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21 March 2017
Misdemeanor Verdicts Issued in Oregon Standoff Bench TrialRead the Press Release
PORTLAND, Ore. – A federal judge today delivered verdicts against four defendants charged with misdemeanor trespassing; tampering with government vehicles and equipment; and destruction and removal of government property during the 41-day armed occupation of the Malheur National Wildlife Refuge.
United States District Court Judge Anna J. Brown found Jason Patrick, Darryl Thorn, Duane Ehmer, and Jake Ryan guilty of trespassing and tampering with vehicles and equipment. Additionally, Jason Patrick was found guilty of destruction and removal of property.
All four defendants were previously found guilty of felonies in a jury trial ending March 10, 2017. Felony convictions ranged from conspiracy to impede officers of the United States by force, threats, or intimidation to possession of firearms on a federal facility and depredation of government property.
Beginning on January 2, 2016, Ammon Bundy, Ryan Bundy, and several dozen followers, seized the Malheur National Wildlife Refuge near Burns, Oregon in Harney County. For forty-one days, the armed occupiers prevented federal officials from performing their official duties at the refuge by force, threats, and intimidation. The Bundys and several other occupiers, were arrested on January 26, 2016 on U.S. Highway 395 near Burns en route to a community meeting in John Day. The occupation officially ended on February 11, 2016 when the last four occupiers turned themselves in to federal authorities.
The case was investigated by the FBI and prosecuted by Geoffrey Barrow and Ethan Knight, Assistant United States Attorneys for the District of Oregon.
Mexican National Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Rumaldo Varela Enriquez, 46, a Mexican national residing in Lovington, N.M., was sentenced today in federal court in Las Cruces, N.M., to 57 months in prison for his conviction on a methamphetamine trafficking charge. Enriquez will be deported after completing his prison sentence.
Enriquez was one of 34 individuals charged in December 2015, with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Enriquez was arrested in Dec. 2015, on an indictment charging him and co-defendants Octavio Herrera, 54, and Johnny Flowers, 51, both of Hobbs, N.M., with methamphetamine trafficking offenses. The indictment charged Enriquez with participation in a methamphetamine trafficking conspiracy, possession of methamphetamine with intent to distribute, and use of a communication facility in relation to a drug trafficking crime.
On Sept. 9, 2016, Enriquez pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Enriquez admitted that on Dec. 14, 2015, law enforcement agents located approximately 128 grams of methamphetamine in a locked shed located on the property where Enriquez was residing in Lovington, N.M., and approximately 21 grams of methamphetamine and a handgun inside Enriquez’s bedroom. Enriquez further admitted that he had intended to distribute the methamphetamine found on his property.
Seventeen of the 18 federal defendants, including Enriquez’s co-defendants, have entered guilty pleas. The remaining federal defendant has entered a not guilty plea. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorneys Terri J. Abernathy and Clara Cobos of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the federal cases, and Mescalero Tribal Prosecutor Melissa Chavez is prosecuting the tribal cases.
Mexican Citizen Pleads Guilty to Timeshare Resale Fraud ConspiracyRead the Press Release
SACRAMENTO, Calif. — Marco Antonio Ramirez Zuno, 32, of Cancun, Mexico, pleaded guilty today to conspiracy to commit wire fraud in relation to a timeshare resale fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2011 and 2012, Zuno and others conducted a timeshare resale fraud scheme based in Puerto Vallarta, Mexico. Sales agents including co‑defendant Juan Montalbo, aka John Monte, conducted sales meetings to convince prospective customers to purchase a timeshare vacation package marketed under the names Platinum Access Program or World Luxury Destinations. If customers had existing timeshare properties, Montalbo assured them that another company, Continental Resources, would arrange for their sale. When the customers returned from Mexico, they were contacted by co-defendant Wayne York, aka Tim Hamick or Michael Halston, who claimed to represent companies named Property Marketing Group or Eagle Market Solution and claiming that a bona fide purchaser had been found and was ready to purchase their existing timeshares. Others were contacted directly by York without first giving their information to Montalbo.
According to court documents, York and others would then extract a series of upfront payments from the victims, which York claimed were required to be wired to bank accounts in Mexico in order for the guaranteed sale to be completed. York and the others would falsely claim that a buyer for the timeshare had already been located and that all the prepaid fees wired to Mexico were being held in escrow and would be refunded to the victims as soon as the transaction was completed. After the victims wired the money to Mexico, York and the others would break off all contact with them. According to court documents, Ramirez Zuno managed the Mexican bank accounts used in the fraud, trained co-conspirators on how to conduct the fraud, and managed the disbursement of the proceeds of the fraud.
The charges against Montalbo and York are only allegations; those defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an ongoing investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.
Ramirez Zuno has been in custody since his arrest on April 14, 2016, in Miami, Florida. Montalbo and York have been released on bond. Montalbo and York are next scheduled to appear in court on June 6, 2017, for a further status hearing on their cases.
Ramirez Zuno is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 27, 2017. Ramirez Zuno faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Messer Man Sentenced to 105 Months for Two Counts of Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that BRADLEY DEWAYNE BAILEY, age 39, of Messer, Oklahoma, was sentenced to concurrent terms of 105 months imprisonment, and 3 years of supervised release for two counts of FELON IN POSSESSION OF FIREARM, all in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about May 17, 2016, and on July 18, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Hugo Police Department, the Choctaw County Sheriff’s Office, and the Federal Bureau of Investigation.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.
Manhattan Energy Investor Sentenced to 70 Months in Prison for Evading over $45 Million of Income and Sales TaxesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MORRIS ZUKERMAN, a Manhattan businessman who owns companies involved in energy investments, was sentenced today to 70 months in prison for engaging in multi-year tax fraud schemes pursuant to which he evaded over $45 million in income taxes and other taxes. ZUKERMAN pled guilty on June 3, 2016, before United States District Judge Analisa Torres, who imposed today’s sentence.
Acting U.S. Attorney Joon H. Kim said: “While amassing a personal fortune through, among other things, the $130 million sale of his company, Morris Zuckerman cheated on his taxes for years, illegally scheming to evade almost every one of his tax liabilities. Through his criminal schemes, Zukerman deprived the public of over $45 million in taxes he rightfully owed. For brazenly cheating on his tax obligations – a duty that all Americans owe to each other – Zukerman will now spend significant time in a federal prison.”
According to the allegations in the Indictment to which ZUKERMAN pled guilty, other documents filed in Manhattan federal court, and statements made in court proceedings:
ZUKERMAN, the principal of M.E. Zukerman & Co. (“MEZCO”), an investment firm located in Manhattan, schemed to evade taxes based on income received from the January 2008 sale of a petroleum products company (the “Oil Company”) he co-owned (through a MEZCO subsidiary) with a public company. ZUKERMAN schemed to evade the reporting of the sale – which resulted in the receipt by the MEZCO subsidiary of $130 million in gross sales proceeds – by falsely telling his accountants in mid-2008 that he had transferred ownership of the MEZCO subsidiary to a family trust in early 2007. In support of the false story he gave to the accountants, ZUKERMAN created backdated documents such as promissory notes and a board resolution purporting to show the transfer of the subsidiary to his family trust in 2007. The false documents allowed ZUKERMAN to remove the MEZCO subsidiary from the consolidated tax reporting being handled by the accountants for MEZCO and thereby evade the reporting to the IRS of the sale of the Oil Company, as well as the payment of over $33 million in corporate income taxes.
Following the sale of the Oil Company, ZUKERMAN transferred the proceeds of the sale from the MEZCO subsidiary to his family trust, his personal bank accounts, and various corporations he controlled, including a company called Zukerman Investments. Between 2008 and 2013, ZUKERMAN directed that over $50 million of the funds transferred to Zukerman Investments be used to purchase paintings by European artists from the 15th through the 19th centuries (the “Old Master paintings”), which ZUKERMAN used to decorate his Upper East Side apartment and the apartments of two family members – Family Member-1 and Family Member-2.
In connection with the purchase of the Old Master paintings, ZUKERMAN schemed to defraud New York State of over $4.5 million of sales and use taxes by directing that the paintings, which were frequently purchased from galleries located blocks from ZUKERMAN’s Manhattan residence, be shipped by the galleries to ZUKERMAN’s corporate addresses located in Delaware and New Jersey, and transported immediately thereafter (sometimes within minutes), by ZUKERMAN and others, back to ZUKERMAN’s residence in New York – all without the payment to New York State of sales or use taxes.
ZUKERMAN also schemed to evade personal income taxes and to obstruct the IRS by (i) causing various tax return preparers to prepare U.S. Individual Income Tax Returns, Forms 1040, for ZUKERMAN and his wife, and for Family Member-1, Family Member-2, and Family Member-3, that claimed, in the aggregate, millions of dollars of false and fraudulent deductions and expenses, such as phony charitable contributions and investment interest expenses; (ii) diverting, for personal use, corporate assets from MEZCO and other corporate entities ZUKERMAN controlled by directing that hundreds of thousands of dollars of fees be paid between 2007 and 2013 to Family Member-1, Family Member-2, and Family Member-3, for which the family members performed little or no work; (iii) directing that corporate funds be used to pay compensation to, and health care insurance for, a household employee of ZUKERMAN, whom ZUKERMAN also caused to be falsely identified as a MEZCO employee to ZUKERMAN’s corporate health care provider when, in truth and fact, the household employee worked exclusively out of ZUKERMAN’s homes in New York City and Maine as a domestic employee; (iv) falsely under-reporting employment taxes through the payment of hundreds of thousands of dollars of cash and other wages to ZUKERMAN’s domestic employees; and (v) providing false information to the IRS during audits in an attempt to fraudulently convince IRS auditors and other IRS employees that the fraudulent claims made on his previously filed tax returns were accurate when, in truth, they were not.
The False Charitable Contribution Deductions for the 2009 & 2011 Tax Years
ZUKERMAN’s fraudulent charitable contribution deductions – totaling $1 million – arose out of a real estate transaction in 2009 and 2010, pursuant to which ZUKERMAN purchased approximately 240 acres of property on Black Island, a small island located off the coast of Maine, close to ZUKERMAN’s home on a nearby island. ZUKERMAN was enlisted to purchase the Black Island property by the Maine Coast Heritage Trust (“MCHT”), a Maine-based land conservation entity that was seeking to orchestrate the purchase, for conservation purposes. After considering making a charitable contribution to the MCHT to allow MCHT to purchase the property, ZUKERMAN decided instead to purchase the land as the outright owner for the benefit of himself and his family for $1 million through a newly formed limited liability company he solely owned. ZUKERMAN, however, falsely told his tax return preparer that the $1 million he paid for the property should be declared on his personal income tax returns as a charitable contribution to MCHT during the 2008 and 2010 tax years. ZUKERMAN subsequently signed the false 2008 and 2010 tax returns and caused them to be filed with the IRS.
The Audit Fraud
ZUKERMAN sought to defraud the IRS during three separate audits. In audits of his personal returns and that of a family member, ZUKERMAN provided his accountants with false documents and false information in an attempt to provide support for false items previously placed on individual tax returns by him. During an IRS audit of one of ZUKERMAN’s companies, ZUKERMAN attempted to obstruct the audit by utilizing two attorneys from a law firm in Washington, D.C., to convey a false factual narrative to an IRS Appeals Officer.
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In imposing ZUKERMAN’S sentence, Judge Torres stated: “Mr. Zukerman’s crimes were driven by unmitigated greed,” and that ZUKERMAN “thought himself to be above the law.”
In addition to the prison term, ZUKERMAN, 72, of New York, New York, was sentenced to three years of supervised release and ordered to pay a $37,547,951 in restitution to the IRS and New York State Department of taxation and finance. ZUKERMAN was also fined $10 million.
Mr. Kim praised the outstanding investigative work of the IRS and the U.S. Postal Inspection Service.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Special Assistant United States Attorney Stanley J. Okula, Jr. and Assistant United States Attorney Edward Imperatore are in charge of the prosecution.
Manchester Man Sentenced to 83 Months in Prison on Federal Firearms ChargesRead the Press Release
Concord, New Hampshire—Acting United States Attorney John J. Farley announced that Marcos Nieves, 40, previously of Manchester, New Hampshire, was sentenced on Friday to serve 83 months in prison for the illegal possession of firearms and ammunition.
According to court documents and statements made in court, members of the Manchester Police Department obtained a search warrant for the defendant’s Manchester residence in connection with an investigation into a non-fatal shooting on August 8, 2015. While executing the search warrant, officers recovered two stolen AK-47 style weapons, several firearm magazine clips, ammunition, drugs, drug dealing paraphernalia, and personal documents identifying Nieves in a bedroom closet. At the time, Nieves was prohibited from possessing any firearm as a result of at least one prior felony conviction.
Nieves was indicted on these federal firearms charges in April 2016 and he pleaded guilty in December 2016.
Nieves also pleaded guilty to narcotics charges in Hillsborough County in connection with the drugs recovered during the execution of the search warrant. He is serving a sentence of two to four years in New Hampshire State Prison. The Court’s sentence on federal charges will run concurrent with entirety the state sentence. Following his release from federal prison, will be subject to a period of supervised release of three years.
Commenting on the sentence, Acting United States Attorney Farley said, “Working with our state, local, and federal law enforcement partners, the United States Attorney’s Office is committed to prosecuting those who possess firearms unlawfully or use firearms to commit crimes. Individuals who commit crimes involving guns should be aware that they will face substantial penalties for their actions.”
This matter is being jointly investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Manchester Police Department. The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes. The case was prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Man indicted on a firearm chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Kearneysville, West Virginia man was indicted today by a federal grand jury for a firearm violation, Acting United States Attorney Betsy Steinfeld Jividen, announced.
William Edwin Rogers, age 27, who had previously been convicted of a felony offense in Jefferson County, is prohibited from possessing a firearm. He was indicted for one count of “Unlawful Possession of a Firearm.” The crime is alleged to have occurred on April 27, 2016 in Berkeley County.
Rogers faces up to ten years and a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Who Moved Drug Overdose Victim’s Unresponsive Body to Cover up Drug Crime Pleads Guilty to Being Accessory After the FactRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MARC HENRY JOHNSON pled guilty today before U.S. District Judge Jesse M. Furman to acting as an accessory after the fact to a narcotics offense. As alleged in the Indictment to which JOHNSON pled guilty and the related criminal Complaint, JOHNSON helped move an unresponsive woman’s body out of a Manhattan apartment where the woman had overdosed on cocaine.
Acting U.S. Attorney Joon H. Kim said: “Marc Henry Johnson’s immediate response to seeing a dying overdose victim should have been to summon help. Instead, Johnson helped his cocaine dealer cover up the drug crime by moving the victim’s body. In this time of a growing overdose epidemic, today’s guilty plea should serve as a reminder that the proper response to a potential drug overdose is to immediately call 911, not to delay to help cover for the drug dealer.”
According to the allegations contained in the Indictment and the Complaint against JOHNSON and codefendant James Holder:
JOHNSON regularly bought cocaine from Holder, who lived in and sold cocaine from a third-floor apartment in Chelsea. During the night of October 3, 2015, and the early morning hours of October 4, 2015, JOHNSON met with a 38-year-old woman (“Individual-1”) and others at a bar in Manhattan. Individual-1 had been using cocaine before JOHNSON arrived. Later, JOHNSON and Individual-1 left the bar together in a taxi. They arrived at Holder’s apartment building at approximately 4:25 a.m., and walked upstairs to Holder’s apartment. Hours later, JOHNSON and Holder dragged Individual-1’s apparently unconscious body into the building’s first-floor vestibule. Holder then left the building, and JOHNSON called 911 to summon an ambulance. JOHNSON declined to provide his name to the 911 operator, and he did not identify Individual-1, or describe his relationship to her, or explain what had happened to her and why she needed medical assistance. Emergency Medical Technicians (“EMTs”) responded and found Individual-1 unresponsive in the Chelsea building’s vestibule. JOHNSON left the building soon after the EMTs arrived.
Individual-1 was taken to a hospital and pronounced dead later on October 4, 2015. Her death was caused by, among other things, cocaine use.
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JOHNSON pled guilty to one count of acting as an accessory after the fact to the offense of maintaining a drug-involved premises. The accessory-after-the-fact offense carries a maximum sentence of 10 years in prison. JOHNSON is scheduled to be sentenced by Judge Furman on June 26, 2016.
Holder pled guilty before Judge Furman on December 12, 2016, to maintaining a drug-involved premises, which carries a maximum sentence of 20 years in prison. Holder is scheduled to be sentenced by Judge Furman on May 4, 2017, at 3:00 p.m.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the U.S. Drug Enforcement Administration’s (DEA) New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, the New York Department of Taxation and Finance, the Rockland County Sheriff’s Office, the Clarkstown Police Department, Port Washington Police Department, and New York State Department of Corrections and Community Supervision. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), which is a federally funded crime fighting initiative.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Margaret Garnett and David Abramowicz are in charge of the prosecution.
Man Pleads Guilty to Robbery-Related OffensesRead the Press Release
St. Croix, USVI B Ajani Plante, 26, pleaded guilty today in federal court on St. Croix to one count of interference with commerce by robbery and using and carrying a firearm during and in relation to a crime of violence, Acting United States Attorney Joycelyn Hewlett announced.
According to the plea agreement filed with the court, on June 17, 2013, Plante, while aided and abetted by others, entered Perfection Gift Shop to rob the store. Plante and the other individuals had guns drawn and one of the robbers hit the store security person in the head with the gun, injuring him. Plante and the other robbers went behind the counter and removed several trays of gold jewelry. After the robbery, they ran out of the store, got into a vehicle behind the shopping center, and left the scene.
Plante faces a maximum of 20 years in prison and a fine of $250,000 on the robbery count and a mandatory seven years and a $250,000 fine on the gun charge. A sentencing date has been set for July 20, 2017.
This case was investigated by the Virgin Islands Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Media AdvisoryRead the Press Release
WHAT: Acting United States Attorney Lawrence J. Laurenzi; and Steve Gerido, ATF Special Agent in Charge will make an announcement regarding the Department of Justice’s investigation into an armed drug trafficking organization. DATE: Tuesday, March 21, 2017 TIME: 1:45 p.m. WHERE:United States Attorney’s Office – Main Conference Room
NOTE:
Clifford Davis Odell Horton Federal Building
167 North Main Street, Suite 800
Memphis, TN 38103All media members must present government-issued photo I.D.
(such as driver’s license), as well as valid media credentials.Media are requested to RSVP to [email protected]. The conference room will be available for media to set up at 1:15 p.m. everything must be pre-set by 1:30 p.m. Press inquiries regarding logistics should be directed to Cherri Green at 901-969-2948.
Los Angeles Man Convicted in Tax Fraud Scheme that Sought over $800,000 in Refunds for ‘Employees’ of Bogus CompaniesRead the Press Release
SANTA ANA, California – A Los Angeles man who participated in a scheme that filed fraudulent tax returns with the Internal Revenue Service seeking more than $800,000 in refunds was found guilty today of federal charges.
Julien Jitt Noel, 36, who lived in Placentia while he participated in the scheme, was convicted this morning of one count of conspiracy to defraud the United States and five counts of aiding and assisting in the preparation of false and fraudulent tax returns. After a five-day trial, a jury in United States District Court deliberated for approximately one hour before finding Noel guilty.
The evidence presented at trial showed that, starting in late 2008 or early 2009, Noel and two co-conspirators prepared and filed fraudulent tax returns, most of which were filed in the names of individuals whose identities had been stolen.
The fraudulent tax returns indicated that the taxpayers were employed by a shell company called Picaso Fashions, a business that did not employ the taxpayers and never had any employees. The tax returns indicated that Picaso Fashions had excessively withheld income tax for each taxpayer, and each fraudulently filed tax return sought a tax refund the taxpayer was not entitled to receive.
Members of the conspiracy filed 69 false individual federal tax returns during 2009 that claimed tax refunds totaling $621,589.
Noel and one of his co-conspirators established other fake companies to serve as fraudulent employers. In relation to these other bogus companies, Noel filed 45 fraudulent tax returns in 2009 and 2010 that sought $195,344 in refunds.
In total, Noel conspired to file a total of 114 fraudulent returns between 2009 and 2010 seeking tax refunds totaling $816,933. The IRS paid full or partial tax refunds on 98 of these returns and suffered actual losses of $520,426.
Noel, who has been in federal custody since this case was indicted two years ago, is scheduled to be sentenced by United States District Judge Josephine L. Staton on June 14. As a result of today’s six guilty verdicts, Noel faces a statutory maximum sentence of 20 years in federal prison.
Co-conspirator Antonio Jerome Cook, 38, of Long Beach, was sentenced in March 2016 to four years in federal in prison and was ordered to pay restitution of $537,309 for his role in the scheme.
The third conspirator – Rebecca Magruder, 38, of Dallas, Texas – was sentenced in January of 2016 to 18 months in prison and ordered to pay $119,671 in restitution.
The investigation into Noel, Cook and Magruder was conducted by IRS Criminal Investigation and prosecuted by Assistant United States Attorneys Aron Ketchel and Jamie A. Lang.
Long Island Man Found Guilty of Defrauding South Korean School of over $5 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that WILLIAM COSME, a/k/a “William Cosmo,” was found guilty today in Manhattan federal court in connection with a scheme to defraud a Christian missionary school in South Korea of $5.5 million dollars. The jury convicted COSME on both counts with which he was charged following a one-week trial before U.S. District Judge Loretta A. Preska.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As a unanimous jury swiftly concluded after trial, William Cosme duped and defrauded a South Korean international school out of $5.5 million, money the school needed to carry out its mission of educating children. Cosme then took this stolen money and spent it lavishly on himself, including on a Lamborghini, a Ferrari, and a Cadillac Escalade, not to mention a 110-day gambling spree in Las Vegas. Cosme now faces time in a federal prison for his brazen crimes.”
According to the Indictment, other filings in Manhattan federal court, and evidence admitted at trial:
COSME purported to operate a “Privately Held, Global, Private Equity family practice with a concentration on it’s [sic] own Family’s Private Wealth Management, Commercial [real estate], physical gold trade and Business Consulting.” COSME further claimed that the entity through which he did business “manage[d] family assets with a Net Asset Value in excess of USD $11b on a global basis” and that his clientele included royalty and the families of royalty. None of those claims was true.
In about January 2011, COSME, acting through his company Cosmo Dabi International Trading Group Inc. (“Cosmo Dabi”), entered into an agreement with a Christian missionary school located in South Korea (the “International School”) whereby Cosmo Dabi would lend the International School approximately $55 million and the International School would make a deposit of approximately $5.5 million (the “Equity Deposit”), which COSME would invest in order to generate funds to loan the International School. The International School sought to use the proceeds of the loan to expand its operations in South Korea.
In January 2011, the International School sent by wire transfer approximately $5.5 million to an account maintained by COSME at a bank.
Thereafter, COSME transferred the funds that the International School had entrusted to him into other accounts, including accounts in his own name rather than that of his company. From the other accounts, COSME began a run of unauthorized personal spending, including purchasing a Lamborghini costing nearly $314,000 (which itself was meant to secure COSME a preferred spot on a waiting list to purchase an even more expensive Lamborghini); a Ferrari costing nearly $287,000; a Cadillac Escalade; a sport utility vehicle for a family member of COSME’s; a 110-day gambling trip to Las Vegas; gaming losses while on that trip in excess of $200,000; paying for his girlfriend’s rent; and otherwise funding a lavish lifestyle. All the while, COSME failed to invest the $5.5 million as he had promised, and made a series of misrepresentations to the leadership of the International School as to why they had not been issued their promised loan payments. COSME also devised and executed a sham audit process in order to convince the International School that they were in default of their agreement and that COSME could keep the school’s deposit for himself. In connection with his fraud on the International School, COSME also used, without authorization, the identities of two individuals by falsely representing to the International School that these individuals were officers of Cosmo Dabi.
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COSME, 51, resides in Jericho, New York. He faces a minimum sentence of two years in prison for his conviction for aggravated identity theft, and a maximum sentence of 20 years in prison for his wire fraud conviction. COSME also faces a maximum term of three years of supervised release and a fine of the greatest of $250,000, or twice the gross pecuniary gain derived from the offense or twice the gross pecuniary loss to the victim. COSME’s sentencing is set for June 21, 2017, before the Honorable Loretta A. Preska.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding efforts of Federal Bureau of Investigation in the investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Noah D. Solowiejczyk and Martin S. Bell are in charge of the prosecution.
Lockport Man Indicted on Drug and Sex Trafficking 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 a federal grand jury has returned a 13-count superseding indictment charging Oliver Kimmons, 49, of Lockport, NY, with possession and distribution of heroin and fentanyl, maintaining a drug premises, and sex trafficking. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the superseding indictment, over the course of three years, the defendant solicited young, opiate-addicted women to have sex with paying customers. In exchange, Kimmons provided the victims with drugs. The defendant drove the victims to farms, dairies, and Indian Reservations in Western New York where they engaged in sex acts with paying customers. Kimmons collected the money from customers and then “paid” his victims in heroin. The defendant also had sex with the victims in exchange for drugs.
Kimmons was initially indicted on drug charges in March 2016 and has been in custody since his arraignment on those charges. The defendant is scheduled to be arraigned on the charges included in the superseding indictment on March 23, 2017, at 11:00 a.m. before U.S. Magistrate Judge H. Kenneth Schroeder.
The superseding indictment is the result of an investigation by the Niagara County Sherriff’s Office and the Niagara County Drug Task Force, under the direction of Sheriff James Voutour; the Erie County Sherriff’s Office, under the direction of Sheriff Timothy Howard; the Lockport Police Department, under the direction of Chief Michael Niethe; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in Charge Kevin Kelly. The investigative team included Investigator Michael A. Licinio of the Niagara County Sherriff’s Office; Investigator Kevin Newman and Officer Eric Herrington of the Niagara County Drug Task Force; Theresa Nietzel of the Erie County Sherriff’s Office; Captain Brian Wentland of the Lockport Police Department; Special Agent Shane Nastoff of the Drug Enforcement Administration; and Special Agent Nathan Spisak of Homeland Security Investigations.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Lithuanian Man Arrested for Theft of over $100 Million in Fraudulent Email Compromise Scheme Against Multinational Internet CompaniesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced criminal charges against EVALDAS RIMASAUSKAS for orchestrating a fraudulent business email compromise scheme that induced two U.S.-based internet companies (the “Victim Companies”) to wire a total of over $100 million to bank accounts controlled by RIMASAUSKAS. RIMASAUSKAS was arrested late last week by authorities in Lithuania on the basis of a provisional arrest warrant. The case has been assigned to U.S. District George B. Daniels.
Acting U.S. Attorney Joon H. Kim said: “From half a world away, Evaldas Rimasauskas allegedly targeted multinational internet companies and tricked their agents and employees into wiring over $100 million to overseas bank accounts under his control. This case should serve as a wake-up call to all companies – even the most sophisticated – that they too can be victims of phishing attacks by cyber criminals. And this arrest should serve as a warning to all cyber criminals that we will work to track them down, wherever they are, to hold them accountable. The charges and arrest in this case were made possible thanks to the terrific work of the FBI and the cooperation of the victim companies and their financial institutions. We thank the companies and their banks for acting quickly, coming forward promptly, and cooperating with law enforcement; it led not only to the charges announced today, but also the recovery of much of the stolen funds.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, Evaldas Rimasauskas carried out a business email compromise scheme creatively targeting two very specific victim companies. He was initially successful, acquiring over $100 million in proceeds that he wired to various bank accounts worldwide. But his footprint would eventually lead investigators to the truth, and today we expose his lies. Criminals continue to commit a wide variety of crimes online, and significant cyber data breaches have had a negative impact across a variety of industries. The FBI will continue to work with our domestic and international partners to pursue criminals who engage in this type of activity, wherever they may be hiding.”
According to the allegations contained in the Indictment unsealed today[1]:
From at least in or around 2013 through in or about 2015, RIMASAUSKAS orchestrated a fraudulent scheme designed to deceive the Victim Companies, including a multinational technology company and a multinational online social media company, into wiring funds to bank accounts controlled by RIMASAUSKAS. Specifically, RIMASAUSKAS registered and incorporated a company in Latvia (“Company-2”) which bore the same name as an Asian-based computer hardware manufacturer (“Company-1”), and opened, maintained, and controlled various accounts at banks located in Latvia and Cyprus in the name of Company-2. Thereafter, fraudulent phishing emails were sent to employees and agents of the Victim Companies, which regularly conducted multimillion-dollar transactions with Company-1, directing that money the Victim Companies owed Company-1 for legitimate goods and services be sent to Company-2’s bank accounts in Latvia and Cyprus, which were controlled by RIMASAUSKAS. These emails purported to be from employees and agents of Company-1, and were sent from email accounts that were designed to create the false appearance that they were sent by employees and agents of Company-1, but in truth and in fact, were neither sent nor authorized by Company-1. This scheme succeeded in deceiving the Victim Companies into complying with the fraudulent wiring instructions.
After the Victim Companies wired funds intended for Company-1 to Company-2’s bank accounts in Latvia and Cyprus, RIMASAUSKAS caused the stolen funds to be quickly wired into different bank accounts in various locations throughout the world, including Latvia, Cyprus, Slovakia, Lithuania, Hungary, and Hong Kong. RIMASAUSKAS also caused forged invoices, contracts, and letters that falsely appeared to have been executed and signed by executives and agents of the Victim Companies, and which bore false corporate stamps embossed with the Victim Companies’ names, to be submitted to banks in support of the large volume of funds that were fraudulently transmitted via wire transfer.
Through these false and deceptive representations over the course of the scheme, RIMASAUSKAS, the defendant, caused the Victim Companies to transfer a total of over $100,000,000 in U.S. currency from the Victim Companies’ bank accounts to Company-2’s bank accounts.
* * *
RIMASAUSKAS, 48, of Vilnius, Lithuania, is charged with one count of wire fraud and three counts of money laundering, each of which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI, and thanked the Prosecutor General’s Office of the Republic of Lithuania, the Lithuanian Criminal Police Bureau, the Vilnius District Prosecutor’s Office and the Economic Crime Investigation Board of Vilnius County Police Headquarters for their assistance in the investigation and arrests, as well as the Department of Justice’s Office of International Affairs.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Eun Young Choi is in charge of the prosecution. Assistant U.S. Attorney Edward Diskant is handling the forfeiture aspects of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Lexington Man Sentenced for Misprision of a Felony and Making False StatementsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake announced today that Joseph Carlton Meek, 22, of Lexington, South Carolina, was sentenced to 27 months for Misprision of a Felony and Making False Statements in connection with Dylann Storm Roof’s racist assault on parishioners at Mother Emanuel AME Church.
More than a week prior to Roof’s June 17 attack, Roof told Meek that Roof was going to shoot people during Wednesday night bible study at an AME Church in Charleston. Roof also explained that he had been planning the attack for more than six months and that he intended the attack to serve as a catalyst for a race war.
As the initial news reports were released on the night of June 17, Meek knew that Roof had committed the attack based on Roof’s prior statements. Meek told friends and family that he knew Roof had committed the attack but took active steps to stop them from contacting law enforcement on the night of June 17 as well as the morning of June 18. Only after learning that a friend had already called the FBI on June 18 did Meek then call law enforcement. When the FBI first interviewed Meek on June 18, Meek repeatedly lied about his advance knowledge of the details of Roof’s plans to attack the church.
United States Attorney Beth Drake explained, “Meek’s actions in concealing Roof’s involvement and his false statements to the FBI impacted law enforcement’s efforts to capture and investigate Roof who had escaped with a loaded .45 Glock. Separate and apart from the murders, his actions are serious criminal violations.” U.S. Attorney Drake credited the cooperative relationship between the many law enforcement agencies supported by tips from private citizens for the quick capture of Roof. “This was excellent policing with the support of the community.”
According to Alphonso Norris, FBI Special Agent in Charge, “This sentence demonstrates the FBI’s commitment to bring justice to all those who played a part in this horrific crime. This successful prosecution was the result of coordinated efforts with our state, local and federal partners. We are proud to be part of such a professional team that also obtained justice for the victims, families and communities that were forever changed by the cowardly acts of Dylan Roof and Joey Meeks.”
The investigation was conducted by the Federal Bureau of Investigation (FBI), City of Charleston Police Department, and South Carolina Law Enforcement Division (SLED). Assistant United States Attorneys Jay N. Richardson and Nathan Williams are prosecuting the case.
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Las Cruces Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Anthony Margarito Berumen, 32, of Las Cruces, N.M., was sentenced today in federal court to 42 months in prison followed by six years of supervised release for his conviction on methamphetamine trafficking charges.
Berumen was arrested on Feb. 9, 2016, on a criminal complaint charging him with possession of methamphetamine with intent to distribute on Dec. 9, 2015 and Dec. 15, 2015. The complaint alleged that Berumen committed the crimes in Dona Ana County, N.M. According to the complaint, Berumen sold a total of 4.6 grams of methamphetamine to undercover law enforcement agents during two transactions on Dec. 9, 2015, and one transaction on Dec. 15, 2015.
Berumen was indicted on Aug. 17, 2016, and charged with three counts of distributing methamphetamine. The indictment was superseded on Sept. 22, 2016, charging Berumen with distributing methamphetamine on Dec. 9, 2015 and Dec. 16, 2015, and distributing methamphetamine in the vicinity of a school on Dec. 9, 2015.
On Jan. 12, 2017, Berumen pled guilty to the superseding indictment. In entering the guilty plea, Berumen admitted selling methamphetamine to undercover law enforcement on three occasions in Dec. 2015. He also acknowledged that one of the drug transactions took place in a middle school parking lot in Las Cruces.
This case was investigated by the Las Cruces office of the FBI and the New Mexico State Police and was prosecuted by Assistant U.S. Attorneys John Balla and Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office.
Kirby Cleveland Charged with Murder of Navajo Nation Tribal Police OfficerRead the Press Release
ALBUQUERQUE – Kirby Cleveland made his initial appearance in federal court this morning on a criminal complaint charging him with murder, announced Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Director Jesse Delmar of the Navajo Nation Division of Public Safety. Cleveland remains in custody pending a preliminary hearing and a detention hearing, both of which are scheduled for March 22, 2017.
The criminal complaint, which was filed on March 14, 2017, charges Cleveland, 32, an enrolled member of the Navajo Nation from Prewitt, N.M., with murdering a Navajo Nation tribal police officer. The criminal complaint alleges that Cleveland shot the victim officer, who was responding to a domestic violence call, on the night of March 11, 2017. The victim officer died on March 12, 2017, as the result of the gunshot injuries he sustained. If convicted on the murder charge, Cleveland faces a maximum penalty of life imprisonment.
Cleveland was arrested on tribal charges on March 12, 2017, by the Navajo Nation Division of Public Safety, and he remained in tribal custody until March 20, 2017, when the tribal charges against him were dismissed. Immediately after the dismissal of the tribal charges, the FBI arrested Cleveland on the criminal complaint.
The Gallup and Albuquerque offices of the FBI and the Crownpoint, Shiprock and Chinle offices of the Navajo Nation Division of Public Safety are investigating this case, with assistance from the New Mexico State Police and the McKinley County Sheriff’s Office. Assistant U.S. Attorneys Novaline D. Wilson and Niki Tapia-Brito are prosecuting the case.
Cleveland ComplaintJustice Department Settles with Public School District to Resolve HIV-Related Discrimination FindingsRead the Press Release
The Justice Department announced today that it has reached an agreement with the Pea Ridge School District (PRSD) of Pea Ridge, Arkansas, to remedy alleged violations of the Americans with Disabilities Act (ADA). Title II of the ADA prohibits discrimination by public entities, including school districts, against individuals who have disabilities; individuals regarded as having disabilities; and individuals associated with people with disabilities.
Based on its investigation, the Department previously issued a Letter of Findings outlining how the District excluded three students after reviewing a document referencing the human immunodeficiency virus (HIV) status of the students’ family member. The District initially concluded that the students were not to be allowed back into the school district until they underwent HIV testing and the results were returned to the District. Following the students’ exclusion from school and extracurricular activities for multiple days, the District changed its position, readmitting the students prior to its receipt of their HIV test results.
The Settlement Agreement requires the District to adopt and implement a written non-discrimination policy that makes clear that PRSD does not discriminate on the basis of disability and that those individuals who are “regarded as disabled” or are associated with a person with a disability are covered by the ADA’s protections. PRSD has also agreed to revise its “Communicable Diseases and Parasites” policy to state that HIV is not considered to be a condition requiring a student’s exclusion from school under that policy; to provide ADA training to PRSD instructors and administrators; to report on its compliance with the agreement; and to pay $15,000 in compensatory damages.
“No child should be kept from attending school based on unfounded fears about HIV,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “We commend the Pea Ridge School District for its commitment, reflected in this agreement, to ensure the ADA’s nondiscrimination promise for all students.”
To read the Settlement Agreement or for more information on the ADA and HIV discrimination, visit www.ada.gov/hiv. For more information about the ADA, including how to file a complaint, call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access the ADA website at www.ada.gov.
Justice Department Settles Immigration-Related Discrimination Claim Against Florida Pizza Delivery ChainRead the Press Release
The Justice Department reached a settlement agreement today with Pizzerias, LLC (Pizzerias), a pizza restaurant franchisee with 31 locations in Miami, Florida. The agreement resolves the department’s investigation into whether Pizzerias violated the Immigration and Nationality Act (INA) by discriminating against work-authorized immigrants when checking their work authorization documents.
The department’s investigation concluded that Pizzerias routinely requested that lawful permanent residents produce a specific document – a Permanent Resident Card – to prove their work authorization, while not requesting a specific document from U.S. citizens. Lawful permanent residents often have the same work authorization documents available to them as U.S. citizens, and may choose acceptable documents other than a Permanent Resident Card to prove they are authorized to work. The antidiscrimination provision of the INA prohibits employers from subjecting employees to unnecessary documentary demands based on citizenship or national origin.
Under the settlement, Pizzerias must pay a civil penalty of $140,000 to the United States, post notices informing workers about their rights under the INA’s antidiscrimination provision, train their human resources personnel, and be subject to departmental monitoring and reporting requirements.
“The Justice Department is committed to ensuring the rights of lawful U.S. workers to be free from discriminatory barriers based on their citizenship, immigration status, or national origin,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “Pizzerias’ responsiveness throughout the course of the investigation assisted in a speedy resolution of this matter.”
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
Jeannette Man Charged with Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH – A Westmoreland County resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal drug laws, Acting United States Attorney Soo C. Song announced today.
The one-count superseding indictment named Anthony Wayne Canady, age 43, of Jeannette, PA.
According to the superseding indictment, Canady conspired with others to distribute and to possess with intent to distribute a quantity of heroin.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephen S. Gilson is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Westmoreland County Drug Task Force, the Westmoreland County District Attorney’s Office, the Greensburg Police Department, and the Pittsburgh Police Department conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Houston Fugitive Sought in Scheme to Defraud Federal ProgramRead the Press Release
HOUSTON – A 45-year-old woman has been indicted on multiple charges in a scheme to steal money from a local program funded with federal money designed to improve air quality in our area, announced Acting U.S. Attorney Abe Martinez.
Shonda Renee Stubblefield, of Houston, is considered a fugitive and a warrant remains outstanding for her arrest. Anyone with information about her whereabouts is asked to contact the Department of Transportation – Office of Inspector General at 1-800-424-9071 or via email at [email protected].
The 10-count indictment charges Stubblefield with theft of public money, two counts of mail fraud, four counts of wire fraud, two counts of money laundering by spending criminal proceeds and aggravated identity theft.
The Federal Highway Administration (FHWA) is an agency within of the Department of Transportation that supported state and local governments in the design, construction and maintenance of the nation’s highway system through financial and technical assistance. FHWA administered the Congestion Mitigation and Air Quality Improvement (CMAQ) program which provided funding to areas that faced challenges attaining and maintaining national ambient air quality standards for ozone, carbon monoxide and/or particulate matter.
The FHWA entered into a contract with the Texas Department of Transportation (TX DOT) to provide federal money to reduce traffic congestion and improve the air quality in Texas. TX DOT then contracted with the Houston-Galveston Area Council (H-GAC) which provided financial incentives to companies that participated in a regional telework program designed to improve air quality in our area by reducing traffic congestion through single vehicle travel.
The indictment alleges Stubblefield was the owner of World Corporation Inc. and participated in that federally-funded telework program. She allegedly stole approximately $126,000 from the CMAQ program by submitting invoices and employee timesheets that falsely documented her participation in the program. The indictment alleges Stubblefield provided false and fraudulent bank records, match documents and a fictitious client list to H-GAC as part of her fraud scheme.
The indictment includes a potential forfeiture and a money judgement for the $126,000.
If convicted of either theft of public money or money laundering by spending criminal proceeds, she faces up to 10 years in federal prison. The possible punishment for a conviction of mail fraud and wire fraud is a maximum of 20 years in prison. She also faces an additional mandatory and consecutive 24 months upon conviction of aggravated identity theft. All charges also carry a possible $250,000 maximum fine.
The Department of Transportation - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Hardy County man indicted on firearm and methamphetamine chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Wardensville, West Virginia man was indicted today by a federal grand jury for a firearm violation and a methamphetamine charge, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Grant Sager, age 26, was indicted for one count of “Possession of Material used in the Manufacture of Methamphetamine,” one count of “Unlawful in Possession of a Firearm,” and one count of “Possession of an Unlawful Firearm.” The crimes are alleged to have occurred on June 21, 2016 in Hardy County.
Sager faces at up to 10 years in prison and a fine of up to $250,000 for the first two counts and up to ten years in prison and a $10,000 fine for the third count.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hardy County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Guam Construction Company (“GCC”), Byong Kang (President of GCC) Sentenced for Conspiracy to Commit Visa Fraud and Choon Kang (Vice President of GCC) Sentenced for Conspiracy to Commit Money LaunderingRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants GUAM CONSTRUCTION COMPANY (“GCC”) and its President BYONG HEE KANG (88 years of age) were convicted and sentenced for Conspiracy to Commit Visa Fraud. Also, CHOON HEE KANG (76 years of age), the sister of BYONG KANG and former Vice President of GCC was convicted and sentenced for Conspiracy to Commit Money Laundering.
On July 10, 2015, a Superseding Indictment was returned against GCC, BYONG HEE KANG, and CHOON HEE KANG. Charges included Conspiracy to Commit Visa Fraud by intentionally misrepresenting the occupations of H-2B workers in an effort to fraudulently obtain H-2B visas. After the workers arrived in Guam, BYONG HEE KANG caused GCC to employ them in skilled occupations not authorized on their H-2B visas. Additionally, CHOON HEE KANG and her co-defendants were charged with Conspiracy to Launder Money, which involved financial transactions with visa fraud proceeds exceeding $1,140,878.07. The United States also sought the forfeiture of money equal to the value of the proceeds of that offense.
On March 20, 2017, Chief Judge Francis Tydingco-Gatewood of the District of Guam sentenced the Defendants as follows:
GCC sentenced to:
- 5 years probation (during which it must submit to unannounced examination of its books and records by the probation officer or experts engaged by the court);
- $1,875,407.12 in criminal forfeiture, which represented visa fraud proceeds seized from the GCC corporate bank account.
- An additional $27,000 fine
- $400 assessment fee
Defendant BYONG HEE KANG was sentenced to:
- 3 years probation with 14 months of home detention;
- $10,000 fine
- $2,334 restitution to R.N.Q.
- $100 Special Assessment fee
- Forfeiture of all rights and interest in the visa fraud proceeds.
Defendant CHOON HEE KANG was sentenced to:
- Time served and 3 years of supervised release.
- As a condition of supervised release, report to DHS for removal or deportation proceedings
- $7,500 fine
- $100 Special Assessment fee
- Forfeiture of all rights and interest in the visa fraud proceeds.
Shawn N. Anderson, Acting U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, stated, "Maintaining the integrity of the H-2B visa program is vital to our business community. The Department of Justice will continue to prosecute those who seek personal enrichment through dishonest business practices. The forfeiture of nearly $2 million in visa fraud proceeds is a significant step toward accountability for corporate wrongdoers such as GCC, its President BYONG KANG and former Vice President CHOON KANG.”
The investigation was a joint effort involving local and federal law enforcement, including the Department of Homeland Security - Homeland Security Investigations, the Internal Revenue Service - Criminal Investigations, the U.S. Department of Labor - Wage & Hour Division, the Guam Department of Labor, and Guam Customs & Quarantine Agency. This case was prosecuted by Stephen F. Leon Guerrero and Belinda Alcantara, Assistant United States Attorneys for the District of Guam.
Grand Terrace, California Man Sentenced to 37 Months for Firearm Possession; 24 Months for Aggravated Identity TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that GRIFFIN MICHAEL SKYLER TAYLOR, age 31, of Grand Terrace, California, was sentenced to 37 months imprisonment, and 3 years of supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2); to 24 months imprisonment for AGGRAVATED IDENTITY THEFT, in violation of Title 18, United States Code, Sections 1028A(1), to be served consecutively.
The Information alleged that on or about April 14, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The Information further alleged that the defendant, knowingly possessed, without lawful authority, a means of identification of another person during and in relation to a violation of Title 18, United States Code, Section 1029(a)(1).
The charges arose from an investigation by the Sallisaw Police Department, the Fort Smith (Arkansas) Police Department, and the United States Secret Service.
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 Dean Burris represented the United States.
Grand Rapids Man Sentenced to More Than Three Years in Prison for Tax Fraud and Conspiracy to Commit Financial Institution FraudRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that Andrew Helsel, of Grand Rapids, was sentenced to 37 months’ incarceration and $612,431 in restitution. Helsel had previously pled guilty to one count of conspiracy to commit financial institution fraud and one count of filing a false and fraudulent tax return.
Helsel engaged in a scheme to defraud federally-insured financial institutions by making false statements on loan application documents in order to obtain loans from those institutions. He also filed fraudulent tax returns with the IRS on behalf of himself, a company he controlled, and other taxpayers. He used those ill-gotten gains to fund his lifestyle.
"Our financial system relies on honest compliance, and the U.S. Attorney’s Office will aggressively pursue individuals who seek to take advantage of our nation and its financial institutions," said Acting U.S. Attorney Birge. "During tax filing season, as always, it is important for people to have confidence that when they pay their taxes, they know their neighbors, co-workers, and tax return preparers are doing the same."
Special Agent in Charge Manny Muriel, IRS - Criminal Investigation stated, "This sentencing again emphasizes that the Internal Revenue Service, the United States Attorney’s office, and our law enforcement partners will continue to aggressively pursue those who attempt to corrupt our nation’s tax system. Honest taxpayers have been reassured that no one is above the law—especially when the integrity of tax administration is at stake."
"It is the mission of the Treasury Inspector General for Tax Administration (TIGTA) to protect the integrity of the IRS and promote the fair administration of our federal tax system, said TIGTA Special Agent in Charge Ruben Florez. "TIGTA continues to work closely with the United States Attorney’s Office and its law enforcement partners to hold individuals responsible for their attempts to interfere with our nation’s tax system for personal gain."
This case was investigated by Special Agents from IRS - Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA). Assistant U.S. Attorneys Christopher M. O’Connor and Sally J. Berens handled the prosecution.
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Gang Member Pleads Guilty to Federal Murder ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT SHORT, also known as “Santana,” 30, of New Haven, pleaded guilty today in Bridgeport federal court to causing the death of Darrick Cooper through the use of a firearm during and in relation to a crime of violence.
According to court documents and statements made in court, in January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures. The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of Jeffrey Benton and others, transported the drugs to Bangor, Maine, and sold them in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members.
In September 2011, leaders of the RSGB ordered SHORT to murder Darrick Cooper, who was a leader of a rival gang and seen as a threat. On September 19, 2011, SHORT lured Cooper to a location in Hamden. SHORT then shot Cooper in the back of the head as Cooper walked up a staircase.
With today’s guilty plea, 21 members and associates of the RSGB have now been convicted of federal charges in Connecticut and Maine. (SEE ATTACHED LIST) The investigation has resolved seven murder cases, four attempted murders and four armed robberies that occurred in 2011 and 2012.
“The Red Side Guerilla Brims were a violent and ruthless gang that created a climate of terror throughout neighborhoods in New Haven in 2011 and 2012,” said U.S. Attorney Daly. Twenty-one gang members and associates will now be held responsible for seven cold case homicides, four attempted homicides, four armed robberies as well as drug and gun running from Connecticut to Bangor, Maine. We hope and pray that the resolution of these homicides and shootings brings some sense of solace to the families of the victims and the communities where this violence occurred. I thank our law enforcement partners, particularly the ATF, New Haven Police Department and Hamden Police Department, for their tireless dedication during this long-term and ongoing investigation. They are providing justice for the many victims of this brutal gang, and making New Haven a safer and better place to live.”
“ATF’s mission is to combat violent crime and criminal organizations, and this investigation resulted in meeting that standard,” said Lawrence J. Panetta, Acting Special Agent in Charge, ATF Boston Field Division. “The arrests and subsequent convictions of the Red Side Guerrilla Brim gang members and their associates, sends a clear message that ATF and its federal, state and local law enforcement partners will not allow these criminal street gangs to continue their violent criminal enterprise.”
SHORT is scheduled to be sentenced on July 5, 2017, by Chief U.S. District Judge Janet C. Hall in New Haven. If the binding plea agreement filed today is accepted by Chief Judge Hall, SHORT faces a sentence of 360 months – or 30 years – of imprisonment.
On March 17, 2017, Jeffrey Benton pleaded guilty to federal racketeering, drug trafficking and money laundering offenses, and admitted that he participated in four gang-related murders and one attempted murder. If his binding plea agreement is accepted by Chief Judge Hall, he faces a sentence of between 30 and 40 years of imprisonment.
U.S. Attorney Daly noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert Spector, Peter Markle and Jocelyn Kaoutzanis. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
Fort Wayne Man Sentenced to 70 MonthsRead the Press Release
FORT WAYNE – The Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Fernando Guapo Garcia, 31, of Fort Wayne, Indiana was sentenced before Chief District Court Judge Theresa Springmann following his guilty plea to count one of the indictment charging him with conspiracy to distribute and possession with intent to distribute controlled substances.
Garcia was sentenced to 72 months imprisonment and 4 years of supervised release.
According to documents in this case, from April 28, 2016 through August 9, 2016 Garcia conspired with other persons to distribute and possess with the intent to distribute controlled substances to include over 500 grams of cocaine and heroin.
This investigation was conducted by the Federal Bureau of Investigation along with the Fort Wayne Safe Streets Task Force consisting of officers/agents from the Allen County Police Department, the Allen County Drug Task Force, the Fort Wayne Police Department, the Indiana State Police, and the Internal Revenue Service, Criminal Investigations Division. This case was handled by Assistant United States Attorneys Anthony W. Geller and Stacey R. Speith.
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Fort Wayne Man Sentenced to 30 MonthsRead the Press Release
FORT WAYNE – The Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Kenneth Frierson, 25, of Fort Wayne, Indiana was sentenced before Chief District Court Judge Theresa Springmann following his guilty plea to count two of the indictment charging him with being a felon in possession of a firearm.
Frierson was sentenced to 30 months imprisonment and 1 year of supervised release.
According to documents in this case, Frierson possessed a firearm between April 12 and 18, 2016 after being a convicted felon, that conviction being a prior felony conviction in Allen County Superior Court, Fort Wayne, Indiana on September 28, 2011 for dealing Marijuana.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was handled by Assistant United States Attorney Stacey R. Speith.
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Former Slippery Rock Man Charged with Escaping from Renewal Corrections CenterRead the Press Release
PITTSBURGH – Walter Cody Tribble has been indicted by a federal grand jury in Pittsburgh for escaping from federal custody following a prior federal felony conviction, Acting United States Attorney Soo C. Song announced today.
The indictment charges Tribble, age 42 and formerly of Slippery Rock, Pennsylvania, with committing the crime on December 3, 2016, by escaping from federal custody at Renewal, Inc., a community corrections center located in Pittsburgh, Pennsylvania.
The law provides for a maximum total sentence of up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The United States Marshals Service and the Crawford County Sheriff’s Office 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.
Former Police Officer Sentenced to Prison for Violating Civil Rights of Detained ManRead the Press Release
A former Tukwila and Snoqualmie Police Officer was sentenced today in U.S. District Court in Seattle to nine months in prison and one year of supervised release for Deprivation of Rights Under Color of Law for an attack on a handcuffed man at a Seattle hospital, announced U.S. Attorney Annette L. Hayes. NICHOLAS HOGAN, 36, pleaded guilty in November 2016, and as part of that plea agreement is prohibited from seeking employment as a police officer or security guard for fifteen years. At sentencing U.S. District Judge John C. Coughenour called the criminal conduct “simply unacceptable . . . . The trust of the community in our law enforcement officers is very fragile and it is damaged by this conduct.”
“This officer was a bad apple – plain and simple,” said U.S. Attorney Annette L. Hayes. “Holding him to account and making sure he cannot return to law enforcement work protects the public and everyone’s constitutional rights. It also ensures that the overwhelming majority of officers who do their often difficult and dangerous jobs in an exemplary way get the respect that they need and deserve.”
According to the plea agreement, on May 20, 2011, HOGAN responded to a report of a fight on Pacific Highway South in Tukwila. A man was taken into custody on a misdemeanor warrant, but because of his injuries, the King County Jail instructed HOGAN to take the man to Harborview. HOGAN admits in his plea agreement that the man was handcuffed and refusing to get out of the patrol car. HOGAN physically removed the man from the car and when the man grabbed HOGAN’s arm, HOGAN pulled away and repeatedly struck the man in the head with his knee.
Taking the man into the Harborview emergency room, HOGAN repeatedly shoved the man until he fell and then HOGAN dropped on top of him restraining him with a knee in his back. The man was placed on the gurney in four point restraints so that he could not move his arms or legs. While the man was in a treatment area and surrounded by a curtain, HOGAN remained alone with him. HOGAN used pepper spray on the restrained man. In his plea agreement, HOGAN admits he knew that the spray was not necessary to protect himself or others at the hospital and thus not reasonable under the circumstances. As a result, HOGAN admits he violated the constitutional rights of the detainee to be free of unreasonable seizure.
Under the terms of the plea agreement HOGAN surrenders any law enforcement commission and agrees not to seek reinstatement of any law enforcement commission, or seek a new law enforcement commission, or seek employment in any law enforcement agency or law enforcement related employment, including, but not limited to any city, county, state, or federal policing or corrections positions, or that of a private security guard, or any position that requires the carrying of a firearm, for a period of 15 years.
The FBI investigated the case. Assistant United States Attorney Bruce Miyake prosecuted the case for the Western District of Washington and Trial Attorneys Rose Gibson and Jared Fishman of the Civil Rights Division for the Department of Justice.
Former Fairfield PD Maintenance Worker Sentenced to 6 ½ Years in Prison as Felon in Possession of FirearmsRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former Fairfield Police Department maintenance worker to six years and six months in prison for being a felon in possession of firearms, announced Acting U.S. Attorney Robert O. Posey and Alcohol, Tobacco, Firearms and Explosives Assistant Special Agent in Charge David Hyche.
U.S. District Judge Madeline Hughes Haikala sentenced ROY ELLIS HUNTER, 70, on one count of being a convicted felon who possessed four handguns on June 4, 2015. Hunter pleaded guilty to the charge in October. He must report to prison May 15.
“Roy Hunter was stealing guns from a police department and then selling them to persons who could not legally buy a firearm,” Posey said. “ATF and the Alabama Law Enforcement Agency stopped that illegal flow of guns back onto the streets. Our community is safer because of their work and this prosecution.”
“These guns had already been taken off the street by law enforcement once,” Hyche said. “I am happy that we were able to stop this and prevent more of them from being sold to criminals.”
According to Hunter’s plea, he was convicted on federal racketeering and cocaine distribution charges in 1984 and on federal counterfeiting charges in 1983.
On June 4, 2015, Hunter sold four handguns, a Cobra .380-caliber pistol, an FIE .32-caliber revolver, an Iberia .40-caliber pistol and a Norinco 9 mm pistol, for $800 to an informant working undercover with ATF agents. The transaction took place at Hunter’s Fairfield home and was monitored and recorded. In the course of that sale, Hunter and the informant planned a future purchase, according to Hunter’s plea.
On July 8, in another monitored transaction at Hunter’s residence, the informant paid Hunter $4,000 to buy 15 firearms, which he selected from 30 that Hunter retrieved from his basement, according to his plea. One of the guns was in a clear plastic bag that was marked “Evidence.” Agents arrested Hunter the next day and recovered 31 firearms, ammunition, narcotics and a decorative sword “that were all presumed to be stolen from the Fairfield Police Department,” according to Hunter’s plea.
ATF, with assistance from ALEA, investigated the case, which Assistant U.S. Attorney Michael A. Royster prosecuted.
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Former Coralville Attorney Pleads Guilty to Eleven Counts of Mail FraudRead the Press Release
DAVENPORT, IA - On March 21, 2017, Dennis A. Bjorklund, age 52, from Coralville, Iowa, pled guilty to 11 counts of mail fraud, announced United States Attorney Kevin E. VanderSchel. Each count carries a maximum potential penalty of not more than 20 years’ imprisonment, up to a $250,000 fine, a term of supervised release of not more than three years, and a $100 special assessment to the Crime Victims' Fund. Bjorklund also agreed to pay $8,300 in restitution to the victims of these offenses. By June 9, 2017, the parties will advise the court if this matter is ready for sentencing. Bjorklund was indicted in July of 2010, arrested in Colorado on April 16, 2015, and has remained in custody since the date of his arrest.
During the time period of this mail fraud scheme, Bjorklund was an attorney practicing law in Johnson County, Iowa. As part of this scheme, potential criminal clients would contact Bjorklund for legal representation on Iowa state charges of Operating While Intoxicated (OWI).
From August 3, 2005, to January 9, 2006, 11 separate individuals entered into an agreement with Bjorklund to represent them in relation to Iowa OWI charges. As part of this representation, each individual met and was directed by Bjorklund to make a voluntary donation of $100 to $500 to "Re-Adapt" under the false pretense this contribution would result in a more favorable resolution of the criminal charges. Bjorklund caused a post office box to be opened in Coralville under the name of Re-Adapt. Additionally, Bjorklund caused a bank account to be opened in Wisconsin in which multiple checks issued to Re-Adapt were subsequently deposited. In 2006, Bjorklund caused checks to be written and drawn on this Wisconsin Re-Adapt bank account payable to entities personally owned and controlled by him.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by either calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
Final Defendant Pleads Guilty in Tax Refund SchemeRead the Press Release
Israel Brito-Rodriguez, 49, of Bowling Green, Kentucky, pleaded guilty yesterday to conspiracy to defraud the United States, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
On October 14, 2015, Israel Brito-Rodriguez was indicted along with Lorenzo Brito-Rodriguez, 40, and Eydi Ioena Brito-Rodriguez, 30, also of Bowling Green, and charged with conspiring to file false federal income tax returns. The indictment also charged Israel Brito-Rodriguez with possession of a counterfeit alien registration receipt (“green card”).
According to the charging documents, between February 2014 and December 2015, one or more of the conspirators prepared and filed multiple false and fraudulent federal income tax returns, claiming refunds of more than $1,000 each. The defendants used fraudulent power of attorney documents, representing the named payees on the checks, to cash the checks and caused interstate wire transfers to be used to execute the scheme. In total, the defendants obtained more than $500,000 in proceeds from the false refund checks.
Eydi Brito-Rodriguez and Lorenzo Brito-Rodriguez previously pleaded guilty to their roles in the conspiracy. Eydi Brito-Rodriguez was sentenced to serve nine months in prison and ordered to pay restitution in the amount of $100,000.00 to the IRS. Lorenzo Brito-Rodriguez was sentenced to serve 14 months in prison and ordered to pay $492,427.71 in restitution.
Israel Brito-Rodriguez is scheduled to be sentenced on June 2, 2017, before U.S. District Judge Waverly D. Crenshaw, Jr., and faces a potential statutory maximum sentence of 5 years in prison, a $250,000 fine, and 3 years of supervised release.
The case was investigated by the IRS-Criminal Investigation and Homeland Security Investigations. Assistant U.S. Attorneys Thomas J. Jaworski and Byron M. Jones represented the United States.
Drug Trafficking on Mole Lake Indian Reservation Leads to Prison Sentences for Three IndividualsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that three individuals were recently sentenced after convictions for drug trafficking on the Mole Lake Indian Reservation in Forest County. The sentences were the result of guilty pleas by all three individuals in December 2016.
The three individuals received the following sentences from Chief United States District Judge William C. Griesbach:
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Anthony Quintana (age: 43), of Weston: 10 years in prison, 10 years of supervised release;
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Karen Quintana (age: 39), of Weston: 2 years in prison, 5 years of supervised release; and
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Diana Alvarado (age: 40), of Mole Lake: 30 months in prison, 5 years of supervised release.
The investigation revealed that the three defendants conspired amongst themselves and with others, and distributed more than 150 grams of methamphetamine in the Mole Lake area. The group also distributed in excess of 100 illegally obtained oxycodone pills. On four separate occasions between November 2015 and January 2016, Anthony Quintana and Diana Alvarado distributed at least an ounce of methamphetamine to others, with one delivery in excess of 2 ounces. Karen Quintana participated in two of the deliveries and arranged other deliveries of methamphetamine. The deliveries occurred in Alvarado’s apartment on the Mole Lake Indian Reservation, with her young daughter present at the time of multiple deliveries.
In sentencing Anthony Quintana, Chief Judge Griesbach noted the serious nature of the offense, referring to Quintana’s prior convictions for drug dealing, and stated that the defendant was “unwilling, uninterested or unable” to stop selling drugs despite the prior convictions. In sentencing Karen Quintana, Chief Judge Griesbach discussed the impact of methamphetamine dealing, saying the defendant was part of a group that “destroys the fabric of communities.” In sentencing Alvarado, Chief Judge Griesbach reiterated the seriousness of the offense, and pointed out Alvarado’s elevated role in helping sell “poison” in the community, and greater involvement in the criminal activity.
The case was investigated by the Forest County Sheriff’s Department, the Wisconsin Department of Justice – Division of Criminal Investigation (Native American Drug and Gang Initiative), Wisconsin State Crime Laboratory, and the United States Bureau of Indian Affairs. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
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Cranberry Twp. Woman Sentenced for Defrauding Allegheny Valley BankRead the Press Release
PITTSBURGH - A former Butler County resident has been sentenced in federal court to six months imprisonment and six months of home detention, to be followed by five years of supervised release, on her conviction of bank fraud, Acting United States Attorney Soo C. Song announced today. The defendant was also ordered to pay $62,842.57 in restitution.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Jennifer Colamarino, 35.
According to information presented to the court, from October 2014 through March 2015, Colamarino defrauded Allegheny Valley Bank by using a closed PNC Bank account to make approximately 94 fraudulent online payments towards her husband’s Allegheny Valley Bank credit card account. Colamarino then used the Allegheny Valley Bank credit card at various locations to make numerous purchases. During the relevant time period, Colamarino made no legitimate payments towards the Allegheny Valley Bank credit card account, and Allegheny Valley Bank suffered a loss of approximately $62,842.57 as a result of the fraud.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Colamarino.
Child Pornographer Gets 30 Years After Sexually Exploiting MinorsRead the Press Release
HOUSTON – A 43-year-old former Navasota resident has been ordered to federal prison following his conviction of production and possession of child pornography, announced Acting U.S. Attorney Abe Martinez. John Allen Chumley pleaded guilty Sept. 13, 2016.
Today, U.S. District Judge David Hittner sentenced him to serve a total of 360 months in federal prison. At the hearing, Judge Hittner acknowledged the pain and suffering of the victims and their families that Chumley caused, specifically noting a letter written by one of the victims himself. The mother of the other victim also submitted a poignant letter to the court detailing the effects the abuse had on her child. Chumley will also have to register as a sex offender and serve life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet.
Two victims were identified in this case that Chumley sexually exploited.
Chumley was a long-haul truck driver who transported child pornography across state lines and even travelled with one of his victims, now a 10-year-old boy. For some time, Chumley had access to this child and photographed him with a cellular telephone in lewd and lascivious poses in Houston and elsewhere. Chumley befriended a family member of the victim, gained the family’s trust and used his position to exploit the child.
In addition, Chumley produced child pornography of another child who resided in the Houston area to whom Chumley had regular access and whom he sexually molested.
The National Center for Missing and Exploited Children and FBI offices in Houston and Springfield, Illinois conducted the investigation. Assistant U.S. Attorney Sherri L. Zack of the Southern District of Texas prosecuted the case.
Chicago Man Guilty of Brokering More Than 70 Illegal Gun TransactionsRead the Press Release
CHICAGO — A convicted felon from Chicago pleaded guilty today to federal firearm offenses, admitting that he brokered more than 70 illegal gun transactions.
JOHN THOMAS, 33, also known as “Batman,” pleaded guilty to two counts of being a felon in possession of a firearm, and one count of dealing firearms without a license. The conviction carries a maximum sentence of 25 years in prison. U.S. District Judge Andrea R. Wood scheduled a sentencing hearing for June 30, 2017, at 10:00 a.m.
The case against Thomas arose out of a larger federal investigation that has removed more than 100 illegal guns from the streets of Chicago. The federal probe involved controlled firearm sales to cooperating individuals.
The guilty plea was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent in Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.
“Illegally brokering the sale of guns on the streets of Chicago poses a tremendous danger to the community,” said Acting U.S. Attorney Levin. “Prosecuting firearms offenses is a top priority in our office, and we will continue our efforts to disrupt the availability of illegal guns in our city.”
Thomas admitted in a plea agreement that he brokered the sale of 77 illegal guns, including rifles, shotguns and handguns. Some of the guns had obliterated serial numbers or had previously been reported stolen. Thomas either obtained the firearms himself and then sold them to individuals, or he arranged for the owner of the firearms to sell the guns to individuals in exchange for a fee for setting up the transaction, the plea agreement states. Unbeknownst to Thomas, the individuals who purported to purchase the guns were cooperating with law enforcement.
Thomas was previously convicted of a felony and was not legally authorized to possess any firearms.
One of the sales occurred on July 23, 2014, when Thomas arranged a meeting between a man identified in court records as Individual A, along with JAMEL DAVIS and a cooperating individual. The transaction, which took place in Davis’ garage in the 7600 block of South Seeley Avenue in Chicago, involved the sale of two .38-caliber revolvers. A federal jury last year convicted Davis of illegal possession of a firearm by a felon. Davis faces up to ten years in prison when he is sentenced later this month.
The government is represented by Assistant U.S. Attorneys Nicole Kim and Carol Bell.
Charleston man pleads guilty for role in large-scale methamphetamine conspiracyRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal drug crime for his role in a large-scale drug trafficking organization, announced United States Attorney Carol Casto. David Huffman, 36, entered his guilty plea to conspiracy to distribute methamphetamine.
As part of a comprehensive investigation, agents from the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, and Homeland Security Investigations intercepted several packages that contained crystal methamphetamine, commonly referred to as “ice.” Since January 2014, several pounds of crystal methamphetamine were transported from California and Nevada into the Southern District of West Virginia via the United States mail or through individuals driving packages of drugs into the area. Huffman admitted that he traveled to Nevada on multiple occasions to obtain methamphetamine from Joseph Cooper. Huffman then brought the drugs back to West Virginia to distribute.
Huffman further admitted that in February 2016, he traveled to Nevada with his codefendant, Morgan Light, to pick up approximately two pounds of methamphetamine. Law enforcement stopped the vehicle on the way back to West Virginia and located over 400 grams of methamphetamine that was lab tested and found to be at least 95% pure.
Huffman faces a minimum of 5 years and up to 40 years in federal prison when he is sentenced on June 21, 2017.
As a result of this comprehensive drug investigation, several defendants have been sentenced to federal prison. Cooper was sentenced to 14 years in federal prison for possession with intent to distribute methamphetamine. Benjamin Childers, another individual involved with the transport of methamphetamine in this drug trafficking organization, was sentenced to 10 years and a month in prison for conspiracy to distribute methamphetamine. Mark Cobb was sentenced to seven years in prison for conspiracy to distribute methamphetamine. Shayne Shamblen was also sentenced to seven years in prison for conspiracy to distribute methamphetamine.
Light and Harold Lee Parsons have previously pleaded guilty to conspiracy to distribute methamphetamine and each faces up to 20 years in federal prison. Light is scheduled to be sentenced on April 27, 2017. Parsons is scheduled to be sentenced on April 26, 2017. Additionally, Mark Bays pleaded guilty to maintaining a residence for the purpose of distributing methamphetamine. Bays faces up to five years in federal prison when he is sentenced on March 24, 2017.
Assistant United States Attorney Haley Bunn is responsible for these prosecutions. United States District Judge John T. Copenhaver, Jr., is presiding over these cases.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Charles County Man Sentenced to over Six Years in Federal Prison for Credit Card Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Travis Lee, age 31, of La Plata, Maryland, today to 75 months in prison, followed by three years of supervised release, for possession of unauthorized access devices and aggravated identity theft, as well as violating his supervised release in a previous credit card fraud case.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian J. Ebert of the United States Secret Service – Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement on August 31, 2015, Lee traveled with Kenneth Clifton Williamson to a shopping mall area in Chevy Chase, Maryland, and taught Williamson how to make fraudulent purchases at department stores using the unauthorized debit, credit and gift cards Lee manufactured using stolen credit and debit information obtained from illegal online carding forums. Lee reprogrammed the credit and gift cards with alternate data, which provided access to individuals’ bank accounts for fraudulent, unauthorized purchases.
Williamson purchased approximately $1,155 in merchandise at a high-end department store in Chevy Chase using two Visa gift card, which Lee had encoded with stolen account information. Lee and Williamson then proceeded to a high-end department store in Washington D.C. and repeated the process, again purchasing approximately $1,155 in merchandise using similar fraudulent gift cards.
Law enforcement arrested Lee a few months later and recovered at least 185 gift cards from Lee. A search of the vehicle, which was the same one used by Lee and Williamson to travel to the department stores in August, revealed gift cards, sales receipts, clothing and other merchandise, a laptop computer portable wi-fi device, as well as items used to create gift and credit cards encoded with stolen account information, including an embosser and electronic encoder.
On October 31, 2015, law enforcement conducted a traffic stop of the vehicle Lee was driving and recovered at least 150 credit and gift cards, an embosser and other materials indicative of the manufacture of fraudulent credit cards and gift cards, including a laptop with a magnetic strip reader/writer.
On September 15, 2010, Lee was sentenced to five months in prison, followed by three years of supervised release, after being convicted of possession of counterfeit access devices in U.S. District Court for the Northern District of West Virginia. In December 2014, Lee’s supervised release was revoked and he was sentenced to 14 months in prison, followed by 22 months of supervised release. Lee was serving this term of supervised release when he committed the offenses in Maryland.
Kenneth Clifton Williamson, age 21, of Washington, D.C. previously pleaded guilty to his role in the scheme as was sentenced to four months in prison.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Montgomery County Police Department, Electronic Crimes Unit for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jennifer R. Sykes and Thomas P. Windom, who prosecuted the case.
Cartel Connected Leader of Large Drug Distribution Ring Sentenced to 12 Years in PrisonRead the Press Release
The leader of a drug trafficking organization who admits his connection to the Los Zetas drug cartel was sentenced today in U.S. District Court in Seattle to 12 years in prison, announced U.S. Attorney Annette L. Hayes. ENRIQUE AGUILAIR VALENCIA, 55, who resided in Fremont, California led a drug distribution ring that distributed large amounts of methamphetamine, heroin and cocaine throughout western Washington. Much of the distribution was via stash houses in Skagit and Snohomish Counties. At the sentencing hearing U.S. District Judge John C. Coughenour said he was concerned about the very large quantities of drugs and the guns involved in the case.
“This defendant has shown nothing but contempt for the laws of the United States,” said U.S. Attorney Annette L. Hayes. “When law enforcement took down this significant drug ring, along with large quantities of heroin and meth, they found multiple firearms including one with a silencer. The community is safer with this defendant and his long history of sex and drug crimes behind bars.”
According to records filed in the case, AGUILAIR VALENCIA is the last of six defendants prosecuted as part of this drug distribution ring. In March, April and May 2015, a person working with law enforcement purchased heroin and methamphetamine from various distributors in the conspiracy. The purchases were set up in recorded telephone calls with AGUILAIR VALENCIA. The person working with law enforcement recorded conversations with AGUILAIR VALENCIA discussing his ability to provide large amounts of drugs for distribution in the U.S. and Canada. The conspirators laundered drug proceeds though bank accounts controlled by AGUILAIR VALENCIA. While AGUILAIR VALENCIA resided in California, he controlled stash houses for his drugs, guns and money in Mt. Vernon, Bow, and Stanwood, Washington.
AGUILAIR VALENCIA had no legal status in the United States, and had prior convictions for kidnapping, rape, assault with a deadly weapon (California 1986), lewd acts with a child and failure to register as a sex offender (California 2008), and illegal reentry after deportation (California 2011).
AGUILAIR VALENCIA was arrested when law enforcement moved in on the ring in June 2015. At AGUILAIR VALENCIA’s various stash houses law enforcement seized a total of over 30 pounds of meth and heroin and numerous firearms including one with a silencer. At AGUILAIR VALENCIA’s home in California, agents seized nearly $32,000 in cash.
On November 23, 2016, AGUILAIR VALENCIA pleaded guilty to conspiracy to distribute controlled substances and conspiracy to launder money.
The other defendants in the case and their sentences include: Gustavo Garcia-Valencia (five years); Juan Diego Vasquez-Cardenas (three years); Rafael Marin-Macias (eight years); Guadalupe Farias-Savala (four years) and Efran Villalobos-Gonzalez (five years).
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was led by the Drug Enforcement Administration (DEA) in cooperation with the Skagit County Interlocal Drug Enforcement Unit and the Whatcom Gang and Drug Task Force.
The case was prosecuted by Assistant United States Attorneys Steven Masada and Grady Leupold.
Cape Coral Man Receives 30 Years in Prison for Producing and Possessing Child PornographyRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Joseph Spradlin (41, Cape Coral) to 30 years’ imprisonment for producing and possessing child pornography. He pleaded guilty on December 9, 2016.
According to the plea agreement, after downloading child pornography directly from Spradlin’s computer over a peer-to-peer network, members of the FBI Child Exploitation Task Force executed a search warrant at Spradlin’s residence. The agents located more than 65,000 images and 668 videos of child pornography on four thumb drives. Further investigation revealed that Spradlin had produced child pornography images and videos of an 8-year-old girl on at least two occasions.
This case was investigated by the FBI Child Exploitation Task Force, with assistance from the Cape Coral Police Department and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Charles Schmitz.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Canadian Woman Pleads Guilty to Embezzlement of Mail by Postal EmployeeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that LEANDA JOANNE PRATHER, age 37, of Canadian, Oklahoma, pled guilty to EMBEZZLEMENT OF MAIL BY POSTAL EMPLOYEE, in violation of Title 18, United States Code, Section 1709, punishable by no more than 5 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that between on or about August 2, 2016, to on or about December 20, 2016, in the Eastern District of Oklahoma, the Defendant, a United States Postal Service employee, did willfully, knowingly and unlawfully embezzle packages entrusted to her and which came into her possession to be conveyed by mail, located at the Eufaula Post Office, 131 W. Foley, Eufaula, Oklahoma, while performing her assigned duties as an employee of the United States Postal Service.
The charge arose from an investigation by the United States Postal Service Office of Inspector General.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant remains on release status pending a sentencing hearing.
Assistant United States Attorney John David Luton represented the United States.
Broward County Resident Sentenced to Three Years in Prison for Identity TheftRead the Press Release
A Hallandale resident was sentenced yesterday, by United States District Court Senior Judge William J. Zloch, to 36 months in prison, to be followed by three years of supervised release.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), made the announcement.
Tarik Jean-Jourdian, 25, previously pled guilty to one count of use of one or more unauthorized access devices to obtain anything of value aggregating $1,000 or more, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, an analysis of ATM video footage revealed that, between April 15and May 15, 2015, the PNC Bank account issued to a victim was accessed on at least six different occasions, to withdraw a total of $2,800, from various PNC Bank ATMs by defendant Jourdian. On February 8, 2016, law enforcement executed a search warrant on Jourdian’s Hallandale residence and vehicle. During the course of the search of defendant’s car, agents seized numerous handwritten and typed pieces of paper containing the personal identifying information (PII) of other individuals, including names, dates of birth and social security numbers. In total, there were approximately 200 pieces of distinct PII found in the defendant’s vehicle.
Law enforcement spoke with the individual whose name, date of birth, and social security number were used to open the PNC Bank account, and confirmed that he/she did not authorize Jean-Jourdian to be in possession of the PII.
Mr. Greenberg commended the investigative efforts of DOL-OIG. The case was prosecuted by Assistant United States Attorneys Joshua S. Rothstein and Breezye Telfair.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida atwww.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bay Village man sentenced to more than six years in prison for $420,000 fraud involving concert ticketsRead the Press Release
A Bay Village man was sentenced to more than six years in prison for fraudulently buying concert and event tickets worth hundreds of thousands of dollars with stolen credit cards and then reselling them, law enforcement officials said.
Daniel Mercede, 29, pleaded guilty last year to charges of bank fraud, access devise fraud and operating an unlicensed money transmitting business. U.S. District Judge Sara Lioi sentenced Mercede to 79 months in prison and ordered him to pay $424,222 in restitution.
Mercede used stolen and fraudulently obtained credit card information from dozens of people to purchase tickets to concerts and events from ScoreBig, a California-based company that sells tickets, according to court documents.
He had the tickets sent to his or his parents’ homes in Chagrin Falls, where Mercede lived when he committed the crimes. He then resold the tickets – for events in Baltimore, Buffalo, Los Angeles, Miami, New York, Philadelphia, Pittsburgh, Seattle, St. Louis and Washington D.C. -- on StubHub, receiving the funds by check or through PayPal, according to court documents.
Mercede attempted to obtain more than $3 million in combined fraudulent proceeds between 2014 and last year, and obtained more than $424,222, according to court documents.
He used money for his own personal enrichment, including purchases of luxury cars, expensive jewelry and exotic vacations, according to court documents.
“Mr. Mercede was motivated solely by greed,” Acting U.S. Attorney David A. Sierleja said. “He has shown himself to be a serial scammer and identity thief who is a clear economic danger to the community. Prison is the proper place for him.”
“Mercede left a wake of financial damage with the numerous unlawful schemes he engaged in,” said FBI Special Agent in Charge Stephen D. Anthony. “The FBI will continue to work with our law enforcement partners to ensure fraudsters serve their due time behind bars instead of on lavish vacations at the expense of others.”
"Daniel Mercede perpetrated a complex scheme involving identity theft and the illegal use of an unlicensed bitcoin exchange service that was driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims," said Frank S. Turner II, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "Be assured that IRS Criminal Investigation, together with our law enforcement partners and the U.S. Attorney's Office, will hold those who engage in similar behavior fully accountable."
“I would like to acknowledge the hard and diligent work of Detective Sergeant Andy Capwill,” said Chagrin Falls Police Chief Amber Dacek. “He really dug in to this case and gathered a good deal of the initial financial information that ultimately led to this prosecution. I am very pleased with the collaborative effort that went in to obtaining this conviction.”
This case was prosecuted by Assistant U.S. Attorneys Paul Flannery and Matthew Kall following an investigation by the FBI, IRS, U.S. Postal Inspection Service, Chagrin Falls Police and Westlake Police.
Baltimore Sex Offender Pleads Guilty to Production of Child PornographyRead the Press Release
Baltimore, Maryland – Louis Frances Bradley, age 66, of Baltimore, Maryland, pleaded guilty on March 20, 2017, to production of child pornography. Bradley has four previous state convictions on charges related to the sexual exploitation of children.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, between 2014 and 2016, Bradley paid numerous women in the Philippines to take sexually explicit photos of prepubescent females and send the images to Bradley using social media. Bradley also paid the women to expose their genitals to Bradley using video streaming programs.
Bradley created two social media accounts and used the accounts to become “friends” with hundreds of young women who lived in the Philippines. Many of the women “friended” by Bradley had prepubescent children or access to prepubescent children. Bradley asked the women to send sexually explicit images of prepubescent females under their care in exchange for money. Bradley admitted that he sent 120 payments to at least 17 payees in the Philippines, totaling $8,291. At least six of the recipients sent Bradley images or videos of children engaged in sexually explicit conduct in exchange for the payments.
As part of his plea agreement, Bradley must continue to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Bradley faces a minimum sentence of 35 years and up to life in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for May 2, 2017 at 2:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the federal case.
Aliquippa Man Charged with Dealing Fentanyl Resulting in DeathRead the Press Release
PITTSBURGH - One resident of Aliquippa, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Corey Bargerstock, age 42.
According to the indictment presented to the court, on July 7, 2016, Bargerstock possessed with intent to distribute and distributed fentanyl that caused the serious bodily injury and death of a person.
The law provides for a maximum total sentence of up to life in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Tonya S. Goodman and Timothy M. Lanni are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Hopewell Township Police Department 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.
Albuquerque Man Sentenced to 69 Months in Federal Prison for Trafficking Methamphetamine and HeroinRead the Press Release
ALBUQUERQUE – Larry Valadez, 34, of Albuquerque, N.M., was sentenced today in federal court to 69 months in prison for his conviction on methamphetamine and heroin trafficking charges. Valadez will be on supervised release for four years following his prison sentence.
Valadez and co-defendant Johnny Ramirez, 34, also of Albuquerque, were charged on Dec. 1, 2015, with drug trafficking offenses in an eight-count indictment. Valadez and Ramirez were charged with conspiring to distribute methamphetamine and heroin in May 2015, and with distributing methamphetamine and heroin in May 2015 and June 2015. According to the indictment, the two men committed the crimes in Bernalillo County, N.M.
On Jan. 19, 2017, Valadez pled guilty to distributing methamphetamine and heroin. In entering the guilty plea, Valadez admitted that on May 19, 2015, he sold approximately 23.52 grams of methamphetamine and 4.3 grams of heroin to an individual working with the FBI.
On Aug. 1, 2016, Ramirez pled guilty to two counts of methamphetamine distribution and one count of heroin distribution. In entering the guilty plea, Ramirez admitted that on May 19, 2015, he arranged for a co-conspirator to sell 23.52 grams of methamphetamine and 4.3 grams of heroin to an individual who was working with the FBI. Ramirez also admitted that on June 16, 2015, he sold 14.71 grams of methamphetamine to the same individual. Ramirez was sentenced on Nov. 8, 2016, to 84 months in prison followed by four years of supervised release.
This case was investigated by the Albuquerque office of the FBI and the New Mexico State Police. The Organized Crimes Section of the U.S. Attorney’s Office prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Active Duty Member of U.S. Military Pleads Guilty to Stealing and Selling Military-Issued Night Vision TechnologyRead the Press Release
Earlier today, Zachary Sizemore, an active-duty service member of the United States Air Force, pleaded guilty to the sale without authority of night vision devices and components stolen from the Air Force. Today’s guilty plea took place before Magistrate Judge Peggy Kuo at the federal courthouse in Brooklyn.
On November 29, 2016, the defendant was arrested on the Wright-Patterson Air Force Base in Dayton, Ohio, where he is stationed. He appeared that afternoon at the U.S. Courthouse in Dayton, Ohio, and at the federal courthouse in Brooklyn on December 7, 2016.
The guilty plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; Leigh-Alistair Barzey, Special Agent-in-Charge for the Department of Defense, Defense Criminal Investigative Service (DCIS), and Angel M. Melendez, Special Agent-in-Charge for the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York.
According to court filings, between July 2013 and November 2016, Sizemore sold night vision devices that he stole from the United States military, including night vision goggles and mini-thermal monoculars. In addition, he created online postings for, and sold or attempted to sell, dozens of items described as night vision equipment or thermal equipment, among other military equipment. Of those postings, Sizemore sold at least 80 such items for approximately $86,000. To date, the DCIS has identified more than $130,000 in losses attributable to Sizemore’s theft.
Night vision devices acquired by the United States military, such as the items the defendant stole and sold, contain components made to military specifications. The military requires the items to be rendered useless for their intended purpose prior to leaving government control. United States military policies prohibit the private sale of fully functional military-issued night vision equipment.
When he is sentenced on June 29, 2017, Sizemore faces a maximum sentence of 10 years in prison.
The government’s case is being prosecuted by the Office’s General Crimes Section. Assistant United States Attorney Nomi D. Berenson is in charge of the prosecution and Assistant United States Attorney Tanisha R. Payne is in charge of the forfeiture.
The Defendant:
ZACHARY SIZEMORE
Age: 24
Dayton, Ohio
E.D.N.Y. Docket No. 17-CR-87 (SJ)
20 March 2017
Woman Who Falsely Claimed Cancer Diagnosis and Treatment Sentenced for Defrauding Social Security and Military Health SystemRead the Press Release
A 36-year-old Steilacoom, Washington woman was sentenced today in U.S. District Court in Tacoma to 60 days home confinement and 100 hours of community service for defrauding Social Security Disability and the U.S. Army healthcare system of more than $100,000 in benefits, announced U.S. Attorney Annette L. Hayes. maria sanchez-kountz pretended to have terminal cancer to secure prescription opiates and Social Security disability benefits. At the sentencing hearing, U.S. District Judge Benjamin H. Settle noted that SANCHEZ-KOUNTZ is the sole parent to two children and imposed five years of probation and ordered her to pay $102,932 in restitution.
According to records filed in the case, between February 2012 and July 2016, sanchez-KOUNTZ received disability payments because she claimed she could not work due to terminal cancer. She also received benefit payments for her children as part of her disability claims. SANCHEZ-KOUNTZ falsely reported a history of ovarian cancer that was treated with surgery, followed by chemotherapy and radiation. When SANCHEZ-KOUNTZ visited doctors between 2011 and 2015, she described to them her false history of cancer, and that description was memorialized in her medical records, which she used as further proof of her condition. She repeatedly told doctors that she did not want any more chemotherapy or radiation, electing only palliative care that included prescription narcotics for her self-reported chronic pain and nausea. With this scheme sanchez-KOUNTZ, who at the time was married to a member of the U.S. military, stole more than $82,000 in disability payments and more than $20,000 in military medical benefits.
In fact, sanchez-KOUNTZ was working for a Lakewood, Washington company as a seamstress during some of the period when she was collecting disability benefits. She even had a tailoring business that she promoted on a website by falsely claiming she was a cancer survivor. SANCHEZ-KOUNTZ’s scheme became known when medical professionals could not locate any records related to her prior treatment at medical facilities where she claimed to have been a patient.
The case was investigated by the Cooperative Disability Investigations Unit (CDIU), which is a disability fraud task force comprised of the Social Security Administration, Office of Inspector General (SSA-OIG), the Social Security Administration (SSA), the Washington State Patrol (WSP) and the Washington State Department of Social and Health Services, Disability Determination Services (DDS). The case was prosecuted by Special Assistant United States Attorney Benjamin Diggs. Mr. Diggs is an attorney with the Social Security Administration, specially designated to prosecute fraud cases in federal court.
Virginia Man Sentenced to 108 Months in Federal Prison on Child Pornography, Firearms ChargesRead the Press Release
Abingdon, VIRGINIA – A Virginia man, who previously pled guilty to federal charges related to his admitted viewing of depictions of child pornography and the possession of an illegal firearm, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon.
Tony Michael Spencer, 42, of Raven, Virginia, previously pled guilty to one count of receiving depictions of a minor engaged in sexually explicit conduct and one count of possessing a short-barreled shotgun. Today in District Court, Spencer was sentenced to 108 months in federal prison and 15 years of supervised release thereafter.
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, after obtaining information that Spencer was part of a group of individuals utilizing a website on the internet to distribute child pornography, the Federal Bureau of Investigation executed a search warrant on Spencer’s residence on August 6, 2015. At the time of the search warrant, Spencer admitted to viewing child pornography on the website and FBI agents located an unregistered sawed-off shotgun in the residence.
To date, the FBI’s examination of Spencer’s computers seized at the time of the search has located more than 300,000 images of child pornography.
The investigation of the case was conducted by Federal Bureau of Investigation. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.