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14 February 2017
Five Quincy Men Indicted on Federal Drug, Gun Charges in Separate CasesRead the Press Release
SPRINGFIELD, Ill. – Five Quincy, Ill., men made their respective initial appearances in federal court this morning on separate, unrelated drug and gun charges. A federal grand jury returned the indictments last week; however, the charges had remained sealed pending the defendants’ arrests and court appearances. Each defendant was given a trial date of April 4, 2017. The defendants charged include the following:
Gerald Knight, 59, of the 1400 block of N. Fifth St.: on Jan. 6, 2017, possession with intent to distribute methamphetamine; possession of a firearm, a 12-gauge shotgun, during and in relation to a drug trafficking offense; and, possession of a firearm by a felon.
Dantae Knighton, 26, of the 300 block of College St.: on Jan. 13, 2017, possession with intent to distribute marijuana; possession of a firearm, a .380 handgun, during and in relation to a drug trafficking offense; and, possession of a firearm by a felon.
Conner McGlaughlin, 18, of the 1800 block of Kochs Lane: on Oct. 11, 2016, possession with intent to distribute methamphetamine and possession of a firearm, a .32 caliber revolver, during and in relation to a drug trafficking offense.
Tyler McGlaughlin, 23, also of the 1800 block of Kochs Lane: on Oct. 21, 2016, possession with intent to distribute methamphetamine; possession of a firearm, a .32 revolver, during and in relation to a drug trafficking offense; and, possession of a firearm by a felon.
Caleb Roux, 18, of the 400 block of N. 14th St.: on Dec. 13, 2016, possession with intent to distribute marijuana; possession of a firearm, a .45 pistol, during and in relation to a drug trafficking offense; and, possession of a firearm by a felon.
U.S. Magistrate Judge Tom Schanzle-Haskins ordered that Knight and Knighton remain detained in the custody of the U.S. Marshals Service. Conner McGlaughlin was released from custody. A detention hearing for Roux is scheduled on Thursday, and on Friday for Tyler McGlaughlin.
The charges against the five defendants were investigated by the West Central Illinois Task Force and the Quincy Police Department. Assistant U.S. Attorney Matthew Z. Weir is prosecuting the cases.
If convicted, the maximum statutory penalty for each offense charged is prescribed by Congress and is provided for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
For possession with intent to distribute methamphetamine, Knight faces up to life in prison; for possession of a substance containing methamphetamine, Knight faces up to 30 years in prison. Conner McGlaughlin faces up to 20 years in prison for possession with intent to distribute a substance containing meth; and, Tyler McGlaughlin faces up to 40 years in prison.
If convicted for possession with intent to distribute marijuana, Knighton faces up to five years in prison. Roux faces up to 10 years in prison for possession with intent to distribute marijuana.
Each of the defendants is charged with one count of possession of a firearm during and in relation to a drug trafficking offense, an offense that carries a mandatory minimum five years in prison to be served consecutive to any sentence ordered for the related drug offense. Possession of a firearm by a felon carries a statutory maximum penalty of 10 years in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Five Individuals Indicted in February 2017 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the February 2017 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
JADE BELINDA ADAMS, age 33, of Durant, Oklahoma
Theft Of Public MoniesThe Indictment alleges that from in or about September 2012 to on or about November 30, 2016, in the Eastern District of Oklahoma, the defendant, JADE BELINDA ADAMS, did willfully and knowingly steal and purloin monies in excess of $1,000.00 belonging to the United States, in violation of Title 18, United States Code, Section 641, punishable by no more than 10 years imprisonment, a fine up to $250,000.00 or both.
The charge arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation.
Assistant United States Attorney Edward Snow
KEVIN WAYNE SANDERS JR, age 28, of Tulsa, Oklahoma
Three (3) Counts Of Distribution Of OxycodoneThe Indictment alleges that on or about January 14, 2016, to on or about January 28, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally distribute Oxycodone, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by no more than 20 years imprisonment, a fine up to $1,000,000.00 or both for each count.
The charges arose from an investigation by the Oklahoma Bureau of Narcotics and the Drug Enforcement Administration.
Assistant United States Attorney Timothy Hammer
MIKEL DWAYNE MEEK, age 47, of Holdenville, Oklahoma
Delay Or Destruction Of Mail By Postal EmployeeThe Indictment alleges that on or about November 22, 2016, in the Eastern District of Oklahoma, the Defendant, a United States Postal Service employee, did willfully, knowingly and unlawfully open a package entrusted to him and which came into his possession to be conveyed by mail, while performing his assigned duties as an employee of the United States Postal Service, in violation of Title 18, United States Code, Section 1703, punishable by up to 5 years imprisonment, a fine up to $250,000.00 or both.
The charge arose from an investigation by the United States Postal Service’s Office of Inspector General.
Assistant United States Attorney John David Luton
LEANDE JOANNE PRATHER, age 37, of Canadian, Oklahoma
Embezzlement Of Mail By Postal EmployeeThe Indictment alleges that between on or about August 2, 2016 and on or about December 20, 2016, in the Eastern District of Oklahoma, the Defendant, a United States Postal Service employee, did willfully, knowingly and unlawfully embezzle packages entrusted to her and which came into her possession to be conveyed by mail, located at the Eufaula Post Office, 131 W. Foley, Eufaula, Oklahoma, while performing her assigned duties as an employee of the United States Postal Service, in violation of Title 18, United States Code, Section 1709, punishable by up to 5 years imprisonment, a fine up to $250,000.00 or both.
The charge arose from an investigation by the United States Postal Service’s Office of Inspector General.
Assistant United States Attorney John David Luton
RITA LOUISE FALL, age 37, of Bristow, Oklahoma
Theft Of Mail Matter By Postal EmployeeThe Indictment alleges that beginning on or about August 19, 2016, and continuing through on or about August 29, 2016, within the Eastern District of Oklahoma, the Defendant, a United States Postal Service employee, did willfully, knowingly and intentionally steal, abstract and remove mail and articles contained therein, which came into her possession to be conveyed by mail, while performing her assigned duties as an employee of the United States Postal Service, in violation of Title 18, United States Code, Section 1709, punishable by not more than 5 years imprisonment, a fine up to $250,000.00 or both.
The charge arose from an investigation by the United States Postal Service’s Office of Inspector General.
Assistant United States Attorney Kristin Harrington
Fauquier County Agrees to Resolve ADA Review of Polling LocationsRead the Press Release
ALEXANDRIA, Va. – Fauquier County has agreed to resolve an Americans with Disabilities Act (ADA) compliance review of its polling locations to ensure that its polling locations comply with the ADA.
“Voting is the cornerstone of our democracy,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Under this agreement, voters with disabilities in Fauquier County can vote at the polling place near their home and alongside their neighbors and friends.”
As part of a nation-wide Department of Justice voting rights initiative, the U.S. Attorney’s Office conducted an ADA compliance review of Fauquier County’s polling locations. The review revealed that many polling places in Fauquier County have architectural barriers that make them inaccessible to voters who use wheelchairs or have mobility impairments.
Pursuant to the settlement agreement, Fauquier County will make temporary and permanent changes to its polling places to make the locations accessible to voters who use wheelchairs or have mobility impairments. Fauquier County also has the option of relocating these polling locations to alternate accessible locations. Going forward, the county will only select new polling place locations that are accessible on election day. The county will also provide training to poll workers and file reports with the U.S. Attorney’s Office on its compliance.
This matter was handled by Assistant U.S. Attorney Steven Gordon, who is the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office for the Eastern District of Virginia.
Title II of the ADA prohibits public entities from discriminating against people with disabilities in their programs, services and activities. With respect to polling places, public entities are required to select and use polling places that are accessible. To learn more about ADA requirements for polling place accessibility or about the ADA and other laws protecting the rights of voters with disabilities, visit www.ada.gov/ta-pubs-pg2.htm. For more information on the ADA and to access this publication, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD).
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.
Eugene Man Sentenced to 40 Months in Prison for International Firearms TraffickingRead the Press Release
EUGENE, Ore. – On February 14, 2017, Robert Allen Cummins, 57, from Eugene, was sentenced by U.S. District Judge Ann Aiken to 40 months in prison for his involvement in a scheme to illegally purchase and sell firearms that were immediately smuggled to Mexico. After completing his prison sentence, Cummins will be on supervised release for three years and will be prohibited from possessing firearms and ammunition.
This criminal case is the result of a year-long investigation and international collaboration that began after a large shipment of firearms was intercepted by law enforcement in Sonora, Mexico. According to court documents and statements made in court, members of the conspiracy deposited tens of thousands of dollars near the U.S.-Mexico border into bank accounts associated with Erik Flores Elortegui. Cummins and Flores then straw-purchased thousands of dollars’ worth of high-caliber firearms, including .50 caliber and AK-47-type rifles, some of which were recovered in Mexico soon after being purchased.
On one day alone, Cummins walked into a Federally Licensed Firearms Dealer (FFL) in Oregon and paid $38,100 in cash for fourteen firearms, including three .50 caliber rifles.
Image 1: Firearms purchased by Mr. Cummins from a Federally Licensed Firearms Dealer in Oregon
Less than thirty days later, the Mexican Military seized many of those same firearms, including two of the .50 caliber rifles, from a tractor trailer in San Luis Rio de Colorado, Sonora, Mexico. The firearms, many of which were missing serial numbers, along with more than 2,000 rounds of ammunition, magazines, and firearms accessories, were saran-wrapped and hidden among bales of alfalfa being transported on the tractor trailer.
Image 2: Firearms Seized by Mexican Law Enforcement Officials
Image 3: Smuggled Firearms Were Found Hidden Among Bales of Alfalfa on a Tractor Trailer
“Making false statements during a firearms purchase and straw purchasing firearms are serious offenses that increase the likelihood of weapons reaching the hands of violent criminals,” said Billy J. Williams, United States Attorney for the District of Oregon. “Those who seek to buy or sell firearms illegally in Oregon or elsewhere will be held accountable for their actions.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Homeland Security Investigations (HSI) and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon.
Erie Man Charged with Federal Drug Law ViolationRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of violating federal drug laws, Acting United States Attorney Soo C. Song announced today.
The one count indictment named Robert Earl Noble, 38, Erie, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, Noble possessed with the intent to distribute twenty-eight grams or more of crack cocaine on two occasions.
The law provides for a maximum total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Erie Police Department, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Enrique Marquez Jr. Agrees to Plead Guilty to Plotting Violent Attacks and Buying Firearms for Shooter in San Bernardino Terrorist AttackRead the Press Release
RIVERSIDE, California – Enrique Marquez Jr. – a longtime friend of Syed Rizwan Farook, the male shooter in the San Bernardino terrorist attack – has agreed to plead guilty to conspiring with Farook in 2011 and 2012 to provide material support to terrorists.
Marquez, 25, of Riverside, entered into a plea agreement that was filed today in United States District Court. The defendant is scheduled to enter his guilty pleas Thursday morning at 9:00 a.m. before United States District Judge Jesus Bernal.
In the plea agreement, Marquez agreed to plead guilty to providing material support and resources to terrorists, including weapons, explosives and personnel. Marquez admitted in the plea agreement that he conspired with Farook in 2011 and 2012 to attack Riverside City College (RCC) and commuter traffic on the 91 Freeway.
Marquez also agreed to plead guilty to making false statements in connection with the acquisition of a firearm for being the “straw buyer” of two assault rifles that were used in the shooting rampage at the San Bernardino Inland Regional Center (IRC) on December 2, 2015.
“This defendant collaborated with and purchased weapons for a man who carried out the devastating December 2, 2015 terrorist attack that took the lives of 14 innocent people, wounded nearly two dozen, and impacted our entire nation,” said United States Attorney Eileen M. Decker. “While his earlier plans to attack a school and a freeway were not executed, the planning clearly laid the foundation for the 2015 attack on the Inland Regional Center. When this defendant pleads guilty, all four individuals charged, including three of the shooters’ family members, will be convicted. Everyone in the U.S. Attorney’s Office – and everyone across the Department of Justice and the broader law enforcement community – brought their expertise, dedication, and tireless effort to bear on this investigation. We are, and will continue to be, deeply committed to pursuing the prosecution of everyone who was even remotely related to the San Bernardino attack. As these criminal cases begin to resolve, we hope that the victims of the attack and the community of San Bernardino are comforted in some small way by the knowledge that the Department of Justice and the law enforcement community stands with them in this investigation, resolute and committed to justice.”
“With this plea, Enrique Marquez Jr. will be held accountable for his role in plotting terrorist attacks on American soil with Sayed Rizwan Farook in 2011 and 2012, attacks which were, fortunately, not carried out,” said Acting Assistant Attorney General for National Security Mary B. McCord. “Marquez also admitted to making a false statement as part of his straw purchases of weapons for Farook – weapons that were eventually used to carry out the deadly terrorist attack in San Bernardino. Holding those who threaten our national security and public safety accountable will always be the highest priority of the National Security Division and I want to thank all of the agents, analysts, and prosecutors who are responsible for this result.”
Marquez was arrested about two weeks after the attack at the IRC, which was perpetrated by Farook, and his wife, Tashfeen Malik, who were killed in a shootout with law enforcement hours after the attack.
The investigation into the deadly shooting quickly uncovered evidence that, in 2011 and 2012, Marquez purchased two rifles that Farook and Malik later used in the attack that killed 14 people and wounded 22 others at the IRC. A law enforcement officer was wounded during the shootout that afternoon.
According to the plea agreement, Farook paid Marquez for the rifles. Marquez also discussed with Farook the use of radio-controlled improvised explosive devices (IEDs) during the planned attacks on the RCC and State Route 91. Marquez purchased Christmas tree lightbulbs and a container of smokeless powder for use in manufacturing IEDs.
“Defendant Marquez purchased two of the weapons used in the San Bernardino terror attack to murder 14 innocent people and seriously injure 22 others – a horrific act which led to great suffering and a lifetime of pain for the survivors and for the loved ones of those murdered,” said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “Defendant Marquez provided these weapons to his associate, Syed Rizwan Farook, with whom he conspired to plot chilling terror attacks. I’m gratified that this guilty plea will spare the victims and the San Bernardino community from having to relive the gruesome details of the attack during what would likely be a lengthy trial.”
Once he pleads guilty, Marquez will face a statutory maximum sentence of 25 years in federal prison.
Marquez, who did not personally participate in the attack on the IRC, has remained in custody since he was ordered detained at his initial court appearance in this case on December 17, 2015.
The plea agreement filed today is the result of an investigation by several members of the Inland Empire Joint Terrorism Task Force, including agents and detectives from the Federal Bureau of Investigation; the San Bernardino Police Department; the San Bernardino County Sheriff’s Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Riverside County Sheriff’s Department; the San Bernardino County District Attorney’s Office; the Chino Police Department; the Redlands Police Department; the Ontario Police Department; the Corona Police Department; and the Riverside Police Department.
“Straw purchasers are criminals who are the beginning of the chain of violence in our country,” said ATF Special Agent in Charge Eric D. Harden. “It is purchases like Marquez’s that led to the terror on that tragic day in San Bernardino. The crime goes beyond making a false statement on a government form. It puts guns in the hands of criminals who will victimize the community. In this case, the straw purchase is as reprehensible as the attack.
“This guilty plea will bring much needed closure to a case that devastated those victims and families associated with the senseless attack on December 2, 2015, an attack that also deeply impacted our community,” said San Bernardino Police Chief Jarrod Burguan. “This case a perfect example of local and federal authorities working together with a common purpose for the sake of the victims.”
San Bernardino County Sheriff John McMahon stated: “December 2nd will forever haunt the memories of the victims’ families and the survivors who have lived through the tragedy. I pray today's guilty plea brings all of us a bit of justice.”
Also as a result of the investigation into the IRC attack, three people have pleaded guilty to being part of a sham marriage scheme in which a Russian woman “married” Marquez to obtain immigration benefits.
Syed Raheel Farook, the brother of IRC attacker Syed Rizwan Farook; Tatiana Farook, who is Syed Raheel Farook’s wife; and Mariya Chernykh, who is Tatiana Farook’s sister, pleaded guilty earlier this year to immigration fraud charges and admitted being part of conspiracy in which Chernykh paid Marquez to enter into a bogus marriage.
The case against Marquez and the immigration fraud case are being prosecuted by Assistant United States Attorneys Jay H. Robinson, Melanie Sartoris and Deirdre Z. Eliot of the Terrorism and Export Crimes Section. Trial Attorney C. Alexandria Bogle of the National Security Division’s Counterterrorism Section provided substantial assistance.
Emergency Medical Technician for the Fire Department of the City of New York Arrested for Possessing and Receiving Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced the arrest of ALFRED PABON, an Emergency Medical Technician with the Fire Department of the City of New York, stemming from his possession and receipt, as well as distribution of child pornography. PABON was arrested today and presented in Manhattan federal court before U.S. Magistrate Judge Gabriel W. Gorenstein.
U.S. Attorney Preet Bharara said: “As alleged, Alfred Pabon frequented online chat groups for the explicit purpose of finding children and child pornography. In one his chats, Pabon allegedly expressed interest in taking a trip to Mexico in search of ‘something teenish.’ Thanks to the work of Homeland Security Investigations, Pabon’s alleged predatory search for children and child pornography has been brought to an end.”
HSI Special Agent-in-Charge Angel Melendez said: “Using online chat groups to post photos and videos of children being sexually exploited is a sickening crime made even more disturbing when it is committed by an individual who holds the public's trust as a member of the FDNY. Every day HSI agents stationed around the country, use innovative techniques to search the internet and chat rooms to bring these pedophiles to justice and keep our children safe.”
According to the Complaint filed today in Manhattan federal court[1]:
From in or about November 2015, up to and including at least in or about January 2017, ALFRED PABON, an Emergency Medical Technician for the Fire Department of the City of New York, posted images and videos containing child pornography in chat groups of an online messaging application. The chat groups were used almost exclusively to trade child pornography, discuss child pornography, and/or discuss engaging in sexual activity with minors. In or about December 2015, PABON exchanged private messages through the online messaging application with an undercover HSI Special Agent (“UC-1”). Through these exchanges, PABON, using a particular account username (the “Pabon Account”) indicated to UC-1 that he was interested in a trip to Mexico and was looking for “something teenish.” PABON posted an image of two girls, who appear to be prepubescent minors, posing nude on a bed as an example of the type of girls in whom he was interested. In August 2016, a second undercover HSI Special Agent (“UC-2”) observed additional postings by PABON in another online chat room, at least one of which appeared to include an image of child pornography. UC-2 later used a link that PABON had posted to download approximately 33 videos, most of which contained child pornography.
PABON was arrested at his residence in the Bronx, New York. On the morning of his arrest, he admitted to law enforcement that he was the user of the Pabon Account and had used that account to copy and forward images and videos containing child pornography as recently as within the last month.
* * *
ALFRED PABON, 49, of the Bronx, New York, is charged with one count of distribution and receipt of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, and one count of possession of child pornography, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Any individuals who believe they have information concerning ALFRED PABON that may be relevant to the investigation should contact HSI at its toll-free hotline: 1-866-DHS-2ICE; TTY for hearing impaired: (802) 872-6196. This hotline is staffed around-the-clock by investigators.
Mr. Bharara praised the efforts of HSI in this investigation. He added that the investigation is continuing.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Lara Pomerantz is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
El Cerrito Resident Pleads Guilty to Stealing IDs and U.S. Treasury ChecksRead the Press Release
OAKLAND – An El Cerrito man pleaded guilty today to aggravated identity theft and conspiring to steal government funds, announced U.S. Attorney Brian J. Stretch and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the plea agreement, Brandon Robinson, 35, conspired to steal names of deceased individuals and to use them to file federal tax returns seeking refunds. Robinson paid cashiers at stores in the Richmond-area to cash the fraudulently obtained refund checks. Robinson also cashed stolen tax refund and social security benefit checks that were intended for other individuals. Robinson admitted that he and his co-conspirators attempted to cash more than $500,000 in fraudulently obtained and stolen checks.
Sentencing is scheduled for May 23, 2017. Robinson faces a statutory maximum sentence of five years in prison for the conspiracy count and a mandatory minimum sentence of two years in prison for the aggravated identity theft count. Robinson also faces a period of supervised release, restitution, and monetary penalties.
U.S. Attorney Stretch and Deputy Assistant Attorney General Goldberg commended special agents of Internal Revenue Service–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera, and Trial Attorney Gregory Bernstein of the Tax Division, who are prosecuting the case.
Dona Ana County Man Sentenced to Ten Years for Federal Drug Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Guillermo Ortega, 44, of Las Cruces, N.M., was sentenced today in federal court to 120 months in federal prison followed by four years of supervised release for his conviction on drug trafficking and firearms charges.
Guillermo Ortega and co-defendants Salvador Ortega, 36, and Steven Roman, 29, both of Las Cruces, were charged with methamphetamine trafficking offenses in a four-count indictment filed on June 18, 2014. The indictment charged Salvador Ortega and Guillermo Ortega with distributing methamphetamine on April 2, 2014; Guillermo Ortega and Roman with distributing methamphetamine on April 2, 2014; and Guillermo Ortega with distributing methamphetamine on April 2, 2014. It also charged Guillermo Ortega with being a felon in possession of a firearm and ammunition on April 14, 2014. According to the indictment, the three men committed these crimes in Doña Ana County, N.M.
- Ortega pled guilty on Sept. 3, 2015, and admitted that on April 2, 2014, he and his co-defendants distributed 95 grams of methamphetamine to a person working with law enforcement. further admitted that on April 14, 2014, he was prohibited from being in possession of firearms or ammunition because of his status as a convicted felon.
On Jan. 21, 2016, Salvador Ortega entered a guilty plea to Count 1 of the indictment without the benefit of a plea agreement. Salvador Ortega was sentenced on Dec. 1, 2016, to 24 months in prison followed by three years of supervised release.
Roman pled guilty to Count 2 of the indictment on Sept. 23, 2015, and admitted distributing 57 grams of methamphetamine to a person working with law enforcement on April 2, 2014. Roman admitted that, after being contacted by an individual who wanted to purchase methamphetamine, he contacted Guillermo Ortega and arranged the deal. Roman was sentenced on May 9, 2016, to 77 months in prison followed by four years of supervised release.
This case was investigated by the Las Cruces office of the FBI. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Dexter Man Pleads Guilty to Cocaine Conspiracy ChargeRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Donald Vigue, 42, of Dexter, Maine, pleaded guilty today U.S. District Court to conspiring to distribute cocaine.
According to court records, Vigue participated for several years in a conspiracy run by Roger Belanger and his daughter, Kelli Mujo, that existed between January 2002 and November 2014, to acquire cocaine in Rhode Island and distribute it in the Dexter area. Vigue is the ninth person to plead guilty in the investigation. On August 19, 2016, Belanger and Mujo were convicted following a jury trial.
The defendant faces up to 20 years in prison, a $1,000,000 fine and between three years and life on supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency, with assistance provided by the Dexter Police Department, the Penobscot County Sheriff’s Office and the Piscataquis County Sheriff’s Office.
Defendants Charged in $5 Million Investor Fraud Scheme Relating to Fuel Cell CompanyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an indictment charging GEORGE DOUMANIS, EMANUEL PANTELAKIS, a/k/a “Manny,” and DANNY PRATTE with orchestrating a scheme to defraud investors of at least approximately $5 million.
DOUMANIS and PANTELAKIS will be presented and arraigned later today before United States Magistrate Judge Gabriel W. Gorenstein. PRATTE is expected to surrender today to the FBI in Denver, Colorado. United States District Judge Andrew L. Carter Jr. will hold an initial conference in the case on March 6, 2017, at 1:00 pm.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, George Doumanis, Emanuel Pantelakis, and Danny Pratte deceived investors with a fraudulent plan to invest in fuel cell technology. In reality, all they were allegedly fueling was their own greed-inspired scheme to bilk investors and use the money to pay credit card bills, for a Mercedes Benz, and a horse trainer. Doumanis and Pantelakis allegedly committed their fraud scheme after being banned for life from the securities industry by the SEC and FINRA.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Doumanis, Pantelakis, and Pratte are charged with defrauding Terminus investors by selling them shares of a product that was, essentially, nonexistent. They allegedly did so while intentionally misrepresenting to investors the rate of commission individuals acting as broker-dealers would receive for Terminus stock sold. In the end, as alleged, nearly three quarters of the money obtained by investors was swindled for the collective benefit of those involved. Despite the fact that Doumanis and Pantelakis had been disciplined in the past for their role in other fraudulent securities-related activities, they allegedly participated in this scheme undeterred. Investors deserve to be told the truth, plain and simple, and we’re committed to uncovering it.”
According to the Indictment unsealed today in Manhattan federal court:[1]
In September 2003, DOUMANIS was convicted in the United States District Court for the Southern District of Florida of conspiring to commit securities fraud, wire fraud, and mail fraud. In addition, in or about June 2005, as a result of an action brought by the United States Securities and Exchange Commission (“SEC”), DOUMANIS was permanently barred from, among other things, participating in any offering of any penny stock and from any association with any securities broker or dealer.
In March 2008, PANTELAKIS was permanently barred by the Financial Industry Regulatory Authority (“FINRA”), a self-regulatory body for the securities industry, from association with any FINRA member in any capacity, following allegations that he “fraudulently misrepresented and omitted material facts to public customers in connection with the sale of securities.”
From at least in or about February 2008 through at least in or about 2014, DOUMANIS, PANTELAKIS, and PRATTE engaged in a fraudulent scheme to defraud investors by inducing them to purchase shares of Terminus Energy, Inc. (“Terminus”), through false and misleading representations and then misappropriating the victims’ funds for their own purposes. PRATTE was the Chief Executive Officer of Terminus, a company that was purportedly working to develop a “fuel cell,” a type of alternative energy source. As set forth in more detail below, contrary to representations made to potential investors, Terminus never had a working fuel cell prototype, was never close to manufacturing a commercially viable fuel cell, and never sold any fuel cells.
Between 2008 and 2011, Terminus entered into a number of contractual agreements with third parties, the stated purpose of which was to develop a fuel cell. In each and every case, however, Terminus made only one or two payments on these contracts before ceasing payments. As a result, the third parties ceased work pursuant to the contracts and terminated the agreements.
Notwithstanding the utter lack of progress and the cancellation of Terminus’s contractual relationships, DOUMANIS, PANTELAKIS, and PRATTE drafted and caused Terminus to distribute false and misleading press releases, private placement memorandums, business plans, and other documents that touted the existence of a fuel cell, the existence of Terminus’s contractual relationships, and the use of investor proceeds to make payments on the contracts.
In addition, DOUMANIS, PANTELAKIS, and PRATTE drafted and distributed private placement memorandums that falsely stated that registered broker-dealers would be paid no more than a 10 percent sales commission plus three percent unaccountable expenses for all Terminus shares sold through their efforts. In truth, unregistered salespeople sold Terminus shares in return for undisclosed commissions far in excess of 13 percent.
Rather than use investor funds as promised, DOUMANIS, PANTELAKIS, and PRATTE misappropriated the money for their own purposes. Of the more than approximately $5 million raised from investors: (a) PRATTE received at least $990,000; DOUMANIS, certain entities affiliated with DOUMANIS, and certain of his family members received at least $570,000, a portion of which was utilized for items such as making payments to various credit cards and payments toward DOUMANIS’s residential mortgage; (c) PANTELAKIS and certain of his family members received at least $420,000, a portion of which was utilized to make payments to various credit cards and for his wife’s Mercedes-Benz; (d) one unregistered salesperson (the “Salesperson”) received payments of at least $540,000, an entity associated with the Salesperson received at least $100,000, and a horse trainer working for the Salesperson received at least $132,000; and (e) other unregistered brokers selling Terminus shares collectively received payments of at least $1,019,624. Thus, in total more than 70% of the investor funds obtained by Terminus were misappropriated by DOUMANIS, PANTELAKIS, and PRATTE, the defendants, or used to pay commissions to unregistered salespeople.
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DOUMANIS, 58, of Rocky Point, New York, was arrested today in Suffolk County. PANTELAKIS, 42, of Flushing, New York, was arrested today in Queens. PRATTE, 62, of Columbia, Missouri, is expected to turn himself in to the FBI in Denver, Colorado, today. Each of the defendants are charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison; and one count of securities fraud, one count of conspiracy to commit mail and wire fraud, and one count of wire fraud, each of which carries a maximum sentence of 20 years. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Bharara praised the investigative work of the FBI, and thanked the SEC, which has filed civil charges in a separate action.
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 Rebecca G. Mermelstein and Christine I. Magdo are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Columbus, Ohio woman sentenced for transporting stolen items across state linesRead the Press Release
WHEELING, WEST VIRGINIA – Marilyn Whatley, 38, of Columbus, Ohio was sentenced to 21 months incarceration for transporting stolen goods across state lines, Acting United States Attorney Betsy Steinfeld Jividen, announced.Whatley conspired to steal smart phones, tablets, head phones, game stations, and computers from Walmart, Target, and Meijer stores in eight different states, including West Virginia and Ohio from January to June 2015. The value of the stolen goods are estimated to be in excess of $500,000. She pled guilty to one count of “Conspiracy to Transport Stolen Goods in Interstate Commerce” in December 2016.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Columbus Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Check Casher Sentenced to Prison for Cashing Fraudulently Obtained Tax Refund ChecksRead the Press Release
A Columbus, Georgia resident was sentenced to 18 months in prison today for his role in a stolen identity refund fraud scheme, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney G.F. Peterman III for the Middle District of Georgia.
According to documents filed with the court, George Rowell, 61, owned and operated Big O’s Package Store in Columbus, which offered check-cashing services. Between February 2012 and March 2013, federal agents approached Rowell about cashing fraudulently obtained refund checks for people whose names did not appear on the checks. Despite being warned, Rowell cashed checks in bulk for several co-conspirators even though the checks were not in their names. Rowell also allowed at least one co-conspirator to forge in front of him the signature of the taxpayers to whom the checks were made payable. Rowell charged his co-conspirators a 10 percent fee and in 2013 cashed over 250 refund checks worth more than $645,000.
In addition to the term of prison imposed, Rowell was ordered to serve three years of supervised release and to pay restitution to the Internal Revenue Service (IRS) in the amount of $645,343.03. Rowell pleaded guilty to conspiring to commit theft of public money in August 2016.
Rowell’s co-conspirators previously pleaded guilty and were sentenced to prison. In Dec. 2016, Tonya Alexander was sentenced to serve 37 months in prison. In September 2015, Keisha Lanier was sentenced to serve 15 years in prison. In August 2015, Tracy Mitchell was sentenced to serve 13 years and three months in prison.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Peterman commended special agents of IRS-Criminal Investigation and the U.S. Secret Service, who conducted the investigation, and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Check Casher Sentenced to Prison for Cashing Fraudulently Obtained Tax Refund ChecksRead the Press Release
WASHINGTON – A Columbus, Georgia resident was sentenced to 18 months in prison today for his role in a stolen identity refund fraud scheme, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney G.F. Peterman III for the Middle District of Georgia.
According to documents filed with the court, George Rowell, 61, owned and operated Big O’s Package Store in Columbus, which offered check-cashing services. Between February 2012 and March 2013, federal agents approached Rowell about cashing fraudulently obtained refund checks for people whose names did not appear on the checks. Despite being warned, Rowell cashed checks in bulk for several co-conspirators even though the checks were not in their names. Rowell also allowed at least one co-conspirator to forge in front of him the signature of the taxpayers to whom the checks were made payable. Rowell charged his co-conspirators a 10 percent fee and in 2013 cashed over 250 refund checks worth more than $645,000.
In addition to the term of prison imposed, Rowell was ordered to serve three years of supervised release and to pay restitution to the Internal Revenue Service (IRS) in the amount of $645,343.03. Rowell pleaded guilty to conspiring to commit theft of public money in August 2016.
Rowell’s co-conspirators previously pleaded guilty and were sentenced to prison. In Dec. 2016, Tonya Alexander was sentenced to serve 37 months in prison. In September 2015, Keisha Lanier was sentenced to serve 15 years in prison. In August 2015, Tracy Mitchell was sentenced to serve 13 years and 3 months in prison.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Peterman commended special agents of IRS-Criminal Investigation and the U.S. Secret Service, who conducted the investigation, and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Camden Man Sentenced to over 11 Years in Federal Prison for Drug TraffickingRead the Press Release
El Dorado, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Orlando Deshun Mitchell, (aka “Stunna”), age 40, of Camden, was sentenced today to 140 months in federal prison followed by four (4) years of supervised release on one count of Distribution of More Than 28 Grams of Cocaine Base. The Honorable Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, on September 5, 2013, investigators with the 13th Judicial Drug Task Force and the Federal Bureau of Investigation arranged for a controlled purchase of cocaine base from Orlando Mitchell. On that date, a confidential source made contact with Mitchell who agreed to provide him with three (3) ounces of cocaine for $3,000. After the two met and the transaction was completed, officers submitted the suspected crack cocaine to the Arkansas State Crime Lab where it was determined to be a total of 81.08 grams of cocaine base.
Mitchell was named in a federal indictment in July, 2015 and pleaded guilty to the charge in February, 2016.
This case was investigated by the Federal Bureau of Investigations and the 13th Judicial Drug Task Force. Assistant United States Attorney Benjamin Wulff prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
California Man Pleads Guilty to Stealing IDs and U.S. Treasury ChecksRead the Press Release
An El Cerrito, California man pleaded guilty today to aggravated identity theft and conspiring to steal government funds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Brian J. Stretch for the Northern District of California.
According to the plea agreement, Brandon Robinson, 35, and his co-conspirators, stole names of deceased individuals and used them to file federal tax returns seeking refunds. Robinson paid cashiers at stores in the Richmond-area to cash the fraudulently obtained refund checks. Robinson also cashed stolen tax refund and social security benefit checks that were intended for other individuals. Robinson admitted that he and his co-conspirators attempted to cash more than $500,000 in fraudulently obtained and stolen checks.
Sentencing is scheduled for May 23. Robinson faces a statutory maximum sentence of five years in prison for the conspiracy count and a mandatory minimum sentence of two years in prison for the aggravated identity theft count. Robinson also faces a period of supervised release, restitution and monetary penalties.
Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch commended special agents of Internal Revenue Service–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera, and Trial Attorney Gregory Bernstein of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
California Man Agrees to Plead Guilty to Plotting Violent Attacks and Buying Firearms for Shooter in San Bernardino Terrorist AttackRead the Press Release
Enrique Marquez Jr., 25, of Riverside, California – longtime friend of Syed Rizwan Farook, the male shooter in the San Bernardino, California terrorist attack – agreed to plead guilty to conspiring with Farook in 2011 and 2012 to provide material support to terrorists.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Eileen M. Decker for the Central District of California and Assistant Director in Charge Deirdre Fike of the FBI's Los Angeles Field Office. Marquez entered into a plea agreement that was filed today in U.S. District Court. The defendant is scheduled to enter his guilty pleas this Thursday at 12:00 p.m. EST, 9:00 a.m. PST before U.S. District Judge Jesus Bernal.
“With this plea, Enrique Marquez Jr. will be held accountable for his role in plotting terrorist attacks on American soil with Sayed Rizwan Farook in 2011 and 2012, attacks which were, fortunately, not carried out,” said Acting Assistant Attorney General McCord. “Marquez also admitted to making a false statement as part of his straw purchases of weapons for Farook – weapons that were eventually used to carry out the deadly terrorist attack in San Bernardino. Holding those who threaten our national security and public safety accountable will always be the highest priority of the National Security Division and I want to thank all of the agents, analysts, and prosecutors who are responsible for this result.”
“This defendant collaborated with and purchased weapons for a man who carried out the devastating December 2, 2015 terrorist attack that took the lives of 14 innocent people, wounded nearly two dozen, and impacted our entire nation,” said U.S. Attorney Decker. “While his earlier plans to attack a school and a freeway were not executed, the planning clearly laid the foundation for the 2015 attack on the Inland Regional Center. When this defendant pleads guilty, all four individuals charged, including three of the shooters’ family members, will be convicted. Everyone in the U.S. Attorney’s Office – and everyone across the Department of Justice and the broader law enforcement community – brought their expertise, dedication, and tireless effort to bear on this investigation. We are, and will continue to be, deeply committed to pursuing the prosecution of everyone who was even remotely related to the San Bernardino attack. As these criminal cases begin to resolve, we hope that the victims of the attack and the community of San Bernardino are comforted in some small way by the knowledge that the Department of Justice and the law enforcement community stands with them in this investigation, resolute and committed to justice.”
“Defendant Marquez purchased two of the weapons used in the San Bernardino terror attack to murder 14 innocent people and seriously injure 22 others – a horrific act which led to great suffering and a lifetime of pain for the survivors and for the loved ones of those murdered,” said Assistant Director in Charge Fike. “Defendant Marquez provided these weapons to his associate, Syed Rizwan Farook, with whom he conspired to plot chilling terror attacks. I’m gratified that this guilty plea will spare the victims and the San Bernardino community from having to relive the gruesome details of the attack during what would likely be a lengthy trial.”
According to the plea agreement, Marquez agreed to plead guilty to providing material support and resources to terrorists, including weapons, explosives and personnel. Marquez admitted in the plea agreement that he conspired with Farook in 2011 and 2012 to attack Riverside City College (RCC) and commuter traffic on the 91 Freeway. Marquez also agreed to plead guilty to making false statements in connection with the acquisition of a firearm for being the “straw buyer” of two assault rifles that were used in the shooting rampage at the San Bernardino Inland Regional Center (IRC) on Dec. 2, 2015.
Marquez was arrested about two weeks after the attack at the IRC, which was perpetrated by Farook, and his wife, Tashfeen Malik, who were killed in a shootout with law enforcement hours after the attack. The investigation into the deadly shooting quickly uncovered evidence that, in 2011 and 2012, Marquez purchased two rifles that Farook and Malik later used in the attack that killed 14 people and wounded 22 others at the IRC. A law enforcement officer was also wounded during the shootout that afternoon.
According to the plea agreement, Farook paid Marquez for the rifles. Marquez also discussed with Farook the use of radio-controlled improvised explosive devices (IEDs) during the planned attacks on the RCC and State Route 91. Marquez purchased Christmas tree lightbulbs and a container of smokeless powder for use in manufacturing IEDs.
Once he pleads guilty, Marquez will face a statutory maximum sentence of 25 years in federal prison. Marquez, who did not personally participate in the attack on the IRC, has remained in custody since he was ordered detained at his initial court appearance in this case on Dec. 17, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Today’s plea agreement is the result of an investigation by members of the Inland Empire FBI-Joint Terrorism Task Force in California, including agents and detectives from the FBI; the San Bernardino Police Department; the San Bernardino County District Attorney’s Office; the San Bernardino County Sheriff’s Department; the Chino Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Riverside County Sheriff’s Department; the Riverside Police Department; the Ontario Police Department; the Redlands Police Department; and the Corona Police Department.
Also, as a result of the investigation into the IRC attack, three people have pleaded guilty to being part of a sham marriage scheme in which a Russian woman “married” Marquez to obtain immigration benefits. Syed Raheel Farook, the brother of IRC attacker Syed Rizwan Farook; Tatiana Farook, Syed Raheel Farook’s wife; and Mariya Chernykh, Tatiana Farook’s sister, pleaded guilty earlier this year to immigration fraud charges and admitted to being part of a conspiracy in which Chernykh paid Marquez to enter into a bogus marriage.
The two criminal cases are being prosecuted by Assistant U.S. Attorneys Jay H. Robinson, Melanie Sartoris and Deirdre Z. Eliot of the Terrorism and Export Crimes Section. Trial Attorney C. Alexandria Bogle of the National Security Division’s Counterterrorism Section provided substantial assistance.
Marquez Plea Agreement Bushkill Man Sentenced for High Speed ChaseRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Christopher Fish, age 35, of Bushkill, Pennsylvania, was sentenced on February 10, 2017, by United States District Court Judge Robert D. Mariani to four months’ home-confinement and two years’ probation for fleeing and eluding rangers at the Delaware Water Gap National Recreation Area.
According to United States Attorney Bruce D. Brander, Fish engaged in a high speed chase while operating a Black Honda Shadow motorcycle within the National Recreation Area, willfully failed to stop, and attempted to elude a pursuing police officer causing danger to other officers and pedestrians.
The investigation was conducted by the National Park Service. Assistant U.S. Attorney Evan Gotlob prosecuted the case.
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Bronx Man Sentenced to 25 Years in Prison for Production of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that KELVIN ACOSTA was sentenced to 300 months in prison and supervised release for 10 years for producing child pornography. ACOSTA pled guilty on September 26, 2016, before U.S. District Judge Paul A. Crotty, who also imposed today’s sentence. In imposing sentence, the Court characterized the defendant’s misconduct as the “most deplorable, depraved act that I can imagine.”
U.S. Attorney Preet Bharara stated: “For years, Kelvin Acosta preyed on our community’s youth by tricking them into supplying personal information, using that information to hack their email accounts, and then extorting them into producing child pornography for him. Today, he has been sentenced to federal prison for his predatory criminal behavior.”
According to documents filed in this case and statements made in related court proceedings:
From at least December 2013 through November 2015, KELVIN ACOSTA engaged in a pattern of “sextortion” by hacking into email accounts belonging to teenage girls and extorting them into producing child pornography for him. ACOSTA did so by messaging the girls on Facebook and tricking them into revealing personal information, which he exploited to hack their email accounts. ACOSTA then told his minor victims that he had hacked their email accounts and found compromising material (sex videos and/or nude photographs), which he threatened to send their family, friends, and schools – unless they created child pornography for him via video chat and/or paid him money.
On March 29, 2016, ACOSTA was arrested in the Bronx. On that day, ACOSTA admitted that, for years, he had hacked and extorted girls and women, aged 13 to 25; he had exploited about 40 to 50 accounts of minors that had nude photographs or sex videos, which he viewed; he had about 10 to 20 minors produce child pornography for him; and he had extorted at least three victims – including at least one minor – into bringing him money.
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ACOSTA, 27, of the Bronx, New York, pled guilty on September 26, 2016, to one count of sexual exploitation of a child, in violation of Title 18, United States Code, Sections 2251(a), (e), and 2.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the New York City Police Department, and thanked the Brooklyn District Attorney’s Office for its valuable cooperation in this matter.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
17-050
Bridgeport Resident Pleads Guilty to Ecstasy Trafficking ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that COLLIN FLETCHER, 52, last residing in Bridgeport, pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of conspiracy to distribute, and to possess with intent to distribute, MDA and MDMA.
MDA (Methylenedioxyamphetamine) is an analogue of MDMA (Methylenedioxymethamphetamine), and they are both commonly known as “ecstasy”.
According to court documents and statements made in court, FLETCHER conspired with others to sell ecstasy to customers in Connecticut, New York and elsewhere. On October 27, 2016, and again on November 1, 2016, investigators made two controlled purchases of ecstasy from FLETCHER.
FLETCHER was arrested on November 18, 2016, after he attempted to sell approximately 10,000 capsules of ecstasy to an undercover officer. The capsules had a combined weight of approximately 923 grams of MDA.
Chief Judge Hall scheduled sentencing for May 12, 2017, at which time FLETCHER faces a maximum term of imprisonment of 20 years. FLETCHER, a citizen of Jamaica, has been detained since his arrest.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, which includes officers from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Avi Perry.
Berkeley County woman pleads guilty to her role in a heroin distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michelle Zimmerman, 28, of Hedgesville, West Virginia, was convicted of racketeering, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Zimmerman admitted to traveling between Maryland and West Virginia to aid in a heroin distribution operation in June 2016.
Zimmerman pled guilty to one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering.” 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 Anna Z. Krasinski prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Artesia Man Sentenced to Five Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Londie Tarango, 23, of Artesia, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 60 months in prison for his methamphetamine trafficking conviction. Tarango will be on supervised release for three years after completing his prison sentence.
Tarango was arrested on Oct. 6, 2015, on an indictment charging him with distributing methamphetamine on Aug. 1, 2014, in Eddy County, N.M. The indictment included forfeiture allegations seeking forfeiture of $2,400 in proceeds of the drug trafficking activity charged to the United States. On May 5, 2016, Tarango pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force. Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
23 Arrested for Distributing Heroin and FentanylRead the Press Release
BOSTON – Twenty-three men and women involved in two drug trafficking organizations operating in Taunton and Boston were arrested and charged today in connection with distributing heroin and fentanyl. In addition, the Drug Enforcement Administration, along with state and local partners, conducted 12 searches in Fall River, New Bedford, Bridgewater, Boston, Brighton and Providence.
According to court documents, Fernando Rivera-Rodriguez, 31, of Boston and Fernando Hernandez, 42, of Providence, RI, allegedly led drug trafficking organizations in Boston and Taunton, respectively. Rivera-Rodriguez and Hernandez were charged along with 21 others for conspiring to distribute heroin and fentanyl from the summer of 2016 through the present. The defendants were held following initial appearances in U.S. District Court in Boston this afternoon. Yeurvs Tejeda and Carlos Gonzalez-Figueroa remain fugitives at large.
“Today’s arrests will help stem the flow of heroin and fentanyl into our communities,” said Acting U.S. Attorney William D. Weinreb. “The defendants in this case knew the drugs that they were distributing were potent and potentially lethal, yet they continued to brazenly ignore the dangers and even expand their reach into Maine.”
“DEA is committed to investigating and dismantling large-scale violent, fentanyl and heroin drug trafficking organizations (DTO), like these operating in the South Coast and Boston area,” said Special Agent in Charge Michael J. Ferguson. “As we all know, drug trafficking, along with the gun and physical violence that often accompanies it, is a serious threat to our families and our communities. Those that are suffering from a fentanyl and heroin substance use disorder need treatment and recovery but those that distribute and profit from spreading this poison need to be held accountable. This investigation demonstrates the strength of collaborative local, state and federal law enforcement efforts in Massachusetts and our strong partnership with the U.S. Attorney’s Office to seek and bring to justice anyone who engages in these crimes.”
“The greater Taunton area has been one of the regions hardest hit by opioid trafficking and overdose deaths,” said Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police. “We in law enforcement focus long-term interdiction efforts, like this operation, as frontal attacks on the hot zones of heroin and fentanyl trafficking. Today’s efforts by federal, state and local police and the U.S. Attorney’s Office will impact the heroin and fentanyl trade in Bristol County.”
The following are charged with conspiracy to distribute heroin and fentanyl:
Fernando Rivera-Rodriguez, a/k/a Alex, a/k/a Antonio Moraima, 31, of Boston;
Glendalee Rodriguez, 33, of Fall River;
Juan Morales-Ortiz, a/k/a Josiel, 27, of Boston;
Jancer Soto, 25, of Boston;
Jose Camacho, a/k/a Traga, 37, of Boston;
Wilmi Hernandez-Diaz, 21, of Boston;
Yeurys Tejeda, a/k/a Santos, 28, of Boston;
Jose R. Narvaez-Arroyo, a/k/a Pacha, 35, of Boston;
Jeffrey Freitas, 31, of Bridgewater;
Isis Y. Lugo-Guerrero, a/k/a Izzy, 44, of Boston;
Jose Negron, a/k/a Edwin Padilla, a/k/a Luisito Bulto, 36, of Boston;
Malvin Berrios, a/k/a Bori, 34, of Boston;
Roger Longmire, 34, of Taunton;
Stephanie O’Sullivan, 30, of Taunton;
Omar Guzman, 39, of Taunton;
Marisa Ruiz, 32, of Taunton;
John Paul Tanguay, 33, of Taunton;
Daniel Wren, 31, of Taunton;
David Tejeda, 34, of New Bedford;
Fernando Hernandez, a/k/a Mora, 42, of Providence, RI;
Jose Arias, 21, of Providence, RI;
Carlos Miguel Gonzalez-Figueroa, 32, of Providence, RI; and
Crystal Rivera, 30, of Providence, RI.
Hernandez allegedly ran a heroin and fentanyl trafficking organization in Taunton, assisted by Arias, Ruiz, Guzman, and Rivera. The organization sold heroin and fentanyl to customers including Tanguay, Wren, O’Sullivan, and Longmire, who also re-distributed a portion of the drugs. The complaint further alleges that Hernandez obtained drugs from a network of suppliers that included Rivera-Rodriguez and Figueroa.
According to the complaint affidavit, Rivera-Rodriguez operated a drug trafficking organization in Boston, and was assisted by Hernadez-Diaz, Soto, Morales-Ortiz, Rodriguez, Lugo-Guerrero, Negron, Camacho and Yeurys Tejeda. Their customers included David Tejeda, Berrios, and Freitas. The affidavit alleges that Arroyo brokered a kilogram drug deal for Rivera-Rodriguez and that Rivera-Rodriguez and his associates obtained a significant quantity of illegal drugs by robbing other drug traffickers.
A court-authorized wiretap revealed the callous way in which the defendants talked about the deadly effects of the drugs they were distributing. For example, according to the affidavit, Fernando Rivera-Rodriguez, promoted his heroin by telling a drug distributor, that “when you see those people being knocked over . . . you are going to call me back.” The drug distributor did call Rivera-Rodriguez back complaining that the heroin was deadly, saying: “That stuff is not even drug[s]. That is going to kill someone. I think that guy died.” When Rivera-Rodriguez asked, “Did it knock him over?” the distributor said, “I believe so,” and added, “. . . that stuff is that fentanyl. That could kill you.” In response, Rivera-Rodriguez simply said, “Nah, so it’s okay.”
The wiretap also revealed Rivera-Rodriguez boasting about robbing cash and jewelry. For example, Rivera-Rodriguez told Yeurys Tejeda, “We took a little house and we took 13,000 and like three chains, man, and a couple of bracelets, right there in Saugus. And a little while ago, we took another one and took 7,000 from some people also.” Federal agents believe that Rivera-Rodriguez was telling Santos about robbing two houses and stealing over $20,000 in cash and jewelry.
The charging statute provides a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Fall River Police Chief Daniel S. Racine; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William B. Evans; and Bristol Country District Attorney Thomas M. Quinn, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
13 February 2017
Two defendants appear in federal court in Huntington for drug crimesRead the Press Release
HUNTINGTON, W.Va. – Two defendants appeared in federal court today for drug crimes, announced United States Attorney Carol Casto. Gerald Harris, 23, of Huntington, was sentenced to eight months in federal prison for distribution of heroin. In a separate prosecution, Ashara Mayes, 29, of Decatur, Georgia, pleaded guilty to possession with intent to distribute cocaine.
On March 22, 2016, Harris sold approximately 11.8 grams of heroin to a confidential informant working with the Drug Enforcement Administration Task Force. Harris met the confidential informant on Rear Monroe Avenue in Huntington to conduct the drug deal.
In a separate prosecution, on February 25, 2016, Mayes received a package containing cocaine and crack from codefendant Trevor Bethel in Atlanta. Mayes then transported the package to Huntington for Bethel in exchange for $500. After Mayes arrived in Huntington, she met Bethel and took the package to the residence of Jarrell Johnson, another codefendant, located on Rear 9th Avenue in Huntington. Laboratory analysis found that the package contained over 160 grams of cocaine and over 11 grams of crack. Mayes faces up to 20 years in federal prison when she is sentenced on May 22, 2017. For his part in the drug conspiracy, Johnson was sentenced to five years in federal prison. Bethel remains a fugitive.
The Drug Enforcement Administration Task Force conducted the Harris investigation. The investigation of Mayes was conducted by the Drug Enforcement Administration. Assistant United States Attorney Gregory McVey is handling these prosecutions. Chief United States District Judge Robert C. Chambers presided over the hearings.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Two Pennsylvania Men Plead Guilty to Conspiring to File Federal Tax Returns Using Stolen IDsRead the Press Release
Two Philadelphia, Pennsylvania men pleaded guilty to conspiring to file federal tax returns using stolen IDs, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to the indictment and information presented to the court, Moise Olivier, 27, and Hans Pierre, 28, opened bank accounts in the names of “Moise Olivier Tax Service” and “Hans Pierre Tax Service” even though neither had a tax service. Using stolen personal ID information, members of the conspiracy electronically filed returns seeking fraudulent refunds and directed that the refunds be deposited by the Internal Revenue Service (IRS) into the Moise Olivier and Hans Pierre Tax Service bank accounts. Olivier and Pierre withdrew cash from the accounts to provide to other co-conspirators. Olivier admitted to causing a tax loss of $181,805.10. Pierre admitted to causing a tax loss of $95,157.41.
Olivier is scheduled to be sentenced on May 2, and Pierre, who pleaded guilty on Feb. 8, is scheduled to be sentenced on April 27, before U.S. District Court Judge John R. Padova. Both face statutory maximum sentences of 10 years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of Internal Revenue Service-Criminal Investigation and the FBI, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Eric B. Powers of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Two Men Charged with Racketeering, Including A 2013 Mob Murder and an Attempted Murder of A Bonanno SoldierRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today the filing of an Indictment charging CHRISTOPHER LONDONIO and TERRANCE CALDWELL with offenses related to their alleged role in the November 15, 2013, murder of Michael Meldish, as well as their participation in a long-running racketeering conspiracy composed of leaders, members, and associates of La Cosa Nostra, also known as the “Mafia.” LONDONIO and CALDWELL are charged with racketeering conspiracy, conspiracy to commit murder, murder, and firearms offenses. CALDWELL is also charged with assault and attempted murder in aid of racketeering, in connection with his alleged role in the shooting of a Bonanno Family member on May 29, 2013.
CALDWELL was presented last Friday, February 10, 2017, before the Honorable Lisa Margaret Smith at the United States Courthouse in White Plains, New York. LONDONIO was already in custody on state charges and will be transferred to federal custody and is expected to be presented in White Plains federal court today. The case is assigned to United States District Judge Nelson S. Román.
An initial pre-trial conference is scheduled for February 15 at 1:45 p.m. before Judge Román.
Manhattan U.S. Attorney Preet Bharara said: “The mob continues to kill and maim in the name of La Cosa Nostra, and as alleged, Christopher Londonio and Terrance Caldwell did just that. In a misguided show of allegiance to this violent way of life, Londonio and Caldwell allegedly murdered Michael Meldish and attempted to kill a Bonanno Family soldier. We thank the FBI, the NYPD, and the Bronx County District Attorney’s Office for their dedication that led to the federal racketeering charges announced today.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Hollywood and popular fiction almost romanticize the mob, so much so the general public may not know it exists in real life anymore. However, the crimes members are accused of taking part in are violent and all too real for their victims. The men charged in this case allegedly committed murder, robbery, dealing illegal drugs and extortion to only name a few. The FBI Organized Crime Task Force investigates these families and their string of criminal behavior each day, proving the mob is still a legitimate threat to the community.”
NYPD Commissioner James P. O’Neill said: “This is further proof that the mob’s rackets, schemes, and violence are persistent. As alleged, the defendants engaged in ruthless violence, including the murder of Michael Meldish in the Bronx and the attempted murder of a Bonanno solider in Manhattan both in 2013. Our thanks to the thorough work of NYPD detectives, FBI agents, and prosecutors in the Southern District that led to today’s indictment.”
According to the allegations in the Indictment, which was filed in White Plains federal court on February 8, 2017[1]:
La Cosa Nostra is composed of leaders, members, and associates who work together and coordinate to engage in a multitude of criminal activities. La Cosa Nostra operates through entities known as “Families.” In the New York City area, those families include the Genovese, Gambino, Luchese, Bonanno, Colombo, and Decavalcante Families. Each Family operates through groups of individuals known as “crews” and “regimes.” Each “crew” has as its leader a person known as a “Caporegime,” “Capo,” “Captain,” or “Skipper,” who is responsible for supervising the criminal activities of his crew and providing “Soldiers” and associates with support and protection. In return, the Capo typically receives a share of the illegal earnings of each of his crew’s Soldiers and associates, which is sometimes referred to as Atribute.@
Each crew consists of “made” members, sometimes known as “Soldiers,” “wiseguys,” “friends of ours,” and “good fellows.” Soldiers are aided in their criminal endeavors by other trusted individuals, known as “associates,” who sometimes are referred to as “connected” or identified as “with” a Soldier or other member of the Family. Associates participate in the various activities of the crew and its members. In order for an associate to become a made member of the Family, the associate must first be of Italian descent and typically needs to demonstrate the ability to generate income for the Family and/or the willingness to commit acts of violence.
From in or about 2011 up to and including in or about 2017, LONDONIO and CALDWELL, along with other members and associates of La Cosa Nostra, committed a wide range of crimes, including murder, attempted murder, assault, robbery, extortion, gambling, and narcotics trafficking. In particular, and as charged in the Indictment, on May 29, 2013, CALDWELL attempted to murder a Bonanno Soldier in the vicinity of First Avenue and 111th Street, in Manhattan. Separately, and as also charged in the Indictment, on November 15, 2013, LONDONIO and CALDWELL together murdered Michael Meldish in the vicinity of Baisley Avenue and Ellsworth Avenue in the Bronx.
* * *
CHRISTOPHER LONDONIO, 43, of Hartsdale, New York, and TERRANCE CALDWELL, 58, of Manhattan, New York, are each charged with conspiracy to commit racketeering, in violation of Title 18, United States Code, Section 1962(d), conspiracy to commit murder in aid of racketeering, in violation of Title 18, United States Code, Section 1959(a)(5); murder in aid of racketeering, in violation of Title 18, United States Code, Sections 1959(a)(1) and 2; possessing a firearm in furtherance of a crime of violence resulting in death, in violation of Title 18, United States Code, Section 924(j); and possessing a firearm in furtherance of a crime of violence on dates other than November 15, 2013, in violation of Title 18, United States Code, Section 924(c). CALDWELL is also charged with assault and attempted murder in aid of racketeering, in violation of Title 18, United States Code, Sections 1959(a)(3), 1959(a)(5), and 2. A chart showing the charges and maximum penalties for each count of the Indictment is below. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI’s Organized Crime Task Force, which comprises agents and detectives of the FBI, NYPD, Homeland Security Investigations, and the Waterfront Commission of New York Harbor. He also thanked the Bronx County District Attorney’s Office. He added that the investigation is continuing.
Assistant U.S. Attorneys Jennifer E. Burns, Scott Hartman, and Hagan Scotten are in charge of the prosecution. The case is being handled by the Office’s Violent and Organized Crime Unit and White Plains Division.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Christopher Londonio and Terrance Caldwell, 17 Cr. 89
COUNT
CHARGE
DEFENDANTS
MAXIMUM PENALTIES
1
Conspiracy to commit racketeering
CHRISTOPHER LONDONIO and TERRANCE CALDWELL
Life in prison
2
Conspiracy to murder in aid of racketeering
CHRISTOPHER LONDONIO and TERRANCE CALDWELL
10 years in prison
3
Murder in aid of racketeering
CHRISTOPHER LONDONIO and TERRANCE CALDWELL
Mandatory life in prison or the death penalty
4
Assault and attempted murder in aid of racketeering
TERRANCE CALDWELL
20 years in prison
5
Carrying and using a firearm during and in relation to, and possessing a firearm in furtherance of, a crime of violence, resulting in the death of another
CHRISTOPHER LONDONIO and TERRANCE CALDWELL
Life in prison or the death penalty
Mandatory minimum 5 years in prison consecutive to any other sentence
6
Carrying and using a firearm, which was discharged, during and in relation to a crime of violence
CHRISTOPHER LONDONIO and TERRANCE CALDWELL
Mandatory minimum 10 years in prison consecutive to any other sentence
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two Members of Multi-State Drug Trafficking Organization Sentenced on ThursdayRead the Press Release
Contact Person: Andy Moorman (864) 282-2100
Columbia, South Carolina --- United States Attorney Beth Drake announced that two members of a large, multi-state drug trafficking organization were sentenced on Thursday, February 9, 2017, in federal district court. Mister T. Crocker, age 36 from Columbia, and Lashaun Fair, age 37 from Anderson, were members of a drug trafficking organization that operated for approximately 13 years in multiple states, including South Carolina, Louisiana, Alabama, Georgia, and Texas. During the course of the conspiracy, members of the conspiracy distributed millions of dollars’ worth of cocaine, crack cocaine, and marijuana.
Assistant U.S. Attorney Andy Moorman, lead Organized Crime and Drug Enforcement Task Force (OCDETF) Attorney, was the lead prosecutor. OCDETF is a program administered by the Department of Justice that targets large scale, multi-state drug trafficking organizations.
Moorman told the Court during proceedings involving Crocker and Fair about their respective roles in the conspiracy. According to Moorman, Crocker was arrested on July 1, 2014, with co-defendant Kelvin Fulton after purchasing approximately 180 grams of cocaine from co-defendant Walter Lee in Anderson, South Carolina. Fair was a significant cocaine distributor in Anderson, South Carolina, whom federal agents observed leaving a home in Anderson on November 3, 2014, after purchasing a kilogram of cocaine from the organization’s source of supply, who lived in Atlanta, Georgia.
The Court sentenced Crocker to 30 months imprisonment and Fair to 60 months imprisonment for their respective roles in this organization.
The Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation Division, the Anderson County Sheriff’s Office, the Anderson Police Department, the Greenville County Sheriff’s Office, the Greenville Department of Public Safety, the Cherokee County Sheriff’s Office, the South Carolina Highway Patrol, the Richland County Sheriff’s Office, the South Carolina Law Enforcement Division, the Franklin County (GA) Sheriff’s Office, and the Douglas County (GA) Sheriff’s Office investigated the case.
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Twelve Current and Former Tsa and Airport Employees Indicted for Smuggling Approximatley 20 Tons of CocaineRead the Press Release
SAN JUAN, Puerto Rico – On February 8, 2017, a federal grand jury in the District of Puerto Rico returned a superseding indictment against twelve defendants charged with conspiracy to possess with intent to distribute cocaine, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
During the course of the conspiracy, the defendants smuggled suitcases, each containing at least 8 to 15 kilograms of cocaine, through the TSA security system at the Luis Muñoz Marín International Airport (LMMIA). Sometimes as many as five mules were used on each flight, with each mule checking-in up to two suitcases. From 1998 through 2016, the defendants helped smuggle approximately 20 tons of cocaine through LMMIA.
Six current and former TSA employees, José Cruz-López, Luis Vázquez-Acevedo, Keila Carrasquillo, Carlos Rafael Adorno-Hiraldo, Antonio Vargas-Saavedra, and Daniel Cruz-Echevarría allegedly smuggled multi-kilogram quantities of cocaine while employed as TSA Officers at the San Juan airport. Their full time responsibilities were to provide security and baggage screening for checked and carry-on luggage that was to be placed on outbound flights from the LMMIA. During the duration of the conspiracy, these TSA employees smuggled multi-kilogram quantities of cocaine through the TSA X-Ray machines within LMMIA and onto airplanes without detection.
According to the superseding indictment, defendants Edwin Francisco Castro, Luis Vázquez-Acevedo and Ferdinand López became facilitators between the drug trafficking organizations and the TSA employees who smuggled the cocaine into the airplanes. Defendant Miguel Ángel Pérez-Rodríguez, who worked for the airport security company, was a source of supply of cocaine to the drug trafficking organization.
Defendant Javier Ortiz began assisting drug trafficking organizations as an employee of Airport Aviation Services (AAS) as a baggage handler/ramp employee. During the time of the conspiracy Ortiz used to pick up suitcases he knew contained cocaine from the mules at the airline check-in counter. Ortiz would then place the suitcases into the X-Ray machines being monitored by the TSA drug trafficking organization members, who cleared the suitcases. After the suitcases had been cleared by TSA members, Ortiz took the suitcases to their designated flight, making sure no narcotic K-9 unit or law enforcement personnel were present when the suitcase went from the checkpoint to the airplane. Once the suitcases were loaded into the airplane, defendant Ortiz would make a phone call to a drug trafficking organization member indicating the all clear and the mules would then board the airplane. Ortiz also paid the TSA employees for clearing the suitcases through TSA security.
Defendant Tomas Dominguez-Rohena assisted the drug trafficking organization by taking the suitcases he knew contained cocaine after they had been cleared by TSA members or smuggled passed security to their designated flight. Defendant José Gabriel López-Mercado was a mule for the criminal organization.
“These individuals were involved in a conspiracy to traffic massive quantities of illegal narcotics to the continental United States,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “These arrests demonstrate the success of the AirTAT initiative, which has successfully allocated a dedicated group of state and federal law enforcement officers, whose mission is to ensure that our airports are not used in the drug traffickers’ illicit businesses.”
“This investigation was initiated by TSA as part of its efforts to address employee misconduct and specific insider threat vulnerabilities. TSA has zero tolerance for employees engaged in criminal activity to facilitate contraband smuggling,” said José Baquero, Federal Security Director, PR and USVI.
The Transportation Security Agency (TSA) and the Drug Enforcement Agency (DEA) are in charge of the investigation with the collaboration of the Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI), the Federal Bureau of Investigation (FBI), the U.S. Marshals and the Police of Puerto Rico.
Assistant U.S. Attorney Stuart J. Zander is in charge of the prosecution of the case, under the supervision of Assistant U.S. Attorney Julia Díaz-Rex, Deputy Chief of the International Narcotics Unit. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
This case is part of the ongoing efforts of the Airport Investigations and Tactical Team (AirTAT). Originating in January 2015, AirTAT is a multi-agency initiative created to identify, locate, disrupt, dismantle, and prosecute Domestic and Transnational Criminal Organizations (DTCOs) and its operatives using the LMMIA, the Fernando Luis Rivas Dominicci Airport (the Isla Grande airport), and peripheral airports as platforms to smuggle narcotics, weapons, human cargo, counterfeit documents, illicit proceeds, and others. These airports play a strategic role for DTCOs to conduct contraband smuggling activities inbound and outbound to the continental US as well as internationally.
Tucson Woman Sentenced to 63 Months for Mailing Child Pornography to Imprisoned Husband Who Was Awaiting Trial on Separate Child Pornography ChargesRead the Press Release
TUCSON, Ariz. – Today, Breana VanDyck, 28, of Tucson, Ariz., was sentenced by U.S. Chief District Judge Raner C. Collins to 63 months in prison. Following a jury trial in September, VanDyck was found guilty of mailing child pornography. VanDyck’s term of imprisonment will be followed by lifetime supervised release, with stringent sex offender conditions, including the condition that she register as a sex offender.
VanDyck, using the U.S. Postal Service, printed and mailed child pornography to her husband at the Central Arizona Detention Center (CADC). At the time, her husband was in custody at CADC awaiting trial on charges involving the possession and production of child pornography.
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, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Tucson Police Department and the Federal Bureau of Investigation, Tucson. The prosecution was handled by Carmen F. Corbin and Erica L. Seger, District of Arizona, Tucson.
CASE NUMBER: CR-15-1388-TUC-RCC
RELEASE NUMBER: 2017-013_VanDyck
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Ten Alleged Members and Associates of Bloods Gang Indicted for Federal Racketeering and Other Related OffensesRead the Press Release
Ten alleged members of the Black Mob Gangstas/Donald Gee Family (BMG/DGF) Raleigh-area Bloods street gang, including its leaders, have been indicted in Raleigh, North Carolina, for conspiring to participate in a racketeering enterprise and related offenses.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina, Special Agent in Charge John A. Strong of the FBI’s North Carolina Division and Chief Cassandra Deck-Brown of the Raleigh Police Department made the announcement.
The 11-count superseding indictment was returned by a federal grand jury on Jan. 20, and unsealed today in U.S. District Court for the Eastern District of North Carolina. The indictment charges the defendants with racketeering conspiracy, murder in aid of racketeering, murder with a firearm, drug trafficking conspiracy, witness tampering, obstruction of justice and related offenses. The defendants range from senior leadership to associates of the BMG/DGF Bloods:
- Demetrice Regus Devine aka Respect, 34;
- Dontaous Demond Devine aka Scooch and Boochie, 28;
- Demetrius Deshaun Toney aka Meat, 24;
- Brandon Jowan Mangum aka B-Easy, 28;
- Jamario Keon Jones aka Spect Junior and Skeeno, 24;
- Cleveland McNair aka Blee, 33;
- Christopher Darnell Evans aka Racks and Snacks, 27;
- Brenda Joyce Brown aka Lady Banga, 32;
- Katherine Victoria Gast aka Kat Snacks, 25; and
- Shaiona Marie Smith aka Slyfox, 22.
All of the defendants charged in the superseding indictment are already in custody.
According to the superseding indictment, the BMG/DGF Bloods is a violent street gang with members operating in Raleigh, including Haywood Street area, since the early 2000s. The gang is organized according to a detailed hierarchical structure. Senior leadership regularly conducted formal meetings and collected dues from the rank and file members, assaulting members who failed to pay or follow orders. The alleged members and associates of the BMG/DGF are charged with a wide range of crimes used to further their racketeering scheme, including murder, attempted murder, assault with dangerous weapons, drug trafficking, extortion, threats of violence and distribution of narcotics.
The superseding indictment charges gang leaders Demetrice Devine and Dontaous Devine with conspiracy to participate in racketeering activities of the BMG/DGF Bloods, among other charges. The indictment also charges two other alleged gang members, McNair and Evans, with conspiracy to participate in the gang’s racketeering activities.
According to the superseding indictment, BMG/DGF members and associates were connected to two separate murders. In May 2009, Dontaous Devine, Toney and Mangum allegedly shot and killed a rival gang member for refusing to pay BMG/DGF’s gang dues. The indictment also alleges that in November 2008, Jones and another gang member shot and killed a rival gang member under orders from a high ranking BMG/DGF member.
The FBI, Raleigh Police Department and the North Carolina Department of Public Safety investigated the case. Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section (OCGS) and Assistant U.S. Attorneys Dena King and Scott Lemmon of the Eastern District of North Carolina are prosecuting the case.
Devine et al. Superseding IndictmentTen Alleged Members and Associates of Bloods Gang Indicted for Federal Racketeering and Other Related OffensesRead the Press Release
RALEIGH – The United States Attorney’s Office announced today that ten alleged members of the Black Mob Gangstas/Donald Gee Family (BMG/DGF) Raleigh-area Bloods street gang, including its leaders, have been indicted in Raleigh, for conspiring to participate in a racketeering enterprise and related offenses.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina, Special Agent in Charge John A. Strong of the FBI’s North Carolina Division and Chief Cassandra Deck-Brown of the Raleigh Police Department made the announcement.
The 11-count indictment was returned by a federal grand jury on January 20, 2017, and unsealed today in U.S. District Court for the Eastern District of North Carolina. The indictment charges the defendants with racketeering conspiracy, murder in aid of racketeering, murder with a firearm, drug trafficking conspiracy, witness tampering, obstruction of justice, and related offenses. The defendants range from senior leadership to associates of the BMG/DGF Bloods:
• Demetrice Regus Devine, aka Respect, 34;
• Dontaous Demond Devine, aka Scooch and Boochie, 28;
• Demetrius Deshaun Toney, aka Meat, 24;
• Brandon Jowan Mangum, aka B-Easy, 28;
• Jamario Keon Jones, aka Spect Junior and Skeeno, 24;
• Cleveland McNair, aka Blee, 33;
• Christopher Darnell Evans, aka Racks and Snacks, 27;
• Brenda Joyce Brown, aka Lady Banga, 32;
• Katherine Victoria Gast, aka Kat Snacks, 25; and
• Shaiona Marie Smith aka, Slyfox, 22.
The last individual was arrested and taken into custody today. All of the other defendants charged in the indictment are already in custody.
John Stuart Bruce, U.S. Attorney, stated: “This significant indictment is the result of a lot of hard work by the FBI, the Raleigh Police Department, and the N.C. Department of Public Safety, as well as the attorneys in our office and those in DOJ’s Criminal Division. Stopping illegal gang activity, especially violent crimes, is a top priority for our office.”
“These suspects are part of a ruthless street gang that uses fear, intimidation, and even murder to protect the interests of their criminal organization. They believed they were beyond the reach of justice, even tampering with witnesses. Together with our law enforcement partners, we have disrupted a dangerous criminal enterprise and will continue to hold those accountable who mistakenly believe they are above the law,” said John A. Strong, Special Agent in Charge of the FBI in North Carolina.
According to superseding indictment, the BMG/DGF Bloods is a violent street gang with members operating in Raleigh, including Haywood Street area, since the early 2000s. The gang is organized according to a detailed hierarchical structure. Senior leadership regularly conducted formal meetings and collected dues from the rank and file members, assaulting members who failed to pay or follow orders. The alleged members and associates of the BMG/DGF are charged with a wide range of crimes used to further their racketeering scheme, including murder, attempted murder, assault with dangerous weapons, drug trafficking, extortion, threats of violence and distribution of narcotics.
The superseding indictment charges gang leaders Demetrice Devine and Dontaous Devine with conspiracy to participate in racketeering activities of the BMG/DGF Bloods, among other charges. The indictment also charges two other alleged gang members, McNair and Evans, with conspiracy to participate in the gang’s racketeering activities.
According to the superseding indictment, BMG/DGF members and associates were connected to two separate murders. In May 2009, Dontaous Devine, Toney and Mangum allegedly shot and killed a rival gang member for refusing to pay BMG/DGF’s gang dues. The indictment also alleges that in November 2008, Jones and another gang member shot and killed a rival gang member under orders from a high ranking BMG/DGF member.
The FBI, Raleigh Police Department and the North Carolina Department of Public Safety investigated the case. Assistant U.S. Attorneys Dena King and Scott Lemmon of the Eastern District of North Carolina and Trial Attorney John C. Hanley of the Department of Justice’s Criminal Division’s Organized Crime and Gang Section and are prosecuting the case.
Suburban Man Sentenced for Threatening Texas AG’s OfficeRead the Press Release
HOUSTON – A 55-year-old resident of Sugar Land has been ordered to federal prison for sending a threatening email to the Texas Attorney General’s Office (TXAG) and various employees with other state agencies, announced U.S. Attorney Kenneth Magidson. Syed Kaleem Razvi pleaded guilty Oct. 3, 2016.
Today U.S. District Judge Vanessa Gilmore sentenced Razvi to 24 months in federal prison immediately followed by two years of supervised release.
Razvi sent an email communication on June 8, 2015, to the Texas Attorney General’s Office, Child Support Division, as well as various employees with other Texas agencies. The subject line of the email said “Tell Atty General of Texas this.” The email threatened the Attorney General of Texas, as well as all those emailed that Razvi would “get up in arms against you all,” and that he wished “God burn your houses and burn the bodies of your own children and yourself.” The email also demanded that the Attorney General of Texas return his money or “FACE TERRORISM.”
Razvi will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation in conjunction with the Texas Attorney General’s Office - Criminal Investigations Division. Assistant U.S. Attorneys Ted Imperato, Alamdar Hamdani and Andrew Leuchtmann prosecuted the case.
Springfield Woman Charged in Two Metro-East Bank RobberiesRead the Press Release
Adrianna C. Frye-Williamson, 20, of Springfield, Illinois, was charged in a criminal complaint on Saturday, February 11, 2017, with two counts of Bank Robbery. The alleged violations took place on Friday, January 20, 2017 in Edwardsville, Madison County, Illinois, and Thursday, February 9, 2017 in Glen Carbon, Madison County, Illinois. Today, the Court ordered that Frye-Williamson be detained without bond until a bond hearing on February 16, 2017.
The offenses charged in the complaint allege (1) that on January 20, 2017, Adrianna C. Frye-Williamson committed the offense of Bank Robbery in that she by force, violence and intimidation, took from the presence of another, money belonging to and in the care and custody, control, management, and possession of the National Bank in Edwardsville, and (2) that on February 9, 2017, Adrianna C. Frye-Williamson committed the offense of Bank Robbery in that she by force, violence and intimidation, took from the presence of another, money belonging to and in the care and custody, control, management, and possession of the U.S. Bank in Glen Carbon, Illinois.
If convicted, the defendant faces a term in prison of up to 20 years on each count, a fine up to $250,000 and a term of supervised release of up to five (5) years.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The cases were investigated by the Edwardsville Police Department, Glen Carbon Police Department and the Federal Bureau of Investigation with assistance from the Springfield Illinois Police. The case is assigned to Assistant United States Attorney Ali Summers.
Springfield Postal Employee Sentenced for Stealing MailRead the Press Release
DAYTON – Leanna Heskett, 47, of Springfield, was sentenced in U.S. District Court today to serve five months in prison for more than 100 instances of stealing items from packages she handled as a mail processing clerk at the Springfield, Ohio Post Office in 2015.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio and Monica Weyler, Special Agent in Charge, U.S. Postal Service Office of Inspector General Eastern Area Field Office announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
According to court testimony, Heskett’s job with the Postal Service was to receive and sort mail and packages and prepare them for delivery by postal carriers. In 2014, customers in Springfield reported receiving packages with items missing from inside the packages. Several postal carriers in Springfield also reported noticing open parcels among those they received for delivery. USPS-OIG investigators determined that Heskett had been opening and stealing mail. Heskett pleaded no contest on August 1, 2016 to one count of mail theft.
Security video documented Heskett placing packages into her pants and leaving the work area, as well as opening packages, removing the contents and resealing the packages.
Heskett was also sentenced to two years of supervised release, to be served following her release from prison, including seven months of home confinement.
U.S. Attorney Glassman commended the investigation of this case by the USPS-OIG and First Assistant United States Attorney Vipal Patel, who represented the United States in this case.
South Bay Residents Charged with Conspiracy to Commit Extortion by Force, Drug TraffickingRead the Press Release
SAN JOSE- A federal grand jury indicted ten South Bay residents for conspiring to commit extortion by force and conspiring to engage in drug trafficking, announced United States Attorney Brian J. Stretch and Homeland Security Investigations (“HSI”) Special Agent in Charge Ryan Spradlin. According to the indictment unsealed today, seven of the defendants conspired to extort drug dealers while the other three defendants conspired to engage in trafficking methamphetamine.
According to the indictment, the following defendants conspired to engage in extortion:
- Velarmino Escobar-Ayala (aka Meduza)
- Tomas Rivera (aka Profugo, aka Caballo)
- Ismael Alvarenga-Rivera (aka Casper)
- Willfredo Edgardo-Ayala (aka Chino)
- Jose David Abrego-Galdamez (aka Largo)
- Melvin Lopez (aka Sharky)
- Alexander Martinez-Flores (aka Pocar)
In addition, the indictment alleges that these defendants conspired to obtain property from drug dealers in Santa Cruz by threatening violence against the dealers and other persons close to them. Further, the indictment alleges the defendants had a plan and purpose to engage in the extortion and threatened force, violence, and fear to obtain money that was demanded. The seven defendants have been charged with conspiracy to commit extortion by force in violation of 18 U.S.C. § 1951(a).
Also, the indictment alleges defendants Gerber Morales (aka Choco), Emilio Escobar-Albarnga (aka Diablo), and Josue Alcedis Escobar-Cerritos (aka Penguino) were engaged in a conspiracy engage in drug trafficking. According to the indictment, from March of 2015 until the present, the three defendants conspired to possess with intent to distribute 50 grams of more of a mixture of substance containing a detectable amount of methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(B)(viii).
According to additional court papers filed by the government today, the current charges in this case stem from a multi-year investigation into the activities of a violent Santa Cruz street gang known as Santa Cruz Salvatrucha Locos 13 (SCSL13). The government’s papers state that “SCSL13 is a subset of the larger Mara Salvatrucha 13 (MS-13) gang organization.” According to the government, the defendants all are alleged to be either active members or recruits performing criminal tasks on behalf of SCSL13.
The defendants were arrested this morning as part of a criminal enforcement operation that included more than 200 local and federal law enforcement personnel. The coordinated arrests and searches took place in three cities – Santa Cruz, Watsonville, and Daly City. Defendants made appearances before the Honorable Nathanael Cousins, U.S. Magistrate Judge.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum statutory sentence for a conviction of conspiracy to commit extortion is 20 years in prison and a $250,000 fine. A conviction for conspiracy to possess with intent to distribute 50 grams or more of methamphetamine carries a mandatory minimum sentence of five years in prison, a maximum prison term of 40 years, and a maximum fine of $5,000,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Joseph Alioto and William Edelman are prosecuting the case. The prosecution is the result of an investigation by the HSI.
Snapchat Videos Lead to Gun Arrests and ChargesRead the Press Release
LAS VEGAS, Nev.–Three men, including two former felons, were arrested and face criminal charges after posting videos on Snapchat of themselves illegally shooting firearms which included a stolen firearm, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI Las Vegas field office.
“The three defendants were arrested and charged with gun crimes. Criminals should take heed of these arrests. Law enforcement will utilize all resources at their disposal to protect citizens and to ensure safe Nevada communities for all to live in,” said U.S. Attorney Bogden.
“These arrests reflect the FBI's strong, collaborative partnership with the Las Vegas Metropolitan Police Department and our common goal of making our city safer. Those who seek to live the gang lifestyle or exploit others through human trafficking should take note of the unified effort of the law enforcement community to stop their despicable pursuits,” said SAC Rouse.
Peryoun Newman, 25, Shavonte Hill, 29, both of Las Vegas, were charged by a criminal complaint for felon in possession of firearms. Co-defendant, Jevontae Caldwell, 24, of Las Vegas, was charged with possession of a stolen firearm by the same complaint. Newman and Hill are former convicted felons. In 2013, Newman was convicted of conspiracy to commit robbery and pandering. In 2004, Hill was convicted of attempted murder with a deadly weapon and discharging a firearm into an occupied structure, and in 2010, in both federal and state court, he was found guilty for being a felon in possession of a firearm. It is illegal for a felon to possess a firearm.
According to the criminal complaint, on Jan. 27, 2017, during the course of an investigation into a criminal street gang and human trafficking, law enforcement observed a live Snapchat video that depicted Newman, a self-proclaimed “Wood” street gang member involved in illegal activities, holding and firing a semi-automatic Draco pistol in an indoor shooting range with Hill, Caldwell, and others. In the Snapchat videos, the defendants discussed what kind of firearms they had in their possession and were shooting. Las Vegas Metropolitan Police Department officers and detectives arrived at the indoor shooting range and observed the defendants placing a cardboard box into a vehicle’s trunk, then driving to an apartment. Newman, Hill, and Caldwell were arrested for probable cause. At the time of arrest, Caldwell had a 9mm semi-automatic EEA SAR Arms in his pants pocket and a .45 caliber semi-automatic handgun in a bag he discarded while attempting to escape apprehension. The .45 caliber was reported as stolen in Mesa, Arizona. During the execution of a search warrant of their vehicle and apartment, law enforcement found a .40 caliber semi-automatic Glock 23; a Draco 7.62X39mm pistol; a Master Piece Arm 9mm pistol with a 3” barrel; and a .40 caliber Glock 27, magazine wells, and ammunition.
The case is being investigated by the FBI and Las Vegas Metropolitan Police Department; and prosecuted by Assistant U.S. Attorney Cristina D. Silva.
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Santa Barbara Criminal Defense Attorney Sentenced to 2 Years in Federal Prison for Failing to Report over $3.5 Million in Income to IRSRead the Press Release
LOS ANGELES – A Santa Barbara-based criminal defense attorney was sentenced today to 24 months in federal prison for willfully failing to file tax returns for several years and failing to pay a total of $679,958 in income tax to the Internal Revenue Service.
Darryl W. Genis, 60, was sentenced this afternoon by United States District Judge Dale S. Fischer. In addition to the prison term, Judge Fischer ordered Genis to pay restitution of $679,958 to the IRS.
Genis pleaded guilty in October to three misdemeanor counts of willfully failing to file tax returns for his law practice for the years 2009 through 2011. In the plea agreement that led to his guilty pleas, Genis admitted that he failed to pay income taxes for a total of eight years.
According to court documents, for the tax years 2009 through 2011, Genis earned income from his law practice, he knew that his gross income for each year exceeded the threshold requiring him to file an income tax return, but he failed to file the required tax returns with the IRS.
Over the course of eight years – 2005 through 2012 – Genis failed to report $3,590,185 of income and he failed to pay a total of $679,958 in income taxes.
“During the years he was not paying his taxes, this defendant purchased a multimillion-dollar home in Santa Barbara for his family, which allowed him to rent a different million-dollar residence that he also owned,” said United States Attorney Eileen M. Decker. “Demonstrating his total disregard for honoring his tax responsibilities, in the span of just one weekend in 2009, he gambled away tens of thousands of dollars that easily exceeded the taxes he owed that year. Attorneys are no different than any other citizen; they are expected to follow the law.”
“Mr. Genis is a well-educated criminal defense attorney who knew of his responsibility to file his tax returns and pay the taxes owed,” stated IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “Instead he chose to not file his tax returns or pay his taxes. He’ll now pay for his decision with the loss of his liberty and a period of incarceration.”
In sentencing papers filed with the court, prosecutors noted that Genis was a respected member of the Santa Barbara community and he certainly knew that his conduct related to his failure to pay taxes was criminal.
Judge Fischer ordered Genis to begin serving his sentence on or before May 15.
The investigation into Genis was conducted by IRS Criminal Investigation in Camarillo. The case was prosecuted by Assistant United States Attorneys Valerie L. Makarewicz and Benjamin L. Tompkins of the Tax Division.
Roanoke Man who Pled Guilty to Distributing Methamphetamine,Illegally Possessing a Firearm, Sentenced in Federal CourtRead the Press Release
Roanoke, VIRGINIA – A Roanoke man, who sold methamphetamine and illegally possessed a shotgun after having been previously convicted of a felony, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
John Mark Bryant, 21, of Roanoke, Va., previously pled guilty to one count of distribution of methamphetamine and one count of illegal possession of firearm by a previously convicted felon. Today in District Court, Bryant was sentenced to 57 months in federal prison.
According to evidence presented at previous hearings by Assistant United States Attorney Andrew Bassford, in June 2016 Bryant was staying at the Stay-In motel in Salem, Virginia. Detectives working as part of the Roanoke HIDTA had determined that Bryant was distributing methamphetamine and firearms from his hotel room and set-up a methamphetamine and firearm purchase via a confidential informant. The informant arranged and made a purchase of methamphetamine and a shotgun from Bryant on June 16, 2016.
Thee investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roanoke HIDTA. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Registered Sex Offender Pleads Guilty to Distributing Child PornRead the Press Release
WICHITA KAN. – A registered sex offender who has been living in Wichita pleaded guilty Monday to distributing child pornography, U.S. Attorney Tom Beall said.
Jeremy Michael Schmidt, formerly known as Jeremy Michael Davis, 41, Wichita, Kan., pleaded guilty to one count of distributing child pornography. In 2013, Schmidt was convicted in Florida on a possession of child pornography charge and registered as a sex offender under the name Jeremy Michael Davis. He later changed his name to Jeremy Michael Schmidt.
Schmidt came to the attention of investigators in Wichita when they received four separate Cyber Tipline Reports from the National Center for Missing and Exploited Children. Investigators identified emails in which Schmidt provided links to child pornography.
Sentencing is set for May 1. He faces a penalty of not less than 15 years and not more than 40 years in federal prison and a fine up to $250,000. Beall commended the Wichita Police Department, Homeland Security Investigations, the Internet Crimes Against Children Task Force and Assistant U.S. attorney Jason Hart for their work on the case.
Readout of Today’s Events for Attorney General SessionsRead the Press Release
Attorney General Jeff Sessions sat down with Chicago Mayor Rahm Emanuel this afternoon in the Attorney General’s conference room to discuss what might be done to combat the shootings and murders in that city and bring back proactive community policing.
The Attorney General also had a detailed and productive conversation with Secretary of Homeland Security John F. Kelly about steps the Department of Justice and the Department of Homeland Security will take to secure our borders to end the flood of illegal immigration, drugs and human trafficking pouring into our country and undermining our national security.
In addition, the Attorney General also enjoyed meeting with Judge Neil Gorsuch and congratulated him on his nomination.
Putnam County man pleads guilty to possessing child pornographyRead the Press Release
HUNTINGTON, W.Va. - A Putnam County man faces up to 20 years in federal prison after pleaded guilty today to a child pornography crime, announced United States Attorney Carol Casto. Scott Allen Forloine II, 36, of Scott Depot, entered his guilty plea to possession of child pornography.
Forloine admitted that in April 2015, he possessed over 600 images and videos of minors engaged in sexual acts. Many of the images and videos depict prepubescent minors. The images and videos were located on his personal computer located in his residence. The investigation also revealed that Forloine was using a peer-to-peer file sharing program to download, receive, and distribute child pornography.
“My office is committed to the fight against those who contribute to the exploitation and abuse of children,” said United States Attorney Casto. “We will use every available tool to work with our law enforcement partners to track these criminals down and prosecute them to the fullest extent of the law. The defendant is facing a significant sentence that should serve as a warning to anyone who victimizes children.”
The sentencing is scheduled for May 22, 2017.
The FBI, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and the Parkersburg Police Department conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case is being brought as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Property Manager of Poughkeepsie Housing Project Sentenced for Stealing HUD FundsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that CARL IMMICH, formerly the property manager of Harriet Tubman Terrace Apartments, a Section 8 Housing Complex in Poughkeepsie, New York, was sentenced to 18 months in prison. United States District Judge Cathy Seibel imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara stated: “Repeatedly and routinely, Carl Immich stole public money meant to subsidize housing for indigent tenants, and used it to dine out, travel, renovate his house, and play golf. For his brazen fraud, Immich was sentenced today to time in federal prison.”
According to the allegations contained in the Complaint, the Indictment, and statements made during court proceedings in the case:
Tubman Terrace is a large, low-income apartment complex in Poughkeepsie, New York. The rental payments for nearly all of the apartments are subsidized by the U.S. Department of Housing and Urban Development (“HUD”) pursuant to Section 8 of the United States Housing Act of 1937, 42 U.S.C. § 1437f. From in or about June 2010 through in or about November 2014, HUD provided approximately $150,000 to $160,000 each month to Tubman Terrace.
From in or about 2009, Tubman Terrace was managed by a management company, of which IMMICH is the principal and sole owner. In that capacity, IMMICH served as the management agent and property manager of Tubman Terrace since in or about 2009.
From at least in or about December 2010 until at least in or about March 2015, IMMICH fraudulently obtained at least approximately $150,000 of HUD funds from the operating account of Tubman Terrace, which were paid to him or used for personal expenditures. IMMICH did so through as least three different schemes: (1) he used credit cards intended for Tubman Terrace business expenses for personal expenses, which were then paid through Tubman Terrace’s operating bank account; (2) he obtained check payments from the Tubman Terrace operating bank account to cover other personal expenses; and (3) he obtained payroll checks for himself and his daughter reflecting no work or other entitlement by them to such salary.
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IMMICH, 54, of Rhinebeck, New York, pled guilty to theft concerning a program receiving government funds, and theft of government property. In addition to the prison sentence, IMMICH was also sentenced to three years of supervised release and ordered to pay $150,001 in restitution.
Mr. Bharara praised the outstanding investigative work of the HUD Office of Inspector General.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Lauren Schorr and Benjamin Allee are in charge of the prosecution.
Ohio woman pleads guilty to illegally possessing a firearm and assaulting a U.S. MarshalRead the Press Release
ELKINS, WEST VIRGINIA – Peggy Chaffin, 37, of Portsmouth, Ohio, pled guilty to illegally possessing a gun and using said gun to obstruct a Deputy U. S. Marshal, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Chaffin admitted being a felon in possession of a .22 caliber rifle. She was previously convicted of felony heroin possession and distribution in the Eastern District of Kentucky in August 2013. Chaffin also admitted to using that gun to obstruct, assault, and resist a Deputy U.S. Marshal in Orlando, West Virginia, in November 2015.
Chaffin pled guilty to one count of “Felon in Possession of a Firearm.” She faces up to ten years in prison and a fine of up to $250,000 for the first count. Chaffin also pled guilty to one count of “Assaulting, Obstructing, or Resisting a Federal Officer.” She faces up to twenty years in prison and a fine of up to $250,000 for the second count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The United States Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, and the Braxton County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
New Jersey Man Guilty of Wethersfield Warehouse RobberyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found ANDREW ORECKINTO, 52, of Matawan, New Jersey, guilty of stealing more than 8,000 cartons of cigarettes from a Wethersfield warehouse in March 2011.
The trial before U.S. District Judge Jeffrey A. Meyer began on February 6 and the jury returned its verdict this morning.
According to the evidence introduced during the trial, at approximately 7:00 a.m. on March 20, 2011, Wethersfield Police responded to an open garage door complaint at New Britain Candy, a business and warehouse located at 24 Maple Street in Wethersfield. The business distributes items to convenience stores in Connecticut and neighboring states. A glue-like substance had been forced into the front door lock causing it to be inoperable, exterior surveillance camera wires and a phone line had been cut, and alarm panels and speakers had been disabled. Approximately 8,012 cartons of cigarettes, as well as a pallet jack, were missing from the warehouse. The stolen cigarettes had a wholesale value of approximately $300,000 and a retail value of approximately $500,000.
One individual, subsequently identified as ORECKINTO, was seen on video surveillance footage. He was dressed in a black hooded sweatshirt, dark pants, black gloves, a black face mask, and wore a headband light around his head.
Prior to the burglary, ORECKINTO had stolen a white box truck from a business in Hartford. The day after the burglary, the truck was found near a commercial construction site in Stamford. The stolen pallet jack was recovered from the cargo area of the truck.
The investigation included extensive analysis of prepaid cellphones and cell tower information. Examination of the call history of ORECKINTO’s prepaid phone ultimately led investigators to several other prepaid phones that had been used in multiple commercial burglaries in Connecticut, New York, New Jersey and Pennsylvania. ORECKINTO previously was convicted of two of these other burglaries, including a burglary that occurred at a Waldbaum’s Supermarket in Rockville Centre, N.Y., overnight on December 31, 2010 and January 1, 2011, and a commercial warehouse burglary in Florham Park, N.J., on April 28, 2008, during which $100,000 worth of copper was stolen. ORECKINTO was sentenced to a term of imprisonment for both of these burglaries.
At the time of ORECKINTO’s arrest for the New Jersey burglary, a search of his car revealed a list of licensed cigarette distributors in the State of Connecticut that had been printed from the Connecticut Department of Revenue Services web site. The list, which included the New Britain Candy warehouse in Wethersfield, also contained several handwritten notations next to many of the businesses, at least three of which also have been burglarized.
The jury found ORECKINTO guilty of one count of theft from an interstate shipment, an offense that carries a maximum term of imprisonment of 10 years. Judge Meyer scheduled sentencing for May 8, 2017.
This investigation has been conducted by the Wethersfield Police Department and the Federal Bureau of Investigation, with the assistance of the Nassau County Police Department and the Florham Park (N.J.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
Miami-Dade Resident Convicted for Being a Felon in Possession of a Firearm After Shooting A Man Outside A Miami Gardens’ Convenience StoreRead the Press Release
Following a three-day jury trial, a Miami-Dade resident pled guilty in federal court to being a felon in possession of a firearm after shooting a man in front of a convenience store in Miami Gardens.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, Peter Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Cynthia Dawson Machanic, Acting Chief, Miami Gardens Police Department, made the announcement.
James Benjamin Bell, 52, pled guilty before U.S. District Judge Donald L. Graham for being a felon in possession of a firearm. Bell faces a statutory mandatory minimum sentence of fifteen years in prison if determined to be an armed career criminal. Sentencing is scheduled for April 20, 2017 at 10:30 a.m. before U.S. District Judge Donald L. Graham.
According to the court record, including evidence presented during the trial, on May 31, 2016, Bell argued with another man outside of a Miami Gardens convenience store before shooting him in the face. A bystander called 911 and provided a description of the shooter and the getaway car. Police officers quickly found the car and Bell exited the passenger side of the vehicle wearing clothing that matched the description of the shooter. Bell’s girlfriend was the driver. Officers located a firearm in Bell’s girlfriend’s purse. A ballistics test linked the firearm found in Bell’s girlfriend’s purse to the casing left on scene. At the time of the shooting, Bell was a convicted felon who was prohibited from possessing a firearm.
Mr. Ferrer thanked the Miami-Dade State Attorney’s Office for their assistance. Mr. Ferrer commended the investigative efforts of ATF and the Miami Gardens Police Department. This case was prosecuted by Special Assistant U.S. Attorney Marianne Curtis from the Miami-Dade State Attorney’s Office and Assistant U.S. Attorney Breezye Telfair.
A copy of this press release may be found on the website of the United States Attorney?s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican national sentenced to federal prison for immigration crimeRead the Press Release
CHARLESTON, W.Va. – A Mexican national was sentenced to a year and a half in federal prison today for an immigration crime, announced United States Attorney Carol Casto. Adan Zamudio-Escalante, also known as Victor Giron, 39, previously pleaded guilty to illegally reentering the United States after having previously been removed from the United States on two different occasions. He is also subject to removal proceedings.
Zamudio-Escalante admitted that he had twice been convicted of the federal crime of illegally reentering the United States. The first conviction occurred on April 1, 2005, in Texas. After that conviction, Zamudio-Escalante was removed from the United States to his home country of Mexico. Zamudio-Escalante then illegally reentered the United States. He was convicted for a second time of illegally reentering the United States on January 6, 2010, in West Virginia, and was again removed from the United States. Zamudio-Escalante was subsequently found in Charleston by Department of Homeland Security agents on September 20, 2016, having illegally reentered the United States for a third time.
The investigation was conducted by the Department of Homeland Security. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
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Mexican Nationals Facing Federal Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – Earlier today, a U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Jose de Jesus Abundis-Gonzales, 36, and Norberto Perez-Zepeda, 33, both Mexican nationals illegally residing in the United States, with heroin trafficking charges. The Magistrate Judge also entered orders requiring that the two men remain in custody pending trial.
Abundis-Gonzales and Perez-Zepeda were arrested on Feb. 7, 2017, after DEA executed search warrants at the Albuquerque residences of Abundis-Gonzales and Perez-Zepeda and seized a total of 239 grams of heroin, more than $12,000 in cash, and drug paraphernalia. According to the criminal complaint, the heroin allegedly was packaged in small balloons, ready for retail distribution.
If convicted of the charge in the criminal complaint, Abundis-Gonzales and Perez-Zepeda each face a statutory minimum penalty of five years and maximum of 40 years in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and Homeland Security Investigations. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Maryland Man Pleads Guilty to Carjacking, Drove Off with Woman and Her 2-Year-Old GranddaughterRead the Press Release
WASHINGTON – Jesse Green III, 41, of Germantown, Md., has pled guilty to carrying out a carjacking earlier this year in Southeast Washington in which he drove off with a woman and her 2-year-old granddaughter, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
Green, also known as Michael McKoy, pled guilty on Feb. 10, 2017, in the Superior Court of the District of Columbia, to carjacking. The Honorable Ronna L. Beck scheduled sentencing for April 14, 2017. The charge carries a mandatory minimum of seven years in prison and a statutory maximum of 21 years. Green has been in custody since his arrest on the day of the crime.
According to the government’s evidence, on Jan. 8, 2017, at approximately 12:10 p.m., the woman, her husband, and their 2-year-old granddaughter were driving in a GMC Yukon sports utility vehicle. The husband pulled over and got out of the vehicle for a stop in the 5000 block of Kimi Gray Court SE. Green, a stranger, came out of a neighboring house and went to the vehicle. Then, without permission, he got into the driver’s seat and sped off, with the woman and child still in the vehicle. The child was in a car seat in the rear.
The woman demanded that Green let them out and she attempted to grab the steering wheel. Green, however, kept driving fast, passing through stop signs. He crashed into a parked vehicle near 51st Street and Central Avenue SE, traveled up an embankment, and then crashed backward into a telephone pole. He attempted to flee, but was soon apprehended. The victims were taken to a hospital by ambulance for examination and treatment.
In announcing the plea, U.S. Attorney Phillips and Interim Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney Kathryn Rakoczy, Paralegal Specialist Richard Cheatham, and Victim/Witness Advocate James Brennan. Finally, they commended the work of Assistant U.S. Attorney Natasha Smalky, who investigated and prosecuted the case.
Man Pleads Guilty to Producing Child Pornography of BoysRead the Press Release
ALEXANDRIA, Va. – Vincenzo Leonardi, 27, of Lakewood, Ohio, pleaded guilty today to production of child pornography in connection with his online impersonation of a minor girl to entice and coerce minor boys to produce sexually explicit photographs and videos of themselves.
According to the statement of facts filed with the plea agreement, from at least May 2012 to February 2016, Leonardi posed as a minor girl named “Taylor Capps” on Facebook, Instagram, Kik, and other social media services, for the purpose of contacting minor boys over the Internet to engage in sexually explicit communications and conduct. For example, as part of his scheme, Leonardi sent pictures of a minor girl and other naked females to his victims. One victim, located in Loudoun County, was 9 years old at the time he was contacted by Leonardi. For that victim and at least five others located throughout the country, Leonardi successfully enticed and coerced them to record themselves engaged in sexually explicit behavior and to transmit those photographs and videos to Leonardi. As part of his plea agreement, Leonardi admitted that he attempted to similarly entice and coerce at least a dozen other minor boys he contacted online, all of whom were between the ages of 9 and 12 years old.
As part of his plea agreement, Leonardi admitted that his personal laptop computer, which was seized during the execution of a search warrant in December 2015, contained over two dozen sexually explicit videos and over 100 sexually explicit images of minors.
Leonardi was indicted by a federal grand jury on Nov. 3, 2016, and faces a mandatory minimum of 15 years in prison and a maximum penalty of 30 years in prison when sentenced on May 12. 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; Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office; and Michael L. Chapman, Loudoun County Sheriff, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu are prosecuting the case. The U.S. Attorney’s Offices for the Northern District of Ohio and the District of Maryland significantly aided in the investigation.
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-247.
Long-time Manager of Hoquiam Wood Shavings Business Sentenced to Prison for Mail Fraud, Tax Evasion, Money Laundering and Interstate Transportation of Stolen PropertyRead the Press Release
The long-time manager of a Hoquiam wood shavings business was sentenced today in U.S. District Court in Tacoma to three years in prison and three years of supervised release for thirteen federal felonies related to his theft of $1.3 million from a family business, announced U.S. Attorney Annette L. Hayes. WILLIS D. “BILL” LONN, JR., 68, of Aberdeen was convicted in October 2016 of nine counts of mail fraud, two counts of income tax evasion, one count of money laundering conspiracy and one count of interstate transportation of stolen property following a six-day trial. At the sentencing hearing U.S. District Judge Benjamin H. Settle said LONN “profoundly abused the trust of his employer [and] callously betrayed family members and took what belonged to the company.”
“This defendant did not commit just a single act of embezzlement, rather, over the course of years, he stole from the company almost every day,” said U.S. Attorney Annette L. Hayes. “He betrayed the trust of his family members to satisfy his greed and then used the stolen money to start his competing business harming his victims even further.”
According to records filed in the case and testimony at trial, LONN was a long time manager for Long Beach Shavings Company (LBS). The company was owned by LONN’s uncle and cousins and was based in California. The company had one plant in Hoquiam, Washington where it processed wood shavings for use on farms, at horse shows or in pet stores. LONN had worked at the Hoquiam plant for about a decade when he launched a scheme in the 2000s to steal and sell the wood shavings products for his own enrichment. LONN did this by selling the shavings directly to customers in Washington and Oregon without turning the proceeds over to the company. Later in the scheme, LONN arranged to get wood chips for free from a Montesano lumber mill, but he informed the parent company that an entity named M & R Lumber needed to be paid for the wood shavings. LONN posed as M & R Lumber and created phony invoices that he mailed to LBS to bill them for the shavings. LONN then kept the money. Between the two schemes LONN obtained more than $1.3 million from LBS. He was terminated by the company in 2011 when the full scope of the scheme came to light.
Testimony at trial revealed that LONN never paid income taxes on the ill-gotten gain in tax years 2009 and 2010. Had LONN reported the income his tax bill for those years would have increased by more than $80,000.
“At this time of year most Americans are busy fulfilling their obligations as citizens of our country by preparing and filing honest and accurate tax returns. However, a small percentage of the population selfishly shuns their civic duty by dodging the tax laws that the majority of us observe,” stated Special Agent in Charge Darrell Waldon of IRS Criminal Investigation. “When this happens, IRS Special Agents stand ready to defend our nation’s tax system by bringing scofflaws to justice and ensuring a level playing field for all of us.”
Anthony Galetti, Inspector in Charge of Seattle Division of the U.S. Postal Inspection Service, stated, “Today’s sentencing confirms that anyone who uses the U.S. Mail to operate a fraud scheme will be held accountable. I’m pleased to see justice in a case which had such an impact on the community of Hoquiam.”
The case was investigated by the U.S. Postal Inspection Service (USPIS) and the Internal Revenue Service Criminal Investigation (IRS-CI).
The case was prosecuted by Assistant United States Attorneys Brian D. Werner and Nicholas Manheim.