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Wednesday 11 January 2017
Buffalo Man Sentenced on Drug 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 Ronnie Ortiz, 39, of Buffalo, NY, who was convicted of attempt to possess with intent to distribute cocaine, was sentenced to 14 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Patricia Astorga, who handled the case, stated that on July 18, 2016, the United States Postal Inspection Service obtained a federal search warrant for a postal parcel that was addressed to 14 Warren Avenue in Buffalo that was mailed from Canovanas, Puerto Rico. The search revealed that the parcel contained approximately nine ounces of cocaine. The cocaine was removed from the package and replaced with sham cocaine and an electronic transmitter that would alert agents to the opening of the parcel was installed.
On July 20, 2016, an undercover U.S. Postal Inspector, acting as a mail carrier, delivered the parcel to Ortiz who signed for it and took it into the residence. Minutes later, the electronic transmitter indicated the parcel had been opened. Agents went into the residence and arrested the defendant.
The sentencing is the culmination of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Bronx Tax Preparer Sentenced to More Than 7 Years in Prison for Stealing Millions of Dollars from the U.S. Treasury Using Fraudulent Tax ReturnsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Kathy A. Enstrom, Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations (“IRS-CI”), announced that FLOR SOTO, an associate of K&S Tax Solution, Inc. (“K&S”), was sentenced today to 87 months in prison by the United States District Judge Kimba M. Wood. Soto had previously pled guilty to theft of public funds in connection with her participation in a lucrative scheme to file fraudulent and false tax returns, so as to receive tax refunds in the form of checks and wire transfers. Together with others at K&S, SOTO successfully stole over $24 million in tax refunds by submitting false tax returns using stolen identities, most of which had been stolen from residents of Puerto Rico. To date, 14 employees and associates of K&S, in addition to SOTO, have been convicted in connection with this scheme.
Manhattan U.S. Attorney Preet Bharara said: “Flor Soto and her co-defendants stole an astounding $24 million in tax refunds from the U.S. Treasury, using stolen identities to file false tax returns. Thanks to the hard work of the investigators at the IRS-CI and the prosecutors in this Office, 14 defendants charged with this audacious scheme have been held to account.”
IRS-CI Acting Special Agent in Charge Kathy A. Enstrom said: “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers as well as defrauding the government and the American taxpayers. Individuals like Flor Soto who commit identity theft and refund fraud of this magnitude will be held accountable and deserve to be punished to the fullest extent of the law.”
According to the Superseding Indictment, other documents filed in Manhattan federal court, statements made at sentencing and related court proceedings, and as established at the trial of SOTO’s co-conspirator Eliana Sarmiento, who was convicted on September 23, 2016:
Between 2008 and February 2013, SOTO and others at K&S perpetuated a large-scale fraud upon the IRS and the United States Treasury, through the filing of fraudulent and false tax returns, so as to receive tax refunds in the form of checks and wire transfers. Certain employees and associates of K&S obtained electronic filing identification numbers, or EFINs, for the purpose of filing hundreds of electronic tax returns. Those EFINs were obtained under the names and Social Security Numbers (“SSNs”) of the victims of the defendants’ identity theft scheme. SOTO and her co-conspirators used those EFINs to file tax returns bearing the names and SSNs of still more victims of identity theft. Finally, SOTO and employees of K&S used the stolen identities of children as false “dependents” on the tax returns of certain clients of K&S. SOTO acted as a recruiter of other scheme participants and a primary source of stolen identities.In these ways, SOTO and others at K&S obtained millions of dollars from the U.S. Treasury. To date, and based on a subset of EFINs associated with SOTO and her co-conspirators at K&S, the IRS has identified $281,348,627 in attempted fraudulent returns.
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In addition to the prison sentence, SOTO, 53, of Brooklyn, New York, was sentenced to three years of supervised release. Judge Wood also ordered SOTO to forfeit $24,719,724 in ill-gotten gains.
Mr. Bharara praised the IRS-CI for its work in the investigation. Mr. Bharara also expressed his appreciation to the United States Secret Service for its assistance in the investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Eun Young Choi and Andrew C. Adams are in charge of the prosecution.
Boston Man Pleads Guilty to Multiple Bank RobberiesRead the Press Release
BOSTON – A Boston man pleaded guilty today in U.S. District Court in Boston to multiple bank robberies throughout the Boston area.
Jeremy D. Woodley, 38, pleaded guilty to three counts of bank robbery. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for April 5, 2017.
On May 5, 2016, an individual later identified as Woodley, entered a branch of the Santander Bank in Boston, handed the teller a demand note indicating a robbery and that he was armed. The teller gave Woodley $599, and he fled the bank. A similar robbery occurred on May 17, 2016, at a different Santander Bank branch, and again on May 21, 2016, at a branch of Commerce Bank in Boston. The perpetrator stole $927 and $1,995, respectively.
Following the May 21st robbery, witnesses observed Woodley exit the bank and enter the rear passenger door of an awaiting motor vehicle. Law enforcement officers observed the vehicle and, after a brief chase, arrested Woodley. At the time of his arrest, Woodley was in possession of the cash stolen from Commerce Bank.
The charging statue provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing guidelines and other statutory factors
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation; and Boston Police Commissioner William Evans, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit is prosecuting the case.
Bath Man Sentenced to a Year and a Day for Attempting to Transfer Obscene Matter to MinorRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Garrett Brosnan, 25, of Bath, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to one year and one day in prison and two years of supervised release for attempting to transfer obscene matter to a minor. Brosnan pleaded guilty to the offense on September 14, 2016.
According to court records, in May of last year, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) were investigating a report that an unknown adult male had an inappropriate online interaction with a minor girl in Arizona. Investigators obtained information suggesting that the male was Brosnan. An HSI investigator in Arizona initiated an undercover online conversation with Brosnan in late May. The investigator said she was a 14-year-old girl from Arizona. On June 2, Brosnan sent the investigator a picture of himself exposing his penis.
The investigation was conducted by HSI offices in Maine and Arizona.
Barbour County man pleads guilty to illegal possession of firearmsRead the Press Release
ELKINS, WEST VIRGINIA – Roy Thomas Schroeder, 46, of Volga, West Virginia, was convicted of illegally possessing firearms, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Schroeder admitted to possessing two .22 caliber revolvers and a .22 caliber rifle after a protective order had been issued against him by the Barbour County Magistrate Court. He pled guilty to one count of “Unlawful Possession of a Firearm” and faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, and the Barbour County Sheriff’s Office investigated.
Arizona Woman Pleads Guilty to Federal Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Karla Margarita Pena, 28, of Phoenix, Ariz., pled guilty today in federal court in Albuquerque, N.M., to a heroin trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Pena was arrested in Aug. 2016, and charged in a criminal complaint with a heroin trafficking offense after the DEA seized approximately 561.90 grams of heroin from her during an interdiction investigation at the Greyhound Bus Station in Albuquerque. The heroin was contained in bundles concealed in Pena’s luggage.
Pena was subsequently indicted on Aug. 23, 2016, and charged with possession of heroin with intent to distribute on Aug. 12, 2016, in Bernalillo County, N.M.
During today’s proceedings, Pena pled guilty to a felony information charging her with possession of heroin with intent to distribute. In entering the guilty plea, Pena admitted transporting 561.90 grams of heroin to Albuquerque by concealing the heroin in bundles in a purse inside of a duffel bag. At sentencing, Pena faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting this case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Tuesday 10 January 2017
Wichita Man Pleads Guilty in Armed RobberyRead the Press Release
WICHITA, KAN. B A Wichita man pleaded guilty Tuesday of brandishing or aiding and abetting another robber who brandished a firearm during a bank robbery, U.S. Attorney Tom Beall said.
Andre Bryant, 30, Wichita, Kan., pleaded guilty to one count of aiding and abetting or brandishing a firearm in a crime of violence. In his plea, he admitted that on June 13, 2016, he and co-defendants robbed the Carson Bank at 4461 E. Douglas in Wichita. Two individuals who were disguised entered the bank, one of them brandishing a firearm. They demanded and received money before fleeing. The money they received contained a global positioning device that police used to track Bryant and the co-defendants and arrest them.
Bryant is set for sentencing April 10. Both parties have agreed to recommend a sentence of 84 months in federal prison.
Co-defendants Raishat Magill and Elijah Shelton are awaiting trial.
Beall commended the Wichita Police Department, the Sedgwick County Sheriff’s Department, the FBI and Assistant U.S. Attorney Aaron Smith for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Vice President of Local Drywall Company Pleads Guilty to Income Tax FraudRead the Press Release
COLUMBUS, Ohio – Robert E. Porter, 53, of Westerville, Ohio pleaded guilty to filing a false income tax return with the Internal Revenue Service (IRS). Porter faces a maximum of three years in prison and a fine of up to $250,000.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Troy N. Stemen, Acting Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, James Vanderberg, Special Agent in Charge, the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, Brad Geary, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General, and Marlon Miller, Special Agent in Charge, Homeland Security Investigations announced the guilty plea entered before U.S. District Judge Michael. H. Watson.
According to court documents, between 2009 and 2013 Porter was the Vice President of Porter Drywall and was also the Vice President of Black Star Drywall, Inc. Porter Drywall contracted to provide drywall installation and drywall supplies to residential and commercial contractors in Central Ohio. As well as being Vice President, Porter was a jobsite supervisor and estimator for Porter Drywall’s private and corporate clients.
Porter diverted numerous customer payments to his personal bank account. Acting on behalf of Porter Drywall, Porter provided estimates for certain projects and assigned Porter Drywall’s employees and/or subcontractors to complete the work. On “diverted income” projects, all expenses, including labor and materials, were incurred by Porter Drywall and all revenue/payments generated were deposited into Porter’s personal bank account.
“Income tax fraud is not a victimless crime,” said Troy N. Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Individuals who corruptly violate the law to further their business interests and intentionally evade paying their fair share of taxes undermine public confidence in our tax system and unfairly disadvantage businesses that play by the rules.”
Porter has also agreed to ensure that Porter Drywall subscribes to proper governmental forms and otherwise complies with all tax and immigration laws with respect to its employees.
U.S. Attorney Glassman commended the investigation of this case by the IRS, U.S. Department of Labor, U.S. Department of Housing and Urban Development, and Homeland Security Investigations, and Assistant U.S. Attorney Daniel A. Brown, who is prosecuting the case.
U.S. National Charged with Attempted Murder of U.S. Consulate Official in MexicoRead the Press Release
A U.S. national was deported from Mexico to the United States and arrested yesterday on a criminal complaint charging him with the attempted murder of a diplomat stationed at the U.S. Consulate in Guadalajara, Mexico.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service (DSS) made the announcement.
Zia Zafar, 31, of Chino Hills, California, was charged by criminal complaint with one count of attempted murder of an internationally protected person. Zafar made his initial appearance in federal court today and is scheduled for a detention hearing on Jan. 13, 2017, before U.S. Magistrate Judge John F. Anderson of the Eastern District of Virginia.
According to the criminal complaint, on Jan. 6, 2017, Zafar disguised himself and followed the Vice Consul of the U.S. Consulate in Guadalajara through a parking garage to his vehicle. After the Vice Consul got into his car and drove towards the garage exit, Zafar allegedly shot him once in the chest and fled. The Vice Consul was taken to a local hospital, where he currently remains. Zafar was subsequently detained by Mexican authorities.
The charges in the criminal complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The FBI and DSS are investigating the case in close cooperation with Mexican authorities and with assistance from the Justice Department’s Office of International Affairs, Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney William M. Sloan of the Eastern District of Virginia are prosecuting the case.
The Department of Justice gratefully acknowledges the government of Mexico, to include the Secretaría de Relaciones Exteriores, Procuraduria General de la Republica, Fiscalia del Estado de Jalisco and Instituto Nacional de Migracion for their extraordinary efforts, support and professionalism in responding to this incident.
U.S. Attorney Wifredo Ferrer Speaks About Human Trafficking in Washington, DC to Commemorate National Slavery and Human Trafficking Prevention MonthRead the Press Release
As part of National Slavery & Human Trafficking Prevention Month, Attorney General Loretta E. Lynch yesterday announced the Justice Department’s National Strategy to Combat Human Trafficking (National Strategy), as required by the 2015 Justice for Victims of Trafficking Act. U.S. Attorney for the Southern District Florida Wifredo A. Ferrer joined Attorney General Lynch for her announcement regarding the National Strategy and participated in a panel discussion about human trafficking.
“The U.S. Attorney’s Office for the Southern District of Florida is honored to have been selected as a participating member of the Justice Department’s Anti-Trafficking Coordination Teams and the Federal South Florida Human Trafficking Task Force,” stated U.S. Attorney Wifredo A. Ferrer. “These invaluable partnerships have offered the survivors assistance in connection with hard-fought criminal prosecutions and protected others from falling victim to modern-day slavery and trafficking schemes. Only through our ongoing collaboration, expanded partnerships and the implementation of prevention and enforcement strategies can we eradicate the human trafficking problem. Until then, we will continue to stand up as the outspoken voice on behalf of the victimized and against the accused, in order to hold those accountable in federal court who use fraud, force or other illicit means to victimize others. But, we cannot do this important work – alone. We rely on the members of our diverse community to continue to raise public awareness and report suspected trafficking.”
Since being appointed as U.S. Attorney for the Southern District of Florida in 2010, Wifredo A. Ferrer has made the identification and prosecution of human traffickers a priority for the Office. The Special Prosecution’s Section of the U.S. Attorney’s Office focuses on the protection of some of the most vulnerable segments of our diverse population. The Section has helped to oversee the district’s Human Trafficking and Project Safe Childhood Programs (PSC), and the Office’s Violence Reduction Partnership (VRP) Program, while prosecuting cases involving victims of violent crimes (resulting in death or serious bodily injury), human trafficking, child exploitation, and other criminal offenses. 2010, the U.S. Attorney’s Office for the Southern District of Florida has prosecuted 84 offenders in 50 human trafficking cases. These cases collectively involved the victimization of more than 70 survivors of human trafficking.
In 2011, the U.S. Department of Justice selected the Southern District of Florida as one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Labor and Homeland Security to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.
The Federal South Florida Human Trafficking Task Force, led by the U.S. Attorney’s Office and Homeland Security Investigations, works to increase public awareness, rescue victims, and prosecute traffickers. The Task Force is composed of federal agencies including, the Federal Bureau of Investigation (specifically its Crimes Against Children Task Force), State Department’s Diplomatic Security Service, U.S. Department of Labor and Internal Revenue Service. Many state and local law enforcement entities in South Florida, such as the Miami-Dade Police Department and Broward County Sheriff’s Office, are supportive task force members. Additionally, the Task Force partners with non-law enforcement entities, including the Florida Department of Children and Families, service providers, victim advocates, faith-based organizations, academic representatives and community members. In 2016, the Task Force included more than 120 non-law enforcement members. Last year alone, ACTeam and Task Force members participated in more than 140 human trafficking community outreach events.
The U.S. Attorney’s Office for the Southern District of Florida and its ACTeam is fully committed to using proactive means to combat labor, human and sex trafficking schemes. Prior to 2011, most of the human trafficking prosecutions handled by the U.S. Attorney’s Office in South Florida involved the trafficking of minor victims. Presently, the U.S. Attorney’s Office for the Southern District of Florida prosecutes more human trafficking cases involving adult survivors than ever before. The U.S. Attorney’s Office has also increased the number of human trafficking cases prosecuted in recent years.
The following are a few of the notable prosecutions that resulted from the district’s anti-trafficking collaboration:
1. Southern District Handles First Sex Trafficking by Fraud Prosecution
In 2011, Lavont Flanders and Emerson Callum were charged with sex trafficking by fraud, among other charges (Case No. 11-CR-20557-KMM). The defendants falsely and fraudulently lured women to Miami for supposed modeling auditions. Once the women arrived, they were provided with a drink that, unbeknownst to the victims, had been laced with Xanax. The women were then filmed engaged in sexual acts with Callum, who owned an adult pornography business. The victims had no idea that the defendants subsequently sold the video footage for profit. Both defendants were convicted of all criminal charges and sentenced to life in prison.
2. The Southern District Has Obtained Significant Victim Restitution Orders
In United States v. Israel Cortes-Morales, et al., Case No. 11-CR-20005-DPG, the defendants pled guilty to participating in a human trafficking conspiracy. A Miami federal judge ordered the defendants to pay $1.2 million in restitution to the five sex trafficking victims.
Thereafter, in another human trafficking case, Rafael Alberto Cadena-Sosa, a Mexican national, was sentenced in West Palm Beach to 15 years in prison and ordered to pay $1,261,563 in victim restitution for his participation in a family run sex trafficking organization (Case No. 98-CR-14015-JEM). Cadena-Sosa pleaded guilty and admitted that he, along with other family members, approached women and girls in Mexico, as young as 14 years of age, and lured them into the U.S. using false promises of legitimate jobs. The trafficking ring imposed a smuggling debt and used brutal violence and threats to compel the victims to engage in prostitution.
3. Southern District Prosecuted First Sex Trafficking Case in Country Based on Extraterritorial Jurisdiction
In 2014, Damion St. Patrick Baston, a native of Jamaica, was sentenced to 27 years in prison after having been convicted at trial of trafficking several women through Miami, Australia and the Middle East for the purpose of prostitution.(Case No. 13-CR-20914-CMA). Baston was also ordered to pay $499,270.00 in restitution to the victims. This was the first case in the country to charge the extraterritorial provision of our anti-trafficking laws and it has paved the way for other such prosecutions.
4. First Prosecution in South Florida Involving Farm Workers
In October 2016, Augustin Mendez pled guilty to conspiracy to provide and obtain forced labor (Case No. 16-CR-20170-RNS). Mendez, who was a supervisor of migrant farm workers in the tomato fields of Homestead, Florida, physically assaulted his workers, threatened and intimidated them, kept them in “debt-bondage,” and confiscated their passports and official travel documents, all to maintain control over his workforce. Mendez’s son, Ever Mendez, who was also charged in the case, pled guilty to encouraging and inducing illegal aliens to remain and reside in the United States.
5. Expanded Partnership with U.S. Department of State’s Diplomatic Security Service to Combat Human Trafficking
This past November, the coordinated efforts of our Task Force and members of our ACTeam, including representatives from the U.S. Diplomatic Security Service, obtained justice for human trafficking victims who traveled to Miami from Kazakhstan. Jeffrey Jason Cooper, a Miami Beach resident, was convicted at trial of sex trafficking after he used deception to lure unsuspecting foreign university students into the United States under false pretenses of legitimate summer jobs, only to then advertise the students to customers of his illicit prostitution and erotic massage enterprise (Case No. 16-CR-20345-KMM).
6. Additional Trafficking Prosecutions
Some of the recently convicted traffickers also include Ricky Jermaine Atkins of Key Largo, a former staff mentor at the Florida Keys Children’s Shelter, and Sandra Simon of Homestead (Case No. 14-CR-20895-MGC). While working at the shelter Atkins arranged for two residents, girls aged 15 and 16, to be brought from Tavernier to a hotel in Cutler Bay where Simon supervised their prostitution. Atkins also arranged for one of the minors to have sex with three associates in order to prepare her for prostitution. Simon pled guilty and Atkins was convicted at trial in Miami and is to be sentenced on February 17, 2017.
In another case, Shaun McKinley was convicted of sex trafficking following a Fort Lauderdale trial and sentenced to life in prison (Case No. 14-CR-60163-WPD). Within three days of meeting the 28-year-old victim in Hollywood, Florida, McKinley was acting as her pimp and physically assaulting her. The first time that the victim attempted to leave McKinley, he quickly found her, dragged her for blocks by the hair, and punished her by making her strip naked, covering her head with a pillow case, hog-trying her with extension cords and beating her with a board. The victim was taken to a hospital after another beating. A concerned nurse and an alert police officer kept McKinley from subsequently reaching the victim.
The U.S. Attorney’s Office continues to work with our law enforcement and community partners to successfully target for prosecution the offenders who perpetuate these illicit and depraved schemes.
Raising awareness, supporting initiatives that prevent human trafficking and bringing justice to those that bring harm to the vulnerable remains a top priority for the U.S. Department of Justice, Attorney General Loretta Lynch and the U.S. Attorney’s Office Southern District of Florida. The department’s anti-trafficking efforts involve numerous components engaged in a full spectrum of activities: investigations, prosecutions, services for victims, enforcement initiatives to strengthen anti-trafficking partnerships, innovative prevention efforts, capacity-building programs to advance survivor-centered anti-trafficking strategies and grant funding to state, local and tribal authorities and to non-governmental organizations.
In support of our anti-trafficking efforts, the U.S. Attorney’s Office for the Southern District of Florida will be participating in an Anti-Trafficking Consortium Summit at Broward County Community College on January 24-25, 2017. The program is free and will provide training and resources for the legal, law enforcement, medical, and local community regarding issues related to human trafficking. To register for the summit visit www.1HTC.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Two Colbert County Men Plead Guilty to Shipping Meth via U.S. MailRead the Press Release
BIRMINGHAM – A Colbert County man pleaded guilty Monday in federal court to charges related to an attempt to ship about a pound of methamphetamine from Los Angeles to the Colbert County town of Leighton using the U.S. Mail, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspection Service Inspector in Charge Adrian Gonzalez.
VENNIS MINOSA OATES Jr., 33, of Leighton, pleaded guilty before U.S. District Judge Abdul K. Kallon to one count of conspiracy to distribute and possession with intent to distribute methamphetamine and one count of attempted possession with intent to distribute methamphetamine. Oates is scheduled for sentencing April 6 in Huntsville.
A second Colbert County man charged in the case, KEELAN SHUNTEZ ROBINSON, 23, of Muscle Shoals, pleaded guilty in October to conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. He is scheduled for sentencing Jan. 26, also in Huntsville.
Oates and Robinson both were arrested in Leighton in January 2016 after they arrived at the U.S. Post Office in Leighton to pick up a suspicious package. Oates drove Robinson to the post office and waited in the car while Robinson went inside and received the package, according to Oates’ plea agreement.
U.S. postal inspectors and members of the Colbert County Drug Task Force and the Alabama Law Enforcement Agency were monitoring retrieval of the package after a resident at the address listed on the parcel initially refused its delivery. The resident said no one named Jeff Hawkins, the package’s listed recipient, lived at the Marthaler Lane address, according to Oates’ plea agreement. After the refused delivery, a postal inspector determined that neither the sender’s name nor the recipient’s name could be associated with either the California shipping address or the Leighton delivery address, and someone identifying himself as “Jeremy” began calling the Leighton Post Office inquiring about picking up the package, according to the plea agreement.
Following Oates’ and Robinson’s arrests, police obtained a search warrant authorizing them to open the package and found it contained about a pound of methamphetamine and about two pounds of marijuana. Postal inspectors subsequently analyzed inbound and outbound packages with destination addresses similar to the Leighton methamphetamine package and identified 14 inbound and two outbound packages, according to the plea agreement. Oates packaged large amounts of cash and shipped it to California to pay for the illegal drugs, the plea agreement said.
The maximum penalty for the conspiracy and distribution charges are 20 years in prison and a $1 million fine.
The Postal Inspection Service, Colbert County Drug Task Force and the ALEA State Bureau of Investigation investigated the case, which Assistant U.S. Attorney Brad Felton is prosecuting.
Two Businessmen Plead Guilty to Foreign Bribery Charges in Connection with Venezuela Bribery SchemesRead the Press Release
A former general manager and partial owner of a Florida-based energy company and an owner of multiple Texas-based energy companies each pleaded guilty today to foreign bribery charges for their roles in a scheme to corruptly secure contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Houston and Special Agent in Charge Richard Goss of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office made the announcement.
Juan Jose Hernandez Comerma (Hernandez), 51, of Weston, Florida, pleaded guilty in federal court in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of violating the FCPA. Charles Quintard Beech III, 46, of Katy, Texas, pleaded guilty to one count of conspiracy to violate the FCPA. U.S. District Judge Gray H. Miller of the Southern District of Texas accepted the guilty pleas. Sentencing for both defendants is scheduled for July 14, 2017.
According to admissions made in connection with Hernandez’s plea, Hernandez conspired with U.S.-based businessmen Abraham Jose Shiera Bastidas (Shiera) and Roberto Enrique Rincon Fernandez (Rincon) to pay bribes and other things of value to PDVSA purchasing analysts. This ensured that Shiera’s and Rincon’s companies were placed on PDVSA bidding panels, which enabled the companies to win lucrative energy contracts with PDVSA. From 2008 until 2012, Hernandez admitted that, while general manager and later partial owner of one of Shiera’s companies, he provided recreational travel and entertainment and offered bribes to PDVSA officials, including Alfonzo Eliezer Gravina Munoz (Gravina), based on a percentage of contracts the officials helped to award to Shiera’s companies. Rincon, Shiera and Gravina have all also pleaded guilty in the case.
According to admissions made in connection with Beech’s plea, from 2011 to 2012, Beech paid bribes to multiple PDVSA officials, including Gravina, in exchange for their assistance in placing Beech’s companies on PDVSA bidding panels and assisting Beech’s company or companies in receiving payment for previously awarded PDVSA contracts. Beech also admitted that he agreed with others, including PDVSA officials, to engage in financial transactions to conceal the nature, source and ownership of the bribe proceeds.
In addition to Hernandez and Beech, the Justice Department has announced the guilty pleas of six other individuals as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.
ICE-HSI is conducting the ongoing investigation with assistance from the FBI and IRS-CI. Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys (AUSA) John Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. AUSAs Kristine Rollinson and Vincent Carroll of the Southern District of Texas are handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Two Businessmen Plead Guilty to Foreign Bribery Charges in Connection with Venezuela Bribery SchemesRead the Press Release
HOUSTON – A former general manager and partial owner of a Florida-based energy company and an owner of multiple Texas-based energy companies each pleaded guilty today to foreign bribery charges for their role in a scheme to corruptly secure contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
U.S. Attorney Kenneth Magidson, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Houston and Special Agent in Charge Richard Goss of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office made the announcement.
Juan Jose Hernandez Comerma (Hernandez), 51, of Weston, Florida, pleaded guilty in federal court in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of violating the FCPA. Charles Quintard Beech III, 46, of Katy, pleaded guilty to one count of conspiracy to violate the FCPA. U.S. District Judge Gray H. Miller of the Southern District of Texas accepted the guilty pleas. Sentencing for both defendants is scheduled for July 14, 2017.
According to admissions made in connection with Hernandez’s plea, Hernandez conspired with U.S.-based businessmen Abraham Jose Shiera Bastidas (Shiera) and Roberto Enrique Rincon Fernandez (Rincon) to pay bribes and other things of value to PDVSA purchasing analysts. This ensured Shiera’s and Rincon’s companies were placed on PDVSA bidding panels, which enabled the companies to win lucrative energy contracts with PDVSA. As part of their pleas, Shiera and Rincon admitted they worked together to submit bids to provide equipment and services to PDVSA through their various companies. From 2008 until 2012, Hernandez admitted that while general manager and later partial owner of one of Shiera’s companies, he provided recreational travel and entertainment and offered bribes to PDVSA officials, including Alfonzo Eliezer Gravina Munoz (Gravina), on a percentage of contracts the officials helped to award to Shiera’s companies. Rincon, Shiera and Gravina have all also pleaded guilty in the case.
According to admissions made in connection with Beech’s plea, from 2011 to 2012, Beech paid bribes to multiple PDVSA officials, including Gravina, in exchange for their assistance in placing Beech’s companies on PDVSA bidding panels and assisting Beech’s company or companies in receiving payment for previously awarded PDVSA contracts. Beech also admitted that he agreed with others, including PDVSA officials, to engage in financial transactions to conceal the nature, source and ownership of the bribe proceeds.
Including Hernandez and Beech, eight individuals have pleaded guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Shiera and Rincon pleaded guilty before Judge Miller to multiple FCPA charges in March and June of 2016, respectively. Gravina pleaded guilty in December 2015 to conspiracy to commit money laundering and making false statements on his federal income tax return by failing to report the bribe payments he received. As part of their plea agreements, all defendants agreed to forfeit proceeds from their criminal activity.
ICE-HSI is conducting the ongoing investigation with assistance from the FBI and IRS-CI. Assistant U.S. Attorneys (AUSA) John Pearson and Robert S. Johnson of the Southern District of Texas and Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section are prosecuting the case. AUSAs Kristine Rollinson and Vincent Carroll of the Southern District of Texas are handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Two Broward County Return Preparers Sentenced to Prison in Stolen Identity Tax Fraud and Check Cashing SchemesRead the Press Release
Two Broward County return preparers were sentenced for their participation in stolen identity tax fraud and treasury check cashing schemes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Peterson Jerome, 37, of Margate, and Oldy Elisee, 42, of Miramar, were sentenced to 24 months, and 18 months in prison, respectively, to be followed by one year of supervised release, and were ordered to pay joint and several restitution in the amount of $274,425.05. The defendants previously pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Jerome and Elisee operated a tax preparation business called Freedom Tax Plus Multi Services, Inc. in Tamarac, Florida. From February 19 to April 13, 2011, the defendants filed fraudulent income tax returns with the IRS claiming $274,425.05 in fraudulent refunds using another individual’s Preparer Tax Identification Number (PTIN) and Electronic Filing Identification Number (EFIN). The other individual admitted that he allowed the defendants to use his PTIN and EFIN to file fraudulent tax returns containing victims' personal identifying information in exchange for 35% of the preparation fees of the fraudulent tax returns. Jerome and Elisee also prepared and submitted falsified Forms W-2 with many of the fraudulent tax returns.
Jerome cashed the fraudulent refunds (minus tax preparation and other fees) at a check cashing store called American Quick Cash (AQC) using fraudulent Florida Driver’s Licenses. In a separate but related case, it was determined that AQC’s owners were cashing fraudulent tax refund checks arising out of fraudulent tax refund filings containing stolen identities and that the owners received 25 to 50 percent of the checks value to negotiate the stolen checks. Jerome was identified as a “middle man” participating in this scheme at AQC to cash stolen checks.
Later in their scheme, Jerome and Elisee directed the IRS to mail the treasury checks to various addresses, and Jerome and Elisee cashed the checks at AQC.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case was prosecuted by Assistant U.S. Attorney Alicia E. Shick.
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.
Twin Falls Man Sentenced to 63 Months in Prison for Possession of Child PornographyRead the Press Release
BOISE – Richard Roy Sexton, 73, of Twin Falls was sentenced today in United States District Court to 63 months in prison followed by 5 years of supervised release for possession of child pornography, U.S. Attorney Wendy J. Olson announced. Sexton pleaded guilty on October 11, 2016.
According to the plea agreement, in August of 2015, agents with the United States Postal Inspectors Service (USPIS) and the Idaho Internet Crimes Against Children Task Force (ICAC) contacted Sexton at his residence in Twin Falls, Idaho. Sexton admitted to downloading images of minors engaged in sexually explicit conduct from the internet, and gave permission for agents to seize and search his computer and an external hard drive which contained the images. In October of 2015, Sexton visited a Verizon Wireless store in Twin Falls seeking assistance with an electronic tablet. An employee of the store observed child pornography on the tablet, and contacted the National Center for Missing and Exploited Children (NCMEC). NCMEC provided the information to the USPIS and ICAC investigators, who again contacted Sexton, and obtained permission to seize the tablet. Agents later obtained a search warrant to search the tablet.
In his plea agreement, Sexton admitted to possessing at least 360 images and 40 videos containing images of minors engaged in sexually explicit conduct on his computer, external hard drive, and tablet. The sexually explicit images included images of prepubescent minors. The electronic devices also contained evidence that Sexton was searching for and accessing images of child pornography via the internet. NCMEC subsequently identified 332 images containing known, identifiable victims from 34 known series of child pornography.
Chief U.S. District Judge B. Lynn Winmill also ordered Sexton to forfeit the computer, external hard drive, and tablet used in the commission of the charged offense. As a result of his conviction, Sexton is required to register as a sex offender.
The case was investigated by the United States Postal Inspectors Service and the Idaho Internet Crimes Against Children Task Force (ICAC), and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Trafficking Nearly 10 Kilos of Meth Lands Man Hefty Prison SentenceRead the Press Release
CORPUS CHRISTI, Texas - A U.S. citizen who was living in Matamoros has been ordered to federal prison following his conviction of possession with intent to distribute methamphetamine, announced U.S. Attorney Kenneth Magidson. Francisco Moreno, 22, pleaded guilty Oct. 3, 2016.
Today, United States District Judge Nelva Gonzalez Ramos handed Moreno a 78-month sentence to be immediately followed by five years of supervised release.
On July 20, 2016, Moreno drove a motor vehicle to the Sarita checkpoint. During primary inspection, a service K9 alerted to the presence of contraband coming from the vehicle. After the vehicle was examined, agents discovered and removed 10 vacuum-sealed bundles of methamphetamine from the door panels. Laboratory analysis determined the methamphetamine weighed 9.9 kilograms and had a purity level of 96%.
In federal custody since his arrest, Moreno will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Border Patrol conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Three Former Traders for Major Banks Indicted in Foreign Currency Exchange Antitrust ConspiracyRead the Press Release
A federal grand jury returned an indictment against three former traders of major banks for their alleged roles in a conspiracy to manipulate the price of U.S. dollars and euros exchanged in the foreign currency exchange (FX) spot market, the Justice Department announced today.
The one-count indictment, filed in the U.S. District Court for the Southern District of New York, charges Richard Usher (former Head of G11 FX Trading-UK at an affiliate of The Royal Bank of Scotland plc, as well as former Managing Director at an affiliate of JPMorgan Chase & Co.), Rohan Ramchandani (former Managing Director and head of G10 FX spot trading at an affiliate of Citicorp) and Christopher Ashton (former Head of Spot FX at an affiliate of Barclays PLC) with conspiring to fix prices and rig bids for U.S. dollars and euros exchanged in the FX spot market.
“Whether a crime is committed on the street corner or in the corner office, no one gets a free pass simply because they were working for a corporation when they broke the law,” said Deputy Attorney General Sally Q. Yates. “Today’s indictment reiterates our commitment to holding individuals accountable for corporate misconduct.”
“The charged conspiracy involved competitors manipulating the exchange rate for the hundreds of billions of dollars traded on foreign exchange markets for their benefit and to the detriment of their customers,” said Principal Deputy Associate Attorney General Bill Baer. “We previously secured criminal convictions of the financial institutions involved in the misconduct. Today we seek to hold accountable the individuals who conspired on their behalf.”
“These former bank traders are alleged to have gained an unfair advantage on their counterparts by committing corporate fraud involving the manipulation of the foreign currency exchange,” said Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office. “Their actions affected worldwide trading positions in the global marketplace. Today’s announcement reinforces the FBI’s commitment to investigate and prosecute individuals responsible for criminally interfering with the global financial markets.”
The indictment follows the May 20, 2015 agreements of Barclays PLC, Citicorp, JPMorgan Chase & Co., and The Royal Bank of Scotland plc to plead guilty to conspiring to fix prices and rig bids for U.S. dollars and euros exchanged in the FX spot market, and to pay criminal fines totaling more than $2.5 billion. On Jan. 5, 2017, the federal district court in Connecticut accepted those plea agreements and sentenced the banks accordingly.
The charge in the indictment carries a maximum penalty of 10 years in prison and a $1 million fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million.
According to the indictment, from at least December 2007 through at least January 2013, Usher, Ramchandani and Ashton (along with unnamed co-conspirators) conspired to fix prices and rig bids for the euro – U.S. dollar currency pair. Called “the Cartel” or “the Mafia,” this group of traders participated in telephone calls and electronic messages, including near-daily conversations in a private electronic chat room, to carry out their conspiracy. Their anticompetitive behavior included colluding around the time of certain benchmark rates known as fixes, such as coordinating their orders and trading to manipulate the price of the currency pair by the time of the fix. In another example of collusion, the conspirators coordinated their orders and trading to manipulate the price of the currency pair, such as by refraining from entering orders or trading at certain times.
The charge in the indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty.
The Department of Justice has now charged six individuals in the FX investigation. On July 20, 2016, fraud charges were brought by the Justice Department’s Criminal Division against two FX executives for conspiring to defraud a client of their bank through a front running scheme. On Jan. 4, 2017, an antitrust charge and plea agreement were announced for a trader in connection with a conspiracy to manipulate emerging market FX rates.
This investigation is being conducted by the FBI’s Washington Field Office. This prosecution is being handled by the Antitrust Division’s New York Office. The Criminal Division’s Fraud Section also provided substantial assistance in this matter.
The charge in this case was brought in connection with the President Obama’s Financial Fraud Enforcement Task Force. The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.
For more information about the task force, please visit www.StopFraud.gov. Anyone with information concerning price fixing or other anticompetitive conduct in the FX market should contact the Antitrust Division’s Citizen Complaint Center at (888) 647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at (415) 553-7400.
Usher et al. Indictment
Texas Man Sentenced to 10 Years in Prison for Attempting to Entice a Minor for SexRead the Press Release
PITTSBURGH - A former resident of Arlington, Texas, has been sentenced in federal court to 120 months imprisonment, followed by 10 years of supervised release, on a charge of attempted coercion and enticement of a minor to engage in illegal sexual activity, Acting United States Attorney Soo C. Song announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Ray Wickliffe Howland, 57, of Arlington, Texas.
According to information presented to the court, the court was advised that on or about June 25, 2015, Howland used facilities and means of interstate and foreign commerce, specifically a computer, an iPad, the internet and the telephone, to knowingly attempt to persuade, induce, entice, and coerce a minor to engage in sexual activity.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Song commended the Office of the Pennsylvania Attorney General and the Federal Bureau of Investigation for conducting the investigation leading to the successful prosecution of Howland.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Texas Man Pleads Guilty in New Mexico to Misdemeanor Theft Charge for Stealing Prescription Pain MedicationRead the Press Release
Michael Adams, 52, of Horizon, Texas, pled guilty today in Las Cruces, N.M., to a federal misdemeanor theft of government property charge arising out of his theft of prescription pain medication being shipped by the Veterans Administration through the United Parcel Service (UPS). At the time he committed the crime, Adams was employed by UPS.
Adams was charged by a misdemeanor information filed on Dec. 12, 2016, with theft of government property on Aug. 21, 2013. According to the information, Adams committed the crime in Otero County, N.M.
During today’s change of plea hearing, Adams pled guilty to the misdemeanor information and admitted that on Aug. 21, 2013, while employed by UPS in Alamogordo, N.M., he stole a package containing prescription pain medication sent by the Veterans Administration through the UPS.
Under the terms of his plea agreement, Adams will be sentenced to two years of probation and will pay $537.54 in restitution to the victim of his crime. A sentencing hearing has yet to be scheduled.
This case was investigated by the Department of Veterans Affairs, Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office 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.
Syed Raheel Farook Pleads Guilty in Immigration Fraud CaseRead the Press Release
RIVERSIDE, California – Syed Raheel Farook, the brother of deceased San Bernardino attacker Syed Rizwan Farook, pleaded guilty today in federal court in an immigration fraud case stemming from the investigation of the December 2, 2015 attack in San Bernardino in which 14 people died and 22 were wounded.
Syed Raheel Farook, 31, of Corona, California, pleaded guilty to one count of conspiracy to commit immigration fraud before United States District Judge Jesus Bernal.
As a result of today’s guilty plea, Syed Raheel Farook faces a statutory maximum sentence of five years in federal prison, a fine of up to $250,000 and up to three years of supervised release. Judge Bernal is scheduled to sentence the defendant on November 13.
Syed Raheel Farook; his wife, Tatiana Farook; and his sister-in-law, Mariyah Chernykh, were charged in an indictment returned by a federal grand jury in April 2016. All three were charged with conspiracy to knowingly make under oath a false statement with respect to a material fact in an application, affidavit, and other document required by the immigration laws and regulations of the United States, and to commit perjury.
The indictment alleges that, beginning in late 2014 and continuing through February 2016, the three defendants conspired with Enrique Marquez Jr. to obtain immigration benefits for Chernykh by arranging and carrying out a fraudulent marriage between Chernykh, a Russian citizen, and Marquez, a United States citizen. The conspirators allegedly made false statements in immigration documents submitted on Chernykh’s behalf.
In addition to the conspiracy count, Chernykh is charged in the indictment with two counts of making false statements under oath in immigration documents and one count of making false statements to federal agents about the scheme. A trial for Tatiana Farook and Chernykh is currently scheduled for March 28.
Marquez was charged in a separate federal indictment with participating in the marriage fraud scheme, as well as plotting with San Bernardino attacker Syed Rizwan Farook in 2011 and 2012 to carry out attacks in the Inland Empire. Marquez is also charged with supplying two firearms that Syed Rizwan Farook and his wife, Tashfin Malik, later used in the San Bernardino attack and during the shootout with law enforcement that ended in the couple’s death. Marquez is scheduled to go on trial before Judge Bernal on September 26.
“Today’s guilty plea is the result of the thorough investigation into the brutal attack in San Bernardino that took the lives of 14 innocent Americans and tragically affected many more shooting victims and family members,” said United States Attorney Eileen M. Decker. “Law enforcement and prosecutors in my office continue to seek justice for the victims and the entire community of San Bernardino by uncovering and prosecuting all of the criminal activity related to the terrible events of December 2. As I have said many times, we are committed to leaving no stone unturned in this investigation.”
“The false statements Mr. Farook admittedly made allowed others to cut the line to attain citizenship ahead of legitimate applicants,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This guilty plea should serve as a message for anyone contemplating similar activity that flouting the immigration laws of the United States has serious consequences.”
“Let there be no doubt, immigration benefit fraud is a serious crime,” said Joseph Macias, special agent in charge for HSI Los Angeles. “When people use false or misleading information in order to obtain an immigration benefit for themselves or others, it creates a security vulnerability that could be exploited by criminals and other individuals who pose a serious danger to our community. As this case makes clear, HSI will aggressively target those who conspire to corrupt the integrity of America’s legal immigration system, putting our nation’s security at risk in the process.”
The investigation in this case was conducted by the Joint Terrorism Task Force in Riverside, which includes the Federal Bureau of Investigation; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the San Bernardino Police Department; the San Bernardino County Sheriff’s Department; and the United States Attorney’s Office.
These cases are being prosecuted by Assistant United States Attorneys Jay H. Robinson, Melanie Sartoris and Deirdre Z. Eliot of the Terrorism and Export Crimes Section with substantial assistance from Trial Attorney C. Alexandria Bogle of the Justice Department’s Counterterrorism Section.
Stevenson, Alabama, Police Chief Sentenced for Assaulting and Failing to Protect ArresteeRead the Press Release
The Justice Department announced today that the former Chief of Police of Stevenson, Alabama, Daniel Winters, 56, was sentenced to 27 months in prison for beating an arrestee and for standing by while Winters’ friend beat the arrestee.
On July 14, 2016, a federal jury convicted Winters of two counts of violating the individual’s civil rights. Winters was sentenced today by U.S. District Court Judge Madeline Hughes Haikala of the Northern District of Alabama.
According to evidence presented at trial, on March 22, 2015, Winters and a civilian friend went to a residence to investigate suspicions that property had been stolen from the friend’s business and was located at the residence. Upon arrival, Winters and his friend entered the residence without a search warrant and encountered the victim, identified as D.F. Winters and his friend then began to beat D.F. The beating moved outside where Winters and his friend continued to strike and kick the victim in front of the residence. Over the course of approximately five minutes, Winters not only participated in the beating, but stood by watching his friend beat D.F. and did nothing to stop it. A passing motorist called 911 to report the beating. D.F. was left bloody with wounds to his face, chest and back, and was taken to the jail at the Stevenson Police Department. While at the jail, D.F. began to spit up blood. A jailor requested Winters’ permission to call an ambulance, but Winters refused the request. Eventually, the jailor received permission from another supervisor and D.F. was transported to a hospital, where he received medical attention.
“Our society entrusts law enforcement leaders with the profound responsibility of protecting people from harm,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “When law enforcement officials abuse the individuals they swore an oath to protect, they threaten the reputation of their colleagues in the profession who do their jobs honorably and with integrity. This sentencing makes clear that no one, not even a police chief, is above the law.”
“Police department leadership must set the example and uphold the integrity of their departments and meet the rightful expectation of every citizen that law enforcement officers will act in accordance with the laws they have sworn to uphold,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “In this case, a police chief criminally abused his badge in order to benefit a friend and inflict violence on an individual in violation of the Constitution. Our society cannot allow that kind of abuse of power and authority to go unpunished.”
The FBI and Alabama’s State Bureau of Investigation conducted the investigation. Deputy Chief Laura Hodge of the Northern District of Alabama and Trial Attorney Samantha Trepel of the Civil Rights Division’s Criminal Section prosecuted the case.
Stevenson Police Chief Sentenced to Prison for Assaulting and Failing to Protect ArresteeRead the Press Release
BIRMINGHAM – A federal judge today sentenced former Stevenson, Ala., Police Chief DANIEL WINTERS, 56, to more than two years in prison for beating an arrestee and for standing by while Winters’ friend beat the arrestee, announced U.S. Attorney Joyce White Vance and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.
U.S. District Court Judge Madeline Hughes Haikala sentenced Winters to 27 months in prison and ordered him to pay restitution of $12,970 on two counts of violating an individual’s civil rights. A federal jury convicted Winters on those charges in July 2016. Winters must report to prison March 7.
According to evidence presented at trial, on March 22, 2015, Winters and a civilian friend went to a residence to investigate suspicions that property had been stolen from the friend’s business and was located at the residence. Upon arrival, Winters and his friend entered the residence without a search warrant and encountered the victim, identified as D.F. Winters and his friend then began to beat D.F. The beating moved outside where Winters and his friend continued to strike and kick the victim in front of the residence. Over the course of approximately five minutes, Winters not only participated in the beating, but stood by watching his friend beat D.F. and did nothing to stop it. A passing motorist called 911 to report the beating. D.F. was left bloody with wounds to his face, chest and back, and was taken to the jail at the Stevenson Police Department. While at the jail, D.F. began to spit up blood. A jailor requested Winters’ permission to call an ambulance, but Winters refused the request. Eventually, the jailor received permission from another supervisor and D.F. was transported to a hospital where he received medical attention.
“Our society entrusts law enforcement leaders with the profound responsibility of protecting people from harm,” Gupta said. “When law enforcement officials abuse the individuals they swore an oath to protect, they threaten the reputation of their colleagues in the profession who do their jobs honorably and with integrity. This sentencing makes clear that no one, not even a police chief, is above the law.”
“Police department leadership must set the example and uphold the integrity of their departments and meet the rightful expectation of every citizen that law enforcement officers will act in accordance with the laws they have sworn to uphold,” Vance said. “In this case, a police chief criminally abused his badge in order to benefit a friend and inflict violence on an individual in violation of the Constitution. Our society cannot allow that kind of abuse of power and authority to go unpunished.”
The FBI and Alabama’s State Bureau of Investigation conducted the investigation. U.S. Attorney’s Office Deputy Chief Laura Hodge and Trial Attorney Samantha Trepel of DOJ’s Civil Rights Division’s Criminal Section prosecuted the case.
Statement by Attorney General Loretta E. Lynch on the Sentencing of Dylann RoofRead the Press Release
Attorney General Loretta E. Lynch released the following statement on the sentencing of Dylann Roof:
“On June 17, 2015, Dylann Storm Roof sought out and opened fire on African-American parishioners engaged in worship and bible study at Emanuel African Methodist Episcopal Church in Charleston, South Carolina. He did so because of their race. And he did so to interfere with their peaceful exercise of religion. The victims in the case led lives as compassionate civic and religious leaders; devoted public servants and teachers; and beloved family members and friends. They include a young man in the bloom of youth and an 87-year-old grandmother who still sang in the church choir. We remember those who have suffered, and especially those that lost their lives: Cynthia Graham Hurd, 54; Susie Jackson, 87; Ethel Lance, 70; Rev. DePayne Middleton Doctor, 49; Rev. Clementa Pinckney, 41; Tywanza Sanders, 26; Rev. Daniel Simmons Sr., 74; Sharonda Coleman-Singleton, 45; and Myra Thompson, 59.
“Today, a jury of his peers considered the actions Roof took on that fateful day, and they rendered a verdict that will hold him accountable for his choices.
“No verdict can bring back the nine we lost that day at Mother Emanuel. And no verdict can heal the wounds of the five church members who survived the attack or the souls of those who lost loved ones to Roof’s callous hand. But we hope that the completion of the prosecution provides the people of Charleston – and the people of our nation – with a measure of closure. We thank the jurors for their service, the people of Charleston for their strength and support, and the law enforcement community in South Carolina and throughout the country for their vital work on this case.”
Stafford Springs Man Sentenced to 18 Months in Federal Prison for Defrauding U.S. VeteransRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN J. SIMON, JR., also known as “Buzzy Simon,” 69, of Stafford Springs, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 18 months of imprisonment, followed by three years of supervised release, for defrauding U.S. veterans.
According to court documents and statements made in court, from March 2009 to August 2010, SIMON, a Vietnam War veteran, engaged in a scheme to defraud four military veterans by representing that, in exchange for money, he could assist them in obtaining increased benefits from the Department of Veterans Affairs (“VA”). The veterans suffer from service-related disabilities and/or are chronically ill. SIMON falsely represented that the money the veterans provided to him would be used to pay for the services of an attorney or other expenses. With respect to one veteran, SIMON also falsely told him that he would assist the veteran in obtaining Social Security benefits.
SIMON did not initiate any claims for the four veterans and he did not incur any legal or other expenses on behalf of the veterans. Rather, he kept the money for his personal use.
As part of the plea agreement, SIMON has agreed that he defrauded 11 other military veterans and one non-veteran by representing that he could obtain new or increased benefits from the VA or Social Security Administration.
In total, SIMON defrauded 16 victims of approximately $525,521.
SIMON also structured approximately $36,000 in cash deposits into his bank account from October 2009 to June 2010. The funds structured were payments he had received from the fraud scheme. At the time, SIMON knew that the bank was required to issue a report for a currency transaction in excess of $10,000, and that by conducting his financial transactions in amounts less than $10,000.01, he intended to evade the transaction reporting requirements.
Federal law requires all financial institutions to file a Currency Transaction Report (“CTR”) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
SIMON was arrested on a criminal complaint on May 15, 2013. On October 3, 2016, he pleaded guilty to one count of mail fraud and one count of structuring currency transactions.
In October 2010, the IRS seized $210,085.58 from SIMON’s bank account. The seized funds will be used to pay restitution to SIMON’s victims. Judge Shea ordered SIMON to pay $315,435.42 in additional restitution.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division and the U.S. Department of Veterans Affairs, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Southern California Marijuana Store Owner Pleads Guilty to Drug TraffickingRead the Press Release
SACRAMENTO, Calif. — Hung C. Nguyen, 40, of Moorpark, pleaded guilty today to manufacturing marijuana as part of a larger conspiracy to distribute marijuana throughout California, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Nguyen conducted a marijuana cultivation business with Nathan Hoffman, a Los Angeles attorney with offices on Wilshire Boulevard, and others using marijuana grown in Sutter County and Sacramento. Nguyen operated two Southern California marijuana stores, the Canna Clinic of Garden Grove and the South Bay Canna Clinic in Torrance. Nguyen was a distributor for the marijuana produced in Northern California. According to the plea agreement, one of Nguyen’s dispensary’s could sell more than $10,000 of marijuana in a single busy day.
This case is part of investigations into industrial-scale marijuana cultivation conspiracies operating within the Eastern District of California. A total of 12 defendants were indicted for crimes relating to their marijuana cultivation in this case and in two related cases (United States v. Yan Ebyam et al. 2:11-cr-275-JAM and 2:11-cr-276-JAM). All defendants except for Hoffman have pleaded guilty to participation in the conspiracies, and most have been sentenced to prison. Hoffman is scheduled for trial on January 23, 2017. The charges against Hoffman are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
According to court documents, on June 21, 2011, federal and state agents executed seven federal search warrants in Sacramento, Sutter, and Tehama Counties. Two of these warrants were executed at the sites of large, commercial greenhouses located at the Jopson Ranch in Rio Oso and at the Cal-Nevada Wholesale Florist in Sacramento. Law enforcement officers seized over 5,000 marijuana plants in all stages of growth from these two locations: approximately 2,168 plants at Jopson Ranch and approximately 3,305 plants at Cal-Nevada Florist. Two leaders arrested at the grow sites, Yan Ebyam and Aimee Sisco admitted their involvement in the marijuana cultivation business.
Sentencing for Nguyen is set for April 18, 2017, by U.S. District Judge John A. Mendez. Nguyen faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
These three cases are the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the Sutter County Sheriff’s Department, and the California Bureau of Narcotic Enforcement. It was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. Assistant U.S. Attorneys Jason Hitt, Todd A. Pickles, and Samuel Wong are prosecuting the cases.
Somerset County Man Charged with Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A resident of Stoystown, Pa. was indicted today by a federal grand jury in Johnstown on a charge of possession of child pornography, Acting United States Attorney Soo C. Song announced today.
The indictment named Robert G. Landsbach, 35, of Stoystown, Pa., as the sole defendant.
According to the indictment presented to the court, on October 5, 2016, he knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
The law provides for a maximum total sentence of 20 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, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security, Child Exploitation, the Pennsylvania Attorney General’s Office, and the Pennsylvania State Police, Somerset, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Smith County Husband and Wife Guilty in Health Care Fraud ConspiracyRead the Press Release
TYLER, Texas – A Smith County couple has pleaded guilty to charges of health care fraud in the Eastern District of Texas announced Acting United States Attorney Brit Featherston today.
Gerard Dengler, 61, and Suzanne Dengler, 52, of Tyler, Texas, pleaded guilty to conspiring to commit health care fraud today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in Court, the Denglers owned and operated Elite Lab Services, a clinical diagnostic laboratory based in Tyler. As a Medicare provider, the company would bill Medicare for laboratory services provided to nursing homes located throughout east Texas, including the mileage associated with providing those services. Beginning in April 2014, Gerard and Suzanne Dengler conspired to fraudulently increase route mileage that Elite Lab used to calculate the travel allowances billed to Medicare. From April through October 2014, the company then sought reimbursement from Medicare for mileage that included the falsely inflated amounts.
Under federal statutes, the Denglers each face up to 10 years in federal prison at sentencing and have already agreed to pay restitution in excess of $160,000, which represents the loss to Medicare. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The criminal investigation arose from a civil qui tam action filed by former Elite Lab employee Karen Malcolm. In her complaint, Malcolm alleged, among other things, that Elite Lab and the Denglers submitted false claims to Medicare from approximately 2010 through 2014. The United States intervened in the action for purposes of settlement. The Denglers and Elite Lab agreed to pay the United States $3.75 million to settle the lawsuit. As a result of the settlement, Elite Lab will be excluded from participating in Medicare for eight years; Gerard Dengler will be excluded for 10 years; and Suzanne Dengler will be excluded for eight years. The settlement also resolved a separate civil lawsuit in which the United States sought to forfeit funds and property obtained by the Denglers and Elite Lab through their fraudulent conduct.
This matter was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services – Office of the Inspector General, the Texas Office of the Attorney General – Medicaid Fraud Control Unit, and the United States Attorney’s Office for the Eastern District of Texas. The criminal case was prosecuted by Assistant U.S. Attorneys Frank Coan and Nathaniel Kummerfeld and Special Assistant U.S. Attorney Ken McGurk. The civil settlement was negotiated by Assistant U.S. Attorney Josh Russ. The civil forfeiture action was prosecuted by Assistant U.S. Attorney Bob Wells.
This case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the Federal Bureau of Investigation (FBI). This case is being prosecuted by Special Assistant U.S. Attorney Kenneth C. McGurk and Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477).
Six Defendants Sentenced for Wide-Ranging Bank Fraud and Identity Theft SchemeRead the Press Release
ATLANTA - Six defendants have been sentenced over the last week for their roles in a bank fraud conspiracy scheme that involved withdrawing funds from compromised bank accounts and stealing personal identifying information from victims across the country.
“The leaders of this conspiracy sought out bank accounts with large sums of money and then worked with their co-conspirators to obtain the specific account information and personal identifying information for those account holders, eventually draining the accounts of all the money,” said U.S. Attorney John Horn. “Citizens expect that their personal information, as well as their money, is secure, and these defendants threatened that sense of security.”
“Financial fraud is one of the largest challenges facing American citizens and businesses today. The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who steal from unsuspecting victims,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “This sentencing should be a warning to other like-minded criminals that they will be punished for their wrongdoings.”
According to U.S. Attorney Horn, the charges and other information presented in court: Darnell Crutcher and Robert Warren, working together and with others, obtained bank account information of individuals with Home Equity Line of Credit (HELOC) accounts with JP Morgan Chase and other banks. On at least one account, Warren impersonated an account holder to obtain the available balance and days later Crutcher impersonated the same account holder and transferred over $150,000 out of the account.
Warren also allowed funds from compromised accounts to be transferred into his own accounts and funneled the money, in wire transfers and cash withdrawals, at Crutcher’s direction. Willie Hubbard, an associate of Crutcher’s, provided Crutcher with his bank account information on accounts he shared with Clifford Waller, his cousin. Crutcher also used these accounts to funnel funds from compromised accounts into, and then directed Hubbard on transferring and withdrawing the compromised funds, activity Waller also facilitated.
Juan Enriquez, who knew Crutcher from an Atlanta-area softball team, brought other individuals into the conspiracy. Enriquez’s wife, Anna Enriquez, a former banker with JP Morgan Chase, assisted an impersonator on one of the bank account takeovers who transferred $500,000 out of the victim’s HELOC account.
Darnell Crutcher, 55, of Atlanta, Georgia, has been sentenced to nine years and one month in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $794,825.90. Crutcher was convicted of bank fraud conspiracy and aggravated identity theft on October 21, 2016, after he pleaded guilty.
Robert Warren, 52, of Atlanta, Georgia, has been sentenced to five years and five months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $544,825.90. Warren was convicted of bank fraud conspiracy and aggravated identity theft on December 9, 2015, after he pleaded guilty.
Enriquez, 44, of Ft. Lauderdale, Florida, has been sentenced to three years and three months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $252,825.90. Enriquez was convicted of bank fraud conspiracy and aggravated identity theft on August 2, 2016, after he pleaded guilty.
Willie Hubbard, 52, of Lithonia, Georgia, has been sentenced to three years and one month in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $369,000. Hubbard was convicted of bank fraud conspiracy and aggravated identity theft on July 19, 2016, after he pleaded guilty.
Clifford Waller, 41, of Lithia Springs, Georgia, has been sentenced to two years and four months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $472,211.06. Waller was convicted of bank fraud related to his conduct described above, as well as bank fraud conspiracy related to a separate federal investigation, on February 1, 2016, after he pleaded guilty.
Anna Enriquez, 44, of Ft. Lauderdale, Florida, has been sentenced to 13 months of probation, including three months of home confinement, and ordered to pay restitution in the amount of $222,825.90. Anna Enriquez was convicted of bank fraud conspiracy on August 2, 2016, after she pleaded guilty.
All of the defendants were sentenced by U.S. District Court Judge William S. Duffey, Jr.
This case was investigated by the United States Secret Service. The United States Postal Inspection Service also provided valuable assistance.
Special Assistant United States Attorney Erin E. Sanders and Assistant United States Attorney Steven D. Grimberg prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
San Diego Man Sentenced to 28 Years in Prison for Aggravated Role in Methamphetamine ConspiracyRead the Press Release
HONOLULU – Jesse Wade Pelkey, 38, of Imperial Beach, California, was sentenced in federal court on January 5, 2017, by Senior District Judge Helen Gillmor to 336 months (28 years) imprisonment for his role in a conspiracy to distribute methamphetamine in the State of Hawaii. Pelkey had previously pled guilty on September 19, 2016 to conspiracy to distribute and possess with intent to distribute methamphetamine.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said the evidence presented in court showed that Pelkey was an organizer and leader of the methamphetamine conspiracy which operated in San Diego and Hawaii and involved five or more members. Pelkey was found responsible for the distribution of 424.9 grams of pure methamphetamine, or "ice," and an additional 4,989 grams of generic methamphetamine
At the sentencing hearing, the court found that Pelkey was the San Diego source of supply of the methamphetamine transported to Hawaii for distribution. Pelkey faced a mandatory minimum sentence of 240 months (20 years) imprisonment after the prosecution filed an enhancement alleging a prior felony drug conviction. A total of six individuals were convicted for their participation in the conspiracy.
The investigation which resulted in the charges in the case was conducted by the Drug Enforcement Administration. Assistant U.S. Attorney Mark A. Inciong handled the prosecution.
Robber Sentenced to over 12 Years in Federal Prison for Stealing Drugs and Money from PharmaciesRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Haleem Celestial White, age 25, of Washington D.C. today to 150 months in prison, followed by five years of supervised release, for armed robberies of pharmacies.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Henry P. Stawinski of the Prince George’s County Police Department.
According to their plea agreements and information presented at their sentencings, from March 7, 2015 to June 6, 2016, White conspired with Daunte Jones, Ernest Ingram, and others, to rob small retail pharmacies of cash and prescription medication. In each robbery, the conspirators wore dark ski masks and one of the robbers brandished a handgun. Specifically, on April 11, 2015 White, Jones, and Ingram, robbed a pharmacy on Annapolis Road in Hyattsville, Maryland, and on May 2, 2015, they robbed a pharmacy on Rhode Island Avenue in Beltsville, Maryland.
On March 7, 2015, Jones, White, and at least two other co-conspirators also robbed a pharmacy on Hamilton Street in Hyattsville. During the robbery, one of the co-conspirators pepper-sprayed two elderly customers in the face and threw both patrons to the ground. The robbers then escaped in a vehicle that was waiting for them outside. On June 6, 2016, Jones, White and another conspirator robbed a pharmacy on Greenbelt Road in Berwyn Heights, Maryland, again escaping in a waiting get-away car. As in each of the previous robberies, the conspirators stole prescription drugs, including oxycodone, and cash from the store. In the June 6th robbery, the conspirators also stole an employee’s handbag, which contained a cellular phone, credit cards, identification cards, and cash.
During their participation in the conspiracy, White, Jones, and Ingram, stole prescription medication worth more than $20,000. The defendants admitted that they stole the prescription medications in order to sell the drugs, which they did.
Judge Hazel previously sentenced co-conspirators Daunte Antonio Jones, age 27, of Oxon Hill, Maryland, to 150 months in prison, and Ernest Ingram, Jr., age 32, of Washington D.C., to 87 months in prison, for their participation in the armed robberies of pharmacies.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael T. Packard and William D. Moomau, who prosecuted the case.
Ring Leader of Violent Drug Trafficking and Illegal Gambling Enterprise Pleads Guilty to RacketeeringRead the Press Release
Assistant U. S. Attorneys Andrew P. Young (619) 546-7981,Benjamin Katz (619) 546-9604 or Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – January 10, 2016
SAN DIEGO – Owen Hanson, leader of the violent “ODOG Enterprise,” pleaded guilty today to conspiring to operate an international drug trafficking, gambling and money laundering enterprise in the United States, Central and South America and Australia from 2012 to 2016.
According to his plea agreement, ODOG Enterprise trafficked hundreds of kilograms of cocaine, heroin, methamphetamine, MDMA (also known as “ecstasy”), anabolic steroids and Human Growth Hormone (“HGH”). As Hanson admitted, ODOG Enterprise’s drug operation routinely distributed controlled substances at wholesale and retail levels, including selling performance enhancing drugs to numerous professional athletes. The ODOG Enterprise also operated a vast illegal gambling operation focused on high-stakes wagers placed on sporting events. The Enterprise used threats and violence against its gambling and drug customers to force compliance.
Three of Hanson’s associates also pleaded guilty today: Giovanni Brandolino (aka “Tank”), Marlyn Villarreal and Jeff Bellandi.
In one instance discussed in court papers, an individual who owed the ODOG Enterprise more than $2 million received a DVD showing a beheading, and a photo of his desecrated family’s gravestone, in an effort to collect the alleged debt. Hanson pleaded guilty today to conspiring to operate the ODOG enterprise, in violation of the Racketeer Influenced and Corrupt Organization (“RICO”) statute, and to conspiring to distribute controlled substances.
Brandolino, the second-highest ranking member of the ODOG Enterprise, pleaded guilty to conspiracy to violate RICO and conspiracy to commit money laundering. As part of the plea agreement Brandolino admitted that he assisted Hanson with the importation and distribution of hundreds of kilograms of cocaine and heroin. Brandolino specifically admitted establishing a drug distribution network in New Jersey and New York. Villarreal and Bellandi also pleaded guilty to conspiracy to commit money laundering.
So far, 16 of the 22 defendants charged in connection with this case have pleaded guilty, including Daniel Portley-Hanks, Jack Rissell, Kenny Hilinski, and Rufus Rhone. Portley-Hanks, a Los Angeles based private investigator who assisted Hanson with tracking down delinquent gamblers and other individuals who owed the enterprise money, pleaded guilty to extortion on December 27, 2016. Jack Rissell, labeled as an “enforcer” in the Superseding Indictment, also pleaded guilty to extortion on December 17, 2016. Kenny Hilinski, Hanson’s associate, pleaded guilty to the RICO conspiracy on May 24, 2016. Hilinski operated much of the gambling apparatus from Peru where he maintained various gambling websites, coordinated the collection of payments from various bookies and gamblers, and directed the organization’s runners to distribute the proceeds to Hanson through shell companies and cash deliveries. Portley-Hanks, Rissell, and Hilinski are awaiting sentencing.
Rhone, who pleaded guilty to conspiracy to distribute methamphetamine and cocaine early last year, was sentenced on September 19, 2016 to 72 months in prison.
The remaining defendants are set for trial on February 14, 2017. Luke Fairfield, a San Diego based Certified Public Accountant is accused of assisting Hanson with laundering the proceeds of his various illegal endeavors by, in part, setting up shell corporations and advising members of the Enterprise on how to structure bank transactions to avoid detection by bank security and law enforcement. Derek Loville, a former professional football player, is accused of distributing retail quantities of drugs for the ODOG Enterprise in Arizona. Dylan Anderson and Khalid Petras, the other two remaining defendants, are accused of running an illegal gambling business. charges against these four defendants are merely accusations, and they are considered innocent unless and until proven guilty.
The case arose out of a joint investigation by FBI, IRS and the New South Wales (Australia) Police Force in conjunction with the New South Wales Crime Commission. Hanson was initially indicted and arrested on September 9, 2015 after arranging the delivery of five kilograms of cocaine and five kilograms of methamphetamine. Eight individuals in Australia have been arrested in connection with Hanson’s global organization. Assistant U. S. Attorneys Andrew P. Young, Benjamin Katz and Mark W. Pletcher are prosecuting the case.
DEFENDANT Case Number: 15CR2310-WQH
Owen Hanson Age: 34
Luke Fairfield Age: 40
Kenny Hilinski Age: 39
Giovanni Brandolino Age: 42
Daniel Portley-Hanks Age: 70
Jack Rissell Age: 50
Derek Loville Age: 48
Chalie D’Agostino Age: 52
Marlyn Villareal Age: 32
Dylan Anderson Age: 34
Tim Bryan Age: 48
Jim Muse Age: 53
Jeff Bellandi aka “Jazzy” Age: 50
Curtis Chen Age: 33
James Duley Age: 41
Dee Foxx Age: 35
Khalid Petras Age: 55
Rahul Bhagat Age: 31
David Kipper Age: 35
Todd Oldham Age: 32
Daniel Ortega Age: 42
SUMMARY OF CHARGES
Count 1 (Defendants Hanson and Brandolino)
Racketeering Conspiracy to Conduct RICO Enterprise Affairs, 18 U.S.C. § 1962(d)
Maximum penalty: Life in prison, fine of $250,000 or twice the gross gain or loss caused by the offense, forfeiture of any property obtained or operated by RICO enterprise, five years of supervised release.
Count II (Defendants Bellandi and Villarreal)
Illegal Gambling Business, 18 U.S.C. § 1955
Maximum penalty: Five years in prison, fine of $250,000 or twice the gross gain or loss caused by the offense, forfeiture of proceeds, three years of supervised release.
Count 3 (Defendants Brandolino, Villarreal and Bellandi)
Money Laundering Conspiracy, 18 U.S.C. § 1956(h)
Maximum penalty: Twenty years in prison, fine of $500,000 or twice the gross gain or loss caused by the offense, forfeiture of property involved in the offense, three years of supervised release.
Count 4 (Defendant Hanson)
Conspiracy to Distribute Narcotics, 21 U.S.C. § 841(a)(1) and 846
Maximum penalty: Life in prison, fine of $20 million or twice the gross gain or loss caused by the offense, forfeiture of any proceeds, 10 years of supervised release.
AGENCY
Federal Bureau of Investigation – San Diego Field Office
Internal Revenue Service – San Diego
Australian Crime Commission
New South Wales Police Force
New South Wales Crime Commission
Portland Man Sentenced to Almost Seven Years for Trafficking Bath Salts and OpiatesRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: The Office of the United States Attorney announced that Jonathan Day, 42, of Portland, was sentenced today in U.S. District Court by Judge Jon D. Levy to 80 months in prison and three years of supervised release for conspiring to distribute bath salts, fentanyl, and heroin and for distributing heroin. Day pleaded guilty to the charges on April 1, 2016.
According to court records, from February through May 2015, Day was involved in a conspiracy that distributed bath salts, heroin, and fentanyl. Heroin and fentanyl were obtained from sources in New Hampshire and Massachusetts and bath salts were obtained through the mail from a source outside the United States. Day and his co-conspirators distributed the drugs to customers throughout the state.
This case results from an investigation conducted by the U.S. Drug Enforcement Administration and the Scarborough and Portland Police Departments.
Pittsburgh Man Charged with Dealing Heroin and Fentanyl Resulting in Injury or DeathRead the Press Release
PITTSBURGH – Larry Malloy has been indicted by a federal grand jury in Pittsburgh for distributing Schedule I and Schedule II controlled substances, including heroin and fentanyl, resulting in serious bodily injury and death, Acting United States Attorney Soo C. Song announced today.
The indictment charges Malloy, 23, of Pittsburgh, Pa., with committing the following four crimes in Allegheny County between April 27, 2016, and June 2, 2016: (1) possession with intent to distribute and distribution of a Schedule I controlled substance and/or a Schedule II controlled substance on April 27, 2016, resulting in serious bodily injury or death, and (2) possession with intent to distribute and distribution of heroin and/or fentanyl on May 11, 2016, May 18, 2016, and June 2, 2016.
The law provides for a maximum total sentence of at least 20 years and up to life in prison and a fine of up to $4,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Allegheny County Police Department, the Verona Police Department, the Pennsylvania Attorney General’s Office, and the Allegheny County Medical Examiner’s Office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Theft of Government FundsRead the Press Release
Anthony Molinero, 70, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced Acting United States Attorney Louis D. Lappen. According to the Information[1], the defendant received retirement benefits intended for his mother, after his mother’s death in May 2000 until March 2014. The defendant’s alleged actions resulted in a loss to the government of approximately $150,999.
If convicted, the defendant faces a term of imprisonment, a 3‑year period of supervised release, restitution to the government of $150,999, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Passaic County, New Jersey, Doctor Charged with Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor practicing in Passaic County, New Jersey, was charged today with accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Salvatore Conte, 52, of Totowa, New Jersey, is charged by indictment with one count of conspiring to commit violations of the Anti-Kickback Statute, the Federal Travel Act and wire fraud; three substantive violations of the Anti-Kickback Statute; three substantive violations of the Federal Travel Act; and three substantive violations of wire fraud. Conte will be arraigned at a later date.
According to the indictment:
From February 2009 through April 2013, Conte received bribes totaling approximately $130,000 from BLS employees and associates. Conte periodically solicited, and received from the BLS employees and associates, monthly bribe payments in the form of sham rental, service agreement, and consultant payments. Conte’s referrals generated approximately $525,000 in lab business for BLS.
Conte is the fifth physician to be indicted in connection with the BLS bribery scheme. Ahmed El Soury and Thomas Savino were indicted on Dec. 13, 2016 and Dec. 20, 2016, respectively. Brett Ostrager – who was indicted Aug. 11, 2015 and pleaded guilty on Dec. 22, 2015 – was sentenced on June 8, 2016 to 37 months in prison. Bernard Greenspan was indicted on March 14, 2016 and is scheduled for trial on Jan. 31, 2017.
The investigation has thus far resulted in 41 guilty pleas – 27 of them from doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $12 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
The Anti-Kickback and Federal Travel Act counts are each punishable by a maximum potential penalty of five years in prison. The wire fraud charges are each punishable by a maximum potential penalty of 20 years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish and Danielle Alfonzo Walsman, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.32 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Robert Baer Esq., Wayne, New Jersey
New York Man Sentenced to 13 Years in Prison for Attempting to Join Al-Qaeda in the Arabian PeninsulaRead the Press Release
Justin Kaliebe, 22, of Babylon and Bay Shore, New York, was sentenced to 13 years in prison and 20 years of supervised release with special conditions (including computer monitoring, a prohibition on contact with jihadists, search conditions, mental health treatment and a curfew, among others) following his guilty plea on Feb. 8, 2013. Kaliebe pleaded guilty to both counts of a felony information, which charged him with attempting to provide material support to terrorists, in violation of 18 U.S.C. § 2339A(a), and attempting to provide material support to a designated foreign terrorist organization, al-Qaeda in the Arabian Peninsula, also known as Ansar al-Sharia (collectively, AQAP), in violation of 18 U.S.C. § 2339B(a)(1).
The sentencing was announced by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Robert L. Capers for the Eastern District of New York, Assistant Director-in-Charge William F. Sweeney, Jr. of the FBI’s New York Field Office and Commissioner James P. O’Neill of the New York City Police Department (NYPD).
"With this sentence, Justin Kaliebe is being held accountable for his attempt to travel overseas to join Al-Qaeda in the Arab Peninsula and engage in violent jihad," said Acting Assistant Attorney General McCord. "One of our highest priorities is to protect our country by identifying, disrupting and holding accountable those who provide or attempt to provide material support to designated foreign terrorist organizations.”
“This case is a sobering reminder that the call to violent jihad can reach deep into our local communities. Even when given the opportunity to abandon his plan to join al-Qaeda, this defendant made clear his intentions to commit himself fully to terrorism,” stated U.S. Attorney Capers. “If not for the vigilance and commitment of our dedicated investigators, he might well have succeeded in empowering a dangerous enemy.” Mr. Capers expressed his sincere appreciation to all the members of the FBI’s Joint Terrorism Task Force (JTTF) and the NYPD Intelligence Division for their work on the investigation.
“Providing material support to terrorists is a serious crime that should have serious consequences. Today’s sentencing of Justin Kaliebe shows just that. Kaliebe set out to provide material support to Al-Qaeda in the Arabian Peninsula in 2013 by attempting to travel to Yemen, after making plans months in advance. He didn’t get past JFK thanks to the hard work of the FBI’s Joint Terrorism Task Force and the NYPD Intelligence Division,” stated Assistant Director-in-Charge Sweeney.
“Kaliebe’s commitment to join al-Qaeda in the Arabian Peninsula was as alarming as it was sinister. And early in 2013, Kaliebe was arrested at John F. Kennedy airport trying to fulfill his dream of joining the jihad in Yemen. Thankfully, Kaliebe was met at the airport by NYPD detectives and FBI agents investigating his support of this terrorist group’s agenda. Thanks, as always, to those on the FBI-NYPD Joint Terrorism Task Force and at the U.S. Attorney’s Office in the Eastern District for their investigation of this case and many others,” stated Commissioner O’Neill.
According to the court filings, including sentencing memoranda, and evidence introduced during a sentencing hearing, Kaliebe attempted to travel from the U.S. to Yemen for the purpose of joining AQAP and waging violent jihad. During numerous meetings and recorded conversations and email correspondence with undercover law enforcement officers, Kaliebe explained that he had been searching for an opportunity to travel abroad and fight jihad for two years – long before Kaliebe first approached the undercover officers about his plans to join a terrorist group. Kaliebe repeatedly expressed his desire to travel to Yemen in order to join AQAP and to help carry out its violent extremist agenda.
Kaliebe also demonstrated extensive knowledge of terrorist organizations, including AQAP and al-Qaeda, and current and former leaders of those terrorist organizations. For example, Kaliebe referenced, and at times quoted, Anwar al-Awlaki, the now-deceased former member and senior leader of AQAP, as well as Omar Abdel Rahman (the “Blind Sheik”), Ayman al-Zawahiri, the current leader of al-Qaeda, and Usama Bin Laden. Further, Kaliebe demonstrated detailed knowledge of various terrorist attacks that were carried out by AQAP in Yemen, as well as other attacks carried out by al-Qaeda around the world.
According to a June 4, 2012, recorded conversation, which was admitted into evidence during the sentencing hearing, Kaliebe observed that “the crime that they would charge people like us with” was conspiracy “to kill, maim and kidnap in foreign countries,” a reference to a federal criminal statute that has previously been used to charge other individuals who departed or attempted to depart the U.S. in order to fight jihad abroad. Later, during that same conversation, Kaliebe stated that, once he arrived in Yemen, he expected to fight the “Yemeni army” and “those who are fighting against the Sharia of Allah . . . whether it’s the U.S. drones or the, their puppets, in the Yemeni army . . . or, who knows, if American agents or whatever, U.S. Special Forces . . . who they got over there.” When asked if he was afraid to die, Kaliebe responded “I wanna . . . . It’s what anyone would want, any believer would want.” During another recorded conversation described in the government’s sentencing memorandum, which took place on July 9, 2012, Kaliebe stated that he had been inspired by several sheiks, including “Sheik Usama,” “who showed how he could bring an entire nation to its knees.”
Beginning in approximately July 2012, Kaliebe saved money to finance his travel to Yemen, which he then used to apply for and purchase a U.S. passport, and to purchase an airline ticket to Oman, from where he intended to travel by land to Yemen. During a recorded meeting on July 30, 2012, Kaliebe stated that he was saving money “as a means to go to Yemen to fight jihad.”
On Dec. 26, 2012, Kaliebe sent an email in which he swore his loyalty to the leaders of AQAP and al-Qaeda, respectively, writing, “I pledge my loyalty, allegiance and fidelity to the Mujahedeen of Al-Qaa'idah in the Arabian Peninsula and its leaders, Shaykh Abu Baseer Nasir Al-Wuhayshi and Shaykh Ayman Al-Zawahiri, hafidhahum Allah! May Allah accept this from me and may he allow me to fight in his cause til the day that I leave this dunya [this world].”
On Jan. 8, 2013, Kaliebe reaffirmed his commitment to jihad, telling an NYPD Intelligence Division undercover officer, in a recorded conversation, which was also admitted into evidence during the sentencing hearing, that he understood “there’s a way out, but for me, the only way out is [martyrdom].” Additionally, Kaliebe paid homage to several terrorist leaders, telling the undercover law enforcement officer that: “[My] standard is Abu Dujana. [M]y standard is Abu Mus’ab Al-Zarqawi. My standard is Sheik Anwar Al-Awlaki and Sheik Usama, both who bore witness to the truth with their blood.”
Finally, Kaliebe stated, “Oh Allah, please allow me, please allow me and my brother…to fight jihad in your cause oh Allah. Oh Allah, please give us one of the two victories, victory on the ground or victory through [martyrdom.]”
On Jan. 21, 2013, Kaliebe’s efforts culminated in an attempt to board a flight to Muscat, Oman at John F. Kennedy Airport in Queens, New York. He was arrested at the airport by members of the FBI’s JTTF and the NYPD Intelligence Division. On Feb. 8, 2013, Kaliebe waived indictment and pleaded guilty to attempting to provide material support to AQAP and to attempting to provide material support to terrorists. Kaliebe’s co-conspirator, Marcos Alonso Zea, who also attempted to travel to Yemen to join AQAP. Once Zea’s own attempt failed, he assisted Kaliebe’s efforts to join the terrorist group. Zea was previously convicted and sentenced to 25 years in prison by the Honorable Sandra J. Feuerstein.
The government’s case is being prosecuted jointly by the National Security and Cybercrime Section, and the Long Island Criminal Section of the U.S. Attorney’s Office for the Eastern District of New York. Assistant U.S. Attorneys Seth D. DuCharme and John J. Durham for the Eastern District of New York are in charge of the prosecution, with assistance provided by Trial Attorney Kelli Andrews of the National Security Division’s Counterterrorism Section.
New Haven Man Sentenced to 57 Months in Prison for Role in Fraudulent Oxycodone Prescription RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALEJANDRO PROSPER, also known as “Pun,” 36, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 57 months of imprisonment, followed by four years of supervised release, for his role in a scheme to distribute oxycodone that was obtained through fraudulent prescriptions.
According to court documents and statements made in court, in 2012, members of the Drug Enforcement Administration’s New Haven Tactical Diversion Squad began an investigation into a drug trafficking organization that manufactured fraudulent prescriptions for oxycodone and distributed the drug in the greater New Haven area. As part of the conspiracy, members of organization obtained the personal identifying information of medical practitioners and used the information to create fraudulent prescriptions. Conspiracy members also purchased legitimate prescriptions for oxycodone from individuals. The organization then used individuals, or “runners,” to fill the fraudulent prescriptions at pharmacies throughout Connecticut. Once a runner provided his or her personal information to a member of the organization, the runner’s information was kept on file and used to create other fraudulent prescriptions.
PROSPER purchased large quantities of illegally-obtained oxycodone from Julian Cintron and David Thompson, and sold the pills, as well as other narcotics, to his own customers.
The investigation revealed that, between February 2013 and September 2015, the organization stole the personal identifying information of more than 50 doctors and medical professionals and fraudulently obtained more than 80,000 oxycodone pills. Investigators identified more than 800 fraudulent prescriptions passed by members of the organization using more than 270 different “patient” names.
Nearly all of the runners employed by the conspiracy held state-sponsored medical insurance, so the costs of the prescriptions were billed to Medicaid. Members of the drug trafficking organization then sold the oxycodone for $20 to $30 per 30 milligram pill.
On October 18, 2016, PROSPER pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute oxycodone.
Eleven individuals have been charged as a result of the investigation.
Cintron and Thompson, both of New Haven, pleaded guilty and await sentencing.
The DEA Tactical Diversion Squad includes members from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Amy C. Brown and Robert M. Spector.
Mt. Vernon Woman Indicted for Meth, CocaineRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mt. Vernon, Mo., woman was indicted by a federal grand jury today for carrying large amounts of methamphetamine and cocaine from California en route to Springfield, Mo.
Rubi Espinoza, 26, of Mt. Vernon, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Espinoza on Jan. 3, 2017.
The federal indictment alleges that Espinoza was in possession of methamphetamine with the intent to distribute on Jan. 2, 2017. Espinoza is also charged with possessing cocaine with the intent to distribute on Jan. 2, 2017.
According to an affidavit that was filed in support of the original criminal complaint, a DEA task force officer saw Espinoza exit a bus from California on Jan. 2, 2017. Espinoza acted nervous and was constantly surveilling her surrounds, the affidavit says, and her hands were shaking vigorously when she was asked by the officer for her bus ticket and identification.
The officer searched Espinoza’s luggage, affidavit says, and found 10 packaged bundles, each of which contained approximately 1.1 pound of methamphetamine, for a total weight of 11 pounds or 4,989 grams of methamphetamine. The officer also found one bundle that contained approximately 1.1 pounds or 453 grams of cocaine.
According to the affidavit, Espinoza told the officer that she was traveling to Springfield, where she was to be met by unknown individuals who would take the methamphetamine and cocaine. Espinoza said that she had traveled to California for personal reasons and while there she communicated with a friend from high school. Her friend asked her if she wanted to make some money carrying methamphetamine back to Springfield.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Matt Moeder. It was investigated by the Drug Enforcement Administration’s Kansas City Interdiction Task Force.
Minnesota Man Indicted for Distributing Fentanyl Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Aaron Broussard, age 26, of Hopkins, Minnesota, appeared today before United States Magistrate Judge Karoline Mehalchick in Scranton to face charges that he distributed fentanyl, a Schedule I controlled substance, resulting in the death of another.
According to United States Attorney Bruce D. Brandler, Broussard was indicted on December 6, 2016 by a federal grand jury sitting in Scranton. Broussard was arrested on December 6, 2016, in the District of Minnesota and today he was ordered detained pending trial.
The case was investigated by the Drug Enforcement Administration, the United States Postal Inspection Service, and the Department of Homeland Security. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mexican man charged for illegally re-entering the United StatesRead the Press Release
Abel Arturo Valdez-Parra, 35, of Mexico, was charged with illegal re-entry into the United States, said U.S. Attorney Carole S. Rendon.
Valdez-Parra was found in Ohio on Dec. 5, 2016, after having been removed from the U.S. in 2008, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigating agency in this case is the Bureau of Customs and Border Protection in Sandusky. The case is being handled by Assistant United States Attorney Michael J. Freeman.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Massillon man indicted for trafficking cocaineRead the Press Release
A federal grand jury returned a one-count indictment charging Antonio Cuevas-Baltazar, 21, of Massillon with possession with the intent to distribute cocaine, said U.S. Attorney Carole S. Rendon.
Cuevas-Baltazar possessed with the intent to distribute more than 500 grams of cocaine on Jan. 2, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Ohio State Highway Patrol. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Marianna Man Sentenced to Prison in Scheme to Steal USDA Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced Tuesday that United States District Court Judge D. Price Marshall Jr., sentenced James E. Franklin, Jr., 34, of Marianna, to prison for his role in a widespread scheme to steal money intended for feeding children in low income areas.
Judge Marshall sentenced Franklin, who pleaded guilty to conspiring to commit wire fraud on September 16, 2016, to 24 months’ imprisonment, to be followed by two years of supervised release. He was also ordered to pay restitution in the amount of $380,055.36.
The United States Department of Agriculture (USDA) feeding programs in Arkansas are administered through the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding programs, and they are reimbursed for the eligible meals they serve.
Franklin is the fourth defendant sentenced who was charged with involvement in a scheme to fraudulently obtain these USDA program funds intended to feed children in low income areas. Eight others have pleaded guilty and are awaiting sentencing. Jacqueline Mills, Dorothy Harper, and Anthony Waits are scheduled for trial on March 27, 2017, before United States District Court Judge James M. Moody, Jr.
Franklin was a sponsor for a feeding program through an organization called "JL&N Outreach." Franklin had two approved feeding site locations, one in Hughes, Arkansas and the other in Brinkley, Arkansas. Franklin claimed that he fed as many as 244 children a day in Hughes and as many as 287 children a day in Brinkley. According to witnesses, no more than 10 children per day were fed in Brinkley and no more than 15 children per day were fed in Hughes.
Franklin was recruited by Anthony Waits. Waits’ wife, Gladys Waits, worked for DHS and approved Franklin’s application. Franklin paid Anthony Waits approximately 40% of the $380,055.36 Franklin received in the scheme.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris, Allison W. Bragg, and Cameron McCree.
If you are aware of any fraudulent activity regarding feeding programs, please email that information to [email protected].
Long Island Man Sentenced to 13 Years in Prison for Attempting to Join Al-Qaeda in the Arabian PeninsulaRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, Justin Kaliebe, an American citizen and resident of Babylon and Bay Shore, New York, was sentenced to 13 years in prison and 20 years of supervised release with special conditions (including computer monitoring, a prohibition on contact with jihadists, search conditions, mental health treatment and a curfew, among others) following his February 8, 2013, guilty plea to both counts of a felony information, which charged him with attempting to provide material support to terrorists, in violation of 18 U.S.C. § 2339A(a), and attempting to provide material support to a designated foreign terrorist organization, al-Qaeda in the Arabian Peninsula, also known as Ansar al-Sharia (collectively, AQAP), in violation of 18 U.S.C. § 2339B(a)(1).
The sentencing was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Acting Assistant Attorney General Mary B. McCord; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and James P. O’Neill, Commissioner, New York City Police Department (NYPD).
According to the court filings, including sentencing memoranda, and evidence introduced during a sentencing hearing, Kaliebe attempted to travel from the United States to Yemen for the purpose of joining AQAP and waging violent jihad. During numerous meetings and recorded conversations and email correspondence with undercover law enforcement officers, Kaliebe explained that he had been searching for an opportunity to travel abroad and fight jihad for two years – long before Kaliebe first approached the undercover officers about his plans to join a terrorist group. Kaliebe repeatedly expressed his desire to travel to Yemen in order to join AQAP and to help carry out its violent extremist agenda. Kaliebe also demonstrated extensive knowledge of terrorist organizations, including AQAP and al-Qaeda, and current and former leaders of those terrorist organizations. For example, Kaliebe referenced, and at times quoted, Anwar al-Awlaki, the now-deceased former member and senior leader of AQAP, as well as Omar Abdel Rahman (the “Blind Sheik”), Ayman al-Zawahiri, the current leader of al-Qaeda, and Usama Bin Laden. Further, Kaliebe demonstrated detailed knowledge of various terrorist attacks that were carried out by AQAP in Yemen, as well as other attacks carried out by al-Qaeda around the world.
According to a June 4, 2012 recorded conversation, which was admitted into evidence during the sentencing hearing, Kaliebe observed that “the crime that they would charge people like us with” was conspiracy “to kill, maim and kidnap in foreign countries,” a reference to a federal criminal statute that has previously been used to charge other individuals who departed or attempted to depart the United States in order to fight jihad abroad. Later, during that same conversation, Kaliebe stated that, once he arrived in Yemen, he expected to fight the “Yemeni army” and “those who are fighting against the Sharia of Allah . . . whether it’s the U.S. drones or the, their puppets, in the Yemeni army . . . or, who knows, if American agents or whatever, U.S. Special Forces . . . who they got over there.” When asked if he was afraid to die, Kaliebe responded “I wanna . . . . It’s what anyone would want, any believer would want.” During another recorded conversation described in the government’s sentencing memorandum, which took place on July 9, 2012, Kaliebe stated that he had been inspired by several sheiks, including “Sheik Usama,” “who showed how he could bring an entire nation to its knees.”
Beginning in approximately July 2012, Kaliebe saved money to finance his travel to Yemen, which he then used to apply for and purchase a United States passport, and to purchase an airline ticket to Oman, from where he intended to travel by land to Yemen. During a recorded meeting on July 30, 2012, Kaliebe stated that he was saving money “as a means to go to Yemen to fight jihad.”
On December 26, 2012, Kaliebe sent an email in which he swore his loyalty to the leaders of AQAP and al-Qaeda, respectively, writing, “I pledge my loyalty, allegiance and fidelity to the Mujahedeen of Al-Qaa'idah in the Arabian Peninsula and its leaders, Shaykh Abu Baseer Nasir Al-Wuhayshi and Shaykh Ayman Al-Zawahiri, hafidhahum Allah! May Allah accept this from me and may he allow me to fight in his cause til the day that I leave this dunya [this world].”
On January 18, 2013, Kaliebe reaffirmed his commitment to jihad, telling an NYPD Intelligence Division undercover officer, in a recorded conversation, which was also admitted into evidence during the sentencing hearing, that he understood “there’s a way out, but for me, the only way out is [martyrdom].” Additionally, Kaliebe paid homage to several terrorist leaders, telling the undercover law enforcement officer that:
[My] standard is Abu Dujana. [M]y standard is Abu Mus’ab Al-Zarqawi. My standard is Sheik Anwar Al-Awlaki and Sheik Usama, both who bore witness to the truth with their blood.
Finally, Kaliebe stated, “Oh Allah, please allow me, please allow me and my brother…to fight jihad in your cause oh Allah. Oh Allah, please give us one of the two victories, victory on the ground or victory through [martyrdom.]”
On January 21, 2013, Kaliebe’s efforts culminated in an attempt to board a flight to Muscat, Oman at John F. Kennedy Airport in Queens, New York. He was arrested at the airport by members of the FBI’s Joint Terrorism Task Force and the NYPD Intelligence Division. Thereafter, on February 8, 2013, Kaliebe waived indictment and pled guilty to attempting to provide material support to AQAP and attempting to provide material support to terrorists. Kaliebe’s co-conspirator, Marcos Alonso Zea, who also attempted to travel to Yemen to join AQAP and, once his own attempt failed, assisted Kaliebe’s efforts to join the terrorist group, previously was convicted and sentenced to 25 years in prison by the Honorable Sandra J. Feuerstein.
“This case is a sobering reminder that the call to violent jihad can reach deep into our local communities. Even when given the opportunity to abandon his plan to join al-Qaeda, this defendant made clear his intentions to commit himself fully to terrorism,” stated U.S. Attorney Capers. “If not for the vigilance and commitment of our dedicated investigators, he might well have succeeded in empowering a dangerous enemy.” Mr. Capers expressed his sincere appreciation to all the members of the FBI’s Joint Terrorism Task Force and the New York City Police Department, Intelligence Division, for their work on the investigation.
“With this sentence, Justin Kaliebe is being held accountable for his attempt to travel overseas to join Al-Qaeda in the Arab Peninsula and engage in violent jihad,” said Acting Assistant Attorney General McCord. “One of our highest priorities is to protect our country by identifying, disrupting, and holding accountable those who provide or attempt to provide material support to designated foreign terrorist organizations.”
“Providing material support to terrorists is a serious crime that should have serious consequences. Today’s sentencing of Justin Kaliebe shows just that. Kaliebe set out to provide material support to Al-Qaeda in the Arabian Peninsula in 2013 by attempting to travel to Yemen, after making plans months in advance. He didn’t get past JFK thanks to the hard work of the FBI’s Joint Terrorism Task Force and the NYPD Intelligence Division,” stated FBI Assistant Director-in-Charge Sweeney.
“Kaliebe’s commitment to join al-Qaeda in the Arabian Peninsula was as alarming as it was sinister. And early in 2013, Kaliebe was arrested at John F. Kennedy airport trying to fulfill his dream of joining the jihad in Yemen. Thankfully, Kaliebe was met at the airport by NYPD detectives and FBI agents investigating his support of this terrorist group’s agenda. Thanks, as always, to those on the FBI-NYPD Joint Terrorism Task Force and at the U.S. Attorney’s Office in the Eastern District for their investigation of this case and many others,” stated Police Commissioner O’Neill.
The government’s case is being prosecuted jointly by the Office’s National Security and Cybercrime Section and the Long Island Criminal Section. Assistant United States Attorneys Seth D. DuCharme and John J. Durham are in charge of the prosecution, with assistance provided by Trial Attorney Kelli Andrews of the National Security Division’s Counterterrorism Section.
The Defendant:
JUSTIN KALIEBE
Age: 22
Babylon and Bay Shore, New York
E.D.N.Y. Docket No. 13-072 (DRH)
Latin King Gang Member Sentenced to 14 Years’ Imprisonment on Drug and Firearms ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Latin King gang member Felix Dominguez-Rivera, age 38, of Lebanon, Pennsylvania, was sentenced to 168 months’ imprisonment on January 9, 2017, by United States District Court Judge John E., Jones, III, for distribution of cocaine and heroin and possession of a firearm.
Judge Jones also ordered Dominguez-Rivera to be placed on four years of supervised release following his prison sentence, and to pay $1,800 in fines and special assessments.
According to United States Attorney Bruce D. Brandler, Dominguez-Rivera, a career offender, distributed approximately 522 grams of heroin, which is equivalent to approximately 20,000 retail bags, and approximately 2,282 grams of cocaine base, also known as crack cocaine, between December of 2011 and August of 2013, in Lebanon County. At the time of his arrest on April 8, 2014, Dominguez-Rivera was in the possession of a loaded Keltec 9mm handgun with an obliterated serial number. As a convicted felon, he was prohibited from possessing firearms.
The case was investigated by the Drug Enforcement Administration, the Lebanon County Drug Task Force, Lebanon City Police Department, and the Cornwall Borough Police Department. Assistant United States Attorney Daryl F. Bloom and Nichole Eisenhart, Lebanon County First Assistant District Attorney, serving as Special Assistant United States Attorney, prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Jury Convicts Alien SmugglerRead the Press Release
BROWNSVILLE, Texas – A federal jury sitting in Brownsville has convicted a 37-year-old undocumented alien from Oaxaca, Mexico, who had been living in Brownsville on immigration charges that led to death, announced U.S. Attorney Kenneth Magidson. The jury returned its verdicts against Galdino Jose Ruiz-Hernandez after a two-day trial.
Evidence presented at the trial showed that on April 24, 2015, Ruiz-Hernandez reported to Port of Brownsville authorities that a “friend” told him saw a female body floating in the Brownsville ship channel. Law enforcement located the body and noticed injuries. Ruiz-Hernandez was initially arrested for illegally re-entering the U.S. after having been previously deported and later charged with alien smuggling as well.
Investigators learned Ruiz-Hernandez had actually been guiding the female illegal alien at midnight in the water across the ship channel when they were struck by a Coast Guard boat. Evidence presented at trial showed he guided her on behalf of Gabriel Sanchez-Aburto, 46, who had taken him to Mexico to pick up the woman. Ruiz-Hernandez and the victim entered the U.S. illegally, walked to the Port of Brownsville ship channel and began crossing the water in darkness. While in the water, a Coast Guard boat struck them. The autopsy revealed the boat’s propeller caused the injuries that resulted in her death.
As part of the investigation, agents with Immigrations and Customs Enforcement’s Homeland Security Investigation (HSI) arrested Sanchez-Aburto on a warrant for the alien smuggling death incident on Oct. 27, 2015. He and others were in the process of smuggling other aliens at the time. Authorities found and detained seven undocumented aliens and arrested three brothers - Lazaro Comunidad-Hernandez, 48, Pablo Comunidad-Hernandez, 25, and Luciano Comunidad-Hernandez, 39, all from Puebla, Mexico.
The brothers were later sentenced to terms from 10-15 months and are expected to face deportation proceedings following their release from prison.
Sanchez-Aburto entered a guilty plea to both alien smuggling charges and his sentencing is scheduled for Feb. 6, 2017.
U.S. District Judge Hilda Tagle presided over the trial and set sentencing for Ruiz-Hernandez for April 10, 2017. At that time, he faces up to life imprisonment. He will remain in custody pending that hearing.
HSI conducted the investigation. Assistant U.S. Attorneys Oscar Ponce and Jason Corley are prosecuting the case.
Judges Sentences South Park Man to 3 Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania, was sentenced in federal court to 39 months imprisonment, followed by 10 years of supervised release for the charge of Possession of Material Depicting the Sexual Exploitation of a Minor, Acting United States Attorney Soo C. Song announced today.
United States District Judge Donetta Ambrose imposed the sentence on Kevin O’Connor, 51, of South Park, Pennsylvania.
According to information presented to the court, the court was advised that on or about April 27, 2016, O’Connor knowingly possessed images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of O’Connor.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Johnstown Man Charged with Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The indictment named Daniel Culmer, 49, of Johnstown, Pa.
According to the indictment presented to the court, on June 7 and June 8, 2016, Culmer distributed less than 100 grams of heroin.
The law provides for a maximum sentence of 40 years in prison and a fine of $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Culmer.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Guilty Plea to Federal Bribery Conspiracy by Man who Served as Prince George’s County Councilman and Maryland State DelegateRead the Press Release
Greenbelt, Maryland – Former Maryland Delegate and Prince George’s County Councilman William Alberto Campos-Escobar, age 42, of Hyattsville, Maryland, has pleaded guilty to federal charges for taking bribes related to the performance of his official duties. The guilty plea was entered under seal on January 5, 2017, and unsealed today.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Kareem Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
“This undercover investigation did not involve an isolated instance of misconduct,” said U.S. Attorney Rod J. Rosenstein. “It exposed a longstanding practice of giving away taxpayer money in exchange for bribes. This type of corruption can flourish when government officials exercise discretion without oversight.”
“A public servant must uphold public trust. You cannot use public service for your own personal gain,” said Special Agent Gordon B. Johnson of the FBI’s Baltimore Division. “Today’s plea announcement should send a clear signal that the FBI will vigorously investigate any public official who attempts to use their position to enrich themselves.”
“Rooting out public corruption remains one of the IRS-CI’s highest priorities. This investigation underscores our commitment to work in a collaborative effort to promote honest and ethical government at all levels and to prosecute those who allegedly violate the public’s trust. If you commit a crime, status as a political leader will not protect you from federal prosecution," said Assistant Special Agent in Charge Kareem Carter.
Campos was elected as a Prince George’s County Councilman representing County District 2 in 2004 and served until he was elected as a Delegate to the Maryland General Assembly in 2014. Campos served as a state delegate until his resignation on September 10, 2015. While Campos served as County Councilman, Prince George’s County allowed each County Council member to award $100,000 in grant funds to non-profit service organizations of their choice.
According to Campos’ plea agreement, Campos conspired to solicit and accept bribes in exchange for favorable official actions. For example, on December 9, 2012, Campos and another suspect met with a cooperating witness to discuss moving the cooperator’s business to the County. They met again on December 21, 2012, and the cooperator gave Campos an envelope with $3,000 in cash. Campos told the cooperator to find a non-profit organization (NPO), and Campos would arrange a grant that the NPO could share with the cooperator. On February 6, 2013, the cooperator received a check for $5,000, made out to the NPO, with a note that the grant represented funds from District 2.
On July 12, 2013, Campos and the other suspect met with the cooperator to discuss other NPOs that Campos could use to funnel County grant funds to the source. Campos said that he was going on vacation and “could use an advance for my trip.” On July 22, 2013, the cooperator called Campos and proposed meeting to give Campos information about the NPOs the cooperator had lined up to receive County grant funds. The cooperator said that he also wanted to “take care” of Campos before his trip.
At a meeting on July 25, 2013, the cooperator gave Campos $3,000 in cash. On November 15, 2013, an undercover FBI employee (UCE) picked up a check for $5,000 in County grant funds made out to the UCE’s NPO. The UCE posed as a businessman who owned a property management company and wanted to expand his business into the County and the surrounding area.
Campos subsequently asked the UCE to make a $2,000 campaign contribution to the another candidate’s campaign. On January 7, 2014, at Campos’ request, the UCE attended a political fundraiser for the candidate. During the fundraiser, Campos asked the UCE to increase the contribution to $4,000. The UCE agreed to make a $2,000 contribution at the fundraiser and pay an additional $2,000 if Campos would support the UCE’s company obtaining a property management contract with a housing authority outside Maryland. Campos agreed.
On January 28, 2014, the UCE sent Campos a draft letter of support. Campos forwarded the letter to a County employee with instructions to put the letter on official County letterhead and send it back to the UCE, who received the letter by email that same day. On February 4, 2014, Campos and UCE met in Alexandria, Virginia, and the UCE gave Campos $2,000 in cash. Later, Campos and UCE had the following conversation:
Campos: I told you, you were a bad influence. [laughs]
UCE: Oh, man. You can always say no. You say no to me right now. You say no, you
walk away.
Campos: I’m a mortal man – that’s the problem.At a meeting on April 4, 2014, the other suspect told the cooperator that Campos needed $10,000 to pay a campaign-related expense, and that Campos wanted the cooperator to pay in exchange for Campos arranging another grant to an NPO selected by the cooperator.
On April 9, 2014, the other suspect told the cooperator that Campos wanted to “hook the source up” with the developer of a new business in the County that would retain the cooperator’s services. The other suspect stated that the business owed Campos because Campos had obtained a tax benefit for the business. The cooperator gave the other suspect $3,000 in cash for Campos, which the other suspect gave to Campos later that day. At a meeting the next day, Campos agreed to provide money to the cooperator through an NPO associated with the UCE. Campos also said he was meeting with the developer and would tell the developer that Campos wanted the developer to work with the cooperator.
On April 17, 2014, the UCE gave Campos another $2,000 in cash.
Campos also admitted that he received bribe payments from numerous other individuals. For example, from 2011 through 2014, Campos received between $21,000 and $24,000 from two County business owners in exchange for giving approximately $325,000 in County grant money to entities controlled by those business owners
As part of his plea agreement, Campos will be required to forfeit and pay restitution of at least $340,000.
Campos faces a maximum sentence of five years in prison for the conspiracy, a maximum of 10 years in prison for bribery. U.S. District Judge Paula Xinis has scheduled sentencing for April 10, 2017.
United States Attorney Rod J. Rosenstein commended the FBI, IRS-CI, and Prince Georges County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom and James A. Crowell IV, who are prosecuting the case.
Gladstone Man Indicted for Heroin ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Gladstone, Mo., man was indicted by a federal grand jury today for his role in a conspiracy to distribute heroin.
Charles David Rowell, 57, of Gladstone, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Rowell on Dec. 19, 2016.
The federal indictment alleges that Rowell participated in a conspiracy to distribute one kilogram or more of heroin from Jan. 1 to Dec. 16, 2016. Rowell is also charged with one count of possessing heroin with the intent to distribute.
According to an affidavit filed in support of the original criminal complaint, Rowell was stopped by law enforcement officers on Dec. 16, 2016, for a turn signal violation near Northeast 74th Terrace and Northeast Shoal Creek Parkway in Kansas City, Mo. When officers searched the pickup truck Rowell was driving, they found a plastic bag containing seven clear plastic baggies inside a toolbox in the pickup truck. The seven plastic baggies had a combined weight of approximately 194 grams of heroin.
Today’s indictment also contains a forfeiture allegation, which would require Rowell to forfeit to the government any property derived from the proceeds of the drug-trafficking conspiracy, including $320,000 that was received from the unlawful distribution of heroin (based on a sale price of $2,000 per ounce of heroin and distribution of 160 ounces of heroin).
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Clay County Drug Task Force.
Four Individuals Charged for Alleged Involvement in Foreign Bribery Scheme Involving $800 Million International Real Estate DealRead the Press Release
Court documents were unsealed today charging four individuals for their roles in a scheme to pay $2.5 million in bribes to facilitate the $800 million sale of a commercial building in Vietnam to a Middle Eastern sovereign wealth fund.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
“This alleged conduct proves the adage that there is truly no honor among thieves,” said Assistant Attorney General Caldwell. “The indictment alleges that two defendants wanted to bribe a government official; instead they were defrauded by their co-defendant. Today’s charges are another example of the Criminal Division’s commitment to rooting out all manner of corruption.”
“The father-son defendants, Ban Ki Sang and Joo Hyun Bahn, allegedly conspired to bribe a foreign official to close an $800 million deal for a 72-story skyscraper in Vietnam, a deal that would have led to a multimillion-dollar commission for the Manhattan real estate broker son and much needed capital for the father’s construction company in Korea,” said U.S. Attorney Bharara. “But these alleged schemers were themselves double-crossed, as the man who purportedly set up the bribery scheme, Malcolm Harris, took the bribe money and pocketed it. This alleged bribery and fraud scheme offends all who believe in honest and transparent business, and it stands as a reminder that those who bring international corruption to New York City, as alleged here, will face the scrutiny of American law enforcement.”
“When Ban, a senior executive at Landmark 72, realized the debts owed to his company’s creditors were mounting, he sought the support of his son Bahn, a broker for a real estate firm in Manhattan,” said Assistant Director in Charge Sweeney. “The plan was for Bahn to secure an investor for Landmark 72, and the brokerage agreement they entered into would ultimately secure Bahn a lucrative profit. But instead of lawfully obtaining financing for the deal, they allegedly entered into an illegal agreement with Harris to bribe a foreign official into purchasing the property. In the end, they were hoodwinked by their very own criminal activity.”
Joo Hyun Bahn, aka Dennis Bahn, 38, of Tenafly, New Jersey, and his father, Ban Ki Sang (Ban), 69, of Seoul, South Korea, are each charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), three counts of violating the FCPA, one count of conspiracy to commit money laundering and one count of money laundering. In addition, Bahn and Malcolm Harris, 52, of New York City, are each charged with one count of wire fraud, one count of conducting monetary transactions in illegal funds and aggravated identity theft. San Woo, aka John Woo, 35, of Edgewater, New Jersey, was charged separately by complaint with one count of conspiracy to violate the FCPA. Bahn was arrested in Tenafly earlier this morning, and Woo was arrested at JFK Airport. Bahn and Woo are expected to be presented later today before U.S. Magistrate Judge Kevin Nathaniel Fox of the Southern District of New York. Ban and Harris remain at large.
According to the indictment and the complaint, from in or about March 2013 through in or about May 2015, Ban was a senior executive at Keangnam Enterprises Co. Ltd. (Keangnam), a South Korean construction company that built and owned Landmark 72, a building complex in Hanoi, Vietnam. In early 2013, Keangnam was experiencing a liquidity crisis; the debts owed to the company’s creditors were maturing and Keangnam needed to raise capital. Ban allegedly convinced Keangnam to hire his son Bahn to secure an investor for Landmark 72. Thereafter, Keangnam entered into an exclusive brokerage agreement with Bahn, who worked as a broker at a commercial real estate firm in New York City, and his firm. Pursuant to the agreement, Bahn stood to earn a multimillion-dollar commission from Keangnam if he was successful in securing an investor.
Instead of obtaining financing through legitimate channels, Bahn and Ban allegedly conspired to pay bribes to a foreign official of a Middle Eastern country, in order to induce the official to use his influence to convince his country’s sovereign wealth fund to acquire Landmark 72 for approximately $800 million. Harris, who held himself out as an agent of the foreign official despite not actually having such a relationship, allegedly deceived Bahn and Ban by sending numerous emails that were purportedly sent by the foreign official. According to the indictment, in or about April 2014, Bahn and Ban agreed to pay, through Harris, $2.5 million in bribes to the official, including $500,000 upfront and $2 million upon the close of the sale of Landmark 72. Woo helped Bahn and Ban obtain the $500,000 that was used as the upfront bribe payment. Bahn and Ban arranged the transfer of the $500,000 to Harris for him to pay to the foreign official, unaware that Harris did not have the relationship he claimed with the foreign official. Instead, Harris stole the $500,000, spending the money on lavish personal expenses, including rent for a luxury penthouse apartment in Williamsburg, Brooklyn.
According to the indictment, over the course of 2014 and 2015, Keangnam’s liquidity crisis worsened. Believing that the planned bribery would result in the sale of Landmark 72, and not wanting to lose his commission, Bahn allegedly engaged in a fraudulent scheme to trick Keangnam and its creditors into believing the sovereign wealth fund was close to acquiring Landmark 72. In furtherance of the fraudulent scheme, Bahn repeatedly lied to Keangnam and its creditors about the status of the Landmark 72 deal, knowing that Keangnam and its creditors would rely upon the misrepresentations. In addition, Bahn forged emails from the foreign official and other documents to make the sale of Landmark 72 to the sovereign wealth fund appear imminent to Keangnam and its creditors. Ultimately, when the sale of Landmark 72 to the sovereign wealth fund failed to materialize, Keangnam was forced to enter court receivership in South Korea. Bahn is also alleged to have stolen approximately $225,000 of the $500,000 that Keangnam had advanced Bahn’s firm to cover brokerage expenses.
The charges contained in the indictment and the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
FBI’s New York Field Office International Corruption Squad investigated the case. The Department of Justice’s Office of International Affairs is providing assistance in this investigation. Trial Attorney Dennis R. Kihm of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Daniel Noble of the Southern District of New York’s Complex Frauds and Cybercrime Unit are prosecuting the case.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.