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Tuesday 31 January 2017
Little Rock Woman Sent to Prison for Role in Scheme to Steal USDA Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced Tuesday that United States District Court Judge J. Leon Holmes sentenced Maria Carmen Nelson, 50, of Little Rock, to prison for her role in a widespread scheme to steal money intended for feeding children in low income areas.
Judge Holmes sentenced Nelson, who pleaded guilty to conspiring to commit wire fraud on August 25, 2016, to 30 months’ imprisonment, to be followed by three years of supervised release. She was also ordered to pay restitution in the amount of $575,917.76.
The United States Department of Agriculture (USDA) feeding programs in Arkansas are administered through the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding programs, and they are reimbursed for the eligible meals they serve.
Nelson is the fifth defendant to be sentenced for her involvement in a scheme to fraudulently obtain USDA program funds intended to feed children in low income areas. Other defendants sentenced include: Kattie Jordan, sentenced to 63 months’ imprisonment on March 15, 2016; Reuben Nims, sentenced to 21 months’ imprisonment on November 2, 2016; Tonique Hatton, sentenced to 108 months’ imprisonment on January 4, 2017; and James Franklin, sentenced to 24 months’ imprisonment on January 10, 2017. Gladys Waits, Christopher Nichols, Waymon Weeams, Francine Leon, Michael Lee, Alexis Young, and Erica Warren have all pleaded guilty to conspiring to defraud USDA feeding programs and are awaiting sentencing. Jacqueline Mills, Dortha Harper, and Anthony Waits are scheduled for trial on March 27, 2017, before United States District Judge James M. Moody, Jr.
Nelson operated as a sponsor for a feeding program through an organization called "Securing Our Future" between approximately March 2012 and March 2015, with approved sites in Little Rock and Malvern, Arkansas. Nelson was recruited to participate by a DHS employee who worked in the section that oversaw the feeding programs. As part of the fraudulent scheme, the number of children who were fed at Nelson’s sites were inflated. Out of the money Nelson received as a result of the inflated claims, Nelson would pay cash back to the DHS employee.
Nelson received a total of approximately $575,917.76 from the feeding program in payment for fraudulent claims. After this money deposited into her account, Nelson withdrew sums of cash and that she paid to the DHS employee. The DHS employee is no longer employed at DHS.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris, Allison W. Bragg, and Cameron McCree.
If you are aware of any fraudulent activity regarding feeding programs, please email that information to [email protected].
Leader of the Simple City Criminal Organization Sentenced to over 10 Years in Federal Prison for a Racketeering Conspiracy and Aggravated Identity TheftRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Jeff Crews, a/k/a “Fro,” age 25, of Washington, D.C., today to 121 months in prison, followed by three years of supervised release, for conspiring to participate in a racketeering conspiracy and for aggravated identity theft, in connection with his activities as the leader of the Simple City Criminal Organization (SCCO). SCCO was a racketeering enterprise engaged in fraud and related activity, including vehicle theft, interstate transportation of stolen property, and aggravated identity theft. Judge Hazel also entered an order requiring Crews to forfeit and pay restitution of $1,250,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation; Chief Hank Stawinski of the Prince George’s County Police Department; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, the SCCO is a criminal organization based in the southeast quadrant of Washington, D.C. in a neighborhood known as “Simple City.” From at least 2009 to July 2015, Crews and his conspirators, including Sylvia Price and Stefon Janey, met on a regular basis, and planned criminal activity, including vehicle theft, the interstate transportation of stolen property, identity theft and credit/debit card fraud. The SCCO received money and income from those criminal activities.
According to his plea agreement, Crews and other SCCO members would steal vehicles in Prince George’s and Montgomery Counties, Maryland, as well as in Washington, D.C. Crews and SCCO members sometimes used the stolen vehicle in a short crime spree during which they committed a string of auto thefts; thefts from autos; and commercial burglaries targeting ATM machines. Once the SCCO had used a stolen vehicle to commit one or more crime sprees, the SCCO would then transport the stolen vehicle across state lines for resale.
Crews and other SCCO members would provide any personal identification information and access devices stolen during the crime spree to another group within the SCCO, which was led by Sylvia Price. Sylvia Price and those under her direction would conduct fraudulent transactions with the stolen identification documents and access devices, in Maryland, Washington, D.C., and Virginia. Price would provide a portion of the fraud proceeds to Crews, for disbursement to the SCCO members who participated in the thefts.
For example, on April 18, 2015, Crews, Janey, and another co-conspirator robbed a BP Gas Station in Beltsville, Maryland. While Crews acted as the getaway driver, Janey and another co-conspirator used a crowbar to forcibly enter the vestibule area, where an employee was working. Janey and the co-conspirator threatened the employee and stole the employee’s cell phone and cash from a cash register. In addition, Janey and the co-conspirator forcibly opened an ATM in the gas station, causing damage to the ATM, and took cash from the ATM. They fled the gas station in a gray Acura MDX that had previously been stolen in Prince George’s County, on March 31, 2015.
At least $550,000, but not more than $1,500,000, was reasonably foreseeable to Crews based on his involvement in the activities of the SCCO.
All fourteen defendants charged in this case have pleaded guilty to their participation in the racketeering conspiracy. Sylvia Price, a/k/a “Deez Nuts,” age 50, of Suitland, Maryland, was sentenced to 75 months in prison, ordered to pay a money judgment of $453,900, and to forfeit 101 high end women’s handbags, 45 debit cards, as well as gift cards, credit cards and gas cards. Stefon Janey, a/k/a “Stef,” and “Stef Luva,” age 23, of Marlow Heights, Maryland, was sentenced to 27 months in prison. Three other defendants have been sentenced to between 27 and 43 months in prison. The nine remaining defendants are scheduled to be sentenced in the next few months.
United States Attorney Rod J. Rosenstein praised the FBI, Prince George’s County Police Department, Montgomery County Police Department and the members of the Washington Area Vehicle Enforcement Unit for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Nicolas A. Mitchell, who are prosecuting the case.
Law Firm Office Manager Charged with Bank FraudRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a charge of bank fraud, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Anthony Calaiaro, age 33, of Pittsburgh, Pennsylvania as the sole defendant.
According to the indictment, from June 2014 through approximately April 2016, Calaiaro, who was employed as an Office Manager for a law firm, wrote checks to himself by forging the signature of a partner from the firm. Calaiaro then cashed the forged checks at various locations and used the funds for his own personal use. The total loss is approximately $827,020.39.
The law provides for a maximum total sentence of 30 years in prison, a fine of up to $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 Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Las Cruces Woman Sentenced to Prison for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Alejandra Gomez, 29, of Las Cruces, N.M., was sentenced today in federal court to 33 months in prison for her conviction on a heroin trafficking charge. Gomez will be on supervised release for three years after completing her prison sentence.
Gomez was arrested in Sept. 2015, on a criminal complaint charging her with distributing heroin in Doña Ana County, N.M. According to the criminal complaint, Gomez sold an aggregate of 241.6 grams of heroin to an undercover law enforcement agent on three occasions in July and Aug. 2015. On Sept. 9, 2015, law enforcement officers executed a federal search warrant on Gomez’s residence where they seized two firearms.
Gomez subsequently was indicted on Dec. 9, 2015, and charged with conspiracy to distribute heroin from July 2, 2015 through Aug. 19, 2015 and distributing heroin on July 2, 2015, July 16, 2015, and Aug. 19, 2015. According to the indictment, Gomez committed the crimes in Doña Ana County.
On July 13, 2016, Gomez pled guilty to a felony information charging her with conspiracy to possess heroin with intent to distribute. In entering the guilty plea, Gomez admitted that she distributed heroin to an undercover DEA agent on the following dates: on July 2, 2015, she distributed 12.9 grams of heroin; on July 16, 2015, she distributed 48.3 grams of heroin; and on Aug. 9, 2015 she distributed 68.5 grams of heroin.
This case was investigated by the Las Cruces office of the DEA. Assistant U.S. Attorney Matthew Beck of the U.S. Attorney’s Las Cruces Branch Office is prosecuting 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.
Las Cruces Man Sentenced to 12 Years for Federal Drug Trafficking ConvictionRead the Press Release
ALBUQUERQUE –Luis Cipriano, 43, of Las Cruces, N.M., was sentenced today in federal court to 144 months in prison followed by four years of supervised release for his convictions on cocaine and methamphetamine trafficking charges in two separate cases.
Luis Cipriano and his co-defendants, Christian Cipriano, 23 and Luis Manuel Enriquez-Ramirez, 37, also of Las Cruces, were charged in a two-count indictment, 15-CR-1798, on May 20, 2015, with participating in a methamphetamine trafficking conspiracy and distributing methamphetamine. According to the indictment, the three men conspired to distribute methamphetamine on Aug. 19, 2014, in Doña Ana County, N.M.
In a separate case, Luis Cipriano and co-defendant George Ventura, 47, also of Las Cruces, were charged in a four-count indictment, 15-CR-1799, on May 20, 2015, with participating in a cocaine trafficking conspiracy and distributing cocaine. According to this second indictment, Ventura and Luis Cipriano conspired to distribute cocaine from Aug. 5, 2014 through Nov. 13, 2014 in Doña Ana County. The indictment also charged Luis Cipriano with distributing cocaine on Aug. 5, 2014 and on Oct. 10-11, 2014, and Ventura and Luis Cipriano with distributing cocaine on Sept. 8, 2014.
On Jan. 8, 2016, Luis Cipriano pled guilty to charges in both of the indictments against him. With respect to Indictment 15-CR-1798, Luis Cipriano admitted that on Aug. 19, 2014, he and co-defendant Enriquez-Ramirez negotiated to sell methamphetamine to a person who unbeknownst to Luis Cipriano was working with law enforcement. With respect to Indictment 15-CR-1799, Luis Cipriano admitted that on numerous occasions from Aug. 5, 2014 through Nov. 13, 2014, he conspired with Ventura to distribute cocaine to an undercover agent.
Christian Cipriano also pled guilty to charges in Indictment 15-CR-1798 on Jan. 8, 2016. He admitted that on Aug. 19, 2014, he drove Luis Cipriano to meet with Enriquez-Ramirez to complete a pre-arranged transaction to sell cocaine to a person who unbeknownst to the three co-conspirators was working with law enforcement. Christian Cipriano was sentenced on Aug. 17, 2016, to a year and a day in prison followed by two years of supervised release.
Ventura pled guilty to charges in Indictment 15-CR-1799 on Dec. 15, 2015, and admitted participating in a cocaine distribution conspiracy and to distributing cocaine on Sept. 8, 2014. Ventura was sentenced on March 1, 2016, to 146 days in prison followed by two years of supervised release. Ventura was also ordered to forfeit $7,600.00, which represents the profits he derived from the drug trafficking offenses charged in the indictment.
Enriquez-Ramirez has yet to be arrested and is considered a fugitive. Charges in indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
These cases were investigated by the Las Cruces office of the DEA and are being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
LRGP Member and Associate Sentenced for Their Roles in Murder in Connection with Rico Conspiracy ConvictionRead 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 LRGP Gang Member Fred Keys, 53, of Buffalo, NY, who was convicted of RICO conspiracy and conspiracy to possess with intent to distribute and distribute 28 grams or more of crack cocaine, was sentenced to 360 months in prison, by U.S. District Judge Richard J. Arcara. In addition, LRGP Gang Associate Alexis Mills, 24, also of Buffalo, who was convicted of RICO conspiracy, was sentenced to 222 months in prison.
Assistant U.S. Attorneys Thomas S. Duszkiewicz and Joel L. Violanti, who handled the case, stated that between 2009 and January 23, 2012, Keys was an associate of the LRGP gang, an organization engaged in violent criminal activity, including the distribution of cocaine and crack cocaine and the use of firearms, which operates primarily in the area of Lombard, Rother, Gibson, and Playter Streets in the City of Buffalo.
In April 2011, the defendants and others, while at 318 Sobieski Street in Buffalo, agreed that a member of the Cold Springs Gang, a rival criminal organization, should be murdered in retaliation for killing Alonzo Scott, in March 2011. Scott was the brother of LRGP leader Dewayne Gray. The individuals settled upon killing Amir Chambers, whom they believed to be associated with the Cold Springs Gang, and who had an ongoing social relationship with Alexis Mills.
After a failed attempt by Mills to poison Amir Chambers, it was agreed that Keys would kill Chambers by shooting him. Mills was to use her relationship with Chambers to get the victim to open his residence door. On April 20, 2011, Keys, Mills, and others went to a residence at 111 Mills Street in Buffalo where they dropped off Fred Keys and Alexis Mills. Chambers opened the residence door upon seeing Alexis Mills at which time Keys killed Chambers by shooting him in the head. Mills, for her part, kicked the victim in the head following the shooting to ensure that Chambers was in fact deceased. Keys later called 911 to report that there was a “body” at 111 Mills Street.
A total of 19 LRGP Gang members and associates have been convicted in this case.
The sentencings are the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Office; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Kansas Man Sentenced for Exporting FirearmsRead the Press Release
WASHINGTON – A Kansas man was sentenced today to 52 months in prison for his role in a scheme involving the illegal export of firearms from the United States using a hidden online marketplace, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Tom Beall of the District of Kansas.
Michael Andrew Ryan, aka Brad Jones and GunRunner, 36, of Manhattan, Kansas, previously pleaded guilty to six counts of exporting and attempting to export firearms illegally from the United States to individuals located in other countries on June 6, 2016, and was remanded into custody on Oct. 6, 2016. In addition to imposing today’s prison sentence, U.S. District Judge Daniel D. Crabtree of the District of Kansas ordered Ryan to forfeit all firearms and ammunition seized by law enforcement during the investigation.
In connection with his plea, Ryan admitted that he used the hidden internet marketplace Black Market Reloaded, a website hosted on the Tor network where users can traffic anonymously in illegal drugs and other illegal goods, to unlawfully export or attempt to export firearms from the United States to Cork, Ireland; Mallow, Ireland; Pinner, England; Edinburgh, Scotland; Victoria, Australia. These goods included dozens of firearms, including pistols, revolvers, UZIs and Glocks, some from which the manufacturer’s serial numbers had been removed, altered or obliterated, as well as magazines and hundreds of rounds of ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kansas City Field Division investigated the case with assistance from ATF’s National Investigative Division; U.S. Customs and Border Protection; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Manhattan and Riley County, Kansas, Police Departments. Assistant U.S. Attorney Greg Hough of the District of Kansas and Senior Counsel Marie-Flore Johnson of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Justice Department Reaches Agreement with St. James Parish Louisiana School District to Desegregate SchoolsRead the Press Release
The Department of Justice has reached an agreement with the St. James Parish School District in Louisiana that upon completion will end court supervision of the district’s schools. The consent order, approved yesterday by the U.S. District Court for the Eastern District of Louisiana, addresses all remaining issues in the school desegregation case, and when fully implemented will lead to the closing of that case.
The consent order, negotiated with the school district and private plaintiffs, represented by the NAACP Legal Defense and Educational Fund, puts the district on a path to full unitary status within three years provided it:
- Implements a new student assignment plan that desegregates its three nearly all-black elementary schools to the extent practicable, by revising feeder patterns and creating specialized academic programs that will attract a diverse student body;
- Revises the district’s code of conduct to ensure fairness and consistency in the handling of subjective disciplinary offenses that do not threaten safety, and provides district staff with additional tools to address student misbehavior in nondiscriminatory ways;
- Takes reasonable steps to recruit a diverse pool of applicants for faculty and staff vacancies that arise in the course of implementing the new student assignment plan; and
- Incorporates into its student handbook a statement prohibiting discrimination in extracurricular activities and encouraging participation by students of all races.
The consent order declares that the district has already met its desegregation obligations in the area of transportation. The court will retain jurisdiction over the consent order during its implementation, and the Justice Department will monitor the district’s compliance.
“We are pleased to have worked hand-in-hand with the schools to ensure equal and fair treatment for the students of the St. James Parish School District,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “We look forward to working with the district and private plaintiffs to implement the consent order and bring this case to a successful close.”
Promoting school desegregation and enforcing Title IV of the Civil Rights Act of 1964 is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
St. James Parish Consent OrderJefferson County Man Sentenced for Terroristic Threat in BeaumontRead the Press Release
BEAUMONT, Texas – A 23-year-old Beaumont, Texas man has been sentenced to federal prison for making a terroristic threat in the Eastern District of Texas announced Acting U.S. Attorney Brit Featherston today.
Lance Giovanni Fontenot pleaded guilty on Sep. 15, 2016, to maliciously conveying false information about explosive material and was sentenced to 21 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on June 15, 2016, Fontenot placed a telephone call to the ExxonMobil refinery located at 1795 Burt Street in Beaumont, Texas and claimed that explosive devices were set to detonate at packages placed around the exterior of the facility at a specific time that day. In the call, Fontenot stated that a specific employee working at the plant had worked with a family member to place the explosives around the property, and Fontenot told the employee of the plant who answered the call that the employee responsible had ties to a terrorist organization identified by Fontenot as "ISIS."
Law enforcement agencies immediately responded to the scene, and once the threat was identified as false, began to focus on identifying the caller who made the threat. Within hours, investigators identified Fontenot, who had recently been in a romantic relationship with the employee that the defendant claimed was responsible for placing the explosives around the plant. Investigators then placed a call to the number used to phone in the threat, and Fontenot answered and identified himself at that number. Later that same day, Fontenot admitted to knowingly lying about the threat of explosives and was aware that his actions would disrupt the operations of a plan with an interstate pipeline that would result in a significant financial loss to the company. Fontenot stated the purpose for the threat was to retaliate at the named employee for discontinuing their romantic relationship. Fontenot also admitted to lying about the employee having any known connection with a terrorist organization.
Fontenot was also ordered to pay restitution to ExxonMobil in the amount of $372,691.79, which was the cost to the refinery for shutting down the pipeline.
This case was investigated by the Joint Terrorism Task Force including agents with the Federal Bureau of Investigation, the Beaumont Police Department, Homeland Security Investigations, Bureau of Alcohol Tobacco and Firearms, the Jefferson County Sheriff’s Office, the U.S. Coast Guard Investigative Services, and the Port Arthur Police Department. This case was prosecuted by Assistant U.S. Attorney Lesley Woods.
James City County Man Pleads Guilty to Child Pornography ChargeRead the Press Release
NEWPORT NEWS, Va. – Charles K. Young, 69, of James City County, pleaded guilty today to receipt of child pornography.
According to the statement of facts filed with the plea agreement, in August 2016, a family member of Young’s called the James City County Police to report that Young was in possession of child pornography. The family member provided enough information to allow police to obtain a search warrant for Young’s home. Upon execution of the search warrant, detectives seized a number of electronic devices and ultimately a forensic examiner found more than 22,000 images of child pornography. Young also admitted to receiving a movie containing images of minor males engaged in sexually explicit activity.
Young was indicted by a federal grand jury on Nov. 15, 2016. Young faces a minimum five years in prison and a maximum penalty of 20 years in prison when sentenced on May 17. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Lisa R. McKeel is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-78.
Jamaican Man Sentenced to 41 Months for Lottery ScamRead the Press Release
ALBANY, NEW YORK – Jeragh Powell, age 26, a citizen of Jamaica and former resident of Schenectady, New York, was sentenced today by U.S. District Judge Mae A. D’Agostino to serve 41 months in prison for his participation in a Jamaica-based lottery scam that targeted elderly victims.
The announcement was made by United States Attorney Richard S. Hartunian and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division.
As part of his August 1, 2016 guilty plea, Powell admitted to working with his wife Kimberly Powell, a co-defendant, and others, to mail false lottery prize notifications to mostly elderly people located throughout the United States. The fraudulent prize notifications letters congratulated the victims on winning a recent drawing and instructed them to pay tens of thousands of dollars in “fees and taxes” and “shipping and handling” in order to receive their purported prize money and cars. Members of the conspiracy located in Jamaica also communicated with the victims by telephone, directing them to make payments to people in the United States.
Jeragh Powell and his wife Kimberly, age 37, of Schenectady, received more than $65,000 from victims of the scheme, and forwarded a large portion of the proceeds to Jeragh Powell’s associates in Jamaica. Kimberly Powell pled guilty to mail fraud charges on August 3, 2016, and is scheduled to be sentenced on February 23, 2017.
This case was investigated by the USPIS, Homeland Security Investigations (HSI), and the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Inmate Indicted for Assaulting Corrections OfficerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dahveed Dean, age 40, an inmate at United States Penitentiary Canaan, Waymart, Pennsylvania, was indicted today by a federal grand jury on a charge of assaulting a federal employee.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Dean punched a corrections officer in the face during an altercation at the prison in September. The officer suffered minor injuries.
The case was investigated by the Federal Bureau of Investigation and officers at USP Canaan. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hunting Guide from Elk County Charged with Lacy Act ViolationsRead the Press Release
WICHITA, KAN. – A Kansas hunting guide was indicted Tuesday on charges of violating the Lacy Act and the federal Migratory Bird Treaty Act, U.S. Attorney Tom Beall said. Two of the guide’s employees and a hunter from Georgia also were charged.
The 21-count indictment alleges violations including exceeding daily bag limits, killing waterfowl over bait, killing hawks, using electronic bird calls and possessing untagged birds.
The Migratory Bird Treaty Act makes it a federal crime to kill migratory birds except with a permit and in compliance with state hunting regulations. The Lacy Act makes it unlawful to sell or transport wildlife taken in violation of state hunting regulations.
Named in the indictment are:
Josh Hedges, 34, Grenola, Kan., owner of Eagle Head Outfitters, one count of conspiracy to violate the Lacy Act and 12 counts of unlawful sale and transport of wildlife.
Jerad Stroot, 25, Colwich, Kan., employee of Eagle Head Outfitters, six counts of unlawful sale or transport of wildlife.
Allen Stroot, 32, Park City, Kan., employ of Eagle Head Outfitters, one count of violating the Migratory Bird Act.
Steve Seagraves, 61, Douglasville, Ga., a customer of Eagle Head Outfitters, one count of violating the Migratory Bird Act.
Upon conviction, counts 1 through 8, 12 through 16, 18 and 19 carry a penalty of up to five years in federal prison and a fine up to $250,000 (see attached indictment). The other counts carry a penalty of up to six months and a fine up to $5,000. The U.S. Fish and Wildlife Service and the Kansas Department of Wildlife, Parks and Tourism investigated.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Hartford Cocaine Trafficker Sentenced to 5 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that TODD VERNON, 42, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 60 months of imprisonment, followed by five years of supervised release, for trafficking cocaine. VERNON also was ordered to pay a $50,000 fine.
According to court documents and statements made in court, Raul Chavez headed a cocaine trafficking operation that smuggled cocaine from Mexico into El Paso, Texas, and then transported the drug to Connecticut and elsewhere. The investigation revealed that the Chavez organization had been supplying multiple kilograms of cocaine to VERNON since approximately 2004, and Tyshawn Welborn, of Bloomfield, since approximately 2010. The shipments, which would typically be in the range of 30 to 40 kilograms, were sent regularly from El Paso multiple times per year. VERNON and Welborn distributed the drug through a network of individuals.
In 2014, the Chavez organization attempted to find an additional source of supply for its Hartford area cocaine customers. In July 2014, a DEA confidential source met Andrew Duron, also known as “Chavo,” in North Carolina. During the meeting, Duron told the confidential source that he wanted to purchase up to 50 kilograms of cocaine for $28,000 per kilogram. On August 14, 2014, Duron, the confidential source and an undercover DEA agent met in New Jersey where Duron agreed to purchase 25 kilograms of cocaine. In subsequent conversations with the confidential source, Duron stated that he wanted an extra $1000 per kilogram as a side deal. They agreed on a total price of $725,000 for 25 kilograms of cocaine.
The investigation revealed that this cocaine shipment was destined for both VERNON, who had prepaid for approximately 13 kilograms of cocaine, and Welborn.
On August 23, 2014, Duron met the undercover DEA agent at a location in Wethersfield. Duron told the undercover agent that his associates were in Connecticut and that Duron and the undercover agent would need to travel to a store parking lot near Bradley International Airport to verify that the money was in place. Duron and the undercover agent then drove in separate vehicles to a store parking lot on Kennedy Road in Windsor. Duron met with Raul Chavez and another associate in the store. A short time later, a third associate arrived in a Jeep Wrangler, met the undercover agent in the parking lot, showed him a duffel bag and said it contained “half” of the money. Shortly thereafter, investigators arrived at the scene and arrested Duron, Raul Chavez and his associates.
Investigators also recovered from the Jeep a duffel bag containing approximately $284,000 in cash, and a loaded .38 caliber revolver. The cash had been picked up from Welborn earlier that day.
After word reached Raul Chavez’s son, Christopher Chavez, that his father and others had been arrested, Christopher Chavez coordinated the diversion of a shipment of 34 kilograms of cocaine, which was en route to Connecticut, to a high-level drug distributor in Cleveland, Ohio.
VERNON was arrested on August 26, 2015. On September 7, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
VERNON, a citizen of Canada, faces deportation proceedings when he is released from prison.
Raul Chavez, Christopher Chavez, Duron and Welborn also pleaded guilty. On September 22, 2015, Duron, of El Paso, was sentenced to 84 months of imprisonment; on October 7, 2016, Christopher Chavez, of El Paso, was sentenced to 60 months of imprisonment; on December 21, 2016, Welborn, also known as “Black,” was sentenced to 84 months of imprisonment and a $200,000 fine, and on January 11, 2017, Raul Chavez was sentenced to 144 months of imprisonment and a $250,000 fine.
This investigation has been conducted by the Drug Enforcement Administration’s Hartford Task Force, including personnel from the DEA Hartford Resident Office and the Bristol, Hartford, Manchester, New Britain, Newington, and Wethersfield Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and Amy C. Brown.
Guilty Plea in Case Involving Illegal Importation of Chinese CigarettesRead the Press Release
LOS ANGELES – A Los Angeles man has pleaded guilty to illegally engaging in the business of importing tobacco products.
Zhi Xiong Chen, 56, of Chinatown, pleaded guilty yesterday to the felony offense and admitted that for nearly five years, despite not holding a permit to import tobacco products, he used several addresses to receive 15,128 cartons of Chinese-brand cigarettes. During this time, U.S. Customs and Border Protection officers also stopped approximately 9,824 cartons of Chinese-brand cigarettes at international mail facilities in California and New York.
As part of the scheme, Chen admitted that he attempted to evade paying more than $467,000 in federal and state excise taxes on the cigarettes that he illegally imported.
“From early 2011 until mid-2016, this defendant illegally imported thousands of cartons of Chinese-made cigarettes without the necessary permits and without paying excise taxes,” said United States Attorney Eileen M. Decker. “The defendant’s crime not only cheated taxpayers, but also caused unregulated, potentially dangerous products to be sold to an unsuspecting public.”
“While Zhi Xiong Chen was illegally importing tens of thousands of cartons of cigarettes into the United States, he was also evading hundreds of thousands of dollars in taxes due on those cigarettes,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Importers who obtain the required permits and pay their fair share of taxes deserve to compete on a level playing field. Those who try to cut corners and skirt these legal obligations should know that they will be investigated and prosecuted.”
Chen pleaded guilty before United States District Judge George H. Wu, who is scheduled to sentence the defendant on April 17, at which time he will face a statutory maximum penalty of five years in federal prison.
This case is being investigated by the Alcohol and Tobacco Tax and Trade Bureau, the U.S. Food and Drug Administration’s Criminal Investigations, and IRS Criminal Investigation.
The case is being prosecuted by Assistant United States Attorney Valerie L. Makarewicz of the Tax Division and Trial Attorney Christopher S. Strauss of the Justice Department’s Tax Division.
Georgia Tax Return Preparer Sentenced to Prison for Filing Fraudulent ReturnsRead the Press Release
An Atlanta, Georgia based tax return preparer was sentenced to 150 months in prison today for filing tax returns fraudulently claiming more than $20 million in refunds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John A. Horn for the Northern District of Georgia.
According to documents filed with the court, Cheryl Singleton, 29, owned and operated Advanced Tax Services, a tax preparation business with multiple locations throughout the Atlanta area. Singleton hired and trained employees to prepare fraudulent tax returns and encouraged them to manipulate the numbers to maximize their clients’ refunds. From 2011 through 2016, Singleton and her employees included false dependents and fraudulent Schedule C businesses on their clients’ returns in order to inflate their refunds.
Singleton and her employees also manipulated other individuals into providing their personal identification information by telling them they could qualify for an “Obama Stimulus” payment. and others used these individuals’ personal identification information to file fraudulent income tax returns in their names, without their knowledge or consent. In addition, attempted to defraud USAA, a financial institution serving military members and their families, out of more than $421,000 in fraudulent loans and lines of credit. used stolen and fake identities to try and open accounts, obtain credit cards and obtain loans from USAA.
Singleton previously pleaded guilty on Aug. 2, 2016 to wire fraud. In addition to the prison term imposed, Singleton was ordered to serve three years of supervised release and to pay $5,100,129.41 in restitution, including $4,944,524 to the Internal Revenue Service (IRS) and $105,597 in restitution to USAA.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Horn commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorney Melanie Smith of the Tax Division and Assistant U.S. Attorney Samir Kaushal of the Northern District of Georgia, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Garden City Man Indicted for Illegal Firearm, ExplosivesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Garden City, Mo., man was indicted by a federal grand jury today for illegally possessing a firearm and two pipe bombs.
Caleb M. Ayers, 29, of Garden City, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Ayers, a convicted felon, was in possession of a firearm and explosives on May 14, 2016. Ayers allegedly possessed a Smith and Wesson .45-caliber semi-automatic handgun and two pipe bombs.
One of the pipe bombs is described in the indictment as an approximately 12-gram carbon dioxide cartridge filled with a quantity of explosive powder, with a functional green pyrotechnic fuse protruding from its opening and Zinc-coated steel balls (measuring approximately 0.174 inches in diameter) glued to the cartridge with yellow epoxy-type adhesive. The second pipe bomb is described in the indictment as a length of white PVC pipe, approximately 3/4 of inch in diameter, sealed with white PVC end caps attached at each end. The PVC pipe contained a quantity of explosive powder and there was lead shot of at least two sizes, No. 8 and No. 9, glued to the exterior of the pipe with a yellow adhesive.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or explosives. Ayers has prior felony convictions for possessing methamphetamine and resisting arrest.
Ayers is also charged with one count of possessing unregistered destructive devices.
Ayers was originally arrested when law enforcement officers responded to a report of a suspicious vehicle in the parking lot of Hawthorne Bank in Drexel, Mo. When officers arrived, Ayers was sleeping in the driver’s seat of a GMC utility truck, which was running. The loaded pistol was lying on top of the center console. After Ayers was awakened, an officer searched the vehicle and found the explosive devices in a plastic box in the rear seat.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cass County, Mo., Sheriff’s Department.
Former Tennessee Sheriff Pleads Guilty to Federal Corruption ChargesRead the Press Release
Former Chief Administrative Deputy and Sheriff’s Uncle Also Plead Guilty
A former Rutherford County Sheriff, his former Chief Administrative Deputy, and his uncle have pleaded guilty for operating a private electronic cigarette company in the county jail for personal gain and the concealment and misrepresentation of their involvement with the business, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Robert F. Arnold, 40, former Sheriff of Rutherford County, Tennessee, and his former Chief Administrative Deputy Joe L. Russell II, 50, also of Rutherford County, pleaded guilty to wire fraud, honest services fraud and extortion under color of official right on Jan. 18 and 20, respectively. Arnold’s uncle, John Vanderveer, 59, of Marietta, Georgia, pleaded guilty to attempted witness tampering on Jan. 30. The pleas were entered before Chief U.S. District Judge Kevin H. Sharp of the Middle District of Tennessee. Arnold is scheduled to be sentenced by Chief Judge Sharp on May 8, and Vanderveer and Russell are scheduled to be sentenced on May 12 and May 19, respectively. All three were indicted in May 2016 for their roles in the formation and operation of the electronic cigarette company, JailCigs LLC.
In connection with their pleas, Arnold and Russell admitted to forming JailCigs with Vanderveer in 2013; using Arnold’s official position as Sheriff of Rutherford County to benefit JailCigs by allowing the company’s electronic cigarettes to come into the Rutherford County jail as non-contraband and be distributed by county employees; taking steps to disguise their involvement in the company; and misrepresenting the benefits that Rutherford County was supposedly receiving from JailCigs.
Additionally, Arnold admitted that he personally received over $66,000 from JailCigs; and admitted that he lied about his income from, and knowledge of, the company when he was confronted by local media in April 2015. Russell admitted receiving over $52,000 in payments from JailCigs. Vanderveer, a private citizen and Arnold’s uncle, admitted to telling the company’s Tennessee sales representative to destroy her commission sheets so the company could provide fraudulent versions that would show the payments going to her, rather than Arnold. Under the terms of the plea agreement, each defendant agreed to pay restitution to Rutherford County in the amount of $52,500.The FBI and the Tennessee Bureau of Investigation investigated the case. Trial Attorney Mark Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cecil W. VanDevender of the Middle District of Tennessee are prosecuting the case.
Former Orange County Detective Sentenced in HUD Fraud SchemeRead the Press Release
BEAUMONT, Texas – A 47-year-old former Orange County Sheriff’s Detective has been sentenced to federal prison for violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Chad Wayne Hogan, of Orange, Texas, pleaded guilty on Sep. 6, 2016, to money laundering and was sentenced to one year and one day in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, from March 2009 to August 2015, Hogan, while employed as a detective with the Orange County Sheriff’s Office, deposited approximately 4,302 checks into a bank account at MCT Credit Union titled “Starcomm Wireless,” all of which represented proceeds from unlawful activity. Starcomm Wireless was a business once owned and operated by Hogan, but closed prior to 2009. Hogan, however, kept the Starcomm Wireless bank account open and active after the business ceased operation.
The checks were written on bank accounts held by Beverly Place apartments, Cedarwood apartments, and Villa Main apartments, all in the Port Arthur/Groves, Texas area and ranged in amount from $2 to $277, totaling $187,706. Employees of the apartment complexes would meet with Hogan, give him the checks, which he would deposit in his account. Hogan would then give approximately 2/3 of the money back to the employees, keeping the remaining 1/3 for himself. The checks Hogan received from the employees were payable to tenants of the complexes and were written under the Housing and Urban Development’s (HUD’s) utility assistance program. The HUD utility assistance program provides qualifying persons a monthly check to help offset their utility costs. However, many of the tenants at Beverly Place, Cedarwood, and Villa Main were not aware they were receiving these benefits. On-site managers at the complexes engaged in a scheme to fraudulently sign tenants up for HUD benefits without the tenants’ knowledge, and then take then use the money provided by HUD for themselves. Hogan was aware that the checks he was depositing represented the proceeds of some form of unlawful activity, and did so to disguise the nature of the funds. Hogan was also ordered to pay restitution in the amount of $187,706, as this was his portion of the scheme.
This case was investigated by the U.S. Housing and Urban Development – Office of Inspector General and Homeland Security Investigations. This case was prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Former Linndale police officer sentenced to more than three years in prison for drug crimesRead the Press Release
A former part-time Linndale police officer was sentenced more than three years in prison for transporting large amounts of MDMA and marijuana, law enforcement officials said.
Jonida Alicka, 29, of Rocky River, was sentenced to 41 months in prison by U.S. District Judge Dan Aaron Polster. She was also ordered to forfeit two firearms and cash seized during her arrest last year.
Alicka was previously found guilty of possession with intent to distribute MDMA and marijuana.
Alicka and her sister Denisa Alicka engaged in multiple sales of MDMA and marijuana between 2014 and 2016. The Alickas obtained the drugs through Rinald Turhani and Leka Konini, both from Michigan, according to court documents.
Jonida Alicka also obtained MDMA from her boyfriend who in Canada. She also traveled to New York to pick up MDMA and transport it back to Ohio and then distributed the narcotics throughout Ohio, according to court documents.
Turhani was found guilty of drug charges and is serving nine years in prison. Konini and Denisa Alicka have been found guilty of charges and are awaiting sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Marisa T. Darden and Robert F. Corts following an investigation by the FBI, Cleveland Division of Police, Ohio HIDTA, Rocky River Police, Parma Police and U.S. Border Patrol.
Former Groves Apartment Manager Sentenced for Theft from HUDRead the Press Release
BEAUMONT, Texas – A 44-year-old Houston woman has been sentenced for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston.
Nhung Tuyet Nguyen, also known as Sandy Nguyen, pleaded guilty on July 26, 2016, to theft of government property and was sentenced to 22months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, from October 2007 to December 2015, Nguyen was employed by the Beverly Place Apartments in Groves, Texas as an assistant Manager. As part of her job responsibilities, Nguyen assisted potential tenants in applying for U.S. housing and Urban Development (HUD) benefits for rental assistance and utility assistance. The rental and utility assistance programs are designed to help low-income individuals offset housing rental and utility costs with funds provided by HUD. In June 2007, Nguyen began applying for HUD rental assistance and utility assistance benefits without the tenants’ knowledge or consent. As a result, HUD provided funds to Beverly Place Apartments to cover tenants’ monthly rental fees. Nguyen required tenants, who were unaware HUD had already paid their monthly rent, to pay full market price for their apartments in cash or money orders. Nguyen would then take the cash or money orders and use them for her personal benefit. Nguyen enrolled at least five tenants in HUD rental and utility assistance programs without their knowledge. As a result, Nguyen caused a total loss to HUD of $393,583.00 and was ordered to pay that amount in restitution to the agency.
This case was investigated by the U.S. Housing and Urban Development – Office of Inspector General and Homeland Security Investigations. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Former FBI Employee Pleads Guilty to Theft of Government PropertyRead the Press Release
Greenbelt, Maryland – Timothy Carl Johnson, age 52, of Fort Washington, Maryland, pleaded guilty on January 30, 2017, to theft of government property. Johnson, the former automotive fleet program coordinator for FBI Headquarters in Washington, D.C., admitted he falsely reported the cost of automotive and/or towing services, charging the inflated or fictional costs to his government purchase card, and accepted cash payments from vendors to perform work on FBI vehicles.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Michael Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General; and Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division.
According to his plea agreement, Johnson was responsible for maintaining government vehicles for use by employees at FBI Headquarters. As part of his duties, Johnson solicited local vendors to perform routine maintenance, tow, repair and detail work for government vehicles at FBI headquarters. The FBI assigned Johnson a government purchase card that he was authorized to use to pay for work on those vehicles.
Johnson admitted that from 2011 through January 2016, he conspired with others to defraud the government by charging inflated or fictional costs for automotive and/or towing services to his government purchase card. Specifically, co-conspirators who supplied automotive and/or towing services billed the government for fictitious services, or inflated their bills. Johnson then authorized payment to the co-conspirators through his government credit card and the co-conspirators provided the fraud proceeds to Johnson in cash. As part of his plea agreement, Johnson will be required to pay restitution in the full amount of the loss, which is at least $20,995.
Johnson faces a maximum sentence of 10 years in prison. U.S. District Judge Theodore D. Chuang has scheduled sentencing for June 6, 2017 at 2:30 p.m.
United States Attorney Rod J. Rosenstein commended the DOJ Office of the Inspector General, and DEA for their work in the investigation and thanked the FBI, Charles County Sheriff’s Office and Prince George’s County Police Department for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Lindsay Eyler Kaplan, who is prosecuting the case.
Former CWA Local President Pleads Guilty to Embezzlement and Bank FraudRead the Press Release
BIRMINGHAM – A former president of the Communications Workers of America, Local 3901, in Oxford, Ala., pleaded guilty today in federal court to a scheme to embezzle more than $69,000 from the local chapter, announced Acting U.S. Attorney Robert O. Posey and U.S. Department of Labor, Office of Labor-Management Standards, Investigator Hollis Lindley Jr.
MICHAEL LACKEY, 44, of Bremen, Ga., entered his guilty plea to five counts of bank fraud and one count of embezzlement and theft of union funds before U.S. District Judge Virginia Emerson Hopkins. A federal grand jury indicted Lackey in November. As part of his plea, Lackey agreed to repay $69,193 to the union and to forfeit that same amount to the government as proceeds of illegal activity. Lackey is scheduled for sentencing April 25.
Local 3901 members elected Lackey president in October 2008 and he remained in that position until October 2014. As president, Lackey exercised control over the local’s finances, including its accounts at Wells Fargo and Regions banks.
According to his plea agreement with the government, Lackey executed a scheme to defraud the banks and Local 3901 between February 2010 and October 2014 by using his position as Local 3901 president, and acting treasurer, to conduct unauthorized transactions to take money from the CWA local’s bank accounts and use it for his personal benefit. Those transactions included writing checks to himself from Local 3901 accounts for unauthorized or nonexistent travel expenses, using debit cards he obtained on accounts for the local at both Regions and Wells Fargo for personal expenses, and making cash withdrawals from Local 3901 accounts at both banks for his personal use.
The checks he wrote to himself from union funds totaled about $26,519; the cash withdrawals and personal expenditures he made with the union’s debit cards totaled about $14,095; counter cash withdrawals totaled about $16,032; personal power bill payments totaled about $3,092; personal loan payments totaled about $7,201; and accumulated bank fees totaled about $2,251, for a total embezzlement of $69,193, according to the plea agreement.
Lackey attempted to conceal his theft by failing to maintain records of his unauthorized transactions and by failing to seek approval for expenditures, as required by federal law and the Local 3901 constitution and bylaws.
Local 3901 members began to suspect in summer 2014 that Lackey had stolen money from the union when a union check bounced. About the same time, Lackey told a national CWA AFL-CIO representative that he had taken out a personal loan using the union’s bank accounts and assets as collateral, and had failed to make the loan payments, leading the bank to collect from the union’s finances, according to the plea agreement.
The maximum penalty for bank fraud is 30 years in prison and a $250,000 fine. The maximum penalty for embezzlement is five years in prison and a $10,000 fine.
The U.S. Department of Labor, Office of Labor-Management Standards, investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. is prosecuting.
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Florida Man Convicted at Trial of Attempting to Use a Weapon of Mass Destruction and Providing Material Support to ISILRead the Press Release
Harlem Suarez, a/k/a “Almlak Benitez,” 23, of Monroe County, Florida was convicted by a federal jury of attempting to use a weapon of mass destruction, specifically, an explosive device, and providing material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and members of the South Florida FBI-Joint Terrorism Task Force (JTTF).
“Harlem Suarez, a self-professed ISIL adherent, attempted to use a weapon of mass destruction - a backpack bomb - in the United States and now stands convicted of two terrorism offenses,” said Acting Assistant Attorney General McCord. “Stopping attacks on our homeland by those inspired or directed by designated foreign terrorist organizations is the highest priority of the National Security Division. I want to thank the agents, analysts, and prosecutors who are responsible for today’s result.”
“By intending to place an explosive device on a public beach, Harlem Suarez posed a grave threat to the residents and visitors of Key West,” stated U.S. Attorney Ferrer. “It is because of the Joint Terrorism Task Force’s unwavering commitment to our national security that law enforcement is able to prevent potential attacks on American soil that are inspired or directed by terrorist organizations. Let this case serve as an example to others that the U.S. Attorney’s Office and our law enforcement partners stand as a united front against all domestic threats.”
"Suarez wanted to kill innocent people by detonating a nail laced explosive filled backpack on a crowded Key West beach," said Special Agent in Charge Piro. “He was denied his terroristic dreams by several hardworking, dedicated law enforcement organizations and professionals. This is a job well done."
Suarez was convicted at trial of knowingly attempting to use a weapon of mass destruction against a person or property within the U.S., in violation of Title 18, U.S. Code, Section 2332a(a)(2) and providing material support to a terrorist organization, in violation of Title 18, U.S. Code, Section 2339B. Suarez is scheduled to be sentenced by U.S. District Judge Jose E. Martinez in Key West, Florida, on April 18 at 1:30 p.m.
According to evidence introduced at trial, in April 2015, Suarez’s Facebook postings contained extremist rhetoric and promoted ISIL. Evidence further indicated that Suarez told an FBI confidential human source that he wanted to make a “timer bomb.” Suarez purchased components for this device, which was to contain galvanized nails, be concealed in a backpack and be remotely detonated by a cellular telephone. Suarez intended to bury the device at a public beach in Key West and then detonate it.
Trial evidence showed that on July 27, 2015, Suarez took possession of an inert explosive device and was arrested.
Mr. Ferrer commended the investigative efforts of the FBI; FBI-JTTF; Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; the Key West Police Department; Monroe County Sheriff’s Office in Florida; and Palm Beach County Sheriff’s Office in Florida.
This case is being prosecuted by Assistant U.S. Attorneys Marc S. Anton and Karen E. Gilbert, with assistance from the National Security Division’s Counterterrorism Section.
Fayetteville, N.C. Man Sentenced to 8 Years for Failure to Register as A Sex Offender While Committing A Crime of ViolenceRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, Chief United States District Judge James C. Dever, sentenced SHELBY SHERROD PETTIES, 33, of Fayetteville, North Carolina, to 92 months imprisonment followed by 10 years of supervised release.
PETTIES was named in a 3-count Indictment filed on January 7, 2015. On September 12, 2016, he pled guilty to one count of Failure to Register as a Sex Offender While Committing a Crime of Violence.
On October 31, 2005, PETTIES was convicted of Second Degree Child Sex Abuse in the Superior Court of the District of Columbia. This conviction required him to register as a sex offender in the District of Columbia and to notify the District of Columbia Sex Offender Registry (DCSOR) of any address change within three days.
On February 18, 2013, PETTIES was arrested in Fayetteville, on the felonious charges of First Degree Kidnapping and Second Degree Rape, which occurred on February 6, 2013. At the time of his arrest, PETTIES provided a statement admitting that he moved to Fayetteville on August 2, 2012, and that he did not register as a sex offender with the Cumberland County Sheriff’s Office as required. According to the Sex Offender Registration Information Acknowledgement form signed by the defendant, PETTIES was required to notify the DCSOR and the Cumberland County Sheriff’s Office of his departure from the District of Columbia and his arrival in Fayetteville. Therefore, PETTIES committed the crimes of violence of First Degree Kidnapping and Second Degree Rape while in violation of the sex offender registration requirements.
PETTIES received an upward variance due to the additional crimes he committed on February 9, 2013, while in violation status of the sex offender registration requirements, PETTIES kidnapped and assaulted a female victim in his apartment in Fayetteville, North Carolina.
The criminal investigation of this case was conducted by the Fayetteville Police Department, Cumberland County Sheriff’s Office and the United States Marshal Service. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Elkins man convicted for methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – David Maxwell, 31, of Elkins, West Virginia pled guilty to methamphetamine distribution today, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Maxwell pled guilty to one count of “Distribution of Methamphetamine.” He faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Eight people sentenced to prison for penny-stock fraud that resulted in $39 million loss to investorsRead the Press Release
Eight people were sentenced to prison this month for their roles in a penny-stock fraud that resulted in a $39 million loss to investors, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Zirk de Maison, of Redlands, California, was sentenced to more than 12 years in prison and ordered to pay $39.1 million in restitution.
Stephen Wilshinsky, of Woodland Hills, California, was sentenced to nearly three years in prison and $4.2 million in restitution.
Talman Harris, of Monroe, Connecticut, after a jury convicted him on all counts following a three-week trial, was sentenced to more than five years in prison and $843,423 in restitution.
Gregory Goldstein, of Stevenson Ranch, California, was sentenced to nearly three years in prison and $6.3 million in restitution.
Jack Tagliafero, of Glen Cove, New York, was sentenced to more than five years in prison and more than $5 million in restitution.
Victor Alfaya, of Port Washington, New York, was sentenced to nearly two years in prison and $3.6 million in restitution.
Kieran Kuhn, of Port Washington, New York, was sentenced to nearly four years in prison and $5.6 million in restitution.
William Scholander, of Queens, New York, was sentenced to nearly two years in prison and $843,423 in restitution.
Two additional co-conspirators have their sentencings scheduled for February and July 2017.
de Maison and the other defendants conspired to defraud investors and potential investors in several public issuers, including Kensington Leasing, Ltd., Lenco Mobile, Casablanca Mining, Ltd., Lustros, Inc., and Gepco Ltd., (the manipulated companies), by issuing millions of shares to themselves at little or no cost and then artificially controlling the price and volume of traded shares by, among other means, paying undisclosed commissions to brokers, former brokers, and boiler-room operators and promoters, for soliciting investors to make investments in, and fraudulently concealing the ownership interests of, the manipulated companies, according to court documents.
Little or no portion of the investments went to fund the operations of the manipulated companies. Rather, de Maison and the co-conspirators used most of the investments to enrich themselves, according to court documents.
For each of the manipulated companies, de Maison and other co-conspirators controlled a substantial number of outstanding shares through their personal companies, co-conspirators, and associates over which they had influence and control.
Many of the defendants were brokers and former brokers who abused their client relationships to solicit and induce investors to purchase de Maison’s stock in the manipulated companies at what they knew to be artificially inflated values. In exchange, de Maison paid the brokers and former brokers enormous, illegal kickbacks, often as large as 50% of the investment, which were never disclosed to the client-investors.
Other defendants either owned or worked in what were commonly referred to as boiler rooms. For instance, Kuhn owned and operated a boiler room called Small Cap Resources in New York City, where he employed promoters to cold call and solicit potential investors to purchase shares of the manipulated companies. de Maison and others dictated what stocks Kuhn and others pushed. The cold calls to potential investors typically coincided with favorable press releases or other information that de Maison caused to be released, according to court documents.
Kuhn and others touted the manipulated companies using high-pressure sales tactics and misrepresentations about the value of the companies and their stock. The boiler room promoters did not disclose that de Maison and other co-conspirators paid them commissions on the sale of the stock to the investors, either on the open market or through private placements, according to court documents.
de Maison and his co-conspirators caused more than $54 million to be invested in the purchase of stock in the manipulated companies and caused a loss to investors in the amount of approximately $39 million from the scheme. de Maison profited through the fraudulent scheme relating to the companies’ stocks. He received and embezzled approximately $39 million in investor monies, according to court documents.
The case was prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, Paul M. Flannery, and Adam Hollingsworth after an investigation by agents of the Federal Bureau of Investigation.
Eagle Butte Woman Charged with Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Rheta Haskell, a/k/a Rheta Miner, age 37, was indicted on January 19, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 30, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 8, 2016, Haskell unlawfully assaulted a female who suffered serious bodily injury.
The charges are merely accusations and Haskell is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Haskell was released on bond pending trial, which has been set for April 4, 2017.
Dover Man Pleads Guilty to Migratory Bird Possession ChargeRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice, announced that Jeremiah S. Loui pleaded guilty in federal court to a misdemeanor charge of illegally possessing and selling a bird of prey protected by the Migratory Bird Treaty Act. Loui, thirty-one years old, lives in Dover, N.H.
According to court documents and statements made during today’s hearing, Loui sold a taxidermied Accipiter gentilis, commonly known as a Northern Goshawk, on the internet. He also sold or possessed fourteen other taxidermied birds of prey protected under either the MBTA or a similar wildlife statute, the Wild Bird Conservation Act. Loui made false statements to a law enforcement officer investigating his offenses.
Birds of prey, including the Northern Goshawk, play an important role in ecosystems here in the United States and across the globe. "This investigation demonstrates the commitment of the U.S. Fish and Wildlife Service to combat illegal wildlife trafficking and bring to justice those who exploit protected resources for personal gain” said Honora Gordon, Special Agent in Charge with the U.S. Fish and Wildlife Service.
United States Magistrate Judge Andrea K. Johnstone accepted Loui’s guilty plea and scheduled his sentencing for May 9, 2017. He is subject to a statutory maximum sentence of six months’ imprisonment, a fine of up to $15,000 or both. As part of his plea agreement, Loui agreed to forfeit any interest he has in any of the fifteen protected birds.
This matter was investigated by the U.S. Fish and Wildlife Service with valuable support from the U.S. Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Bill Morse.
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Devils Lake Man Sentenced for Child PornographyRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on Jan. 30, 2017, Michael Erik Lindseth, 44, Devils Lake, ND, was sentenced before US District Judge Ralph R. Erickson to serve 10 years and 3 months in prison, followed by 5 years of supervised release for Receipt and Possession of Child Pornography. Judge Erickson also ordered Lindseth to pay a $500 special assessment to the Crime Victims’ Fund, as well as $1,000 in restitution to a victim depicted in the child pornography possessed by Lindseth.
This case came to the attention of law enforcement after it discovered that Lindseth was utilizing a sophisticated network of computers to anonymize his internet protocol (IP) address while trading child pornography at his residence in Devils Lake. Based upon this information, law enforcement executed a search warrant at his residence on December 22, 2014, during which time they recovered numerous electronic storage devices. A forensic examination of this media revealed more than 19,000 files of child pornography.
A Federal Grand Jury later charged Lindseth with various child pornography charges and he was released pending trial. On October 17, 2015, Lindseth removed his electronic home monitoring bracelet and left the state of North Dakota. Five months later, in March 2016, Lindseth was arrested in Tempe, Arizona, following a traffic stop of his vehicle.
This case was investigated by the Department of Homeland Security – Homeland Security Investigations and the North Dakota Bureau of Criminal Investigation.
Assistant US Attorney Jennifer Puhl prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Cupertino Couple Sentenced to More Than Five Years in Prison for Wire Fraud, Identity TheftRead the Press Release
SAN JOSE – Yujen Chen and Maria Chen were sentenced yesterday to 75 months in prison and 64 months in prison, respectively, announced United States Attorney Brian J. Stretch, Internal Revenue Service Special Agent in Charge Michael T. Batdorf, FBI Special Agent in Charge John F. Bennett, and U.S. Customs and Border Protection Director of Field Operations Brian J. Humphrey. The sentences follow the December 17, 2015, guilty pleas entered by the married couple in which they admitted committing aggravated identity theft and conspiring to commit wire fraud in connection with their ownership of the Sunnyvale auto dealership 888 Auto Corporation.
According to their guilty pleas, Yujen Chen, 61, and Maria Chen, 59, both of Cupertino, used their automotive business to fraudulently lease luxury vehicles, including vehicles from Porsche, Mercedes-Benz, Audi, BMW, and Toyota, and then to export those vehicles abroad. As part of the scheme, the Chens recruited friends and associates to serve as lessees on the vehicles and sometimes paid these people $500 to lease cars on the Chens’ behalf. The Chens promised the lessees that they would assume the lease payments and that the lessees would not be financially responsible for the lease. However, once the Chens convinced the person to sign the lease arrangement and the lessees turned the vehicles over to the Chens, the Chens typically made only initial payments to the automotive finance companies on behalf of the lessees. Then, as a part of the scheme, the Chens would identify foreign purchasers for the leased vehicles. The Chens admitted they falsified DMV paperwork reflecting a transfer of title from the financing company or lessor to an entity owned or controlled by the Chens. The title transfer allowed the Chens to then forward the vehicle to a freight forwarder for the purpose of exporting the car to a foreign buyer. As a part of the scheme, the Chens also provided or caused to be provided customs paperwork to a freight forwarder that included a fraudulently obtained, or “washed,” DMV title. The Chens eventually caused the leased vehicles to be shipped abroad, then ceased making the financing payments on the leased vehicles, leaving the nominal lessees with a broken lease and no car.
In the latter stages of the scheme, the Chens expanded the scope of their illegal conduct by using stolen identities. Specifically, the Chens collected money and personal identifying information from individuals who had come into their business expressing interest in making a legitimate vehicle purchase. Then, instead of providing dealers the money received from the persons for the vehicles, the Chens simply kept the purchase money provided by the victims for themselves. Moreover, the Chens misappropriated the personal identifying information of these individuals in order to gain possession of cars using fraudulent leases or finance agreements. The vehicles were then exported using the same title washing, and exporting techniques.
The defendants were originally charged in a 24-count indictment filed November 20, 2013. They each pleaded guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1343, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A. As part of the plea agreement, the government agreed to dismiss the remaining open charges at the time of sentencing.
The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge. Judge Davila also imposed a term of three years supervised release on each defendant. Judge Davila set a further restitution hearing in the case for March 2, 2017, at 1:30 p.m. for the purpose of considering an appropriate order of restitution for the individual and corporate victims in the case. The defendants currently are out of custody on bond.
Assistant United States Attorneys Daniel Kaleba and Jeffrey Nedrow are prosecuting the case with the assistance of Susan Kreider and Laurie Worthen. The prosecution is the result of an investigation by the Internal Revenue Service, the Federal Bureau of Investigation, the United States Customs and Border Protection, the California Department of Motor Vehicles, and the California Highway Patrol.
Convicted Felon Sentenced to 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Jamarian Oliver (29, Tampa) to 15 years in federal prison for selling crack cocaine and possessing a firearm as a convicted felon. He pleaded guilty on August 5, 2016.
According to court documents, in October 2015, detectives from the Hillsborough County Sheriff’s Office (HCSO) began investigating Oliver. On two separate occasions in October and November 2015, Oliver sold crack cocaine to a HCSO undercover detective (UC). In December 2015, Oliver again met with the UC and sold him a .22 caliber firearm. At the time of the offenses, Oliver had multiple prior felony convictions, including possession of cannabis, fleeing to elude, and delivery of a controlled substance, and was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Shauna S. Hale.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime in communities.
Conspirators Sentenced to Nearly Five Years for Identity Theft and Unemployment Insurance Fraud SchemeRead the Press Release
A Detroit man was sentenced today for conspiring to steal identities and unemployment benefits, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by James Vanderberg, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General, and Wanda Stokes, director, of the Michigan Talent Investment Agency which administers the Unemployment Insurance program
Joel Randall Driscoll, 27, was sentenced to 57 months for conspiracy to commit mail fraud and aggravated identity theft. The aggravated identity theft charge carries a mandatory two-year sentence, which is imposed consecutively to the sentence for other crimes.
According to the indictment, Driscoll, along with co-conspirators Lashea Catrice Scott, Grady Whitaker, Jr., Devonte Cook, Deonta Holley and Terence Gould, devised and executed a scheme to defraud and obtain public money from the State of Michigan Unemployment Insurance program from January 2012 to December 2015. Michigan unemployment benefits, which are funded by employers and the U.S. Department of Labor, are paid to individuals who are unemployed. As part of the conspiracy, the defendants stole the identities of unsuspecting individuals and applied for benefits in their names. The benefits were issued on debits cards, which the defendants used at automated teller machines across Detroit to access the unemployment insurance benefits for personal use. The conspiracy involved the stolen identities of hundreds of individuals and resulted in losses to the government of more than $400,000.
“These criminals not only stole funds from the state, but they also stole money from the pockets of the unemployed workers for whom the benefits were intended by committing identify fraud.” McQuade said.
“Joel Driscoll victimized individuals by stealing their identities, and defrauded the Michigan Unemployment Insurance program of more than $400,000 intended for American workers in need of relief from the financial effects of unemployment. We will continue to work with our law enforcement partners to safeguard the Unemployment Insurance Program,” stated James Vanderberg, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
Co-conspirator Grady Whitaker, Jr. was sentenced to 68 months in custody on December 12, 2016 for his role in the conspiracy and the aggravated identity theft. The remaining defendants have all entered pleas to various charges and are awaiting sentencing.
The case was investigated by U.S. Department of Labor – Office of Inspector General in conjunction with the State of Michigan – Unemployment Insurance Agency and prosecuted by Assistant United States Attorneys Erin J. Hendrix and Brandy R. McMillion.
Chicago Man Sentenced to 90 Months on Heroin and Firearms ChargesRead the Press Release
CHATTANOOGA, Tenn. – On Jan. 27, 2017, Cornelius Q. Hill, 29, of Chicago, was sentenced to 90 months in prison by the Honorable Travis R. McDonough, U.S. District Judge, for possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. Hill pleaded guilty to these charges, contained in a federal indictment, in October 2016.
According to information on file with the U.S. District Court, in August 2016 Drug Enforcement Administration (DEA) Special Agents seized approximately 40 grams of heroin and a loaded firearm from a hotel room Hill was using in Chattanooga. Hill admitted the heroin and firearm were his and that he was sent down to Chattanooga from Chicago to sell heroin for the Vice Lords, a violent street gang based out of Chicago.
Hill’s sentence reflected the danger and risk of harm his conduct posed to society. The United States asked the court to impose a sentence that would deter future drug dealers from Chicago and elsewhere from traveling to the Eastern District of Tennessee to sell their drugs.
The indictment and subsequent conviction of Hill was the result of an investigation conducted by the DEA. Assistant U.S. Attorney Michael D. Porter represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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California Man Pleads Guilty to Illegally Importing Chinese CigarettesRead the Press Release
A Los Angeles, California man pleaded guilty yesterday to illegally engaging in the business of importing tobacco products, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Eileen M. Decker for the Central District of California.
Zhi Xiong Chen, 56, of Chinatown, admitted that for nearly five years, despite not holding a permit to import tobacco products, he used several addresses to receive 15,128 cartons of Chinese-brand cigarettes. During this time, U.S. Customs and Border Protection officers also stopped approximately 9,824 cartons of Chinese-brand cigarettes at international mail facilities in California and New York.
As part of the scheme, Chen admitted that he attempted to evade paying more than $467,000 in federal and state excise taxes on the cigarettes that he illegally imported.
“While Zhi Xiong Chen was illegally importing tens of thousands of cartons of cigarettes into the United States, he was also evading hundreds of thousands of dollars in taxes due on those cigarettes,” said Acting Deputy Assistant Attorney General Goldberg. “Importers who obtain the required permits and pay their fair share of taxes deserve to compete on a level playing field. Those who try to cut corners and skirt these legal obligations should know that they will be investigated and prosecuted.”
“From early 2011 until mid-2016, this defendant illegally imported thousands of cartons of Chinese-made cigarettes without the necessary permits and without paying excise taxes,” said U.S. Attorney Decker. “The defendant’s crime not only cheated taxpayers, but also caused unregulated, potentially dangerous products to be sold to an unsuspecting public.”
Sentencing is scheduled for April 17. Chen faces a statutory maximum penalty of five years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Decker thanked special agents of IRS–Criminal Investigation, the Alcohol and Tobacco Tax and Trade Bureau, and the U.S. Food and Drug Administration’s Criminal Investigations, who conducted the investigation, and Assistant U.S. Attorney Valerie L. Makarewicz and Trial Attorney Christopher S. Strauss of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Cabot Man and Former Federal Employee Pleads Guilty to Conflict of Interest Regarding USDA ContractsRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Larry Dale Dunkin, 64, of Cabot, pleaded guilty to an Indictment charging him with conflict of interest. Dunkin, a former federal contracting officer for the United States Department of Agriculture (USDA), Natural Resources Conservation Service (NRCS) personally benefited from contracts he awarded to a company in which his wife had a direct financial interest.
Today’s plea hearing took place in Little Rock before Chief United States District Judge Brian S. Miller, who will sentence Dunkin at a later date.
The NRCS, formerly known as the Soil Conservation Service, is an agency of the USDA that provides technical assistance to farmers and other private landowners and managers. It is a relatively small agency, with a mission to improve, protect, and conserve natural resources on private lands through a cooperative partnership with state and local agencies.
During today’s change of plea hearing, Dunkin admitted that in March 2013 he knowingly and willfully awarded a $22,500 contract to Young Enterprises, LLC, a company in which his wife had a direct financial interest. Multiple records indicate that Dunkin’s wife was a part-owner of the company, and the mailing address for Young Enterprises, LLC, on file with the Secretary of State was the same address as the residence of Dunkin and his wife.
Upon Young Enterprise’s completion of the contract, the USDA transferred approximately $22,500 into a bank account jointly owned by Dunkin and his wife.
The statutory penalty for Title 18, United States Code, Section 208, "Acts Affecting a Personal Financial Interest," more commonly known as "conflict of interest," is not more than five years’ imprisonment, not more than three years of supervised release, a fine of not more than $250,000, and a $100 special assessment.
The investigation was conducted by the USDA–Office of Inspector General and is being prosecuted by Assistant United States Attorney Hunter Bridges. If you have knowledge of or suspect fraud related to USDA programs, you may submit online at https://www.usda.gov/oig/hotline.php.
Buffalo Man Sentenced for Food Stamp FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Shuja Alawdi, 40, of Buffalo NY, who was convicted of unauthorized use of food stamp benefits, was sentenced to six months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $124,406.
Assistant U.S. Attorneys Stephanie Lamarque and Scott S. Allen, who handled the case, stated that the defendant participated in the operation of the Bailey Food Mart, located at 3209 Bailey Avenue, Buffalo, NY. Between July 2010 and August 2011, the defendant, and others, knowingly purchased, for cash, food stamp benefits for less than their full value from eligible beneficiaries. Retailers are prohibited from exchanging cash for food stamps. During that time period, the defendant and others exchanged approximately $124,406 of food stamp benefits for cash.
The sentencing is the culmination of an investigation by the United States Department of Agriculture, Office of Inspector General, under the direction of Special Agent-in-Charge William G. Squires Jr. and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly.
Bronx Teacher Charged with Animal Welfare Violations for Cockfighting VentureRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Bethanne M. Dinkins, Special Agent-in-Charge of the U.S. Department of Agriculture, Office of Inspector General (“USDA-OIG”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced that HECTOR M. CRUZ was arrested today for possessing, selling, and transporting roosters for purposes of participation in animal fights around the United States. The defendant is expected to be presented today in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Hector Cruz ran a cruel and illegal business of raising and selling roosters for the purpose of vicious cockfights where knives and other sharp instruments are attached to the fighting roosters’ legs. Thanks to the work of the U.S. Department of Agriculture, Office of the Inspector General and the NYPD, Cruz’s days of allegedly profiting from this inhumane business are over.”
Special Agent-in-Charge Dinkins said: “The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling. Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
NYPD Commissioner James P. O’Neill stated: “Cockfighting often leads to the cruel killing of roosters. Hector Cruz’s arrest will stop the breeding and training of roosters for cockfighting at his facility in the Bronx.”
According to the allegations in the Complaint unsealed today in Manhattan federal court[1]:
Cockfighting is an activity in which knives, gaffs, or other sharp instruments are attached to the legs of roosters for the purpose of fighting each other. The fights between roosters end when one rooster is dead or refuses to continue to fight. If not killed during the fight, the losing rooster is typically killed afterwards. Roosters involved in cockfighting will often be mutilated in preparation for fights, typically by cutting off the rooster’s comb and wattle and shaping the rooster’s spur. Individuals who breed roosters for cockfights often cross-breed particular types of roosters in order to produce hybrid breeds that will excel as fighters.
From December 2012 up to January 2017, HECTOR M. CRUZ, a New York City public school teacher, maintained a rooster farm at a location in the Bronx, where he bred, raised, and trained roosters for cockfighting. CRUZ sold and shipped his roosters to individuals across the country, knowing that the birds were intended for cockfights. CRUZ communicated with customers through social media and received payments of as much as $600 for fighting birds.
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CRUZ, 59, of the Bronx, New York, is charged with selling, possessing, and transporting animals for purposes of participation in an animal fight, which carries a maximum penalty of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the USDA-OIG and the NYPD Animal Cruelty Investigation Squad and thanked them for their ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant U.S. Attorneys Michael C. McGinnis and Alison G. Moe are in charge of the case.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Bland, Missouri Man Sentenced on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – George Patterson, Bland, MO, was sentenced to 121 months in prison on charges of possession of child pornography.
According to court documents, in December 2015 and January 2016, the Missouri Internet Crimes Against Children (MOICAC) Task Force received a tip that an email address, later found to belong to George Patterson, uploaded suspected child pornography images to a Google Plus photos account. On April 27, 2016, a federal search warrant was executed in Bland, Missouri. On scene forensics of Patterson’s cell phone revealed approximately 3,000 images of child pornography and child erotica.
Patterson pled guilty in November to one felony count of possession of child pornography. He appeared today for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by the Missouri Internet Crimes Against Children (MOICAC) Task Force and the Federal Bureau of Investigation. Assistant United States Attorney Rob Livergood handled the case for the U.S. Attorney’s Office.
Bailey Boys Gang Member Sentenced for His Role in Two MurdersRead 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 Tyrone Brown, 25, of Buffalo, NY, who was convicted of RICO Conspiracy in connection with two deadly shootings, was sentenced to 264 months in prison by Senior U.S. District Judge William M. Skretny.
According to Assistant U.S. Attorney Meghan A. Tokash, who handled the prosecution of this case, Brown was a member of the Bailey Boys Gang, a violent criminal gang which operates in an area of the City of Buffalo bounded by Winspear Avenue, the Kensington Expressway, Eggert Road and Main Street.
Through the course of the conspiracy of which he was convicted, defendant committed he following acts:
• On January 11, 2011, the defendant shot and killed Harold McCain inside a store on Genesee Street in Buffalo.
• On June 14, 2011, defendant shot and killed Kevin Wilkins in a drive-by shooting on Minnesota Avenue in Buffalo.
• On November 9, 2011, the defendant, co-defendant Eddie Allen, and other members of the Bailey Boys Gang robbed several people at a house party on Rounds Avenue in Buffalo, and during the course of those robberies, defendant participated in the attempted murder of Omego Stafford who was shot and wounded.
• On June 28, 2011, defendant and other co-defendants went to Shirley Avenue in Buffalo and opened fire on rival gang members. One person was shot and wounded.
• Between 2004 and April 23, 2013, defendant and other members of the Bailey boys Gang distributed cocaine in the territory controlled by the gang.
• As a result of the ongoing investigation into the Bailey Boys Gang, its members now stand accused of 4 murders, 14 attempted murders—including four drive-by shootings. The attempted murders include a shooting that occurred during a neighborhood party with numerous children present and a shooting that occurred during a robbery. A total of 11 were arrested, and to date, 8 defendants have been convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentence is the result of an ongoing investigation on the part of the United States Attorney’s Office in close cooperation with the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn; the Buffalo Police Department, under direction of Police Commissioner Daniel Derenda; the Federal Bureau of Investigation’s Safe Streets Task Force, under the Direction of Special Agent in Charge Adam S. Cohen; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy B. Howard; the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.15 Alleged Members of Drug Trafficking Organization IndictedRead the Press Release
Jackson, TN – Fifteen alleged members of a drug trafficking organization responsible for distributing cocaine and marijuana throughout West Tennessee have been indicted on federal charges. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee; Michael T. Gavin, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation (FBI); Steve Isbell, Chief of Police for the Dyersburg Police Department; and Christopher Wiser, Chief of Police for the Jackson Police Department, announced the indictment today.
"As the indictment alleges, these 15 individuals decided to traffic illicit narcotics throughout our district as a means to fatten their pockets," said U.S. Attorney Stanton. "Law enforcement has no tolerance for the distribution of illegal drugs, and this indictment serves as a reminder that we will keep pursuing those suspected of poisoning our community."
On Tuesday, January 31st, 12 of the defendants were taken into custody by federal, state and local law enforcement officials. Three of the defendants were already incarcerated on unrelated charges.
The following defendants have been indicted for conspiracy to distribute and possess with the intent to distribute cocaine, cocaine base and marijuana:
• Anthony Lamont Adams, 41, of Obion County
• James Williams Ayers, 51, of Shelby County (Already in Federal Custody)
• Joaquian Jonulle Bowen, 30, of Dyer County
• Edrik Deon Fason, 34, of Madison County (Already in Federal Custody)
• Derrick Shawen Fields, 36, of Dyer County
• L.C. Gills Jr., 48, of Dyer County
• Monteith Alvarez Haley, 37, of Dyer County
• Charlie Dwayan Hartshaw, 35, of Madison County
• Demonta Darnell Henning, 25, of Dyer County
• Paul Montrale Isom, 30, of Dyer County
• Joseph Deangelo Lee, 44, of Dyer County
• Billy Joe Liggon Jr., 40, of Madison County (Already in Federal Custody)
• Bobby Charles McElrath, 54, of Dyer County
• Kenneth Wayne Patrick, 38, of Dyer County
• Jermaine B. Temple, 38, of Madison CountyAccording to the indictment, between June and December 2016, the defendants conspired with each other to distribute and possess with the intent to distribute powder cocaine, crack cocaine, and marijuana. The defendants allegedly aided and abetted each other during the commission of the aforementioned crime.
During the course of its investigation, law enforcement officials seized illicit narcotics, drug paraphernalia, firearms, and drug proceeds. Additional firearms were recovered during Tuesday’s round-up.
"Gang-related drug activity tears at the fabric of our communities, as gang members peddle poison and innocent people are caught in the violence and related crimes that accompany the drug trade," said Gavin, Special Agent in Charge for the FBI’s Memphis Field Office. "Today's arrests demonstrate the commitment of the FBI and our law enforcement partners to root out those who seek to prey on the public, and to stamp out the organizations that ruin so many lives."
"I am very proud of the Street Crimes Unit, and appreciate their dedication and hard work removing dangerous individuals from our community," said Dyersburg Police Chief Isbell. "They worked many long hours and were aided by other members of the police department’s patrol and criminal investigation division. Officers on the Street Crimes Unit are also members of the FBI’s Safe Streets Task Force. This partnership allows us to combine resources to make all of West Tennessee a safer place."
"We want the citizens of Jackson and West Tennessee to be confident in our departments’ commitment to relentlessly and aggressively pursuing criminals who engage in poisoning our community by pushing and selling drugs in West Tennessee," stated Jackson Police Chief Wiser. "Criminals do not stop at city limit signs and neither do we. The Jackson Police Department values our working relationship with our federal law enforcement partners which often bridge the gap between local jurisdictions. Because drugs are the root cause of so many of the crimes committed in our area, we are determined to focus our attention and resources on those with criminal intent to destroy our community. We appreciate the likeminded efforts of the FBI and the Dyersburg Police Department in this case and you can be assured that these types of enforcement actions will continue as long as needed to combat the drug problems in our streets."
All 15 defendants face up to 20 years in federal prison and fines of up to $1 million for both the conspiracy and aiding and abetting charges.
Isom is charged with an additional count of distribution and possession with the intent to distribute marijuana. He faces up to five years and a fine of up to $250,000 for the charge.
Haley is charged with three additional counts of distribution and possession with the intent to distribute cocaine. He faces up to 20 years and a fine of up to $1 million for each charge.
Fason is charged with an additional count of possession with the intent to distribute cocaine and methamphetamine. He faces a mandatory minimum sentence of five years and a fine of up to $5 million.
Ayers is charged with felony possession of multiple firearms and ammunition. He faces up to 10 years and a fine of up to $250,000 for the charge.
The case is being investigated by the FBI’s Memphis Safe Streets Task Force. The Task Force is comprised of agents from the FBI Memphis Division’s Jackson Resident Agency, the Dyersburg Police Department, the Jackson Police Department, the Lexington Police Department, and the 24th Judicial District Drug Task Force.
Assistant U.S. Attorney Matt Wilson is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Monday 30 January 2017
“2fly” Gang Leader Pleads Guilty to Racketeering and Firearms ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LAQUAN PARRISH, a/k/a “MadDog,” a/k/a “Quanzaa,” pled guilty today to racketeering and firearms charges in connection with his leadership of the “2Fly YGz” (“2Fly”) gang, a violent street gang that operated in and around the Eastchester Gardens public housing development (“ECG”) in the Bronx. As part of his guilty plea, PARRISH admitted his involvement in a shootout with rival gang members on August 7, 2012, during which three victims – including a 14-year-old girl caught in the crossfire – were shot in a Bronx park. PARRISH faces a maximum term of life in prison, and will be sentenced before United States District Judge Lewis A. Kaplan on May 10, 2017, at 3:00 p.m.
U.S. Attorney Preet Bharara said: “For far too long, Laquan Parrish and his cohorts with the 2Fly street gang terrorized the Bronx with violence, robberies, and drug dealing. Today’s guilty plea by one of 2Fly’s leaders, Laquan Parrish, to federal firearms and racketeering charges, including an admission to a shootout in which a 14-year old girl and two others were shot in a Bronx park, makes the community around Eastchester Gardens safer. That is why we bring these cases – to make our neighborhoods free from gang violence and drugs – and that is what today’s plea helped achieve.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
PARRISH was a leader of 2Fly, a subset of the “Young Gunnaz,” or “YGz” street gang, which operates throughout New York City. 2Fly is based in the Bronx, within and around ECG and in an area called the “Valley” or the “V,” which is in the vicinity of Gun Hill Road. ECG is a rectangular complex of residential buildings bordered by Burke, Adee, Yates, and Bouck Avenues, in the middle of which is a playground. The gang war between 2Fly and rival street gangs has led to an enormous amount of fatal and non-fatal violence between 2007 and 2016 in the Northern Bronx, including shootings, stabbings, slashings, beatings, and robberies. Members and associates of 2Fly controlled the narcotics trade at ECG, which took place in the open air at the playground and in apartments at ECG. 2Fly primarily sold marijuana and crack cocaine, but also sold powder cocaine and prescription pills, such as oxycodone. 2Fly members and associates stored guns at the playground or in nearby apartments or cars in order to protect the narcotics business and for protection against rival gangs.
As part of his involvement in 2Fly, PARRISH participated with other 2Fly members in a shootout with rival gang members on August 7, 2012, in a public park in the Bronx. Three victims were shot, including a 14-year-old girl caught in the crossfire.
PARRISH was arrested in this case as a result of a multi-year investigation by the New York City Police Department’s Bronx Gang Squad (the “Bronx Gang Squad”), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Violent Gang Unit (“HSI”), the New York Field Division of the Drug Enforcement Administration (“DEA”), and the Joint Firearms Task Force of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) into gang violence in the Northern Bronx. On April 27, 2016, the Indictment was unsealed, charging 57 members and associates of 2Fly with racketeering conspiracy, narcotics conspiracy, narcotics distribution, and/or firearms charges. To date, 42 of these defendants have pled guilty.
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PARRISH, 27, of the Bronx, New York, was brought from state custody into federal custody on April 27, 2016. PARRISH pled guilty today to one count of racketeering conspiracy, which carries a maximum sentence of life in prison, and one count of firearms possession, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of life in prison. The mandatory minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the defendant’s sentence will be determined by the judge.
Mr. Bharara praised the outstanding work of the NYPD’s Bronx Gang Squad, HSI, DEA, and ATF.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Rachel Maimin, Micah W.J. Smith, Hagan Scotten, Jessica Feinstein, and Drew Johnson-Skinner are in charge of the prosecution.
Woman Charged with Conspiracy and Wire Fraud Involving the Theft of $215,000 from Two Health Care ProvidersRead the Press Release
TALLAHASSEE, FLORIDA – Melissa Moniz, 44, of Marianna, was arraigned today in the U.S. District Court in Tallahassee after a federal grand jury returned an indictment charging her with conspiracy to commit wire fraud and nine counts of wire fraud. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that, between 2006 and 2014, Moniz controlled entities known as Billing and Collection Services and Billing and Collection Services, LLC (collectively “BCS”), which purportedly conducted collections work for health care providers. Moniz is charged with fraudulently obtaining money from Gynecology and Obstetrics Associates in Tallahassee for collections services that were never performed. Additionally, Moniz, is alleged to have made false statements in connection with her application for employment as the director of physician practices with the Jackson County Hospital. The indictment charges that Moniz used her position at Jackson County Hospital to induce the hospital to hire BCS for collections services and that Moniz concealed the fact that she both controlled BCS and was personally receiving the payments the hospital made to BCS. Moniz is alleged to have fraudulently obtained $215,766.68 from her scheme to defraud the two businesses.
The trial is scheduled for March 13, 2017.
This case resulted from an investigation by the Federal Bureau of Investigation and the Leon County Sheriff’s Office. Assistant United States Attorney Stephen M. Kunz is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer(850) 216-3854, [email protected]
Wise County Man Sentenced for Having Minor Attend a Cock Fight, Other ChargesRead the Press Release
Abingdon, VIRGINIA – A Pound, Virginia man, who brought a minor to a cockfight, distributed hydrocodone and conspired with others to facilitate cockfighting, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, Acting United States Attorney Rick A. Mountcastle announced.
Russell D. Peaks, 40, of Wise County, Virginia, previously pled guilty for his role in cockfighting at the Big Blue Sportsmen’s Club “Big Blue” in McDowell, Kentucky, including allowing a minor to be present at a cockfight, distribution of hydrocodone, and conspiring to facilitate cockfighting. Today in District Court, Peaks was sentenced to 24 months in federal prison.
According to evidence presented at previous hearings, Peaks raised fighting roosters at his home in the Pound, Virginia, area. He then took those birds to fight at Big Blue in McDowell, Kentucky. Peaks also fought birds in the Pound area. On one such occasion, Peaks allowed a minor to attend the fight. In 2014, Congress made it a felony to allow a minor to attend an animal fighting venture, which includes cockfighting. Peaks also sold hydrocodone to an undercover officer.
Five individuals previously convicted for their role at Big Blue were sentenced to terms of imprisonment ranging from 6 to 18 months. Another defendant, Jimmy Crate Willis, has signed a plea agreement and intends to plead guilty in the near future. The two remaining defendants are scheduled for trial at the Federal Courthouse in Big Stone Gap on December 12, 2016.
Assistant United States Attorney Randy Ramseyer and Special Assistant United States Attorney/Virginia Assistant Attorney General Michelle Welch are prosecuting these cases on behalf of the United States. The case is being investigated by the United States Department of Agriculture – Office of Inspector General, the Virginia Alcohol Beverage Control Bureau of Law Enforcement, and the Spotsylvania County Sheriff’s Office. In addition, the following agencies assisted in the arrests or related proceedings: Virginia Animal Fighting Task Force; Virginia State Police Tactical Team; Southwest Virginia Regional Task Force; Botetourt County Commonwealth’s Attorney’s Office; Wise County, Virginia, Sheriff’s Office and Commonwealth’s Attorney’s Office; Virginia State Veterinarian’s Office; United States Homeland Security Investigations; Kentucky State Police; the United States Attorney’s Office for the Eastern District of Kentucky; and the American Society for the Prevention of Cruelty to Animals.
Williamsburg Man Sentenced to Prison for Child PornographyRead the Press Release
NORFOLK, Va. – Edward Joseph Matish III, 25, of Williamsburg, was sentenced today to 40 months in prison for accessing with intent to view child pornography involving a prepubescent minor. Matish was also sentenced to 10 years of supervised release following his release from prison.
Matish pleaded guilty on Oct. 18, 2016. According to court documents, Matish was a member of Playpen, a hidden website dedicated to the sharing of child pornography that operated on the Tor network from August 2014 until March 2015. Between October 2014 and March 2015, Matish logged into Playpen and viewed content depicting the sexual exploitation of children. In December 2014, Matish wrote on the site that he used it to control his attraction to young girls, encouraging others like him to “[l]eave the touching to the brave souls willing to risk everything for our relief.”
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Kaitlin C. Gratton prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-16.
Wichita Man Pleads Guilty in Jewelry Store Robbery and Bank RobberyRead the Press Release
WICHITA, KAN. B A Wichita man who held a jewelry store owner at gunpoint pleaded guilty Monday in that incident and a separate bank robbery, U.S. Attorney Tom Beall said.
Terence L. Thomas, 25, Wichita, Kan., pleaded guilty to one count of brandishing a firearm during the jewelry store incident and one count of bank robbery.
In the jewelry store incident, Thomas admitted he had a knife when he approached the owner of Kim Chee Jewelry at 2038 N. Broadway as the owner and his wife arrived for work. The owner drew a handgun in self-defense. The two men wrestled and shots were fired before Thomas got the gun. He forced the owner to open the door to the business. When Thomas tried to drag the owner’s wife into the business, she fell to the ground, feigning a heart attack. Thomas fled the scene after the owner locked him out of the business. A witness took photos of Thomas’ car as he fled, which helped police to identify Thomas and arrest him.
In a separate incident a month earlier, Thomas robbed the Fidelity Bank at 3525 E. Harry. He told the teller, “This is a robbery,” and counted down from twenty while the teller put cash in his bag. He fled the bank with the money.
Sentencing is set for April 19. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the bank robbery count, and a penalty of not less than seven years (consecutive) and a fine up to $250,000 on the charge of brandishing a firearm during a robbery. Beall commended the Wichita Police Department, FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Wall Street Investment Analyst Found Guilty in Manhattan Federal Court of Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOHN AFRIYIE, a former analyst at the Manhattan-based private investment fund (the “Fund”) was found guilty this afternoon in Manhattan federal court of securities fraud and wire fraud for committing insider trading. AFRIYIE made approximately $1.5 million in profits in connection with stock options he purchased based on material nonpublic information he misappropriated from the Fund about an impending acquisition of ADT Corporation (“ADT”).
Manhattan U.S. Attorney Preet Bharara said: “As a unanimous jury found today, John Afriyie, an investment fund analyst, made $1.5 million in illegal profits by trading in ADT stock, using inside information about ADT that he had obtained from the fund’s servers. To cover up his insider trading scheme, Afriyie destroyed incriminating emails and even claimed his own voice on a recorded call to his broker was actually his mother’s. The jury saw through Afriyie’s deception, and he now stands convicted of federal crimes.”
According to the Indictment other filings in Manhattan federal court and the evidence presented at trial:
In January 2016, Apollo Investment Management LLC (“Apollo”) contacted the Fund to discuss whether the Fund would provide debt financing for Apollo’s potential acquisition of ADT. The Fund entered into a non-disclosure agreement with Apollo and was granted access to confidential documents related to the ADT transaction. As an investment analyst at the Fund, AFRIYIE had access to the Fund’s network server, which maintained, among other things, electronic shared directory file folders containing material nonpublic information, including information about Apollo’s acquisition of ADT.
In violation of the Fund’s policies and in breach of his duties to the Fund, AFRIYIE repeatedly accessed material nonpublic information about Apollo’s pending acquisition of ADT in an electronic shared drive folder on the Fund’s network server. In approximately 28 separate transactions between January 28, 2016, and February 12, 2016, AFRIYIE purchased approximately 2,279 ADT call options for a total of $24,254.02 before the public announcement of that transaction. AFRIYIE purchased the ADT call options through a brokerage account in the name of AFRIYIE’s mother, which AFRIYIE controlled. AFRIYIE did not reveal his trades or the existence of the brokerage account to the Fund. As cover for his criminal scheme, AFRIYIE repeatedly pretended to be his mother in recorded telephone calls with his broker.
The public announcement of Apollo’s acquisition of ADT in February 2016 caused ADT shares to increase in value from $29.20 per share on the day AFRIYIE began purchasing ADT options to $39.64 per share, resulting in a corresponding increase in the value of the call options AFRIYIE had purchased. Upon subsequently selling the ADT options, AFRIYIE generated over $1.5 million in illicit profits.
In connection with his arrest, AFRIYIE lied to agents of the Federal Bureau of Investigation (“FBI”) about his ADT options trades and falsely claimed that his own voice on a recorded call with his broker was really his mother’s voice. Following his arrest, AFRIYIE also attempted to delete the contents of an email account that he had used to communicate with his broker.
While the guilt phase of the trial has concluded, AFRIYIE has requested a jury determination as to whether certain assets are subject to forfeiture as proceeds of the offenses for which he was found guilty. That forfeiture proceeding remains ongoing and will resume tomorrow.
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AFRIYIE, 29, of Freehold, New Jersey, was convicted of one count of securities fraud and one count of wire fraud, each of which carries a statutory maximum sentence of 20 years in prison. AFRIYIE was remanded on January 23, 2016, after he refused to appear in court for trial, and he remains in custody. The statutory maximum 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. Bharara praised the investigative work of the FBI and the Office’s Criminal Investigators. He also thanked the Securities and Exchange Commission for its assistance.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore and Christine I. Magdo are in charge of the prosecution. Assistant U.S. Attorney Jennifer L. Gachiri is handling the forfeiture aspects of this prosecution.
University City Man Indicted on Child Pornography ChargesRead the Press Release
St. Louis, MO – Justin X. Carroll, University City, MO, appeared in federal district court today to answer to a child pornography charge contained in a federal grand jury indictment that was filed last Wednesday but remained sealed until Carroll’s court appearance earlier this morning. The time period covered by the indictment is November 2015 to December 2016.
In the course of a child pornography investigation involving the internet, federal investigators discovered a group of child pornography sharers and were able to identify Carroll as one of the participants by tracing IP addresses to computers at his residence and Washington University, where Carroll served as Associate Vice Chancellor for Student Affairs.
U.S. Attorney Richard Callahan noted that the investigation only identified criminal wrongdoing in connection with the internet, and did not discover any wrongdoing in connection with Carroll’s University responsibilities or involving students. He also expressed appreciation for the cooperation that Washington University provided in connection with the investigation.
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If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Rob Livergood is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
United States Attorney for the Middle District of Pennsylvania Reappointed by Order of the District Court JudgesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Bruce D. Brandler, United States Attorney for the Middle District of Pennsylvania, was reappointed United States Attorney by order of the District Court Judges effective January 30, 2017. Mr. Brandler was initially appointed United States Attorney by order of former Attorney General Loretta E. Lynch on October 2, 2016, for one hundred twenty days or until a Presidential appointment was made, whichever occurs first. That appointment expired on January 29, 2017, and this new appointment by the District Court Judges appoints Mr. Brandler as United States Attorney until the vacancy is filled by the President.
Mr. Brandler began his legal career as an Assistant District Attorney in Brooklyn, New York, where he served from 1981 until 1985. Upon leaving the District Attorney’s Office, he became the Deputy Chief and then the Chief Investigative Counsel of the New York State Senate Committee on Investigations, Taxation and Government Operations from 1985 to 1986.
Mr. Brandler was appointed an Assistant United States Attorney for the Middle District of Pennsylvania in 1986 and was promoted to the position of Senior Litigation Counsel in 1992. In 2014, he became the Chief of the Criminal Division and served in that capacity until his appointment as United States Attorney on October 2, 2016.
Some of the notable cases Mr. Brandler prosecuted as an Assistant United States Attorney and Senior Litigation Counsel included a tax evasion case against former Luzerne County Judge Arthur Dalessandro; a perjury case against former State Representative Frank Serafini; a bribery/extortion case against former Lackawanna County Commissioners Robert Cordaro and Anthony Munchak; an illegal campaign contribution and fraud case against Renato Mariani, the former President of Empire Sanitary Landfill, Inc.; a disadvantaged business enterprise fraud case against Joseph Nagle, the former President of Schuylkill Products, Inc.; an accounting fraud case against Paul Polishan, the former Chief Financial Officer for the Leslie Fay Companies, Inc.; and an environmental crimes case against Chemical Waste Management, Inc. for illegal dumping activities at a Superfund site in Lackawanna County.
Mr. Brandler graduated from Stony Brook University in 1978 and received a B.A. in Political Science with honors, and was inducted into the Phi Beta Kappa honor society. He received his law degree in 1981 from the Boston University School of Law. He resides in Harrisburg, Pennsylvania.
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U.S. Department of Justice Partners with Linn County and Cedar Rapids Law Enforcement and Community Agencies to Host Forum: Protecting Arab, Muslim, Sikh, and South Asian Communities and the Community Response to Hate CrimesRead the Press Release
CEDAR RAPIDS, IA –The U.S. Department of Justice partnered with Linn County and Cedar Rapids law enforcement and community agencies to host a forum today to discuss hate crimes and bias incidents targeted against the Arab, Muslim, Sikh, and South Asian Communities. A representative from the Department of Justice’s Community Relations Service (CRS) served as the moderator.
Pursuant to the Hate Crimes Protection Act, CRS is authorized to work with communities to help them develop the capacity to prevent and respond more effectively to violent hate crimes committed on the basis of actual or perceived race, color, national origin, gender, gender identity, sexual orientation, religion, or disability. CRS is a remarkably unique federal component dedicated to assisting state and local units of government, private and public organizations, and community groups develop local capacity to prevent racial and ethnic tensions.
Joining in the forum were representatives from the Linn County Attorney and Sheriff’s Offices, the Cedar Rapids Police Department, the Federal Bureau of Investigation, the Cedar Rapids Civil Rights Commission, and leaders from the Arab, Muslim, Sikh, and South Asian communities in Cedar Rapids.
United States Attorney Kevin W. Techau expressed appreciation to the agencies involved and the community members attending for their willingness to discuss issues that communities across the state and country encounter. Techau stated, “The Department of Justice is committed to protecting the rights and freedoms of all people. Today’s meeting was an opportunity to discuss the topic of hate crimes in a safe environment. Hate crimes represent an attack not just on the individual victim but also on the victim's community. The impact is broad because these crimes send a message of hate and violence to entire ethnic and religious groups. The perpetrators of such crimes intend to create fear and spread hatred. We are committed to working with all communities to address the issue by working to prevent hate crimes as well as investigate and prosecute hate crimes whenever and wherever necessary.”
Assistant U.S. Attorney Tony Morfitt provided information on the federal statutes that criminalize various types of hate crimes. He covered the evolution of federal hate crime law and the recent expansion of the groups protected by federal hate crime laws.
Morfitt emphasized that the defining characteristic of a federal hate crime is that the actions must have been motivated by hate and that an individual cannot be found guilty federally unless the government proves the person acted “because of” the victim’s status as a member of a protected group. As an example, Morfitt pointed to the case of United States of America v. Randy Metcalf, where the government last year proved at trial that a Dubuque resident had assaulted an African American man in a local bar because of his race.
The Linn County Attorney’s Office presented information regarding Iowa hate crime laws. Representatives from CRS served as moderators and engaged the presenters and law enforcement and community leaders with questions from the audience.
To learn more about the Department of Justice’s Community Relations Service, visit: https://www.justice.gov/crs.
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