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8 March 2017
Mexican National Pleads Guilty to Conspiring with Edgewood Man to Distribute Heroin that Resulted in Death of the UserRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division announced today a Mexican national has entered a guilty plea in federal court in Albuquerque, N.M., to participating in a conspiracy to distribute heroin that resulted in the death of the user.
During a change of plea hearing this morning, Rosendo Flores Angulo, 39, who illegally resided in Albuquerque until his arrest in this case, entered a guilty plea to a felony information charging him with conspiracy to distribute heroin. Angulo’s co-defendant, Curtis Hutchinson, 31, of Edgewood, N.M., previously pled guilty on Sept. 22, 2016, to conspiring with Angulo to distribute heroin that resulted in the death of a person who used the heroin.
In announcing today’s guilty plea, U.S. Attorney Damon P. Martinez said, “Hundreds of people die each year in New Mexico from heroin and opioid overdoses. As the facts of this case demonstrate, there is no safe threshold for heroin use, and even a very small dose of heroin – just one-quarter of a gram in this case – can be lethal. Heroin users and distributors need to understand that they are playing Russian roulette and every dose of heroin is another round in the cylinder.”
U.S. Attorney Martinez further noted that, “Arrests and criminal prosecutions in cases like this will not alone solve this problem, they are, however, a critical part of the solution. The U.S. Attorney’s Office is committed to working with the DEA and its other partners across federal, state, local and tribal law enforcement to combat the abuse of heroin and prescription opioids, which has had, and continues to have, devastating effects on victims, their families, and our communities.”
“New Mexico has been hit hard by the heroin and opioid epidemic that is plaguing our country, and drug overdoses remain the leading cause of accidental death in the state,” said Will R. Glaspy, Special Agent in Charge of DEA’s El Paso Division. “While it is essential that those suffering from addiction receive the treatment they need, it is equally important that the individuals and criminal organizations fueling this epidemic be held accountable for their actions. The DEA will continue to work with the U.S. Attorney’s Office and our law enforcement partners to bring to justice those who prey on our citizens.”
This case was initiated on Sept. 18, 2015, by the filing of a criminal complaint charging Angulo with heroin trafficking charges based on a number of heroin sales to two undercover DEA agents in Bernalillo and Sandoval Counties, N.M., between July 2015 and Sept. 2015. On Oct. 20, 2015, Angulo and Hutchinson were indicted and charged with participating in a heroin trafficking conspiracy. In addition to the conspiracy charge, the 17-count indictment charged both men with two counts of heroin distribution and Angulo alone with an additional 14 counts of heroin distribution.
On May 25, 2016, a federal grand jury returned an 18-count superseding indictment against Angulo and Hutchinson charging that added a “death resulting” count charging that the two men had conspired to distribute, and had distributed, heroin that resulted in the death of the person who used the drug. According to the superseding indictment, on April 29, 2015, Angulo and Hutchinson distributed heroin to a person who died as a result of using that heroin. The two men were charged with committing this crime in Bernalillo County.
In his plea agreement, Angulo admitted being a mid-level drug dealer who distributed heroin to low-level drug dealers and heroin users in Albuquerque in 2014 and 2015. Hutchinson was one of the low-level drug dealers to whom Angulo supplied heroin. Angulo admitted supplying heroin to Hutchinson on April 29, 2015, and acknowledged learning that Hutchinson sold some of the heroin to a young man, who collapsed and died after using the heroin. The plea agreement states that a medical toxicologist concluded that the heroin was the cause of the young man’s death; the young man would not have died if he had not used the heroin.
When Hutchinson entered his guilty plea in Sept. 2016, he admitted selling $20.00 of heroin – approximately 0.25 of a gram – to an acquaintance on April 29, 2015, and acknowledged learning that the acquaintance died as result of using that heroin.
In his plea agreement, Angulo agreed to a sentence of imprisonment within the range of 168 to 210 months. Angulo will be deported after he completes his prison sentence. Hutchinson faces a statutory penalty of not less than 20 years and not more than life imprisonment. Both men remain in federal custody pending sentencing hearings, which have yet to be scheduled.
The Albuquerque office of the DEA investigated this case, which is being prosecuted by Assistant U.S. Attorney Timothy S. Vasquez, 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.
Angulo Plea Agreement Hutchinson Plea AgreementMeth Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Gary Ray Evans, Jr., 38, of Richton, Mississippi, was sentenced today to 151 months’ imprisonment following his plea of guilty on a federal charge of possession with intent to distribute methamphetamine ice. Evans was on supervised release from a prior federal drug conviction at the time of his arrest on the new charge. Court documents reflect that Evans was discovered in a hotel room in Mobile with approximately 24 grams of methamphetamine ice. Evans pled guilty to the new charge in June of 2016.
United States District Court Judge William H. Steele imposed the 151 month sentence, and ordered that Evans undergo drug treatment and counseling while on a three-year-term of supervised release, which will commence when he is released from his prison sentence. Judge Steele also ordered that Evans pay a $100 special mandatory assessments, but did not impose a fine.
The Mobile County Sheriff’s Office and the Department of Homeland Security Investigations worked the case. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Mercer County, New Jersey, Man Admits Role in Conspiracy to Distribute CocaineRead the Press Release
TRENTON, N.J. – A Trenton, New Jersey, man today admitted his role in a conspiracy to sell more than 1.5 kilograms of cocaine and more than 87 grams of cocaine base in the Trenton area, U.S. Attorney Paul J. Fishman announced.
William Enmond, 53, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, and to manufacture, distribute, and possess with intent to distribute 28 grams or more of cocaine base.
According to the documents filed in this case and statements made in court:
From September of 2013 through his arrest on Jan. 13, 2016, Enmond conspired with co-defendants Bobby Williams, Khalfini Richardson and Capitol T. Wellons to distribute cocaine, and to manufacture and distribute cocaine base, primarily from two adjacent residences in Trenton. On Sept. 6, 2013, Enmond sold 446.5 grams of cocaine to a confidential government source in exchange for $17,320. Enmond admitted to conspiring to distribute and possess with intent to distribute 1.72 kilograms of cocaine and to conspiring to manufacture as well as distribute, and possess with intent to distribute, 87.9 grams of cocaine base.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, and detectives of the Mercer County Prosecutor’s Office Special Investigations Unit, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to today’s guilty plea.
The count to which Enmond pleaded guilty carries a mandatory minimum sentence of five years in prison, a maximum of 40 years in prison and a fine of up to $5 million or twice the gross profits or other proceeds to Enmond. Sentencing is scheduled for June 13, 2017.
The government is represented by Assistant U.S. Attorneys Molly Lorber and Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
Charges and allegations pending against the remaining defendants are merely accusations, and they are considered innocent unless and until proven guilty.
Defense counsel: Mark G. Davis Esq., Hamilton, New Jersey
Members of the Gangster Disciples Have Pleaded Guilty to Violent CrimesRead the Press Release
Memphis, TN – Seven members of the Gangster Disciples have pleaded guilty to committing violent crimes in aid of racketeering activity. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the guilty pleas today.
According to information presented in court, the Gangster Disciples are a violent criminal gang which began in the Chicago, Illinois area. In the 1970’s, the leaders of two different Chicago-based gangs, the Black Disciples and the Supreme Gangsters, aligned their respective groups and created the Gangster Disciples.
Once united, the Gangster Disciples began recruiting heavily in Chicago, within Illinois jails and prisons, and throughout the United States. By the mid-1980’s, the group had spread throughout the Midwestern and Eastern United States. The Gangster Disciples are active in approximately 35 states including Tennessee.
The purpose of the enterprise includes preserving and protecting the power of the enterprise through the use of threats, intimidation, and acts of violence including murder.
On June 21, 2014, Florence Anthony ("Anthony"), a member of the Gangster Disciples, got into an altercation with a group of individuals at the Hillview Apartments located in Memphis, Tennessee. Anthony reported the confrontation to her Gangster Disciples chain-of-command. As a result, Anthony, along with fellow gang member Brandon Milton ("Milton"), returned to the Hillview Apartments to retaliate. Milton fired at least three shots at a group of individuals standing outside the apartments. Because no one was struck, the security team for the Gangster Disciples were called in to discuss further retaliation.
At approximately 10:30 p.m. on that same day, Edwin Carvin ("Carvin"), Robert Mallory ("Mallory"), Tony Coburn ("Coburn"), Erik Reese ("Reese"), and Ranito Allen ("Allen"), all members of the Gangster Disciples, went back to the Hillview Apartments to retaliate against what were identified as rival gang members. Carvin, Mallory, Coburn, Reese and Allen were each armed with firearms and proceeded on foot through the apartments shooting four juveniles and one adult male. All five victims survived, but some sustained serious bodily injuries.
All seven members of the Ganger Disciples were indicted by a federal grand jury on a number of charges including violent crimes in aid of racketeering activity in violation of 18 U.S.C. § 1959 and possession of a firearm during and in relation to a crime of violence in violation of 18 U.S.C. §924 (c). Today, the final defendant (Reese) pleaded guilty. Coburn is scheduled for sentencing on Thursday, March 23, 2017 at 3:30 p.m.; Mallory is set for sentencing on Friday, March 24, 2017 at 10:00 a.m.; Carvin is set for sentencing on Friday, March 24, 2017 at 1:30 p.m.; Anthony is scheduled for sentencing on Thursday, June 1, 2017 at 9:00 a.m.; Milton is scheduled for sentencing on Thursday, June 1, 2017 at 1:30 p.m.; Allen is scheduled for sentencing on Friday, June 2, 2017 at 9:00 a.m.; and Reese is scheduled for sentencing on Thursday, June 22, 2017 at 1:30 p.m. before United States District Court Judge Samuel H. Mays.
Each faces up to life in federal prison and a fine of up to $250,000.
The case was investigated by the Federal Bureau of Investigation, the Multi-Agency Gang Unit, Police Departments for Memphis, Bartlett and Germantown; Sheriff’s Offices for Tipton, Desoto and Shelby; and the Tennessee Bureau of Investigation Crime Lab.
Assistant United States Attorney Jerry Kitchen, Assistant United States Attorney Michelle Kimbril-Parks, and Special Assistant United States Attorney Sam Stringfellow are prosecuting this case on the government’s behalf.
Martinsburg man sentenced for failing to register as a sex offenderRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dustin Andrew Parsons, 30, of Martinsburg, West Virginia, was sentenced today in federal court to 27 months incarceration for failing to register as a sex offender, Acting United States Attorney Betsy Steinfeld Jividen announced.
Parsons admitted to traveling in interstate commerce and failing to register and update his registration as a sex offender in Berkeley County, West Virginia. Parsons is required to register under the Sex Offender Registration and Notification Act by reason of a conviction under state law.
Parsons pled guilty to one count of “Failure to Register” in December 2016.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The United States Marshals Service investigated.
Chief U.S. District Judge Gina M. Groh presided.
Man Indicted on Charge of First-Degree Murder While Armed for 1993 Slaying of Woman in Northwest WashingtonRead the Press Release
WASHINGTON – Therion Bryant, 49, of Baltimore, Md., and formerly of Washington, D.C., was indicted today on one count of first-degree murder while armed for the 1993 slaying of a woman in Northwest Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD).
The indictment was returned by a grand jury in the Superior Court of the District of Columbia. Bryant is to be arraigned March 10, 2017 before the Honorable Hiram E. Puig-Lugo.
According to the government’s evidence, on the morning of Oct. 16, 1993, the almost completely naked body of the victim, Charlene Johnson, was discovered at the bottom of a stairwell to the rear, basement entrance of a row home in the 3600 block of New Hampshire Avenue Northwest. The District of Columbia’s Office of the Chief Medical Examiner determined that Ms. Johnson, 25, was killed as a result of multiple stab wounds.
DNA evidence was obtained from the victim’s body and in the area surrounding where Ms. Johnson was found. Bryant was identified as a suspect in 2014 through the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes that is used as an investigative tool. He was arrested on June 1, 2016, by members of the Capital Area Regional Fugitive Task Force.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the Metropolitan Police Department with assistance from the FBI’s Laboratory Division. It is being prosecuted by Assistant U.S. Attorney Sharon Donovan.
Mableton, Georgia Woman Pleads Guilty to Passing CounterfeitRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Tasha Ajibogun, age 35, of Mabelton, Georgia, pled guilty today in federal court in Florence, to passing counterfeit $50.00 Federal Reserve Notes, a violation of Title 18, United States Code, Section 472. United States District Judge Bruce H. Hendricks of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on December 4, 2014, Ajibogun entered the Dollar General Store on South Van Lingle Mungo Boulevard in Pageland where she purchased merchandise with a counterfeit $50.00 bill. The next day, on December 5, an officer with the Pageland Police Department located Ajibogun and discovered 22 additional counterfeit $50.00 bills in her possession.
Ms. Drake stated the maximum penalty the defendant can receive is imprisonment for 20 years and/or a fine of $250,000, plus a special assessment of $100.
The case was investigated by agents of the United States Secret Service and the Pageland Police Department. Assistant United States Attorney Brad Parham of the Florence office handled the case.
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Louisville Man Charged with Intentionally Distributing Heroin Which Resulted in the Death of the UserRead the Press Release
First defendant charged with heroin distribution resulting in death, in the Western District of Kentucky
LOUISVILLE, Ky. – A Louisville man was charged by grand jury indictment today with intentionally distributing heroin, a Schedule I controlled substance, to a person known as “G.A.” whose death and serious bodily injury resulted from the use of such substance, announced United States Attorney John E. Kuhn, Jr.
“This indictment arises out of the collaborative initiative announced last fall involving DEA, LMPD and the U.S. Attorney's Office,” stated United States Attorney John Kuhn. “With the assistance of federal funding from the OCDETF program, DEA and LMPD are investigating overdose deaths together, with the aim of bringing federal charges which carry a mandatory 20-year sentence upon conviction, without the possibility of parole. This indictment is just the first in a series of prosecutions we hope will make a difference for our community. My Office is committed to attacking the heroin supply, ending the violence associated with its trafficking, and bringing some measure of justice to the victims and their families.”
Logan Charles Silliman, age 30, was charged in a three count indictment with intentionally distributing heroin, a Schedule I controlled substance, to a person known as “G.A.” whose death and serious bodily injury resulted from the use of such substance; possession and distribution of a 100 grams or more of a substance containing a mixture or substance containing heroin on January 6, 2017; and possession and distribution of a of a 100 grams or more of a substance containing a mixture or substance containing heroin on February 14, 2017.
Silliman was previously charged, in a Criminal Complaint on February 13, 2017 with possession of heroin with intent to distribute. According to an Affidavit attached to the complaint, in January of 2017, members of the DEA Louisville District Office and Louisville Metro Police Department (LMPD) Major Case Narcotics unit received information that the defendant was actively selling heroin from a residence located on Gardiner Lane in Louisville. After securing a search warrant, a quantity of heroin, suspected marijuana, a digital scale, a large number of syringes, packaging material, cutting agent, several cellular phones and documents were recovered from the residence.
After being provided a Miranda Warning, Silliman allegedly admitted to trafficking in heroin, that he used between 1 and 1.5 grams of heroin per day, and that heroin was located in the bedroom/closet area of his residence. Silliman further stated, according to the Affidavit, the he sold heroin to several people and that he purchased approximately one ounce of heroin twice weekly for approximately $2,000.
Silliman’s initial appearance on the Criminal Complaint was held before Magistrate Judge Dave Whalin, in Louisville, on February 14, 2017. He was remanded to the custody of the United States Marshals Service.
If convicted of the charges in the grand jury indictment, Silliman faces a mandatory 20 years in prison for Count 1, no less than five years in prison for Counts 2 and 3, four years of supervised release, and a fine of $11 million.
This case is being prosecuted by Assistant United States Attorney Robert B. Bonar, and is being investigated by the DEA Louisville Division and the LMPD.
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The charge of a person by Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty.
The DEA and LMPD, in coordination with the U.S. Attorney’s Office, formulated a strategy in response to the current heroin epidemic and created the Heroin Investigation Team (HIT) which investigates overdoses with the aim of developing federal cases charging heroin distribution causing death or serious injury. These charges are punished by a mandatory 20-year sentence. The HIT consists of Special Agents of the DEA and LMPD Major Case Narcotics Unit Detectives. The program was supported initially with federal funding for overtime for six law enforcement officers from LMPD who work on HIT. Each of the six law enforcement officers was deputized by DEA as a federal Task Force Officer (TFO).
Last Defendant Pleads Guilty in Opioid Pill Mill CaseRead the Press Release
DALLAS — Carolina Giselle Berrio, a/k/a “Carolina Slocum Berrio,” “Karrie,” 37, of Lafayette, Louisiana appeared last week before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to a conspiracy charge stemming from her involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Berrio pleaded guilty to one count of conspiracy to distribute a controlled substance. She faces a maximum statutory penalty of 20 years in federal prison and a fine not to exceed $1 million. Sentencing is scheduled for June 16, 2017.
In March 2015, a federal grand jury in Dallas indicted 23 individuals, including Berrio, on offenses related to their participation in a prescription drug distribution conspiracy. That indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions to fill those prescriptions at designated pharmacies.
To date, 29 defendants have pleaded guilty, including one doctor, one clinic owner, two pharmacists, and numerous co-conspirators, to their involvement in the conspiracy and several have been sentenced to prison terms ranging from probation to 48 months in federal prison.
According to plea documents filed for Berrio, on December 18, 2013, Berrio negotiated to purchase a quantity of oxycodone 30mg pills from co-conspirator Cornelius Robinson, her supplier. Robinson asked for a higher price to deliver the oxycodone to Berrio in Lafayette, Louisiana, and a lower price if Berrio picks up the pills in Houston. Robinson agreed to supply Berrio with oxycodone 30mg at $18.50 per pill, and Berrio agreed to pick up the pills in Houston, Texas. Berrio sought 300 oxycodone 30mg pills with the intent to distribute them at a later time.
In addition, Berrio admits to purchasing oxycodone 30 mg pills from Robinson in both May and March of 2014.
Co-defendant William Hopkins, a/k/a “New York,” 54 of Dallas, Texas was sentenced last week by U.S. District Judge Sidney A. Fitzwater to 5 years probation with intermittent confinement (weekend incarceration) for 52 weeks. Hopkins pleaded guilty in November 2016 to one count of unlawful use of a communication device.
According to documents filed for Hopkins, in a telephone call on August 15, 2013 Hopkins, a recruiter, admonishes a recruit to be available because a driver is trying to pick up the recruit to take him to the doctor’s office. Hopkins encourages the recruit to show up by saying, “This is your money,” meaning the recruit will be paid to go to the doctor’s office to obtain oxycodone or hydrocodone.
This Organized Crime Drug Enforcement Task Force (OCDETF) was investigated by the Drug Enforcement Administration, with assistance from the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service. Assistant U.S. Attorney Mary Walters prosecuted.
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KC Man, Woman Plead Guilty to Marriage Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., residents pleaded guilty in federal court today to their roles in a marriage fraud conspiracy.
Delmar Dixon, 49, and Shakeisha Harrison, 37, both of Kansas City, pleaded guilty before U.S. District Judge Gary A. Fenner to the charges contained in an Aug. 31, 2016, federal indictment.
Dixon and Harrison each admitted that they participated in a conspiracy to assist African nationals in circumventing immigration laws by arranging fraudulent marriages. In addition to the conspiracy, Dixon pleaded guilty to falsely swearing in an immigration matter.
Co-defendant Traci R. Porter, 44, of Kansas City, pleaded guilty on Jan. 19, 2017, to her role in the marriage fraud conspiracy.
By pleading guilty today, Dixon admitted that he arranged 30 to 40 fraudulent marriages, including his own. Dixon charged the African nationals $1,000 upfront for his services, which included providing them U.S. citizen spouses. The African nationals were additionally required to pay $500 to the spouse at the time of the wedding, and an additional $500 immediately after completion of the wedding. They were required to pay their spouses $250 each month after the weddings until the immigration process was complete. The African nationals were coached by Dixon on how to make their marriages appear legitimate.
In addition to arranging fraudulent marriages, Dixon engaged in a fraudulent marriage himself. Dixon obtained a marriage license on March 19, 2008, and married a Kenyan national who had entered the United States as a B2 nonimmigrant visitor but overstayed her visa.
Harrison admitted that she entered into a fraudulent marriage arranged by Dixon. Her spouse, a Tanzanian national, entered the United States as an F1 nonimmigrant student to attend Park University. The two were married on Feb. 12, 2010, and Harrison filed for permanent resident status for her spouse on Aug. 12, 2014.
Porter admitted that she was involved in the marriage fraud scheme through her own marriage and her involvement in other fraudulent marriages. In June 2008, Porter married a Kenyan national who had entered the United States as a B2 visitor. He was granted conditional lawful permanent resident status; Porter also filed petitions for an alien relative for her step-daughter and step-son. However, the U.S. Embassy in Nairobi denied the children immigrant visas because Porter and her spouse failed to establish they had a bona fide ongoing marriage, and there was a suspicion (later confirmed) that he was not legally divorced from a prior marriage. To remedy this, Porter filed for divorce and her spouse divorced his wife in Kenya, then they remarried and he was granted permanent resident status.
Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) agents utilized a confidential informant and an undercover agent in their investigation. The CI successfully arranged a meeting with Dixon, paid the required fees, and married the spouse provided to him by Dixon in a pretend ceremony staged by HSI. (Because the marriage was staged by HSI, it is not legally valid.) The confidential informant continued to pay the $250 monthly fee for the fraudulent purported marriage. In late December 2015, HSI initiated the operation involving the undercover agent. The agent met with Dixon (who introduced the agent to his intended spouse) and made a payment to Dixon. Dixon also offered the undercover agent $300 for each new client he referred.
Under federal statutes, Dixon is subject to a sentence of up to 15 years in federal prison without parole. Harrison and Porter are each subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kim Moore. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and U.S. Citizenship and Immigration Services, Fraud Detection and National Security.
Jury Convicts Former Banker and Mortgage Broker of Defrauding California BankRead the Press Release
HOUSTON – A federal jury has handed down convictions against two Houston-area defendants on multiple counts to include conspiracy, bank fraud, false statements on credit applications, wire fraud and mail fraud, announced U.S. Attorney Kenneth Magidson. The jury deliberated for approximately seven hours before convicting Carlos Wydler, 45, and Leyla Wydler, 57, both of Houston,late yesterday in a trial that spanned four weeks.
Leyla Wydler was the owner of several Houston-area businesses including Globan Mortgage Company, Casa Milagro and First Milagro. In the spring 2007, Carlos Wydler went to work at a California bank as a vice-president in charge of the bank’s credit card department. Shortly thereafter, the Wydlers developed a scheme in which Leyla Wydler would send credit card applications to the bank for Carlos Wydler to approve. He approved the applications for high credit lines and then, calling them “balance transfers,” cash advanced the entire credit line to the borrower via wire or check with Leyla Wydler taking a fee from the borrowers’ loan proceeds.
During trial, the evidence demonstrated that the Wydlers were also developing a real estate project in Houston at the time and used the “balance transfer” program to finance investors in their project. The jury heard that the bank did not know or approve of the fee-sharing or real estate financing arrangements.
For approximately a year, hundreds of loan applications were faxed or emailed from Leyla Wydler’s business in Houston to Carlos Wydler at the bank in California. Many of these contained falsified income information and falsified supporting documents about borrowers’ employment, income and assets. Two eyewitnesses testified they saw Leyla Wydler routinely insert falsified income numbers, sometimes using white-out, on loan applications.
Leyla Wydler skimmed more than $1.4 million from loan proceeds, with Carlos Wydler approving approximately $600,000 more in unauthorized loans to family members. More than half of the Texas borrowers run through the Wydler-family business in Houston defaulted on their loans. The bank sustained a loss of more than $8 million.
The defense attempted to convince the jury that Carlos Wydler followed bank policy in his approval decisions. Leyla Wydler’s attorney argued that she did not know that the information she was sending contained falsified information.
The jury did not believe their claims and ultimately convicted both defendants of conspiracy, bank fraud, false statements on credit applications, wire fraud and mail fraud. Carlos Wydler was also found guilty on six counts of misapplication of bank funds.
Both face up to 30 years in federal prison and a possible $1 million maximum fine on each count of conviction. U.S. District Judge Melinda Harmon presided over the trial and has set sentencing for June 23, 2017. The Wydlers were taken into custody immediately after the verdict yesterday where they will remain pending that hearing.
The FBI, U.S. Postal Inspection Service and the Federal Deposit Insurance Corporation conducted the investigation. Assistant U.S. Attorneys Belinda Beek and John Lewis are prosecuting the case.
Johnstown Felon Illegally Possessing Shotgun and RifleRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., entered a guilty plea in federal court in Johnstown to a charge of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
Eric P. Williams, 35, of Johnstown, Pa., pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on December 8, 2015, Williams, who had been convicted in 2001 in Clearfield County, Pennsylvania, of the felony offense of robbery, which is a crime punishable by imprisonment for a term exceeding one year, did possess in and affecting interstate commerce a Stevens, Model 350, 12 gauge shotgun, and a Mossberg, Model 715T, .22 LR caliber, semi-automatic rifle. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms.
Judge Gibson scheduled sentencing for August 3, 2017, at 10:00 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 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 of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Williams.
According to Ms. Song, Williams is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Jefferson County man sentenced for heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Clark Corbin, 41, of Ranson, West Virginia was sentenced in federal court today to 18 months incarceration for heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Corbin pled guilty to one count of “Possession with Intent to Distribute Heroin” in December 2016. He admitted to selling heroin in Jefferson County in February 2016.
Assistant U.S. Attorneys Paul T. Camilletti and Lara Omps-Botteicher prosecuted the case on behalf of the government. The Drug Enforcement Administration and the Jefferson County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided over the case.
Jasper Pharmacist Sentenced to Two Years in Prison for Illegally Dispensing Prescription DrugsRead the Press Release
BIRMINGHAM – A federal judge on Tuesday sentenced a Jasper pharmacist to two years in prison for illegally dispensing opioid painkillers and other controlled substances, announced Acting U.S. Attorney Robert O. Posey and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
U.S. District Court Judge Abdul K. Kallon sentenced GEORGE RICHARD BOLLING JR., 55, on one count of conspiring, between January 2013 and March 2015, to illegally distribute and dispense prescription drugs including oxycodone, methadone, morphine sulfate, hydrocodone, ketamine HCL, zolpidem tartrate, alprazolam and clonazepam in Walker, Lamar, Winston and Fayette counties. The judge also sentenced Bolling on two counts of illegally transferring oxycodone, an opioid painkiller, between pharmacies in Walker and Fayette counties, once on March 6, 2013, and once on July 21, 2013. Bolling pleaded guilty to the charges in October 2016. He must report to prison May 8.
Bolling owned five northwestern Alabama pharmacies that were implicated in connection with his crimes: Berry Discount Apothecary in Berry, Bolling Apothecary in Fayette, Hospital Discount Apothecary in Vernon, Brown’s Discount Apothecary in Jasper, and Gateway Discount Apothecary in Double Springs. Bolling has sold the pharmacies and, as part of his plea and sentence, has forfeited his DEA registration numbers and his State of Alabama Board of Pharmacy permits and license number. He also had to forfeit $75,000 to the government as proceeds of illegal activity.
Bolling’s prosecution was a result of a long-term investigation conducted in connection with DEA’s Operation Pilluted in Alabama, Arkansas, Louisiana and Mississippi in 2015, which focused on reducing the trafficking and abuse of pharmaceuticals and also brought about the prosecution of three Birmingham-area physicians for illegally distributing controlled substances.
DEA investigated the case, which Assistant U.S. Attorney Gregory R. Dimler prosecuted.
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Indictment Charges Kankakee Man with Possessing Kilogram of Heroin with Intent to DistributeRead the Press Release
SPRINGFIELD, Ill. - A grand jury returned an indictment today that charges Kevin Brooks, 34, of Kankakee, Ill., with possession of heroin with intent to distribute. The indictment alleges that on Feb. 7, 2017, Brooks possessed approximately one kilogram or more of heroin with intent to distribute.
Brooks was previously arrested and charged by federal criminal complaint on Feb. 9. According to the affidavit filed in support of the complaint, on Feb. 7, Illinois State Police conducted a traffic stop of a vehicle driven by Brooks on southbound Interstate 57, in Douglas County. During a subsequent search of the vehicle, officers allegedly recovered an amount of heroin estimated at more than one kilogram.
U.S. Magistrate Judge Eric I. Long has ordered Brooks detained in the custody of the U.S. Marshals Service.
The East Central Illinois Task Force, Illinois State Police and the FBI conducted the investigation. Assistant U.S. Attorney Bryan Freres is prosecuting the case.
If convicted, the statutory penalty for possession of one kilogram or more of heroin with the intent to distribute is 10 years to life in prison
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Indianapolis tax preparer sentenced for filing false returnsRead the Press Release
Assisted in filing at least 65 returns with a loss to the IRS of over $300,000
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of a former tax preparer for his role in assisting in the filing of tax returns for his clients, stealing over $300,000 from the U.S. Treasury. William L. Brown, 39, Indianapolis was sentenced in federal court today to one-year imprisonment by U.S. District Judge Sarah Evans Barker.
“Filing fraudulent tax returns is stealing from the U.S. Treasury,” said Minkler. “My office will not look the other way when taxpaying citizens are victimized.”
Brown was employed as a tax preparer for Instant Tax Service (ITS) with multiple offices in the Central Indiana area. He was responsible for the accuracy of federal tax returns prepared by him and filed by ITS on behalf of its clients. From 2010 until 2012, Brown filed 65 returns, inflating business income or losses which resulted in unauthorized earned income credits and refunds to the taxpayer clients of ITS. In total over $302,000 was the loss to the IRS.
IRS Criminal Investigation Special Agent in Charge James D. Robnett said, "I am proud of the work of our agents. IRS special agents work tirelessly throughout the year to protect taxpayers from tax refund fraud. Today's sentencing is a reminder that taxpayers should be cautious of who they choose to prepare their tax returns."
According to Assistant U.S. Attorney James M. Warden who prosecuted the case, Brown must also pay $302,000 in restitution and serve one year on supervised release, the first six months of which are on home detention following his sentence.
Greenwood man indicted on federal firearms chargesRead the Press Release
Unlawfully possessed a rifle and ammunition near Greenwood Mall this summer
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today federal charges against a Greenwood man who illegally possessed a firearm and ammunition. Christopher C. Byrne, 31, Greenwood, was charged in a two-count indictment with unlawful possession of a firearm and unlawful possession of ammunition by a convicted felon.
“Those who choose to terrorize our communities by illegally carrying firearms will be held accountable,” said Minkler. “No one is above the law and Mr. Byrne will now face federal prosecution for his actions.”
The indictment alleges that on August 15, 2016, Byrne was stopped by Greenwood Police Department (“GPD”) officers for a traffic violation in the vicinity of Greenwood Park Mall. GPD officers observed that the vehicle Byrne was driving did not display a lawful license plate or registration. Instead, in the location where the license plate should have been, the vehicle had a fictitious license plate that stated “PRIVATE,” “No driver license or insurance required,” “Not for commerce-private mode of travel”. Officers asked Byrne for his identification and he replied he did not commit a crime and therefore did not have to identify himself.
Byrne was removed from his vehicle, handcuffed, and subsequently identified by his Indiana identification card located in his wallet. A driver’s records check revealed he was a habitual traffic violator and did not have a valid driver’s license. When officers searched his vehicle, they found a loaded .22 caliber rifle with a scope and an extended clip on the rear seat.
Byrne is not legally permitted to carry a firearm because he is a convicted felon. He was convicted of operating a motor vehicle while intoxicated from Hendricks County in 2012, and again from Marion County in 2013. He also was also convicted of theft in Marion County in 2015.
“We are pleased U.S. Attorney Minkler is holding Christopher Byrne accountable for his actions on August 15, 2016,” said Johnson County Deputy Prosecutor Rob Seet. “We thank the Greenwood Police Department, the FBI, and the ATF for their hard work to protect the people of Johnson County from a dangerous felon like Byrne.”
This case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the Greenwood, Indiana, Police Department.
According to Assistant United States Attorney Matthew Rinka who is prosecuting the case for the government, Byrne faces up to 10 years’ imprisonment and a $250,000 fine if convicted of all crimes.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
Government Contractor Convicted of Sex Trafficking and Sexually Exploiting Minors AbroadRead the Press Release
Today, following a month-long jury trial before U.S. District Judge Robert N. Scola Jr., a government contractor was convicted of sexually exploiting and trafficking in minors, while working overseas.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Christopher Rennie Glenn, 37, with ties to West Palm Beach, Florida was convicted of eight out of ten charges submitted to the federal jury: one count of conspiracy to commit sex trafficking by fraud and of a minor in violation of Title 18, United States Code, Section 1594(c); one count of sex trafficking by fraud and of a minor, in violation of Title 18, United States Code, Section 1591(a)(1); four counts of attempting to engage in sex trafficking by fraud and of a minor, in violation of Title 18, United States Code, Section 1594(a); one count of traveling overseas with the intent to engage in illicit sexual conduct, in violation of Title 18, United States Code, Section 2423(b); one count of sexually assaulting a minor, in violation of Title 18, United States Code, Section 2243(a); and one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(A) (Case No. 15-CR-20632). Glenn was acquitted on the two remaining charges of conspiracy and sex trafficking. All of the charged conduct occurred outside of the United States, in either Iraq or Honduras, and largely while Glenn, a United States citizen, was working as a network system administrator contracted by the United States Department of Defense. Title 18, United States Code, Sections 1596, 3261, and 3271, provide for extraterritorial jurisdiction in the sex trafficking and child exploitation offenses charged.
Glenn engaged in an elaborate scheme to sexually exploit young girls between the ages of 13 and 16 years of age in 2010 and from 2012 through 2014 in Honduras, where he had moved to work at the U.S. Army Southern Command’s Joint Task Force Bravo, in Soto Cano Air Base. Evidence at trial revealed that Glenn, with the aid of coconspirators, fraudulently recruited young girls living in very poor rural villages to work as housekeepers at his home. In exchange, Glenn promised to pay a significant amount of money to the families. Shortly after the girls’ arrival to Glenn’s home in Honduras, he sexually assaulted the girls, or sought to “marry” the minors to engage in sexual acts with them. Some victims testified that Glenn gave them pills that made them sleepy and dizzy before engaging in sexual acts with them. A government expert witness testified that some pills seized by law enforcement from Glenn’s Honduras residence in March of 2014 were determined to be drugs that can be used as sedatives and date rape drugs. At trial, the Government also introduced evidence that Glenn had engaged in sexual acts with a minor female from Mexico beginning in 2002, when the minor was only 13-years-old. The minor resided with the defendant in California until 2006. In 2005, Glenn possessed electronic images of this sexual abuse in Iraq while working as a government contract worker. These images of child pornography were also recovered from Glenn’s residence in Honduras in 2014 and were the subject of the possession of child pornography charge.
Glenn was initially arrested in February 2014, and charged in the Southern District of Florida with national-security and espionage related violations (Case No. 14-CR-80031-Marra). In 2015, Glenn pled guilty to charges in that case and was sentenced to a ten-year term of imprisonment.
The child exploitation charges are the culmination of a three-year long investigation led by the FBI Miami Field Office’s Violent Crimes Against Children Squad. The case was prosecuted by Special Prosecutions Assistant United States Attorneys Barbara A. Martinez and Vanessa Singh Johannes from the United States Attorney’s Office for the Southern District of Florida.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Georgia Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Eric Hubbard, 34, of Stone Mountain, Georgia, pleaded guilty to being a felon in possession of a firearm before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on June 19, 2014, the defendant was walking down Genesee Street and was approached by a pair of Buffalo Police Officers. After refusing to show identification, the officers patted Hubbard down and detected a gun. A search revealed a 9mm semi-automatic handgun, and 13 rounds of ammunition. The defendant subsequently stated to the arresting officers that the gun was “his girl’s” and that he was carrying it to protect himself.
As a result of two prior convictions in the State of Michigan, the first in 2002 for breaking and entering, and the second in 2003 for attempting to break and enter and assaulting or resisting a police officer, the defendant is prohibited from legally possessing a firearm.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Ashan Benedict, Special Agent-in-Charge, New York Field Division and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for June 21, 2017, at 9:00 a.m. before Judge Skretny.
Four More Aliens Indicted on Immigration ViolationsRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging ANGEL BRITO-ALVAREZ, age 32, of Mexico, ELEAZAR GUTIERREZ-TORRES, age 28, of Mexico, OSCAR GEOVANI OLIVERA-HERNANDEZ, age 23, of Honduras, and GILBERTO ORDUNO-BUSTAMANTE, age 38, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, GUTIERREZ-TORRES, and OLIVERA-HERNANDEZ would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
ORDUNO-BUSTAMANTE is alleged to have been previously deported subsequent to a felony conviction (possession of a controlled substance). Therefore, if convicted, he faces a maximum imprisonment term of ten years.
BRITO-ALVAREZ is alleged to have been previously deported subsequent to an aggravated felony conviction (conspiracy to traffic in methamphetamine). Therefore, if convicted, he faces a maximum imprisonment term of twenty years.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by the Department of Homeland Security, specifically, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Four Individuals Charged with Federal Drug and Firearms Offenses Arising from 32-Pound Methamphetamine DealRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the arraignment this morning of four defendants in federal court in Albuquerque, N.M., on methamphetamine and firearms charges arising from an investigation by the ATF that culminated on Feb. 9, 2017, with the seizure of 32-pounds of methamphetamine on Feb. 9, 2017.
The four defendants, Efrain Espinoza-Pena, 44, a Mexican national illegally residing in Albuquerque, Cordelia Louisa Espinosa, 44, of Albuquerque, Edgar Madrid-Rascon, 31, a Mexican national illegally residing in Albuquerque, and Hector Hugo Magana, 33, of Redwood, Calif., are charged in a four-count indictment, which was filed on Feb. 28, 2017. All four defendants entered not guilty pleas to the indictment during their arraignment hearings.
According to the indictment, the four defendants participated in a methamphetamine trafficking conspiracy that began in April 2015 and continued until Feb. 2017, and operated in Bernalillo and Valencia Counties, N.M. The indictment also charges Espinoza-Pena and Espinosa with distributing methamphetamine in Bernalillo County on Dec. 7, 2016, and Espinoza-Pena, Madrid-Rascon and Magana with possessing distribution quantities of methamphetamine in Valencia County on Feb. 9, 2017. It also charges Madrid-Rascon with using and carrying a firearm on Feb. 9, 2017, in furtherance of a drug trafficking crime.
According to a criminal complaint filed on Feb. 2, 2017, Espinoza-Pena and Espinosa allegedly sold approximately 553 grams of methamphetamine to an ATF task force officer who was participating in an ATF undercover investigation. The transaction allegedly took place in the vicinity of the Isleta Resort and Casino on Isleta Pueblo, N.M.
A second criminal complaint, which was filed on Feb. 10, 2017, alleges that in Feb. 2017, Espinoza-Pena negotiated to sell 32 pounds of methamphetamine to ATF special agents who were part of ATF’s undercover investigation. The undercover agents allegedly met with Espinoza-Pena and Magana in the vicinity of a convenience store in Los Lunas, N.M., and then drove to the Mid Valley Airpark in Los Luna, where they met Madrid-Rascon, who arrived in a Dodge Durango. After the undercover agents observed methamphetamine located in a bag in the Durango’s back seat, they arrested Espinoza-Pena, Madrid-Rascon and Magana.
The criminal complaint alleges that during a search of the Durango, the ATF agents seized 32 packages, each of which contained a pound of methamphetamine. They also allegedly seized a loaded semi-automatic pistol and a loaded shotgun from the Durango.
Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law. If convicted, the defendants each face a statutory penalty of a mandatory minimum of ten years and a maximum of life imprisonment on the methamphetamine trafficking charges. Madrid-Rascon faces a mandatory minimum of five years of imprisonment on the firearms charge that must be served consecutive to the sentence imposed on the methamphetamine charges. Espinoza-Pena and Madrid-Rascon each will be deported after completing his prison sentence.
The case was investigated by ATF’s Albuquerque office and is being prosecuted by Special Assistant U.S. Attorney David P. Cowen.
Former Raleigh Resident Sentenced for Filing Fraudulent Federal Income Tax ReturnsRead the Press Release
NEW BERN – The United States Attorney’s Office announced that today in Federal court, Senior United States District Judge Malcolm J. Howard sentenced NEVADA T. BEARD, 45, of Charlotte, North Carolina to 24 months imprisonment, followed by 3 years of supervised release.
BEARD was named in a Criminal Information filed on October 4, 2016 which charged him with making and presenting a false, fictitious and fraudulent claim for Federal income tax refund. On November 7, 2016, BEARD pled guilty to the charge.
Michael C. Daniels, Acting Special Agent in Charge, IRS-Criminal Investigation, Charlotte Field Office, stated, "As we are in the midst of the tax filing season, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today. Today’s sentencing of Mr. Beard again emphasizes that the Internal Revenue Service and U.S. Attorney’s Office will continue their aggressive pursuit of those who attempt to defraud America’s tax system.”
According to the IRS investigation, between approximately 2013 and 2015, BEARD operated a purported tax return preparation business, “Beard Tax Solutions,” out of his then-residence in Raleigh. BEARD generated customers through word-of-mouth advertisement, referrals, and direct solicitations. After collecting a customer’s personal information, BEARD used Turbo Tax online to prepare and electronically file with the IRS a Federal income tax return that incorporated false W-2 wages, household help income, and/or other false items for the purpose of artificially inflating the tax refund amount. BEARD would not identify himself as the preparer on the face of the return, as required. The IRS investigation identified over 100 false returns attributable to BEARD. These returns generated nearly $300,000 in tax losses. Throughout the 2013 tax filing season, BEARD was on Federal supervised release for a prior firearms conviction in the Eastern District of North Carolina.
Investigation of this case was conducted by IRS-Criminal Investigation. Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Former Prince George’s County State Delegate Indicted for a Bribery Conspiracy and Wire FraudRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted former Maryland State Delegate Michael Lynn Vaughn, age 59, of Bowie, Maryland, for a bribery conspiracy in connection with a scheme in which he allegedly accepted bribes in exchange for influencing the performance of his official duties, as well as for stealing campaign funds. The indictment was returned on March 6, 2017, and unsealed late on March 7, 2017. Vaughn’s initial appearance is scheduled today at 1:00 p.m. before U.S. Magistrate Judge William B. Connelly in U.S. District Court in Greenbelt, Maryland.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to the eight count indictment, Vaughn was a Maryland State Delegate from January 2003 until January 2017, representing District 24, which covered portions of Prince George’s County, Maryland, and was the Deputy Majority Whip and a member of the Economic Matters Committee.
The indictment alleges that from January 2015 through April 2016, Vaughn conspired with former Prince George’s County Liquor Board member and later, Chief Liquor Inspector, David Dae Sok Son, liquor store owners Young Jung Paig, Shin Ja Lee, and others in order to enrich himself personally, in exchange for Vaughn performing and agreeing to perform favorable official action.
Specifically, the indictment alleges that Vaughn took over $10,000 in cash bribe payments from Paig, Lee, and others, in exchange for influencing and voting for the Sunday Sales Bill, which established up to 100 Sunday liquor sales permits in Prince George’s County for holders of Class A licenses and Class B licenses with an off-sale privilege; and the Additional Sunday Permits Bill, which raised the limit of Sunday liquor sales permits in Prince George’s County from 100 to 105, and authorized the additional five permits “only to holders of a Class B beer, wine, and liquor license with an off-sale privilege that acquired the license on or after January 1, 2016.” Vaughn voted in favor of the bills, which benefitted Paig and Lee’s liquor stores, in the Economic Matters Committee, and in the Maryland House of Delegates.
Further, the indictment alleges that from 2012 through 2016, Vaughn diverted money donated to his campaign finance committee, Friends of Michael Vaughn (FOMV), for his personal use. A candidate, such as Vaughn, is prohibited from personally making disbursements from a political committee established to promote his candidacy. According to the indictment, Vaughn withdrew campaign funds from the FOMV account to use for personal expenses, including electronically transferring money from the FOMV campaign account directly to Vaughn’s personal bank account, making payments to his personal American Express credit card account, and making payments of his personal income tax to the Internal Revenue Service. In addition, Vaughn allegedly received campaign contributions, deposited them into the FOMV account, and then converted them to his personal use without identifying the contributions on campaign finance reports made to the Maryland State Board of Elections. For example, from June 10, 2015, through November 10, 2015, at least 25 checks totaling approximately $11,175, were deposited into the FOMV account but not reported on the FOMV campaign finance report. As with the other amounts deposited into the FOMV account, the funds from these checks were then withdrawn by Vaughn and converted for his personal use. The indictment alleges that Vaughn caused the filing of fraudulent campaign finance reports with the Maryland State Board of Elections in order to conceal the scheme from FOMV and the FOMV campaign contributors. For example, as of January 14, 2015, the campaign finance report filed with the Maryland State Board of Elections showed a balance in the FOMV account of $64,462.44. The indictment alleges that the expenditures identified in the report did not include substantial cash withdrawals made by Vaughn, and that the account actual balance on that date, according to bank statements, was only $1,654.36.
If convicted, Vaughn faces a maximum sentence of five years in prison for the conspiracy; a maximum of 10 years in prison for each of four counts of bribery; and a maximum of 20 years in prison for each of three counts of wire fraud.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI, IRS-CI, and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom, Menaka S. Kalaskar, and Arun G. Rao, who are prosecuting the case.
Former N.J. Lawyer Sentenced to Four Years in Prison for $40.8 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A former New Jersey lawyer was sentenced today to 48 months in prison for participating in a conspiracy that caused lenders to release $40.8 million based on fraudulent mortgage loan applications and laundered the proceeds of the fraud, U.S. Attorney Paul J. Fishman announced.
Joseph W. Witkowski, 70, of Flemington, New Jersey, previously pleaded guilty to an indictment charging him with one count each of conspiracy to commit wire fraud and conspiracy to commit money laundering. U.S. District Judge Joseph H. Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Witkowski and his conspirators located oceanfront condominiums overbuilt by financially distressed developers in Wildwood Crest, New Jersey; premier real estate in vacation destinations in Georgia and South Carolina; and properties in New Jersey owned by financially distressed homeowners facing foreclosure. They then recruited “straw buyers” – people with good credit scores but lacking the financial resources to qualify for mortgage loans – to purchase those properties.
Witkowski and his conspirators created false documents, including fake W-2 forms, income tax returns, investment statements, and rental agreements, to make the straw buyers appear more creditworthy than they actually were. They also established numerous telephone lines for companies owned by some of the conspirators so that when a lender contacted the telephone number, the conspirators could falsely verify that a straw buyer was employed by the company listed on his or her fraudulent loan application.
Witkowski also caused fraudulent mortgage loan applications in the name of the straw buyers and supporting documents, which attributed to the straw buyers inflated income and assets, to be submitted to mortgage lenders. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings on the properties, Witkowski and his conspirators had some of the funds wired or checks deposited into various accounts that he and his conspirators controlled.
In addition to the prison term, Judge Rodriguez sentenced Witkowski to three years of supervised release and ordered restitution of $13,105570. As part of his plea agreement, he must forfeit $2,412,899, representing the proceeds of the fraud.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Former Financial Advisor Charged with Defrauding Client in Private Investment SchemeRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury has indicted a Champaign, Ill., man who previously worked as a financial advisor at a bank with falsely representing a private investment scheme to a customer that resulted in the client losing money. The indictment charges Paul Schuerger, 44, of the 2700 block of Hunters Pond Run, with mail fraud and money laundering.
A summons will be issued for Schuerger’s initial appearance in federal court in Urbana on a date to be scheduled by the U.S. Clerk of the Court.
According to the indictment, in early 2012, when Schuerger was working at a Kankakee bank as a financial advisor, he allegedly falsely represented to a bank customer that he had a private investment opportunity that would provide a 10 percent rate of return. The customer gave Schuerger $100,000 to invest as Schuerger proposed. As part of the scheme, Schuerger allegedly provided the customer with a private agreement that, in the event of default, guaranteed the customer equity rights totaling approximately $155,000 for two properties, when, in fact, Schuerger did not have such equity in the properties.
Instead of investing the money, the indictment alleges that Schuerger deposited the money into a personal bank account. Within a month, Schuerger had allegedly spent nearly all the customer’s investment of $100,000 for his personal benefit, including to pay off personal debts. According to the indictment, from April 2012 to March 2016, Schuerger lulled the customer into a false sense of security by sending the customer monthly payments by mail in the amount of $833. In May 2016, Schuerger filed a Chapter 13 petition for bankruptcy.
If convicted, the statutory maximum penalty for each count of mail fraud (five counts) is 20 years in prison, and a fine of up to $250,000; for the offense of money laundering (one count) the maximum statutory penalty is up to 10 years in prison.
The FDIC Office of Inspector General conducted the investigation. Assistant U.S. Attorney Eugene L. Miller is prosecuting the case.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former CEO of Hollywood Payroll Company Sentenced to Two Years in Federal Prison in Tax Case Related to Purloined Company FundsRead the Press Release
RIVERSIDE, California – The former CEO of Axium International, Inc., a leading Hollywood payroll services company until it collapsed in 2008, has been sentenced to two years in federal prison for defrauding the Internal Revenue Service by failing to report as income millions of dollars he skimmed from company coffers.
John Visconti, 74, of Beverly Hills, was sentenced on Monday by United States District Judge Jesus G. Bernal, who also ordered the defendant to pay $1.75 million in restitution to the Internal Revenue Service.
Visconti was convicted by a federal jury in October of tax evasion, conspiracy to defraud the IRS, and filing a false tax return.
Axium was one of the largest payroll services companies serving the entertainment industry, and its client list included studios, Fortune 500 companies and broadcasters. At its height, Axium’s gross revenues were well over $1 billion per year. As the payroll services provider and employer of record for its client entities, Axium regularly submitted payroll tax returns to the IRS and to the taxing authorities of several states. In some cases, those tax returns generated substantial refunds, which were supposed to be held in trust by Axium.
As the result of gross mismanagement, Axium collapsed in 2008 after revelations that its tax delinquencies exceeded $100 million. These tax delinquencies resulted in the IRS assessing a $15 million recovery penalty against Visconti.
According to the evidence presented at trial last fall, Visconti and Axium’s former chief operating officer – Ronald Garber, 62, of Santa Monica – used a variety of elaborate mechanisms to divert approximately $5.1 million from Axium. Additionally, Visconti took $1.9 million in corporate loans that he did not repay.
As part of the scheme, Visconti diverted tax refund checks payable to Axium and its subsidiaries into secret bank accounts the he and Garber controlled. These diverted funds were not shown on corporate books and records, and they were not disclosed to the Axium accounting department. Garber and Visconti also diverted approximately $570,000 from Axium by paying invoices submitted by a sham construction company that they controlled. The two men also conspired to have thousands of dollars in cash from Axium delivered to them on a weekly basis.
“While they were entrusted with overseeing the business activities of a company that was taking in hundreds of millions of dollars every year, these defendants were stealing millions from Axium,” said United States Attorney Eileen M. Decker. “In addition to harming their employer and its clients, the defendants defrauded the government by failing to pay taxes on their ill-gotten gains.”
Visconti and Garber caused millions of dollars to be diverted from Axium, and Visconti reported none of the funds pocketed by him on his federal income tax returns.
“Using sham entities and secret bank accounts, Mr. Visconti drained Axium of millions of dollars in cash and assets to finance his lavish lifestyle,” stated Acting Special Agent in Charge Anthony J. Orlando of IRS Criminal Investigation. “Taxpayers and businesses can be assured that IRS Criminal Investigation will continue to vigorously pursue any payroll business that collects taxes and fails to pay them over to the IRS.”
When he imposed the two-year sentence on Monday, Judge Bernal said he was balancing the seriousness of the crimes against Visconti’s recent diagnosis with a serious medical condition.
Ronald Garber previously pleaded guilty to two counts of subscribing to a false tax return and is scheduled to be sentenced later this year. Another former Axium associate – Christina Futak, 60, of Orange – pleaded guilty to tax evasion and was sentenced to three years of probation. Futak, a former tax professional, also stipulated to the entry of a civil order enjoining her from engaging in the business of tax preparation.
The Chapter 11 bankruptcy case for Axium, initially filed in January 2008, remains an active case proceeding in which thousands of documents have been filed.
The investigation into Axium was conducted by IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Angela J. Davis of the Major Frauds Section.
Former Amherst Woman Sentenced for Her Role in Plot to Murder Ex-HusbandRead 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 Debra Arno, 58, formerly of Amherst, NY, who was convicted of solicitation of interstate murder for hire, was sentenced to time served (21 months) by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that on May 26, 2015, the Kenmore Police Department received a tip about a murder for hire plan. On May 27, 2015, Kenmore Police, with the assistance of the East Aurora Police Department, identified the victims, who included Arno’s ex-husband and his current wife, and made them aware of the potential murder-for-hire plot.
On May 28, 2015, a search warrant was executed at the residence of co-defendant Lauren Frye, the person solicited by Arno to carry out the murders. Officers seized a number of items including multiple letters from Arno to Frye, photos of the intended victims, a diagram of their residence, and a schedule of their activities. In one letter written by Arno to Frye, Arno stated “I am enclosing $6000. I will give you an additional $14,000 upon completion. A total of $20,000. A man, his description and address enclosed, is to be eliminated or hurt. He lives with 2 other people. Both expendable (if there is an accident).”
During the search of Frye’s residence, officers also seized two cellular telephones and three shotguns. The cellular telephones revealed extensive text messaging between Arno and Frye. Arno repeatedly implored Frye to get the murder done.
Frye was also previously convicted and sentenced to 18 months in prison.
Today’s sentencing is the result of an investigation by the Village of Kenmore Police Department, under the direction of Chief Peter Breitnauer; the East Aurora Police Department, under the direction of Chief Ronald Krowka; and the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Florida Medical Clinic Manager and Son Arrested for “Pill Mill” Conspiracy to Distribute Oxycodone and Other Controlled SubstancesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the arrests and return of an indictment charging Yolanda Camara (47) and Justin Oliveria (26), both of Brandon, Florida, with one count of conspiracy and five counts of distributing controlled substances outside the usual course of professional medical practice and without a legitimate medical purpose from the Family Medical Express Center, Inc., a medical clinic located at 107 W. Robertson Street in Brandon, Florida. Camara is a part-owner and manager of the clinic. Oliveria, Camara’s son, is an employee of the clinic.
If convicted, each faces up to 20 years in federal prison for the conspiracy count and up to 20 years on each of the drug distribution counts. Camara is also charged with one count of lying to federal investigators during the investigation, that charge carries a maximum penalty of five years’ imprisonment. The indictment also notifies the individuals that the United States intends to forfeit a Brandon residence and seek a forfeiture money judgment of at least $709,651.75, which are alleged to be traceable proceeds of the offenses.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration and the St. Petersburg Police Department. It will be prosecuted by Assistant United States Attorney Daniel George.
Federal Indictment: Two Men Robbed Convenience Store in TopekaRead the Press Release
TOPEKA, KAN. – Two Topeka men were indicted Wednesday on federal charges of robbing a convenience store, U.S. Attorney Tom Beall said.
Marsoleno Devon Ryland, 34, and Christopher Allen Bush, 26, both of Topeka, are charged with one count of commercial robbery. The indictment alleges that on Feb. 2, 2017, they robbed Casey’s General Store at 600 S.E. Rice Road in Topeka.
If convicted, they face up to 20 years in federal prison and a fine up to $250,000. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER GRAND JURY INDICTMENTS
Marquell D. Hill, 31, Wichita, Kan., is charged with one count of commercial robbery, one count of brandishing a firearm during a robbery and one count of unlawful possession of a firearm following a felony conviction.
The indictment alleges that Hill brandished a Model AP9 handgun on March 2, 2017, when he robbed the Family Dollar at 2201 E. Central in Wichita.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on the robbery charge, not less than seven years on the brandishing charge, and up to 10 years on the other charge. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
James Carter Heard, Jr., 45, Junction City, Kan., is charged with one count of failing to register as required by the federal Sex Offender Registration and Notification Act.
He faces up to 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Henry D. McKnight, 20, who is in custody at the Shawnee County Jail, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Dec. 24, 2016, in Topeka, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Dustin Slinkard is prosecuting.
Tyler D. Vickery, 22, who is in custody in the Shawnee County Jail, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 21, 2017, in Topeka, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Troy M. Shields, 45, and Chas W. Summerville, 28, both of whom are in custody at the Shawnee County Jail, are charged with one count each of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred Feb. 21, 2017, in Topeka, Kan.
If convicted, each of them faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Federal Indictment Charges Six in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK — Six defendants have been charged in a federal indictment, unsealed this week, with felony offenses stemming from their role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Five defendants have made their initial appearance in federal court in Lubbock before U.S. Magistrate D. Gordon Bryant, Jr. and will remain in custody pending trial. One defendant remains a fugitive.
The nine-count indictment charges each of the following defendants with one count of conspiracy to distribute and possess with intent to distribute methamphetamine:
Isaias Perez-Benito, 31, of Amarillo
Juan Rodriguez Galindo, aka “Johnny,” 42, of Amarillo
Corina Villalpando, 50, of Plainview
Dusty Lee Stowers, 29, of Friona
Mona Lesa Thomas, aka “Lisa,” 52, of Lubbock
In addition, each defendant is charged with additional substantive counts of distribution of methamphetamine. Perez-Benito was an illegal alien and unlawfully in the United States at the time of the offenses charged and is charged with an additional count of illegal alien in possession of firearms.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the conspiracy count carries statutory penalties ranging from 5 years to life in federal prison and a $5 million to $10 million fine. The other substantive drug offenses carry similar penalties. If convicted of the firearm charge, Perez-Benito also faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.
The Drug Enforcement Administration, Texas Department of Public Safety, Friona Police Department, and Plainview Police Department are in charge of the investigation.
Assistant U.S. Attorney Sean Long is in charge of the prosecution.
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Ethel Investment Adviser Convicted of Stealing up to $9.5 Million in an Investment Fraud SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the conviction of a former investment adviser who stole up to $9.5 million from his victims in an investment fraud scheme.
On March 6, 2017, BRYAN LEE ADDINGTON, age 55, of Ethel, Louisiana, pled guilty to mail fraud and aggravated identity theft before Senior U.S. District Judge James J. Brady. As a result of his guilty pleas, ADDINGTON faces imprisonment, fines, restitution orders, forfeiture, and a term of supervised release following imprisonment. A sentencing date has not yet been scheduled.
As ADDINGTON acknowledged in court during his guilty plea, from in or about January 2010 through at least April 2016, he executed a fraudulent scheme to defraud victim investors through materially false and fraudulent pretenses, promises, and representations. Throughout the scheme, as ADDINGTON solicited funds from clients, he failed to invest the investment funds as promised and instead sent them false account statements often addressed from non-existent post office boxes. ADDINGTON purportedly paid distributions to his victims, but such distributions were often paid with money that actually belonged to other victim investors. ADDINGTON also admitted to forging his associate’s signature for the purpose of furthering his fraud scheme. ADDINGTON fraudulently obtained between $1.5 million and $9.5 million from his scheme; the court will determine a specific amount at or prior to ADDINGTON’S sentencing.
U.S. Attorney Green stated: “Investment fraud often leaves a devastated trail of victims in its wake. That is one of the many reasons investment fraud is, and will continue to be, a high priority for my office and the U.S. Department of Justice generally. I commend the diligent and outstanding efforts of all the prosecutors and agents who have worked on this important matter.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the Louisiana Office of Financial Institutions, in coordination with the Louisiana Department of Insurance and Louisiana State Police. It is being prosecuted by Assistant United States Attorneys Ryan Rezaei and Ryan Crosswell.
Eleven Facing Federal Indictment for a Drug Distribution Organization Allegedly Operating in Latrobe Homes Public Housing ComplexRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging eleven alleged members of a drug trafficking organization (DTO), with conspiracy to distribute and possess with the intent to distribute heroin, cocaine and crack cocaine. The indictment was returned on March 7, 2017.
The indictment charges the following defendants:
Terrell Allen, a/k/a Fat Relly and Chino, age 43, of Baltimore; Lawrence Trogdon, a/k/a Bucky, age 34, of Dundalk, Maryland;
Laroy Weaver, a/k/a Jones and Rell, age 34, of Baltimore;
Brandon Brown, a/k/a Ball, age 27, of Baltimore; Delanie McCloud, a/k/a D-money, age 31, of Baltimore; Deangelo Rouzer, a/k/a Wacky, age 35, of Gwynn Oak, Maryland;
Trey Allen, age 24, of Baltimore;
Valleria Rice, a/k/a Muk, age 26, of Baltimore;
Michael Grant, age 37, of Baltimore;
Dantre Hill, age 21, of Baltimore; and
Mavrreck Boone, a/k/a Rocie, age 24, of Baltimore.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Commissioner Kevin Davis of the Baltimore Police Department.
“Drug-dealing organizations are responsible for most of the murders and shootings in Baltimore,” said U.S. Attorney Rod J. Rosenstein.
“There is no room in Baltimore for individuals who have no regard for the safety of our communities and who disrupt the lives of law-abiding citizens. This case and its thousands of hours of investigative work represents the second phase of multiple planned enforcement efforts targeting the individuals and organizations that foment the violence that continues to plague our city,” said Danny Board, ATF Baltimore Field Division Special Agent in Charge.
According to the indictment and the previously filed criminal complaint, from June 2016 through February 22, 2017, the Allen DTO allegedly sold heroin, cocaine and crack cocaine from open-air drug shops in Baltimore City, including in the Latrobe Homes housing complex. According to the affidavit, an ongoing feud between the Allen DTO and a rival drug organization resulted in one of the defendants being shot.
As noted, the defendants were previously charged by a federal criminal complaint. Six of the defendants were arrested on February 22, 2017, two were already in custody on state charges, and one was arrested since then. In addition to the arrests on February 22, 2017, search warrants were executed at six locations believed to be connected to the conspiracy, including the residences of several of the alleged conspirators. Two defendants remain at large.
If convicted, the defendants each face a maximum sentence of 40 years in prison. Seven of the defendants have had their initial appearances and five have been detained pending trial. Two of the defendants have been released under the supervision of U.S. Pretrial Services. No court appearance has been scheduled yet on the indictment.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the ATF and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Clinton J. Fuchs and David Metcalf, who are prosecuting the case.
Dunn Man Sentenced for Possession of a Firearm by a FelonRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, United States District Judge Terrence W. Boyle sentenced CLARENCE JUNIOR YORK, 34, of Dunn, NC to 48 months of imprisonment followed by 3 years of supervised release.
YORK pled guilty on October 31, 2016 to being a Felon in Possession of a Firearm.
On April 21, 2016, the Dunn Police Department responded to a disturbance complaint. Upon arriving at the scene, officers found YORK lying on the ground partially in the roadway. The defendant appeared to be intoxicated when questioned by law enforcement. During questioning, officers saw the handle of a handgun protruding from YORK’s back pocket. The loaded firearm was recovered on the scene.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The criminal investigation of this case was conducted by the Dunn Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the North Carolina State Crime Lab. Assistant United States Attorney S. Katherine Burnette is handling the case on behalf of the government.
District Man Pleads Guilty to Sexually Abusing 17-Year-Old Victim and Committing Two Separate RobberiesRead the Press Release
WASHINGTON – Dominick Simons, 26, of Washington, D.C., pled guilty today to charges of first-degree sexual abuse, robbery, and attempted robbery, for three separate crimes against victims he accosted at or near Metro stations within a two-day span, announced U.S. Attorney Channing D. Phillips, Ron Pavlik, Chief of the Metro Transit Police, and Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD).
Simons pled guilty in the Superior Court of the District of Columbia before the Honorable Judith Bartnoff. The plea, which is contingent upon the Court’s approval, calls for a sentence within the range of 22 to 30 years in prison. In addition to prison, Simons will be required to register as a sex offender for the remainder of his life. Judge Bartnoff set a hearing for May 12, 2017, to determine whether the plea will be accepted.
According to the government’s evidence, Simons approached a 26-year-old male victim on May 21, 2016, at approximately 4:40 p.m., while both were exiting the L’Enfant Metro station in Southwest Washington. As they approached the 400 block of 7th Street SW, Simons asked the victim whether he knew of anyone interested in buying a gun that the defendant currently had in his possession. The victim answered, “No.” Simons then told the victim that he needed money and did not want to have to shoot the victim. Simons took his right hand and placed it inside of his sweatshirt to suggest that he was reaching for a firearm. The victim said that he did not have any money. Simons then directed the victim to walk to the nearest ATM, which was at a CVS store on 4th Street SW. There, the victim withdrew $100 and gave it to the defendant. Simons also took the victim’s cell phone before separating from the victim.
Two days later, at approximately 3 p.m. on May 23, 2016, Simons approached a 17-year-old male victim while walking into the Bethesda Metro station in Montgomery County, Maryland. As they approached the mezzanine level of the station, Simons asked the victim if he could use the victim’s cellular telephone. The victim said, “Yes.” The victim then gave his phone to the defendant to use, at which point Simons immediately began to walk away.
The victim followed Simons and told him to return the phone. Simons turned towards the victim and told him he was keeping the phone, that he had a “.38,” and that if the victim made any “noise” about the phone, the defendant would “blow [his] [expletive] brains out over the Metro station.” Simons opened his sweatshirt and brandished an object that the victim perceived to be the butt of a handgun. Simons then returned the phone to the victim after learning that the victim was only 17 years old. Simons, however, ordered the minor to board a train traveling to the District. He and the victim exited the train at Friendship Heights and entered the Chevy Chase Pavilion in Northwest Washington. Simons then ordered the victim to enter a bathroom and stand against the wall of a stall, at which point the defendant sexually assaulted him.
After a few moments, the victim told Simons, “No, I have to go. Let me go.” The victim pushed Simons to get out of the stall, at which point the victim patted the area of his jacket where the victim had seen the butt of a handgun. The victim said, “No. I’m done. I have to go. Let me leave.” Simons directed the victim to keep his voice down, but the minor replied, “I’ll scream if you don’t let me go now.” Simons allowed the victim to exit the bathroom.
Simons eventually walked back to the Friendship Heights Metro station, where he boarded a train towards downtown Washington. He exited the train at the Van Ness station. At approximately 5:20 p.m., he approached a 14-year-old boy in the mezzanine level of the train station and told the victim, “I have a gun on me. I don’t want to have to use it. Do you have any money or jewelry on you?” then took his right hand and placed it inside of his sweatshirt to suggest that he was reaching for a firearm. The victim responded, “No.” then asked the victim if he was in possession of a cellular telephone and a fare card. The victim removed his phone and fare card from his pocket and handed it to the defendant. used the card to open the fare gates and left the victim behind. After the victim lost sight of , he went to the station kiosk and reported the incident to a manager.
Simons was ultimately arrested at approximately 7 p.m., at the Gallery Place Metro station, where he admitted that he had the child’s phone in his pocket.
In announcing the guilty plea, U.S. Attorney Phillips, Chief Pavlik, and Acting Chief Newsham commended the work performed by those who investigated the case from the Metro Transit Police Department’s Criminal Investigations Division and Metropolitan Police Department’s First District. They also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Angelina Slagle and Victim Witness Advocate Veronica Vaughan. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Danny Nguyen and L’Shaunteé Robertson, who investigated and prosecuted the matter.
District Man Pleads Guilty to Burglary and Robbery ChargesRead the Press Release
WASHINGTON – Robert Lewis, 21, of Washington, D.C., pled guilty today to burglary and robbery charges stemming from separate incidents in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Lewis pled guilty in the Superior Court of the District of Columbia to second-degree burglary, robbery, and contempt. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of five years in prison. The Honorable Kimberley S. Knowles set a hearing for June 2, 2017 to determine whether the plea and sentence will be accepted.
The guilty plea comes less than a week after Lewis was found guilty by a jury in another case of second-degree burglary and second-degree theft, with a finding that the crimes were committed while Lewis was on pretrial release. He is to be sentenced in that case on June 2, 2017, by the Honorable Juliet McKenna. Under the Court’s voluntary sentencing guidelines, he could face an additional three to five years in prison on those charges.
In today’s guilty plea, Lewis admitted to carrying out a burglary during the daytime hours of Oct. 16, 2015 in the 700 block of Taylor Street NW. A laptop and several other items were stolen from that home. The laptop was found about six weeks later when law enforcement executed a search at Lewis’s apartment in Northeast Washington.
Lewis also admitted taking part in an armed robbery that took place at about 2:45 p.m. on June 24, 2016, in the 600 block of Buchanan Street NW. A co-defendant, Donathan Taylor, 19, pled guilty on March 3, 2017, to an armed robbery charge in the robbery, and is to be sentenced on May 19, 2017. Finally, Lewis pled guilty to a contempt charge for leaving a halfway house, where he was being held while awaiting trial, without authorization on June 22, 2016.
The verdict in the case last week followed a trial in the Superior Court of the District of Columbia on charges stemming from a burglary on April 9, 2015 at a home in the unit block of Gallatin Street NW, in which a laptop was taken. At the time of the burglary, Lewis was on pretrial release in another case. Fingerprint evidence linked him to the crime.
In announcing the plea and verdict, U.S. Attorney Phillips commended the work of those who investigated the cases from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the Latent Fingerprint Unit of the Forensic Science Laboratory of the District of Columbia Department of Forensic Sciences. Finally, he acknowledged the efforts of those who worked on the cases from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michael J. Romano, Alysa Kociuruba, and Kamil E. Shields, who prosecuted the matters leading to today’s guilty pleas, and Assistant U.S. Attorneys Kociuruba and C.B. Buente, who prosecuted the matter that led to the verdict last week.
Defendant Sentenced to 2 Years for Being a Felon in PossessionRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that William David Hardin, Jr., 48, was sentenced today to twenty-four months of imprisonment by Senior U.S. District Judge Callie V. S. Granade for being a felon in possession of a firearm. The judge ordered that Hardin undergo three years of supervised release upon completing his term of imprisonment, receive treatment for mental health and substance abuse, and pay a $100 mandatory special assessment.
On August 24, 2016, Demopolis Police Department investigators arranged for the purchase of stolen property and marijuana from Hardin. During the transaction, Hardin offered to sell a stolen .22-caliber revolver. On September 6, 2016, investigators arranged for the purchase of a Rough Rider .22-caliber revolver from Hardin. Investigators later executed a state search warrant at Hardin’s home and found inside a box of Winchester .22-caliber ammunition and a loaded .223-caliber magazine. Moreover, on September 6 investigators visited the apartment of B.W. after receiving information that he was holding a Ruger 9mm pistol to sell for Hardin. When confronted by investigators, B.W. surrendered the pistol and said that Hardin gave it to B.W. to sell on Hardin’s behalf.
Hardin is a convicted felon who is prohibited by federal law from knowingly possessing a firearm. On October 30, 1995, Hardin was convicted of forgery in the second degree in the Circuit Court of Marengo County, Alabama.
In September 2016, a federal grand jury for the Southern District of Alabama indicted Hardin on two counts of being a felon in possession in violation of 18 U.S.C. § 922(g)(1). On November 21, 2016, Hardin pleaded guilty to count two of the indictment.
The case was investigated by the Demopolis Police Department. The case was prosecuted by Assistant United States Attorney Gregory Bordenkircher.
Customs Officer Sentenced to 37 Months in Prison for Stealing Checks and Money Orders from International Mail Facility in TorranceRead the Press Release
LOS ANGELES – A longtime U.S. Customs and Border Protection (CBP) officer was sentenced on Monday to over three years in federal prison for stealing checks and money orders from international mail and depositing those items into bank accounts.
Carlos Canjura, 54, of Van Nuys, was sentenced on Monday to 37 months in prison by United States District Judge Beverly Reid O'Connell. In addition to the prison term, Judge O’Connell ordered Canjura to pay $20,145 in restitution.
A federal jury in November found Canjura guilty of conspiracy to commit bank fraud, four counts of bank fraud and four counts of possession of stolen mail.
Canjura was a CBP Officer assigned to the International Mail Facility in Torrance, where his duties included inspecting mail and parcels arriving from other countries for narcotics, counterfeit goods, and possible fraudulent checks and negotiable instruments. The evidence presented during the three-day trial showed that Canjura used his position to steal personal checks, traveler's checks and money orders from international mail.
Over the course of a year, Canjura stole more than 108 checks and money orders with a cumulative value of $249,212. He worked with co-conspirators to deposit those stolen checks and money orders, often fraudulently altering the checks before depositing them through ATMs or mobile phone applications.
“This sentence sends a strong message to those in positions of public trust that corruption will not be tolerated,” said United States Attorney Eileen M. Decker. “This defendant abused his position as a federal officer to personally enrich himself and undermined the public’s confidence in government services, including the United States Postal Service.”
“Mr. Canjura’s actions earned him a significant jail sentence for using his position to steal from Postal Service customers,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and our partners will continue to pursue evidence of corruption and hold public officials accountable for their crimes.”
Mr. Canjura has been indefinitely suspended without pay from CBP.
The investigation of this case was conducted by the Federal Bureau of Investigation, which received assistance from U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility, CBP’s Office of Professional Responsibility, and the United States Postal Service’s Office of Inspector General.
The case was prosecuted by Assistant United States Attorney Bryant Yang of the General Crimes Section and Assistant United States Attorney Ashwin Janakiram of the Major Frauds Section.
Court Orders Return Preparation Business Owner to Pay Nearly $950,000 to the United States for Preparing Fraudulent ReturnsRead the Press Release
A federal court in Orlando, Florida, has permanently barred Jason Stinson, of Longwood, Florida, from preparing federal tax returns for others and from owning or operating a tax return preparation business, following a six-day bench trial held in 2016, the Justice Department announced today. The civil order, signed by Judge Anne C. Conway of the U.S. District Court for the Middle District of Florida, also requires Stinson to disgorge to the United States $949,952.47 of funds he received from “improper and fraudulent tax return preparation.”
The court determined that Stinson owns a company called “Nation Tax Services” and had stores in four states: Birmingham and Fairfield, Alabama; St. Petersburg and Tampa, Florida; Albany and Augusta, Georgia; and Greenville and Raleigh, North Carolina. Stinson’s stores, the court found, targeted “underprivileged, undereducated poor people and earned income credit claims.”
The Earned Income Tax Credit (EITC) is a refundable tax credit for working people with low to moderate income. Eligibility depends on factors such as the amount of income, filing status, and the amount of dependents. To illustrate, the court noted that customers with earned income between $13,050 and $17,100 in tax year 2012 could receive the maximum EITC. The court found that Stinson falsified information on his customers’ returns to claim the maximum EITC amount by: “claiming bogus dependents, fabricating unreimbursed employee expenses and charitable contributions, and fabricating business income and expenses.” The court found that in many instances Stinson and his preparers fraudulently lowered a customer’s taxable income by claiming false unreimbursed business expenses in large amounts, at times more than half of what the customer earned in a given year. According to the court’s decision, “it is illogical for an individual making $35,000 a year to spend as much as half of their yearly income, around $16,000, on unreimbursed business expenses.”
Stinson’s stores charged customers in excess of $600 to prepare a single tax return, even as much as $999, sometimes without telling the customer, the court determined. Moreover, the court found that Stinson’s practice was to take his fees out of his customer’s refund, rather than charge fees upfront, meaning that “a larger refund was better for the client and better for Stinson.” Based upon the pattern of abusive claims made by Stinson and his preparers, the court ordered Stinson to pay the United States nearly $950,000 in fees he received.
“The Tax Division works with the Internal Revenue Service (IRS) to protect taxpayers from unscrupulous return preparers,” said Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “Court decisions like this show that those who prepare false tax returns will be stopped and will not profit from their fraudulent conduct.”
Acting Assistant Attorney General Hubbert thanks the Tax Division attorneys assigned to the case, Daniel Applegate, Sean Green, Alison Yewdell, Steven Woodliff, Jared Wiesner, and Joshua Levine, and the revenue agents of the IRS—Small Business/Self-Employed Division, who conducted the investigation.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Convicted Felon Charged with Possession of A FirearmRead the Press Release
PHILADELPHIA – Kevin Harris, 32, of Philadelphia, was charged today by indictment[1] with possession of a firearm by a convicted felon, announced Acting United States Attorney Louis D. Lappen. According to the indictment, on January 7, 2017, Harris was in possession of a 9mm semiautomatic pistol, loaded with 15 live rounds of hollow-point ammunition.
If convicted, Harris faces a minimum term of ten years in prison, up to three years of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Philadelphia Police Department with the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Katherine E. Driscoll.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Canadian Man Sentenced for Visa 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 Liban Mumin Afrah, 42, of Ontario, Canada, who was convicted of possessing a visa secured by fraud, was sentenced to time served and a fine of $2,000 by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that in 1996, the defendant, a Canadian citizen originally from Somalia, entered the United States from Canada and applied for asylum under the alias Ali Hussein Ali. Afrah claimed that he feared he would be harmed if he returned to Somalia because he is a member of the minority Reer Hamar tribe. At the time of the fraudulent asylum application, the defendant had already been granted asylum by Canada under his real identity and was residing in Canada. Afrah was granted a green card by the United States under the false identity Ali H. Ali and traveled between the United States and Canada using both his Canadian passport under his real identity and his fraudulently obtained United States green card. The defendant most recently renewed his green card under his fake name in June 2015.
The sentencing is the result of an investigation United States Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Cambridge Man Sentenced to 96 Months for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Michael Telford, age 47, of Cambridge, New York, was sentenced today to 96 months in prison for distributing, receiving and possessing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
The sentence was issued by U.S. District Judge Mae A. D’Agostino, and followed Telford’s guilty plea, on October 24, 2016, to a 3-count indictment charging him with distributing, receiving, and possessing child pornography.
Judge D’Agostino also imposed a 20-year term of supervised release to start after Telford is released from prison. She reserved judgment on any order of restitution, noting that 6 child pornography victims – whose images Telford possessed -- had submitted requests for restitution. As a result of his conviction, Telford will be required to register as a sex offender after leaving prison.
As part of his guilty plea, Telford admitted that on December 27, 2013, he used an online chat program to exchange videos including child pornography with a person in the United Kingdom; that between April 24, 2015 and June 4, 2015, he received video files containing child pornography using an online chat program; and that he saved child pornography on two digital devices. In sentencing Telford, Judge D’Agostino told him that his offenses made him a member of a group of people who ensure that “these children will have images of the worst times in their lives posted on the Internet,” and that these children will continue to suffer from the “endless crime” of the distribution and redistribution of those images.
This case was investigated by HSI and the New York State Police, and was prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Buffalo Man Sentenced on Sex Trafficking ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Anthony Thompson, a/k/a Fresh Tone, 36, of Buffalo, NY, who was convicted of sex trafficking of a minor, was sentenced to 188 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $399,000 in restitution to the victims in this case.
Assistant U.S. Attorneys Marie Grisanti and Trini E. Ross, who handled the case, stated that Thompson engaged in the sex trafficking of two adults and one minor, between November 2012 and September 2014. The defendant recruited and enticed the three victims to engage in commercial sex acts at his direction. One of the victims was recruited through social media. Thompson then advertised the availability of the victims on social media including “Backpage.com.” The defendant also required that some victims “walk the streets” in order to attract customers for commercial sex. As a result, Thompson received all the money earned from the commercial sex acts by the victims.Thompson pleaded guilty in April 2016 just as a federal jury was to begin hearing evidence involving the charges against him. Some of that evidence included profane and degrading rap lyrics that the defendant wrote regarding women and prostitution as well as social media postings by Thompson which glorified the sexual exploitation of women. In one posting comparing the sale of women to the sale of narcotics, the defendant stated: “U can sell it n still have it after you sell it. It goes nowhere….u don’t have to re up, or u not riskin years n jail.” Acting United States Attorney Kennedy noted that 188 months in prison equals 15 and one-half years in jail.
The sentencing is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Kevin Kelly; the Cheektowaga Police Department, under the direction of Chief David Zack; the Erie County Sheriff’s Department, under the direction of Timothy Howard; and the Western New York Human Trafficking Task Force.
Attorney General Sessions Directs Federal Prosecutors to Target Most Significant Violent OffendersRead the Press Release
Attorney General Jeff Sessions today directed federal prosecutors nationwide to engage in a focused effort to investigate, prosecute and deter the most violent offenders.
This builds on the announcement last week of the creation of the U.S. Department of Justice Task Force on Crime Reduction and Public Safety, which is central to the Attorney General’s commitment to combatting illegal immigration and violent crime, such as drug trafficking, gang violence and gun crimes, and to restoring public safety to all of the nation’s communities.
“Turning back our nation’s recent rise in violent crime is a top priority for the Department of Justice, and it requires decisive action from our federal prosecutors,” said Attorney General Sessions. “I’m urging each of them to continue working closely with their counterparts at all levels, and to use every tool we have to put violent offenders behind bars and keep our citizens safe.”
In a memo to federal prosecutors in the department’s 94 United States Attorney’s Offices, the Attorney General made clear that prosecuting violent criminals is a high priority and prosecutors should work closely with their federal, state, local and tribal law enforcement partners to target the most violent offenders in each district. Working together, law enforcement at every level should determine which venue – federal or state – would best get those identified immediately off our streets and punished appropriately for their crimes.
The memo states when federal prosecution is determined appropriate, federal prosecutors should ensure the individuals driving violent crime in their district are prosecuted using the tools at their disposal, which may include firearms offenses, including possession and straw purchasing offenses; possession of a firearm during and in relation to a violent crime or drug trafficking offense; Hobbs Act robbery; carjacking; violent crime in aid of racketeering; Racketeering Influenced and Corrupt Organizations Act; and drug offenses under the Controlled Substances Act, among others.
The Attorney General recognized that many offices are already employing these strategies and asked that those offices ensure their efforts are achieving the desired results.
Additional guidance and support in executing this priority will be forthcoming.
Memo on Commitment to Targeting Violent CrimeAirline Staffing Executive Charged with Immigration Fraud for Staff ApplicationsRead the Press Release
Assistant U.S. Attorney Nicholas W. Pilchak (619) 546-9709
NEWS RELEASE SUMMARY – March 8, 2017
SAN DIEGO – Eleno Quinteros, Jr., the former Vice President of Operations for two airline mechanic staffing companies, was arraigned today on a federal indictment charging him with making false statements in support of legal permanent resident petitions for 20 of the companies’ mechanics.
The indictment alleges that Quinteros denied taking any payments from the mechanics, when in fact Quinteros had demanded and collected hundreds of thousands of dollars in fees from the employees in connection with their legal permanent resident applications. This practice is illegal.
According to the indictment, Quinteros regularly demanded and collected thousands of dollars in fees from employees, even though employers are prohibited by law from demanding payment for their fees—including attorneys’ fees—in connection with the charged applications. A portion of the fees collected by Quinteros were paid to attorneys assisting with the applications. The rest were pocketed by Quinteros and his wife, the indictment alleges.
Quinteros was vice president of two different staffing companies, and part owner of one of them. The companies’ staff performed heavy maintenance on aircraft at a variety of locations nationwide. Quinteros was responsible for recruiting Mexican airline mechanics to work in the United States for the companies, and for helping recruits to obtain work visas such as TN or H-2B visas.
According to the indictment, after Quinteros assisted recruits in obtaining work visas to come to the United States, he then arranged to help many of them pursue legal permanent residency—for at least several thousand dollars apiece. Quinteros directed many employees to pay the money to his wife’s bank account in order to conceal its source. The indictment alleges that Quinteros has directed dozens of recruits wishing to become permanent residents to deposit or transfer hundreds of thousands of dollars to him and his wife in order to secure his assistance with the process.
Quinteros is charged in the indictment with twenty counts of making a false claim in support of an immigration application, in violation of Title 18, United States Code, Section 1546(a), and twenty counts of making a false statement to a federal agency, in violation of Title 18, United States Code, Section 1001.
“Lying to get a green card is a serious offense, particularly when the lie is an employer’s false statement that he has not extracted prohibited fees from his employees,” said Acting U.S. Attorney Alana W. Robinson. “This Office is committed to combatting immigration fraud and preventing those in a position to exploit lawful immigrants from doing so.”
“As the lead agency in this four-and-a-half year investigation, the Diplomatic Security Service demonstrated its commitment to maintaining the integrity of U.S. travel documents. We will pursue those who fraudulently use temporary work visas, like the H2B, to manipulate and exploit foreign workers for personal gain,” said Michael Bishop, special agent in charge of the DSS Los Angeles Field Office. “Diplomatic Security Service’s strong relationship with our law enforcement partners as part of the Document Benefit Fraud Task Force continues to be essential in the pursuit of justice.”
“Our message is simple -- America’s legal immigration system is not for sale,” said Joseph Macias, special agent in charge for Homeland Security Investigations (HSI) Los Angeles. “In addition to posing significant security and safety vulnerabilities, visa fraud undermines the integrity of our legal immigration process and penalizes those who abide by the law. HSI will work closely with its law enforcement partners to ensure that those who would exploit our nation’s immigration system for their own enrichment are brought to justice.”
The charges and allegations contained in an indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
DEFENDANT Case No. 17-cr-557-MMA
Eleno “Max” Quinteros, Jr. 45 years old Chula Vista, California
CHARGES
False Statement on an Immigration Document - 18 U.S.C. § 1546(a)
Maximum penalty: 10 years’ imprisonment and $250,000 fine
False Statement – 18 U.S.C. § 1001
Maximum penalty: 5 years’ imprisonment and $250,000 fine
AGENCIES
Department of State, Diplomatic Security Service
Internal Revenue Service, Criminal Investigations
16 Charged after FBI Task Force and Hartford Police Department Investigation into Hartford Street GangRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, and Hartford Police Chief James C. Rovella, today announced the unsealing of a 31-count indictment charging 16 individuals with federal narcotics offenses related to the distribution of heroin and crack cocaine in Hartford. The indictment also charges four of the defendants with firearm and robbery offenses.
The indictment, which was returned by a grand jury in Hartford on February 23, 2017, and unsealed yesterday, stems from “Operation Stamp Out,” a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford’s Parkville neighborhood, and related overdoses.
According to allegations made in court, the investigation specifically targeted criminal activity being committed by members and associates of the Orange Street Killas (OSK). OSK is a geographically-based street gang operating principally in the area of Orange, Cherry and Arbor Streets. The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015. The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that Ruben Torres and certain OSK members acquired heroin and crack cocaine from other OSK members and then sold the narcotics on the streets of Hartford.
During the investigation, on October 8, 2016, at approximately 10:12 p.m., Hartford’s ShotSpotter system detected multiple shots fired in the area of 7-9 Cherry Street. Hartford Police responded and located a male victim in the backyard of 51 Orange Street. The victim, who was suffering from three gunshot wounds to his legs, was transported to the hospital and survived the shooting. The indictment charges four defendants with firearm and robbery offenses related to this shooting.
“Gang-related drug trafficking continues to plague our inner cities,” said U.S. Attorney Daly. “A relatively small number of offenders are responsible for the vast amount of the gun violence that traumatizes our neighborhoods. These same offenders peddle the heroin that has caused the tragic spike in heroin overdose deaths in cities and towns throughout Connecticut. The U.S. Attorney’s Office and our federal law enforcement partners have a long-standing commitment to assist the Hartford Police in reducing violent crime and drug trafficking in our capital city. We thank the FBI and the HPD for their tremendous work supporting this prosecution.”
“It’s the continued dedication and commitment of agents and officers in this case that has led to the disruption of street gang activity in this Hartford neighborhood,” said FBI Special Agent in Charge Ferrick. “This joint effort in this case, and many others, will lead to a safer community.”
Charged in the indictment are:
RUBEN TORRES, a.k.a. “Rube,” “Ru,” and “T,” 25, of Hartford
ANTWANE WILLIAMS-BEY, a.k.a. “Buck,” 26, of East Windsor
MICHAEL CHAPMAN, a.k.a. “Nice” and “Mizzo,” 25, of New Britain
CHARLES TURNER, a.k.a. “Rell” and “CJ,” 26, of Hartford
TAYRENCE WILLIS, a.k.a. “T” and “T-Franklin,” 24, of Hartford
TYRRYQ RODRIGUEZ, a.k.a. “Ty,” “Little Ty” and “Tye Bangs,” 19, of Hartford
ERIC SMITH, a.k.a. “Hood,” 29, of Hartford
ADRIAN CRUZ, a.k.a. “Ray,” 28, of Hartford
BRENDAN SALMON, a.k.a. “One Eye,” 23, of Hartford
NOEL MONTANEZ, 18, of Hartford
JHOVANY VALDES, 40, of East Windsor
WILLIE DEAS, a.k.a. “Debo” and “Flee,” 21, of Hartford
MARCUS GARY, 33, of South Windsor
YOLANDA LOZADA, a.k.a. “Sexy,” 38, of East Hartford
JAMAL JOHNSON, 29, of Hartford
BUELL FRENCH, 36, of HartfordOn February 10, 2017, investigators arrested TORRES, WILLIAMS-BEY, CHAPMAN, WILLIS, RODRIGUEZ, SMITH, SALMON, MONTANEZ and VALDES. On that date, a search of TORRES’ Hartford apartment lead to the seizure of approximately 260 bags of heroin, ammunition, a gun cleaning kit and a holster. Searches of WILLIAMS-BEY’s East Windsor residence and a relative’s Hartford residence revealed approximately 900 bags of heroin and crack cocaine. Agents seized more than 300 grams of heroin and three firearms, one of which was stolen, at VALDES' East Windsor residence, and a firearm and crack cocaine at CHAPMAN’s residence.
TURNER was arrested on February 21, and SALMON and LOZADA were arrested on March 1.
CRUZ has been in custody since July 31, 2016, and DEAS has been in custody since October 28, 2016. Both were originally arrested on state charges.
GARY and JOHNSON have not been arrested are being sought.
The indictment charges each of the defendants with conspiracy to distribute, and to possess with intent to distribute, heroin and cocaine base (“crack”). If convicted of this charge, based on the type and quantity of narcotics charged, TORRES, WILLIAMS-BEY, CHAPMAN, and TURNER face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; VALDES, SMITH, CRUZ, MONTANEZ, LOZADA and GARY face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and WILLIS, RODRIGUEZ, SALMON, DEAS, JOHNSON and FRENCH face a maximum term of imprisonment of 20 years.
TORRES, WILLIAMS-BEY, CHAPMAN, TURNER, SMITH, CRUZ, SALMON, VALDES, DEAS and JOHNSON also are charged with one or more counts of possession with intent to distribute, and distribution of, various quantities of heroin and/or crack cocaine.
TORRES, DEAS, WILLIS and RODRIGUEZ are charged with interference with commerce by robbery, and conspiracy to interfere with commerce by robbery; TORRES is charged with use of a firearm in relation to a drug trafficking crime; and TORRES, DEAS and RODRIGUEZ are charged with conspiracy to possess a firearm in furtherance of a crime of violence and a drug trafficking crime. These charges relate to the October 8, 2016 shooting in the vicinity of 7-9 Cherry Street. DEAS also is charged with an additional count of interference with commerce by robbery, which relates to an attempted robbery that occurred on October 26, 2016.
Finally, the indictment charges CHAPMAN and VALDES each with one count of being felon in possession of a firearm and ammunition, and VALDES with one count of possession of a firearm in furtherance of a drug trafficking crime.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
7 March 2017
ZTE Corporation Agrees to Plead Guilty and Pay over $430.4 Million for Violating U.S. Sanctions by Sending U.S.-Origin Items to IranRead the Press Release
ZTE Corporation has agreed to enter a guilty plea and to pay a $430,488,798 penalty to the U.S. for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by illegally shipping U.S.-origin items to Iran, obstructing justice and making a material false statement. ZTE simultaneously reached settlement agreements with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). In total ZTE has agreed to pay the U.S. Government $892,360,064. The BIS has suspended an additional $300,000,000, which ZTE will pay if it violates its settlement agreement with the BIS.
Attorney General of the United States Jeff Sessions, Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney John R. Parker for the Northern District of Texas and FBI Assistant Director Bill Priestap for the Counterintelligence Division made the announcement today.
“ZTE Corporation not only violated export controls that keep sensitive American technology out of the hands of hostile regimes like Iran’s – they lied to federal investigators and even deceived their own counsel and internal investigators about their illegal acts,” said Attorney General Sessions. “This plea agreement holds them accountable, and makes clear that our government will use every tool we have to punish companies who would violate our laws, obstruct justice and jeopardize our national security. I am grateful to the Justice Department’s National Security Division, the U.S. Attorney’s Office for the Northern District of Texas and the FBI for their outstanding work on this investigation.”
“ZTE engaged in an elaborate scheme to acquire U.S.-origin items, send the items to Iran and mask its involvement in those exports. The plea agreement, which is pending before the Court, alleges that the highest levels of management within the company approved the scheme. ZTE then repeatedly lied to and misled federal investigators, its own attorneys and internal investigators. Its actions were egregious and warranted a significant penalty,” said Acting Assistant Attorney General McCord. “The enforcement of U.S. export control and sanctions laws is a major component of the National Security Division’s commitment to protecting the national security of the United States. Companies that violate these laws – including foreign companies – will be investigated and held to answer for their actions.”
“ZTE Corporation not only violated our export control laws but, once caught, shockingly resumed illegal shipments to Iran during the course of our investigation,” said U.S. Attorney Parker. “ZTE Corporation then went to great lengths to devise elaborate, corporate-wide schemes to hide its illegal conduct, including lying to its own lawyers.”
"The plea agreement in this case shows ZTE repeatedly violated export controls and illegally shipped U.S. technology to Iran," said Assistant Director Priestap. "The company also took extensive measures to hide what it was doing from U.S. authorities. This case is an excellent example of cooperation among multiple U.S. agencies to uncover illegal technology transfers and make those responsible pay for their actions."
The plea agreement, which is contingent on the court’s approval, also requires ZTE to submit to a three-year period of corporate probation, during which time an independent corporate compliance monitor will review and report on ZTE’s export compliance program. ZTE is also required to cooperate fully with the Department of Justice (DOJ) regarding any criminal investigation by U.S. law enforcement authorities. The plea agreement ends a five-year joint investigation into ZTE’s export practices, which was handled by the DOJ’s National Security Division, the U.S. Attorney’s Office for the Northern District of Texas, the FBI, the BIS and the Department of Homeland Security, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
A criminal information was filed today in federal court in the Northern District of Texas charging ZTE with one count of knowingly and willfully conspiring to violate the IEEPA, one count of obstruction of justice and one count of making a material false statement. ZTE waived the requirement of being charged by way of federal indictment, agreed to the filing of the information and has accepted responsibility for its criminal conduct by entering into a plea agreement with the government. The plea agreement, which is contingent on the court’s approval, requires that ZTE pay a fine in the amount of $286,992,532 and a criminal forfeiture in the amount of $143,496,266. The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution.
Summary of the Criminal Conduct
According to documents filed today, for a period of almost six years, ZTE obtained U.S.-origin items – including controlled dual-use goods on the Department of Commerce’s Commerce Control List (CCL) – incorporated some of those items into ZTE equipment and shipped the ZTE equipment and U.S.-origin items to customers in Iran. ZTE engaged in this conduct knowing that such shipments to Iran were illegal. ZTE further lied to federal investigators during the course of the investigation when it insisted, through outside and in-house counsel, that the company had stopped sending U.S.-origin items to Iran. In fact, while the investigation was ongoing, ZTE resumed its business with Iran and shipped millions of dollars’ worth of U.S. items there.
ZTE also created an elaborate scheme to hide the data related to these transactions from a forensic accounting firm hired by defense counsel to conduct a review of ZTE’s transactions with sanctioned countries. It did so knowing that the information provided to the forensic accounting firm would be reported to the U.S. government by outside counsel. Outside counsel was not aware of this scheme and indeed was wholly unaware that ZTE had resumed business with Iran. After ZTE informed its counsel of the scheme, counsel reported – with permission from ZTE – the conduct to the U.S. government.
The Iran Business
According to court documents, between January 2010 and January 2016, ZTE, either directly or indirectly through a third company, shipped approximately $32,000,000 of U.S.-origin items to Iran without obtaining the proper export licenses from the U.S. government. In early 2010, ZTE began bidding on two different Iranian projects. The projects involved installing cellular and landline network infrastructure. Each contract was worth hundreds of millions of U.S. Dollars and required U.S. components for the final products.
In December 2010, ZTE finalized the contracts with Iranian customers. The contracts were signed by four parties: the Iranian customer, ZTE, Beijing 8 Star and ZTE Parsian. Court documents explain that ZTE identified Beijing 8 Star (8S) as a possible vehicle for hiding its illegal shipments of U.S. items to Iran. It intended to use 8S to export U.S.-origin items from China to ZTE customers in Iran. As part of this plan, ZTE supplied 8S with necessary capital and took over control of the company.
Under the terms of the Iran contracts, ZTE agreed to supply the “self-developed equipment,” collect payments for the projects and manage the whole network. ZTE Parsian was to provide locally purchased materials and all services. 8S was responsible for “relevant third-party equipment,” which primarily meant parts that would be subject to U.S. export laws. ZTE intended for 8S to be an “isolation company,” that is, ZTE intended for 8S (rather than ZTE) to purchase the embargoed equipment from suppliers and provide that equipment under the contract in an effort to distance ZTE from U.S. export-controlled products and insulate ZTE from U.S. export violations. However, 8S had no purchasing or shipping history and no real business reputation.
Ultimately, although 8S was a party to the contracts, ZTE itself purchased and shipped the embargoed goods under the contract. In its shipping containers, it packaged the U.S. items with its own self-manufactured items to hide the U.S.-origin goods. ZTE did not include the U.S. items on the customs declaration forms, though it did include the U.S.-origin items on the packing lists included inside of the shipments.
In early 2011, when ZTE determined that the use of 8S was insufficient to hide ZTE’s connection to the illegal export of U.S.-origin goods to Iran, senior management of ZTE ordered that a company-level export control project team study, handle and respond to the company’s export control risks. In September 2011, four senior managers signed an Executive Memo, which proposed that the company identify and establish new “isolation companies” that would be responsible for supplying U.S. component parts necessary for projects in embargoed countries. The isolation companies would conceal ZTE’s role in the transshipment scheme and would insulate ZTE from export control risks.
In March 2012, Reuters published an article regarding ZTE’s sale of equipment to Iran. In response, ZTE made a decision to temporarily cease sending new U.S. equipment to Iran. By November 2013, however, ZTE had resumed its business with Iran. Beginning in July 2014, ZTE began shipping U.S.-origin equipment to Iran once again without the necessary licenses.
Instead of using 8S, however, ZTE identified a new isolation company. ZTE signed a contract with the new isolation company, which in turn signed contracts with the two Iranian customers. According to the new scheme, ZTE purchased and manufactured all relevant equipment – both U.S.-origin and ZTE-manufactured – and prepared them for pick-up at its warehouse by the new isolation company. The new isolation company then shipped all items to the Iranian customers. Shipments to Iran continued from January 2014 through January 2016.
The Obstruction and False Statement
According to court documents, despite its knowledge of an ongoing grand jury investigation into its Iran exports, ZTE took several steps to conceal relevant information from the U.S. government. It further took affirmative steps to mislead the U.S. government. In the summer of 2012, ZTE asked each of the employees who were involved in the Iran sales to sign nondisclosure agreements in which the employees agreed to keep confidential all information related to the company’s U.S. exports to Iran.
During meetings throughout late 2014, late 2015 and early 2016, outside counsel for ZTE, unaware that the statements ZTE had given to counsel for communication to the government were false, represented to the DOJ and federal law enforcement agents that ZTE had stopped doing business with Iran and therefore was no longer violating U.S. export laws. Similarly, on July 8, 2015, in-house counsel for ZTE accompanied outside counsel in a meeting with the DOJ and federal law enforcement agents and reported that ZTE was abiding by U.S. laws. That statement was also false.
ZTE also hid data related to its resumed illegal sales to Iran from a forensic accounting firm hired by defense counsel to conduct an internal investigation into the company’s Iran sales. ZTE knew the forensic accounting firm was reviewing its systems and knew that the analysis was being reported to the DOJ and U.S. law enforcement. To avoid detection of its 2013-2016 resumed illegal sales to Iran, ZTE formed the “contract data induction team” (“CDIT”). The CDIT was comprised of approximately 13 people whose job it was to “sanitize the databases” of all information related to the 2013-2016 Iran business. The team identified and removed from the databases all data related to those sales. ZTE also established an auto-delete function for the email accounts of those 13 individuals on the CDIT, so their emails were deleted every night – a departure from its normal practices – to ensure there were no communications related to the hiding of the data.
The case is being prosecuted by Deputy Chief Elizabeth Cannon of the National Security Division’s Counterintelligence and Export Control Sections and Assistant U.S. Attorney Mark Penley of the Northern District of Texas.
ZTE Information ZTE Plea Agreement Supplement ZTE Plea Agreement ZTE Factual ResumeZTE Corporation Agrees to Plead Guilty and Pay over $430.4 Million for Violating U.S. Sanctions by Sending U.S.-Origin Items to IranRead the Press Release
WASHINGTON – ZTE Corporation has agreed to enter a guilty plea and to pay a $430,488,798 penalty to the U.S. for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by illegally shipping U.S.-origin items to Iran, obstructing justice and making a material false statement. ZTE simultaneously reached settlement agreements with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). In total ZTE has agreed to pay the U.S. Government $892,360,064. The BIS has suspended an additional $300,000,000, which ZTE will pay if it violates its settlement agreement with the BIS.
Attorney General of the United States Jeff Sessions, Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney John R. Parker for the Northern District of Texas and FBI Assistant Director Bill Priestap for the Counterintelligence Division made the announcement today.
“ZTE Corporation not only violated export controls that keep sensitive American technology out of the hands of hostile regimes like Iran’s – they lied to federal investigators and even deceived their own counsel and internal investigators about their illegal acts,” said Attorney General Sessions. “This plea agreement holds them accountable, and makes clear that our government will use every tool we have to punish companies who would violate our laws, obstruct justice and jeopardize our national security. I am grateful to the Justice Department’s National Security Division, the U.S. Attorney’s Office for the Northern District of Texas and the FBI for their outstanding work on this investigation.”
“ZTE engaged in an elaborate scheme to acquire U.S.-origin items, send the items to Iran and mask its involvement in those exports. The plea agreement alleges that the highest levels of management within the company approved the scheme. ZTE then repeatedly lied to and misled federal investigators, its own attorneys and internal investigators. Its actions were egregious and warranted a significant penalty,” said Acting Assistant Attorney General McCord. “The enforcement of U.S. export control and sanctions laws is a major component of the National Security Division’s commitment to protecting the national security of the United States. Companies that violate these laws – including foreign companies – will be investigated and held to answer for their actions.”
“ZTE Corporation not only violated our export control laws but, once caught, shockingly resumed illegal shipments to Iran during the course of our investigation,” said U.S. Attorney Parker. “ZTE Corporation then went to great lengths to devise elaborate, corporate-wide schemes to hide its illegal conduct, including lying to its own lawyers.”
"The plea agreement in this case shows ZTE repeatedly violated export controls and illegally shipped U.S. technology to Iran," said Assistant Director Priestap. "The company also took extensive measures to hide what it was doing from U.S. authorities. This case is an excellent example of cooperation among multiple U.S. agencies to uncover illegal technology transfers and make those responsible pay for their actions."
The plea agreement, which is contingent on the court’s approval, also requires ZTE to submit to a three-year period of corporate probation, during which time an independent corporate compliance monitor will review and report on ZTE’s export compliance program. ZTE is also required to cooperate fully with the Department of Justice (DOJ) regarding any criminal investigation by U.S. law enforcement authorities. The plea agreement ends a five-year joint investigation into ZTE’s export practices, which was handled by the DOJ’s National Security Division, the U.S. Attorney’s Office for the Northern District of Texas, the FBI, the BIS and the Department of Homeland Security, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
A criminal information was filed today in federal court in the Northern District of Texas charging ZTE with one count of knowingly and willfully conspiring to violate the IEEPA, one count of obstruction of justice and one count of making a material false statement. ZTE waived the requirement of being charged by way of federal indictment, agreed to the filing of the information and has accepted responsibility for its criminal conduct by entering into a plea agreement with the government. The plea agreement, which is contingent on the court’s approval, requires that ZTE pay a fine in the amount of $286,992,532 and a criminal forfeiture in the amount of $143,496,266. The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution.
Summary of the Criminal Conduct
According to documents filed today, for a period of almost six years, ZTE obtained U.S.-origin items – including controlled dual-use goods on the Department of Commerce’s Commerce Control List (CCL) – incorporated some of those items into ZTE equipment and shipped the ZTE equipment and U.S.-origin items to customers in Iran. ZTE engaged in this conduct knowing that such shipments to Iran were illegal. ZTE further lied to federal investigators during the course of the investigation when it insisted, through outside and in-house counsel, that the company had stopped sending U.S.-origin items to Iran. In fact, while the investigation was ongoing, ZTE resumed its business with Iran and shipped millions of dollars’ worth of U.S. items there.
ZTE also created an elaborate scheme to hide the data related to these transactions from a forensic accounting firm hired by defense counsel to conduct a review of ZTE’s transactions with sanctioned countries. It did so knowing that the information provided to the forensic accounting firm would be reported to the U.S. government by outside counsel. Outside counsel was not aware of this scheme and indeed was wholly unaware that ZTE had resumed business with Iran. After ZTE informed its counsel of the scheme, counsel reported – with permission from ZTE – the conduct to the U.S. government.
The Iran Business
According to court documents, between January 2010 and January 2016, ZTE, either directly or indirectly through a third company, shipped approximately $32,000,000 of U.S.-origin items to Iran without obtaining the proper export licenses from the U.S. government. In early 2010, ZTE began bidding on two different Iranian projects. The projects involved installing cellular and landline network infrastructure. Each contract was worth hundreds of millions of U.S. Dollars and required U.S. components for the final products.
In December 2010, ZTE finalized the contracts with Iranian customers. The contracts were signed by four parties: the Iranian customer, ZTE, Beijing 8 Star and ZTE Parsian. Court documents explain that ZTE identified Beijing 8 Star (8S) as a possible vehicle for hiding its illegal shipments of U.S. items to Iran. It intended to use 8S to export U.S.-origin items from China to ZTE customers in Iran. As part of this plan, ZTE supplied 8S with necessary capital and took over control of the company.
Under the terms of the Iran contracts, ZTE agreed to supply the “self-developed equipment,” collect payments for the projects and manage the whole network. ZTE Parsian was to provide locally purchased materials and all services. 8S was responsible for “relevant third-party equipment,” which primarily meant parts that would be subject to U.S. export laws. ZTE intended for 8S to be an “isolation company,” that is, ZTE intended for 8S (rather than ZTE) to purchase the embargoed equipment from suppliers and provide that equipment under the contract in an effort to distance ZTE from U.S. export-controlled products and insulate ZTE from U.S. export violations. However, 8S had no purchasing or shipping history and no real business reputation.
Ultimately, although 8S was a party to the contracts, ZTE itself purchased and shipped the embargoed goods under the contract. In its shipping containers, it packaged the U.S. items with its own self-manufactured items to hide the U.S.-origin goods. ZTE did not include the U.S. items on the customs declaration forms, though it did include the U.S.-origin items on the packing lists included inside of the shipments.
In early 2011, when ZTE determined that the use of 8S was insufficient to hide ZTE’s connection to the illegal export of U.S.-origin goods to Iran, senior management of ZTE ordered that a company-level export control project team study, handle and respond to the company’s export control risks. In September 2011, four senior managers signed an Executive Memo, which proposed that the company identify and establish new “isolation companies” that would be responsible for supplying U.S. component parts necessary for projects in embargoed countries. The isolation companies would conceal ZTE’s role in the transshipment scheme and would insulate ZTE from export control risks.
In March 2012, Reuters published an article regarding ZTE’s sale of equipment to Iran. In response, ZTE made a decision to temporarily cease sending new U.S. equipment to Iran. By November 2013, however, ZTE had resumed its business with Iran. Beginning in July 2014, ZTE began shipping U.S.-origin equipment to Iran once again without the necessary licenses.
Instead of using 8S, however, ZTE identified a new isolation company. ZTE signed a contract with the new isolation company, which in turn signed contracts with the two Iranian customers. According to the new scheme, ZTE purchased and manufactured all relevant equipment – both U.S.-origin and ZTE-manufactured – and prepared them for pick-up at its warehouse by the new isolation company. The new isolation company then shipped all items to the Iranian customers. Shipments to Iran continued from January 2014 through January 2016.
The Obstruction and False Statement
According to court documents, despite its knowledge of an ongoing grand jury investigation into its Iran exports, ZTE took several steps to conceal relevant information from the U.S. government. It further took affirmative steps to mislead the U.S. government. In the summer of 2012, ZTE asked each of the employees who were involved in the Iran sales to sign nondisclosure agreements in which the employees agreed to keep confidential all information related to the company’s U.S. exports to Iran.
During meetings throughout late 2014, late 2015 and early 2016, outside counsel for ZTE, unaware that the statements ZTE had given to counsel for communication to the government were false, represented to the DOJ and federal law enforcement agents that ZTE had stopped doing business with Iran and therefore was no longer violating U.S. export laws. Similarly, on July 8, 2015, in-house counsel for ZTE accompanied outside counsel in a meeting with the DOJ and federal law enforcement agents and reported that ZTE was abiding by U.S. laws. That statement was also false.
ZTE also hid data related to its resumed illegal sales to Iran from a forensic accounting firm hired by defense counsel to conduct an internal investigation into the company’s Iran sales. ZTE knew the forensic accounting firm was reviewing its systems and knew that the analysis was being reported to the DOJ and U.S. law enforcement. To avoid detection of its 2013-2016 resumed illegal sales to Iran, ZTE formed the “contract data induction team” (“CDIT”). The CDIT was comprised of approximately 13 people whose job it was to “sanitize the databases” of all information related to the 2013-2016 Iran business. The team identified and removed from the databases all data related to those sales. ZTE also established an auto-delete function for the email accounts of those 13 individuals on the CDIT, so their emails were deleted every night – a departure from its normal practices – to ensure there were no communications related to the hiding of the data.
The case is being prosecuted by Deputy Chief Elizabeth Cannon of the National Security Division’s Counterintelligence and Export Control Sections and Assistant U.S. Attorney Mark Penley of the Northern District of Texas.
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Wyoming Man Pleads Guilty in the Murder and Assault of Crow ResidentsRead the Press Release
BILLINGS – Jesus Deniz Mendoza, 19, of Worland, Wyoming, pleaded guilty today in Billings federal court to murder, assault, and firearm charges. Under the terms of the plea agreement, the government will recommend that Mendoza serve the statutory maximum for each offense of conviction. Specifically, it will request that the court impose life sentences for two counts of second degree murder and three counts of using a firearm during and in relation to crimes of violence, 20 years for assault with intent to commit murder, and 10 years for assault with a dangerous weapon, with each sentence to run consecutively, one after the other. On the firearm offenses alone, Mendoza faces a mandatory minimum sentence of 60 years that must run consecutively to the sentences imposed for the murders and assaults. United States District Court Judge Susan P. Watters presided over the change of plea hearing and set sentencing for August 10, 2017 in Billings.
In court documents, federal prosecutors stated that if called upon to prove its case at trial, the United States was prepared to demonstrate that on July 29, 2015, at approximately 10:11 a.m., Crow Agency dispatch received a call about a shooting on Pryor Gap Road in Pryor, Montana, between the St. Charles Mission School and Plenty Coups Park. The first law enforcement officers on the scene saw a deceased male and a deceased female lying in the road, face down. Also observed at the scene was a 1990 Ford Taurus, green, bearing Wyoming license plate number 20-2934, registered to the mother of Deniz Mendoza.
The daughter of the deceased male and female was with her parents when they were shot. She was interviewed by law enforcement and stated that her mother came to her house and told her that there was a guy that needed assistance. The three took the daughter’s car and drove past the St. Charles Mission School on Pryor Gap Road, where they met up with Deniz Mendoza who was in a green vehicle that was parked on the side of the road. When they approached Deniz Mendoza, he stepped out of his vehicle, pointed a gun at them, and told them to get out of the car. They complied and got out of their car. Deniz Mendoza told them to stand behind the car and asked them for money. They told him that they did not have any money. Deniz Mendoza then told them to start walking away from their car. As they were walking, the daughter heard a gunshot. When she turned around, she saw her father lying on the road. She started running. As she was running, she heard her mother scream, but she did not turn around because she was scared. She kept running and, as she did, she felt blood running down her face, which was later determined to be the result of a bullet wound. She heard another gunshot and felt a bullet hit her in the back. She then turned around and saw Deniz Mendoza get into her car and drive off.
The daughter was able to yell for help, and she caught the attention of some individuals at the St. Charles Mission School. A car drove to her location, and she told the female driver that she had been hurt. The female driver got out of the car and walked towards the daughter’s parents lying in the road. Fearing that the unknown male would come back, the daughter got into the female driver’s car. When the daughter saw her car coming back toward her, she got behind the wheel of the female driver’s car and drove away.
Two males drove from the St. Charles Mission School to the scene after someone had informed them that gunshots were fired nearby. They were at the scene when Deniz Mendoza returned to the scene in the daughter’s car, got out of the car, and started shooting. Because the female driver was outside of her car (the daughter had driven her car away), the males pushed the female driver into a ditch and told her to play dead. Both males confirmed that Deniz Mendoza shot at the female driver and pointed the gun at all of them.
As a result of a law enforcement bulletin, the daughter’s vehicle was located near Meeteetse, Wyoming by a Park County Wyoming Sheriff’s Deputy. Deniz Mendoza was driving the vehicle.
On July 29, 2015, law enforcement conducted a recorded interview of Deniz Mendoza. During the interview, Deniz Mendoza admitted to shooting three people with a .22 caliber rifle and then driving away from the scene in the victims’ vehicle. Deniz Mendoza also described the rifle that he used, and he told the interviewing agents that the rifle was still in the vehicle that he was driving when he was arrested.
This case was prosecuted by Assistant U.S. Attorneys Lori Harper Suek, John D. Sullivan, and Joseph E. Thaggard and investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs, and the Montana Highway Patrol.
Wood County woman indicted for several bank robberiesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Davisville, West Virginia woman has been indicted for bank robberies spanning two counties, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Christine Joy Martin, 31, was charged by a federal grand jury for two counts of “Unarmed Bank Robbery.” Martin is accused of robbing Huntington Bank in Marion County of $2,000 on November 4, 2016. She is also charged with robbing United Bank in Monongalia County of $964 on December 20, 2016.
Martin faces up to 20 years in prison and a fine of up to $250,000 for each count.
Assistant U.S. Attorney Sarah W. Montoro is prosecuting the case on behalf of the government. The Morgantown Police Department and the Fairmont Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Wise, Virginia Man Pleads Guilty to Taking Ginseng from National ForestRead the Press Release
Abingdon, VIRGINIA – A Wise man, who illegally removed Ginseng plants from the National Forest, pled guilty yesterday in the United States District Court, Acting United States Attorney Rick A. Mountcastle announced.
Mark Evan Buchanan, 47, of Wise, Va., pled guilty yesterday to one count of attempting to transport, sell, receive or acquire plants in interstate commerce knowing that said plants were taken in an unlawful manner. Buchanan will be sentenced on May 25 at 10:30 a.m.
According to evidence presented in court by Special Assistant United States Attorney Kathleen Carnell, Buchanan possessed 246 wild Ginseng roots from the George Washington and Jefferson National Forrest knowing that it was illegal to take, possess, acquire and transport wild Ginseng from the National Forest.
The investigation of the case was conducted by the U.S. Forest Service. Assistant United States Attorney Special Assistant United States Attorney Kathleen Carnell prosecuted the case for the United States.