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17 February 2017
Baltimore Man Exiled to 7 Years in Prison for a Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Ronald Francis Wosk, Jr., age 30, of Baltimore, Maryland, today to seven years in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Anne Arundel County Police Chief Tim Altomare.
According to his plea agreement, from at least March 2014 through July 2014, Wosk and other members of the conspiracy obtained heroin and crack cocaine from Alex Valerio and other co-conspirators in Maryland and re-distributed them to others. During the conspiracy, investigators intercepted phone calls between Wosk and Valerio discussing purchases of heroin, and saw Wosk and Valerio meet multiple times.
Ten other co-conspirators, including Alex Raymond Valerio, age 36, of Glen Burnie, Maryland, pleaded guilty to their roles in the conspiracy and were sentenced to between time served and 92 months in prison.
United States Attorney Rod J. Rosenstein commended the DEA and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Atlanta Store Owner Found Guilty of Operating Black Market for Fraudulent and Stolen PhonesRead the Press Release
ATLANTA - Tony Archie has been found guilty after a seven-day trial of wire fraud conspiracy, wire fraud, mail fraud and money laundering. Archie, while the manager of ACE Wholesale and later the owner of Westside Wireless, bought tens of thousands of brand new cell phones from sellers who obtained them through fraudulent means.
“Archie created and maintained a black market for illegal cell phone sales in Atlanta,” said U.S. Attorney John Horn. “Despite previous warnings, he pursued the easy money that came from trafficking in fraudulent cell phones. The jury, however, saw this activity for what it was, and returned a guilty verdict.”
“The Office of the Attorney General applauds the jury’s guilty verdict against Tony Archie,” said Attorney General Chris Carr. “I am especially proud of the work of our Consumer Protection Unit’s Criminal Investigation Division for initiating and investigating this case. Our former Criminal Investigator Richard Schneider and Criminal Analyst Tara Tripp worked diligently to develop crucial evidence and provide vital support throughout. I congratulate our partners in the U.S. Attorney’s Office of the Northern District of Georgia for a successful prosecution, and we look forward to continuing to work with them in eliminating truly bad actors from conducting illegitimate business in Georgia.”
“This case illustrates not just the significance of an aggressive and tenacious approach to combat these types of fraud, but also illustrates the importance of partnerships with federal and state law enforcement agencies,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “We will continue to work closely with prosecutors to ensure offenders like Archie are put behind bars.”
“Pretending to operate legitimate businesses will not thwart law enforcement’s efforts in determining the true nature of the businesses and the crimes they promote,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “The verdict in the trial of Tony Archie clearly illustrates that individuals who engage in these types of illegal activities will not go undetected and will be held accountable for their actions.”
According to U.S. Attorney Horn, the charges and other information presented in court: Archie became the manager of ACE Wholesale in 2011, shortly after it opened in the Atlanta area. The store’s main function was to buy brand new cell phones that would later be shipped and sold overseas. ACE’s sellers obtained the new cell phones at below-market cost by entering or causing others to enter into cell phone carrier contracts they had no intention of honoring; hijacking or creating corporate identities to establish fraudulent business accounts with cell phone carriers; and by filing fraudulent cell phone insurance claims to get brand new replacement phones.
In less than two years, ACE paid out over $63 million, with over $20 million going to just 52 sellers who repeatedly brought in new phones to the store. In August 2012, ACE shut down after law enforcement executed a search warrant at the store. Within two months, Archie opened Westside Wireless where he continued to buy fraudulently obtained, brand new cell phones. At Westside Wireless, Archie paid out over $8 million more for new cell phones.
Tony Archie, 52, of Atlanta, Georgia, was charged with wire fraud conspiracy, six counts of wire fraud, two counts of mail fraud, and five counts of money laundering. A jury found Archie guilty on all counts.
Sentencing is scheduled for May 16, 2017, at 2:00 p.m. before United States District Judge Mark H. Cohen.
This case is being investigated by the U.S. Secret Service, the Internal Revenue Service Criminal Investigation, and the Georgia Attorney General’s Office - Consumer Protection Unit.
Assistant United States Attorney Samir Kaushal and Special Assistant United States Attorney Diane C. Schulman are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Jesse James Davis, 40, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge. Under the terms of his plea agreement, Davis will be sentenced within the range of ten to 15 years in prison followed by a term of supervised release to be determined by the court.
Davis and his co-defendant, Joshua Bright, 32, were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Davis and Bright were indicted on June 30, 2016. The indictment charged both men with conspiracy and distributing methamphetamine on June 6, 2016. It also charged Bright alone with distributing methamphetamine on June 14, 2016. According to the indictment, the offenses took place in Bernalillo County, N.M. The indictment included forfeiture provisions requiring Davis and Bright to forfeit $4,600 to the United States.
During today’s proceedings, Davis pled guilty to Count 2 of the indictment charging him with distributing methamphetamine. In entering the guilty plea, Davis admitted that on June 6, 2016, he sold approximately 115 grams of methamphetamine to an undercover law enforcement agent. Davis remains in custody pending a sentencing hearing which has yet to be scheduled.
To date, 28 of the 104 defendants have entered guilty pleas and two have been sentenced. The remaining defendants including Bright, have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque office of ATF. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case.
16 February 2017
York Man Sentenced to 141 Months’ Imprisonment for Armed Bank RobberyRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Derek Bowman, age 33, of York, Pennsylvania, was sentenced on February 15, 2017, to 141 months’ imprisonment by United States District Court Judge William J. Caldwell for the armed robbery of PNC bank in York, Pennsylvania, on January 9, 2016.
According to United States Attorney Bruce D. Brandler, Bowman entered the PNC bank branch located on East Market Street, in York, with a sawed-off shotgun. He pointed the shotgun at a bank employee and demanded money from her drawer. He stole approximately $3,000 from the bank before fleeing the scene. Bowman was arrested by Pennsylvania State Police the next day and was found to be in possession of money and heroin. The shotgun was later recovered by Springettsbury Township Police.
This matter was investigated by the Springettsbury Township Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Chelsea Schinnour prosecuted 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.
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Woman Who Committed Wire Fraud Pleads Guilty in Federal CourtRead the Press Release
Abingdon, VIRGINIA – A Virginia woman, who conspired with others to commit wire fraud, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon, to a federal Information, Acting United States Attorney Rick A. Mountcastle announced.
Deborah Diana Lawson, 60, of Raven, Va., waived her right to be indicted and pled guilty today in District Court to a one count Information charging her with conspiracy to commit wire fraud. United States District Judge James P. Jones scheduled sentencing for May 11, 2017 at 2:30 p.m.
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Randy Ramseyer, in or around March 2015 Lawson's co-conspirator caused a fraudulent tax return refund to be sent via wire to Lawson’s bank account in Russell County, Virginia. Lawson caused proceeds of the tax return refund to be sent via wire transfer from the Western District of Virginia to an account in Buffalo, New York.
The investigation of the case was conducted by the United States Secret Service and the Russell County Sheriff’s Office. Assistant United States Attorney Assistant United Attorney Randy Ramseyer prosecuted the case for the United States.
West Richland Man Sentenced to 78 Months Imprisonment for Travel for Sex with MinorRead the Press Release
Spokane–Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Dale H. Weber, age 53, of West Richland, Washington, was sentenced today for one count of Travel in Interstate Commerce for the Purpose of Engaging in a Sexual Act With a Minor. United States District Court Judge Salvador Mendoza, Jr. sentenced Dale H. Weber to a 78-month term of imprisonment, to be followed by 10 years of court supervision after he is released from federal prison. Weber will also be required to register as a sex offender.
According to information disclosed during the court proceedings, in the fall of 2014, Weber posted a personals ad, “seeking naughty young girl.” An undercover task force officer with Homeland Security Investigations working with Southeast Regional Internet Crimes Against Children, saw the ad and responded, posing as a 13-year-old girl. During a series of online communications, Weber graphically described different sex acts that he would like to perform on the child. Eventually, Weber discussed meeting the child, at a specific location, for sexual contact.
Weber drove to the meet location, and was observed as he drove through the location at a slow rate of speed, in a vehicle registered to himself, and scanning the area. Weber later had a conversation with the purported 13-year-old wherein the child stated her mother had picked her up when she attempted to meet him.
Weber discussed meeting the child in Oregon, approximately a week later for sex. When the date came, again, Defendant arrived at the meet location. When he did not find the child he sent a series of angry text messages about wasting time and gas. The child explained she had trouble keeping in contact with Weber as her parents do not put many minutes on her phone. The two discussed Weber buying her a new phone. A third meeting was then set. When Weber arrived at the meet location, he was arrested. A new prepaid phone is found in his car. The receipt in his pocket indicated it was a new purchase.
On April 11, 2016, Weber pled guilty to Travel in Interstate Commerce for the Purpose of Engaging in a Sexual Act with a Minor. At sentencing, today Weber stated, “I fully take responsibility for my actions.” Judge Mendoza told Weber “this is an extremely serious offense,” and went on to tell Weber his behavior, specifically, was “extremely concerning,” and made more so by his repeated attempts to contact a person he believed to be a thirteen-year-old child. Judge Mendoza then announced sentence to 78 months imprisonment and 10 years supervised release.
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources." This investigation was conducted by the Homeland Security Investigations and the Southeast Regional ICAC. The case was prosecuted by Alison L. Gregoire, an Assistant United States Attorney for the Eastern District of Washington.
Waynesboro Man Pleads Guilty to Having a Stolen Gun on Blue Ridge ParkwayRead the Press Release
Charlottesville, VIRGINIA – A Waynesboro man pled guilty yesterday in the United States District Court for the Western District of Virginia in Charlottesville to a federal gun charge, Acting United States Attorney Rick A. Mountcastle announced.
Miguel Angel Fernandez, 19, of Waynesboro, Va., pled guilty yesterday to one count of knowingly possessing a stolen firearm. A sentencing date has been set for May 8, 2017. At sentencing, Fernandez faces up to 10 years in prison and/or a fine of up to $250,000.
During the hearing, the United States stated that its evidence included the following: on Sunday, September 11, 2016, a United States Park Ranger approached Fernandez and several others near a vehicle that was parked along the Blue Ridge Parkway near milepost 41 in Rockbridge County to inquire about litter outside of the vehicle. As the Ranger approached the vehicle to see if the occupants needed assistance, he told the occupants he needed to speak to them about the trash on the ground. It was at this point the Ranger smelled the odor of alcohol emanating from the vehicle.
While talking to passenger Fernandez, who appeared to be intoxicated, the Ranger noticed a bulge in Fernandez’s waistband and recovered a Springfield Armory XD .40 caliber semiautomatic pistol. The gun had been reported stolen within the prior two days from the glovebox of a car. In a post-Miranda statement, Fernandez admitted that he knew the gun was stolen but he did not know who stole it and was just holding the gun for a friend.
The investigation of the case was conducted by the National Park Service. Assistant United States Attorney Nancy S. Healey prosecuted the case for the United States.
Waterbury Man Sentenced to More Than 4 Years in Federal Prison for Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RONALD WEAVER, 38, of Waterbury, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 52 months of imprisonment, followed by three years of supervised release, for distributing heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on March 11, 2016, Newtown Police and emergency medical personnel responded to a residence in Newtown on the report of a 30-year-old female who was in cardiac arrest. The victim was transported to the hospital where she subsequently died. Medical records and witness interviews revealed that the victim had a history of substance abuse, and the family of the victim turned over to law enforcement several wax folds of heroin, several empty folds and other drug paraphernalia.
The investigation revealed that the victim purchased heroin and other drugs from at least two sources in the days leading up to her death. One of the sources worked as a “runner” who conducted drug transactions for WEAVER.
Between June and August 2016, law enforcement made four controlled purchases of heroin from WEAVER.
WEAVER was arrested on August 9, 2016. On October 5, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
As part of his sentence, WEAVER was ordered to forfeit a 2006 Infiniti M35, a 2007 Lexus ES350, and $1,956 in cash that was seized from him at the time of his arrest.
This matter was investigated by the DEA’s New Haven Tactical Diversion Squad and the Newtown, Waterbury and Torrington Police Departments. The Task Force includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
The case was prosecuted by Assistant U.S. Attorney Avi M. Perry.
Washington Businessman Pleads Guilty to Filing Fraudulent Federal Tax ReturnRead the Press Release
A Chelan Falls, Washington man pleaded guilty yesterday in the U.S. District Court in Yakima, Washington to filing a fraudulent 2011 federal tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, from 2009 through 2012, Jose L. Echeverria, 46, owned and operated a produce sales business. Echeverria filed fraudulent individual income tax returns for each of these years and underreported his income by a total of approximately $564,292. Echeverria admitted that he caused a tax loss of approximately $183,191.
Sentencing is scheduled for May 11. Echeverria faces a statutory maximum sentence of three years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Trial Attorneys Lisa L. Bellamy and Gregory Bernstein of the Tax Division who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Eastern District of Washington for its assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
United States files consent decree of permanent injunction against a Louisiana drug and dietary supplement manufacturer to stop distribution of misbranded and unapproved new drugs and misbranded and adulterated dietary supplementsRead the Press Release
WASHINGTON – The Department of Justice filed a proposed consent decree in the U.S. District Court for the Western District of Louisiana that permanently enjoins Pick and Pay, Inc./ Cili Minerals LLC (Cili Minerals), and its owner and CEO, Anton S. Botha, to stop the distribution of misbranded and unapproved new drugs and misbranded and adulterated dietary supplements, the Justice Department announced today.
The complaint alleged that the defendants violated the federal Food, Drug and Cosmetic Act (FDCA) by manufacturing, promoting, and distributing numerous dietary supplements that the defendants had been marketing as drugs that were intended to treat, cure, or prevent a variety of diseases such as cancer, cardiovascular disease, multiple sclerosis, and other serious conditions. These marketing and sale efforts all involved unapproved drugs, in violation of the FDCA because the products had never been submitted to the U.S. Food and Drug Administration (FDA) for approval, and had never been found to be safe and effective for the medicinal uses claimed by defendants. Some of the products at issue were named ADD-Ease, Bone Structure, CilZinCo, Calcium, Boron, Potassium, Cilver, Sulfur, and Germanium. The Department filed a complaint in the U.S. District Court for the Western District of Louisiana on February 16 at the request of the FDA.
The complaint further alleges the defendants violated the FDCA by failing to manufacture products in accordance with FDA’s current good manufacturing practice (CGMP) regulations for dietary supplements, which require manufacturers to have systems in place to ensure that their products meet specifications for identity, purity, strength and composition. According to the complaint, several FDA inspections between 2012 and 2016 allegedly revealed that the defendants failed to ensure the identity, purity, strength and composition of their finished products.
“Dietary supplement manufacturers endanger public health when they make unsupported claims about unapproved drugs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice and FDA will continue to work together to protect the public from unapproved, adulterated and misbranded products, and to ensure that dietary supplement manufacturers furnish accurate information to consumers about the purity and contents of their products.”
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction. Once entered by the court, the consent decree requires that the defendants cease all production and distribution of misbranded and unapproved new drugs and adulterated and misbranded dietary supplements, and recall and destroy their drugs and dietary supplements. The proposed consent decree further requires that if the defendants wish to resume manufacturing drugs or dietary supplements in the future, they must implement the remedial measures set forth in the consent decree, notify FDA of the measures taken, and obtain written approval from the FDA that they appear to be in compliance with the remedial measures set forth in the consent decree and the FDCA. The proposed consent decree is currently awaiting judicial approval.
“Consumers deserve to know that the dietary supplements they ingest are safe and comply with the law,” said U.S. Attorney Stephanie A. Finley for the Western District of Louisiana. “When manufacturers and distributors market and distribute misbranded and adulterated products, the Justice Department will take affirmative steps to protect consumers. I want to thank the attorneys and investigators who worked so hard to keep our citizens safe.”
This matter was handled by Trial Attorney Christopher O’Connell of the Civil Division’s Consumer Protection Branch, with the assistance by Assistant U.S. Attorney Karen King of the U.S. Attorney’s Office for the Western District of Louisiana and Ariel Seeley of the U.S. Department of Health and Human Services’ Office of General Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Louisiana, visit its website at www.justice.gov/usao-wdla.
United States Files Consent Decree of Permanent Injunction Against a Louisiana Drug and Dietary Supplement Manufacturer to Stop Distribution of Misbranded and Unapproved New Drugs and Misbranded and Adulterated Dietary SupplementsRead the Press Release
The Department of Justice filed a proposed consent decree in the U.S. District Court for the Western District of Louisiana that permanently enjoins Pick and Pay, Inc./ Cili Minerals LLC (Cili Minerals), and its owner and CEO, Anton S. Botha, to stop the distribution of misbranded and unapproved new drugs and misbranded and adulterated dietary supplements, the Justice Department announced today.
The complaint alleged that the defendants violated the federal Food, Drug and Cosmetic Act (FDCA) by manufacturing, promoting, and distributing numerous dietary supplements that the defendants had been marketing as drugs that were intended to treat, cure, or prevent a variety of diseases such as cancer, cardiovascular disease, multiple sclerosis, and other serious conditions. These marketing and sale efforts all involved unapproved drugs, in violation of the FDCA because the products had never been submitted to the U.S. Food and Drug Administration (FDA) for approval, and had never been found to be safe and effective for the medicinal uses claimed by defendants. Some of the products at issue were named ADD-Ease, Bone Structure, CilZinCo, Calcium, Boron, Potassium, Cilver, Sulfur, and Germanium. The Department filed a complaint in the U.S. District Court for the Western District of Louisiana on Feb. 16, at the request of the FDA.
The complaint further alleges the defendants violated the FDCA by failing to manufacture products in accordance with FDA’s current good manufacturing practice (CGMP) regulations for dietary supplements, which require manufacturers to have systems in place to ensure that their products meet specifications for identity, purity, strength and composition. According to the complaint, several FDA inspections between 2012 and 2016 allegedly revealed that the defendants failed to ensure the identity, purity, strength and composition of their finished products.
“Dietary supplement manufacturers endanger public health when they make unsupported claims about unapproved drugs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice and FDA will continue to work together to protect the public from unapproved, adulterated and misbranded products, and to ensure that dietary supplement manufacturers furnish accurate information to consumers about the purity and contents of their products.”
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction. Once entered by the court, the consent decree requires that the defendants cease all production and distribution of misbranded and unapproved new drugs and adulterated and misbranded dietary supplements, and recall and destroy their drugs and dietary supplements. The proposed consent decree further requires that if the defendants wish to resume manufacturing drugs or dietary supplements in the future, they must implement the remedial measures set forth in the consent decree, notify FDA of the measures taken, and obtain written approval from the FDA that they appear to be in compliance with the remedial measures set forth in the consent decree and the FDCA. The proposed consent decree is currently awaiting judicial approval.
“Consumers deserve to know that the dietary supplements they ingest are safe and comply with the law,” said U.S. Attorney Stephanie A. Finley for the Western District of Louisiana. “When manufacturers and distributors market and distribute misbranded and adulterated products, the Justice Department will take affirmative steps to protect consumers. I want to thank the attorneys and investigators who worked so hard to keep our citizens safe.”
This matter was handled by Trial Attorney Christopher O’Connell of the Civil Division’s Consumer Protection Branch, with the assistance by Assistant U.S. Attorney Karen King of the U.S. Attorney’s Office for the Western District of Louisiana and Ariel Seeley of the U.S. Department of Health and Human Services’ Office of General Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Louisiana, visit its website at https://www.justice.gov/usao-wdla.
Ukrainian Citizen Sentenced to 41 Months in Prison for Using Army of 13,000 Infected Computers to Loot Log-In Credentials, Payment Card DataRead the Press Release
NEWARK, N.J. – The administrator of two criminal online hacking forums was sentenced today to 41 months in prison for stealing log-in and payment card data as part of an international hacking conspiracy, U.S. Attorney Paul J. Fishman announced.
Sergey Vovnenko, a/k/a “Sergey Vovnencko,” “Tomas Rimkis,” “Flycracker,” “Flyck,” “Fly,” “Centurion,” “MUXACC1,” “Stranier,” and “Darklife,” 31, most recently of Naples, Italy, previously pleaded guilty before the U.S. District Judge Esther Salas to Count One and Count Three of an indictment charging him with wire fraud conspiracy and aggravated identity theft. Judge Salas imposed the sentence today in Newark federal court.
Vovnenko was arrested on June 13, 2014, following an international investigation led by the U.S. Secret Service in coordination with Italian law enforcement. He had been detained by the Italian authorities pending the resolution of extradition proceedings, which he contested for more than 15 months.
According to documents filed in this case and statements made in court:
From September 2010 through August 2012, Vovnenko and his conspirators operated an international criminal organization that hacked into the computers of individual users and companies located in the United States and elsewhere. They used that access to steal user names and passwords for bank accounts and other online services, as well as debit and credit card numbers and related personal identifying information.
Vovnenko admitted that, in order to steal this data, he operated a “botnet” – more than 13,000 computers infected with malicious computer software – programmed to gain unauthorized access to computers and to identify, store, and export information from hacked computers. A number of the infected computers were located in New Jersey. Vovnenko admitted using malware known as “Zeus” to steal banking information and record the keystrokes of the users of infected computers.
According to the indictment, Vovnenko was a high-level administrator of several online criminal forums and used his position to traffic in the data he stole as part of the conspiracy. These forums featured electronic bulletin boards, which members used to publicly communicate with all members and also send private messages directly to individual members.
The public and private discussions on these forums typically pertained to criminal activity, including the purchase, sale, and use of stolen log-in credentials and payment card data, as well as discussions related to cybercrime activity such as malicious computer hacking. For example, in August 2012, one of the forums offered various illicit products for sale, including access to compromised computer servers located in the United States. A price was listed for each product, and customers could click an “order” button and purchase the product using “credits” associated with their accounts.
In addition to the prison term, Judge Salas sentenced Vovnenko to three years of supervised release and ordered him to pay restitution of $83,368.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations Division, under the direction of Director Joseph P. Clancy, and special agents from the Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, with the ongoing investigation leading to today’s sentencing.
He also thanked the Department of Justice’s Office of International Affairs in Washington and its attaché in Rome; The U.S. Embassy to Italy and the Republic of San Marino; and the Italian Ministry of Justice and Italian law enforcement officials for their extraordinary support.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit.
Defense Counsel: Timothy Anderson Esq., Red Bank, New Jersey
U.S. Navy Commander Charged as Part of Expanding Navy Bribery ScandalRead the Press Release
A current U.S. Navy Commander was charged in a complaint unsealed today with accepting luxury travel, elaborate dinners and services of prostitutes from foreign defense contractor Leonard Francis in exchange for classified and internal U.S. Navy information.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Alana Robinson of the Southern District of California, Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS) made the announcement.
Mario Herrera, 48, of Helotes, Texas, was charged with one count of conspiracy to commit bribery in connection with interactions with Leonard Francis, the former CEO of Glenn Defense Marine Asia (GDMA), a defense contracting firm based in Singapore. Herrera was arrested in San Antonio, Texas, this morning and is scheduled to make his initial appearance in federal court in the Western District of Texas. The United States will seek removal of Herrera to San Diego to face charges.
According to the complaint, Herrera participated in a bribery scheme with Francis in which he accepted luxury travel and entertainment expenses and the services of prostitutes in exchange for helping to steer lucrative U.S. Navy contracts to Francis and GDMA. Herrera provided Francis with internal, proprietary U.S. Navy information and intervened on GDMA’s behalf in contract disputes. According the complaint, Herrera directed ships to take alternative routes that benefitted GDMA on two separate occasions, costing the U.S. Navy $3.6 million.
To date, a total of 17 individuals have been charged in connection with the scheme; of those, 13 have pleaded guilty, including: Admiral Robert Gilbeau, Captain Michael Brooks, Commander Bobby Pitts, Captain Daniel Dusek, Commander Michael Misiewicz, Lt. Commander Todd Malaki, Commander Jose Luis Sanchez, former NCIS Special Agent John Beliveau and U.S. Petty Officer First Class Daniel Layug.
Brooks, Gilbeau and Sanchez await sentencing. In May 2016, Pitts was charged and his case is currently pending. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and to pay a $15,000 fine. On Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine. On March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine. On April 29, 2016, Misiewicz was sentenced to 78 months in prison and to pay $95,000 in restitution to the Navy and a $100,000 fine. On Oct. 14, 2016, Beliveau was sentenced to 12 years in prison and to pay $20 million in restitution. On Dec. 2, 2016, Simpkins was sentenced to 72 months in prison, to pay $450,000 in restitution, to forfeit $150,000 and pay a $50,000 fine.
A criminal complaint is merely an accusation, and the accused is presumed innocent unless proven guilty in a court of law.
DCIS, NCIS and the Defense Contract Audit Agency are investigating the case. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California are prosecuting the case.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.Two Lockport Men Indicted on Fruad ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an eight-count indictment charging Michael Rosier, 22, and Cody Kross-Rosier, 22, both of Lockport, NY, with bank fraud and conspiracy to commit bank fraud. The charges carry a maximum penalty of 30 years in jail and a $1,000,000 fine.
Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that according to the indictment, between January and March 2014, Rosier and Kross-Rosier conspired with others to execute a scheme to defraud seven federally insured financial institutions.
The scheme involved the use of existing bank accounts and the opening of new accounts in an effort to obtain or attempt to obtain money, services, and merchandise totaling approximately $123,000. The defendants floated checks between the accounts in an effort to prevent the financial institutions from discovering that the respective accounts contained insufficient funds to cover the checks deposited or written. On one occasion, in January 2014, Rosier and Kross-Rosier deposited a $100,000 check into an account Kross-Rosier had at Citizens Bank. The check was drawn on a closed account that Kross-Rosier had at Bank of America. Thereafter, Rosier, Kross-Rosier, and others attempted to obtain money and merchandise with the proceeds of the fraudulent check, including an attempted transfer of $5,000 to an E*TRADE account controlled by Rosier, and the attempted purchase of approximately $16,000 in merchandise from Men’s Wearhouse, in Amherst, NY.
The defendants will be arraigned on February 21, 2017, at 11:15 a.m. before U.S. Magistrate Judge Jeremiah J. McCarthy.
The indictment is the result of an investigation by the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Thug Relations Gang Member Sentenced to 40 YearsRead the Press Release
NEWPORT NEWS, Va. – Maurice McLain, 33, of Newport News, was sentenced today to 40 years in prison for his role in a racketeering conspiracy involving the Thug Relations gang in Newport News.
McLain was found guilty by a jury on June 17, 2016, after a three-week jury trial. According to court documents, McLain was a member of the gang Thug Relations. Members and associates of Thug Relations were responsible for drug trafficking, numerous shootings, home invasions, and murders. Specifically, the jury found McLain guilty of the murder of 17-year-old Aaron Sumler at Aqueduct Apartments on July 5, 2007. McLain, who at the time of trial was serving a 15-year sentence for using a gun during narcotics trafficking, will ultimately serve 50 years in prison for his crimes.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; and Richard W. Myers, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Managing Assistant U.S. Attorney Howard J. Zlotnick, Assistant U.S. Attorneys Brian Samuels and Lisa R. McKeel, and Special Assistant U.S. Attorney Yvonne Garcia 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. 4:14-cr-59.
Thai Man Sentenced to 55 Months in Prison for Conspiracy to Violate Arms Export Control Act and International Traffic in Arms RegulationsRead the Press Release
WASHINGTON – Pheerayuth Burden, 47, a Thai national who had been living in Torrance, California, was sentenced today to 55 months in prison for taking part in a conspiracy involving the purchase and shipment of hundreds of gun parts and accessories from the United States to Thailand without a license. His company, Wing-On LLC, also was sentenced to three years of probation and ordered to pay a $250,000 fine.
The sentencing was announced by U.S. Attorney Channing D. Phillips and Clark E. Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C.
On Sept. 30, 2016, following a trial in the U.S. District Court for the District of Columbia, a jury found Burden and Wing-On LLC guilty of one count of conspiracy to violate the Arms Export Control Act and the International Traffic in Arms Regulations, one count of unlawful export of defense articles from the United States, and one count of conspiracy to commit money laundering. The Honorable Rosemary M. Collyer sentenced Burden and the company today. Following his prison term, Burden will be placed on three years of supervised release. He and the company also were ordered to pay a forfeiture money judgment in the amount of $105,112.
A co-defendant, Kitibordee Yindeear-Rom, 30, a native and citizen of Thailand, pled guilty to a conspiracy charge in November 2014. Yindeear-Rom was sentenced in March 2015 to a three-year prison term.
According to the government’s evidence, beginning at least in or about July 2010, Burden, Wing-On, LLC and Yindeear-Rom entered into an agreement to illegally ship United States origin goods, including defense articles - specifically gun parts - to Thailand. As part of their agreement, Yindeear-Rom purchased gun parts from United States manufacturers through on-line purchases, and directed the purchased items to be sent to Burden and Wing-On, which was based in Carson, Calif., to conceal the ultimate destination of the purchases.
Upon receipt of the gun parts, the items would be repackaged for shipment to Thailand. Extending through at least October 2013 as part of the conspiracy, Burden and Yindeear-Rom caused to be purchased and shipped hundreds of different gun parts from the United States to Thailand without a license. These gun parts included, for example, numerous firearm parts, including key components for AR-15 military-style assault rifles.
The jury found that Burden and his company, Wing-On, LLC, acted without a license and in knowing violation of federal export and money-laundering law.
“This defendant and his company exported numerous gun parts and accessories outside the United States, repeatedly breaking the law to make a profit,” said U.S. Attorney Phillips. “This prosecution demonstrates that there will be consequences for those who disregard export laws and threaten our national security.”
“The U.S. has export laws in place to ensure that firearms and sensitive technologies are properly monitored when they are shipped overseas,” said Special Agent in Charge Settles. “Kudos to the HSI special agents who disrupted this export scheme.”
In announcing the sentences, U.S. Attorney Phillips and Special Agent in Charge Settles commended the efforts of the Special Agents who investigated the case for U.S. Immigration and Customs Enforcement, Homeland Security Investigations. They also expressed appreciation for the assistance provided by the State Department’s Directorate of Defense Trade Controls, U.S. Customs and Border Protection, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Christopher B. Brown, Zia Faruqui, and Michael Friedman; Paralegal Specialists Elana Buruncenco and Jorge Casillas; Victim/Witness Advocates Yvonne Bryant and Tonya Jones, and Litigation Technology Specialists Anisha Bhatia and Josh Ellen. Finally, they commended the work of Assistant U.S. Attorneys Tejpal Chawla and Opher Shweiki, who prosecuted the case.
Tax Preparers and Recruiter Admit Filing False Returns in Elaborate Tax Return ScamRead the Press Release
Assistant U.S. Attorney Joseph J.M. Orabona (619) 546-7951
NEWS RELEASE SUMMARY – February 16, 2017
SAN DIEGO – Two tax preparers and a recruiter working with those preparers pleaded guilty today in federal court, admitting to their involvement in a tax return scam that resulted in the filing of false returns, the use of stolen identities and the receipt of more than $880,000 in bogus tax refunds.
Rahim Ali Cummings and Ebrahim Ashamu were local tax preparers in El Cajon, California. Ashamu operated his tax preparation business as Vista Tax Services on El Cajon Boulevard. Rashad Abdul-Rahim worked with Cummings and Ashamu by recruiting customers and obtaining stolen identities to use in their fraudulent scheme. Cummings and Abdul-Rahim pleaded guilty to conspiracy and Ashamu pleaded guilty to filing false claims and aggravated identity theft before U.S. Magistrate Judge Nita L. Stormes.
According to the plea agreements, Cummings and Ashamu prepared and filed the false tax returns with the Internal Revenue Service between September 2011 and September 2012. Abdul-Rahim solicited and obtained the personal identifying information from the victims using false pretenses, such as informing the victims they could obtain “free” government money from alleged grant and senior programs. He concealed his intention to use the information to file false tax returns. Abdul-Rahim provided Cummings and Ashamu with the personal information of the victims in order for Cummings and Ashamu to prepare and file the false tax returns. The IRS uncovered the scheme because a majority of the refunds were mailed to addresses controlled by Cummings, Ashamu, and Abdul-Rahim.
The plea agreement for each defendant sets forth the amount of refunds directly deposited into bank accounts under their control. In particular, Cummings received approximately $470,042 in fraudulent refunds directly deposited into bank accounts he controlled. Ashamu received approximately $367,631. Abdul-Rahim received approximately $44,937 in fraudulent refunds and additional cash payments from Cummings and Ashamu for providing the victims’ information. As a result of their crimes, Cummings, Ashamu, and Abdul-Rahim caused approximately $882,610 in losses to the IRS. Each defendant has agreed to make full restitution to the IRS for the total amount of false refunds they each received.
Furthermore, as part of their plea agreements, Cummings, Ashamu, and Abdul-Rahim agreed to be permanently enjoined from preparing or filing federal income tax returns for anyone other than themselves. A civil complaint will be filed against them, and a permanent injunction will be entered to prevent Cummings, Ashamu, and Abdul-Rahim from acting as a tax preparer in the future.
With a new tax return filing season upon us, the public is reminded to always review a copy of any tax return prepared and filed on their behalf and to be skeptical of tax preparers that offer to obtain substantial tax refunds.
Cummings, Ashamu, and Abdul-Rahim are scheduled to be sentenced on May 1, 2017 at 9 a.m. before U.S. District Judge Roger T. Benitez.
DEFENDANTS Criminal Case No. 16CR0768-BEN
Rahim Ali Cummings Age: 47 Detroit, Michigan
Ebrahim Ashamu Age: 58 El Cajon, California
Rashad Abdul-Rahim Age: Age: 46 El Cajon, California
CHARGES THAT DEFENDANTS CUMMINGS AND ABDUL-RAHIM PLEADED GUILTY TO:
Count 1 – Title 18, United States Code, Section 286 B Conspiracy to Commit Mail Fraud, File False Claims, Fraudulently Use a Social Security Number of Another, and Aggravated Identity Theft
Maximum penalties: 5 years in prison, $250,000 fine, 3 years of supervised release.
CHARGES THAT DEFENDANT ASHAMU PLEADED GUILTY TO:
Count 33 – Title 18, United States Code, Section 287 B Filing False, Fictitious and Fraudulent Claims
Maximum penalties: 5 years in prison, $250,000 fine, 3 years of supervised release.
Count 56 – Title 18, United States Code, Section 1028A – Aggravated Identity Theft
Maximum penalties: Mandatory 2-year sentence, to be served consecutive to any other prison term, $250,000 fine, 3 years of supervised release.
INVESTIGATING AGENCIES
Internal Revenue Service-Criminal Investigation
United States Secret Service
Tax Preparer Pleads Guilty to Theft of Government FundsRead the Press Release
Jackson, Miss. -- Carmecia Jordan, 33, of Jackson, pled guilty in U.S. District Court today to theft of government funds, announced U.S. Attorney Gregory K. Davis and IRS- Criminal Investigation Special Agent in Charge Jerome McDuffie.
Jordan was fifty percent owner of Hour Tax, LLC, a tax preparation business in Jackson. Beginning in 2013, Jordan submitted fraudulent tax returns and subsequently submitted fraudulent amended returns without the consent of her clients. Jordan then diverted the refunds from the amended tax returns in the form of U.S. Treasury checks to five different addresses under her control. Jordan later cashed these checks and spent the money without the knowledge of her clients. Over a three-year period, Jordan defrauded the government of over $245,000.
Jordan will be sentenced by Senior U.S. District Judge Henry T. Wingate on May 4, 2017, at 9:30 a.m. and faces a maximum sentence of 10 years in prison and a $250,000 fine.
This case was investigated by IRS-Criminal Investigation and the U.S. Secret Service. It is being prosecuted by Assistant U.S. Attorney Mary Helen Wall.
Taney County Restaurant Owner Indicted for Tax Evasion, Social Security FraudRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of a Taney County, Mo., restaurant has been indicted by a federal grand jury for tax evasion and Social Security fraud.
Tony E. Cowden, 62, of Protem, Mo., was charged in a six-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Wednesday, Feb. 15, 2017. That indictment was unsealed and made public today upon Cowden’s arrest and initial court appearance.
Cowden operated Tony’s Pizza House in Protem since April 2008. The federal indictment alleges that Cowden engaged in a scheme to conceal taxable income from the IRS from April 2008 to January 2015 by not depositing all of the proceeds of his restaurant’s cash sales into the restaurant’s checking account, and not reporting that cash income to the IRS.
Cowden encouraged his customers to pay in cash by offering discounts for cash payments. Cowden allegedly concealed the cash he skimmed from the restaurant from his accountant and so evaded paying federal income taxes on that revenue.
The federal indictment charges Cowden with five counts of tax evasion for taxes filed from 2010 to 2014, for a total tax loss of $80,689.
The federal indictment also alleges that Cowden received Social Security disability benefits while he continued to work and earn income from Tony’s Pizza House. Cowden allegedly concealed his work activity from the Social Security Administration by falsely claiming that he was not working, by transferring ownership of his business into his wife’s name, and by reporting all income from the business as self-employment income under his wife’s name and Social Security number.
Cowden also had three minor children who were eligible to receive Social Security auxiliary benefits contingent on his eligibility to receive disability benefits. Cowden served as the representative payee for his three minor children and as such, received their auxiliary Social Security payments. Because Cowden was not eligible to receive disability benefits, the indictment says, his minor children were also ineligible to receive the auxiliary payments.
As a result of Cowden’s scheme to fraudulently obtain Social Security disability payments from January 2014 through December 2015, the indictment says, the government incurred a loss of $70,176.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation, Social Security Administration – Office of Inspector General and Missouri Department of Revenue.
Suquamish Tribal Member Sentenced to Prison for Domestic Violence Attack on Intimate PartnerRead the Press Release
An enrolled member of the Suquamish Indian Tribe was sentenced this week to five months in prison and three years of supervised release, including three months of home detention and 100 hours of community service for assault, announced U.S. Attorney Annette L. Hayes. HA-KWA CHIQUITI, 38, assaulted his girlfriend on December 22 and 23, 2015. At the sentencing hearing U.S. District Judge Benjamin H. Settle noted CHIQUITI’s conduct constituted a serious, violent crime causing substantial injury and suffering.
According to records filed in the case, Suquamish Police were called to a home on tribal land where they found the victim covered in blood and seriously injured. She was transported to Harrison Hospital in Bremerton. She reported that CHIQUITI had hit her, forcibly restrained her, slammed her face into the edge of the bath tub and stepped on her back while she was lying on the floor. She had multiple cuts and bruises, a damaged eye socket and vision problems because of the assault.
As part of his sentence, CHIQUITI is required to participate in a domestic violence/anger management program. CHIQUITI is also prohibited from having any contact with the victim.
The case was investigated by the Suquamish Police Department and the FBI. The case was prosecuted by Assistant United States Attorneys J. Tate London and Ye-Ting Woo.
St. Thomas Man Indicted for Possessing with Intent to Distribute Crack Cocaine within 1,000 Feet of a SchoolRead the Press Release
St. Thomas, USVI – A Federal Grand Jury has returned an indictment today charging Tomolah Foy, 23, of St. Thomas with four counts of possessing with intent to distribute crack cocaine within 1,000 feet of a school, announced United States Attorney Ronald W. Sharpe. On December 12, 2016, Foy made his initial appearance before U.S. Magistrate Judge Ruth Miller and is on pretrial release.
According to the indictment, in November and December of 2016, the defendant sold and attempted to sell quantities of crack cocaine in the area of Red Hook within 1,000 feet of the Ivanna Eudora Kean High School.
If convicted, Foy faces a maximum sentence of not more than 40 years in prison, and a fine of up to $2,000,000, and at least six years of supervised release.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Everard E. Potter.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Southeastern Connecticut Drug Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SYDNEY JACKSON, also known as “Fatz,” 34, of New London, Conn. and Queens, N.Y., was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 120 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
This matter stems from a long-term investigation headed by the Connecticut State Police Statewide Narcotics Task Force East and U.S. Drug Enforcement Administration into the large-scale distribution of narcotics in southeastern Connecticut. The investigation revealed that, between 2013 and 2015, JACKSON and others regularly acquired kilogram quantities of cocaine and heroin from sources in New York and transported the drugs to southeastern Connecticut. Much of the cocaine was converted to crack cocaine by JACKSON in Connecticut, and the drugs were distributed through a network of dealers in Groton, Norwich, New London, Stonington, Westerly, R.I. and the surrounding area.
On November 24, 2015, a federal grand jury in Hartford returned a 35-count superseding indictment charging JACKSON and 12 other defendants with various narcotics trafficking and firearm offenses. In addition, approximately 20 individuals were prosecuted on related state charges.
During the course of the investigation, which included numerous controlled purchases of narcotics, extensive surveillance and the execution of 11 state search warrants, investigators seized approximately 1.3 kilograms of cocaine, one kilogram of crack cocaine, 416 grams of heroin, five firearms and $53,500 in cash.
JACKSON was arrested on June 23, 2015. On October 27, 2016, he pleaded guilty to one count of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”).
This matter has been investigated by the Connecticut State Police Statewide Narcotics Task Force East, U.S. Drug Enforcement Administration, Homeland Security Investigations, U.S. Marshals Service, Connecticut Department of Correction and Groton City, Groton Town, New London, Norwich and Waterford Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Dave Vatti and Joseph Vizcarrondo, with the assistance of Senior Assistant State’s Attorneys Paul Narducci and David Smith of the State’s Attorney’s Office for the Judicial District of New London.
Six Indicted in Hampton Roads Heroin and Cocaine ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Six Hampton Roads residents were indicted yesterday for their alleged involvement in a conspiracy to distribute cocaine, cocaine base, heroin and fentanyl over a four-year period in Newport News, Hampton, Norfolk and Virginia Beach.
According to allegations in the indictment, Terry Glenn Williams, 33, of Newport News, was an armed drug dealer who distributed heroin and cocaine from various hotels in Hampton Roads and used female drug addicts to engage in prostitution to further the conspiracy. Williams is charged with the heroin overdose death of Michelle Gonyer on April 8, 2013, and another overdose involving serious bodily injury. Williams and Kristen Paiva, 26, of Hampton, are also charged with the heroin overdose death of Caroline Eaton on April 10, 2013. Williams is also charged with carrying firearms while engaged in selling and supplying heroin, fentanyl, cocaine, and cocaine base.
Name
Age, Hometown
Charges
Terry Glenn Williams
33, Newport News
Conspiracy to Possess with Intent to Distribute Heroin, Cocaine, Cocaine Base and Fentanyl; Maintaining Drug Involved Premises; Use of a Communication Facility to Facilitate Drug Trafficking; Distribution of Cocaine, Cocaine Base and Heroin; Distribution of Heroin resulting Death and Serious Bodily Injury; Money laundering.
Longene Durae Alexander
34, Newport News
Conspiracy to Possess with Intent to Distribute Heroin, Cocaine, Cocaine Base and Fentanyl; Maintaining Drug Involved Premises; Use of a Communication Facility to Facilitate Drug Trafficking; Distribution of Cocaine, Cocaine Base and Heroin; Distribution of Heroin resulting Death and Serious Bodily Injury; Money laundering
Tymane Raymond Springs
32, Newport News
Conspiracy to Possess with Intent to Distribute Heroin, Cocaine, Cocaine Base and Fentanyl; Maintaining Drug Involved Premises; Use of a Communication Facility to Facilitate Drug Trafficking; Distribution of Cocaine, Cocaine Base and Heroin; Distribution of Heroin resulting Death and Serious Bodily Injury
Tiffany Renee Taylor
29, Newport News
Distribution of heroin resulting in serious bodily injury
Ashley Lorraine Kearney
32, Yorktown
Distribution of heroin resulting in serious bodily injury
Kristen Rose Paiva
26, Hampton
Distribution of heroin resulting in death
Williams, Alexander, Springs, Taylor, and Pava each face a maximum penalty of 20 years to life in prison, if convicted. Kearney faces a maximum penalty of 20 years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Washington Filed Division, made the announcement after the indictment was returned by the grand jury. Assistant U.S. Attorneys Lisa R. McKeel and Howard J. Zlotnick are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-16.
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.
Sentencings for February 13 - February 16, 2017Read the Press Release
John Patrick Nordmann, 59, of Laramie, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl, on February 16, 2017, for being a felon in possession of a firearm. Nordmann was arrested in Laramie, Wyoming. He received 36 months of imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
James Herman Bell, 44, of Evanston, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 15, 2017, for possession of an unregistered firearm, destructive device. Bell was arrested in Rawlins, Wyoming. He received 18 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $250.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Cheryl Ann McGill, 53, of Phoenix, Arizona, was sentenced by Federal District Court Judge Alan B. Johnson on February 13, 2017, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. McGill was arrested in Phoenix, Arizona. She received 108 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $400.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation and the Arizona Department of Public Safety.
Andrew Leon VanSteenbergen, 24, of Bellflower, California, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 13, 2017, for conspiracy to distribute 50 grams or more of methamphetamine. VanSteenbergen was arrested in Sundance, Wyoming. He received 87 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $400.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation.
Sayre Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that BRANDON J. GRIMLAND, age 42, of Sayre, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by no more than 30 years imprisonment, and up to a $2,000,000.00 fine or both.
The Indictment alleged that on or about October 15, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from an investigation by the Oklahoma Highway Patrol, and the Oklahoma Bureau of Narcotics.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney Dean Burris represented the United States.
San Antonio I.S.D. Trustee Arrested in Connection with a Bribery and Kickback SchemeRead the Press Release
In San Antonio this morning, FBI agents arrested 66–year-old San Antonio Independent School District (SAISD) Trustee Olga Hernandez for her alleged role in a bribery scheme depriving taxpayers of honest services announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
A federal grand jury indictment unsealed this afternoon, alleges that from March 2008 to May 2015, Hernandez conspired with Samuel Mullen, Chief Financial Officer of the Mullen Pension & Benefits Group, LLC; Joshua Cerna, Vice President of Strategic Markets for the Mullen Group; and, William Haff, a paid independent insurance consultant, to defraud SAISD and taxpayers in securing health insurance services contracts for school district employees by corrupt practices.
Specifically, the indictment alleges that Hernandez accepted bribes in the form of cash, jewelry, and travel from co-conspirators for her influence on the SAISD Board of Trustees and her vote on numerous insurance services contracts awarded to companies with whom the Mullen Group had a financial interest.
Upon conviction, Hernandez faces up to 20 years in federal prison.
This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorneys Mark Roomberg and Joseph Blackwell are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Sacramento Gun Manufacturer Sentenced to Prison for Manufacturing and Assisting Others to Manufacture AR-15 RiflesRead the Press Release
SACRAMENTO, Calif. — Daniel Albert Crowninshield, 54, of Sacramento, was sentenced today to three years and five months in prison for unlawfully manufacturing and dealing in firearms and possession of an unregistered machinegun, U.S. Attorney Phillip A. Talbert announced.
In sentencing Crowninshield, U.S. District Judge Troy L. Nunley referred to his actions as a “brazen attempt to circumvent the law.” He was ordered to self-surrender on April 13, 2017.
U.S. Attorney Talbert stated: “The unregulated manufacture and sale of high-capacity firearms is a serious threat to public safety. We will continue to investigate and prosecute unlicensed gun dealers who circumvent the law.”
“If individuals neglect to follow federal firearms laws, ATF has the responsibility to investigate these activities because it is ATF's highest priority to safeguard the public it serves,” said Special Agent in Charge Jill A. Snyder. “ATF enforces the federal laws and rules governing the manufacturing of firearms. When ATF receives information on the illegal manufacture of firearms, it investigates and has the authority to promulgate rules and regulations to implement those laws. Daniel Crowninshield, aka Dr. Death, owned and operated a machine shop where he allowed customers with unknown backgrounds to use his machinery to unlawfully manufacture firearms for profit. That activity posed a very dangerous threat to the safety of our communities.”
According to court documents, Crowninshield, who was also known by his online moniker “Dr-Death,” operated an unlicensed firearms manufacturing business out of C&G Tool, a metal shop in North Sacramento. Using sophisticated computer-controlled machines, Crowninshield manufactured parts for AR-15s and other firearms.
Many individual firearm components are not subject to regulation by ATF and can be bought and sold without reporting the sales and without requiring a background check. One such part is a metal casting of an incomplete “lower receiver” called a “blank.” The blank can be converted into a lower receiver, which is the part of an AR‑15 that contains a trigger, firing pin, and other parts, to form a functioning firearm. Once the blank is milled into a completed lower receiver using a drill press or automated machine, it is considered a firearm and it is subject to federal regulation.
Generally, the manufacturing at C&G Tool would proceed as follows: prospective gun buyers would purchase an AR-15 blank and take it to C&G Tool where a skilled machinist would mill the blank into an AR-15 lower receiver. According to federal law, a person may manufacture a firearm for personal use without including a serial number on the firearm, provided that the firearm is not sold or transferred to another person. Otherwise, to manufacture a firearm requires a license from ATF, and a firearm that is transferred to another person must bear a serial number.
According to court documents, in order to create the pretext that C&G customers were building their own firearms, the skilled machinist would have the customer press a button or put his or her hands on a piece of machinery so that the customer could claim that the customer, rather than the machinist, made the firearm.
Crowninshield advertised his services on at least one online firearm enthusiast forum. This website mainly consists of forums where people ask and answer questions related to firearms. Using the moniker “Dr-Death,” he was a prolific poster on the website. Additionally, other members frequently posted about Dr-Death, including review of service provided and recommending that other users visit his shop.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the California Department of Justice’s Bureau of Firearms with the assistance of the Sacramento Police Department, the Sacramento County Sheriff’s Department, and California Highway Patrol. Assistant U.S. Attorneys Justin Lee and Matthew Yelovich prosecuted the case.
Crowninshield was one of several Sacramento-area individuals involved in manufacturing AR-15 style firearms. On December 9, 2016, in a related case, Emiliano Cortez-Garcia (2:13-cr-353-GEB) was sentenced to five years in prison for manufacturing AR-15 firearms and a concurrent six-year prison term for possession of an unregistered firearm and possession of a machinegun.
Roofing Company Owner Pleads Guilty to Harboring Illegal Aliens Who Worked for HimRead the Press Release
KANSAS CITY, KAN. B A Shawnee man who was co-owner of a roofing company pleaded guilty today to providing employment, transportation and housing for undocumented workers from Mexico who he knew were in the United States illegally, U.S. Attorney Tom Beall said.
Tommy Frank Keaton, 71, Shawnee, Kan., co-owner of Canadian West, Inc., and RAM Metal Products, doing business as Century Roofing, pleaded guilty to one count of knowingly harboring illegal aliens. In his plea, he admitted the crime occurred while he operated Century Roofing at 6 South 59th St. Lane in Kansas City, Kan. Keaton provided vehicles to some Mexican citizens who worked for his company, as well as housing at a residence he owned in the 1500 block of South 18th Street in Kansas City, Kan. He admitted that about $1.4 million the government seized from him are the proceeds of the offense and are subject to forfeiture.
Beall commended Homeland Security Investigations (HSI), the Kansas Department of Revenue, the Clay County Sheriff’s Department, the Overland Park Police Department, the Wyandotte County Sheriff’s Department, the Kansas City, Kan., Police Department, the Lenexa Police Department, the Shawnee Police Department and Assistant U.S. Attorney Brent Anderson for their work on the case.
Riverside County Man Arrested on Federal Charges of Advertising, Distributing and Possessing Child PornographyRead the Press Release
RIVERSIDE, California – Federal authorities this morning arrested a Perris man who was indicted last week by a grand jury on child pornography offenses stemming from a large collection of illicit images found on his home computer and evidence that he was engaged in online trading of child pornography with others, including an undercover law enforcement officer.
Jerry Glen Moran Jr., 63, was taken into custody without incident by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Moran is expected to be arraigned this afternoon in United States District Court.
A federal grand jury on February 8th named Moran in a four-count indictment that charges the defendant with one count of advertising child pornography, two counts of distributing child pornography and one count of possession of child pornography.
During the investigation, authorities recovered tens of thousands of images and videos on Moran’s home computer and in emails that he had sent and received. The National Center for Missing and Exploited Children reviewed many of the computer files and identified thousands of them as being known images and videos of child pornography.
The investigation into Moran began after he was found to be a user of a foreign photo-sharing website identified by law enforcement as a platform used by child pornographers to meet and trade child pornography.
“The online child pornography market presents an ongoing threat to children who are abused to produce material,” said United States Attorney Eileen M. Decker. “A child is victimized every time an image is generated and every time it is distributed. This defendant’s conduct is more serious because he advertised his collection to others.”
“Every time a sexually explicit image of a child is downloaded and viewed, that victim is violated yet again,” said Joseph Macias, special agent in charge for HSI Los Angeles. “It is our duty as law enforcement officers, to protect those who cannot protect themselves. HSI will continue to pursue child predators and make them accountable for their unconscionable actions.”
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.
The charge of advertising child pornography carries a mandatory minimum penalty of 15 years in federal prison and a statutory maximum penalty of 30 years. The charge of distributing child pornography carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years. The charge of possession of child pornography carries a maximum possible sentence of 20 years in prison.
This case is being prosecuted by Special Assistant United States Attorney Teresa K.B. Beecham of the Riverside Branch Office.
Retired Orleans Parish Sheriff’s Office Chief Deputy Sentenced for Conspiracy to Commit Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GERALD URSIN, JR., age 63, of New Orleans and a retired Chief Deputy of the Orleans Parish Sheriff’s Office (“OPSO”), was sentenced today after previously pleading guilty to a one-count Bill of Information with conspiracy to commit wire fraud.
U.S. District Judge Eldon E. Fallon sentenced URSIN to three years probation, a $10,000 fine, $25,178 in restitution, and a $100 special assessment.
According to court documents, beginning in 2009 and continuing until January 2014, URSIN and others participated in a conspiracy to commit wire fraud. URSIN admitted that in his role as a Chief Deputy in the Orleans Parish Sheriff’s Office, he engaged in a scheme to defraud local entities and events, including Mardi Gras Krewes, music and food festivals, and sporting events, by padding the billing documents with names of individuals who did not in fact provide any security services (“Ghost Employees”).
Additionally, URSIN admitted that after the fraudulently inflated invoices were submitted via interstate wires, a portion of the overbilled amount was given to him in the form of checks made payable to family members under the fraudulent guise of payments for detail work that in fact did not take place.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, with assistance from the Louisiana Legislative Auditor’s Office in investigating this matter and acknowledged the assistance provided by the Louisiana Legislative Auditors. Assistant Attorney Sean Toomey was in charge of the prosecution.
Published Historian of Spain Indicted by A Federal Grand Jury for Possession of Child PornographyRead the Press Release
A federal grand jury indicted Henry Kamen for possession of child pornography. Kamen, a British citizen currently residing in Barcelona, Spain, is a well-known historian and Professor of Spanish History, who resided within the Athens Division of the Middle District of Georgia. The grand jury alleged in the Indictment that Kamen possessed child pornography in September of 2014. If convicted of this charge, Kamen faces up to 20 years of imprisonment, and up to lifetime supervised release after being released from custody.
The charges in the Indictment are only allegations and are not evidence of guilt. Defendant Kamen is presumed innocent unless and until he is proven guilty and the Government has the burden of proving his guilt beyond a reasonable doubt.
The case is being investigated by the Georgia Bureau of Investigation’s Child Exploitation and Computer Crimes Unit. Assistant United States Attorney Erin N. Spritzer is prosecuting the case on behalf of the United States. Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office at (478) 621-2603.
Prince George’s County Felon Sentenced to over 16 Years in Federal Prison for Robbery and Firearms ChargesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Derrick Rondell Battle, age 43, of Bladensburg, Maryland, today to 198 months in prison, followed by five years of supervised release, for armed commercial robbery, using and brandishing a firearm during a crime of violence and being a felon in possession of a firearm, related to three robberies he committed in September 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement, Battle committed three armed robberies between September 21 and September 25, 2015. In each robbery Battle wore a mask and was armed with a black semi-automatic handgun, which he brandished at store employees.
Specifically, Battle robbed: a pharmacy in the 6400 block of Landover Road in Landover, Maryland on September 21, 2015; a discount store in the 6500 block of Annapolis Road in Landover Hills, Maryland on September 24, 201; and a gas station in the 5800 block of Annapolis Road in Cheverly, Maryland.
As Battle fled the gas station, a strong wind blew the stolen money out of the bag and Battle stopped to collect the money. Responding police officers saw Battle in a nearby ravine and he was apprehended after a brief chase. Police officers recovered cash from Battle and, within feet of where he was apprehended, the gun used in the robbery, additional cash, and the jacket Battle wore during the robbery.
The gun was a .45 caliber semi-automatic handgun loaded with six .45 caliber rounds of ammunition. Battle was prohibited from possessing a firearm or ammunition as a result of previous felony convictions. Of the approximately $1,600 stolen, a total of $1,200 was recovered.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Menaka Kalaskar and Bryan E. Foreman, who prosecuted the case.
Previously Convicted Felon Sentenced for Gun PossessionRead the Press Release
DAYTON – Tony Chancellor, 24, of Dayton, was sentenced in U.S. District Court to 84 months in prison for possessing a firearm after having been convicted of a felony.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Dayton Police Chief Richard Biehl, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), who are all members of the Community Initiative to Reduce Gun Violence (CIRGV), announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
According to court documents, on November 9, 2015 during routine patrol, Dayton Police attempted to make contact with Chancellor, who was standing in the middle of the street. As they approached, Chancellor fled police and dropped a 9mm firearm he was carrying. At the time he possessed the firearm, he had previously been convicted of felony offenses, including aggravated robbery with a deadly weapon in 2010 and robbery with use of force in 2014.
He pleaded guilty on January 25, 2016 to a Bill of Information charging him with one count of possession of a firearm by a convicted felon.
U.S. Attorney Glassman commended the cooperative investigation by those involved in the Community Initiative to Reduce Gun Violence, as well as Assistant United States Attorney Andrew Hunt, who is representing the United States in this case.
Paroled Second-Degree Murderer Gets 46 Months for Possessing Sawed-Off Shotgun and RifleRead the Press Release
An Ellis Grove, Illinois, man was sentenced to 46 months in prison today for being a felon in possession of a firearm and for possession of an unregistered sawed-off shotgun, announced U.S. Attorney Donald S. Boyce for the Southern District of Illinois.
Jeffrey Robert Pautler, 49, was arrested on May 15, 2016, by Randolph County Sheriff’s deputies following a report of a domestic incident at Pautler’s residence. When deputies arrived, they found Pautler in an agitated state, with bloodied hands and jeans. Pautler threatened the deputies with a shovel and said he wanted to commit suicide. The deputies eventually calmed Pautler down and had him taken to a hospital. Pautler’s live-in girlfriend consented to a search of the residence, and deputies found a sawed-off shotgun and rifle inside the home.
Pautler was later interviewed and admitted that he possessed the firearms, which he had obtained from a neighbor. He claimed that he used the rifle to shoot coyotes, and he said that he had not fired the shotgun. He also admitted that he was a daily user of marijuana, which he claimed relieved pain.
At the time he possessed the firearms, Pautler was on parole for a 1991 second-degree murder conviction from Cape Girardeau County, Missouri, for which he was paroled on October 22, 2014.
The prison sentence was imposed at the U.S. District Court in Benton, Illinois, where Pautler had pleaded guilty to the charges on October 6, 2016. In addition to the term of imprisonment, Pautler was also ordered to serve three years of supervised release after the term of imprisonment, and was ordered to pay a $3,000 fine and a $200 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms, and the Randolph County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Panama City Man Sentenced to 120 Months for Federal Child Pornography CrimesRead the Press Release
PANAMA CITY, FLORIDA – David Michael Hobby Rossner, 36, of Panama City, was sentenced today to 120 months in prison for production, receipt, and distribution of child pornography. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In May 2016, law enforcement officers received information regarding the online sexual exploitation of a 15-year-old girl. An investigation determined that Rossner and the victim were chatting on the social media platform Facebook. Following sexually detailed chats on Facebook, Rossner successfully solicited the 15-year-old girl to take nude images of herself and then directed her to send them to him. Rossner also previously solicited photos from other underage girls online. The investigation also uncovered that Rossner received and distributed child pornography using the social media platform Kik. A forensic review of Rossner’s cellular telephone and online chats revealed dozens of images and videos of child pornography, including very young females under the age of 10. Rossner pled guilty on November 30, 2016.
United States Attorney Christopher P. Canova stated “We will continue to utilize the resources of our office to prosecute anyone that attempts to steal the innocence of a child while hiding in the shadows of the internet.”
"HSI special agents will continue to work tirelessly, with partners like the Bay County Sheriff’s Office, to bring child sexual predators to face justice and ensure those victims who are identified are rescued from this plight," said Susan L. McCormick, special agent I charge of HSI Tampa. "This sentencing is a reminder to those who exploit our most innocent citizens, children: We will identify, investigate and arrest you for committing these horrendous crimes."
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations and the Bay County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Christopher J. Thielemann.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Orlando Man Sentenced to Federal Prison for Theft of Government PropertyRead the Press Release
Florida – U.S. District Judge Carlos E. Mendoza today sentenced Daryl C. Ali, a/k/a Daryl C. Smith, ( 34) to 57 months in federal prison for theft of government property. He was also ordered to pay $135,494.05 in restitution to the IRS.
Ali pleaded guilty on November 21, 2016.
According to court documents, Ali orchestrated a scheme by which he sent the IRS more than 200 personal and business checks between February 2010 and January 2012, totaling over $3 million. Ali claimed that the checks were payment for back taxes owed by him personally and through his business. Shortly after writing the checks Ali would either close the account or there would be insufficient funds to cover the checks. After the IRS received the checks and realized that no taxes were due, the IRS inadvertently issued 12 United States Treasury checks to Ali to settle the credit balance on his account with IRS. These checks totaled over $69,000. Once the IRS became aware of Ali’s scheme in April 2011, they did not issue him any additional fraudulent refunds.
However, after receiving the 12 checks, Ali altered 2 of the checks on 8 separate occasions by changing the check number and amount payable so that he could cash the checks again. This scheme resulted in an additional loss of over $66,000 to the IRS.
This case was investigated by the Internal Revenue Service Criminal Investigation and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
Oregon Woman Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
A Portland, Oregon woman was sentenced to 72 months in prison today for conspiring to file tax returns that claimed more than $1.2 million in fraudulent refunds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Billy J. Williams for the District of Oregon.
According to documents filed with the court, Danyelle Calcagno conspired to file at least 224 individual income tax returns using names and socials security numbers of individuals that she directly obtained or acquired with the assistance of Latisha L. Simmons of Phoenix, Arizona. To fraudulently claim the Earned Income Tax Credit and the Additional Child Tax Credit, Calcagno included in the returns fictitious business income appearing to meet eligibility requirements for those credits. Calcagno filed the fraudulent returns using Internet access from Portland-area hotels to disguise the true source of the filing.Calcagno directed the Internal Revenue Service (IRS) to deposit the claimed refunds into different bank accounts and prepaid debit cards that she could access in order to divide the proceeds of the fraud and make it more difficult for law enforcement to identify her as the filer of the returns. In total, Calcagno and her co-conspirators filed returns seeking at least $1,220,246 in refunds.
In addition to the term of prison imposed by U.S. District Court Judge Robert E. Jones, Calcagno was ordered to serve three years of supervised release and to pay restitution in the amount of $742,754 to the IRS. Calcagno previously pleaded guilty to conspiracy to defraud the government, aggravated identity theft and wire fraud. In October 2015, Simmons was sentenced to serve 39 months in prison for her role in the scheme.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Williams thanked special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorney Leslie A. Goemaat of the Tax Division and Assistant U.S. Attorney Quinn Harrington, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Oregon Woman Receives Federal Prison Sentence for Filing Fraudulent Tax ReturnsRead the Press Release
PORTLAND, Ore. – On Thursday, February 16, 2017, Danyelle Calcagno, 41, of Portland, was sentenced to 72 months in federal prison for conspiring to file tax returns that claimed more than $1.2 million in fraudulent refunds. The sentence was announced jointly by Billy J. Williams, United States Attorney for the District of Oregon, and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to court documents, Calcagno conspired to file at least 224 individual income tax returns using names and social security numbers of individuals she obtained directly or acquired with the assistance of Latisha L. Simmons of Phoenix, Arizona. To fraudulently claim the Earned Income Tax Credit and the Additional Child Tax Credit, Calcagno cited fictitious business income to meet eligibility requirements for the credits. Calcagno filed the fraudulent returns using Internet access from Portland-area hotels to disguise the true source of the filing.
Calcagno directed the Internal Revenue Service (IRS) to deposit the fraudulent refunds into different bank accounts and prepaid debit cards in order to divide the proceeds of the fraud and make it more difficult for law enforcement to identify her as the filer of the returns. In total, Calcagno and her co-conspirator filed returns totaling at least $1,220,246.
In addition to the prison sentence imposed by U.S. District Court Judge Marco A. Hernández, Calcagno was ordered to serve 3 years of supervised release. Calcagno was also ordered to pay restitution in the amount of $742,754 to the IRS, reflecting the total amount received as a result of the fraudulent returns filed. Calcagno previously pleaded guilty to conspiracy to defraud the government, aggravated identity theft and wire fraud. In October 2015, Simmons was sentenced to serve 39 months in prison for her role in the scheme.
The case was investigated by IRS – Criminal Investigation and prosecuted by Quinn Harrington, Assistant United States Attorney for the District of Oregon, and Leslie A. Goemaat, Trial Attorney for the Justice Department’s Tax Division.
Oncology Practice, Doctor and Practice Manager Pay $1.7 Million to Resolve Allegations They Billed Medicare for Illegally Imported DrugsRead the Press Release
NEWARK, N.J. – A Monmouth County doctor, his oncology practice, and his wife, who managed the practice, have agreed to pay the United States $1.7 million to resolve allegations that they illegally imported and used unapproved chemotherapy drugs from foreign distributors and illegally billed Medicare, U.S. Attorney Paul J. Fishman announced today.
“Illegally imported drugs avoid the FDA’s rigorous oversight and manufacturing standards,” U.S. Attorney Fishman said. “Health care providers who import those drugs are exposing their patients to serious risks of harm from contaminated or counterfeit products.”
“Patients receiving cancer treatment drugs should be assured that the medications meet FDA’s standards for safety and quality,” Jeffrey J. Ebersole, special agent in charge, FDA Office of Criminal Investigations’ New York Field Office, said. “OCI will continue its vigilance over the prescription drug supply chain to ensure that the drugs reaching patients comply with federal law, and that those who attempt to circumvent the agency’s oversight will be brought to justice.”
The settlement announced today resolves allegations that The Oncology Practice of Dr. Kenneth D. Nahum, Nahum himself, and his wife, Ann Walsh, of Colts Neck, New Jersey, ordered cancer drugs from a foreign distributor. From April 1, 2010, until January 31, 2011, Walsh allegedly ordered chemotherapy drugs from the foreign distributor for use at the practice, which was owned by Nahum and operated in Howell, New Jersey, and Wall, New Jersey. These drugs had not been approved by FDA for sale in the United States.
Doctors at the practice allegedly injected the drugs into their patients, and the practice then submitted claims to Medicare for reimbursement for the drugs and infusion services. Since Medicare will only reimburse for drugs that have been approved for use in the United States, the practice allegedly violated the federal False Claims Act.
U.S. Attorney Fishman credited special agents of the FDA’s Office of Criminal Investigation, under the direction of Special Agent in Charge Ebersole, and special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s settlement.
The government is represented by Assistant U.S. Attorneys Sarah Wolfe of the U.S. Attorney’s Office in Trenton, and Andrew A. Caffrey III and Charles Graybow of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.32 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Defense counsel:
The Oncology Practice and Nahum: Michael B. Himmel Esq. and Matthew M. Oliver Esq., Roseland, New Jersey
Walsh: Salvatore T. Alfano Esq., Bloomfield, New Jersey
Ohio man pleads guilty to interstate transfer of a firearmRead the Press Release
WHEELING, WEST VIRGINIA – Donald Pyle, 44, of Bridgeport, Ohio, was convicted for illegally selling a gun across state lines, Acting United States Attorney Betsy Steinfeld Jividen, announced.Pyle admitted to transferring, selling and delivering a .22 caliber revolver to an individual in Ohio County, West Virginia on May 23, 2016.
Pyle pled guilty to one count of “Interstate Transfer of a Firearm.” He faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge James E. Seibert presided.
Norwegian Citizen Sentenced to 15 months for Making Threatening Interstate CommunicationsRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Espen Brungodt, 29, of Norway, was sentenced today in U.S. District Court Judge D. Brock Hornby to 15 months in prison for making threatening interstate communications. He pled guilty on September 26, 2016.
According to court records, on August 3, 2016, Brungodt sent an email to the Portland Police Department in which he threatened to kill police officers. The email read
Time for more police to die. We are getting our Sig Sauer MCX .223-caliber rifles ready, and very soon, my partners will head down to Portland Police Department on 109 Middle St. There they will shoot and kill as many police officers as they can. Meanwhile, I will get into position at the top of Cumberland County Parking Garage on 188 Newbury St. I have booby trapped the garage with explosives, so don't go there. Time to take action. More dead cops.
Brungodt sent the threatening email from his Portland hotel room, where he was located and arrested a few hours later.
In pronouncing sentence, Judge Hornby praised the response of the Portland Police Department to Brungodt’s threat and noted that the email constituted a “brutal threat of violence and death that resulted in complete disruption of public services and instilled public fear.” Judge Hornby also noted that the offense was a consequence of Brungodt’s well-documented mental health history and took into consideration his lack of criminal history.
As part of a plea agreement, the U.S. Attorney’s Office has agreed to support any request by the defendant to transfer his sentence under to the International Prisoner Transfer Agreement that exists between the United States and the Kingdom of Norway.
Upon completion of his sentence, Brungodt will be removed from the United States and will be denied re-entry in the future.
This case was investigated by the Federal Bureau of Investigation and the Portland Police Department.Navy Commander Charged as Part of Corrupt “Brotherhood” that Accepted Luxury Travel and Prostitutes from Foreign Defense ContractorRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – February 16, 2017
SAN DIEGO – U.S. Navy Commander Mario Herrera was charged in a complaint unsealed today with accepting prostitutes, luxury travel, elaborate dinners and $1,800 steaks from foreign defense contractor Leonard Glenn Francis in exchange for classified and internal U.S. Navy information.
Herrera, the 12th U.S. Navy official to be charged so far, was arrested in San Antonio, Texas this morning and is scheduled to make his initial appearance in federal court in the Western District of Texas. The United States will seek removal of Herrera to San Diego to face charges.
According to the complaint, Herrera received bribes in return for sending U.S. Navy ship schedules and other proprietary information to Francis, sometimes through U.S. Navy Commander Jose Luis Sanchez, who was among the first officers charged in the massive bribery and fraud case in 2013. Sanchez pleaded guilty to bribery charges in January 2015 and awaits sentencing.
Hererra, Sanchez and other U.S. Navy 7th Fleet officers who were committed to doing the bidding of Francis in exchange for prostitutes and other perks called themselves the “Band of Brothers” and the “Wolf Pack,” the complaint said. In one email, Sanchez asked Francis to send pictures of prostitutes, saying “the brothers are ready to indulge.” A few days later in another email, Sanchez thanked Francis for the prostitutes and hotel accommodations during a port stop in Manila, Philippines: “A warm thank you from the brotherhood…we thoroughly enjoyed ourselves and had a great time.”
The complaint also alleges that Herrera made recommendations within the Navy to benefit Francis’ company, Glenn Defense Marine Asia, including on several occasions manipulating the movement of U.S. Navy ships and diverting them to ports financially lucrative to Francis. GDMA is a multinational corporation and longtime government contractor based in Singapore, which provides hundreds of millions of dollars of “husbanding” services for the U.S. Navy in at least a dozen countries throughout the Pacific. Husbanding involves supplying food, water, fuel, tugboats and fenders, security, transportation, trash and liquid waste removal, and other goods and services to ships and submarines in foreign ports.
So far, a total of 17 named individual defendants have been charged in connection with the GDMA corruption and fraud investigation. Of those, 12 are current or former U.S. Navy officials, including Herrera, Sanchez, Admiral Robert Gilbeau, believed to be the first active-duty U.S. Navy flag officer charged in a federal criminal case; Captain (ret.) Michael Brooks; Captain Daniel Dusek; Commander Michael Misiewicz; Commander Bobby Pitts; Lt. Commander Gentry Debord; Lt. Commander Todd Malaki; Petty Officer First Class Daniel Layug; Naval Criminal Investigative Service Supervisory Special Agent John Beliveau; and Paul Simpkins, a former DoD civilian employee, who oversaw contracting in Singapore.
Gilbeau, Brooks, Dusek, Misiewicz, Sanchez, Debord, Malaki, Layug, Beliveau, and Simpkins have pleaded guilty. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine. On March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; and on April 29, 2016, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to pay $95,000 in restitution to the Navy. Beliveau was sentenced on October 14, 2016 to 12 years in prison and to pay $20 million in restitution; Simpkins was sentenced on December 2, 2016 to 72 months in prison; Gilbeau, Brooks, and Sanchez await sentencing.
Pitts was charged in May 2016 and his case is pending.
Also charged are five GDMA executives – Francis, Alex Wisidagama, Ed Aruffo, Neil Peterson and Linda Raja. Three have pleaded guilty; Wisidagama was sentenced on March 18, 2016 to 63 months and $34.8 million in restitution to the Navy. Francis and Aruffo await sentencing; Peterson and Raja were extradited from Singapore in September 2016 and their cases are pending.
The Defense Criminal Investigative Service, Naval Criminal Investigative Service, and the Defense Contract Audit Agency are investigating. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 17mj0424
Lieutenant Commander Mario Herrera Age 48 Helotes, Texas
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: 5 years in prison, a $250,000 fine,
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Navajo Man from Kirtland Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Gary Begay, 23, an enrolled member of the Navajo Nation who resides in Kirtland, N.M., pled guilty today in federal court in Albuquerque, N.M., to an assault charge. Under the terms of his plea agreement, Begay will be sentenced to nine years in federal prison followed by a term of supervised release to be determined by the court.
Begay was arrested in June 2016, on an indictment charging him with sexual assault and assault resulting in serious bodily injury. According to the indictment, Begay committed the crimes on March 14, 2015, on the Navajo Indian Reservation in San Juan County, N.M.
During today’s proceedings, Begay pled guilty to Count 2 of the indictment charging him with assault resulting in serious bodily injury. In entering the guilty plea, Begay admitted assaulting the victim by striking the victim with his fists and a bottle, breaking the victim’s teeth and causing serious bodily injury to the victim. A sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI, the Navajo Nation Department of Public Safety and the San Juan County Sheriff’s Office. Assistant U.S. Attorney Joseph Spindle is prosecuting the case.
Morris County, New Jersey, Plastic Surgeon Sentenced to Three Years in Prison for Evading Taxes on More Than $5 Million in IncomeRead the Press Release
NEWARK, N.J. – A plastic surgeon with a practice in Basking Ridge, New Jersey, was sentenced today to 36 months in prison for fraudulently diverting millions in corporate earnings for his personal use, costing the United States nearly $3 million in tax revenue between 2006 and 2010, U.S Attorney Paul Fishman announced.
David Evdokimow, 56, of Harding Township, New Jersey, was previously convicted of all eight counts of a superseding indictment charging him with one count of conspiring to defraud the United States, four counts of personal income tax evasion and three counts of corporate tax evasion. He was convicted following three-week trial before U.S. District Judge Noel L. Hillman, who imposed the sentence today in Camden federal court.
According to the superseding indictment and evidence at trial:
Evdokimow ran his medical practice through a corporation called De’Omilia Plastic Surgery P.C. (De’Omilia). He conspired with others to conceal millions of dollars of taxable income from the IRS by forming shell corporations and then having trusted associates open bank accounts for those corporations. Evdokimow then convinced these associates to give him their signatures or signature stamps so that he had full access to the shell company bank accounts while at the same time being able to conceal his connection to those accounts. He and the other conspirators then funneled millions of dollars in De’Omilia income into the bank accounts of the shell corporations and falsely claimed that these transfers were legitimate business expenses. Evdokimow also used bank accounts in the name of De’Omilia to pay his personal expenses, and falsely claimed those were business expenses too.
Evdokimow used the shell corporation and De’Omilia bank accounts to pay for more than $5.8 million in personal expenses, including designer apparel, jewelry, vacations, artwork, and multiple residences, all of which he falsely claimed as business expenses.
Evdokimow also opened accounts at several banks in order to cash checks received directly from patients for professional medical services. Between 2009 and 2011, Evdokimow cashed more than $360,000 in checks from patients, which he failed to report on his federal income tax returns.
Evdokimow was convicted of concealing more than $5.8 million in income from tax years 2006 to 2010. By concealing this income, Evdokimow evaded paying almost $3 million in taxes during that period.
In addition to the prison term, Judge Hillman sentenced Evdokimow to one year of supervised release and fined $96,000. He previously paid the taxes owed.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Paul Murphy and Justin Herring of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: James Kridel Esq., Clifton, New JerseyMichigan Art Dealer Sentenced to More Than 3 Years in Prison for Defrauding Collectors of $1.45 Million Through Sale of Forged ArtworksRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ERIC IAN HORNAK SPOUTZ, a/k/a “Robert Chad Smith,” a/k/a “John Goodman,” a/k/a “James Sinclair,” was sentenced today to 41 months in prison by U.S. District Judge Lewis A. Kaplan for wire fraud charges arising out of his sale of dozens of forged artworks purportedly by renowned American artists such as Willem De Kooning, Franz Kline, and Joan Mitchell.
Manhattan U.S. Attorney Preet Bharara said: “Eric Spoutz made a lucrative ‘career’ selling forged art as originals from American masters like De Kooning, Kline and Mitchell. From creating fake documents to assuming new identities, Spoutz used the full palette of deception to complete his decade-long work of fraud, swindling art collectors out of more than a million dollars. Now, thanks to the dedicated work of the FBI and the prosecutors in my Office, Spoutz will spend time in a federal prison.”
According to the allegations contained in the criminal complaint and information and other documents in the public record, and statements made in court:
Since at least 2006, SPOUTZ engaged in a fraudulent scheme to sell works of art he falsely claimed were by well-known artists, using forged documents to convince buyers of the authenticity of those works. During the course of the scheme, SPOUTZ sold dozens of fraudulent works of art – which he attributed to, among others, Willem De Kooning, Franz Kline, and Joan Mitchell – through various channels, including auction houses and on EBay.
SPOUTZ was publicly accused of selling forged works of art as early as 2005, after which he began selling them under various aliases, particularly “Robert Chad Smith” and “John Goodman.” To deceive his victims into believing the works of art were authentic, SPOUTZ created and provided forged receipts, bills of sale, and letters from deceased attorneys and other individuals.
These documents falsely indicated that SPOUTZ, in the guise of one of his false identities, had inherited or purchased dozens of works by these artists. Despite his efforts to create false histories for the artwork, investigators identified multiple inconsistencies and errors in SPOUTZ’s forged provenance documents. Many of the purported transactions took place before SPOUTZ was born, and the forged letters included nonexistent addresses both for the purported sender and various parties referenced as sources of the artworks. SPOUTZ also consistently used a single distinctive typesetting when forging documents purportedly authored by entirely different art galleries in different decades regarding unrelated transactions. In one instance, investigators located the original letter used by SPOUTZ as a model for one of his forgeries in a collection at a private university, which holds letters from the individual whose identity SPOUTZ used to create a false story of inheritance.
In total, SPOUTZ stole at least $1,450,000 from his victims over the course of a decade of fraudulent art sales.
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In addition to the prison sentence, SPOUTZ, 33, of Mount Clemens, Michigan, was sentenced to three years of supervised release. Judge Kaplan also ordered SPOUTZ to forfeit $1,450,000 in ill-gotten gains and to pay restitution in the amount of $154,100.
Mr. Bharara praised the outstanding investigative work of the FBI’s Art Crime Team.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorney Andrew C. Adams is in charge of the prosecution.
Mexican National Sentenced for Conviction on Federal Methamphetamine Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Juan Merino-Guerrero, 29, was sentenced today in federal court in Albuquerque, N.M., to 40 months in prison for his conviction on methamphetamine trafficking and firearms charges. Merino-Guerrero is a Mexican national who was residing in Santa Fe, N.M., when he was arrested in this case. He will be deported after completing his prison sentence.
The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, and Chief Patrick Gallagher of the Santa Fe Police Department.
Merino-Guerrero was arrested on June 10, 2015, on a criminal complaint charging him with a methamphetamine trafficking offense. According to the criminal complaint, when the Santa Fe Police Department (SFPD) executed a search warrant on Merino-Guerrero’s vehicle on April 30, 2015, they found 226.5 grams of methamphetamine. Merino-Guerrero subsequently was indicted on June 24, 2015, and charged with possession of methamphetamine with intent to distribute and being an alien unlawfully in possession of a firearm.
On Sept. 30, 2015, Merino-Guerrero pled guilty to the indictment and admitted possessing methamphetamine on April 30, 2015, which he intended to distribute to others. Merino-Guerrero also admitted possessing a firearm even though he was in the United States in a non-immigrant status and was not permitted to possess firearms.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the Santa Fe Police Department. Assistant U.S. Attorney Paul Mysliwiec prosecuted the case.
Methamphetamine Trafficker Sentenced to over 15 Years in PrisonRead the Press Release
SAN JOSE – Nicholas Anthony Rodriguez was sentenced to 188 months (15.7 years) in prison for his role in a conspiracy to possess with intent to distribute methamphetamine, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence follows a guilty plea entered July 25, 2016, in which Rodriguez admitted he conspired to and did in fact possess with the intent to distribute methamphetamine.
According to records filed in connection with his plea agreement, Rodriguez, 40, of San Jose, acknowledged that between April and June of 2014, he conspired with others to possess and did possess with intent to distribute 451 grams of actual methamphetamine. In his plea agreement, Rodriguez admitted that, on June 25, 2014, he and another individual were found in possession of 42 grams of actual methamphetamine and $9,215 in cash, as well as a machete, while driving in the San Jose area. Rodriguez further admitted that he and another individual also possessed an additional 409 grams of actual methamphetamine located at the other individual’s home that same day. Rodriguez also acknowledged that, while out of custody on pretrial release on July 28, 2014, he was found in possession of an additional 145 grams of a mixture containing methamphetamine and 2 grams of cocaine.
Rodriguez was indicted by a federal grand jury on July 2, 2014. He was charged with one count of conspiracy to possess with intent to distribute and to distribute methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(b)(1)(C), and one count of possession with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C). Pursuant to his plea agreement, Rodriguez pleaded guilty to both counts in the Indictment.
The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge. In addition to the prison term, Judge Davila sentenced Rodriguez to a 3-year period of supervised release. The defendant has been in federal custody since August 7, 2014, and will begin serving his sentence immediately.
Assistant U.S. Attorney Maia Perez is prosecuting the case. The prosecution is the result of an investigation by the FBI and the Santa Clara County Sheriff’s Office.
Marion County Convicted Felon Charged with Possession of Destructive DevicesRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces the signing of a criminal complaint charging Mark Charles Barnett (48, Ocala) with possession of a firearm (destructive device) affecting commerce by a previously convicted felon. If convicted, he faces a maximum penalty of 10 years in federal prison. Barnett is currently in custody at the Marion County Jail on state charges for violating his terms of probation.
According to the affidavit supporting the criminal complaint, Barnett offered a confidential source (CS) $10,000 to place improvised explosive bombs in Target retail stores along the east coast of the United States. Barnett created at least 10 of the explosive devices, disguised in food-item packaging, which Barnett delivered to the CS on February 9, 2017. Barnett then asked the CS to place the explosive devices on store shelves from New York to Florida. He also provided the CS with a bag of gloves, a mask, and a license plate cover to disguise the CS’s identity from law enforcement.
Barnett theorized that the company’s stock value would plunge after the explosions, allowing him to cheaply acquire shares of Target stock before an eventual rebound in prices. Rather than placing the devices on store shelves, however, the CS surrendered them to authorities. An explosives expert determined that they were capable of causing property damage, serious injury, or death to nearby persons upon detonation. A subsequent search of Barnett’s house by federal agents revealed components consistent with those used to create the explosive devices.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
“The swift work of ATF Special Agents, Explosives Enforcement Officers, and other specialized violent crime resources foiled this individual’s plot that could have caused great harm to the public. Our Federal and State law enforcement partners played a vital role in supporting this investigation, and ATF will continue to work alongside the U.S. Attorney’s Office to bring this case to a successful resolution,” said Special Agent in Charge Daryl McCrary, ATF Tampa Field Division.
“Once FDLE received the information we initiated an investigation. Upon determining the nature of the threat we notified and began working jointly with our local, state and federal partners. The arrest in this case demonstrates the importance of collaboration in keeping our communities safe,” said FDLE Commissioner Rick Swearingen.
“The cooperation between the local, state and federal law enforcement agencies involved in this case was instrumental to quickly identifying this individual and resolving any potential threat to the public,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “The FBI remains dedicated to working with our partners to make our communities safer.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Florida Department of Corrections – Probation and Parole Services, the Federal Bureau of Investigation, the Marion County Sheriff’s Office, and the City of Ocala Police Department. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Man Pleads Guilty to Crime Involving the Renovation of the Former Kossuth County Home and AsbestosRead the Press Release
A North Central Iowa man pled guilty yesterday to failing to make proper report and notification during the renovation of the former Kossuth County Home, which contained asbestos. Gary Christianson, 57, from Algona, Iowa, was convicted of one count of failing to notify and report that he was renovating a building containing asbestos to the Environmental Protection Agency or Iowa Department of Natural Resources.
At the plea hearing, Christianson admitted he was the operator of a renovation of the former Kossuth County Home in Algona, Iowa. The building contained asbestos both on pipes and in floor tiles. Christianson admitted that, from about November 2014 through about January 2015, he failed to notify the EPA and IDNR of his intention to renovate the building as he was required to do.
Sentencing before United States District Court Chief Judge Leonard Strand will be set after a presentence report is prepared. Christianson remains free on bond previously set pending sentencing. Christianson faces a possible maximum sentence of two years’ imprisonment, a $250,000 fine, $100 in special assessments, and a year of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Tim Vavricek and Matt Cole and was investigated by the Environmental Protection Agency-Criminal Investigation Division.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-3055-LTS.
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Man Charged with Drug Dealing Causing DeathRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Theophil Hollis, age 27, of Newark, Delaware, was indicted today for distribution of fentanyl that resulted in the death of another person.
Hollis faces a minimum mandatory sentence of 20 years in prison, a maximum sentence of a lifetime in prison, a fine of $1,000,000, and a minimum of three years of supervised release following a prison sentence. Hollis was also indicted for two additional counts of possession with intent to deliver fentanyl and heroin respectively, for which he faces additional maximum penalties of twenty years in prison, a fine of $1,000,000, and three years of supervised release on each.
According to the Indictment, Hollis distributed a mixture and substance containing a detectable amount of Fentanyl that resulted in the fentanyl-related death of another person on September 7, 2016.
U.S. Attorney Oberly stated, “The U.S. Attorney’s Office in Delaware remains committed to prosecuting drug dealers responsible for overdose deaths. The number of deaths related to fentanyl overdose has reached epidemic-like numbers, accounting for more than one-third of all Delaware’s overdoses in 2016. Those responsible for providing this poison to those addicted to controlled substances, where the evidence exists, should expect to face serious punishment.”
This indictment is the result of an investigation by the DEA Wilmington Resident Office – HIDTA Group 41, the New Castle County Police Department, the Delaware Department of Justice, and the Delaware State Police. Assistant United States Attorney Daniel Logan is prosecuting the case on behalf of the United States.
The charges in the indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.