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16 February 2017
Man Admits Assaulting Sleeping Woman on Flight from Los Angeles to NewarkRead the Press Release
NEWARK, N.J. - An airline passenger today admitted assaulting a female passenger who did not know him aboard a flight from Los Angeles International Airport to Newark Liberty International Airport on July 30, 2016, U.S. Attorney Paul J. Fishman announced.
Veerabhadrarao Kunam, 58, of Visakhapatnam, India, pleaded guilty before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court to an information charging him with assault in the special aircraft jurisdiction of the United States.
According to documents filed in this case and statements made in court, Kunam was seated next to a woman who occupied a middle seat on a Virgin America redeye flight from Los Angeles to Newark on July 29 and 30, 2016. While the plane was in the air, the woman fell asleep. Kunam admitted that while the victim was asleep, he touched her vagina and buttocks without her consent.
Kunam was arrested on July 30, 2016 – the day his flight arrived in Newark – and was taken into federal custody by the FBI.
The federal government has exclusive jurisdiction over all sexual abuse cases that occur on aircraft in flight in the United States.
Under the terms of today’s plea agreement, Kunam will be sentenced to between 30 and 60 days in prison and up to 90 days in an inpatient alcohol treatment center. Sentencing is scheduled for March 22, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and the Port Authority Police Department, under the direction of Superintendent Michael A. Fedorko, with the investigation.
The government is represented by Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Alexander Spiro, New York, New York
Luzerne County Man Pleads Guilty to Conspiracy to Distribute Bath SaltsRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Benussi, III, age 26, of Wilkes-Barre, Pennsylvania, pleaded guilty today before Senior U.S. District Court Judge James M. Munley to participating in a conspiracy to distribute alpha-pvp, commonly known as “bath salts.”
According to United States Attorney Bruce D. Brandler, Benussi admitted to agreeing with others to distribute the drug to customers in the Luzerne County area during 2014 and 2015. The members of the conspiracy obtained the alpha-pvp from suppliers in China.
Benussi also admitted that he and others used force, threats, and intimidation in connection with the drug conspiracy.
Benussi was one of seven people charged by a grand jury in August 2016. That indictment was the fourth wave of arrests connected to alpha-pvp distribution in Luzerne County. In all, 18 people have been charged in the case since July 2013, including a Texas-based supplier of the bath salts. Benussi is the fourteenth defendant to plead guilty in the case.
Judge Munley ordered a pre-sentence investigation to be completed and scheduled sentencing in the case for May 19, 2017. Benussi is detained in prison pending sentencing.
“Homeland Security Investigations and our law enforcement partners will continue to use all resources at our disposal to detect and prevent the importation and distribution of dangerous chemicals and narcotics that continue to ravage our communities. The excellent investigative work in this case conducted by HSI Special Agents, our Task Force Officers from the Pennsylvania State Police, and U.S. Postal Inspection Service Inspectors directly resulted in the today’s guilty plea,” said Marlon V. Miller, special agent in charge of HSI Philadelphia, “These seizures and related arrests are another victory in ridding our communities of these poisons."
The investigation was conducted by Homeland Security Investigations, United States Postal Inspectors, the Drug Enforcement Administration, members of the Pennsylvania State Police, and local police from Luzerne County. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lee County Man Indicted in Tax Refund Fraud SchemeRead the Press Release
Fort Myers, FL – A federal grand jury sitting in Ft. Myers, Florida returned an indictment on Feb. 15, which was unsealed today, charging a Lee County, Florida resident with mail fraud, money laundering, and corruptly endeavoring to impede the administration of the internal revenue laws, announced U.S. Attorney A. Lee Bentley III for the Middle District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Attila Kalmar filed 2007 through 2009 trust returns with the Internal Revenue Service (IRS) in the name of First AK-Open Sec Trust, a nominee entity, seeking more than $480,000 in fraudulent refunds. Kalmar deposited a refund check he received as a result of these filings into a bank account, and then used the proceeds to purchase real property, acquire thousands of dollars in gold coins, and wire money overseas. The indictment further alleges that Kalmar attempted to impede the internal revenue laws by transferring funds between nominee bank accounts and falsely representing to the IRS that an IRS revenue officer was the trustee for First AK-Open Sec Trust.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Kalmar faces a statutory maximum sentence of 20 years in prison for each mail fraud count, 10 years in prison for each money laundering count, and three years in prison for corruptly endeavoring to impede the administration of the internal revenue laws. Kalmar also faces a period of supervised release, restitution, forfeiture, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Bentley commended special agents of IRS–Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Kathryn A. Kimball and William M. Montague of the Tax Division and Assistant U.S. Attorney Michael C. Baggé-Hernández of the Middle District of Florida, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Kewanee Felon Sentenced to Prison for Gun, Drug CrimesRead the Press Release
PEORIA, Ill. – U.S. District Judge James E. Shadid today sentenced Dimitri Miles Lopez, 29, of the 600 block of Cole St., Kewanee, Ill., to serve 200 months (16 years, 8 months) in federal prison for possession of methamphetamine with intent to distribute and possession of a short-barreled shotgun in furtherance of the drug trafficking crime. Lopez has remained in the custody of the U.S. Marshals Service since he was arrested in December 2015.
On Oct. 19, 2016, Lopez pled guilty to the offenses. According to court documents, when agents with the Illinois State Police Blackhawk Area Task Force executed a search warrant on Dec. 2, 2015, at Lopez’s home, officers found a loaded short-barreled 12-gauge shotgun under the living room couch, a .38 revolver, two baggies that contained methamphetamine and $2,000 in Lopez’s pants pocket. At the time, Lopez was a convicted felon, with a 2011 conviction for aggravated battery with a deadly weapon and a 2010 conviction for criminal damage to property.
Lopez was sentenced to 80 months in prison for possession of methamphetamine with intent to distribute; possession of a short-barreled shotgun, and felon in possession of a firearm. In addition, Lopez was ordered to serve 10 years in prison for possession of a firearm in furtherance of a drug trafficking crime, to be served consecutive to the 80-month sentence.
The charges were investigated by the Illinois State Police Blackhawk Area Task Force, the Kewanee Police Department, the Drug Enforcement Administration and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Supervisory Assistant U.S. Attorney John K Mehochko prosecuted the case in the Rock Island Division of the U.S. Attorney’s Office for the Central District of Illinois.
Kansas Agricultural Scientist Convicted in Theft of Engineered RiceRead the Press Release
WASHINGTON – A federal jury returned guilty verdicts today in the case of a Chinese scientist, who was charged with conspiring to steal samples of a variety of rice seeds from a Kansas biopharmaceutical research facility.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting Assistant Attorney General Mary B. McCord of the Justice Department’s National Security Division and U.S. Attorney Tom Beall of the District of Kansas made the announcement.
Weiqiang Zhang, 50, a Chinese national residing in Manhattan, Kansas, was convicted on one count of conspiracy to steal trade secrets, one count of conspiracy to commit interstate transportation of stolen property and one count of interstate transportation of stolen property.
Evidence at trial established that Zhang worked as a rice breeder for Ventria Bioscience in Junction City, Kansas. Ventria develops genetically programmed rice to express recombinant human proteins, which are then extracted for use in the therapeutic and medical fields. Zhang has a master’s degree in agriculture from Shengyang Agricultural University in China and a doctorate degree from Louisiana State University.
According to trial evidence, Zhang acquired without authorization hundreds of rice seeds produced by Ventria and stored them at his residence in Manhattan. The rice seeds have a wide variety of health research applications and were developed to express either human serum albumin, contained in blood, or lactoferrin, an iron-binding protein found, for example, in human milk. Ventria used locked doors with magnetic card readers to restrict access to the temperature-controlled environment where the seeds were stored and processed.
Trial evidence demonstrated that in the summer of 2013, personnel from a crop research institute in China visited Zhang at his home in Manhattan. Zhang drove the visitors to tour facilities in Iowa, Missouri and Ohio. On Aug. 7, 2013, U.S. Customs and Border Protection officers found seeds belonging to Ventria in the luggage of Zhang’s visitors as they prepared to leave the United States for China.
The FBI’s Little Rock, Arkansas, Field Office and Kansas City, Missouri, Field Office, U.S. Customs and Border Protection and the U.S. Attorney’s Office for the Eastern District of Arkansas investigated the case. Trial Attorney Matt Walczewski of the National Security Division, Trial Attorneys Brian Resler and Evan Williams of the Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Scott Rask of the District of Kansas prosecuted the case.
Kansas Agricultural Scientist Convicted in Theft of Engineered RiceRead the Press Release
A federal jury returned guilty verdicts today in the case of a Chinese scientist, who was charged with conspiring to steal samples of a variety of rice seeds from a Kansas biopharmaceutical research facility.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting Assistant Attorney General Mary B. McCord of the Justice Department’s National Security Division and U.S. Attorney Tom Beall of the District of Kansas made the announcement.
Weiqiang Zhang, 50, a Chinese national residing in Manhattan, Kansas, was convicted on one count of conspiracy to steal trade secrets, one count of conspiracy to commit interstate transportation of stolen property and one count of interstate transportation of stolen property.Evidence at trial established that Zhang worked as a rice breeder for Ventria Bioscience in Junction City, Kansas. Ventria develops genetically programmed rice to express recombinant human proteins, which are then extracted for use in the therapeutic and medical fields. Zhang has a master’s degree in agriculture from Shengyang Agricultural University in China and a doctorate degree from Louisiana State University.
According to trial evidence, Zhang acquired without authorization hundreds of rice seeds produced by Ventria and stored them at his residence in Manhattan. The rice seeds have a wide variety of health research applications and were developed to express either human serum albumin, contained in blood, or lactoferrin, an iron-binding protein found, for example, in human milk. Ventria used locked doors with magnetic card readers to restrict access to the temperature-controlled environment where the seeds were stored and processed.
Trial evidence demonstrated that in the summer of 2013, personnel from a crop research institute in China visited Zhang at his home in Manhattan. Zhang drove the visitors to tour facilities in Iowa, Missouri and Ohio. On Aug. 7, 2013, U.S. Customs and Border Protection officers found seeds belonging to Ventria in the luggage of Zhang’s visitors as they prepared to leave the United States for China.
The FBI’s Little Rock, Arkansas, Field Office and Kansas City, Missouri, Field Office, U.S. Customs and Border Protection and the U.S. Attorney’s Office for the Eastern District of Arkansas investigated the case. Trial Attorney Matt Walczewski of the National Security Division, Trial Attorneys Brian Resler and Evan Williams of the Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Scott Rask of the District of Kansas prosecuted the case.
Jury Convicts Woman of Freddie Mac and Veterans Affairs ID TheftRead the Press Release
ALEXANDRIA, Va. – Allise Jones, 29, of Lanham, Maryland, was convicted today by a federal jury on charges of conspiracy to commit identity theft, conspiracy to commit access device fraud, two counts of access device fraud, and two counts of aggravated identity theft.
According to court records and evidence presented at trial, Jones conspired with others to use personally identifiable information (PII) about current and former employees of the Federal Home Loan Mortgage Corporation (Freddie Mac), Department of Veterans Affairs (VA), and others. From October 2012 to April 2014, Jones and her co-conspirators had access to PII from over 100 VA employees and more than 2,000 Freddie Mac employees and affiliates. Jones and her co-conspirators used that information to obtain fraudulent identification documents and credit accounts used to defraud financial institutions, retailers, and others. Jones used the information to obtain credit cards she used to purchase goods and services such as plastic surgery, expensive jewelry, and travel.
Jones faces a maximum penalty of 10 years in prison for each count of access device fraud, 5 years in prison for both conspiracy to commit identity theft and conspiracy to commit access device fraud, and a mandatory minimum sentence of 2 years in prison for each count of aggravated identity theft when sentenced on May 19, 2017. 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; Laura S. Wertheimer, Inspector General for the Federal Housing Finance Agency (FHFA); and Michael J. Missal, Inspector General of the Department of Veterans Affairs (VA), made the announcement after the verdict was accepted by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorneys Lindsay Castanien and Charlie Divine and Assistant U.S. Attorney Jonathan Fahey 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. 1:16-cr-282.
Jefferson County woman found guilty of fraudRead the Press Release
MARTINSBURG, WEST VIRGINIA – Koesoema Wardhani-Foley, 40, of Harpers Ferry, West Virginia, was convicted by a jury today of defrauding the United States, Acting United States Attorney Betsy Steinfeld Jividen, announced.
From January 2005 to April 2015, Wardhani-Foley, knowingly conspired to defraud The United States of Title II disability benefits that totaled more than $100,000. She was found guilty of one count of “Conspiracy to Defraud the United States.”
She 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 Paul T. Camilletti prosecuted the case on behalf of the government. The Social Security Administration and the Office of the Inspector General investigated.
Chief U.S. District Judge Gina M. Groh presided.
Israeli National Indicted and Extradited to Boston on Cocaine Conspiracy and International Money Laundering ChargesRead the Press Release
BOSTON – An Israeli national and a co-conspirator were indicted in U.S. District Court in Boston in connection with a conspiracy to transfer $2.5 million of cocaine from Colombia to Israel via Boston as well as money laundering.
Jalal Altarabeen, a/k/a Glal El Tarbin, a/k/a Jalal Salamah, a/k/a Abu Rasheed, 33, and a co-conspirator were indicted on one count of conspiring to possess with intent to distribute and to distribute more than five kilograms of cocaine and six counts of international money laundering. Altarabeen, who was extradited from Poland and arrived at Boston’s Logan Airport this afternoon, was detained following an initial appearance before U.S. District Court Magistrate Judge M. Page Kelley. Altarabeen and his co-conspirator were previously charged in a federal criminal complaint which was partially unsealed today.
“This case exemplifies the importance of disrupting large-scale, international drug trafficking before the drugs can be distributed. I cannot overstate how important it is that we interdict these large drug shipments, where and when we can,” said Acting United States Attorney William D. Weinreb. “Working with some of the finest undercover agents in the country, the U.S. Attorney’s Office will continue to attack the growing menace of transnational drug organizations.”
“DEA is addressing the threat, both internationally and domestically. We prioritize our resources by identifying and targeting the world’s biggest and most powerful drug traffickers and their organizations,” said Special Agent in Charge of the DEA Michael J. Ferguson. “We are relentlessly pursuing these criminal groups responsible for international money laundering and violations of the Controlled Substance Act and their facilitators at every level and we value and appreciate the work of our Polish counterparts. This investigation demonstrates the fortitude and continued commitment of our federal, state and international law enforcement partners and our strong partnership with the U.S. Attorney’s Office to seek and bring to justice anyone who engages in these crimes.”
“IRS Criminal Investigation is committed to unraveling complex international financial transactions and money laundering schemes. IRS Criminal Investigation is also committed to following the money, wherever it leads,” stated Special Agent in Charge Joel P. Garland of the Internal Revenue Service Criminal Investigation’s Boston Field Office.
According to court documents, from October 2015 to April 20, 2016, Altarabeen and his co-conspirator conspired in Boston, Colombia, Poland, and elsewhere to distribute 50 kilograms of cocaine and launder money internationally. Altarabeen and his co-conspirator allegedly negotiated to buy 50 kilograms of cocaine from an undercover officer posing as a drug trafficker. Altarabeen and his co-conspirator agreed to pay $50,000 per kilogram for a total purchase price of $2.5 million to have the cocaine delivered in Israel. The undercover officer told the defendants that the cocaine would be transported from Colombia to Boston and from Boston to Beersheba, Israel, where the defendants expected to take delivery of the cocaine. Altarabeen agreed to make an advance payment of nearly $1 million to cover transportation costs and sent wire transfers from Turkey totaling $999,972 to an undercover bank account in Boston. The undercover officer and Altarabeen agreed that Altarabeen would pay the balance of $1.5 million after the receipt and sale of the 50 kilograms of cocaine.
The undercover officer’s relationship with the co-conspirator began in 2008 and included a meeting in Nicosia, Cyprus. In October 2015, the co-conspirator told the undercover officer about an associate who was interested in purchasing large quantities of cocaine. Eventually, the co-conspirator facilitated an introduction of the undercover officer to Altarabeen.
Over several months, the undercover officer and the defendants spoke to one another by telephone, WhatsApp, video Skype call and in person. The defendants contacted the undercover officer using telephone numbers from Cyprus, Jordan, Israel, Palestine and Colombia. The defendants also discussed the drug transaction with the undercover officer while in Bogota, Colombia, on October 14, 2015 and February 9, 2016.
Altarabeen allegedly arranged six wire transfer deposits in February 2016 into a Boston-based undercover bank account totaling $999,972. The co-conspirator sent the undercover officer a copy of the deposit receipt for each wire transfer via WhatsApp. All of the wire transfers originated from a Turkish bank.
The drug trafficking statute provides for a minimum mandatory sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million on the drug counts. The money laundering statute provides for up to 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $500,000 or twice the value of the property involved in the offense. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Weinreb, DEA SAC Ferguson and IRS-CI SAC Garland made the announcement today. Assistant U.S. Attorney Linda M. Ricci of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Inmate Charged with Mailing Threats, Powder to Federal OfficialsRead the Press Release
CINCINNATI – A federal grand jury has charged Rodney D. Cydrus, 47, formerly of Chillicothe, with charges related to threatening United States judges and federal law enforcement officials in an indictment returned in Cincinnati. Cydrus is currently an inmate at Lebanon Correctional Institution.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), and Mark Porter, Special Agent in Charge, U.S. Secret Service, announced the indictment returned yesterday afternoon.
The indictment alleges that on five separate occasions, from January 17 through January 31, 2017, Cydrus mailed letters threatening to injure numerous government officials, including the President of the United States, federal judges, the FBI and the Federal Public Defender’s Office. Four of the letters were addressed to the FBI and one letter was addressed to the Federal Public Defender’s Office. In addition, two of the letters included a powdered substance as part of the threat, although the powder was determined to be non-toxic.
Mailing threatening communications is a crime punishable by up to 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and U.S. Secret Service, and Assistant United States Attorney Timothy S. Mangan, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Indictment: Running Store Employee Stole Merchandise Worth $200,000+Read the Press Release
WICHITA, KAN. – A federal grand jury returned an indictment Wednesday charging an Olathe man who worked at a store catering to runners with stealing more than $250,000 in merchandise, U.S. Attorney Tom Beall said.
Craig W. Sullivan, 41, Olathe, Kan., is charged with 10 counts of wire fraud and three counts of mail fraud. The indictment alleges the crimes occurred while Sullivan worked for Garry Gribble’s Running Sports, which has five locations in the Kansas City area. Sullivan oversaw merchandise arriving at the main store in Overland Park. He was responsible for distributing merchandise to the other locations.
The indictment alleges Sullivan stole merchandise -- mainly Garmin GPS running watches – and sold them to an individual in California who operated an online business on eBay. Sullivan shipped the stolen merchandise to California via the U.S. Postal Service and received payment via PayPal. The indictment alleges he received 51 payments totaling about $275,780.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on each count. The U.S. Postal Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Other Indictments
Andre U. Randle, 36, who is in custody, is charged with one count of bank robbery. The indictment alleges that on Feb. 1, 2017, he robbed the U.S. Bank at 10959 Parallel Parkway, Kansas City, Kan. According to court documents, he gave a clerk a note saying, “I have 2 guns. Don’t make me use them,” before leaving the bank with stolen cash in a purple pillow case. Officers of the Kansas City, Kan., Police Department stopped his car in the 6900 block of Troop and arrested him.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. The Kansas City, Kan., Police Department and the FBI investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Brandon V. Wells, 22, Wichita, Kan., is charged with executing a series of commercial robberies in Wichita. The charges include:
Count one: Robbing Circle K at 1250 S. Rock on Jan. 27, 2017.
Count two: Robbing O’Reilly Auto Parts at 4818 E. Lincoln on Jan. 28, 2017.
Count three: Robbing O’Reilly Auto Parts at 4635 S. Broadway on Jan. 30, 2017.
Count four: Robbing O’Reilly Auto Parts at 4130 W. Central on Feb. 4, 2017.
Count five: Robbing Auto Zone at 3320 N. Rock on Feb. 5, 2017.
Count six: Robbing O’Reilly Auto Parts at 3109 E. Pawnee on Feb. 6, 2017.
Count seven: Brandishing a firearm during the Feb. 6, 2017, robber at O’Reilly Auto Parts at 3109 E. Pawnee.
Count eight: Robbing O’Reilly Auto Parts at 4818 E. Lincoln on Feb. 6, 2017.
Count nine: Brandishing a firearm during the Feb. 6, 2017, robbery at O’Reilly Auto Parts at 4818 E. Lincoln.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on each robbery count, and not less than seven years and a fine up to $250,000 on each count of brandishing a firearm. The Wichita Police Department, the FBI and the Safe Streets Task Force investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Luis A. Mendez-Aguirre, 35, San Elizareo, Texas, is charged with one count of possession with intent to distribute cocaine. The crime is alleged to have occurred Feb. 3, 2017, in Sedgwick County, Kan.
If convicted, he faces up 20 years in federal prison and a fine up to $1 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Idaho Man Charged in Church Arson CaseRead the Press Release
Shane Rucker, 33, of Bonners Ferry, Idaho, was arrested today in Bonners Ferry on a two-count federal indictment in the District of Idaho charging him with destruction of religious property and using a fire to damage or destroy religious property. A federal grand jury sitting in Boise returned the indictment on Feb. 15, 2017. Rucker will make his initial appearance on Friday, Feb. 17, 2017 at the federal courthouse in Coeur d’Alene, Idaho.
According to allegations in the indictment, on April 21, 2016, Rucker set fire to St. Ann’s Catholic Church in Bonners Ferry, Idaho, because of the religious character of the property, in violation of the Church Arson Prevention Act. The Church was completely destroyed as a result of the fire.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of destroying the church because of its religious character Rucker faces a maximum sentence of 20 years in prison. Using a fire to destroy the church carries a mandatory 10-year sentence that must run consecutive to any other sentence.
The case is being investigated by the Bonners Ferry Police Department, the Idaho State Fire Marshal’s Office, the Boundary County Sheriff’s Office Fire Investigation Team; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Federal Bureau of Investigation. The case is being prosecuted by U.S. Attorney Wendy Olson and Assistant U.S. Attorney Traci Whelan of the District of Idaho and Trial Attorney Angie Cha of the Civil Rights Division.
Husband and Wife Plead Guilty to Armed RobberyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Jacorian Rashawn Brown (24) and Jessica Duenas Nicholas (45), both of Brandon, today pleaded guilty to conspiracy and armed robbery. Brown also pleaded guilty to brandishing a firearm during an armed robbery. He faces a maximum penalty of life in federal prison, and Nicholas faces a maximum penalty of 20 years’ imprisonment. A sentencing date has not yet been set.
According to the plea agreements, on July 9, 2016, Brown and Nicholas robbed the Murphy USA gas station in Wimauma of more than $10,000. On July 19, 2016, the couple attempted to rob the Murphy USA gas station in Gibsonton but were unsuccessful. On July 23, 2016, Brown and Nicholas returned to the Wimauma gas station to attempt another robbery. However, they were arrested before the robbery could take place. Investigators recovered two semi-automatic pistols and nearly 100 rounds of ammunition from inside their vehicle.
This case was investigated by the Hillsborough County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Carlton C. Gammons.
Houston Man Guilty in Beaumont IH-10 Drug TraffickingRead the Press Release
BEAUMONT, Texas – A 27-year-old Houston man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Hugo Alejandro Garcia pleaded guilty to conspiracy to possess with intent to distribute cocaine today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, on Oct. 27, 2016, law enforcement officers pulled over Garcia on Interstate 10 eastbound in Beaumont for a traffic violation. Garcia was extremely nervous and during questioning he provided officers with inconsistencies as to his travel plans. Garcia gave consent to search the vehicle which resulted in officers discovering four bundles wrapped in black electrical tape and concealed under the carpet in the trunk. Garcia admitted to transporting narcotics and stated he was on his way to Louisiana with the drugs. The bundles contained four kilograms of cocaine. Garcia was indicted by a federal grand jury on Nov. 2, 2016.
Under federal statutes, Garcia faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Drug Enforcement Administration and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Christopher T. Rapp.
Hershey Man Indicted on Bankruptcy Fraud ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael J. Jackson, age 57, of Hershey, Pennsylvania, was indicted on February 15, 2017, by a federal grand jury on wire fraud, bankruptcy fraud, false bankruptcy oaths and claims, and aggravated identity theft charges.
The indictment was unsealed today following Jackson’s initial appearance before United States Magistrate Judge Susan E. Schwab. Jackson was ordered detained pending his detention hearing scheduled for February 17, 2017.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Jackson perpetrated a scheme to defraud his creditors, the Bankruptcy Court for the Middle District of Pennsylvania, and his wife between 2009 and 2017, by filing seven Chapter 13 and 11 bankruptcy petitions, five of which were filed under Jackson’s name and two of which were filed under his wife’s name without her knowledge, information or consent. The indictment also alleges the petitions contained false information regarding Jackson’s income, his assets, and his employment, and were merely filed in order to postpone a Sheriff’s Sale of his Hershey residence.
The case was investigated by the Harrisburg Offices of the Internal Revenue Service, Criminal Investigations and the Federal Bureau of Investigation. Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.
Wire Fraud is punishable by up to 20 years’ imprisonment. Bankruptcy Fraud and False Statements in Bankruptcy matters both carry a five-year statutory maximum.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court a term of supervised release following imprisonment, and a fine.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Guilford Man Sentenced to Three Years for Distributing HeroinRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Joshua Bickmore, 30, of Guilford, Maine was sentenced yesterday in U.S. District Court by Judge John A. Woodcock, Jr. to three years in prison and three years of supervised release for distributing heroin. He pleaded guilty to this charge on July 12, 2016.
According to court records, on August 13, 2015, Bickmore met with an undercover law enforcement officer and a confidential informant at the Cambridge, Maine General Store to sell heroin. Bickmore sold thirteen wax baggies of heroin in exchange for $390.
At sentencing, when describing Bickmore’s involvement with heroin, Judge Woodcock said that, “it doesn’t have to be this way” and that it was time for Bickmore “to man-up” and pursue legitimate employment.
The investigation was conducted by the U.S. Drug Enforcement Administration and the Greenville Police Department.
Guilford Man Sentenced to Three Years for Distributing HeroinRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Joshua Bickmore, 30, of Guilford, Maine was sentenced yesterday in U.S. District Court by Judge John A. Woodcock, Jr. to three years in prison and three years of supervised release for distributing heroin. He pleaded guilty to this charge on July 12, 2016.
According to court records, on August 13, 2015, Bickmore met with an undercover law enforcement officer and a confidential informant at the Cambridge, Maine General Store to sell heroin. Bickmore sold thirteen wax baggies of heroin in exchange for $390.
At sentencing, when describing Bickmore’s involvement with heroin, Judge Woodcock said that, “it doesn’t have to be this way” and that it was time for Bickmore “to man-up” and pursue legitimate employment.
The investigation was conducted by the U.S. Drug Enforcement Administration and the Greenville Police Department.
Gang Associate Sentenced to 25 Years for 2010 MurderRead the Press Release
NEWPORT NEWS, Va. – Chadrick Lard, 26, of Newport News was sentenced today to 25 years in prison followed by five years of supervised release for his role in a 2010 Newport News robbery that ended with a murder.
Lard pleaded guilty on Dec. 30, 2015. According to court documents, Lard was an associate of the Black P-Stones gang in Newport News. As part of a gang initiation, Lard and three others went to a home in Newport News intending to rob its occupant of drugs and money. During the course of the robbery, one of Lard’s associates forced the occupant of the home to the ground and shot him in the head, killing him. Following the murder, Lard and his associates fled the scene and divided the proceeds of the robbery. The leader of the Black P-Stones, Michael Hopson, was convicted of racketeering charges including two murders and four attempted murders, on Dec. 5, 2016. Hopson is scheduled to be sentenced on March 10.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Eric M. Hurt and Trial Attorney Marianne Shelvey of the Organized Crime and Gang Section 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. 4:13-cr-96.
Fort Worth Man Sentenced to 50 Years in Federal Prison for Producing, Transporting and Possessing Child PornographyRead the Press Release
FORT WORTH, Texas —Pedro Jose Meza, 35, of Fort Worth, Texas, was sentenced today by U.S. District Judge Terry R. Means to serve a total of 50 years in federal prison and a lifetime of supervised release, following his guilty plea to two child pornography offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Meza has been in custody since his arrest on a related federal criminal complaint in early November 2015. He pleaded guilty in July 2016 to one count of production of child pornography and one count of distribution of child pornography.
According to the factual resume filed in the case, in June 2014 Meza knowingly did employ, use, persuade and induce a six-year-old minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. Meza produced the image at a Fort Worth home he was living at with the minor child and her mother.
On a separate occasion in October 2015 Meza used the internet and the Kik messaging application to distribute a one minute, thirty-one second video of an adult male engaging in sexual intercourse with a prepubescent female.
Meza was approached at his work in Fort Worth, Texas by Homeland Security Investigations agents on November 5, 2015 in connection with a child pornography investigation. Meza acknowledged that he had traded child pornography using Kik messaging.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Aisha Saleem prosecuted the case.
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Former Systems Administrator Sentenced to Prison for Hacking into Industrial Facility Computer SystemRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that BRIAN P. JOHNSON, age 44, of Baton Rouge, Louisiana, has been sentenced to serve thirty-four (34) months in federal prison, as a result of his conviction for hacking into the computer system of an industrial facility to disrupt and damage its operations, in violation of Title 18, United States Code, Section 1030(a)(5)(A). Chief U.S. District Judge Brian A. Jackson ordered JOHNSON to pay restitution to Georgia-Pacific in the amount of $1,134,828, pay a $100 special assessment to the United States, and forfeit a variety of computer devices and accessories used in connection with his crime. Additionally, following his release from prison, JOHNSON will be required to serve a 3-year term of supervised release.
Georgia-Pacific is one of the world’s largest manufacturers of paper, pulp, tissue, packaging, building materials, and related chemicals. The company is headquartered in Atlanta, Georgia, and employs approximately 35,000 people in more than 200 facilities nationwide. One of Georgia-Pacific’s facilities is located in Port Hudson, Louisiana, and the Port Hudson mill operates 24 hours a day, making paper, tissue, and paper towels. JOHNSON worked for many years as the facility’s information technology (IT) specialist and systems administrator. On February 14, 2014, JOHNSON’s employment was terminated, and he was escorted from the mill. After being terminated, however, JOHNSON remotely accessed the plant’s computer system and intentionally transmitted code and commands which resulted in significant damage to Georgia-Pacific and its operations.
On February 27, 2014, the Federal Bureau of Investigation executed a search warrant at JOHNSON’s home in Zachary, Louisiana, and observed a virtual private network connection to Georgia-Pacific on JOHNSON’s computer screen. Agents lawfully seized JOHNSON’s computer, pursuant to the warrant, and a subsequent forensic examination of the computer revealed logs of JOHNSON’s February 27, 2014 intrusion into the facility’s system.
On June 25, 2015, a federal grand jury returned an indictment charging JOHNSON with intentionally damaging protected computers at Georgia-Pacific, from February 14, 2014 through February 27, 2014.
On February 4, 2016, JOHNSON pled guilty to the indictment before Chief Judge Jackson. In connection with his guilty plea, JOHNSON admitted that he had accessed the plant’s computer system and intentionally transmitted harmful code and commands to the system.
On February 15, 2017, JOHNSON appeared for sentencing. After hearing arguments from both parties, Chief Judge Jackson determined that the evidence established that JOHNSON had not only committed the February 27, 2014 intrusion, but in fact a series of intrusions, beginning shortly after his termination on February 14, 2014 and continuing through the federal search. Chief Judge Jackson also determined that JOHNSON’s criminal conduct caused a loss to Georgia-Pacific of more than $1.1 million, and JOHNSON was ordered to pay restitution for the full amount of the victim’s damages. JOHNSON was ordered to surrender to the U.S. Bureau of Prisons to begin serving his nearly three-year prison term next month.
U.S. Attorney Green stated: “This case is a powerful reminder of the very real threat and danger that businesses and individuals face from cyberattacks and other cyber-related criminal activity. Thanks to the victim’s quick response and cooperation with our office and the FBI—as well as the excellent work by the prosecutors and law enforcement agents assigned to this matter—we were able to stop Mr. Johnson’s malicious attacks and bring him to justice. The best defense to these sorts of attacks includes security, training, and continued vigilance at the facility level. However, through my office’s new Cyber Security Initiative, we have partnered with numerous federal, state, and local law enforcement agencies who have the skills and expertise to confront these threats in our district, and we will aggressively work with our partners to pursue federal criminal prosecutions whenever appropriate.”
FBI New Orleans Special Agent in Charge (SAC) Jeffrey Sallet stated: “I would like to commend the men and women of the FBI's New Orleans Division’s Cyber Squad Task Force and the U.S. Attorney’s Office in Baton Rouge for their outstanding efforts in investigating this case to the fullest extent and bringing the responsible parties to justice. Combatting cyber crime is among the FBI’s top priorities due to its evolving nature and the direct threat it poses to Louisiana infrastructure.”
United States v. Brian Johnson was investigated by the Federal Bureau of Investigation’s Cybercrimes Squad. The case is being prosecuted by Assistant U.S. Attorney M. Patricia Jones, who serves as the office’s Appellate Chief, and Assistant U.S. Attorney Ryan Crosswell.
The U.S. Attorney’s Office—Cyber Security Initiative
In early 2016, the U.S. Attorney’s Office for the Middle District of Louisiana launched a new Cyber Security Initiative. The initiative brings together resources from the U.S. Department of Justice’s Computer Crimes and Intellectual Property Section, the Federal Bureau of Investigation’s Cyber Division, the U.S. Secret Service, the U.S. Department of Homeland Security, the U.S. Department of Treasury (including both the Internal Revenue Service’s Criminal Investigations Division and the Treasury Inspector General for Tax Administration), the U.S. Department of Education, the Louisiana State Police, the East Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish District Attorney’s Office, and other federal, state, and local agencies.
Through a newly-created law enforcement working group, the initiative assembles agents and other personnel from across Louisiana and the region to assess and share information about incoming reports of cyber incidents affecting the Middle District, and evaluate law enforcement’s response. The initiative also includes a significant investment in outreach aimed at fostering greater collaboration between private industry and law enforcement and encouraging immediate reporting of cyber incidents. Team members routinely contribute to InfraGard Louisiana, a partnership between the FBI and the private sector that works to protect critical infrastructure.
For more information about the U.S. Attorney’s Office’s Cyber Security Initiative, please contact Assistant United States Attorney Alan Stevens, who serves as a Deputy Criminal Chief within the USAO, or Assistant U.S. Attorney Ryan Rezaei, at (225) 389-0443.
For more information about InfraGard Louisiana, please contact FBI Special Agent Corey Harris at (504) 816-3145, or InfraGard Louisiana President Lester J. Millet, III, at (985) 210-7518.
To submit any information to the FBI concerning suspected internet-facilitated criminal activity, please visit the website for the FBI’s Internet Crime Complaint Center (IC3), www.ic3.gov.
Former St. Croix Resident Indicted on Federal Program Fraud, Money Laundering, and Tax Related ChargesRead the Press Release
St. Thomas, USVI – A Virgin Islands grand jury, on January 12, 2017, returned a six-count indictment against Celeste P. Bermudez, 41, of Methuen, Massachusetts, charging her with theft of federal program funds, money laundering, and making and subscribing a false income tax return, United States Attorney Ronald W. Sharpe announced. Bermudez made her initial appearance on January 15, 2017, and was arraigned on the charges, before U.S. Magistrate Judge Ruth Miller. Judge Miller set bail conditions for Bermudez, who is on release pending trial.
According to the indictment, Bermudez was the finance director of the Virgin Islands Community AIDS Resource & Education, Inc. (VICARE), a nonprofit organization dedicated to promoting HIV-AIDS education and support services to individuals living with HIV-AIDS. In 2011, the U.S. Department of Housing and Urban Development (HUD) approved approximately $1.3 million in grant funds to VICARE. During the period July 1, 2011, through June 30, 2014, the Department of Health and Human Services (HHS) Centers for Disease Control and Prevention (CDC) awarded VICARE approximately $627,365 in grant funds. Bermudez, is charged with embezzling approximately $293,710 during the period January 2012 through December 2013. The indictment also charges Bermudez with engaging in monetary transactions in financial institutions with the embezzled funds, as well as making and subscribing a false 2011 income tax return.
If convicted, Bermudez faces maximum sentences of ten years in prison and a $250,000 fine for the federal program fraud and money laundering counts, and not more than three years in prison or a $5,000 fine for the tax count.
The case was investigated by HUD Office of Inspector General, HHS Office of Inspector General, and the Internal Revenue Service, Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Kim L. Chisholm and Meredith Edwards.
United States Attorney Sharpe emphasized that an indictment is a merely a formal charging document and not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Former Resident of Whidbey Island, Washington Sentenced to Eight Years in Prison for Possessing Images of Child RapeRead the Press Release
A former resident of Clinton, Washington was sentenced today in U.S. District Court in Seattle to eight years in prison and 15 years of supervised release for receipt and possession of child pornography, announced U.S. Attorney Annette L. Hayes. ERIC EUGENE LOBDELL, 48, was arrested in November 2015, following an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigation. LOBDELL’s computer was identified in the investigation of peer-to-peer file sharing involving images of child rape. LOBDELL’s electronic devices were found to contain more than 100,000 images of child pornography including some images LOBDELL made with a hidden camera of young girls changing clothes and using the bathroom. At the sentencing hearing U.S. District Judge Thomas S. Zilly called the conduct “really outrageous behavior by this defendant.”
According to records filed in the case, LOBDELL came to the attention of law enforcement in early 2015 when investigators uncovered child pornography on a peer to peer file sharing network. In June 2015, the investigation resulted in court authorized search warrants being executed at the home where LOBDELL was staying on Whidbey Island, Washington. Investigators seized multiple electronic devices and discovered thousands of images of child pornography. Some of the images were known series of child victims. Others were images LOBDELL made using cameras hidden in bathrooms of homes or hotels where he had lived or traveled. In one instance reviewed by law enforcement LOBDELL adjusts a small child’s clothing to photograph the child for his sexual gratification.
One of the victims speaking in court today said she was “devastated and heartbroken” when she learned someone she trusted had violated that trust. “The person I was meant to be was taken from me… I feel broken, violated and ashamed.”
Investigators believe LOBDELL did not share the photos he made of local victims over the internet, but Judge Zilly made note of the other victims whose images LOBDELL obtained via file sharing saying, “Those victims will be victims forever, because it is on the internet and will be forever.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Internet Crimes Against Children Task Force including detectives from the Bellingham Police Department.
The case was prosecuted by Assistant United States Attorney Matthew Hampton.
Former Prison Supervisor Convicted of FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a former Colonel at the Louisiana State Penitentiary, SHIRLEY WHITTINGTON, age 46, of St. Francisville, Louisiana, has been convicted of wire fraud. Yesterday, WHITTINGTON pled guilty before U.S. District Judge James J. Brady to engaging in wire fraud, in violation of Title 18, United States Code, Section 1343.
The guilty plea arises from WHITTINGTON’s time as Treasurer of the Angola Employees Recreation Committee (“AERC”), a limited liability company formed to enrich its members through recreational activities and community events. The AERC raised funds from various sources and its finances were subject to internal audits and review.
In connection with her guilty plea hearing, WHITTINGTON admitted to a factual summary which detailed her wire fraud scheme. According to the factual summary, WHITTINGTON served as Treasurer of the AERC from February of 2006 thought June of 2016. Her duties included, among other things, depositing AERC funds, purchasing items and services, approving purchases, check writing, preparing financial statements, account reconciliation, and working with an external accountant for any audit or annual tax filings. In order to facilitate her financial oversight and reporting of AERC funds and purchases, WHITTINGTON maintained a QuickBooks accounting log. She also had signature authority for AERC bank accounts and was issued AERC debit cards.
Between March of 2009 and May of 2016, as part of her scheme to defraud and to obtain money from the AERC, WHITTINGTON diverted organization funds for her own benefit and for the benefit of her associates through online and local retailer purchases, ATM withdrawals, cashback and countercheck transactions, and by removing cash from concession sale deposits. Throughout the course of her scheme, she fraudulently diverted thousands of dollars in AERC funds.
In order to conceal her diversion of AERC funds, WHITTINGTON fraudulently omitted vendor names and designated certain purchases as “misc” or “misc. business expenses” in relevant portions of the AERC QuickBooks log. These material misrepresentations served to disguise her use of AERC funds for her own personal benefit or the benefit of her associates and to create the false impression that these transactions were legitimate business expenses of the AERC.
U.S. Attorney Green stated, “Public corruption has been and will continue to be a top priority for this office. I greatly appreciate the work of the FBI, the Louisiana Legislative Auditor’s Office, the Louisiana Attorney General’s Office, and the other state and local agencies who assisted on this important matter. A unified effort is essential to battling corruption.”
FBI Special Agent in Charge Jeffrey Sallet stated, “Citizens expect that every public official will fulfill their obligations with integrity and respect. The FBI will investigate any public officials who attempt to enrich themselves unjustly by profiting from their position and abusing the trust that others have placed in them.”
Louisiana Legislative Auditor Daryl Purpera stated, “Louisiana's taxpayers want -- and deserve -- public officials and employees who do not use their positions to serve their own interests. We take public corruption very seriously and will continue to work with the U.S. Attorney's Office, the FBI, and state and local law enforcement agencies to stop the misuse of public funds in Louisiana.”
The matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana and the Baton Rouge Office of the Federal Bureau of Investigation, with substantial assistance provided by investigative auditors from the Louisiana Legislative Auditor’s Office. The matter is being prosecuted by Assistant United States Attorney Chris Dippel, who serves as a Deputy Chief of the Criminal Division.
Former Oklahoma Jail Superintendant and Assistant Superintendant Sentenced for Using Excessive ForceRead the Press Release
MUSKOGEE, OKLAHOMA – Raymond A. Barnes, 46, and Christopher A. Brown, 35, the former jail superintendent and assistant jail superintendent, respectively, of the Muskogee County Jail (MCJ), were resentenced in federal court on Feb 15, 2017, on multiple counts of civil rights offenses related to allegations of excessive force on inmates at MCJ on or between August 2009 and May 2011. Brown was also convicted of making material false statements to the FBI. Barnes was sentenced to two years in prison followed by three years of supervised release, and Brown was sentenced to 12 months in prison followed by three years of supervised release.
On Feb. 25, 2014, a federal jury convicted both Barnes and Brown of conspiring to violate the rights of inmates housed at MCJ by assaulting inmates themselves or by directing other jailers employed by MCJ to do so. Specifically, the defendants did or caused the following to be done: unjustifiably strike, assault, harm and physically punish inmates at MCJ who were restrained, compliant and not posing a physical threat; organize “meet and greets,” whereby jailers would scare, punish and harm incoming inmates from neighboring counties by throwing and slamming the handcuffed inmates to the ground upon their arrival at MCJ; threaten to fire MCJ employees if they reported abusive behavior directly to the sheriff or to outside law enforcement authorities; require and encourage MCJ jailers to write incident reports that falsely justified uses of force and contained misleading or inaccurate accounts of what had occurred when force was used; and perpetuate an environment within MCJ that allowed unlawful beatings and assaults against inmates to continue indefinitely and without consequence.
Both defendants were also found guilty of violating the rights of an inmate identified as J.R. when both defendants slammed and threw J.R. head-first to the ground while he was handcuffed. Barnes was additionally convicted of violating the rights of a second inmate, G.T., for similar conduct. Brown was acquitted of violating the rights of G.T.
In addition, Brown was convicted of one count of making material false statements to the FBI. Brown falsely claimed that, during meet and greets, the incoming inmate was ordered out of the transport vehicle and then “gently placed” on the ground. But in fact, Brown knew at the time of his statement to the FBI that during these meet and greets the MCJ jailers routinely threw and slammed inmates to the ground even though the inmates were restrained and posed no physical threat.
“Corrections officers who use excessive force against inmates in their custody are violating the Constitution and their sworn oaths to uphold it,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “This department will vigorously enforce the civil rights laws of our nation.”
This case was investigated by the Muskogee Resident Agency of the Oklahoma City Division of the FBI and prosecuted by Special Litigation Counsel Fara Gold and Trial Attorney Dana Mulhauser of the Civil Rights Division.
Florida Man Sentenced for Hacking, Spamming Scheme that Used Stolen Email AccountsRead the Press Release
A Florida man was sentenced for his role in a computer hacking and identity theft scheme that hijacked customer email accounts to send bulk unsolicited or “spam” emails and generated more than $1.3 million in illegal profits, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey.
Timothy Livingston, 31, of Boca Raton, Florida, was sentenced Tuesday to serve 48 months in prison before U.S. District Judge William J. Martini of the District of New Jersey. Livingston previously pleaded guilty to one count each of conspiracy to commit fraud in connection with computers and access devices, conspiracy to commit fraud in connection with electronic mail and aggravated identity theft.
According to admissions made in connection with his plea agreement, beginning as early as 2011, Livingston operated A Whole Lot of Nothing LLC – a business that specialized in sending spam emails on behalf of its clients. Livingston’s clients included legitimate businesses, such as insurance companies that wished to send bulk emails to advertise their businesses, as well as illegal entities, such as online pharmacies that sold narcotics without prescriptions.
As part of his plea, Livingston admitted that beginning in January 2012, he solicited Tomasz Chmielarz to write computer programs that would send spam in a manner that concealed the true origin of the email and bypassed filters. Livingston also used proxy servers and botnets to remain anonymous and evade spam blocking techniques. Livingston further admitted that he hacked into individual email accounts and utilized corporate mail servers to further his spam campaigns, which enabled him to send out massive amounts of spam without identifying himself as the sender.
The FBI’s Cyber Division investigated the case. Senior Trial Attorney William Hall Jr. of the Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Daniel Shapiro of the District of New Jersey’s Computer Hacking and Intellectual Property Section of the Economic Crimes Unit, and Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture-Money Laundering Unit prosecuted the case.
Florida Man Sentenced to Four Years in Prison for Hacking, Spamming Scheme That Used Stolen Email AccountsRead the Press Release
NEWARK, N.J. – A Boca Raton, Florida man was sentenced to 48 months in prison for his role in a computer hacking and identity theft scheme that hijacked customer email accounts to send bulk unsolicited or “spam” emails and generated more than $1.3 million in illegal profits, New Jersey U.S. Attorney Paul J. Fishman and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division announced today.
Timothy Livingston, 31, previously pleaded guilty before U.S. District Judge William J. Martini to one count each of conspiracy to commit fraud in connection with computers and access devices, conspiracy to commit fraud in connection with electronic mail, and aggravated identity theft. Judge Martini imposed the sentence Feb. 14, 2017 in Newark federal court.
According to documents filed in this case and statements made in court:
Beginning as early as 2011, Livingston operated A Whole Lot of Nothing LLC – a business that specialized in sending spam emails on behalf of its clients. Livingston’s clients included legitimate businesses, such as insurance companies that wished to send bulk emails to advertise their businesses, as well as illegal entities, such as online pharmacies that sold narcotics without prescriptions.
Beginning in January 2012, Livingston solicited Tomasz Chmielarz, 34, of Rutherford, New Jersey, to write computer programs that would send spam in a manner that concealed the true origin of the email and bypassed filters. Livingston also used proxy servers and botnets to remain anonymous and evade spam blocking techniques.
Livingston hacked into individual email accounts and utilized corporate mail servers to further his spam campaigns. For instance, Livingston and Chmielarz created custom software designed to hack into the customer email accounts of a company identified in the indictment as “Corporate Victim 1” so that those accounts could then be used to send out spam. By using proxy servers and Corporate Victim 1’s customer accounts, Livingston was able to send out massive amounts of spam without identifying himself as the sender.
Livingston and Chmielarz also created custom software that appropriated a corporate website, identified in the indictment as “Corporate Victim 2,” which allowed Livingston to use Corporate Victim 2’s servers to send spam that appeared to be from Corporate Victim 2, but in reality was transmitted by Livingston.
In addition to the prison term, Judge Martini sentenced Livingston to three years of supervised release.
U.S. Attorney Fishman and Acting Assistant Attorney General Blanco credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit in Newark, Senior Trial Attorney William Hall of the Department of Justice’s Criminal Division Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture-Money Laundering Unit in Newark.
Defense counsel: Lorraine Gauli-Rufo Esq., Verona, New Jersey
Florida Man Indicted in Tax Refund Fraud SchemeRead the Press Release
Used Illegal Proceeds to Buy Property and Gold Coins
A federal grand jury sitting in Ft. Myers, Florida returned an indictment on Feb. 15, which was unsealed today, charging a Lee County, Florida resident with mail fraud, money laundering, and corruptly endeavoring to impede the administration of the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney A. Lee Bentley III for the Middle District of Florida.
According to the indictment, Attila Kalmar filed 2007 through 2009 trust returns with the Internal Revenue Service (IRS) in the name of First AK-Open Sec Trust, a nominee entity, seeking more than $480,000 in fraudulent refunds. Kalmar deposited a refund check he received as a result of these filings into a bank account, and then used the proceeds to purchase real property, acquire thousands of dollars in gold coins, and wire money overseas. The indictment further alleges that Kalmar attempted to impede the internal revenue laws by transferring funds between nominee bank accounts and falsely representing to the IRS that an IRS revenue officer was the trustee for First AK-Open Sec Trust.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Kalmar faces a statutory maximum sentence of 20 years in prison for each mail fraud count, 10 years in prison for each money laundering count, and three years in prison for corruptly endeavoring to impede the administration of the internal revenue laws. Kalmar also faces a period of supervised release, restitution, forfeiture, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Bentley commended special agents of IRS–Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Kathryn A. Kimball and William M. Montague of the Tax Division and Assistant U.S. Attorney Michael C. Baggé-Hernández of the Middle District of Florida, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Kalmar IndictmentFive Sentenced in Drug Trafficking ConspiracyRead the Press Release
PANAMA CITY, FLORIDA – Five defendants were sentenced today on drug and firearm-related crimes, as well as conspiring to distribute and possess with intent to distribute five kilograms or more of cocaine. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The defendants and sentences are as follows:
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Thomas Zachary Breeding, 33, of Panama City, Florida, 72 months in prison;
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Benjamin Bailey McGraw, 37, of Smyrna, Georgia, 180 months;
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Jeremy Patrick Hubbard, 32, of Panama City Beach, Florida, 96 months;
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Richard Kenneth Helms Jr., 43, of Panama City Beach, 48 months; and
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Jessica Renee Ashbaker, 32, of Panama City Beach, 12 months.
In addition to the conspiracy charge, the defendants pled guilty to the following charges:
- Possession of a firearm as a convicted felon: Breeding and Hubbard;
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Possession with intent to distribute the controlled substance alprazolam: McGraw;
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Possession of a firearm in furtherance of drug trafficking: McGraw and Hubbard; and
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Possession with intent to distribute 500 grams or more of Cocaine: Helms and Ashbaker
In early June 2016, Breeding acquired approximately 20 kilograms of cocaine and then divided it among himself, Helms, Ashbaker, and McGraw to sell. On June 25, 2016, law enforcement officers stopped Breeding’s vehicle and arrested him after discovering cocaine and a firearm in his vehicle. On June 29, McGraw and Hubbard planned to obtain an additional 5 kilograms of cocaine from Breeding in Panama City Beach. When Hubbard arrived at the scheduled meeting place, he possessed approximately $20,000 in cash and a loaded firearm in his vehicle. He was arrested. While Hubbard went to meet Breeding, McGraw waited at a nearby motel room. McGraw was arrested at the motel. In the motel room, law enforcement officers seized a cocaine press, approximately 800 alprazolam tablets, a loaded firearm, and drug paraphernalia. On July 8, law enforcement officers seized approximately 2 and 1/2 kilograms of cocaine and approximately $33,000 in cash from Helms’s and Ashbaker’s residence.
This case resulted from an investigation by the Drug Enforcement Administration (DEA), the Florida Department of Law Enforcement (FDLE), the Walton County Sheriff’s Office, the Jackson County Sheriff’s Office, and the Panama City Police Department. Assistant United States Attorney Edwin Knight prosecuted the case.
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.
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]-
Father and Son Sentenced in Manhattan Federal Court for Market Manipulation SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOHN GALANIS and his son DEREK GALANIS were each sentenced today to six years in prison for manipulating the market for Gerova Financial Group, Ltd. (“Gerova”), a publicly traded company listed on the New York Stock Exchange, and defrauding the shareholders of that company. JOHN GALANIS and DEREK GALANIS each pled guilty to one count of conspiracy to commit securities fraud and one count of securities fraud, on July 20, 2016, and August 15, 2016, respectively. Both were sentenced today by United States District Judge P. Kevin Castel.
U.S. Attorney Preet Bharara said: “John and Derek Galanis conspired to have more than $70 million worth of stock issued, hiding Jason Galanis’s control of those shares, so that they could cash out at the expense of unwitting victim investors. Today, they have been sentenced to prison for their securities fraud.”
According to the allegations contained in the Indictment filed against JOHN GALANIS, DEREK GALANIS, and their co-conspirators, and statements made in related court filings and proceedings:
The Gerova Scheme
From 2009 to 2011, JOHN GALANIS, DEREK GALANIS, and co-conspirators Jason Galanis, Gary Hirst, Ymer Shahini, and Gavin Hamels, engaged in a scheme to defraud the shareholders of Gerova, and the investing public, by effecting securities transactions in Gerova stock for the purpose of conferring millions of dollars of undisclosed remuneration on the co-conspirators, without adequate disclosure of Jason Galanis’s role in directing the transactions or the benefits received by Jason Galanis and his co-conspirators.
As a part of the scheme to defraud, Jason Galanis obtained sufficient control over Gerova to be able to cause Gerova to enter into transactions of his design, and for his benefit, including the issuance of Gerova stock. Jason Galanis obtained this control without causing himself to be identified as an officer or director of Gerova in order to appear to abide by an SEC-imposed bar that forbade him from holding such positions at publicly traded companies. Among other means and methods, Jason Galanis, with the assistance of Hirst, caused over five million shares of Gerova stock, which represented nearly half the company’s public float and which were intended for Jason Galanis’s ultimate benefit, to be issued to and held in the name of Ymer Shahini, who knowingly served as a foreign nominee for Jason Galanis. DEREK GALANIS recruited his longstanding friend Shahini to the scheme, telling Shahini in an email, “All we need is a foreign national we trust which is where you come in my friend.” DEREK GALANIS, JOHN GALANIS, Jason Galanis, Hirst, and Shahini understood that the purpose of the stock grant to Shahini was to disguise Jason Galanis’s ownership interest in the stock, and to evade the SEC’s regulations for issuing unregistered shares of stock.
At the same time, and as a further part of the scheme to defraud, JOHN GALANIS, with the assistance of DEREK GALANIS and the knowledge and approval of Jason Galanis, opened and managed brokerage accounts in the name of Shahini (the “Shahini Accounts”), effected the sale of Gerova stock from the Shahini Accounts, and received and concealed the proceeds, knowing that this activity was designed to conceal from the investing public Jason Galanis’s ownership of and control over the Gerova stock.
Jason Galanis, among others, also fraudulently induced investment advisers, including Gavin Hamels, to purchase shares of Gerova stock in the investment advisers’ client accounts by offering compensation and/or other benefits to the respective investment adviser. JOHN GALANIS and Jason Galanis thereafter coordinated the purchase of Gerova stock at the time, quantity, and/or price of their choosing, thus effectuating the sale of large quantities of Gerova stock from the Shahini Accounts while artificially maintaining the price of Gerova stock through match trading. Such coordinated trading served to manipulate the market for Gerova stock and deceive the investing public. In total, JOHN GALANIS, DEREK GALANIS, Jason Galanis, and their co-conspirators sold nearly $20 million worth of Gerova shares from the Shahini accounts for their own benefit.
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In addition to the prison terms, JOHN GALANIS, 73, and DEREK GALANIS, 44, were each sentenced to three years of supervised release, and each ordered to forfeit $19,038,650.53. Judge Castel will set a restitution amount for each at a future proceeding.
Jason Galanis, who pled guilty to two counts of conspiracy to commit securities fraud, one count of securities fraud, and one count of investment adviser fraud, was sentenced to a term of 135 months in prison on February 15, 2017. Jared Galanis, who pled guilty to misprision of a felony, was sentenced to a term of 150 days in prison on January 11, 2017. Gary Hirst, who was found guilty after trial of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, and wire fraud, is scheduled to be sentenced on March 17, 2017. Defendant Ymer Shahini remains a fugitive. The allegations contained in the Indictment as to Shahini are merely accusations, and he is presumed innocent unless and until proven guilty.
Mr. Bharara praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the SEC.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Aimee Hector, and Rebecca Mermelstein are in charge of the prosecution.
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Epsom Man Sentenced to 21 Months in Prison for Misusing Another's Social Security NumberRead the Press Release
CONCORD, N.H. – Gordon Daigle a/k/a Gordon Hill, 38, of Epsom, was sentenced to 21 months in prison for misusing a Social Security number, announced United States Attorney Emily Gray Rice.
According to court documents and statements made in court, on April 6, 2015, Daigle applied for a New Hampshire Non-Driver Identification Card using another person’s name, date of birth, and Social Security number. He produced a Social Security card and a birth certificate in the other person’s name with his application to the Department of Motor Vehicles as means of identification. On May 23, 2016, Daigle was apprehended by the New Hampshire Joint Fugitive Task Force as a result of warrants issued by the Wyoming Board of Parole and the New Hampshire Department of Corrections Parole Board for parole violations. He provided Task Force officers with the other person’s name, and he was in possession of the New Hampshire Non-Driver Identification Card issued in the other person’s name, but bearing his picture, and the matching Social Security card when he was taken into custody. Fingerprint analysis confirmed that the individual arrested by the Joint Fugitive Task Force was Daigle.
Daigle, who pleaded guilty on October 24, 2016, will serve three years of supervised release after he is released from custody.
The case was investigated by the Social Security Administration’s Office of the Inspector General and the United States Marshal’s Service, and prosecuted by Special Assistant United States Attorney Karen Burzycki.
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Eight with ties to Heartless Felons street gang charged for interstate robbery conspiracyRead the Press Release
Arrest warrants were issued for eight people on federal charges of interstate transportation of stolen property and conspiracy, said FBI Special Agent in Charge Stephen D. Anthony, Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Calvin Williams, Chief, Cleveland Division of Police.
Adolph Boyd III, 24, Tyron Hicks, 30, and Jerome Goins, 21, were taken into custody by FBI agents and detectives from the Cleveland Police Department’s Gang Impact Unit without incident early this morning.
Padra Graves, 35, Delante Hudson-Frost, 22, Dennis McKenzie, 20, and Darnell Foster, 20, were already incarcerated and were transferred into federal custody this morning.
Law enforcement is asking the public for information leading to the location of Melvin Swinney, 21.
All eight individuals are from the Cleveland area. However, Graves was incarcerated in Columbus and will be transported to the Cleveland area next week.
From April to July 2016, members of this conspiracy traveled to nine states on 18 occasions to steal cell phones and other electronic devices by breaking into retail stores and kiosks with pry bars either just prior to closing or after closing. These individuals would then return to Cleveland with the stolen property, according to a criminal complaint unsealed today.
- the stolen devices were in Cleveland, they would be sold to gas stations or phone stores and then sold either out-of-state or overseas. It is believed the loss and damages amount exceeds $500,000, according to the complaint.
These individuals will appear in Judge Greenberg’s court room this afternoon for their initial appearance.
Any questions regarding this news release can be directed to SA Vicki D Anderson at the Cleveland Office of the FBI, 216-522-1400 or [email protected].
Conway Man Arrested by the FBI on Federal Gun ChargeRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Benjamin Thomas Samuel McDowell, age 29, of Conway, South Carolina, appeared before a federal magistrate judge this morning in Florence, South Carolina, for an initial appearance following his arrest last night in Myrtle Beach by the FBI. McDowell was arrested for a violation of possession of a firearm and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1).
A preliminary hearing and a detention hearing for McDowell have been calendared for Tuesday, February 21, 2017 at 2:30pm at the McMillan Federal Building in Florence, South Carolina. McDowell remains in custody. The case is being investigated by the FBI, the Horry County Police Department, and the Myrtle Beach Police Department.
U.S. Attorney Drake stated that all charges are merely accusations and all defendants are presumed innocent until and unless proven guilty.
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Citizen of Poland Sentenced for Illegal Entry into United StatesRead the Press Release
ALBANY, NEW YORK – Emil Michalczuk, age 25, of Siemiatycze, Poland, was sentenced today to 20 days in jail following his guilty plea to a misdemeanor charge of illegally entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
Michalczuk admitted that he walked across the border approximately a half-mile west of the Overton Corners Port of Entry on New York State Route 276, and continued southwest on foot until he reached the Rouses Point train station, where he was arrested by Border Patrol agents.
Upon the completion of his sentence, Michalczuk will be transferred to the custody of the Department of Homeland Security and he will be subject to removal proceedings.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Chinese Citizen Pleads Guilty to Structuring Cash TransactionsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, DA YING, 56, of Beijing, China, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to engaging in a pattern of financial transactions to evade reporting requirements.
According to court documents and statements made in court, between April 2011 and March 2012, while he was a resident of Farmington, Conn., YING structured or caused to be structured 50 cash deposits in amounts less than $10,000.01 into his and his wife’s six accounts at four banks in Connecticut. The cash deposits, which totaled $464,400, were frequently made on the same day at different banks or on sequential days at the same or different banks. YING knew that banks were required to issue a report for a currency transaction in excess of $10,000, and his structuring activity was intended to evade the transaction reporting requirements.
Federal law requires all financial institutions to file a Currency Transaction Report (“CTR”) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000.01 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
Judge Underhill scheduled sentencing for May 11, 2017, at which time YING faces a maximum term of imprisonment of 10 years and a fine of up to $500,000. YING was released pending sentencing.
As part of the resolution of this case, YING agreed to the civil forfeiture of $175,938 of the money he structured in Connecticut. He also agreed to pay the Internal Revenue Service $113,195 in unpaid federal taxes, plus penalties and interest for 2009, 2010 and 2011.
This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division and Homeland Security Investigations, with the assistance of the Hartford and Stamford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Chattanooga Man Convicted of Solicitation to Burn Down a Mosque in Islamberg, New YorkRead the Press Release
A federal jury today convicted Robert Doggart, 65, of Signal Mountain, Tennessee, of soliciting another person to violate federal civil rights laws by burning down a mosque in Islamberg, a hamlet outside Hancock, New York, announced Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division and United States Attorney Nancy Stallard Harr of the Eastern District of Tennessee. Doggart also was found guilty of soliciting another person to commit arson and two counts of threatening to destroy a building by fire or an explosive.
Evidence presented at trial established that between February and April of 2015, the defendant planned an armed attack on Islamberg, which is a community that is home to a large Muslim population. Doggart’s plans included burning down a mosque, a school and a cafeteria in the community. He also solicited others to join in his planned attack through Facebook posts, telephone conversations and in-person meetings. Doggart specifically targeted the mosque because it was a religious building, and he discussed burning it down or blowing it up with a Molotov cocktail or other explosive device.
“The Defendant sought out others to join him in a violent attack on a community of men, women, and children because of their religion,” said Acting Assistant Attorney General Wheeler. “We thank the jury for their service, and we will continue to vigorously enforce our nation’s laws that protect the ability of people of all faiths to live and worship in peace.”
“Our nation cannot tolerate threats by those who are willing to kill innocent children, women and men who do not share their religious beliefs or philosophy,” said U.S. Attorney Harr. “I am heartened that citizens from Chattanooga, a community that was victimized by domestic terrorism just 18 months ago, chose to condemn the threat of more terroristic acts. The jury carefully and attentively listened to the proof, deliberated cautiously for two days, and reached a verdict that reaffirms our American principles.”
“This conviction is the result of the hard work by the men and women of the FBI and our law enforcement partners,” said Special Agent in Charge Renae McDermott of the Knoxville Division of the Federal Bureau of Investigation. “The coordinated efforts of FBI Knoxville and Columbia, the USAO Eastern District of Tennessee, and DOJ were successful in proactively preventing this individual from carrying out his plans. It is a simple example of the rule of law and right of all citizens to pursue happiness in a safe environment is of paramount importance to law enforcement in the United States.”
At trial, the jury heard recorded phone conversations between Doggart and others, including one call in which Doggart said, “I don’t want to have to kill children, but there’s always collateral damage.” In another call, Doggart described his weapons as intended for killing people and not for hunting game.
The defendant faces a maximum penalty of up to 10 years in prison for each of the four counts of conviction. Sentencing is scheduled for May 31, 2017, before U.S. District Judge Curtis L. Collier of the Eastern District of Tennessee.
The case was investigated by the FBI’s Knoxville Division, and was prosecuted by Civil Rights Division Trial Attorney Saeed A. Mody and Assistant U.S. Attorney Perry H. Piper of the Eastern District of Tennessee.
Chattanooga Man Convicted of Solicitation to Burn Down a Mosque in Islamberg, New YorkRead the Press Release
A federal jury today convicted Robert Doggart, 65, of Signal Mountain, Tennessee, of soliciting another person to violate federal civil rights laws by burning down a mosque in Islamberg, a hamlet outside Hancock, New York, announced Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division and United States Attorney Nancy Stallard Harr of the Eastern District of Tennessee. Doggart also was found guilty of soliciting another person to commit arson and two counts of threatening to destroy a building by fire or an explosive.
Evidence presented at trial established that between February and April of 2015, the defendant planned an armed attack on Islamberg, which is a community that is home to a large Muslim population. Doggart’s plans included burning down a mosque, a school and a cafeteria in the community. He also solicited others to join in his planned attack through Facebook posts, telephone conversations and in-person meetings. Doggart specifically targeted the mosque because it was a religious building, and he discussed burning it down or blowing it up with a Molotov cocktail or other explosive device.
“The Defendant sought out others to join him in a violent attack on a community of men, women, and children because of their religion,” said Acting Assistant Attorney General Wheeler. “We thank the jury for their service, and we will continue to vigorously enforce our nation’s laws that protect the ability of people of all faiths to live and worship in peace.”
“Our nation cannot tolerate threats by those who are willing to kill innocent children, women and men who do not share their religious beliefs or philosophy,” said U.S. Attorney Harr. “I am heartened that citizens from Chattanooga, a community that was victimized by domestic terrorism just 18 months ago, chose to condemn the threat of more terroristic acts. The jury carefully and attentively listened to the proof, deliberated cautiously for two days, and reached a verdict that reaffirms our American principles.”
“This conviction is the result of the hard work by the men and women of the FBI and our law enforcement partners,” said Special Agent in Charge Renae McDermott of the Knoxville Division of the Federal Bureau of Investigation. “The coordinated efforts of FBI Knoxville and Columbia, the USAO Eastern District of Tennessee, and DOJ were successful in proactively preventing this individual from carrying out his plans. It is a simple example of the rule of law and right of all citizens to pursue happiness in a safe environment is of paramount importance to law enforcement in the United States.”
At trial, the jury heard recorded phone conversations between Doggart and others, including one call in which Doggart said, “I don’t want to have to kill children, but there’s always collateral damage.” In another call, Doggart described his weapons as intended for killing people and not for hunting game.
The defendant faces a maximum penalty of up to 10 years in prison for each of the four counts of conviction. Sentencing is scheduled for May 31, 2017, before U.S. District Judge Curtis L. Collier of the Eastern District of Tennessee.
The case was investigated by the FBI’s Knoxville Division, and was prosecuted by Civil Rights Division Trial Attorney Saeed A. Mody and Assistant U.S. Attorney Perry H. Piper of the Eastern District of Tennessee.
Castle Rock Man Convicted of Making False Claims in Attempt to Defraud Department of Argiculture's Finance OfficeRead the Press Release
DENVER – Gunther Glaub, age 56, of Castle Rock, Colorado, was recently convicted of five counts of making false claims against the government following a three-day trial before U.S. District Court Judge Raymond P. Moore, Acting U.S. Attorney Bob Troyer, FBI Denver Division Special Agent in Charge Calvin Shivers and U.S. Department of Education Office of the Inspector General Special Agent in Charge of Western Regional Office Natalie Forbort announced. A sixth count, mailing a fictitious money order, was dismissed before trial. Glaub, who is free on bond, will be sentenced by Judge Moore on May 12, 2017. He was originally indicted by a federal grand jury on June 6, 2016. His guilty verdict came on January 25, 2017.
According to court documents, as well as information and evidence produced to court during hearings and at trial, Glaub tried to defraud the Department of Agriculture’s finance office into paying nearly $1.7 million worth of debts on his behalf. The five false claims he was convicted of submitting included attempts to get the government to buy him three new vehicles (including a $73,000 Corvette and a $65,000 Camaro) and pay off two other debts (including student loans he owed to the Department of Education).
During pretrial proceedings, information indicated that Glaub was involved with the anti-government “sovereign citizen” movement, whose adherents refuse to recognize the authority of the federal government and often use those purported beliefs as a gateway to illegal activity. Testimony at trial confirmed Glaub’s sovereign affiliation, and his actions were consistent with known fraud schemes that are prevalent in sovereign citizen circles.
Glaub faces not more than 5 years in federal prison, and up to a $250,000 fine, per count, for each of the five counts of conviction.
This case was investigated by the FBI and the U.S. Department of Education Office of the Inspector General. The defendant was prosecuted by Special Assistant U.S. Attorney Daniel Burrows and Assistant U.S. Attorney Peter McNeilly.
Career Offender Bank Robber Sentenced to 262 Months in Federal PrisonRead the Press Release
DALLAS — Noah Bradley Lester, 64, of Farmers Branch, Texas was sentenced today by U.S. District Judge Jane Boyle to serve a total of 262 months in federal prison, following his guilty plea in April 2016 to two counts of bank robbery, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, on April 17, 2015 Lester entered the BB&T Bank located at 3550 Forest Lane in Dallas, Texas, wrote a demand note then left the bank when approached by bank personnel, leaving the note behind. Lester next entered the Capital One Bank located at 2903 Forest Lane, Dallas, Texas. Lester handed the teller a note demanding money and then lifted his shirt so the teller could see an airsoft pistol in his waistband. The teller, scared and in fear for her life, complied with the demand and provided Lester with cash. After securing the money, Lester left the bank. He was arrested later that same day as he arrived home.
Lester also pleaded guilty in 1993 in the Northern District of Texas to one count of bank robbery and was sentenced in August 1993 to serve 300 months in federal prison. At the time of these April 2015 bank robberies, Lester was on supervised release on that offense. Today, Judge Boyle sentenced Lester to 262 months on the bank robbery offenses and 36 months for violating his supervised release, to be served concurrently.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.
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Butler County Couple Indicted on Federal Drug and Firearms OffensesRead the Press Release
Montgomery, Alabama – A federal grand jury has indicted William Edward Robinson (44) and Sandra Wright Taylor (53), for violations of federal law including conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of firearms in connection with drug distribution, possession of firearms while being a convicted felon, criminal use of the United States Mail, maintaining a drug-involved premise, and illegal possession of a machinegun, announced George Beck Jr., U.S. Attorney for the Middle District of Alabama. The couple shared a residence in Greenville, Alabama.
It is alleged that Taylor and Robinson received their illegal drugs through the mail for distribution locally. Upon searching their residence, numerous firearms were also found including an illegal machinegun. Robinson has previous felony convictions and under federal law, a felon is prohibited from possessing a firearm.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the charges, the couple faces a maximum sentence of life in prison.
The case was investigated by the Second Judicial Drug Task Force, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Secret Service, the Butler County Sheriff’s Office, the Greenville Police Department, the Autauga County Sheriff’s Office, the Montgomery Police Department, and the Alabama Department of Forensic Sciences.
The cases are being prosecuted by Assistant United States Attorney Susan R. Redmond.
Buffalo Man Sentenced on Gun ChargeRead 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 Alexander Rivera-Santiago, 32, of Buffalo, NY, who was convicted of being a felon in possession of a firearm and ammunition, was sentenced to 33 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on January 31, 2016, Buffalo Police officers on routine patrol attempted to pull over a vehicle in which the defendant was riding. After activating their lights and sirens, the vehicle fled from the officers, ran multiple stop signs, drove over sidewalks, and through a parking lot.
When the vehicle stopped, the driver and the defendant got out and attempted to flee on foot. Santiago was apprehended, and during a subsequent search, officers found six .22 caliber rounds in the defendant’s left pocket. They also found a .22 caliber revolver in the area from which the defendant fled. Santiago was previously convicted on felony charges in the State of Florida and is prohibited from legally possessing a firearm.
The sentencing is the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan M. Benedict, New York Field Division.
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Brownsville Man Handed Significant Sentence for Hostage takingRead the Press Release
BROWNSVILLE, Texas – A 24-year-old Brownsville man has been ordered to prison for nearly 20 years following his conviction of human smuggling and hostage taking, announced U.S. Attorney Kenneth Magidson. Reynaldo Lerma-Pichardo pleaded guilty Oct. 25, 2016.
On Feb. 15, 2017, U.S. District Judge Rolando Olvera ordered he serve a total of 235 months in federal prison to be immediately followed by three years of supervised release.
On or about Nov. 22, 2015, the Brownsville Police Department (BPD) received a 911 call leading them to an apartment. There, Border Patrol (BP) agents discovered nine undocumented aliens being held against their will. The undocumented aliens reported that they were not allowed to leave the apartment unless they could pay additional monies to Lerma-Pichardo.
Lerma-Pichardo operated the alien smuggling operation along with Leticia Lerma-Pichardo, Juan Carlos Meza-Hinojosa and Cynthia Yadira Deantes out of their homes.
During the course of the investigation, Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) agents discovered that Lerma-Pichardohas sexually assaulted one of the illegal alien females held at the apartment.
Leticia Lerma Pichardo, 47, a legal permanent resident of Brownsville and Meza-Hinojosa, a 38-year-old Mexican citizen were previously sentenced to 37 and 22 months, respectively. Deantes, 23, is set for sentencing next week.
HSI conducted the investigation with the assistance of BP and BPD. Assistant U.S. Attorney Ana Cano is prosecuting the case.
Brooksville Man Sentenced to More Than Five Years for Being A Felon in Possession of A Firearm and AmmunitionRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Chamberlain Chaney (26, Brooksville) to 5 years and 10 months in federal prison for being a felon in possession of a firearm and ammunition. The Court also ordered him to forfeit a Glock .40 caliber pistol and 15 rounds of ammunition.
Chaney pleaded guilty on October 4, 2016.
According to court documents, on September 20, 2015, law enforcement officers attempted to speak with Chaney about a recent robbery. He ran from the officers, discarding a fully loaded Glock pistol that had been stolen. Prior to his arrest in this case, Chaney had prior convictions for aggravated assault with a deadly weapon, carrying a concealed firearm, and resisting a law enforcement officer with violence. As a result, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Tampa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Natalie Hirt Adams.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Brandon Man Sentenced for Stealing Checks and Money Orders from U.S. Postal MailboxesRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Carlos Sarabasa Cobas (30, Brandon) to three years and five months in federal prison for conspiracy to commit bank fraud. The Court also entered a money judgment in the amount of $123,225.80, and a restitution order requiring Cobas to pay $46,232.45 to the victims of his crime. He pleaded guilty on November 17, 2016.
According to court documents, Cobas engaged in a scheme to defraud the United States and financial institutions by negotiating money orders and checks that he had stolen from various U.S. Postal Service mail collection boxes in several Florida counties, including Hillsborough, Pinellas, Pasco, Polk, and Sarasota. Cobas used “fishing” devices constructed of duct tape, string, and metal objects to burglarize the mailboxes. He then discarded the unwanted mail and kept the money orders and checks that he then washed or altered before depositing, or distributing them to be deposited by others, into bank accounts held by the conspirators at several financial institutions.
This case was investigated by the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorneys Megan Kistler and Daniel George.
Beggs Man Sentenced to 57 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JACKIE LEON PARKER, JR, age 42, of Beggs, Oklahoma, was sentenced to 57 months imprisonment, and 3 years of supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about May 23, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearm which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Checotah Police Department, the Okmulgee Police Department, the Okmulgee District Attorney’s Office, the Okmulgee County Sheriff’s Office, the Muskogee County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.
Auburn Man Indicted for Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Christopher Lee, 64, of Auburn, charging him with the production of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Lee used a webcam to produce child pornography and share the video with an individual who lived in England.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Placer County Sheriff’s Department. Assistant U.S. Attorney Lee S. Bickley is prosecuting the case.
Lee has remained in custody since his arrest on February 6, 2017.
If convicted, Lee faces a maximum statutory penalty of 30 years in prison for each count and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Atlanta Man Convicted of Illegally Importing and Distributing Male Enhancement Products from ChinaRead the Press Release
ATLANTA - Ismail Ali Khan has been convicted following a six-day jury trial of conspiracy, illegal importation of misbranded drug products from China, receiving misbranded drugs that had moved in interstate commerce, and making false statements in order to become a naturalized U.S. citizen.
“Khan led a conspiracy that caused misbranded drugs to be illegally imported and distributed in the Atlanta area and throughout the southeastern United States,” said U. S. Attorney John Horn. “Because the labeling on the products failed to warn consumers of the dangers in taking the products, consumers’ health and safety were placed in jeopardy by Khan’s conduct.”
“Distributing unapproved and misbranded drugs disguised as all-natural supplements places the U.S. public health at risk,” said Justin Green, Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office. “We will remain vigilant in our efforts to protect American consumers from these fraudulent and potentially dangerous products.”
According to U.S. Attorney Horn, the charges and other information presented in court: In early 2011, Khan and his brother, Ahmed Ali Khan, began ordering male enhancement products from China marketed under names such as “Maxman,” “Herb Viagra,” “Rock Hard Weekend,” “Stiff Nights,” “Happy Passengers,” “Hard Ten Days,” “Zhen Gongfu,” and “African Black Ant.” These products contained sildenafil, the active pharmaceutical ingredient in Viagra, and/or tadalafil, the active pharmaceutical ingredient in Cialis. Both Viagra and Cialis can be obtained in the U.S. only with a prescription from a doctor.
However, the labeling for the products that Khan and his brother imported and distributed did not state that they contained sildenafil or tadalafil. Instead, the products were misleadingly labeled as “all-natural” and “herbal.” The labeling for the products also failed to warn consumers about the medical risks associated with taking sildenafil and tadalafil.
Khan and his brother illegally imported these drugs from China by having shippers in China falsely declare on the Customs declaration attached to the shipping boxes containing the products that the boxes contained “tea,” “coffee,” “beauty products,” and other false entries.
In order to evade detection by authorities, Khan, his brother, and their co-conspirators used multiple mailing addresses rented in multiple business names at locations in the Atlanta, Georgia, metropolitan area to receive the shipments from China. Khan and his co-conspirators would then move the products to storage units where they would prepare orders for wholesale distributors of the products. Khan and his co-conspirators used aliases, false addresses, and fake business names to misrepresent the nature of their business when renting the storage units and mail boxes.
In August 2013, during the course of the conspiracy, Khan applied to become a naturalized U.S. citizen. On the application form, Khan falsely stated that he had never committed a criminal offense for which he had not been arrested. Then on January 6, 2014, in an interview with Citizenship and Naturalization Services, and again on March 14, 2014, just before he took the oath to become a naturalized citizen, Khan falsely stated that he had never committed a crime for which he had not been arrested. Based upon Khan’s false statements, he became a naturalized U.S. citizen on March 14, 2014.
Ismail Ali Khan, 29, of Decatur, Georgia, was convicted on Monday, February 13, 2017. Sentencing for Khan is scheduled for April 27, 2017, at 10:00 a.m., before U.S. District Judge Steve C. Jones. Khan was arrested on May 29, 2014, and he has remained in custody since his arrest. At his sentencing hearing, Judge Jones will sign an order that revokes Khan’s U.S. citizenship.
This case was investigated by the Food and Drug Administration, Office of Criminal Investigations, the United States Postal Inspection Service, and Homeland Security Investigations.
Assistant United States Attorneys William L. McKinnon, Jr. and Trevor C. Wilmot prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Arrest Made in Bonners Ferry Church ArsonRead the Press Release
BOISE – Shane Rucker, 33, of Bonners Ferry, Idaho, was arrested today on a two-count federal indictment in the District of Idaho charging him with destruction of religious property and using a fire to damage or destroy religious property. A federal grand jury sitting in Boise returned the indictment on February 15, 2017. Rucker will make his initial appearance tomorrow at 9:00 a.m. at the federal courthouse in Coeur d’Alene, Idaho.
According to allegations in the indictment, on April 21, 2016, Rucker set fire to St. Ann’s Catholic Church in Bonners Ferry, Idaho, because of the religious character of the property, in violation of the Church Arson Prevention Act. The church was completely destroyed as a result of the fire.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of destroying the church because of its religious character, Rucker faces a maximum sentence of 20 years in prison. Using a fire to destroy the church carries a mandatory 10 year sentence that must run consecutive to any other sentence.
The case is being investigated by the Bonners Ferry Police Department, the Bonner County Sheriff’s Office, the Idaho State Fire Marshal’s Office, the Boundary County Sheriff’s Office Fire Investigation Team, the Bureau of Alcohol, Tobacco and Firearms, and the Federal Bureau of Investigation. The case is being prosecuted by U.S. Attorney Wendy Olson and Assistant U.S. Attorney Traci Whelan of the District of Idaho and Trial Attorney Angie Cha of the Civil Rights Division.
Anchorage Man Sentenced to 10 Years in Prison for Felon in Possession of a FirearmRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Aaron Michael Sullivan, 29, of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason to serve 10 years in prison for being a felon in possession of a firearm, followed by three years of supervised release. His federal term of imprisonment will run concurrent with his convictions by the State of Alaska in case 3AN-14-9136 CR.
On Oct. 6, 2014, Anchorage Police attempted to conduct a traffic stop on the vehicle Sullivan was driving. Sullivan fled from the police. As the police looked for Sullivan in the Mountain View neighborhood, Sullivan rammed a patrol car with his vehicle. Sullivan then fired a shot at one of the officers. As the officer attempted to find cover behind another vehicle Sullivan fired more shots in his direction. Sullivan then attempted to flee again and drove his vehicle through an intersection and crashed his vehicle into a street sign.
In case 3AN-14-9136 CR, Sullivan was convicted by the State of Alaska after a jury trial and sentenced to 50 years in prison with 15 years suspended, after convictions for attempted murder in the first degree, assault in the third degree, failure to stop at the direction of an officer, and reckless endangerment. Sullivan was convicted of being a felon in possession of a firearm for possession of the firearm he used to shoot at the Anchorage Police Officer during the above referenced incident. Sullivan has prior felony convictions for assault in the third degree and misconduct involving weapons in the third degree.
U.S. Attorney Loeffler commends the Anchorage Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the successful investigation and prosecution of this case.
Albuquerque Man Pleads Guilty to Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Adam Martinez, 42, of Albuquerque, N.M., pled guilty today in federal court to heroin, methamphetamine and cocaine trafficking charges. He also pled guilty to possessing two firearms in furtherance of his drug trafficking crimes. The guilty plea was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division.
Martinez was arrested in Aug. 2016, on a criminal complaint charging him with committing drug trafficking and firearms offenses in Bernalillo County, N.M. According to the complaint, Martinez was arrested on Aug. 24, 2016, after the DEA executed a search warrant at his Albuquerque residence and seized distribution quantities of heroin, methamphetamine, cocaine, other controlled substances and two firearms. At the time, Martinez was prohibited from possessing firearms or ammunition because he previously had been convicted of a drug trafficking offense.
On Sept. 13, 2016, Martinez was charged in an eight-count indictment with distribution of methamphetamine on Aug. 5, 2016, and possessing distribution quantities of heroin, methamphetamine, cocaine, and other controlled substances on Aug. 24, 2016. The indictment also charged Martinez with possession of firearms in furtherance of his drug trafficking activities and being a felon in possession of firearms on Aug. 24, 2016. According to the indictment, Martinez committed the crimes in Bernalillo County.
During today’s proceedings, Martinez pled guilty to five counts of the indictment. Martinez admitted distributing methamphetamine on Aug. 5, 2016, and possessing heroin, methamphetamine and cocaine with intent to distribute on Aug. 24, 2016. He also admitted possessing firearms in furtherance of his drug trafficking crimes on Aug. 24, 2016.
In entering the guilty plea, Martinez admitted distributing drugs in Albuquerque from Jan. 2016 to Aug. 2016, and that his drug trafficking activities included selling approximately 27.8 grams of cocaine to a person working with law enforcement on Jan. 12, 2016. He also admitted selling drugs to an undercover officer on the following dates: approximately 27.4 grams of cocaine on Jan. 27, 2016; approximately 56.7 grams of methamphetamine on Feb. 5, 2016; and approximately 56.7 grams of methamphetamine on Aug. 5, 2016.
Martinez further admitted that on Aug. 24, 2016, law enforcement officers executed a search warrant on his residence and seized approximately 318 grams of heroin, 149.7 grams of 100% pure methamphetamine, 128 grams of cocaine, 250 tablets (27.59 grams) containing fentanyl, and 43 grams of marijuana. The officers also seized two firearms which were in close proximity to the drugs, and Martinez admitted possessing the firearms for purposes of protecting himself, his drugs, and his drug proceeds.
At sentencing, Martinez faces a statutory mandatory minimum penalty of five years and a maximum of 40 years in prison on the drug trafficking charges. He also faces a mandatory minimum penalty of five years and a maximum of life in prison on the firearms charge that must be served consecutive to the prison sentence imposed on the drug trafficking charges. Martinez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Timothy S. Vasquez as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
15 February 2017
Youngstown man indicted for heroin and firearms violationsRead the Press Release
A Youngstown man was indicted for selling heroin and illegally having firearms, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and FBI Special Agent in Charge Stephen D. Anthony.
James K. Neail, 33, was charged in a five-count indictment with distribution of heroin and with being a felon in possession of firearms and ammunition.
Neail sold heroin on multiple occasions in September 2016 in the Youngstown area, according to the indictment.
Neail possessed a Kel-Tec, model P3AT, .380 caliber pistol and ammunition in September 2015 and possessed a Rohm, model RG38S, .38 caliber revolver and ammunition in October 2015. He did so despite a 2012 federal conviction for conspiracy to commit unlawful conduct relating to RICO, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Mahoning Valley Law Enforcement Task Force. The matter is being prosecuted by Assistant U.S. Attorneys David M. Toepfer and Ranya Elzein.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.