Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
23 February 2017
Owner of Mall Kiosk Businesses Sentenced for Immigration and Money Laundering CrimesRead the Press Release
NEWPORT NEWS, Va. – Eyal Katz, 38, a citizen of Israel, was sentenced today to seven years in prison for his role in an immigration fraud and money laundering scheme. Katz was sentenced to three years of supervised release, a $20,000 fine and ordered to forfeit certain property.
According to the statement of facts filed with the plea agreement, Katz, operating from an office in Tel Aviv, Israel, would identify, recruit and send foreign nationals from Israel to the United States on B-2 visitor visas. Once those foreign nationals were in the United States, they would be sent to work for one of several business entities, known collectively as RASKO, a mall-based kiosk business in Virginia, Georgia, Pennsylvania and New Jersey through which they sold Dead Sea Salt products. Katz and his co-conspirators would provide housing and transportation to the foreign nationals.
From 2011 through the present, the conspirators, led by Omer Gur in the United States and Katz in Israel, recruited over 140 foreign nationals from Israel to work at the kiosks, in violation of the workers’ B-2 visitor visa status. From 2012 through 2014, RASKO received over $14 million through its kiosk based sales. Several million dollars from these sales were then routed to Israel-based accounts, including accounts controlled by Katz, and spent on lodging, travel, kiosk rentals and other expenses of the scheme. To date, nine of the ten charged defendants in the case have been arrested. Katz is the ninth defendant to plead guilty.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Robin Blake, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and Christian Schurman, Acting Director of the Diplomatic Security Service for the U.S. Department of State, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Brian J. Samuels, Lisa R. McKeel and Kevin Hudson prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-17.
Owner of DTS Medical Supply Sentenced to 27 Years in Connection with $3.5 Million Health Care Fraud SchemeRead the Press Release
In San Antonio today, 55-year-old Daniel Thomason Smith was sentenced to 324 months in federal prison for his role in an estimated $3.5 million Health Care Fraud scheme announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs and Texas Attorney General Ken Paxton.
In addition to the prison term handed down this morning, United States District Judge Alia Moses ordered Smith to pay $3,269,300.11 in restitution and be placed on supervised release for a period of three years after completing his prison term.
On June 28, 2016, a federal jury convicted Smith and his co-defendant, Kathleen Marina Kelly-Tuorila of one count of conspiracy to commit Health Care Fraud, one count of aiding and abetting Health Care Fraud, eleven counts of aiding and abetting aggravated identity theft and eight counts of aiding and abetting false statements related to a Health Care matter.
Both Medicare and Medicaid provide qualified beneficiaries with financial remuneration for the purchase of prescribed and necessary medical equipment. Such medical equipment would include powered wheelchairs, powered scooters and accessories related to those two devices. Medicare and Medicaid set a rate of compensation for each of these devices and the rate of compensation differed between devices and was to be based on the type of device that was prescribed for the beneficiary and delivered to the beneficiary.
Evidence presented during trial revealed that between May 2006 and January 2010, the defendants conspired to submit numerous false and fraudulent benefit claims to Medicaid and Medicare seeking compensation for powered wheelchairs. Smith employed Robin Renee Haigler, a third defendant in this case, on a commission basis to recruit customers primarily in the Waco area. Kelly-Tuorila used the collected customer information from Haigler to generate and submit fraudulent claims for reimbursement to Medicaid and Medicare for powered wheelchairs. According to court testimony regarding the aggravated identity counts, names of physicians were used to support claims for reimbursement when the named physician never prescribed a powered wheelchair for the customer and, in some instances, didn’t even know the customer and had never had them as a patient. Evidence also revealed that even though DTS billed for powered wheelchairs, they delivered less-expensive powered scooters to customers, which resulted in a larger payment from Medicaid/Medicare and a larger percentage of profit for DTS and Smith.
Defendants Smith and Kelly-Tuorila have been held in federal custody since the jury verdict in June 2016. Sentencing for Kelly-Tuorila has yet to be scheduled. The third defendant in this case, 60–year-old Robin Renee Haigler of Waco, TX, pleaded guilty to the conspiracy charge on August 17, 2015. Haigler was sentenced on November 7, 2016 to 87 months of federal imprisonment.
This investigation was conducted by the agents with the Federal Bureau of Investigation together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant United States Attorney Greg Surovic and Special Assistant United States Attorney Rex Beasley are prosecuting this case on behalf of the Government.
Okreek Woman Indicted on Assault ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Okreek, South Dakota, woman has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Selena Chief Eagle, age 24, was indicted on February 15, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 22, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction for each charge is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 10, 2017, Chief Eagle assaulted an individual with a knife with intent to do bodily harm, and that said assault resulted in serious bodily injury.
The charge is merely an accusation and Chief Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Chief Eagle was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Ocean County, New Jersey, Business Owner Admits Operating Unlicensed Money Transmitting BusinessRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man today admitted owning and operating an unlicensed money transmitting business, U.S. Attorney Paul J. Fishman announced.
Yisroel Malamud, 53, of Lakewood, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with running an unlicensed money transmitting business.
According to documents filed in this case and statements made in court:
Between January 2010 and May 2013, Malamud maintained a retail storefront in Lakewood under the name “Beepers Plus.” Malamud received money from members of the public, deposited the funds into bank accounts that he maintained in the name of different entities, and then transmitted the money from those bank accounts to third-parties within the United States in accordance with the customers’ instructions, charging the customers a fee for this service.
New Jersey law provides that the operation of an unlicensed money transmission business is punishable as a felony. Federal law requires anyone conducting such a business to register the business with the Secretary of the Treasury. Malamud did not possess and failed to obtain a money transmitting license, nor did he register with the Secretary of the Treasury.
The charge to which Malamud pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 1, 2017.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea.
The government is represented by Deputy Chief, Criminal Division Eric W. Moran of the U.S. Attorney’s Office in Newark.
Defense Counsel: Peter W. Till Esq., Springfield, New Jersey, and Stacy Ann Biancamano Esq., Chatham, New Jersey
Northfield Vermont Man Sentenced to Six Months’ Imprisonment for Possession of Pipe BombRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Mark McCloud, 47, formerly of Northfield, Vermont, was sentenced to six months’ imprisonment by United States District Court Judge Geoffrey W. Crawford for unlawfully possessing explosive devices, that is two pipe bombs. Judge Crawford also sentenced McCloud to one year of supervised release and ordered him to pay a total of $5,000 in restitution to the victims. The defendant faced a maximum possible penalty of ten years in prison and a fine of up to $250,000.
According to court records, on December 9, 2015, McCloud lit an explosive device he was holding in his hand outside his residence at 50 North Street in Northfield. The device exploded. As a result, McCloud lost his left hand. Multiple bystanders were also injured, including his pregnant wife and a juvenile. The pipe bomb was made of copper tubing and explosive powder. According to court records, in executing a search warrant of McCloud’s home, law enforcement officers found several feet of fusing materials commonly known as “quick match” or “instantaneous fuse.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), the Vermont State Police, and the Northfield Police Department. The United States was represented by Assistant U.S. Attorney Joseph Perella. The defendant was represented by David McColgin, Esq.
North Carolina Man Sentenced to Prison for Failing to Pay Employment TaxesRead the Press Release
A North Carolina businessman was sentenced today to 15 months in prison for failing to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra Hairston for the Middle District of North Carolina.
According to court documents, Paul Harvey Boone, 54, of Hillsborough, North Carolina, owned and operated Boone Audio Inc. in Burlington, North Carolina. For most of 2008 through 2011, Boone used company funds for personal expenses while failing to pay over the employment taxes withheld from his employees’ wages. Boone also failed to file his individual income tax returns and pay personal income taxes for tax years 2008 through 2011.
“Paul Boone’s prison sentence serves as a reminder to employers that willfully failing to comply with employment tax obligations is a crime,” said Acting Deputy Assistant Attorney General Goldberg. “We are committed to investigating, prosecuting and seeking incarceration of employers who use their employees’ funds to line their own pockets.”
“IRS – Criminal Investigation (CI) realizes the damaging consequences caused by Boone’s failure to pay over employment taxes,” said Acting Special Agent in Charge Michael C. Daniels of IRS-CI. “It results in the loss of tax revenue to the U.S. government and in the loss of future social security or Medicare benefits for the employees. Those who fail to do so will not be tolerated and will be prosecuted.”
In addition to the term of prison imposed, Boone was ordered to serve three years of supervised release and to pay restitution to the IRS in the amount of $385,610.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS-CI, who conducted the investigation, and Trial Attorneys Lauren Castaldi and Nathan Brooks of the Tax Division and Assistant U.S. Attorney Anand Ramaswamy of the Middle District of North Carolina, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nine People Arrested Involving Hannibal Drug Trafficking ConspiracyRead the Press Release
Hannibal, MO – Police and federal agents made a series of early-morning raids and arrests in the St. Louis and Hannibal areas Wednesday that targeted a narcotics trafficking distribution conspiracy in the Hannibal, Missouri, area.
A federal grand jury indictment against 13 men and women handed down in December was unsealed Wednesday after the arrests began. The 19-page indictment describes the actions of couriers of drugs, as well as dealers, enforcers and suppliers.
According to the indictment, Tyrone Williams, aka "Fatman," and Justin Woodson, aka "Juddy," obtained cocaine from a source in Austin, Texas, who transported it to St. Louis. Woodson hired couriers, often females, to drive the cocaine from St. Louis to Hannibal. After arriving in Hannibal, it was converted into crack cocaine for distribution, primarily at an open-air drug market in the area of the 2000 block of Gordon Street in Hannibal, Missouri. Additionally, the indictment alleges that members of the conspiracy also distributed heroin, cocaine and crack cocaine in the Hannibal area, as well as other areas in the Eastern District of Missouri. There were also charges against five defendants for conspiring to launder the proceeds of the narcotics conspiracy. In addition to criminal charges, the indictment also seeks forfeiture of three vehicles and three pieces of property located in Hannibal, Missouri.
Individuals indicted:
- Justin Woodson, St. Louis, MO
- Tyrone L. Williams, Hannibal, MO
- Tyrone Robinson, Swansea, IL
- Terry T. Williams, St. Louis, MO
- Harold Williams, Hannibal, MO
- Ashley Shaw, Hannibal, MO
- Eric L. Dilworth, St. Louis, MO
- Corey L. Cobb, Hannibal, MO
- Christopher J. Harris, St. Louis, MO
- Sierra Parrish, Quincy, IL
- Louetta M. Dorsey, Mexico, MO
- Brian Jones, Hannibal, MO
- Donte M. Clausell, Hannibal, MO
During the course of the arrests, an individual not part of the indictment, Kalvin Anderson, Hannibal, MO, was arrested. A known associate of one of the indicted defendants, Anderson was arrested when law enforcement determined he was in possession of a firearm after having previously been convicted of a felony. A Glock nine millimeter was seized during his arrest.
The initial appearances of defendants Robinson, Shaw, Cobb, Harris, Parrish, Dorsey and Jones were held late Wednesday in front of United States Magistrate Judge Noelle Collins. All seven defendants were detained pending detention hearings that will be held Friday, February 24.
This case was investigated by multiple law enforcement agencies, including the Drug Enforcement Administration, the West Central Illinois Drug Task Force, Quincy Police Department, Troy Police Department, Lincoln County Sheriff’s Office, Adams County Sheriff’s Office, Hannibal Police Department and the Northeast Missouri Narcotics Task Force. Assistant United States Attorney Amanda Wick is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
New Jersey Man Charged with Assaulting A Federal OfficerRead the Press Release
Isiah Heyward, 24, of Sicklerville, NJ., was charged today by indictment with assault on a federal officer, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about December 10, 2016, Heyward forcibly assaulted, resisted, opposed, impeded, intimidated and interfered with a Correctional Officer of the Federal Bureau of Prisons while the officer was engaged in his official duties.
If convicted the defendant faces a maximum sentence of 8 years’ imprisonment.
The case was investigated by the Federal Bureau of Investigations and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Navajo Man from Shiprock Sentenced for Assaulting Federal OfficerRead the Press Release
ALBUQUERQUE – Larry Lee Emerson, Jr., 36, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today in federal court in Albuquerque, N.M., to 37 months in prison for assaulting a federal officer. Emerson will be on supervised release for three years after completing his prison sentence.
Emerson was arrested in Aug. 2016, on a criminal complaint charging him with assaulting a Bureau of Indian Affairs (BIA) officer on July 6, 2016, in San Juan County, N.M. Emerson assaulted the officer while the officer was attempting to arrest him.
Emerson was indicted on Aug. 23, 2016, and charged with assaulting a federal officer who was engaged in the performance of his official duties. On Nov. 28, 2016, Emerson pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Elaine Y. Ramirez prosecuted the case.
Middletown Man Indicted on Drug ChargeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Marcello Whyte, age 33, of Middletown, Pennsylvania, was indicted on February 22, 2017, by a federal grand jury on drug charges.
According to United States Attorney Bruce D. Brandler, the indictment charges Whyte with possessing with the intent to distribute 250 grams of cocaine and traveling interstate for the purpose of drug trafficking. The charges arise out of an incident that occurred on March 16, 2016, when the defendant’s car was involved in a traffic stop conducted by the Pennsylvania State Police that led to the discovery of the cocaine in the defendant’s car.
The case was investigated by the Pennsylvania State Police, the Dauphin County District Attorney’s Office and the Harrisburg Resident Office of the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney William A. Behe.
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 guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the drug charge is a 20-year term of imprisonment. A term of supervised release following imprisonment must be imposed as well as a potential fine of $250,000. 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.
# # #
Miami-Dade County Man Sentenced to 100 Years in Prison for Child Pornography OffensesRead the Press Release
Manuel Perez Gonzalez, 39, of Miami, was sentenced yesterday to 100 years in prison, by U.S. District Judge Ursula Ungaro, after having been convicted at trial of distribution, receipt and possession of child pornography. Gonzalez was also sentenced to 25 years of supervised release and ordered to register as a sex offender upon his release from prison.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, United States Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, Juan J. Perez, Director, Miami-Dade Police Department (MDPD), and Daniel J. Oates, Chief, Miami Beach Police Department (MBPD), made the announcement.
According to court documents and evidence at trial, on October 22, 2015, law enforcement officers executed a search warrant at Gonzalez’s home after receiving information that a computer user at the residence was downloading child pornography. While executing the search warrant, agents found Gonzalez’s laptop and a backup disc from another computer. A forensic examination of the devices revealed photographs of Gonzalez and evidence of the defendant’s use of social media. In addition, the forensic examination revealed numerous videos and images of child pornography. Residents from the searched home testified that Gonzalez used the laptop that was found to contain pornographic images.
Mr. Ferrer commended the investigative efforts of ICE-HSI, USSS, MDPD, and MBPD. This case was prosecuted by Assistant U.S. Attorneys Jonathan Kobrinski, Benjamin Widlanski, and Ignacio Vazquez.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Member of Sunland Park Heroin Trafficking Ring Pleads Guilty to Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Armando Daniel Marquez, 54, of Sunland Park, N.M., pled guilty today in federal court in Las Cruces, N.M., to heroin trafficking charges resulting from a DEA-led investigation targeting a heroin trafficking ring operating out of Sunland Park, N.M.
The investigation targeted a heroin trafficking organization allegedly led by Raymundo Muñoz, 68, of Sunland Park, N.M., that allegedly obtained its heroin from Juan Francisco Rivera, 60, of El Paso, Tex. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Ten alleged members of the heroin trafficking ring are charged in a 30-count indictment with participation in a heroin trafficking conspiracy and a series of substantive heroin trafficking offenses. The conspiracy charge alleges that all ten defendants conspired to distribute heroin in Doña Ana County and elsewhere between May 8, 2016 and July 12, 2016. It also includes 23 counts charging certain defendants with distributing heroin or possessing heroin with intent to distribute and six counts charging certain defendants with using communications devices (telephones) to facilitate heroin trafficking crimes.
According to the indictment, Rivera routinely supplied Muñoz with heroin, in quantities ranging from two to nine ounces, which was smuggled by couriers into the United States across the international border in El Paso. The indictment alleges that Muñoz took the heroin to his Sunland Park residence where he distributed the drugs to others. Members of the conspiracy allegedly used telephones to negotiate their heroin deals, arrange for heroin deliveries, and pay for the heroin.
During today’s proceedings, Marquez pled guilty to conspiracy, distribution of heroin and use of a communication facility to further the commission of a drug trafficking crime. In entering the guilty plea, Marquez admitted to conspiring with Munoz to distribute heroin to others between May and July 2016. More specifically, Marquez admitted that on May 26, 2016, he sold eight grams of heroin to other individuals and from May 26, 2016, through June 26, 2016, he facilitated the sale and delivery of approximately 40 to 60 grams of heroin.
Four other defendants previously have entered guilty pleas in the case. Alberto Lozano-Morales, 43, of Sunland Park, pled guilty on Dec. 6, 2016, and under the terms of his plea agreement, Lozano-Morales will be sentenced to a year and a day in prison followed by a term of supervised release to be determined by the court. Blanca Elisa Tovar, 42, of El Paso, Texas, pled guilty on Dec. 13, 2016, and under the terms of her plea agreement, Tovar will be sentenced to 24 months in prison followed by a term of supervised release to be determined by the court. Carlos Diaz, 38, of El Paso, Texas, pled guilty on Jan. 24, 2017. Juan Francisco Rivera pled guilty on Feb. 7, 2017, and under the terms of his plea agreement, Rivera will be sentenced to 108 months in prison followed by a term of supervised release to be determined by the court. Diaz, Lozano-Morales, Tovar, Rivera and Marquez are awaiting sentencing hearings which have yet to be scheduled.
The remaining co-defendants have entered pleas of not guilty to the charges in the indictment. Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The Las Cruces office of the DEA and Sunland Police Department investigated these cases with assistance from the El Paso office of the FBI, the U.S. Border Patrol, and the Gang Unit of the El Paso Police Department. Assistant U.S. Attorneys Dustin C. Segovia and Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office are prosecuting these cases 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.
Member of Large-Scale ‘ATM Skimming’ Scheme Sentenced to 57 Months Prison for Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Spain and extradited to the United States was sentenced today to 57 months in prison for his role in a conspiracy to steal bank account information from thousands of customers by installing secret card-reading devices and pinhole cameras on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.
Alin Carabus, 43, previously pleaded guilty before U.S. District Judge William J. Martini to Count One of an indictment charging him with conspiracy to commit bank fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this and other cases and statements made in court:
Carabus admitted he was part of a vast “ATM skimming” scheme that stole bank account information by installing secret card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere. The scheme, which ultimately defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million and impacted thousands of customers, was organized by Marius Vintila, 34, also a native of Romania.
Vintila and Bogdan Radu, 34, designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Carabus and others then secretly installed devices onto bank ATMs and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions at ATMs.
The stolen data was used to create thousands of fraudulent ATM cards, which Carabus and others used to withdraw millions of dollars from customers’ bank accounts.
In addition to the prison term, Judge Martini also sentenced Carabus to five years of supervised release and ordered to pay restitution and forfeiture of $5 million.
The ATM skimming operation in which Carabus participated is one of the largest ever uncovered by law enforcement. To date, 15 of the 16 individuals that have been charged in connection with this scheme, including Carabus, Vintila and Radu, have been convicted.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the Special Prosecutions Division and David M. Eskew of the Criminal Division in Newark.
Defense Counsel: Joseph M. Corazza Esq., Sparta, New Jersey
Man Pleads Guilty and is Sentenced to Prison for Hate Crime at Downtown Pittsburgh T-StationRead the Press Release
PITTSBURGH - Ryan Kyle pled guilty and has been sentenced in Pittsburgh to 36 months imprisonment, to run concurrently with the term of imprisonment imposed at Criminal No. 9241 of 2015, with credit for time served in state custody from February 16, 2016, to April 20, 2016, followed by three years supervised release, on a charge of violating the Hate Crimes Prevention Act, Acting United States Attorney Soo C. Song announced today.
United States District Judge Cathy Bissoon imposed the sentence on Ryan Kyle, age 23, of Baldwin Borough, Pennsylvania.
According to information presented to the court, on May 30, 2015, Kyle violated the Hate Crimes Prevention Act by willfully causing bodily injury to K.L. because of K.L.’s perceived race, color, and national origin.
The government informed the Court that if the case were to proceed to trial, the evidence would establish that Kyle assaulted K.L., a then 53-year-old African-American man, because of K.L.’s actual and perceived color and race. The assault took place at the Wood Street T Station in downtown Pittsburgh on May 30, 2015. The assault was captured on Port Authority video and occurred following a Kenny Chesney concert at Heinz Field.
Assistant United States Attorney Cindy K. Chung prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation and the Port Authority Police Department for conducting the investigation leading to the successful prosecution of Kyle.
Man Pleads Guilty after Oceanside Cop Finds $2.1 Million in Illicit Drugs Hidden in Car’s Floorboards, Door Panels During Traffic StopRead the Press Release
Assistant U. S. Attorney Sherri Hobson (619) 961-0287
NEWS RELEASE SUMMARY – February 23, 2017
SAN DIEGO – San Ysidro resident Ricard Lujan, who was arrested in November during a routine traffic stop when an Oceanside police officer discovered millions of dollars’ worth of methamphetamine and cocaine hidden inside his vehicle, entered a guilty plea in federal court today.
Lujan pleaded guilty to two counts of possession of controlled substances with intent to distribute before U.S. Magistrate Judge Barbara Lynn Major. Lujan was arrested on November 17, 2016, after the police officer discovered the drugs hidden inside the floorboards, door panels, center console and elsewhere in Lujan’s vehicle.
In his plea agreement, Lujan admitted that he drove his vehicle loaded with controlled substances from Mexico into the United States and that he intended to deliver the controlled substances to another person.
According to a federal complaint, the Oceanside Police Officer was conducting random vehicle registration checks at 12:40 a.m. on Harbor Drive in Oceanside. While doing this he noticed a car with expired tags. The officer then saw Lujan enter the Mitsubishi Endeavor SUV and attempt to leave the area. The officer stopped the vehicle. While talking to the officer, Lujan, the registered owner of the vehicle, appeared nervous and agreed to a search of his vehicle.
A Border Patrol canine handler responded to the traffic stop to assist Oceanside Police. The dog alerted to the odor of narcotics. Agents from the Drug Enforcement Administration, San Diego Narcotics Task Force, subsequently searched Lujan’s vehicle and found 99 packages that were vacuum sealed in plastic containers of cocaine and 58 rectangular vacuum sealed in plastic containers of methamphetamine. The agents seized approximately 89.50 kilograms of cocaine and approximately 68.90 kilograms of methamphetamine.
The estimated wholesale of the cocaine is $1.7 million dollars. The estimated wholesale value of the methamphetamine is $450,000.
Lujan is scheduled for sentencing on June 5, 2017 at 9 a.m. before U.S. District Judge Roger T. Benitez. He faces up to 20 years in custody.
DEFENDANT
Ricardo Lujan, age 44
San Ysidro, California
CHARGE
Criminal Case 16CR2910BEN
Two Counts of possession with intent to distribute controlled substances (cocaine and methamphetamine)
Title 21, United States Code, Section 841
Penalties: 20 years in custody, 3 years of supervised release, $500,000 fine; $100 special assessment
AGENCIES
Oceanside Police Department
Drug Enforcement Administration, San Diego Narcotics Task Force
U.S. Border Patrol, San Clemente Station
Man Found Guilty of Production of Child PornographyRead the Press Release
SAN JUAN, P.R. – After an eight-day trial before U.S. District Court Judge Carmen C. Cerezo, a jury found Noel Turner-Ayala guilty of child pornography offenses, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Turner-Ayala is facing a mandatory minimum sentence of fifteen (15) years imprisonment and a statutory maximum of thirty (30) years, and a maximum possible fine of $250,000. His sentencing was scheduled for June 20, 2017.
The indictment charged that from in or about May 12, 2014 through June 6, 2014, Turner-Ayala, did employ, use, persuade, induce, entice or coerce a female minor, identified as Jane Doe, to engage in sexually explicit conduct, namely the lascivious exhibition of the genital areas and performing sexual acts, for the purpose of producing a visual depiction of such conduct knowing that such visual depiction would be transported or transmitted using any means or facility of interstate or foreign commerce.
The evidence at trial proved that defendant Turner-Ayala had requested sexually explicit images of the then 15-year-old minor through Facebook Messenger. During trial the evidence showed that the defendant’s relationship with the minor victim was not just a “virtual relationship,” but one wherein they also communicated via What’sApp, via telephone and, in person.
“We congratulate the agents who investigated this case, and our attorneys for its successful prosecution,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The conviction of this predator showed the commitment of our law enforcement agencies to apprehend and prosecute criminals who victimize our children.”
The case was investigated by the ICE-HSI and prosecuted by Assistant U.S. Attorney Elba Gorbea.
Lubbock Methamphetamine Traffickers SentencedRead the Press Release
LUBBOCK — Two Lubbock residents who pleaded guilty to methamphetamine trafficking conspiracy charges were sentenced today by Senior U.S. District Judge Sam R. Cummings, announced U.S. Attorney John Parker of the Northern District of Texas.
Jonathan Lovato, 34, was sentenced to two 480-month sentences in federal prison, to run concurrently, and Crystal Ann Alaniz, 33, was sentenced to 60 months in federal prison. Each pleaded guilty in November 2016 to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. Lovato pleaded guilty to an additional charge of possession of a firearm in furtherance of a drug trafficking crime and aiding and abetting.
Co-defendants Arleen Theres Keithley, 36, Juan Carlos Lara-Ochoa, 24, and Jose Alberto Cibrian, 41, pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
According to the factual resume filed in the case, on March 17, 2016, officers with the Lubbock Police Department conducted an undercover narcotics purchase from a hotel room in Lubbock and were watching the room to monitor traffic to and from the location while a search warrant was obtained. During this surveillance, officers saw the main target of the investigation, Lovato, arrive in a silver sedan and begin to take items from the hotel room. Lovato attempted to leave the hotel in his vehicle and, when officers tried to detain him, he sped away. He evaded officers for several blocks, driving in excess of the speed limit, against oncoming traffic, and through several traffic-controlled intersections without observing the traffic signals. Lovato’s vehicle was stopped when he struck several other vehicles as he drove against oncoming traffic into a busy street intersection. One of the individuals in a vehicle he struck sustained life-threatening injuries and was pronounced dead at the scene.
As officers approached Lovato’s vehicle, they discovered he had a 9mm caliber pistol in his waistband. A package containing a substance, later verified as 118.13 grams of methamphetamine, was found in the glove box and five cell phones were found throughout the vehicle. Lovato admitted he possessed the firearm and admitted to selling methamphetamine.
According to documents filed in the case, on April 30, 2016, a trooper with the Texas Department of Public Safety (DPS) stopped a vehicle in Lubbock for traffic violations. Keithley was the driver; Alaniz was the passenger. Keithley was arrested for driving with an invalid license, and Alaniz, who had several outstanding warrants, was also placed under arrest.
Both Keithley and Alaniz were placed in the trooper’s vehicle. The in-car video recording system captured Keithley maneuver her hands—while handcuffed—to her left breast area and force a substance in a plastic bag out of her bra. Keithley then used her teeth to remove the item from her bra and toss it to the back seat area where Alaniz was seated. Alaniz hid the item in her pants. Both women were transported to the Lubbock County Detention Center. When asked if either was in possession of any contraband, Alaniz initially stated, “no,” before admitting “I have stuff on me.” Alaniz was searched and two plastic bags containing suspected methamphetamine were found in her pants. Alaniz was also in possession of two plastic bags that contained several smaller plastic bags with markings consistent with narcotics trafficking.
The Texas DPS Crime Lab determined that the suspected methamphetamine was in fact methamphetamine, and it weighed a total of 54.93 grams.
The Lubbock Police Department, the Littlefield Police Department, the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Sean Long prosecuted.
# # #
Longtime Scam Artist Sentenced to More Than 15 Years in Prison for Telemarketing Fraud and Obstruction of JusticeRead the Press Release
SAVANNAH, GA: Stacy Paul Waddell, 45, of Savannah and elsewhere, was sentenced earlier this week by U.S. District Court Judge William T. Moore, Jr. to 183 months of in prison for wire fraud, selling counterfeit coins and tampering with official proceedings. Waddell’s sentencing followed his conviction in August of 2016 after a one-week jury trial. Under federal law, the Court’s sentence was imposed without the possibility of parole.
According to the evidence presented during trial and at sentencing, Waddell incorporated, operated and controlled a variety of companies that purported to engage in the sale of precious metals. With the help of others who he met at a Tampa-area strip club, Waddell posted advertisements on the Internet that offered to sell gold and silver at deeply discounted prices. After potential customers contacted Waddell by phone or text message, Waddell then lied about the availability of the metals and falsely promised quick delivery. Relying on Waddell’s misrepresentations, his victims wired money into bank accounts Waddell controlled. Waddell used those funds to gamble at casinos and never made many of the shipments he had promised. Additionally, Waddell knowingly sold counterfeit coins to at least one of his victims and then, after his arrest, asked an acquaintance to destroy them. The losses suffered by Waddell’s victims totaled over $800,000.
United States Attorney Edward J. Tarver stated, “Waddell is serial offender who has preyed on the people of this community and elsewhere since he was a teenager. Unfortunately, he graduated from passing bad checks to cheating people out of their savings and homes, all in a selfish effort to maintain an expensive lifestyle and perpetuate his gambling habit. Regardless of how he fared at the gaming tables, the worst bet Waddell ever made was thinking that he would evade justice and not be held accountable for his crimes.”
“Use caution when approaching any investment. If the subject or company pushing the investment is promising high returns, in this particular case through low gold prices, that should raise a red flag for any investor,” cautioned U.S. Secret Service Resident Agent in Change Glen M. Kessler. “The Secret Service, in conjunction with its many law enforcement partners in Georgia, across the United States and around the world, continues to successfully combat these crimes by working closely with experts from all affected sectors to constantly refresh and adapt our investigative methodologies,” said Kessler.
Antonio J. Gomez, U.S. Postal Inspector in Charge of the Miami Division, stated, “The U.S. Postal Inspection Service will stop at nothing to bring fraudsters and swindlers to account for their crimes. By partnering with the Secret Service and other federal agencies, Postal Inspectors will continue to ensure that the U.S. Mail is a safe and secure means of conducting legitimate business."
The United States Secret Service and United States Postal Inspection Service investigated the case with assistance from the Pooler Police Department and Armstrong State University Police Department Cyber Forensics Division. Assistant United States Attorneys Brian T. Rafferty and Theodore S. Hertzberg prosecuted the case and represented the United States at trial. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Las Cruces Man Sentenced to Ten Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE –Jessie Jesus Marquez, 37, of Las Cruces, N.M., was sentenced last week in federal court to 121 months in prison followed by five years of supervised release for his conviction on narcotics trafficking charges. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, El Paso Sector’s Chief Patrol Agent, Jeffrey D. Self of the U.S. Border Patrol, Lt. Bobby Holden, Commander of the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and Chief Pete N. Kassetas of the New Mexico State Police.
Marquez was one of 18 defendants indicted on Oct. 16, 2013, on methamphetamine trafficking charges. The 43-count indictment charged Marquez and his co-defendants with participating in a tristate drug trafficking organization that obtained methamphetamine from Arizona and Texas and distributed the drugs in Otero and Doña Ana Counties, N.M., between Jan. 2013 and June 12, 2013. Among other charges, the indictment charged Marquez with possessing methamphetamine with intent to distribute on March 16, 2013 and April 17, 2013, and with using a telephone to facilitate drug trafficking crimes on three dates in April 2013 and on June 3, 2013.
The indictment was the result of an eleven-month multi-agency investigation led by the DEA that was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. The OCDETF program is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. During the course of the investigation, law enforcement officers seized approximately 3.3 kilograms of methamphetamine and $16,000 in cash.
Marquez’s 17 co-defendants entered guilty pleas to various counts of the indictment, and Marquez alone proceeded to trial. Marquez’s trial on the seven counts of the indictment began on Jan. 25, 2016, and concluded on Jan. 27, 2016, when the jury returned a verdict finding Marquez guilty on six of the seven counts against him and acquitting Marquez on one methamphetamine trafficking charge. The evidence at trial showed that pursuant to a Court-authorized wiretap, agents intercepted numerous communications establishing Marquez’s involvement in the conspiracy and in methamphetamine trafficking.
This case was investigated by the Las Cruces office of the DEA, the U.S. Border Patrol, the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and the New Mexico State Police. Assistant U.S. Attorneys Sarah M. Davenport and Selesia Lee Winston are prosecuting the case.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Jacob “Kobi” Alexander Sentenced to 30 Months in Prison for Securities FraudRead the Press Release
BROOKLYN N.Y. – Jacob Alexander, also known as “Kobi Alexander,” an Israeli national, was sentenced earlier today to 30 months in prison after having pleaded guilty to securities fraud for his role in a stock options backdating scheme involving Comverse Technologies Inc. (Comverse). Alexander was a former Chief Executive Officer and Chairman of the Board of Directors of Comverse, which was traded on the NASDAQ stock market. Comverse was a component stock of the S&P 500 and the NASDAQ 100 at the time of the offense. Last year, Alexander was extradited from Namibia after having been indicted in the Eastern District of New York more than ten years ago. Today’s sentence represents the longest term of incarceration imposed by a court in connection with an options backdating scheme.
The sentencing was announced by U.S. Attorney Robert L. Capers of the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI). In addition, Mr. Capers thanked the Securities and Exchange Commission (SEC) and the Department of Justice’s Office of International Affairs (OIA) for their cooperation and assistance in the prosecution.
“Today’s sentence should send a powerful message to high ranking executives that corporate rank is no shield to criminal liability. CEOs and other members of the C-suite who commit crimes will be held to account to the full extent of the law. For more than ten years, law enforcement pursued Kobi Alexander, and now he has finally been punished for his role in a securities fraud scheme,” stated United States Attorney Capers. “We will continue to follow the evidence in all of our cases, wherever it may lead, and protect the investing public.”
“Kobi Alexander thought he could outwit the law, not once, but twice. First by committing the crimes he’s accused of, and a second time by fleeing the country when he became aware his actions had caught up to him. This case serves as a reminder that the FBI's reach is global, and our commitment to seeing justice served doesn't stop at a border—out of sight will never mean out of mind, and we don’t let you get away that easily,” stated FBI Assistant Director-in-Charge Sweeney.
According to documents filed in this case, Comverse was a communications software company with offices in Woodbury, New York. Between 1998 and 2006, the defendant and his coconspirators engaged in a fraudulent backdating scheme using hindsight to select the issuance date of Comverse stock options, which they awarded to themselves and Comverse employees, and then lied about this practice to investors in public filings and elsewhere. In doing so, the defendant and his coconspirators were able to select issuance dates when Comverse stock was trading lower, thereby awarding themselves and Comverse employees “in-the-money” options without properly accounting for these options in Comverse’s financial disclosures to investors. By backdating options, the defendant and his coconspirators violated accounting rules and caused Comverse to overstate its profits. Additionally, the backdated options also violated the terms of Comverse’s stock option plans that were approved by its shareholders. As the top recipient of stock options in every company-wide grant, the defendant gained approximately $30 million in paper profits from the scheme. Ultimately, the defendant agreed to pay $60 million in forfeiture and civil settlements, which was applied as restitution to compensate Comverse and its shareholders.
When the defendant’s conduct came to light, he attempted to obstruct justice by offering to bribe a witness to make false statements to federal investigators. Shortly before being charged in connection with his scheme, and after he was aware of the government’s investigation, the defendant moved to Namibia, where he relocated with his family. The government promptly sought the defendant’s extradition.
Today's proceeding took place before United States District Judge Nicholas G. Garaufis.
* * *
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney James P. Loonam is in charge of the prosecution and led the Office’s efforts to secure Alexander’s extradition from Namibia, with assistance from the Department of Justice’s Office of International Affairs.
* * *
The Defendant:
JACOB ALEXANDER, also known as “Kobi Alexander”
Age: 64
E.D.N.Y. Docket No. 06-CR-628 (NGG)
Husband and Wife Sentenced to Federal Prison for Production of Child PornographyRead the Press Release
In San Antonio yesterday, 27-year-old William Richard Welsh and 23-year-old Ashleigh Nicole Browning Welsh were sentenced to 327 months in federal prison for production of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
In addition to the prison term, United States District Judge Xavier Rodriguez ordered the Welshes be placed under supervised release for a period of 20 years after completing their prison term.
According to court records, HSI received information that a New Zealand individual was receiving images and videos depicting children engaged in sexually explicit conduct from a Kik Messenger account with subscriber information indicating the account holder resided in San Antonio. Authorities were able to identify the adults in the videos as the Welshes living in the San Antonio, TX area.
Agents from HSI interviewed the Welshes who admitted to producing the child pornography in their home at that time in Stockdale, TX.
The Welshes have remained in custody since being arrested in December 2015. On October 6, 2016, Ashleigh Welsh pleaded guilty to three counts of production of child pornography and on October 13, 2016, William Welsh pleaded guilty to three counts of production of child pornography.
“The heavy sentence imposed on Mr. and Mrs. Welsh sends a clear message that there are serious consequences for those who exploit children in any way,” said Special Agent in Charge, Shane Folden, HSI San Antonio. “Targeting crimes of this nature is a high priority for HSI. We will continue to dedicate HSI resources worldwide to identify and bring to justice these individuals."
This investigation was conducted under HSI’s Operation Predator, an international initiative to protect children from sexual predators. Since the launch of Operation Predator in 2003, HSI has arrested more than 14,000 individuals for crimes against children, including the production and distribution of online child pornography, traveling overseas for sex with minors, and sex trafficking of children. In fiscal year 2015, nearly 2,400 individuals were arrested by HSI special agents under this initiative and more than 1,000 victims identified or rescued.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app or visit the online suspect alerts page.
This investigation was conducted by the U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Guadalupe County Sheriff’s Office. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the government.
Honduran National Sentenced for Being an Illegal Alien in Possession of a FirearmRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JORGE EDUARDO VALLEJO, age 37, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment charging him with violations of the Federal Gun Control Act.
U.S. District Judge Nannette Jolivette Brown sentenced VALLEJO to 10 months imprisonment to be followed by 1 year of supervised release. Following completion of his sentence, VALLEJO will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to the court records, on or about July 12, 2014, VALLEJO, an alien illegally in the United States, was found in possession of a SCCY Model CPX-2, 9mm semi-automatic pistol.
U.S. Attorney Polite praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security in investigating this matter. Assistant United States Attorney Spiro G. Latsis was in charge of the prosecution.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WILSON MAURICIO OSORTO-ESTRADA, age 35, pled guilty today to a one-count Indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a) & (b)(2).
According to the court documents, OSOTRO-ESTRADA reentered the United States after he was previously deported on January 17, 2013.
If convicted, OSOTRO-ESTRADA faces a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for May 18, 2017.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Hodgenville, Kentucky, Bookkeeper Sentenced to 12 Months in Prison for Embezzling from Her EmployerRead the Press Release
Ordered to pay $541,224.88 in restitution
LOUISVILLE, Ky. – The former bookkeeper of an Elizabethtown, Kentucky, health provider was sentenced this week to 12 months and one day in prison and ordered to pay $541,224.88 in restitution by Senior Judge Thomas B. Russell, for embezzling funds through wire fraud announced United States Attorney John E. Kuhn, Jr.
Jeanne E. Goodsell, of Hodgenville, Kentucky, was charged in a seven count criminal information, on May 8, 2015 and entered a guilty plea to all charges on June 4, 2015.
According to information presented in court, Goodsell wired payments to vendors for services were not sent to the vendors, rather, the payments were diverted to an account set up by Goodsell for her own personal use.
During a seven-year period, between June of 2005 and August of 2012, Goodsell embezzled approximately $562,000 from her employer Communicare, a community behavioral health center. Communicare found the discrepancies in 2012 following an audit. Communicare identified approximately 127 Communicare vendors who did not receive payments, even though the payments were recorded on Communicare financial transaction history data.
A further investigation revealed that during the same time period, numerous vendors were electronically wired payments ranging from $1,000 to $35,000 for services, however, the wired payments were sent to Goodsell’s personal accounts.
This case was prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and was investigated by the United States Secret Service.
Hartford Man Charged with Illegally Possessing AmmunitionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in Hartford returned an indictment today charging MICHAEL LEDBETTER, 26, of Hartford, with one count of possession of ammunition by a convicted felon.
As alleged in court documents, on November 27, 2016, members of Hartford Police were dispatched to a residence on Nelson Street on a report of a possible domestic assault. LEDBETTER left the residence shortly before police arrived. A short time later, an officer located LEDBETTER in a vehicle on Barbour Street. After LEDBETTER was secured in handcuffs, an officer conducted a pat down of his person and discovered one .40 caliber Hornady live round in LEDBETTER’s right front pocket.
It is further alleged that, on April 9, 2014, LEDBETTER was convicted in Connecticut Superior Court of six counts of accessory to first degree assault.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The charge of possession of ammunition by a convicted felon carries a maximum term of imprisonment of 10 years.
LEDBETTER has been detained since his arrest on a federal criminal complaint on February 12, 2017.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Hartford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson and Assistant State’s Attorney John F. Fahey of the Hartford State’s Attorney’s Office, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
Harrisburg Man Indicted on Firearms ChargeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Yamil Mediavilla-Diaz, age 30, of Harrisburg, Pennsylvania, was indicted on February 22, 2017, by a federal grand jury on a firearms charge.
According to United States Attorney Bruce D. Brandler, the indictment alleges that on August 19, 2016, in Harrisburg, Mediavilla-Diaz unlawfully possessed an AR-15 and ammunition as a previously convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg City Police Department. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
This case was 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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is ten years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Hammond Man Sentenced to 120 Months ImprisonmentRead the Press Release
HAMMOND- United States Attorney David A. Capp announced that Joshua Herman, 28, of Hammond, Indiana, was sentenced on February 22, 2017 by District Court Judge Rudy Lozano after pleading guilty to possession of a firearm by a felon.
Herman was sentenced to 120 months imprisonment and 2 years of supervised release.
According to Court filings, on May 4, 2016, the Hammond Police Department was dispatched in regards to a shots fired call. Witnesses advised dispatch that the suspects were fleeing in a green vehicle. When officers came upon the vehicle, one of the individuals, later identified as Joshua Herman was observed passing a chain link fence and dropping an object into the grass. Officers searched the area and located a Jimenez Arms .380 caliber handgun. Herman had been previously convicted of Armed Robbery in Cook County Circuit Court on November 30, 2009.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hammond Police Department. This case was handled by Special Assistant United States Attorney Armando Salinas.
# # #
Gun Store Burglary Defendants SentencedRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Brian Keith Jennings, Jr, 19, of South Bend, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio following a guilty plea to 2 counts of theft of firearms from a licensed firearm dealer.
Jennings was sentenced to 70 months imprisonment, followed by 2 years supervision and ordered to pay $50, 231.45 in restitution; for a portion of this restitution amount, Jennings is jointly liable with his co-defendants.
According to documents filed in this case, in May of 2016, a firing range and training facility in South Bend, Indiana, was burglarized and one firearm was stolen. Again, in June of 2016, the same facility was burglarized again and multiple firearms were stolen. During both incidents, a vehicle was driven into the front of the facility to smash the door open and provide a point of entry, through which multiple individuals entered the facility, stole firearms, and then re-entered the vehicle which drove away.
D’dre’a Bostic, 19, of South Bend, Indiana and Matthew Bishop, 19, of South Bend, Indiana were sentenced earlier this month each for a single count of theft of firearms from a licensed dealer. Bostic was sentenced to 37 months imprisonment, 2 years supervised release and ordered to pay $28,530.46 in restitution to be paid jointly with the other 2 co-defendants. Bishop was sentenced to 27 months imprisonment, 2 years supervised release and ordered to pay $28,530.46 in restitution to be paid jointly with the other 2 co-defendants.
This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Mishawaka Police Department; South Bend Police Department and St. Joseph County Police Department. This case was handled by Assistant United States Attorneys Kenneth M. Hays and Molly E. Donnelly.
# # #
Gang Member Sentenced to 10 Years on Stolen Firearm and Ammunition ChargeRead the Press Release
Contact Person: Stacey D. Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Anthony Leroy Doctor, a/k/a “Amp,” age 26, of Columbia, South Carolina was sentenced to 10 years’ imprisonment today after earlier pleading guilty in federal court to possession of a stolen firearm and ammunition, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2). United States District Judge Mary Geiger Lewis of Columbia sentenced Doctor to 10 years’ imprisonment, which will be followed by 3 years of supervised release.
Evidence presented in court during the March 2016 guilty plea hearing established that shortly before midnight on June 7, 2015, Doctor and others became involved in a disturbance in the parking lot outside a nightclub located in a strip mall at Broad River Road and Rushmore Road in Columbia. Doctor was armed with a firearm and when confronted by club security, Doctor left the premises and discarded the firearm in some bushes along a parking lot behind a restaurant across from the club. Later, Doctor returned to the bushes and attempted to retrieve the firearm, but was asked to leave the premises by the restaurant security. Doctor continued to return to search the bushes and while Doctor was looking for the firearm in the bushes, a deputy with the Richland County Sheriff’s Department arrived in response to the restaurant’s call about a suspicious person in their parking lot. When asked what he was doing, Doctor, without turning around, replied that he was looking for his gun. Doctor then turned around and noticed that the security guard had been joined by the Richland County deputy. Doctor, who was intoxicated, was placed in investigative detention while deputies searched for the firearm. Deputies called a K-9 to the scene. The K-9 performed an article search and retrieved the firearm from the bushes where Doctor had been searching earlier. Doctor, an admitted gang member, was placed under arrest for state weapon charge and disorderly conduct. The firearm, a Taurus 9mm handgun, was loaded with one round of 9mm ammunition and had been reported stolen in 2014 from a vehicle in Aiken.
The case was referred to federal authorities for prosecution as Doctor, who was on state probation at the time, is prohibited under federal law from possessing firearms and/or ammunition based upon his prior state felony convictions, which include carjacking, assault and battery with intent to kill, strong arm robbery, and possession of a firearm by a person convicted of a violent crime.
The case was investigated by the Richland County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
#####
Former Owner of Boston Area Jewelry Chain Arrested in Multi-Million Dollar Fraud SchemeRead the Press Release
BOSTON – The former owner of a well-known Boston-area jewelry chain, Alpha Omega Jewelers, was arrested yesterday in Los Angeles after living abroad for almost 10 years following a scheme to defraud the company’s former lenders.
Raman Handa, 67, formerly of Lexington, Mass., was arrested on Tuesday, Feb 21, 2017, at Los Angeles International Airport as he returned to the United States from India where he had been living for almost 10 years. A 2011 indictment unsealed yesterday charges Handa with 12 counts of wire fraud. Handa is scheduled to appear in U.S. District Court in Los Angeles on Friday, Feb. 24, 2017. His first court date in the U.S. District Court in Boston, where charges were filed, has not yet been scheduled.
According to the indictment, Handa was the owner of Alpha Omega Jewelers, a fine watch and jewelry retailer in the Boston-area. From May 2007 to December 2007, Alpha Omega experienced severe financial troubles, and had difficulty keeping current with loans it had with several banks. As part of the scheme to defraud Alpha Omega’s lenders and in order to obtain additional loans, Handa allegedly fabricated inventory on reports that were submitted to the banks. These reports were used by the banks to calculate the credit limit for Alpha Omega, and included inventory such as luxury watches and high-end items from Indian jewelry vendors, that Alpha Omega never in fact possessed.
On Dec. 15, 2007, Handa and his family abruptly left the United States. After discovering Handa’s departure, Alpha Omega’s lender took control of the company and conducted a detailed review of Alpha Omega’s inventory. According to the indictment, the review revealed over $7 million dollars in missing or unaccounted for inventory.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years supervised release and a fine of $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.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Jordi de Llano of Weinreb’s Economic Crimes Unit is prosecuting the case.
Former Nurse Rocky Allen Sentenced to Additional 12 Months in Federal Prison for Felony Criminal Contempt of CourtRead the Press Release
DENVER – U.S. District Court Judge Raymond P. Moore sentenced former nurse Rocky Allen to serve 12 months in federal prison for felony criminal contempt of court, to run consecutive to his 78 month previous sentence, Acting U.S. Attorney Bob Troyer announced. Allen drove to Idaho prior to reporting to prison to visit family despite an order from Judge Moore prohibiting him from traveling there. In total, Allen will now serve 90 months in federal prison. Allen, who appeared at today’s hearing in custody, was remanded at the conclusion of the hearing.
Assistant U.S. Attorney Anna Edgar handled the hearing for the U.S. Attorney’s Office, District of Colorado.
Former Investment Advisor Admits Stealing More Than $600K from ClientsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AARON J. JOHNSON, 36, of Haddam, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of mail fraud stemming from a scheme to defraud clients of his investment business.
According to court documents and statements made in court, JOHNSON was President and Chief Investment Officer of J. Capital Advisors, and was a registered investment advisor until October 21, 2013, when his and J. Capital Advisors’ registration was revoked by the State of Connecticut
In approximately April 2010, JOHNSON became a registered investment advisor with Trade PMR, a Florida company that provides brokerage and custody services for registered investment advisors. Almost immediately, JOHNSON began skimming excessive and unearned fees from client accounts. JOHNSON would submit a request to Trade PMR for fees for a particular client supposedly earned during a particular time period, and Trade PMR would, in turn, arrange for those fees to be deducted from the client’s account and deposited into a J. Capital Advisors’ sundry account over which JOHNSON maintained exclusive control. By December 2012, when Trade PMR terminated its relationship with JOHNSON, JOHNSON had taken a total of $619,231.09 in excessive fees from 19 victim clients.
JOHNSON also attempted to delay and prevent the discovery of the full scope of his scheme by repaying fees he took from one victim, claiming to the victim and to investigators with the State of Connecticut Department of Banking, Securities and Business Investments Division, that the fees were taken out due to a “glitch” in his billing system.
Judge Meyer scheduled sentencing for May 23, 2017, at which time JOHNSON faces a maximum term of imprisonment of 20 years.
JOHNSON was arrested on February 17, 2016, and is currently released on a $250,000 bond.
This matter has been investigated by the U.S. Postal Inspection Service and the State of Connecticut Department of Banking. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
Former Church Treasurer Sentenced for Theft of Nearly $1.5 Million from Church, Wire Fraud and Tax FraudRead the Press Release
LAS VEGAS, Nev. – A former church treasurer was sentenced on Wednesday to four years in prison for stealing nearly $1.5 million from the church in a wire fraud scheme, and committing more than $500,000 in tax fraud, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Tara Sullivan of the IRS Las Vegas Field Office.
Gregory J. Olson, 52, formerly of Las Vegas, now living in Ryder, North Dakota, pleaded guilty on May 9, 2016, to one count of wire fraud and four counts of tax fraud. United States District Judge Andrew Gordon presided over the hearing. Olson was charged by an indictment on Sept. 5, 2012.
“The defendant stole from the church and its members to satisfy his greed and he now faces a sentence of imprisonment for his calculated and callous actions,” said U.S. Attorney Bogden. “The U.S. Attorney’s Office and IRS will work together and aggressively pursue financial fraud and tax fraud schemes that ultimately cause harm to innocent victims and the U.S. Treasury.”
“To steal from a church which entrusted its finances to you is not only sad, it’s deplorable,” said Special Agent in Charge Sullivan. “IRS Criminal Investigation and the U.S. Attorney’s Office will continue to pursue those who cause financial harm through embezzlement and fraud.”
According to court documents, Olson stole more than $1,466,292 from the Calvary Lutheran Church also called the Amazing Grace Lutheran Church of Las Vegas between 2006 and 2009. Olson admitted that he defrauded the church through a long-lasting and wide-ranging scheme. Olson made unauthorized cash and check withdrawals from the church’s bank accounts, false claims for reimbursement for church expenses, unauthorized receipt of mortgage loan proceeds, and solicited loans from individual church congregation members. Olson’s fraud scheme bankrupted the church.
Olson also knowingly failed to report as income the money he had stolen from the church in his 2006, 2007, 2008, and 2009 tax returns. The total tax loss was $541,770.
The case was investigated by the IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorneys Gregg Damm and Dan Cowhig.
###
Former Baggage Handler at LAX Arrested for Drug Trafficking Conspiracy After Allegedly Using Credentials to Pass Cocaine Through SecurityRead the Press Release
LOS ANGELES – A former baggage handler employed at Los Angeles International Airport was arrested Tuesday for smuggling cocaine by authorities investigating the use of employee credentials to breach airport security.
Alberto H. Botello, 23, of South Gate, was arrested Tuesday evening without incident by law enforcement officers from the Drug Enforcement Administration and the Los Angeles World Airports Police Department.
Botello is charged in a federal indictment with conspiracy to possess with intent to distribute cocaine and to distribute cocaine. His co-defendants, Adrian Ponce, 28, and Alberto Preciado Gutierrez, 27, both of South Gate, were also former baggage handlers and were arrested by law enforcement in the Spring of 2016. Botello made his initial court appearance Wednesday afternoon in United States District Court in Los Angeles.
According to court documents, Ponce, Preciado Gutierrez, and Botello facilitated the ability of third-party couriers to use commercial airlines to smuggle kilogram “samples” of cocaine from Los Angeles to drug customers on the East Coast. At the time of the conspiracy, Preciado Gutierrez was a supervisory baggage handler employed by Swissport International at LAX.
During the investigation, law enforcement seized a kilogram of cocaine in Preciado Gutierrez’s possession on December 16, 2015. According to court documents, the seizure was made in a restroom in Terminal 3 at LAX, where Preciado Gutierrez was delivering the cocaine to a courier who was holding a boarding pass to travel on a JetBlue flight to New York only an hour later. After this incident Preciado Gutierrez was terminated by Swissport.
The following day law enforcement interviewed Ponce, who had been taken into custody while waiting for Preciado Gutierrez outside Terminal 3. According to court documents, Ponce gave a written statement in which he admitted that, “on multiple occasions,” he and Preciado Gutierrez had used Preciado Gutierrez ’s supervisory status as an LAX employee to smuggle drugs to out-of-state drug customers by using third-party couriers who had booked flights from LAX to the East Coast and who were willing to take the drugs on a commercial flight in exchange for payment.
“Airport employees, who by virtue of their jobs have special access to secured areas, play an important role in the security of air travelers and our national security,” said United States Attorney Eileen M. Decker. “Instead of protecting our security, these defendants are charged with abusing their special access for personal profit and exposing unsuspecting air travelers to nationwide drug trafficking.”
In another statement given to law enforcement officials in 2016, Ponce allegedly admitted working with a large-scale drug supplier, and he explained how couriers with travel document would pass through normal airport security and would be provided with kilogram quantities of cocaine by Preciado Gutierrez, who had used his employee credentials to bypass security screening. According to court documents, Ponce told law enforcement that if East Coast customers liked the cocaine “sample,” then large shipments – more than 100 kilograms – would be delivered by driving the narcotics across the country. Ponce allegedly admitted actually driving trucks laden with drugs, also in exchange for payment.
“The national security threat posed by drug trafficking is multi-faceted, and we’re aggressively targeting these sorts of security breaches at our nation’s sea, land, and airports” said DEA Special Agent in Charge Steve Comer.
Ponce previously worked at LAX for a baggage handling service that was recently acquired by Swissport.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of the charged offenses, Ponce, Preciado Gutierrez, and Botello would face a mandatory minimum sentence of five years in federal prison, and a statutory maximum sentence of 40 years.
This investigation was conducted by the DEA Los Angeles International Airport Narcotics Task Force, an inter-agency task force based at LAX. In addition to the Drug Enforcement Administration, the Task Force is made up of representatives from the Federal Bureau of Investigation, the Los Angeles World Airports Police Department, the Los Angeles Police Department, and the Los Angeles County Sheriff’s Department. The Task Force also works closely with the United States Customs and Border Protection and the Transportation Security Administration.
The DEA Los Angeles International Airport Narcotics Task Force is providing a coordinated law enforcement effort to target airport/airline internal criminal enterprises that use the aviation system to transport large amounts of illicit drugs throughout the United States, and throughout the world. Swissport International cooperated in the investigation. The case is being prosecuted by Assistant United States Attorney Reema M. El-Amamy of the Organized Crime Drug Enforcement Task Force.
Former Bookkeeper for Oil Field Pipeline Supplier Sentenced to Serve 48 Months in Federal Prison for Embezzling over $7 MillionRead the Press Release
Oklahoma City, Oklahoma –RODNEY ALAN HAGER, 38, of Norman, Oklahoma, was sentenced today by United States District Judge David L. Russell to serve 48 months in federal prison for embezzlement over $7 million from his employer, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to court records, from 2007 through March of 2014 Hager worked as the bookkeeper of J&B Pipe Supply Co. ("J&B"), an Oklahoma City based oil field pipeline supply company. Included in his responsibilities was the making of wire transfers drawn on J&B’s corporate bank account to pay bills for the company and recording those payments in the company’s accounting software. From December of 2009 to November of 2013, during some of the same time frame that he served as J&B’s bookkeeper, Hager owned Mall Concepts of Oklahoma, Inc. ("Mall Concepts"), which operated mall kiosks in Oklahoma, Texas, Florida, Georgia, and elsewhere.
It was alleged that Hager embezzled from J&B and used three primary methods to defraud the company: (1) Hager wired funds from J&B’s bank account to accounts under his control, including Mall Concepts’ account, and disguised the transfers in J&B’s books as legitimate business expenses; (2) Hagar opened credit cards in the name of a J&B principal, used those cards for personal use, and paid the credit card bills by wiring funds from J&B’s account and disguising them in J&B’s books as legitimate business expenses; and (3) Hagar took blank checks signed by J&B principals given to him to purchase supplies or pay business expenses and used them for his personal benefit.
Hagar was charged by Information on June 3, 2016, with wire fraud and money laundering. He pled guilty on October 11, 2016, to committing wire fraud and money laundering. As part of his plea, he admitted that he would pay restitution to J&B in the amount of $7,138,804.58.
At today’s sentencing, Judge Russell sentenced Hager to serve 48 months in federal prison, followed by three years of supervised release. Hagar was also ordered to pay $7,138,804.58 in restitution to J&B.
This case is a result of an investigation conducted by the Internal Revenue Service and was prosecuted by Assistant U.S. Attorney Jessica L. Perry.
Florida Man Sentenced for Sex Trafficking and Interstate ProstitutionRead the Press Release
U.S. District Judge Carlos E. Mendoza of the Middle District of Florida sentenced Abdhullah Hamidullah, 43, to serve 482 months in prison and a lifetime of supervised release, the Justice Department announced today. Hamidullah pleaded guilty on June 17, 2016, to sex trafficking by force, fraud, and coercion in violation of 18 U.S.C. § 1591, and to enticing individuals to travel in interstate commerce for prostitution and transporting individuals in interstate commerce for prostitution in violation of 18 U.S.C. §§ 2421 and 2422.
According to admissions in connection with his guilty plea, Hamidullah lured a young woman identified as A.W. to travel to Florida on false pretenses, then forced her to engage in commercial sex acts with multiple customers a day, for several months, and provide him the proceeds. Hamidullah isolated her in his apartment, took away her money and phone, and installed an alarm without providing her the code. He also assaulted her, showed her his handgun, and branded her with a tattoo in the course of compelling her to prostitute for his profit. As part of his plea agreement, Hamidullah agreed to pay restitution to six women identified as victims of his sex trafficking scheme.
“This defendant preyed on vulnerable young victims and cruelly exploited them for his profit,” stated Acting Assistant Attorney General Tom Wheeler. “This sentence sends a clear message that the United States will not tolerate modern-day slavery and will work tirelessly to restore the rights and dignity of victims of human trafficking.”
“This defendant used physical abuse and intimidation to force young women to engage in prostitution,” stated U.S. Attorney A. Lee Bentley, III. “This prosecution ends the defendant’s vicious pattern of exploitation and, hopefully, brings a measure of relief and justice to his victims.”
“These women were victims of a brutal criminal organization, who through the use of violence were forced into interstate sex trafficking. U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) continues to investigate these crimes as one of our highest priorities through a coordinated global effort,” said Executive Associate Director Peter T. Edge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. “HSI will continue to investigate and seek prosecution of these criminals, while also ensuring the victims of this terrible crime are rescued and receive the care they need.”
“The Metropolitan Bureau of Investigation works closely with its federal and local partners to investigate and successfully prosecute sex traffickers,” said Director Ron Stucker of the Metropolitan Bureau of Investigation for the 9th Judicial Circuit of Florida. “The evidence in this case demonstrates the ruthlessness of sex traffickers, the urgency to rescue victims and the resolve of law enforcement to bring traffickers to justice.”
Documents filed and evidence presented in connection with the case indicated that Hamidullah began operating his sex trafficking enterprise in 2005, recruiting multiple women and causing them to engage in commercial sex acts for his profit.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Orlando-based Metropolitan Bureau of Investigations, and was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda of the Middle District of Florida, and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Florida Man Sentenced for Sex Trafficking and Interstate ProstitutionRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza sentenced Abdhullah Hamidullah, 43, to serve 40 years and 2 months in prison and a lifetime of supervised release. Hamidullah pleaded guilty on June 17, 2016, to sex trafficking by force, fraud, and coercion and to enticing individuals to travel in interstate commerce for prostitution and transporting individuals in interstate commerce for prostitution.
According to admissions in connection with his guilty plea, Hamidullah lured a young woman identified as A.W. to travel to Florida on false pretenses, then forced her to engage in commercial sex acts with multiple customers a day, for several months, and provide him the proceeds. Hamidullah isolated her in his apartment, took away her money and phone, and installed an alarm without providing her the code. He also assaulted her, showed her his handgun, and branded her with a tattoo in the course of compelling her to prostitute for his profit. As part of his plea agreement, Hamidullah agreed to pay restitution to six women identified as victims of his sex trafficking scheme.
“This defendant used physical abuse and intimidation to force young women to engage in prostitution,” stated U.S. Attorney A. Lee Bentley, III. “This prosecution ends the defendant’s vicious pattern of exploitation and, hopefully, brings a measure of relief and justice to his victims.”
“This defendant preyed on vulnerable young victims and cruelly exploited them for his profit,” stated Acting Assistant Attorney General Tom Wheeler. “This sentence sends a clear message that the United States will not tolerate modern-day slavery and will work tirelessly to restore the rights and dignity of victims of human trafficking.”
“These women were victims of a brutal criminal organization, who through the use of violence were forced into interstate sex trafficking. U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) continues to investigate these crimes as one of our highest priorities through a coordinated global effort,” said Executive Associate Director Peter T. Edge of the Homeland Security Investigations. “HSI will continue to investigate and seek prosecution of these criminals, while also ensuring the victims of this terrible crime are rescued and receive the care they need.”
“The Metropolitan Bureau of Investigation works closely with its federal and local partners to investigate and successfully prosecute sex traffickers,” said Director Ron Stucker of the Metropolitan Bureau of Investigation for the 9th Judicial Circuit of Florida. “The evidence in this case demonstrates the ruthlessness of sex traffickers, the urgency to rescue victims and the resolve of law enforcement to bring traffickers to justice.”
Documents filed and evidence presented in connection with the case indicated that Hamidullah began operating his sex trafficking enterprise in 2005, recruiting multiple women and causing them to engage in commercial sex acts for his profit.
This case was investigated by the Department of Homeland Security’s Homeland Security Investigations and the Orlando-based Metropolitan Bureau of Investigations, and was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Florida Man Pleads Guilty to Attempting to Gain Unauthorized Access and Cause Damage to the Computer Network of A Global Charitable OrganizationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that TIMOTHY SEDLAK pled guilty in Manhattan federal court to attempting to access without authorization the computer network of a global charitable organization based in New York, New York (the “Organization”), and as a result of such conduct, recklessly causing damage to computers of the Organization. He pled guilty before U.S. District Judge Ronnie Abrams.
Manhattan U.S. Attorney Preet Bharara said: “Although ultimately unsuccessful, Timothy Sedlak attempted hundreds of thousands of times to hack into a charitable organization, impairing the organization’s work. Today, Sedlak admitted to his crime and now awaits his sentence.”
According to the Superseding Information, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s guilty plea:
SEDLAK made hundreds of thousands of attempts to gain access without authorization to the computer network systems of the Organization, and in so doing, impaired the availability of the email accounts and web-based applications of more than 10 employees of the Organization.
From in or about June 2015, up to and including in or about July 2015, computers associated with two particular internet protocol addresses (the “IP Addresses”) made nearly 400,000 attempts to gain unauthorized access to the Organization’s computer network. As a result, numerous Organization employees experienced difficulty accessing their Organization email accounts, and were disrupted in their ability to conduct regular business functions. Both of the IP Addresses were subscribed to SEDLAK at SEDLAK’s residence in Florida (the “Sedlak Residence”).
In particular, between June 22, 2015, and July 8, 2015, from one of the IP Addresses, there were approximately 195,000 attempts to log into approximately 20 email accounts of the Organization. Between July 8, 2015, and July 10, 2015, from the other IP Address, there were an additional approximately 195,000 attempts to log into approximately six email accounts of the Organization. SEDLAK has never been employed by the Organization, and was not authorized to access any email accounts of the Organization.
On or about September 11, 2015, United States Secret Service (“USSS”) agents executed a search warrant at the Sedlak Residence, from which they seized, among other things, (i) approximately 30 computers connected to the same internal network, which enabled each computer to communicate with the others (the “Sedlak Computers”); (ii) notes pertaining to the Organization, an executive of the Organization (“Individual-1”), and an individual who has been publicly affiliated with the Organization (“Individual-2”), including email addresses, registrant information for certain website domain names, and certain IP address information associated with the Organization, Individual-1, and/or Individual-2; and (iii) lists of email addresses and email servers, many of which included the word “jihad.” The Sedlak Computers contained, among other things, a list of certain Organization employees’ email account usernames, and a “brute force” password-cracking tool. Such a tool is designed to launch a relentless barrage of potential passwords at an email account in an attempt to guess the account’s password.
On or about September 11, 2015, USSS agents interviewed SEDLAK, who claimed to be using the Sedlak Computers to conduct “research” into charitable organizations in the course of his work as a private investigator. In particular, SEDLAK claimed to be trying to determine if such organizations are unintentionally financing jihadist groups by sending, to charitable organizations in the Middle East, funds that are then seized by jihadist groups. When asked about notes pertaining to Individual-1 and Individual-2 found at the Sedlak Residence, SEDLAK claimed that he came across such information in his “research” into the financing of jihadist groups. SEDLAK claimed that he hoped to sell the information he found.
* * *
SEDLAK, 43, of Ocoee, Florida, faces a maximum of five years in prison and three years of supervised release. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. SEDLAK is scheduled to be sentenced by Judge Abrams on June 6, 2017, at 1:00 p.m.
Mr. Bharara praised the investigative work of the United States Secret Service.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Kristy J. Greenberg and Jennifer L. Beidel are in charge of the prosecution.
Felon in Possession of A Firearm Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Derek L. Winston, 39, of Irvington, was sentenced this morning in federal court to a year and a day for being a convicted felon in possession of a firearm. Winston pled guilty to the charge in November of 2016.
United States District Court Judge William H. Steele imposed a sentence of a year and a day. He also ordered that Winston will commence a three-year term of supervised release when he is discharged from incarceration. No fine was imposed.
The case was investigated by the Mobile County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Federal Jury Convicts St. Croix Woman of Participating in a Hobbs Act Robbery ConspiracyRead the Press Release
St. Thomas, USVI – On February 23, 2017, Aracelis N. Ayala a/k/a "Gordita" a/k/a "Fluff," 34, was found guilty by a federal jury of one count of Hobbs Act robbery, one count of conspiracy to commit Hobbs Act robbery, one count of brandishing a firearm during a crime of violence, and one count of robbery in the first degree, United States Attorney Ronald W. Sharpe announced.
Ayala faces up to 20 years on each of the Hobbs Act robbery and local robbery charges and a consecutive mandatory minimum sentence of seven years for the brandishing of a firearm charge. Judge Curtis V. Gomez remanded Ayala into the custody of the U.S. Marshals Service pending her sentencing on June 29, 2017.
According to the evidence presented at trial, Ayala was a member of a robbery crew that conspired to rob Signature Jewelers on August 19, 2015. Ayala conspired with other individuals to rob the store by providing cash and a handgun, renting a vehicle, and securing hotel rooms on St. Thomas. Upon entering the store, Ayala’s cohorts brandished a handgun to threaten the store employees and used duct tape to bind and gag them before fleeing with cash and merchandise.
Other members of the conspiracy, Turrel Thomas, 21, and Raheem Miller a/k/a "Caesar," 24, pleaded guilty to Hobbs Act robbery and related firearm offenses. All defendants were remanded to the custody of the U.S. Marshals Service pending sentencing on June 22, 2017.
This case is a result of an investigation by the Federal Bureau of Investigation and the Virgin Islands Police Department and was prosecuted by Assistant United States Attorneys Anna A. Vlasova and Sigrid Tejo-Sprotte.
Federal Indictments Unsealed: 13 Defendants Arrested on Gun and Drug Charges After Two-Year Undercover Collaborative Law Enforcement EffortRead the Press Release
Contact Person: Andy Moorman (864) 282-2140
Columbia, South Carolina-------United States Attorney Beth Drake, announced today that thirteen individuals have been arrested on federal charges for drug and firearms violations. A 35-count federal indictment was unsealed yesterday charging multiple defendants with federal violations. Thirteen defendants were arraigned on the indictment yesterday.
Beginning in 2014, the FBI Myrtle Beach Resident Agency and the DEA Florence Resident Office, working with several law enforcement partners, began an investigation of a large drug trafficking organization operating in the Myrtle Beach, Florence, and Charleston areas of South Carolina. The investigation targeted members of the Billie East Side Bloods, a set of the United Blood Nation, and others who formed an agreement to distribute heroin, fentanyl, cocaine, and marijuana in South Carolina, and to traffic in and possess firearms for the purpose of advancing the drug conspiracy. During the course of the investigation, agents used surveillance, source information, and other techniques to establish the agreement between coconspirators to sell drugs and to possess and sell firearms.
This operation was a combined law enforcement effort between the FBI, the DEA, the Horry County Sheriff’s Office, the Horry County Police Department, the Myrtle Beach Police Department, the North Myrtle Beach Police Department, the 15th Circuit’s Drug Enforcement Unit, the Coastal Carolina University Police Department, and the Georgetown Police Department. The charges filed against the defendants in this operation are being prosecuted by the U.S. Attorney’s Office in Florence.
U.S. Attorney Beth Drake commended the partnership between the local, state, and federal agencies and credited law enforcement. “This joint operation involving our federal, state, and local law enforcement partners signals our commitment to and emphasis on targeting significant criminal organizations operating in the Myrtle Beach, Charleston, and Florence areas of South Carolina.”The United States Attorney stated that all charges in this indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
#####Fairfield Man Pleads Guilty to Possessing Gun as a FelonRead the Press Release
SACRAMENTO, Calif. — Markell Darrell Davis, 30, of Fairfield, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on February 17, 2014, Davis was involved in a shooting in a residential neighborhood in Fairfield. Davis, a convicted felon who was prohibited by law from possessing a firearm, possessed and fired a .40-caliber Glock semi-automatic pistol, injuring a bystander.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fairfield Police Department. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
Davis is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on June 29, 2017. Davis faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Eighth Member of Taos County-Based Heroin Trafficking and Money Laundering Ring Enters Guilty PleaRead the Press Release
ALBUQUERQUE – Juanita Romero, 35, of Taos County, N.M., entered a guilty plea in federal court in Albuquerque, N.M., to a heroin trafficking charge. Juanita Romero is one of nine defendants charged with heroin trafficking and money laundering offenses as the result of a 15-month DEA-led multi-agency investigation into a heroin trafficking organization led by Ivan Romero, 40.
Juanita Romero is the eighth defendant to enter a guilty plea. Under the terms of her plea agreement, Juanita Romero faces up to 33 months in federal prison followed by a term of supervised release to be determined by the court.
Juanita Romero and seven co-defendants initially were charged with heroin trafficking and money laundering offenses in an eight-count indictment filed in Dec. 2015. The indictment was superseded in Feb. 2016 to add Elena Carabajal, 26, as a ninth defendant and five additional charges. The superseding indictment charged Juanita Romero, Ivan Romero, and seven other defendants with conspiring to distribute heroin from at least June 2012 through Dec. 2015. It also charged Ivan Romero, Ricco Romero, 29, Melissa Romero, 37, and Wilma Romero, 66, with conspiring to launder heroin trafficking proceeds. The superseding indictment also included substantive heroin trafficking charges against specific defendants as well as provisions seeking forfeiture to the United States of any and all assets and property derived, either directly or indirectly, from proceeds obtained from the criminal activities charged.
During today’s proceedings, Juanita Romero pled guilty to a felony information charging her with conspiracy to distribute heroin. In entering the guilty plea, Juanita Romero admitted that in late 2014, she began obtaining heroin from Ivan Romero on a daily basis to sell to others in and around Penasco, N.M. Juanita Romero admitted that Ivan Romero allowed her to keep a small amount of heroin daily for her personal use. Juanita Romero acknowledged distributing between 100 grams and 400 grams of heroin during the period in which she participated in the conspiracy.
Seven of Juanita Romero’s co-defendants previously have entered guilty pleas in the case:
-
On Dec. 5, 2016, Ivan Romero pled guilty to Counts 1 and 2 of the superseding indictment, charging him with participating in a heroin trafficking conspiracy and a money laundering conspiracy.
-
Ricco Romero also pled guilty on Dec. 5, 2016, to participating in the heroin trafficking conspiracy and the money laundering conspiracy, and to possessing firearms in furtherance of his drug trafficking activities.
-
Melissa Romero entered a guilty plea on Dec. 8, 2016, to Count 2 of the superseding indictment, charging her with participating in the money laundering conspiracy.
-
Tyler Baker, 45, of Taos County, N.M., entered a guilty plea in October 2016 to participating in the heroin trafficking conspiracy.
-
Elena Carabajal entered a guilty plea on Jan. 4, 2017, to possession of heroin with intent to distribute.
-
Wilma Romero entered a guilty plea on Jan. 5, 2017, to participating in the money laundering conspiracy and possessing heroin with intent to distribute.
-
Nicholas Baca entered a guilty plea on Feb. 7, 2017, to participating in a heroin trafficking conspiracy.
According to the admissions contained in the plea agreements of the defendants who have entered guilty pleas as well as other court filings, Ivan Romero was the leader of a heroin trafficking organization based in Taos County. Ivan Romero and his brother Ricco Romero were responsible for purchasing quantities of heroin from suppliers in Albuquerque and Los Lunas, N.M. Other members of the organization acted as couriers and regularly transported large quantities of heroin to Ivan Romero and Ricco Romero in Taos County. Upon receiving the bulk heroin, Ivan Romero and Ricco Romero prepared the heroin for distribution by mixing or “cutting” it with other substances, repackaged it in smaller portions, and distributed it both directly and through a network of other drug dealers. Juanita Romero was one such dealer who distributed heroin in and around Penasco.
In April 2015, law enforcement officers executed a state search warrant at Ivan Romero’s residence where they seized drug paraphernalia, 461 grams of marijuana, 30 grams of hashish, more than 300 grams of heroin and $64,920 in cash. Ivan Romero was arrested on state charges that day, and Ricco Romero subsequently assumed a greater managerial role in the heroin trafficking organization at that time.
Following Ivan Romero’s arrest on April 2, 2015, a state court set his bond at $90,000. Wilma Romero, Ricco Romero and Melissa Romero conspired to launder $90,000 in heroin proceeds to post that bond and secure Ivan Romero’s release from state custody. Ivan Romero soon violated the conditions of his release, was remanded back to state custody and a second bond was set at $150,000. In May 2015, Wilma Romero, Ricco Romero and Melissa Romero again conspired to launder an additional $150,000 in heroin proceeds to post that bond
On June 29, 2015, law enforcement agents executed a federal search warrant at Wilma Romero’s residence. In the course of that search, agents seized approximately 97.5 grams of heroin, a small amount of marijuana, drug paraphernalia, $73,288 and gold coins.
On Nov. 17, 2015 and Dec. 1, 2015, Ricco Romero distributed heroin to an individual working with law enforcement agents. Thereafter, on Dec. 18, 2015, law enforcement agents obtained and executed a federal search warrant at Ricco Romero and Carabajal’s residence and at another residence as well as at another residence where Ricco Romero and Carabajal maintained a safe. During those searches, agents seized 96.8 grams of heroin, $70,562 in cash, and two firearms.
If the plea agreements are accepted by the court: Ivan Romero will be sentenced to a prison term within the range of 120 to 144 months; Ricco Romero will be sentenced to a 120-month prison term; Carabajal will be sentenced to not more than 30 months in prison; Wilma Romero will be sentenced to not more than 24 months in prison; Melissa Romero will be sentenced to a term of probation; and Baca will be sentenced to not more than 33 months in prison. Pursuant to their plea agreements, the defendants have agreed to forfeit $431,870 in heroin proceeds and firearms to the United States.
The investigation leading to the indictment was conducted by the Albuquerque office of the DEA, the HIDTA Region III Drug Task Force, New Mexico State Police, Taos Police Department, Taos County Sheriff’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Timothy S. Vasquez is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
-
Eight from Northeast Ohio indicted for conspiracy to distribute crack and powder cocaine on east side of ClevelandRead the Press Release
Eight people from Northeast Ohio were indicted for their roles in a conspiracy to distribute powder and crack cocaine on the East Side of Cleveland, said U.S. Attorney Carole S. Rendon and FBI Special Agent in Charge Stephen D. Anthony.
Named in the 23-count indictment are: Calvin Gore, 34; Ronald Park, 49; Ronnie Townsend, Jr., 41; Million Wheeler, 43; Derrick Rivers, 36; Freddie Love, 45; Terry Gardner, 29, and Laverne Rucker, 56. All the defendants are from Cleveland except Love, who lives in Euclid.
Gore obtained multiple-ounce quantities of cocaine from Parks and Wheeler. Gore then distributed the cocaine to dealers in Cleveland, including Townsend, Rivers, Love, Gardner and Rucker, according to the indictment.
Gore used the residence at 14329 Benwood Avenue in Cleveland to storing and distributing the cocaine, according to the indictment.
Prosecutors are seeking to forfeit $13,308 in cash seized during the investigation, as well as two firearms, ammunition and a 2006 Lexus.
If convicted, the defendants’ sentences will be determined by the Court after review of the factors unique to this case, including the defendants’ prior criminal records, their roles in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Vasile C. Katsaros and Phillip J. Tripi following an investigation by the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Customs and Border Patrol, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation, Ohio Adult Parole Authority and the police departments of Euclid, Lakewood, the Regional Transit Authority, Westlake and Moreland Hills. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
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 the defendant guilty beyond a reasonable doubt.
District Man Sentenced to 22 Years in Prison for Armed Robberies of Commercial Establishments in Washington, D.C. and MarylandRead the Press Release
WASHINGTON – Curtis Fogg, 29, of Washington, D.C., was sentenced today to a total prison term of 22 years on charges stemming from a series of armed robberies that targeted commercial businesses in Washington, D.C. and Maryland during a three-week period in 2014.
The sentencing was announced by Channing D. Phillips, U.S. Attorney for the District of Columbia; Rod J. Rosenstein, U.S. Attorney for the District of Maryland; Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office; Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD), and Hank Stawinski, Chief of the Prince George’s County, Md. Police Department.
Fogg pled guilty in September 2016, in the U.S. District Court for the District of Columbia to nine counts of interference with interstate commerce by robbery, one count of using, carrying, and possessing a firearm in furtherance of a crime of violence, and one count of armed robbery. The plea, which was contingent upon the Court’s approval, called for a prison sentence of 20 to 22 ½ years. The Honorable Senior Judge Paul L. Friedman accepted the plea today and sentenced the defendant accordingly. Upon completion of his prison term, Fogg will be placed on five years of supervised release. He also must pay restitution to his victims.
According to the government’s evidence, Fogg brandished a firearm while committing 10 separate armed robberies of commercial businesses in August and September 2014. In many instances, store surveillance video captured Fogg and his distinct tattoos.
The robberies included:
-
Aug. 14, 2014, approximately 10:30 p.m.: Fogg stole $250 and phones from two women who were in the New Look Hair Salon, in the 4300 block of Sheriff Road NE.
-
Aug. 14, 2014, approximately 11:15 p.m.: Fogg stole about $100 from the register of a Papa John’s pizza restaurant in the 900 block of 11th Street SE.
-
Aug. 15, 2014, approximately 9:30 p.m.: Fogg stole about $600 from registers at the Patron Convenience Store in the 3200 block of Pennsylvania Avenue SE.
-
Aug. 27, 2014, approximately 2:45 p.m.: Fogg again stole about $100 from the register of the Papa John’s restaurant in the 900 block of 11th Street SE.
-
Aug. 28, 2014, approximately 3 p.m.: Fogg stole $513 from a Cricket cellular telephone store in the 5500 block of Georgia Avenue NW.
-
Aug. 30, 2014, approximately 5:10 p.m.: Fogg stole $284 from the cash register of a Subway sandwich shop in the 2800 block of Alabama Avenue SE.
-
Aug. 31, 2014, approximately 6:30 p.m.: Fogg stole $60 from the register of Mama’s Pizza Kitchen, in the 2000 block of Martin Luther King Avenue SE, while also robbing the store’s owner of $100 in cash.
-
Sept. 1, 2014, approximately 7:25 p.m.: Fogg stole $469 from the register of a Metro PCS cellular telephone store in the 4100 block of Wheeler Road SE.
-
Sept. 2, 2014, approximately 7:10 p.m.: Fogg stole $500 from the Boost Mobile cellular telephone store in the 6200 block of Oxon Hill Road in Oxon Hill, Md.
-
September 3, 2014, approximately 2:10 p.m.: Fogg entered a Metro PCS store in the 5200 block of Indian Head Highway in Oxon Hill, Md. and took about 15 new cellular telephones that were for sale on the counter, $539.75 in cash, and personal items from the individuals inside the store.
Fogg was arrested on Sept. 5, 2014 and has been in custody ever since. At the time of his arrest, he was on supervised release following a 2009 conviction in the Superior Court of the District of Columbia for attempted possession with the intent to distribute cocaine. Fogg also had prior felony convictions for threats and possession with the intent to distribute heroin. He also now faces charges in two separate Superior Court of the District of Columbia matters relating to his conduct while incarcerated, which includes the stabbing of a fellow inmate and the assault of a prison official by hitting the official with his feces.
This case was investigated by the FBI’s Washington Field Office, the Metropolitan Police Department, and the Prince George’s County Police Department. Those working on the case from the U.S. Attorney’s Office for the District of Columbia include Legal Assistants Latoya Wade, Brendan Coyne, and Diane Brashears, Paralegal Specialist Candace Battle, and Assistant U.S. Attorney Christopher Macchiaroli, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the matter. Those working on the case from the U.S. Attorney’s Office for the District of Maryland include Assistant U.S. Attorney Thomas Sullivan, who prosecuted the Maryland cases prior to them being transferred to Washington, D.C. for resolution before Judge Friedman.
-
Cuban National Sentenced for Conspiracy to Commit Access Device Fraud, Aggravated Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LUIS RIVERA GARCIA, age 27, a Cuban national residing in Florida, was sentenced today after previously pleading guilty to one count of conspiracy to commit access device fraud and aggravated identity theft.
U.S. District Judge Nannette Jolivette Brown sentenced RIVERA GARCIA to 57 months imprisonment to be followed by 3 years of supervised release, and $7,873.90 in restitution.
RIVERA GARCIA pled guilty to conspiring with co-defendants to possess fifteen or more unauthorized and counterfeit access devices, as well as producing, possessing, and trafficking device-making equipment. According to court records, the defendants traveled from Florida in late July 2015, and agreed to place card skimming devices on gas pumps in the New Orleans area. They also admitted to, among other things, possessing a card encoding machine, a card embossing machine, and a laptop computer containing stolen credit card information. In April 2016, while on bond in this case, RIVERA GARCIA and co-defendants, JULIET ESTRADA PEREZ and JESUS ENRIQUE GONZALES TORRES, were arrested in the Southern District of Florida on new state charges of committing credit card fraud, after they were found in the Florida Strait between Florida and Cuba by the United States Coast Guard, and have been detained since then as flight risks.
RIVERA GARCIA is the third defendant to be sentenced in this case. In January 2017, PEREZ and TORRES were sentenced to 36 months and 30 months imprisonment respectively. As part of sentencing, U.S. District Judge Nannette Jolivette Brown found that RIVERA GARCIA was an organizer and leader of the conspiracy. She further ordered the RIVERA GARCIA pay restitution of $7,873.90 jointly and severally with his codefendants and a $100 special assessment.
U.S. Attorney Polite praised the work of the Jefferson Parish Sheriff’s Office, the United States Secret Service, and Homeland Security Investigations in investigating this matter. Assistant U.S. Attorney Hayden Brockett was in charge of the prosecution.
Company to Pay $9.5 Million for False Reporting of Safety Inspections and Clean Water Act Violations that Led to Explosion in Gulf of MexicoRead the Press Release
WASHINGTON – Wood Group PSN Inc., a Nevada corporation headquartered in Houston, Texas, was ordered to pay $9.5 million today in two separate cases involving their conduct in the Gulf of Mexico. Specifically, Wood Group PSN was ordered to pay $7 million for falsely reporting over several years that personnel had performed safety inspections on offshore facilities in the Gulf of Mexico in the Western District of Louisiana, and $1.8 million for negligently discharging oil into the Gulf of Mexico in violation of the Clean Water Act after an explosion on an offshore facility in the Eastern District of Louisiana, announced Acting Assistant Attorney General Jeff Wood of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney for the Western District of Louisiana Stephanie A. Finley, and U.S. Attorney for the Eastern District of Louisiana Kenneth A. Polite. Wood Group PSN was also ordered to pay $700,000 in community service to projects in the areas where the criminal conduct took place.
“The events of November 2012 at West Delta 32 were tragic, and since then federal prosecutors have worked diligently to investigate and understand the full scope of criminal conduct,” said Acting Assistant Attorney General Wood. “Today’s plea agreement demonstrates the Department of Justice’s commitment to the integrity of federal safety programs and accountability for those who falsify federal safety inspection reports. In addition, the plea agreement ensures that Wood Group is held responsible for its wrongful pollution of the Gulf of Mexico, and it will bring community service projects to benefit the Gulf of Mexico and Gulf Coast communities.”
“Ensuring that public resources are developed in a professional and responsible manner is among the highest priorities for this department, and the OIG is committed to work with its Federal partners to hold violators accountable when they choose to ignore their professional and legal responsibilities and place the public and environment at risk,” said Ronald Gonzales, Special Agent in Charge of the Department of the Interior OIG’s Energy Investigations Unit stated, “Developing domestic sources of energy is of vital importance to our nation. This development must be done responsibly and safely to protect public health and the environment,” said Christopher R. Brooks, Special Agent in Charge of EPA’s criminal enforcement program in Louisiana. “This case is an example of federal law enforcement partners holding individuals accountable for their illegal conduct, and ensuring that the hard work invested in restoring the Gulf of Mexico is not jeopardized.”
According to the factual basis of the company’s plea agreement in the false reporting case, from April of 2011 to July of 2014, employees at Wood Group PSN’s Cameron, La., office failed to inspect and maintain facilities they had contracts with on the Outer Continental Shelf’s Creole Loop, and also falsely indicated that the facilities had been properly inspected and maintained according to federal safety and environmental regulations. The company operators at the Cameron office had trouble keeping up with inspections and maintenance on facilities they serviced. The office did not have sufficient labor and transportation, and the work was not always completed on time. The employees, from operators to clerks, then falsified reports to the Bureau of Safety and Environmental Enforcement. The company admitted to 87 violations on offshore platforms.
Wood Group PSN’s Clean Water Act conviction stems from an explosion on Black Elk Energy Offshore Operations, L.L.C.’s (BEE) offshore oil production facility located at area West Delta 32 in the Gulf of Mexico. According to court documents, BEE had contracted with Wood Group PSN for individuals to man and conduct production operations at the West Delta 32 facility. Beginning on November 3, 2012 and continuing through November 16, 2012, construction was being conducted at the West Delta 32 facility. Wood Group PSN supported the construction by issuing hot work permits for welding.
However, starting on or about Nov. 10, 2012, the Wood Group PSN Person-in-Charge, Christopher Srubar, stopped issuing hot work permits and conducting all-hands safety meetings, and instead delegated the hot work permitting to a less experienced operator. On Nov. 16, 2012, Grand Isle Shipyards, Inc. (GIS) construction superintendent, Curtis Dantin, assigned workers to perform welding in three different areas of the “E” platform, including sump line piping that had previously contained hydrocarbons but had not been made safe for hot work, or identified in a permit as an area safe for hot work. The sump line piping led to an oil storage tank that contained hydrocarbons contaminated with water, also known as the wet oil tank.
After the construction workers had cut and grinded the sump line piping the morning of Nov. 16, they attempted to weld on the cut piping with an arc welder. At that time, hydrocarbon vapors that had escaped from the wet oil tank ignited. The ignition caused an explosion setting off a series of additional explosions in the three oil tanks on the “E” platform. One of the dry oil tanks and the wet oil tank were blown into the Gulf of Mexico. The other dry oil tank was blown off its base and destroyed the platform crane. Oil spilled into the Gulf of Mexico causing a sheen on the water. Oil rained down to the lower deck of the platform where workers had been performing other construction activity. The fire and explosions that occurred resulted in the deaths of construction workers, Avelino Tajonera, Elroy Corporal, and Jerome Malagapo. Other workers were seriously burned and physically injured.
Wood Group PSN admitted that its employees were negligent in the way they authorized hot work on West Delta 32, and that a lack of communication between personnel on the platform, including Wood Group PSN’s Person-in-Charge, Christopher Srubar, contributed to the events that caused oil to be discharged into the Gulf of Mexico in a harmful quantity.
Co-defendants, BEE and GIS face manslaughter charges, and Curtis Dantin, Christopher Srubar, and Don Moss face criminal violations of the Clean Water Act in the Eastern District of Louisiana before the Honorable Judge Jane Triche Milazzo, in case no. 15-cr-197 “H.” BEE also faces eight felony counts of regulatory violations under the Outer Continental Shelf Lands Act.
Charges against Don Moss, Christopher Srubar, Curtis Dantin, and GIS under the Outer Continental Shelf Lands Act that were dismissed by the district court are pending an interlocutory appeal by the government to the U.S. Fifth Circuit Court of Appeals, case no. 16-30561.
The U.S. Department of the Interior-Office of Inspector General and the U.S. Environmental Protection Agency-CID conducted the investigations. Assistant U.S. Attorneys Myers P. Namie and David D. Joseph prosecuted the case for the Western District of Louisiana, and Assistant U.S. Attorneys Emily Greenfield and Nicholas Moses, and Department of Justice Senior Trial Attorney Ken Nelson prosecuted the case for the Eastern District of Louisiana.
Company to Pay $9.5 Million for False Reporting of Safety Inspections and Clean Water Act Violations That Led to Explosion in Gulf of MexicoRead the Press Release
Wood Group PSN Inc., a Nevada corporation headquartered in Houston, Texas, was ordered to pay $9.5 million today in two separate cases involving their conduct in the Gulf of Mexico. Specifically, Wood Group PSN was ordered to pay $7 million for falsely reporting over several years that personnel had performed safety inspections on offshore facilities in the Gulf of Mexico in the Western District of Louisiana, and $1.8 million for negligently discharging oil into the Gulf of Mexico in violation of the Clean Water Act after an explosion on an offshore facility in the Eastern District of Louisiana, announced Acting Assistant Attorney General Jeff Wood of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney for the Western District of Louisiana Stephanie A. Finley, and U.S. Attorney for the Eastern District of Louisiana Kenneth A. Polite. Wood Group PSN was also ordered to pay $700,000 in community service to projects in the areas where the criminal conduct took place.
“The events of November 2012 at West Delta 32 were tragic, and since then federal prosecutors have worked diligently to investigate and understand the full scope of criminal conduct,” said Acting Assistant Attorney General Wood. “Today’s plea agreement demonstrates the Department of Justice’s commitment to the integrity of federal safety programs and accountability for those who falsify federal safety inspection reports. In addition, the plea agreement ensures that Wood Group is held responsible for its wrongful pollution of the Gulf of Mexico, and it will bring community service projects to benefit the Gulf of Mexico and Gulf Coast communities.”
“Ensuring that public resources are developed in a professional and responsible manner is among the highest priorities for this department, and the OIG is committed to work with its federal partners to hold violators accountable when they choose to ignore their professional and legal responsibilities and place the public and environment at risk,” said Ronald Gonzales, Special Agent in Charge of the Department of the Interior OIG’s Energy Investigations Unit.
“Developing domestic sources of energy is of vital importance to our nation. This development must be done responsibly and safely to protect public health and the environment,” said Christopher R. Brooks, Special Agent in Charge of EPA’s criminal enforcement program in Louisiana. “This case is an example of federal law enforcement partners holding individuals accountable for their illegal conduct, and ensuring that the hard work invested in restoring the Gulf of Mexico is not jeopardized.”
According to the factual basis of the company’s plea agreement in the false reporting case, from April of 2011 to July of 2014, employees at Wood Group PSN’s Cameron, La., office failed to inspect and maintain facilities they had contracts with on the Outer Continental Shelf’s Creole Loop, and also falsely indicated that the facilities had been properly inspected and maintained according to federal safety and environmental regulations. The company operators at the Cameron office had trouble keeping up with inspections and maintenance on facilities they serviced. The office did not have sufficient labor and transportation, and the work was not always completed on time. The employees, from operators to clerks, then falsified reports to the Bureau of Safety and Environmental Enforcement. The company admitted to 87 violations on offshore platforms.
Wood Group PSN’s Clean Water Act conviction stems from an explosion on Black Elk Energy Offshore Operations, L.L.C.’s (BEE) offshore oil production facility located at area West Delta 32 in the Gulf of Mexico. According to court documents, BEE had contracted with Wood Group PSN for individuals to man and conduct production operations at the West Delta 32 facility. Beginning on November 3, 2012 and continuing through November 16, 2012, construction was being conducted at the West Delta 32 facility. Wood Group PSN supported the construction by issuing hot work permits for welding.
However, starting on or about Nov. 10, 2012, the Wood Group PSN Person-in-Charge, Christopher Srubar, stopped issuing hot work permits and conducting all-hands safety meetings, and instead delegated the hot work permitting to a less experienced operator. On Nov. 16, 2012, Grand Isle Shipyards, Inc. (GIS) construction superintendent, Curtis Dantin, assigned workers to perform welding in three different areas of the “E” platform, including sump line piping that had previously contained hydrocarbons but had not been made safe for hot work, or identified in a permit as an area safe for hot work. The sump line piping led to an oil storage tank that contained hydrocarbons contaminated with water, also known as the wet oil tank.
After the construction workers had cut and grinded the sump line piping the morning of Nov. 16, they attempted to weld on the cut piping with an arc welder. At that time, hydrocarbon vapors that had escaped from the wet oil tank ignited. The ignition caused an explosion setting off a series of additional explosions in the three oil tanks on the “E” platform. One of the dry oil tanks and the wet oil tank were blown into the Gulf of Mexico. The other dry oil tank was blown off its base and destroyed the platform crane. Oil spilled into the Gulf of Mexico causing a sheen on the water. Oil rained down to the lower deck of the platform where workers had been performing other construction activity. The fire and explosions that occurred resulted in the deaths of construction workers, Avelino Tajonera, Elroy Corporal, and Jerome Malagapo. Other workers were seriously burned and physically injured.
Wood Group PSN admitted that its employees were negligent in the way they authorized hot work on West Delta 32, and that a lack of communication between personnel on the platform, including Wood Group PSN’s Person-in-Charge, Christopher Srubar, contributed to the events that caused oil to be discharged into the Gulf of Mexico in a harmful quantity.
Co-defendants, BEE and GIS face manslaughter charges, and Curtis Dantin, Christopher Srubar, and Don Moss face criminal violations of the Clean Water Act in the Eastern District of Louisiana before the Honorable Judge Jane Triche Milazzo, in case no. 15-cr-197 “H.” BEE also faces eight felony counts of regulatory violations under the Outer Continental Shelf Lands Act.
Charges against Don Moss, Christopher Srubar, Curtis Dantin, and GIS under the Outer Continental Shelf Lands Act that were dismissed by the district court are pending an interlocutory appeal by the government to the U.S. Fifth Circuit Court of Appeals, case no. 16-30561.
The U.S. Department of the Interior-Office of Inspector General and the U.S. Environmental Protection Agency-CID conducted the investigations. Assistant U.S. Attorneys Myers P. Namie and David D. Joseph prosecuted the case for the Western District of Louisiana, and Assistant U.S. Attorneys Emily Greenfield and Nicholas Moses, and Department of Justice Senior Trial Attorney Ken Nelson prosecuted the case for the Eastern District of Louisiana.
Columbia Man Indicted for Attempting to Aid TerroristsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was indicted by a federal grand jury today for his role in making preparations to launch a terrorist attack with persons he believed were members of ISIS, but who were actually undercover law enforcement agents.
Robert Lorenzo Hester, Jr., 25, of Columbia, 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 signed on Sunday, Feb. 19, 2017, and contains an additional charge of attempting to provide material support or resources to terrorists.
Hester, who was the sole subject of this undercover investigation, remains in federal custody pending a detention hearing on Friday, Feb. 24, 2017. Hester is a U.S. citizen who was born in Missouri. He was enlisted in the U.S. Army for less than a year, receiving a general discharge from service in mid-2013.
Count One of the federal indictment alleges that, from October 2016 to Feb. 17, 2017, Hester attempted to provide material support or resources to be used in preparation for, and in carrying out, the use of weapons of mass destruction.
Count Two of the federal indictment alleges that, from October 2016 to Feb. 17, 2017, Hester attempted to provide material support or resources to a foreign terrorist organization, knowing that ISIS (the Islamic State of Iraq and al-Sham) was a designated foreign terrorist organization that engages in terrorist activity.
According to an affidavit filed in support of the original criminal complaint, FBI agents undertook a review of Hester’s publicly available posts on multiple social media accounts in September 2016. FBI employees using undercover identities communicated with Hester via social media, texting and personal meetings on several occasions. When Hester arrived for a meeting with an undercover FBI employee on Friday, Feb. 17, 2017, he was arrested.
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. Attorneys Brian P. Casey and David Raskin and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section. It was investigated by the FBI.
Columbia Man Charged with Child Sexual ExploitationRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was charged in federal court today with child sexual exploitation.
Sergio Antonio Dominguez-Gonzalez, 23, of Columbia, was charged with the sexual exploitation of a minor in a federal criminal complaint filed in the U.S. District Court in Jefferson City, Mo. Dominguez-Gonzalez, who remains in federal custody, will have an initial court appearance on Friday, Feb. 24, 2017.
According to an affidavit filed in support of the federal criminal complaint, an undercover law enforcement officer posted numerous on-line bulletin messages on social media forums, which were intended to attract individuals with a sexual interest in children. On Tuesday, Feb. 21, 2017, the undercover officer received an e-mail message from Dominguez-Gonzalez.
During the course of their e-mail conversation and subsequent instant messenger chat, the affidavit says, Dominguez-Gonzalez sent the undercover officer images and videos of a prepubescent toddler, including pornographic images and videos. Dominguez-Gonzalez allegedly asked the undercover officer to send him nude pictures of his purported 9-year-old daughter.
Law enforcement officers executed a search warrant at Dominguez-Gonzalez’s residence on Wednesday, Feb. 22, 2017. Among the items seized were five cell phones, a desktop computer and a digital camera with an SD card.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge 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 Ashley Turner. It was investigated by the FBI and the Boone County, Mo., Sheriff’s Department.
Project Safe Childhood
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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."