosecuting the case for the United States.
St. Louis County Man Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – Charles Hicks, Fenton, Missouri, was sentenced to 27 months in prison involving a false invoice scheme to defraud two employers, causing a loss of $386,000. In addition to the prison sentence, Hicks was ordered to pay restitution of $386,000.
According to his plea agreement, Hicks devised a false invoice scheme to defraud two successive employers, RockTenn Company and MarChem Company, over the course of two and a half years. Hicks had authority to identify vendors and authorize purchases and used dummy companies to submit and receive payments for false invoices.
Hicks pled guilty in October to one felony count of mail fraud. He appeared today for sentencing before U.S. District Judge Stephen N. Limbaugh, Jr.
This case was investigated by the FBI and the U.S. Postal Inspection Service. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Six Restaurant Employees Plead Guilty to Illegal Reentry ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that six defendants pleaded guilty to illegal reentry charges before Chief U.S. District Judge Frank P. Geraci including:
• Joel Hernandez-Martinez, 29, of Mexico, pleaded guilty to illegal reentry after deportation following a felony conviction. The defendant, who worked at Don Tequila, faces up to 10 years in prison when sentenced on April 20, 2017, by Judge Geraci.
• Miguel Sanchez-Ocampo, 40, of Mexico, pleaded guilty to illegal reentry after deportation after a felony conviction. The defendant, who worked at El Agave, faces up to 10 years in prison when sentenced by Judge Geraci at a later date.In addition, the following four defendants pleaded guilty to illegal reentry after deportation and were each sentenced to time served. They are now in the custody of Immigration and Customs Enforcement (ICE) awaiting execution of prior removal orders entered against them:
• Walter Lopez-Cabrera, 30, of Honduras, who defendant worked at Agave;
• Araceli Lopez-Martinez, 33, of Mexico, who worked at Don Tequila;
• Alejandro Valadez-Leon, 46, of Mexico, who worked at Agave; and
• Eliel Sanchez-Ocampo, 34, of Mexico, who worked at Don Tequila.The pleas and sentencings are the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly and the New York State Department of Taxation and Finance.
Simpson County, Kentucky, Woman Guilty of Bank RobberyRead the Press Release
Stole $43,100 and threatened to kill bank employees, customers and an alleged child held hostage
BOWLING GREEN, Ky. – A Simpson County, Kentucky, woman pleaded guilty Monday, January 30, 2017, in United States District Court, before District Court Judge Greg N. Stivers, to a single count of bank robbery announced United States Attorney John E. Kuhn, Jr.
According to the plea agreement, Patricia Lamar Brewer, 48, admitted to robbing the Citizens First Bank located at 1200 South Main Street, in Franklin, Kentucky, of $43,100 at approximately 9:30 a.m. on July 30, 2012.
Further, Brewer admitted to wearing eye-glasses, a hat, and a wig and handing a teller a threatening note stating:
“Don’t call cops or set off any alarms be calm we are watching you we have this ladys child if she don’t do what we say she will die and her daughter and everyone in this bank 80,000 dollars unmarked, untraceable bills if she is not out here in 5 min she will die along with her daughter and everyone in this bank we are watching you now so hurry now if you want to live.”
Brewer was previously convicted of robbing a bank in Panama City Beach, Florida, using a similar disguise and note. Evidence gathered from that robbery led FBI to Brewer and the Kentucky bank robbery.
Brewer remains in federal custody awaiting sentencing on May 2, 2017, at 10:30 a.m. CST, before District Judge Stivers in Bowling Green.
If convicted at trial, Brewer could have been sentenced to a 20-year maximum term of imprisonment, fined $250,000 and served a three-year term of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation (FBI).
Seven Defendants Indicted in Multi-Million Health Care Fraud and Money Laundering Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
Seven defendants including owners, doctors, a manager, and a laboratory representative of sober homes and alcohol and drug addiction treatment centers were charged for their participation in a health care fraud and money laundering scheme that involved the filing of fraudulent insurance claim forms and defrauded health care benefit programs.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Dave Aronberg, State Attorney, Palm Beach County State Attorney’s Office, Jeff Atwater, Florida Chief Financial Officer, William D. Snyder, Sheriff Martin County Sheriff's Office, Robert Koons, Special Agent in Charge, Amtrak Office of Inspector General, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA), Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), Ric Bradshaw, Sheriff, Palm Beach County Sheriff's Office (PBSO), Bryan Kummerlen, Chief, West Palm Beach Police Department, Jeffrey S. Goldman, Chief, Delray Beach Police Department, Pam Bondi, Florida Attorney General, and Scott Rezendes, Special Agent in Charge, Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement.
Kenneth Chatman, a/k/a “Kenny,” 46, of Boynton Beach, Joaquin Mendez, 52, of Miramar, Donald Willems, 40, of Weston, Fransesia Davis, a/k/a “Francine,”a/k/a “Francesa,” 44, of Lake Worth, Michael Bonds, 45, of Delray Beach, and Laura Chatman, 44, of Boynton Beach, are charged with one count of conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349, and one count of money laundering conspiracy, in violation of Title 18, United States Code, Section 1956(h). Stefan Gatt, 27, of Deerfield Beach, is charged with one count of conspiracy to commit health care fraud. Kenneth and Laura Chatman are also charged with seven counts of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(A)(i), three counts of money laundering in excess of $10,000, in violation of Title 18, United States Code, Section 1957, and two counts of making a false statement related to a health care matter, in violation of Title 18, United States Code, Section 1035(a)(1). Joaquin Mendez, Fransesia Davis, and Michael Bonds are also charged with two counts of money laundering. Donald Willems is also charged with one count of money laundering. Kenneth Chatman and Davis are charged with one count of maintaining a drug-involved premises, in violation of Title 21, United States Code, Section 856(a)(2). Kenneth Chatman is charged with one count of sex trafficking conspiracy, in violation of Title 18, United States Code, Section 1594(c). The defendants have each been arraigned on the charges.
According to the indictment, defendants Kenneth Chatman, Davis, and Bonds established sober homes, including Stay’n Alive, Inc., Redemption Sober House, Inc., Total Recovery Sober Living LLC, and other sober homes, which were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. To obtain residents for the sober homes, members of the conspiracy provided kickbacks and bribes, in the form of free or reduced rent and other benefits, to individuals with insurance who agreed to reside at the sober homes, attend drug treatment, and submit to regular drug testing that members of the conspiracy could bill to the residents’ insurance plans. Although the sober homes were purportedly drug-free residences, some of the defendants permitted the residents to continue using drugs as long as they attended treatment and submitted to drug testing.
Defendants Kenneth Chatman, Bonds, and Davis referred the sober homes’ residents who had insurance to treatment centers owned by Kenneth Chatman but titled in the name of Laura Chatman. These treatment centers purportedly offered clinical treatment services for persons suffering from alcohol and drug addiction. In most instances, defendant Kenneth Chatman knew that the sober home residents referred to the treatment centers, Journey to Recovery LLC, in Lake Worth, Florida, and Reflections Treatment Center, LLC, in Margate, Florida, were using drugs.
Defendant Kenneth Chatman hired doctors, including defendants Mendez and Willems, to serve as medical directors of his treatment centers. The doctors ordered drug treatment and drug testing for the sober home residents, specifically expensive urine and saliva drug screens and allergy testing, regardless of whether such treatment and testing were medically necessary. The defendants provided services meant solely to maximize insurance reimbursements. In some instances, defendants Kenneth Chatman and Davis submitted urine and saliva samples from employees instead of urine and saliva from patients. In other instances, defendant Kenneth Chatman caused confirmatory testing to be performed and billed for residents who left the sober homes and were no longer receiving treatment at the treatment centers. Defendants Mendez and Willems also falsely documented patient files to make it appear as though they reviewed the test results.
Defendants Kenneth Chatman and Davis engaged in various tactics to keep patients from being able to leave Reflections and Journey, including threatening violence, and confiscating their belongings, such as car keys, telephones, medications, and food stamps, in order to maintain the ability to continue fraudulently billing their insurance companies.
Defendant Kenneth Chatman also recruited and coerced female patients and residents into prostitution, telling them that they would not have to pay rent or participate in treatment or testing so long as they would allow him to continue to bill their insurance companies for substance abuse treatment and testing that the patients did not receive.
Defendants Kenneth and Laura Chatman submitted to the Florida Department of Children and Families fraudulent applications for licensure for Journey to Recovery and Reflections Treatment Center, stating that Laura Chatman was the sole owner of those entities and hiding the fact that Kenneth Chatman owned and operated the treatment centers.
If convicted, the defendants face a maximum statutory sentence of ten years in prison for the conspiracy to commit health care fraud and money laundering in excess of $10,000 charges; a maximum statutory sentence of twenty years in prison for the money laundering conspiracy, money laundering, and maintaining a drug-involved premises charges; and a maximum statutory sentence of five years in prison for making a false statement related to a health care matter. Kenneth Chatman faces a maximum statutory sentence of life in prison for the sex trafficking conspiracy charge. The indictment also seeks the forfeiture of more than $5.4 million that insurance companies paid based upon the fraudulent claims submitted by members of the conspiracy.
An indictment is a formal charging document notifying the defendant of the charges. All persons charged in an indictment are presumed innocent until proven guilty in a court of law.
Potential victims should call (561) 822-5114 or submit complaints through the IC3 Complaint Form - https://www.ic3.gov/complaint/default.aspx and use the key word “Chatman Reflections” in the “Description of the Incident” field when submitting complaints related to this case.
Ferrer commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Palm Beach County State Attorney's Office Sober Homes Task Force, Florida Division of Investigative and Forensic Services, Martin County Sheriff's Office, Amtrak OIG, DOL-OIG, DOL-EBSA, National Insurance Crime Bureau, Palm Beach County Sheriff's Office, West Palm Beach Police Department, Delray Beach Police Department, Florida Attorney General Office of Statewide Prosecution, and OPM-OIG. The cases are being prosecuted by Assistant United States Attorney A. Marie Villafaña.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
San Fernando Valley Man Who Served Nearly 8 Years for Investment Scam Sentenced to Another 6 Months for Violating Terms of ReleaseRead the Press Release
LOS ANGELES – A convicted con man who defrauded a North Carolina man out of more than $8.7 million and was sentenced to nine years in federal prison has been sentenced to another six months in prison for violating the terms of his supervised release by traveling to Africa without permission in relation to another possible fraud scheme.
Thomas Mitchell Johnson, 62, was sentenced Monday afternoon to six months in federal prison, which will be followed by two years of supervised release. Johnson lives in Sherman Oaks, and he resided in Burbank prior to being convicted and sentenced in 2008.
The sentencing follows Johnson’s admission late last year that he violated the terms of his supervised released – a three-year period of court supervision that followed his prison term – by traveling to the Ivory Coast without permission from the court or his probation officer.
On July 25, 2015 – only 10 days after being released from federal prison in the fraud case – Johnson sought a court order to allow him to travel to the Ivory Coast. Johnson claimed he had an opportunity to work as a consultant on a cashew and almond processing plant with the government of the Ivory Coast, and that the government of the West African nation had agreed to pay his travel and living expenses. This request was denied by the court.
In April and July of 2016, Johnson sought permission to travel to New York City for work, requests that were granted. On July 20, 2016, Johnson was stopped by U.S. Customs and Border Protection at Los Angeles International Airport after arriving on a flight from Paris as part of trip that originated in the Ivory Coast. A review of his passport revealed that Johnson had traveled to the Ivory Coast in both April and July of 2016. Further investigation revealed that Johnson had made a video in New York City in May 2016 in which he discusses plans for his company to engage in cashew and cocoa processing, how “we are already committed on paper” to investing “$50 million every six months for two and one-half years,” and that the project would create hundreds of thousands of jobs in the Ivory Coast.
The Probation Office filed a petition with the court concerning Johnson’s unauthorized travel, allegations that Johnson admitted in December.
“This defendant lied to his probation officer and lied to customs officials at LAX, and his violations are even more egregious because it appears that he was traveling in order to engage in another scheme to defraud,” said United States Attorney Eileen M. Decker. “Despite a lengthy prison sentence, this defendant took steps almost immediately upon release to flout the court’s authority and the law. The public should be aware of persistent recidivists who simply cannot stop committing their crimes.”
Johnson was on supervised released after serving a prison sentence resulting from a fraud scheme in which he defrauded a North Carolina man out of millions of dollars in a scheme that purportedly involved high-yield bonds. Johnson was sentenced after being found guilty at trial of six counts of interstate transportation of stolen property and five counts of money laundering. Through his company, Zurich Capital Holdings, Inc., Johnson offered an investment opportunity to the victim-investor, who transferred $10 million to an account Johnson controlled. Johnson spent the majority of the victim’s money on extravagant personal expenses for himself and his girlfriend including the purchase of two luxury homes in Burbank and high-end automobiles, including two Bentleys, two Mercedes Benz and a Land Rover.
Johnson was sentenced on Monday for the supervised release violation by United States District Judge R. Gary Klausner.
The case Johnson was investigated by the FBI, and the violation of supervised release was investigated by the United States Probation Office. Assistant United States Attorney Ruth C. Pinkel of the Public Corruption and Civil Rights Section prosecuted the case.
Rose Hill Woman Sentenced to Prison for Conspiring to File Fraudulent Income Tax ReturnsRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that on today, in federal court, United States District Judge Terrence W. Boyle, sentenced MIRNA LETICIA DURAN, 39, of Rose Hill, North Carolina, to 24 months imprisonment followed by 3 years of supervised release and ordered her to pay $247,290 in restitution to the Internal Revenue Service.
On June 27, 2016, DURAN pled guilty to conspiracy to file fraudulent income tax returns using Individual Taxpayer Identification Numbers (ITINs). The ITIN program enables aliens, who earn income in the United States, to file income tax returns and pay taxes. The wage and tax statements attached to these ITIN returns were fraudulent. Refunds were inflated by claiming fictitious dependents to obtain child tax credits. The total amount of refunds sought by DURAN and her co-conspirators exceeded 1.4 million dollars. The IRS did not issue all the refunds sought because it detected the fraud.
DURAN also filed a fraudulent return in her name, falsely claiming she earned income working for a company and paid withholding taxes resulting in a $9,409 tax refund.
The Internal Revenue Service’s Criminal Investigation Division led the investigation of this case with the assistance of the United States Department of Homeland Security Investigations (HIS), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Postal Inspection Service, and the Duplin County Sheriff’s Office.
Assistant United States Attorney Susan B. Menzer represented the government.
Ringleader of Texas-Based Gas-Pump Skimming and Identity Theft Scheme Convicted on All ChargesRead the Press Release
Jury Convicts Last of Seven Defendants in Scheme that Stretched from Texas to Colorado, Indiana, Wisconsin, Ohio and Michigan
GRAND RAPIDS, MICHIGAN — Antonio DeJesus Perez-Martinez, 44, of Austin, Texas, was convicted on 30 January 2017 of conspiracy to commit wire-fraud, credit account fraud, and aggravated identity theft after a four-day jury trial. Perez-Martinez, the last of eight defendants charged in the case and the overall leader of a conspiracy that at times involved over a dozen participants, remains in the custody of the U.S. Marshals Service pending sentencing on 15 May 2017 before Chief Judge Robert J. Jonker, who presided over the trial.
The evidence at trial established that Perez-Martinez, a Cuban citizen and lawful permanent resident of the United States ("green-card" holder), recruited numerous other recently-arrived Cuban citizens – all of whom had entered the United States in 2014 under a special "parole" program that admits Cuban citizens who present themselves to immigration authorities at the border – into a fraud scheme that initially involved obtaining compromised credit-account data from illicit websites, encoding that data onto cards, and using the "cloned" cards to bulk-buy gift cards and stored-value cards. During the Summer of 2015, Perez-Martinez switched from acquiring account data online to using "skimming" devices that his accomplices secretly installed inside gas-pumps, and also extended his group’s operation into West Michigan. Skimming devices capture the account data of any card used to purchase gas without interfering with the purchase, leaving the account holder unaware that the data has been compromised until it has been re-encoded onto cloned cards and used to make unauthorized purchases. Because skimming devices acquire account data firsthand, the numbers are more recent and more reliable than those acquired secondhand from online hackers, and the illegal profits are greater.
Perez-Martinez’ conviction brings the total number of convictions from the case to seven: Raul Gonzalez Falcon (29), Yunier Carballo-Pupo (34), Manuel Perez-Cabrera (38), and Michel Velazquez-Gregori (30), none of whom had prior criminal records and all of whom agreed to plead guilty and to cooperate with the investigation, all received sentences of 21 months in prison. Pedro Sanchez-Pupo (32) received a sentence of 37 months. A seventh defendant, Juan Estrada-Galvez, was allowed to plead guilty to a state misdemeanor in Kent County when the investigation determined that his involvement in the scheme was minimal. Perez-Martinez faces maximum penalties of 30 years in federal prison for the conspiracy and ten years for the credit account fraud, as well as a mandatory two-year prison sentence for the aggravated identity theft charge that must be served after the sentences on the first two counts are complete.
"Identity-theft is a continually expanding and especially pernicious form of property crime," stated Acting U.S. Attorney Andrew Birge, "and the pump-skimmer scheme is an aggravated form of identity theft because it targets every citizen of West Michigan doing one of the most basic and necessary things we all have to do: putting gas in our tanks. Any person who comes to West Michigan on a skimmer crew had better understand that the odds of getting caught are good, and that if they are caught, they will be prosecuted in Federal court."
"As demonstrated by Monday’s guilty verdict, the defendant orchestrated a fraudulent scheme in order to steal proprietary financial information from their victims through the use of credit card skimmers at local gas stations," added David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "Criminals who engage in these types of plots exploit and manipulate the very technology that we depend on to conduct secure financial transactions in the retail marketplace. Furthermore, such high-tech criminal activity causes significant losses for both merchants and banking institutions. The FBI and its local, state and federal law enforcement partners remain committed to protecting consumers, businesses, and financial institutions from the fraud schemes of criminal enterprises like the one this defendant led."
The case was investigated primarily by the FBI’s Lansing office, with assistance from the U.S. Postal Inspection Service, the Grand Rapids Metro Fraud and Identity-Theft Team, the Grand Ledge Police Department, and the McAllen Police Department, McAllen, Texas. It is being prosecuted by Assistant U.S. Attorney Hagen W. Frank.
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Richfield man indicted for using business accounts to buy high-end vehicles, underpay taxes by $350,000Read the Press Release
A Richfield man was indicted on charges that he illegally failed to pay nearly $350,000 in income taxes by using a business account to pay personal expenses over nearly a decade, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.
James M. Pelagalli, 60, was indicted on one count of attempt to evade or defeat payment of tax. Pelagalli used various business names and entities to conceal income and assets, according to the indictment.
For example, he used business accounts he controlled to pay for personal expenses, including the purchase of a 2008 Lamborghini Gallardo, lease payments on personal vehicles such as a 2010 Cadillac CTS, a 2010 Mercedes-Benz S550 sedan and a 2013 Cadillac XTS, and rental payments for a personal residence.
He failed to pay approximately $348,388 in income tax for calendar years 2002, 2003, 2005 through 2009, and 2011, according to the indictment
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service in Toledo. case is being prosecuted by Assistant United States Attorneys Noah P. Hood and Robert J. Patton.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Rhode Island Man Sentenced to 15 Years in Prison for Drug Trafficking and Money LaunderingRead the Press Release
BOSTON – A Rhode Island man was sentenced yesterday in U.S. District Court in Boston in connection with a wide-ranging conspiracy that distributed cocaine, heroin and other narcotics throughout Bristol County, Mass., and Rhode Island.
Luis Lopez a/k/a Juan Gonzalez, 43, of Tiverton, Rhode Island, was sentenced by U.S. District Court Judge Rya W. Zobel to 15 years in prison and five years of supervised release after pleading guilty in October 2016 to conspiracy to distribute cocaine, heroin and fentanyl and money laundering. Lopez also agreed to forfeit property worth over $1 million, including three properties in Rhode Island, a used car dealership based in Fall River, Mass., and a number of luxury vehicles.
From 2014 to 2016, Lopez imported, at a minimum, 50 to100 kilograms of cocaine from Puerto Rico to Massachusetts, and distributed it in New Bedford and Fall River with co-conspirators. Lopez also conspired with others to distribute heroin, fentanyl and acetylfentanyl. Lopez admitted that a kilogram of a fentanyl/acetylfentanyl mix that was found at a drug stash house in June belonged to him. Lopez also laundered drug proceeds through Hillside Auto, a used car business he purchased in Fall River in the name of a relative.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Fall River Police Chief Daniel S. Racine; and New Bedford Police Chief Joseph C. Cordeiro, made the announcement. Assistant U.S. Attorney Eric S. Rosen of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Pueblo Man Sentenced to Federal Prison for Illegally Possessing FirearmsRead the Press Release
DENVER – Daniel Anthony Garcia, age 28, of Pueblo, Colorado, was sentenced today by U.S. District Judge Christine M. Arguello to serve 37 months in federal prison for felon in possession of a firearm, Acting U.S. Attorney Bob Troyer and ATF Acting Special Agent in Charge Ron Humphries announced. Following his prison sentence, Judge Arguello ordered the defendant to serve 3 years on supervised release. The defendant, in custody since his arrest on January 25, 2016, was remanded into the custody of the U.S. Marshals Service.
Garcia pled guilty to the charge on October 13, 2016.
According to court documents, including the stipulated facts contained in the defendant’s plea agreement, the defendant illegally entered an occupied home on December 6, 2015 and fired a gun to threaten the occupants after pistol whipping a man. One of the victims knew the assailant and identified him to the Pueblo Police Department. The shell casing from the gun was collected and sent to the National Integrated Ballistic Information Network for testing.
On January 25, 2016, Pueblo Police Department Officers sought the defendant at a residence in Pueblo. While at the location, officers outside the home observed the defendant bend over and appear to conceal an item under a bed inside the residence. A consent search allowed the officers to retrieve a .45-caliber pistol from under the bed, which NIBIN confirmed was used in the December 2015 home invasion using shell casings collected at a test fire.
Garcia was prohibited from possessing a firearm after having been convicted of a felony offense with a prison term of more than one year.
“There is an elite state and federal task force in Southern Colorado targeting gun violence,” said Acting U.S. Attorney Bob Troyer. “You use guns when you shouldn’t, and hell will be coming to breakfast.”
“Garcia would not have been under federal investigation if not for NIBIN,” said ATF Acting Special Agent in Charge Ron Humphries. “Thanks to the ballistics information from NIBIN and the stellar detective work by Pueblo PD and ATF, Garcia will not be able to terrorize the community for many years to come.”
The case was investigated by the ATF and Pueblo Police Department as part of the Southern Colorado Crime Gun Intelligence Center. The Southern Colorado Crime Gun Intelligence Center uses cutting-edge technology, such as NIBIN, and a dedicated investigative team to stop shooters and identify their sources of guns before they can commit further violent crimes. It is a partnership between ATF, Colorado Springs Police Department, El Paso Sheriff's Office, Fountain Police Department, Pueblo Police Department, Department of Corrections Division of Adult Probation, the U.S. Attorney's Office and the District Attorney's Office for the 4th and 10th Judicial Districts.
The defendant is being prosecuted by Assistant United States Attorney Kurt J. Bohn.
Pilot for Drug Trafficking Organization SentencedRead the Press Release
DALLAS — A former Dallas resident and member of the Jose Paz Garcia drug trafficking organization (DTO), who, after pleading guilty in 1995 to his role in a drug trafficking conspiracy, absconded, and remained a fugitive for 17 years, was sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Anthony Harrison Bell, a/k/a “Pajaro,” (Bird), 58, worked as a pilot for the Jose Paz Garcia DTO. Arrested in south Florida in 2013, Bell was sentenced today to 168 months in federal prison by Chief U.S. District Judge Barbara M. G. Lynn. He pleaded guilty in October 1995 to one count of conspiracy to possess with the intent to distribute and distribution of marijuana and cocaine.
Jose Paz Garcia, along with several coconspirators, was convicted at trial in the Northern District of Texas in May 1996. He was sentenced to serve life in federal prison.
According to Bell’s factual resume, from approximately June 1994 through early August 1995, Bell was employed by Jose Paz Garcia to fly quantities of marijuana and cocaine, for distribution and sale to others throughout the U.S., from El Paso, Texas, to Dallas. Bell would also transport drug proceeds, derived from Garcia from the sale of the marijuana and cocaine, from Dallas to Garcia and his associates in El Paso.
For example, Bell admits that on:
1) June 1, 1995, he used his Cessna 310L aircraft to transport 10 kilograms of cocaine from El Paso to Dallas for Garcia;
2) June 5, 1995, Bell, along with co-conspirator Miguel Robles, acquired approximately 140 pounds of marijuana from Garcia, and the next day Bell used his Cessna 310L aircraft to fly it to Nebraska, Colorado, and Ohio for redistribution;
3) June 30, 1995, Bell, along with Robles, acquired approximately 104 pounds of marijuana from Garcia, and Bell used his Cessna 210 aircraft to fly the marijuana from Dallas to Columbus, Ohio, for redistribution; and
4) July 12, 1995, Bell, using his Cessna 210 aircraft, flew approximately 173 pounds of marijuana from Dallas to Detroit for Garcia.
The Drug Enforcement Administration and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Joseph M. Revesz prosecuted.
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Pennsylvania man indicted on drug and firearms chargesRead the Press Release
A Pennsylvania man was indicted on drug and firearms charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Michael Betts, 35, of New Castle, Penn., was charged with possession with the intent to distribute crack cocaine and heroin, and with being a felon in possession of a firearm and ammunition.
Betts possessed with the intent to distribute crack cocaine and heroin on Nov. 28, 2016, according to the indictment.
On the same date, Betts possessed a Sig Sauer, model 1911, .45 caliber pistol and ammunition, despite a prior conviction for assault with intent to do great bodily harm in Michigan in 2002, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Salem Police Department. The matter is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.