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2 February 2017
Massachusetts Man Sentenced to Serve Two Years in Prison for Role in Fentanyl DistributionRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced today that Felipe Antonio Reyes Eduardo was sentenced to a term of two years in federal prison based upon his prior guilty plea to one count of conspiracy to distribute fentanyl.
According to court documents and statements in court, Reyes acted as a runner in a series of fentanyl transactions with an undercover law enforcement officer in New Hampshire and Massachusetts from December of 2015 to February of 2016. Reyes, 20 years old, resided in Lawrence, Massachusetts, before his arrest in this case.
According to statistics maintained by the State of New Hampshire, the vast majority of the drug overdose deaths in New Hampshire in 2016 were related to fentanyl. Because a single gram of heroin or fentanyl can be used to create multiple individual dosage units that can be sold “on the street,” the quantity of fentanyl involved in this case could have generated hundreds of individual doses of fentanyl, each of which had the potential to cause a fatal overdose.
“Those suffering from the disease of opioid addiction need access to treatment and recovery,” said Special Agent in Charge Michael J. Ferguson. “But, those responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire need to be held accountable for their actions. In response to the ongoing opioid epidemic DEA and its local, state and federal law enforcement partners are committed to bringing to justice those that distribute this poison.”
U.S. Attorney Rice said, “My office will continue to work with our law enforcement partners to identify and prosecute the individuals who are putting fentanyl and other deadly drugs on the streets of New Hampshire. By aggressively enforcing the law, providing treatment to those suffering with addition, and educating the community about the risks of fentanyl, the law enforcement community in New Hampshire is working to combat the fentanyl problem in this state on a daily basis.”
This case was investigated by the United States Drug Enforcement Administration and the New Hampshire Drug Task Force. It was prosecuted by Assistant United States Attorney Bill Morse.
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Massachusetts Man Sentenced for 204 Months for Heroin and Fentanyl Distribution ConspiracyRead the Press Release
CONCORD, N.H. – Rafael Nicolas Lopez-Carrasco, a/k/a Jose Casellas, of Lawrence, Massachusetts, was sentenced to 204 months in federal prison after pleading guilty in the United States District Court for the District of New Hampshire to a federal indictment charging him with one count of conspiracy to distribute and to possess with the intent to distribute heroin and fentanyl, announced United States Attorney Emily Gray Rice.
According to court documents, the defendant distributed drugs in Massachusetts and New Hampshire since at least July of 2014. On June 24, 2015, the defendant supplied approximately two kilograms of fentanyl to a third person who had the drugs delivered to an address on Winter Street in Manchester, New Hampshire. On June 25, 2016, law enforcement seized an additional three kilograms of fentanyl as the defendant was attempting to deliver it in Massachusetts. A search of the defendant’s residence in Lawrence led to the discovery of an additional one kilogram of fentanyl and 922 grams of heroin. Law enforcement also seized $12,000 in United States currency, several kilograms of cutting agent and three firearms.
The defendant’s 204-month sentence was ordered to run concurrently to a 10 to 12 year sentence he is serving in Massachusetts. He will be deported after completing his federal sentence.
“I commend the Manchester Police Department and the DEA on their thorough investigation of this case leading to the seizure of such a significant quantity of drugs and drug proceeds,” stated United States Attorney Emily Gray Rice. “Prosecuting those individuals who introduce dangerous narcotics into our community, and ensuring that they do not profit from doing so, is a critical priority of my office.”
"Opioid abuse is at epidemic levels in New Hampshire," said Special Agent in Charge Michael J. Ferguson. "Fentanyl and heroin are causing overdose deaths across the Granite State in record numbers, and DEA is committed to aggressively pursue Drug Trafficking Organizations and individuals who are coming from out of state to distribute these poisons across New Hampshire in order to profit and destroy people's lives and wreak havoc in our communities. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners."
According to statistics maintained by the State of New Hampshire, the vast majority of the drug overdose deaths in New Hampshire in 2016 were related to fentanyl. Because a single gram of heroin or fentanyl can be used to create multiple individual dosage units that can be sold “on the street,” the quantity of fentanyl involved in this case could have generated hundreds of individual doses of fentanyl, each of which had the potential to cause a fatal overdose.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The case was investigated by the Manchester Police Department, the Massachusetts State Police, and the Drug Enforcement Administration and was prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Donald Feith.
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Louisiana Business Owners Sentenced for Filing Fraudulent Individual Income Tax ReturnsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that two owners of a Metairie business were sentenced today for willfully filing fraudulent 2011 individual income tax returns.
U.S. District Judge Jane Triche Milazzo sentenced both ROMMEL CORDOVA, 36, of Luling, and SAUL RAMIREZ, 44, of Kenner, to serve five years of probation and to pay a $10,000 fine. Each defendant has already paid restitution to the Internal Revenue Service.
According to court documents, CORDOVA and RAMIREZ owned and operated Skill Labor Provider, Inc. (Skill Labor) a Metairie labor services business. CORDOVA and RAMIREZ each owned 50 percent of the business and shared equally in its net income. During 2010 and 2011,CORDOVA and RAMIREZ used a Louisiana check cashing business to cash checks made payable to Skill Labor, cash or themselves and did not deposit these funds into Skill Labor’s bank accounts or report them as gross receipts on Skill Labor’s corporate income tax returns. CORDOVA and RAMIREZ caused Skill Labor to file fraudulent 2010, 2011 and 2012 corporate income tax returns which underreported the business’s gross receipts by more than $6 million. CORDOVA and RAMIREZ separately filed fraudulent 2010 through 2012 individual income tax returns, each underreporting their net income from Skill Labor by more than $866,000.
U.S. Attorney Polite commended special agents of the IRS–Criminal Investigation and Homeland Security Investigations, who conducted the investigation. Assistant U.S. Attorney Hayden Brockett and Tax Division Trial Attorney Michael Hatzimichalis were in charge of the prosecution.
Lake City Man Pleads Guilty to Drug and Firearms ChargesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Joseph Anthony Harris (51, Lake City) today pleaded guilty to possession with intent to distribute crack cocaine and possession of a firearm in furtherance of a drug trafficking crime. He faces up to 20 years in federal prison for the drug offense, to be followed by a minimum mandatory sentence of 5 years, up to life, in federal prison for the firearm offense.
According to the plea agreement, after Harris sold cocaine to a confidential informant, a multi-jurisdictional task force obtained a search warrant for his home. When officers arrived to execute the warrant, Harris fled, leading them on a car chase through his neighborhood. During the chase, Harris threw a bottle containing crack cocaine from his car. He eventually stopped and was arrested. In his home, officers found more crack cocaine and a loaded .38 caliber handgun.
This case was investigated by the Columbia County Sheriff’s Office, the Florida Department of Law Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program – a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Justice Department Settles Immigration-Related Discrimination Claim Against New York RestaurantRead the Press Release
The Justice Department reached an agreement today with Levy Premium Foodservice Limited Partnership, doing business as Levy Restaurants, a national chain of sports arena restaurants. The settlement resolves the department’s investigation of a charge filed by a work-authorized immigrant against Levy’s Barclay Center restaurant in Brooklyn, New York, alleging discrimination in violation of the Immigration and Nationality Act (INA).
The department concluded, based on its investigation that Levy discriminated against two lawful permanent residents at its Barclay Center restaurant by improperly reverifying their employment eligibility because of their immigration status. The department also determined that Levy improperly required them to present specific types of documents to re-establish their employment eligibility and suspended the charging party when he was unable to present such a document. The antidiscrimination provision of the INA prohibits employers from subjecting employees to unnecessary documentary demands based on the employee’s citizenship, immigration status or national origin.
Levy cooperated with the department throughout the investigation, quickly reinstated the charging party, and restored his lost wages and leave benefits. Under the settlement, Levy must pay a civil penalty to the United States, undergo department-provided training on the anti-discrimination provision of the INA and be subject to departmental monitoring and reporting requirements.
“The Justice Department is committed to ensuring the rights of lawful U.S. workers to be free from discriminatory barriers based on their citizenship, immigration status or national origin,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “We commend Levy for working with the Civil Rights Division to implement the corrective action resolving this matter.”
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
Levy Settlement AgreementInternational Fugitive from Child Exploitation Charge ApprehendedRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the arrest of David Wright (28, Sebastian, FL) in the Eastern District of Virginia. Wright has been charged in two separate indictments with attempted enticement of a minor and failure to appear, respectively. If convicted of the attempted enticement charge, he faces a maximum penalty of life in federal prison. If convicted of the failure to appear charge, he faces a maximum penalty of 10 years in federal prison.
According to court documents, between January 2 and January 9, 2013, Wright attempted to entice a minor to engage in sexual activity. He failed to appear for his federal trial in the Middle District of Florida and on June 11, 2014, a bench warrant was issued. Wright fled to Dubai but was apprehended by law enforcement. After his arrest, he was remanded to the custody of the United States Marshals Service pending further proceedings in the Middle District of Florida.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Marshals Service. It will be prosecuted by Assistant United States Attorney James D. Mandolfo.
Indictment Unsealed Charging 14 from Sumter in Midlands Cocaine Trafficking ConspiracyRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that the Columbia Violent Gang Task Force (CVGTF), of which the City of Sumter is a member, arrested several defendants who are charged in an indictment with conspiring to possess with intent to distribute and to distribute cocaine and crack cocaine in the midlands of South Carolina. All defendants who were arrested this week will appear for bond hearings at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina, tomorrow at 10:00 am before the Honorable Shiva V. Hodges, United States Magistrate Judge.
The arrests this week mark the next step in the CVGTF’s efforts to combat violent crime linked to drug trafficking in the Sumter and Columbia areas of South Carolina.
The investigation began in 2015 when FBI, DEA, and City of Sumter Task Force Officers targeted the cocaine sources of supply who were selling cocaine to the defendants referenced above. Agents and Task Force Officers previously conducted arrest operations in May 2016, October 2015, August 2015, and June 2015. To date, this investigation has resulted in the convictions of fifty defendants for drug trafficking conspiracy charges and/or money laundering offenses.
Multiple law enforcement agencies participated in this case, including the Federal Bureau of Investigation, the South Carolina Law Enforcement Division, the Sumter City Police Department, the Sumter County Sheriff’s Department, the Richland County Sheriff’s Department, and the Columbia Police Department.
This case represents another example of the collaboration between local, state, and federal law enforcement agencies in South Carolina. Assistant United States Attorney Ben Garner of the Columbia office is prosecuting the case.
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Honduran National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DENIS A. MUNOZ-RODRIGUEZ, age 35, a native of Honduras, pled guilty today to a one-count Indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, MUNOZ-RODRIGUEZ, was previously removed from the United States on January 16, 2003. He was later found in the Eastern District of Louisiana on November 3, 2016, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
MUNOZ-RODRIGUEZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000. U.S. District Court Judge Ivan L.R. Lemelle set sentencing for March 22, 2017.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Homer resident sentenced to 24 months in prison for failing to update sex offender registrationRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Homer resident was sentenced Wednesday to 24 months in prison for failing to update his sex offender registration.
James Fernando Rhodes, 50, of Homer, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of failure to update sex offender registration. He was also sentenced to three years of supervised release. According to the September 28, 2016 guilty plea, the Marion County Sheriff’s Office in Indiana conducted a sex offender compliance check on Rhodes in March of 2013. He was not found at his reported address and a warrant was issued for his arrest. A tip to the Claiborne Parish Sheriff’s Office led to Rhodes’ arrest in May of 2016. He later admitted to living in Louisiana for two years without registering as required by law. The defendant was convicted of indecency with a child-sexual contact on December 8, 1995 in Dallas County, Texas, and was required to register as a sex offender for life.
The U.S. Marshals Service, Claiborne Parish Sheriff’s Office and Marion County Sheriff’s Office in Indiana conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick prosecuted the case.
Holiday Man Sentenced to Forty Years for Armed Bank RobberiesRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Anthony Maresca (54, Holiday) to 40 years in federal prison for multiple armed bank robberies in the Tampa Bay Area. He pleaded guilty in October 2016.
According to court documents, beginning in late 2014, Maresca robbed eight banks in Pinellas and Pasco counties over a six-month period. Each time, he wore a disguise, pointed a silver handgun at the teller, and demanded cash. The robbery spree began shortly after Maresca learned that law enforcement officers wanted to question him regarding the 2014 murder of Pasco county resident Billy Shuler. Maresca left his Holiday home and lived out of local motels until he was eventually arrested. The federal case has concluded and Maresca now faces a first degree murder charge in the Shuler case brought by state authorities.
The bank robberies were investigated by the Federal Bureau of Investigation, the Pinellas County Sheriff’s Office, the Pasco County Sheriff’s Office, the Hernando County Sheriff’s Office, the Clearwater Police Department, and the Pinellas Park Police Department. The case was prosecuted by Assistant United States Attorneys Michael Leeman and Simon Gaugush.
Four People Charged with Sex Trafficking Minors in PhiladelphiaRead the Press Release
A superseding indictment was returned today against four people charged with engaging in the sex trafficking of minors in Philadelphia announced Acting United States Attorney Louis D. Lappen. Charged in the superseding indictment are: Collin Cowell (26), a/k/a “Tyson,” Rocio Ramos (38), a/k/a “Delci,” Idalis Mendez (20), a/k/a “Dali,” and Robert Broaddus (23), of Philadelphia, Pennsylvania.
According to the indictment, the defendants are charged with sex trafficking 3 Minors. Mendez was further charged with one count of production of child pornography. Cowell and Mendez were also charged with one count of distributing child pornography.
If convicted, the defendants face the following statutory maximum possible sentences: Cowell, life imprisonment with a 10-year mandatory minimum term of imprisonment; Ramos, life imprisonment with a 10-year mandatory minimum term of imprisonment; Mendez, life imprisonment with a 15-year mandatory minimum term of imprisonment; and Broaddus, life imprisonment with a 10-year mandatory minimum term of imprisonment, plus possible fines, restitution, and special assessments.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Four Defendants Plead Guilty in Seventh Ward-Based Heroin and Firearms ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced the guilty plea of four defendants in a wide-ranging federal narcotics investigation. DARRELL LEWIS, a/k/a “Lil’ Darrell,” age 31; KEVIN WALKER, age 24; CARL LEWIS, a/k/a “Curl,” age 24; and STERLING PIPKINS, a/k/a “Shoe,” age 32; all of New Orleans, pled guilty today to conspiracy to distribute heroin.
DARRELL LEWIS pled guilty to conspiracy to distribute one kilogram or more of heroin, for which he faces a mandatory minimum of 20 years in prison and a maximum of life imprisonment, a maximum $20,000,000 fine, and at least 10 years of supervised release. CARL LEWIS, KEVIN WALKER, and STERLING PIPKINS each pled guilty to conspiracy to distribute 100 grams or more of heroin. Due to his prior criminal history, CARL LEWIS faces a mandatory minimum of 10 years in prison and a maximum of life imprisonment, a maximum $8,000,000 fine, and at least 8 years of supervised release. KEVIN WALKER and STERLING PIPKINS each face a mandatory minimum of 5 years and maximum of 40 years of imprisonment, a maximum $5,000,000 fine, and at least 4 years of supervised release.
Additionally, DARRELL LEWIS, KEVIN WALKER, and CARL LEWIS also pled guilty to conspiracy to possess and use firearms in furtherance of a drug conspiracy. That charge carries a maximum sentence of 20 years in prison, a $250,000 fine, and up to 3 years of supervised release.
According to court documents, DARRELL LEWIS, KEVIN WALKER, CARL LEWIS, and STERLING PIPKINS conspired together to sell heroin in New Orleans’ Seventh Ward, specifically the intersection of Frenchmen and North Villere Streets. DARRELL LEWIS was the leader of the group. KEVIN WALKER, CARL LEWIS, and STERLING PIPKINS served as street-level dealers, selling heroin to both other heroin dealers and users. Another defendant, DARRYL LEWIS, a/k/a “Uncle Tom,” a/k/a “Poppa Tom,” age 62, tested the heroin, stored guns, and helped sell heroin as well.
Members of this conspiracy kept and maintained firearms in furtherance of their drug trafficking activities. On October 23, 2014, Darryl Lewis was arrested by officers with the Major Crimes Task Force at his residence at 1320 Frenchmen Street, New Orleans. Pursuant to a search and seizure warrant, officers recovered an Armalite Model AR10, 7.62x51mm rifle; a Bushmaster Model XM15E2S AR15-pattern, 5.56mm rifle; a Stag Arms AR15-pattern, 5.56mm rifle; a MAK90 AK47-pattern, 7.62x39mm rifle; a Norinco SKS, 7.62x39mm rifle; and a SKS-pattern, 7.62x39mm rifle. DARRYL LEWIS was initially charged in Orleans Parish Criminal District Court and was released after posting a bond.
More guns were recovered when the co-conspirators were arrested by FBI agents, DEA agents, and NOPD officers on December 12, 2014, pursuant to arrest warrants issued by the U.S. District Court in this case. Agents recovered a loaded Glock Model 27 handgun with an extended clip at DARRELL LEWIS’s residence and a loaded Glock 23 handgun in WALKER’s possession. Agents also arrested DARRYL LEWIS again at 1320/1322 Frenchmen Street and found a black DPMS AR-15 rifle under his bed.
Court documents show that the conspiracy reached beyond the Seventh Ward. DARRELL LEWIS also used a home on Robert E. Lee Boulevard for selling heroin. Additionally, New Orleans dealers Nichiren Radcliffe, a/k/a “Lil’,” a/k/a “Taneshen Grandberry” and Conquistadore Martin, a/k/a “Melvin Moore,” a/k/a “Bob,” bought heroin from DARRELL LEWIS and occasionally supplied DARRELL LEWIS with heroin as well. Moreover, DARRELL LEWIS and MARTIN conspired along with MICHAEL MCQUITTY, a/k/a “Rooster,” a/k/a “Fat Mac,” and Nerimane Bouchama to rob a drug dealer in Columbia, Missouri. This robbery scheme eventually involved MARTIN, MCQUITTY and BOUCHAMA travelling to Missouri on a bus with at least one firearm, but FBI agents were able to defeat the plan when MARTIN and RADCLIFFE were detained in Missouri through the assistance of the St. Louis County Police Department.
The four defendants who pleaded guilty today were the last defendants pending in a twelve-defendant indictment that included narcotics and firearm-related charges. Other defendants who had already pleaded guilty in this case included NICHIREN RADCLIFFE, CONQUISTADORE MARTIN, MICHAEL MCQUITTY, NERIMANE BOUCHAMA, DEMOINDE ROWLEY, TYRONE HUDSON, and IRVIN WATSON.
DARRELL LEWIS, KEVIN WALKER, CARL LEWIS, and STERLING PIPKINS will be sentenced on May 18, 2017 by U.S. District Judge Carl J. Barbier. PIPKINS was previously convicted of possession of a firearm as a felon in the United States District Court in October 2008, and he was on federal supervised release when he was arrested in this case in December 2014. He faces a revocation hearing before United States District Judge Lance M. Africk on April 20, 2017
U.S. Attorney Polite praised the work of the FBI New Orleans Field Office. Assistance was provided by the DEA New Orleans Field Division, the New Orleans Police Department, the Major Crimes Task Force, the FBI Kansas City Division (Jefferson City Resident Office), and the St. Louis County Police Department. Assistant United States Attorneys Matthew Payne, Shirin Hakimzadeh, and Andre Lagarde are in charge of the prosecution.
Former Rutherford County Sheriff's Major Pleads Guilty to Unlawfully Obtaining U.S. CitizenshipRead the Press Release
Terry McBurney, 47, of Murfreesboro, Tenn., and former Major with the Rutherford County Sheriff’s Department, pleaded guilty today in U.S. District Court to charges of unlawful procurement of naturalization; making false statements under oath in matters relating to his application for U.S. citizenship and naturalization status; and wire fraud, announced Jack Smith, Acting U.S. Attorney for the administration of this case. These charges arose from an indictment returned by a federal grand jury in November 2016.
According to the indictment, McBurney was born in Ireland. In September 2010 McBurney submitted an application for employment to the Rutherford County Sherriff’s Office and also submitted a completed Department of Homeland Security Form I-9, Employment Verification Eligibility. Both documents were marked indicating that McBurney was a United States citizen. In December 2010 McBurney submitted an application to the Tennessee Peace Officer Standards and Training (POST) Commission that was also marked indicating that he was a United States citizen. During the plea hearing, McBurney admitted that he was not in fact a United States citizen.
McBurney obtained Tennessee POST certification in May 2011which made him eligible to receive a $600 per year pay supplement and he received supplemental payments of $600 in 2013, 2015, and 2016. In 2013, McBurney was promoted to the position of captain in the Rutherford County Sheriff’s Office and on or about January 18, 2016, McBurney was again promoted, this time to the position of major. Rutherford County required individuals holding the position of captain or major to meet a number of requirements, including being a United States citizen. McBurney also admitted during the plea hearing, that he was not a United States citizen at this time.
The indictment further alleged that McBurney submitted an application for naturalization to seek status of a United States citizen in September 2015 and participated in an interview regarding the application in December 2015. On the application and during an interview with an immigration officer of the U.S. Citizenship and Immigration Services, McBurney denied that he had ever claimed to be a United States citizen in writing or any other way. On February 24, 2016, McBurney took the oath of allegiance and was naturalized as a United States citizen. McBurney admitted that he in fact made false statements in order to procure U.S. citizenship.
McBurney will be sentenced on May 12, 2017. He faces up to 10 years in prison for unlawful procurement of naturalization or citizenship, up to 5 years for making a false statement under oath in a matter relating to naturalization, and up to 20 years in prison for wire fraud. McBurney also faces a $250,000 fine for each charge and possible revocation of his U.S. citizenship.
This case was investigated by ICE- Homeland Security Investigations and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Amanda J. Klopf is prosecuting the case.
Former North Shore Resident Charged with Wire Fraud, ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BILAL AHMED, a/k/a “Bill,” age 41, formerly of Covington, was charged today in a three count Indictment charging him with two counts of wire fraud and one count of conspiracy to commit wire fraud.
AHMED is charged with devising a scheme to defraud others which he posed as a wealthy individual who stood to received millions of dollars, including from his native country of Pakistan. It is alleged that he induced at least one other conspirator to work with him, directing this conspirator to pretend to be a bank employee and make other false statements. AHMED presented false documents, including a fraudulent $100,000,000 loan document to others. As a result of AHMED’s fraudulent representations, he caused wirings totally $70,000 to be made in interstate commerce.
If convicted, AHMED faces a statutory maximum sentence of twenty years in prison for each of the wire fraud counts, and a five-year term of imprisonment on the conspiracy charge. He also faces substantial monetary penalties, supervised release, and restitution.
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilty of the defendant must be proved beyond a reasonable doubt
U.S. Attorney Polite commended special agents of Homeland Security Investigations and St. Tammany Parish Sheriff’s Deputies, who investigated the case. Assistant U.S. Attorney Hayden Brockett is in charge of the prosecution.
Former Goodwill Employee and Another Man Sentenced for Stealing Grant Money Destined for Homeless VeteransRead the Press Release
HOUSTON – Two area men have been ordered to federal prison following their convictions of conspiracy and wire fraud, announced U.S. Attorney Kenneth Magidson. A federal jury sitting in Houston convicted Aaron Matthew Pierce, 37, of Houston, following a five-day trial Nov. 14, 2016, while Darrell Demond Arline, 37, of Pearland, pleaded guilty on the first day of trial to all counts as charged - conspiracy to commit wire fraud and 14 counts of wire fraud.
Today, U.S. District Judge Alfred H. Bennett, who presided over the trial, handed Arline a 48-month sentence, while Pierce was ordered to serve a sentence of six months in federal prison, each to be followed by three and two years, respectively. Arline was further ordered to pay a $316,512.13 in restitution and Pierce’s restitution amount was set at $18,016. In handing down the sentence, Judge Bennett noted that the victims of this crime were the military veterans of this country.
Airline was Goodwill’s program manager for U.S. Department of Veteran Affairs (VA) Supportive Services for Veteran Families (SSVF) grants. These were multi-million dollar grants which were awarded to Goodwill Industries of Houston to aid Veterans and their families with housing.
Arline recruited his friend, Pierce, to cash fraudulently issued SSVF grant checks by allowing his name and a sham sole proprietorship to be used to represent to Goodwill that he was providing emergency housing assistance to veterans and their families who were either homeless or about to become homeless.
Between Jan. 3, 2013, and Aug. 28, 2014, Pierce and Arline entered into a conspiracy to steal money from the grant by submitting fraudulent purchase orders resulting in the theft of grant monies. The SSVF grants were intended to provide supportive services to very low-income military veteran families who were residing in permanent housing, were homeless and scheduled to become residents of permanent housing within 90 days and after exiting permanent housing or were seeking other housing that was responsive to such very low-income military veteran family’s needs.
Previously released on bond, Arline was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Pierce was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The VA - Office of Inspector General, Criminal Investigations Division conducted the investigation. Assistant U.S. Attorneys Daniel C. Rodriguez and Adam L. Goldman prosecuted the case.
Five Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that five previously deported aliens were indicted separately on February 1, 2017, by a federal grand jury in Harrisburg on illegal re-entry charges.
According to United States Attorney Bruce D. Brandler, Jose Martinez-Rojas, age 36, of Mexico, was previously deported from the United States to Mexico in April 2007. He is alleged to have illegally re-entered the United States sometime after April 2007, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Jorge Cervantes-Gomez, age 31, of Mexico, was previously deported from the United States to Mexico in February 2005. He is alleged to have illegally re-entered the United States sometime after February 2005, and was found in the United States in Cumberland County after eluding examination or inspection by immigration officers.
The maximum penalty under federal law for Martinez-Rojas and Cervantes-Gomez’s offenses are two years of imprisonment, a term of supervised release following imprisonment, and a fine.
Francisco Cervantes-Guizar, age 38, of Mexico, was previously deported from the United States to Mexico in October 2006. He is alleged to have illegally re-entered the United States sometime after October 2006 and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers. In 2006, he was convicted before the United States District Court for the Middle District of Pennsylvania of false statement in a United States Passport Application, an offense which subjects him to enhanced penalties in the current case.
Luis Alberto Silva-Saldana, age 24, of Mexico, was previously deported from the United States to Mexico in July 2014. He is alleged to have illegally re-entered the United States sometime after July 2014, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers. In 2014, he was convicted in the Berks County Court of Common Pleas of fleeing or attempting to elude a police officer, an offense which subjects him to enhanced penalties in the current case.
Abel Salazar-Diaz, age 40, of Mexico, was previously deported from the United States to Mexico in August 2010. He is alleged to have illegally re-entered the United States sometime after August 2010, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers. In 2010, he was convicted in the Southern District of Texas of illegal re-entry, an offense which subjects him to enhanced penalties in the current case.
The maximum penalty under federal law for Cervantes-Guizar, Silva-Saldana, and Salazar-Diaz’s offenses are ten years of imprisonment, a term of supervised release following imprisonment, and a fine.
The cases were investigated by the U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Five Members of Bradenton-Based Drug Trafficking Conspiracy Indicted for Federal Drug OffensesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Francisco Avellaneda-Hernandez, a/k/a “Flaco” (28, Bradenton), Gonzalo Delarosa, a/k/a “Gordo” (24, Bradenton), Glenn Olvera (25, Sarasota), Sergio David Gutierrez-Olmos, a/k/a “Chavo,” a/k/a “Chilango” (36, Bradenton), and Alexis Hernandez, a/k/a “Alex” (53, Atlanta, GA) with conspiracy to distribute and possess with the intent to distribute more than five-hundred grams of methamphetamine and more than one kilogram of heroin. If convicted on all counts, each faces a minimum mandatory of 10 years, up to life, in federal prison. The indictment also notifies the defendants that the United States intends to forfeit any assets that are alleged to be traceable to proceeds of the offense.
According to the indictment, between April and November 2016, the individuals conspired to distribute methamphetamine and heroin. In addition to the conspiracy, Avellaneda-Hernandez, Delarosa, Gutierrez-Olmos, and Olvera are charged in separate counts with possession of methamphetamine with the intent to distribute it.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Amarillo Sky.” The investigation was conducted by the Drug Enforcement Administration, with assistance from the U.S. Customs and Border Patrol, the Polk County Sheriff’s Office, the Manatee County Sheriff’s Office, the Pasco County Sheriff’s Office, the Hardee County Sheriff’s Office, the Lakeland Police Department, the Plant City Police Department, and the New York Police Department. It will be prosecuted by Assistant United States Attorney Dan Baeza.
Final Two Defendants in Methamphetamine Conspiracy SentencedRead the Press Release
Abingdon, VIRGINIA – The final two members of a drug trafficking conspiracy that supplied local sources with large qualities of ICE methamphetamine for multiple years were sentenced today in the United States District Court for the Western District of Virginia in Abingdon, Acting United States Attorney Rick A. Mountcastle announced.
Ronald Sizemore, 56, of Kentucky, previously pled guilty to one count of conspiracy to distribute and possess with the intent to distribute ICE methamphetamine. Today in District Court, Sizemore was sentenced to 70 months in federal prison. Also in District Court today, Ysidro Juarez III, 53, of Houston, Texas, who previously pled guilty to a lesser included count of conspiring to distribute and possess with the intent to distribute methamphetamine, was sentenced to 84 months in federal prison.
During previous hearings, Angel Soliz Jr., 37, of Houston was sentenced to 240 months in federal prison and Angel Soliz Sr., 53, also of Houston, was sentenced to 240 months in federal prison. Soliz Jr. also agreed to forfeit more than $800,000 in cash to the United States, which was seized from his home in Texas. Another co-conspirator, Bige Maggard, was sentenced to 30 months in federal prison.
According to evidence presented by prosecutors, the defendants admitted to being the sources of much of the ICE methamphetamine that was sold in a multi-defendant conspiracy and which has resulted in more than a dozen federal convictions in U.S. District Court in Abingdon. Soliz Sr. and Soliz Jr. coordinated the supply of methamphetamine from Texas, while other co-defendants worked under them to help distribute the drugs. During the course of the conspiracy, various persons from Eastern Kentucky and Southwest Virginia would traveled to Texas to purchase methamphetamine and subsequently transport it back via interstate highways, avoiding law enforcement detection along the way. Once the ICE methamphetamine had arrived in Kentucky and Virginia, it would be distributed to others using local dealer, such as Sizemore.
The investigation of the case was conducted by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives; United States Drug Enforcement Administration; Virginia State Police; Kentucky State Police; Harris County, Texas Sherriff’s Office; and Russell County, Virginia Commonwealth’s Attorney’s Office. Special Assistant United States Attorney Kevin Jayne and Special Assistant United States Attorney and Russell County Commonwealth Attorney Brian Patton prosecuted the case for the United States.
Federal Jury Convicts Three Brothers and Their Associate in A Massive Heroin ConspiracyRead the Press Release
Fort Myers, FL – United States Attorney A. Lee Bentley, III announces that a federal jury has found three brothers from Cape Coral, Gorge Antonio Vargas (34), Javier Martin Villar (47), and Daniel Vargas (32), and an associate, Zacharias Abab Aguedo (36, Fort Myers), guilty of conspiracy to possess with the intent to distribute one kilogram or more of heroin. The jury also found Gorge Vargas, Daniel Vargas, and Zacharias Abab Aguedo guilty of possession with the intent to distribute, and distribution of heroin. Javier Martin Villar previously pleaded to the same charge. Each faces a minimum mandatory penalty of 10 years, up to life, in federal prison. The sentencing hearings have been set for May 15, 2017.
According to evidence presented at trial, between January 1, 2013, and September 2, 2015, Gorge Vargas was the leader of the conspiracy that distributed massive quantities of heroin from a drug house located on Dean Street in the Tice neighborhood of Fort Myers. Vargas’s brother, Javier Martin Villar, joined the conspiracy in 2013, and his other brother, Daniel Vargas, joined the conspiracy in 2015. The brothers would receive large amounts of heroin from Chicago, repackage it into smaller baggies, and then distribute it in Fort Myers for $20 per bag.
As part of this case, deputies from the Lee County Sheriff’s Office (LCSO) seized more than 1.35 kilograms (approximately 3 pounds) of uncut heroin. At the time of the seizure, this was the largest single seizure of heroin in LCSO history. In addition, several firearms were recovered, including a pistol-grip style AK-47, two semi-automatic firearms, and one revolver, all of which were located in close proximity to distribution amounts of heroin. LCSO also seized multiple vehicles and more than $40,000 in connection with this heroin distribution conspiracy.
This case was investigated by the Lee County Sheriff’s Office Field Support Unit and the Federal Bureau of Investigation’s Violent Crimes Task Force. It is being prosecuted by Assistant United States Attorneys Charles Schmitz and Simon R. Eth.
Federal Jury Convicts St. Thomas Woman of Participating in a Cocaine ConspiracyRead the Press Release
St. Thomas, USVI – On February 1, 2017, Kanya Tirado, 38, of St. Thomas, was found guilty by a federal jury of one count of cocaine conspiracy and two counts of possession of cocaine.
Tirado faces a mandatory minimum sentence of 10 years of incarceration, a maximum fine of $10,000,000, and a special assessment of $100. Judge Curtis Gomez remanded Tirado into the custody of the U.S. Marshals Service pending her sentencing on June 6, 2017.
According to the evidence presented at trial, Tirado was a member of drug organizations led by Nilda Morton. Morton supplied cocaine to Vanier Murraine utilizing Delta Airlines employees Taheeda George and Roniqua Hart, who used their security clearances at the Cyril E. King Airport to smuggle Morton’s cocaine to Tirado, Dellana Magner, Kinia Blyden, and Jerrisha Rawlins, after completing their pre-boarding security clearance, but before boarding their commercial flights to the U.S. mainland.
On three occasions between December 2015 and February 2016, Tirado smuggled more than five kilograms of Morton’s cocaine to the U.S. mainland after receiving it from Hart and Taheeda George in the bathrooms at the Cyril E. King airport. Security surveillance at the airport captured the activities of the defendants as they entered the public restroom located in the Spirit Airlines lounge where Hart and George removed vacuum-sealed packages of cocaine from their bodies and placed them in the couriers’ carry-on bags before boarding their flights. After the cocaine was sold stateside, Nilda Morton arranged for her brother Rasheem Morton, Tirado, Dellana Magner, Te’Nae George, Kinia Blyden, Jerrisha Rawlins, Roniqua Hart and Monique David to transport the cash proceeds back to St. Thomas where she took possession of the money. The investigation culminated on July 1, 2016, with the arrest of Dellana Magner after she smuggled 3 kilograms of cocaine onboard an American Airlines flight destined for Miami.
Twelve members of Morton’s drug trafficking organization pleaded guilty to drug related charges. Vanier Murraine, 34, a native of St. Thomas and resident of Detroit; Christopher Butler, 30, and Drue Williams, III, 35, of Twinsburgh, Ohio; Nilda Morton, 32, Taheeda George, 37, Roniqua Hart, 24, Dellana Magner, 23, Kinia Blyden, 23, and Jerrisha Rawlins, 23, of St. Thomas, all pleaded guilty to possession with intent to distribute cocaine. Rasheem Morton, 36, Monique David, 40, and Te’Nae George, 23, of St. Thomas, pleaded guilty to money laundering conspiracy. All defendants were remanded to the custody of the U.S. Marshals Service pending sentencing on June 1, 2017.
This case is the result of a joint investigation by the Federal Bureau of Investigation in Pittsburgh, New York, Cleveland, Detroit, and St. Thomas. It was prosecuted by Assistant United States Attorney Delia L. Smith.
Federal Child Pornography Charge Filed Against Prominent San Antonio PhotographerRead the Press Release
In San Antonio, 46–year-old professional photographer Christopher Alexander Reilly, doing business as Chris Reilly Photography, is charged with one count of receipt of child pornography announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
A federal complaint unsealed this morning, alleges that Reilly downloaded child pornography from the Internet onto a computer hard drive last month. According to the complaint, on January 24, 2017, a data recovery firm reported to the FBI that they discovered videos depicting minors engaged in sexually explicit conduct on one of two hard drives submitted for recovery by the defendant.
FBI agents took possession of both computer hard drives and on Tuesday, executed a search warrant at Reilly’s residence where they seized his cellphone as well as an assortment of photography equipment, computers, and storage devices.
At this time, investigators have not positively identified any of Reilly's clients or subjects of his professional photography in child porn images. However, the investigation is continuing.
“As this investigation moves forward, the FBI will continue to focus significant resources on identifying and notifying those who were potentially victimized by the defendant to ensure they are provided appropriate access to victim services and support,” stated FBI SAC Combs. “Anyone possessing information about improper or unlawful activities by Reilly or the production of child pornography should contact the FBI in San Antonio at (210) 225-6741.”
Reilly remains in federal custody following his arrest yesterday afternoon and initial appearance in federal court this morning. Upon conviction, Reilly faces between five and 20 years in federal prison. A detention hearing for the defendant is scheduled for 10:00am on February 7, 2017, before United States Magistrate Judge Henry J. Bemporad in San Antonio.
Assistant United States Attorney Tracy Thompson is prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
El Paso Duo Sentenced to Federal Prison for an Estimated $2 Million Ponzi SchemeRead the Press Release
Two El Paso men were sentenced to federal prison terms and ordered to pay $2,013,242 restitution to their victims for carrying out an extensive Ponzi scheme announced United States Attorney Richard L. Durbin, Jr.; Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division; and, Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas Lindquist, El Paso Division.
This morning, Senior United States District Judge David Briones sentenced 59–year-old Clarence Counterman, owner of an income tax return preparation business known as Taxrite, to 12 years in federal prison followed by three years of supervised release. Judge Briones also sentenced Counterman’s co-defendant, 52–year-old Robert Loya, to ten years in federal prison followed by five years of supervised release. At the conclusion of today’s hearing, Judge Briones remanded both defendants, who had previously been out on bond, into U.S. Marshals Service custody.
“This classic pyramid scheme robbed unsuspecting investors in new energy technology of more than two million dollars. The punishments meted out by the Court fairly reflect the magnitude of the theft, which the defendants perpetuated for almost five years,” stated United States Attorney Richard L. Durbin, Jr.
On November 2, 2016, jurors convicted the pair of one count of conspiracy to commit wire fraud. Jurors also convicted Counterman and Loya of 14 and 13 substantive wire fraud counts, respectively. Jurors acquitted Loya of two substantive wire fraud charges and Counterman of one substantive wire fraud charge.
Evidence presented during trial revealed that from December 2008 to October 2013, the defendants conspired to convince others, including Counterman’s tax preparation clients, into investing into their solar energy related companies, including Renewable Energy Consultant, Inc. (Nevada); EP Solar Technologies, Inc. (Nevada); LITTCE, Inc. (Texas); and, Eco Global Corporation (Texas) by promising high rates of return. Contrary to the agreements with the victim investors, a significant amount of money was converted for personal use by Counterman, Loya and a third defendant, 54-year-old Leopoldo Parra of El Paso. The defendants also paid some returns to earlier investors from monies paid in by newer investors rather than from profits earned by these companies in an effort to avoid detection of their scheme and to lull investors into a false sense of security. Testimony during trial revealed that more than 50 investors lost more than a combined $2.1 million as a result of the defendants’ fraudulent scheme.
On November 30, 2016, Parra was sentenced to 30 months in federal prison followed by three years of supervised release and ordered to pay $486,695 restitution. August 10, 2016, Parra pleaded guilty to the conspiracy charge and one substantive wire fraud charge.
“These are significant sentences and should serve as a warning to those who seek to profit from fraudulent schemes,” said HSI Special Agent in Charge Waldemar Rodriguez, El Paso. “HSI is actively engaged in identifying these individuals and stopping their deceitful and unlawful endeavors.”
“This result reflects the hard work of the FBI and our partners in El Paso to protect the community from predatory practices that would cheat citizens out of their hard-earned income,” stated FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division
Assistant United States Attorneys Steve Spitzer and Chris Skillern prosecuted this case on behalf of the Government.
El Dorado County and Arizona Residents Indicted for Embezzling More Than $200,000 from Organic Food CompanyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against Jeffrey Scott Davis, 59, of Placerville, and Glen Michael Martinka, 67, of Phoenix, Arizona, charging them with conspiracy to commit mail fraud and mail fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between December 2008 and April 2012, Davis and Martinka conspired to embezzle approximately $218,000 from an organic food company by submitting false invoices. Davis was the national sales manager for the company and Martinka was an employee and part owner of a vendor that marketed and sold the company’s products. Davis and Martinka had invoices made that charged the company for services that the vendor did not perform. Davis authorized the payment of the false invoices, and based on these false invoices, the company made checks payable to the vendor and mailed the checks to Martinka in Arizona. Martinka then split the fraudulently obtained money with Davis by mailing checks made payable to Davis.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
If convicted, Davis and Martinka face a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
DTO Leader Sentenced to 30 Years in Federal PrisonRead the Press Release
LUBBOCK, Texas — This morning, Senior U.S. District Judge Sam R. Cummings sentenced Rudolfo Ledesma Castaneda, Jr., 31, to 360 months in federal prison, following his guilty plea in October 2016 to one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Castaneda and eleven defendants of a drug trafficking organization (DTO), mostly from the San Angelo, Texas, area, were arrested in July 2016 in a joint Organized Crime Drug Enforcement Task Force (OCDETF) operation led by the Drug Enforcement Administration (DEA), the Texas Department of Public Safety and the San Angelo Police Department. Other agencies, including the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Immigration and Customs Enforcement Homeland Security Investigations, and the Tom Green County Sheriff’s Office provided valuable assistance in the operation.
drug traffickers who have taken root in the San Angelo area and jeopardize the safety and security of our communities is a top priority for my office,” said U.S. Attorney Parker. “But one agency can’t do it alone. Today, I commend the dedicated efforts of the Drug Enforcement Administration, the Texas Department of Public Safety, and the San Angelo Police Department, in addition to the several other federal, state and local agencies that lent assistance when and where needed. When these agencies join efforts, nothing stands in their way, and we will push back hard against those who peddle this poison in our communities.”
“The state of Texas will not tolerate criminals who distribute drugs throughout our communities and endanger our residents,” said Texas Department of Public Safety Regional Commander Carey Matthews. “The department is proud to have participated in the multi-agency investigation that incorporated all levels of law enforcement and was key in identifying and disrupting this methamphetamine trafficking operation.”
“This investigation is another great example of the accomplishments of local, state and federal law enforcement agencies working together to make our communities a safer place,” said Chief Frank Carter of the San Angelo Police Department. “I am very thankful and proud of all the personnel who worked on this lengthy investigation.”
Castaneda was the DTO’s ringleader. Of the 12 defendants who were indicted, 11 have been convicted and 10 have been sentenced. The charges were dismissed against one of the defendants.
last sentencing in the case is set for defendant Richard Jasso, 39, of San Angelo, Texas, on February 17, 2017. Jasso was convicted at trial in November 2016 on one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. The government filed a notice of enhancement because Jasso has two previous “felony drug offenses.” If the Court finds those convictions are final and valid, then, by statute, the Court must impose a life sentence without parole.
Jesse Huerra, 31, of San Angelo, was sentenced to life in federal prison. He was convicted at trial in September 2016 on one count each of possession with intent to distribute 500 grams or more of methamphetamine, possession of firearms in furtherance of a drug trafficking crime, and being a convicted felon in possession of firearms.
Nancy Ann Flores, 41, of San Angelo, was sentenced to 15 months in federal prison. She pleaded guilty to one count of unlawful use of a communications facility.
Antonio N. Flores, 52, of San Angelo, was sentenced to 70 months in federal prison. He pleaded guilty to two counts of unlawful use of a communications facility.
Rudolfo Velasquez, 32, of San Angelo, was sentenced to 60 months in federal prison. He pleaded guilty to one count of possessing a firearm in furtherance of a drug trafficking crime and aiding and abetting.
Joe Lopez, III, 33, of San Angelo, was sentenced to 125 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute methamphetamine and aiding and abetting.
Jose G. Montez, 38, of San Angelo, was sentenced to 151 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute methamphetamine and aiding and abetting.
Shayna Kaye McCann, 25, of Great Falls, Montana, was sentenced to 10 months in federal prison. She pleaded guilty to one count of misprision of a felony.
Daniel Roy Lombrana, 29, of San Angelo, was sentenced to 87 months in federal prison. He pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute marijuana, with an enhancement for a prior conviction.
Gabriel Castaneda, 30, of San Angelo, was sentenced to 10 years in federal prison. He pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute methamphetamine.
The Texas Department of Public Safety, San Angelo Police Department, DEA and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Crowley man pleads guilty to taking videos of sex with minorRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Crowley man pleaded guilty Tuesday to using his cell phone to record sex acts with a minor.
Blake Damian Rodgers, 35, of Crowley, La., pleaded guilty before U.S. Magistrate Judge Carol Whitehurst to one count of production of child pornography. The plea will become final after it is accepted by U.S. District Judge Patricia Minaldi. According to the guilty plea, Rodgers was arrested and booked into the Acadia Parish jail February 24, 2016 on theft charges. While incarcerated, he had sexually explicit conversations on the phone with a 14-year-old minor. They discussed having had sexual intercourse and of videos he had taken of the acts on his cell phone. After retrieving the cell phone, law enforcement agents found several sexually explicit videos of the minor.
Rodgers faces 15 to 30 years in prison, five years to life of supervised release and a $250,000 fine. The court did not set a sentencing date.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. 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 U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Homeland Security Investigations and the Acadia Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney David C. Joseph is prosecuting the case.
Colorado U.S. Attorney's Office Closed Friday for MoveRead the Press Release
DENVER – To all news organizations. Tomorrow, Friday, February 3, 2017, the Colorado U.S. Attorney’s Office will be closed in order to move from our current address to 1801 California Street, Denver, Colorado 80202. The office will reopen on Monday, February 6, 2017 at that address. Phone numbers and email addresses will remain the same.
While the office is closed Friday, attorneys and staff will still be working on court and duty matters. An official announcement with the new address and contact information will be released on Monday morning.
Colorado U.S. Attorney Creates New Cybercrime and National Security UnitRead the Press Release
DENVER – Acting U.S. Attorney Bob Troyer announced today the creation of a new unit in the Colorado U.S. Attorney’s Office’s Criminal Division: The Cybercrime and National Security Section. This section will be staffed with six Assistant United States Attorneys who are experts in investigating and prosecuting cyber-enabled crimes and national security cases.
In addition to already having several cyber specialists, a national security cyber coordinator, and an anti-terrorism coordinator, the office created a Digital Currency Crimes Coordinator to address the emerging threat of criminals using digital currency and dark-net forums to commit serious crime that is difficult to track using traditional investigative techniques. Because of the ground-breaking work that the office has done in that area as well as other areas of cybercrime, it was recently awarded a cyber-dedicated Assistant U.S. Attorney. With that new position and because of the creation of this specialized section, this office will be in an even better position to respond to new, and ever more serious threats in the areas of cybercrime and national security.
The creation of this section will allow the office to build on the excellent work it has already been doing in cybercrime and national security cases. It will continue to investigate and prosecute cases targeting hacking, ransomware, network intrusions, denial of service attacks, economic espionage and trade secret theft, dark-net crime, national security cybercrime, counter-proliferation and export-control offenses, digital currency enabled crime, and child exploitation crimes. The office has investigated and prosecuted several such high-profile cybercrime cases including U.S. v. Rezendez, a prosecution involving a large-scale distributed denial of service attack; U.S. v. Bourret, et al., a computer intrusion case involving almost two million online accounts; U.S. v. Snowden, a prosecution involving economic espionage and trade secrets theft; U.S. v. Hugo, a production of child pornography case involving several children; U.S. v. Salias, a production of child pornography case involving an infant; and U.S. v. Holt et al., a prosecution involving a man and woman who sexually exploited three children. The section will also continue to expand its investigations and prosecutions of national security and terrorism matters as reflected in the good work it has already done in cases such as U.S. v. Conley, which involved a Colorado woman who met an ISIS fighter online and attempted to travel to Syria and provide support to the terrorist group; U.S. v. Ansberry, in which the defendant is charged for attempting to use an explosive device to destroy the Nederland Police Department; and U.S. v. Worku, which involved the investigation, prosecution, and trial of a convicted war criminal for visa fraud.
Statistics demonstrate the critical need for this new section. This District has increased its investigations and prosecutions into hacking and other cybercrimes by 20 percent over the last two years. Since 2014, there has been a 40 percent increase in child exploitation cases prosecuted. The largest increase was seen in cases involving the production of child pornography, Since 2012 there has been a 500 percent increase in child pornography production cases prosecuted in the District, many involving children who are toddlers and infants. In addition, nationally, since 1998 the National Center for Missing and Exploited Children (NCMEC) Cyber Tipline received 12.7 million reports, with 4.4 million coming in to the center in 2015 alone. NCMEC has reviewed 172 million images, and has identified more than 10,900 child victims.
Also, the office have prosecuted 16 individuals since 2014 for Bitcoin/Digital Currency crimes. Investigations aided by this section has also led to 9 individuals being prosecuted by foreign governments, and 6 to 10 individuals being prosecuted by state authorities.
“Cybercrime and national security crimes are increasingly urgent threats in the District of Colorado,” said Acting U.S. Attorney Bob Troyer. “This is what we do: identify emerging threats that we can effectively address, and fluidly deploy an elite team to meet the threat.”
The unit will also continue to build on the good working relationships it enjoys not only with our law enforcement partners, but with private industry. It will continue to conduct outreach and training to both law enforcement and private industry to solicit collaboration on cybercrime prevention and reporting. Cyber prosecutors in the office already regularly participate in numerous speaking engagements each year, and will continue to do so.
City of Cincinnati to Receive $450,000 from Drug Assets Seized in Federal ProsecutionRead the Press Release
CINCINNATI – U.S. Attorney Benjamin C. Glassman announced a final order of forfeiture has been filed in U.S. v. Christopher Whitfield, Tonia Whitfield and Steven Griffin, ordering the forfeiture of the more than $1 million in cash, among other things, that had been seized during the execution of search warrants in this case.
The Cincinnati Police Department will net approximately $450,000 from equitable sharing.
Also included in forfeiture in this case are: seven firearms, three properties in Cincinnati, five vehicles including two luxury vehicles and a motorcycle, multiple pieces of jewelry, Gucci and Rolex watches, two ballistic vests, a number of “mink” fur coats and vests, 13 designer handbags and Beats headphones and ear buds.
“This is a great illustration of the value of criminal forfeiture,” U.S. Attorney Glassman said. “Instead of enriching drug dealers, these proceeds will now be put to use combatting addiction and the other ravages of drug trafficking.”
“One of the government's most powerful weapons is the ability to seize through asset forfeiture the assets associated with narcotics-related crimes,” said Troy N. Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations.”
Christopher Whitfield, 42, of Cincinnati, Ohio was sentenced on November 3, 2016 to 120 months in prison after pleading guilty to one count of conspiracy to commit money laundering.
Tonia Whitfield, 41, of Cincinnati, Ohio was sentenced on December 14, 2015 to 12 months and one day in prison on three counts of money laundering.
Steven Griffin, 41, of Cincinnati, Ohio was sentenced on January 13, 2016 to 87 months in prison on one count each of possession with intent to distribute heroin and a felon in possession of a firearm.
A federal grand jury indicted the defendants in a 23-count indictment returned in April 2015. The indictment outlined that the group conspired to facilitate an illegal drug business, primarily cocaine and heroin.
As part of the conspiracy, the defendants operated “stash” houses to process, cut, package and store the drugs as well as firearms and money. In order to conceal the money generated from the drug sales, defendants would launder the profits by purchasing real and personal property and place assets in the names of other individuals.
This case was investigated by IRS-Criminal Investigation, FBI and the Cincinnati Police Department and was prosecuted by Assistant U.S. Attorneys Karl Kadon and Jessica W. Knight.
Central Valley Serial Robber Sentenced to 20 Years in PrisonRead the Press Release
FRESNO, Calif. — On Wednesday, U.S. District Judge Dale A. Drozd sentenced Ronald Castanon, 21, of Pinedale, to 20 years in prison for three counts of interference with commerce by robbery, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Castanon robbed three businesses at gunpoint: the Valero gas station at 10480 California 41 Business Route in Madera on October 3, 2015; the Arco gas station at 4149 N. Clovis Avenue in Fresno on October 4, 2015; and the Yo-Town Yogurt shop at 29424 Auberry Road in Prather on October 4, 2015.
At the Yo-Town Yogurt shop, Castanon entered the store, pointed a silver, long-barreled revolver at the 16-year-old clerk and demanded money. On October 5, 2015, a Fresno County Sheriff’s deputy saw the Chevy Impala that had been involved in the robberies. After Castanon got into the vehicle and drove away, the deputy followed him for several minutes and saw him throw a gun out of the window, which was later recovered. Castanon continued for 130 miles was later arrested with the assistance of air support.
“Project Safe Neighborhoods is a program that spans nationwide. The program is committed to reducing gun and gang crime. ATF has been a part of Project Safe Neighborhood for several years,” said Special Agent in Charge Jill Snyder. “The successful results that stem from partnerships between law enforcement agencies, like the one seen in this case, help to make our streets a safer place.”
This case was the product of an investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fresno County and Madera County Sheriffs’ Offices. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders. Assistant U.S. Attorney Kimberly Sanchez prosecuted the case.
Buffalo Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Rasheen Newkirk, 42, of Buffalo, NY, pleaded guilty to possession of heroin with intent to distribute and unlawful possession of a firearm and ammunition by a felon, before U.S. District Judge Richard J. Arcara. The charges carry a maximum penalty of 20 years and a $1,000,000 fine.
Assistant U.S. Attorneys Wei Xiang and Patricia Astorga, who are handling the case, stated that on December 11, 2013, Newkirk was arrested by Drug Enforcement Administration agents in Buffalo. A search of Newkirk’s house in Buffalo yielded, among other evidence, a quantity of heroin, 205 glassine envelopes, and a loaded Glock handgun. The defendant served a 112-month sentence for a previous federal firearm conviction and was prohibited from legally possessing any firearm and ammunition.
Newkirk pleaded guilty as jury selection was scheduled to begin for his trial tomorrow morning.
The plea is the result of an investigation by the Drug Enforcement Administration Resident Offices in Buffalo, Toledo, Ohio, and Chicago, Illinois, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, and the Ohio State Highway Patrol.
Sentencing is scheduled for May 15, 2017, at 12:30 p.m. before Judge Arcara.
Buffalo Man Convicted by A Federal Jury of Being A Felon in Possession of A GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has found Justin Vazquez, 30, of Buffalo, NY, guilty of being a felon-in-possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Michael J. Adler and Michael P. Felicetta, who handled the prosecution of the case, stated that on January 29, 2015, the defendant’s mother made a 911 call to Buffalo Police claiming that she was being held hostage by Vazquez in her residence on Madison Avenue in Buffalo. There were also two minors present in the home according to the mother.
When officers arrived, the defendant was in the shower. During a search of the residence, officers found a loaded semi-automatic assault rifle in Vazquez’s bedroom. On the bedroom door was a hand written sign that read “no trespassing or you will be shot.” Forensic testing determined that the defendant’s DNA was on the rifle.
The defendant was previously convicted on three felony charges of Criminal Contempt in State Court which prevented him from legally possessing a firearm.
The verdict is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Sentencing is scheduled for May 11, 2017, at 10:30 a.m., before Chief U.S. District Judge Frank P. Geraci, Jr. who presided over the trial.
Brevard County Man Sentenced to Fifteen Years for Conspiracy to Commit Money LaunderingRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced James Long (44, Brevard County) to 15 years in federal prison for conspiracy to commit money laundering. The Court also ordered him to forfeit numerous assets, including cash and real estate properties, which were proceeds traceable to the offense. He pleaded guilty on October 11, 2016.
According to the plea agreement, between 2010 and June 2013, Long and others used the Professional Pain Center located at 860 East State Road 434 in Longwood to cause the distribution and dispensation of controlled substances outside the usual course of professional practice and for no legitimate medical purpose.
Long, as president and owner of the clinic, employed approximately 10 physicians who were willing to write unlawful and invalid prescriptions for Schedule II and Schedule III controlled substances. Long admitted that doctors working for his clinic had engaged in a pattern of issuing prescriptions for controlled substances without a legitimate medical reason, outside the usual course of professional practice. According to the plea agreement, any reasonably prudent physician would not have issued such prescriptions for controlled substances in the quantity and combinations prescribed because of the danger of overdose and death, coupled with the likelihood of diversion.
Long and his conspirators also conducted financial transactions involving the drug proceeds to conceal the source of the funds. These transactions generally involved the structuring of cash deposits and the purchase of properties and other assets.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
Boone County felon sentenced to federal prison for gun crimeRead the Press Release
Charleston, W.Va. – A Boone County felon who sold a rifle to an informant was sentenced today to a year and a half in federal prison for illegally possessing the firearm, announced United States Attorney Carol Casto. Gregory Scott Runion, 34, of Seth, previously pleaded guilty to being a felon in possession of a firearm.
On March 25, 2016, Runion sold a KBI Inc., Russian SKS-45 rifle to an informant working for the U.S. 119 Drug and Violent Crime Task Force. Runion was prohibited from possessing any firearm under federal law because of a 2009 felony firearm possession conviction in Monroe, Michigan.
The U.S. 119 Drug and Violent Crime Task Force conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Bergen County, New Jersey, Man Gets Probation for Helping Disguise Foreign Contributions During 2012 Presidential ElectionRead the Press Release
NEWARK, N.J. – A Paramus, New Jersey, man was sentenced today to one year of probation for helping funnel $80,000 in campaign contributions from a foreign source to the joint fundraising committee of the President of the United States during the 2012 presidential election, U.S. Attorney Paul J. Fishman announced.
Bilal Shehu, 48, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with knowingly and willfully making foreign contributions and donations in connection with the 2012 presidential election and to a fundraising and political campaign committee of the president, aggregating $25,000 or more during a calendar year. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In September 2012, Shehu, a U.S. citizen living in New Jersey, received approximately $80,000 from a foreign source and provided it to a joint fundraising committee – including the authorized campaign committee of the president – to disguise the true origin of the money and so that a foreign national could attend a campaign event on Oct. 8, 2012, in San Francisco.
Federal law prohibits foreign nationals from making contributions to federal candidates or fundraising committees and, in order to attend the event, a foreign national needed to be accompanied by a U.S. citizen.
Shehu admitted that he received the $80,000 wire transfer into his New Jersey-based bank account from a foreign bank account in late September 2012, knowing that he was to provide it to the joint fundraising committee. In early October 2012, Shehu flew to San Francisco and attempted to gain entry into the San Francisco fundraising event with the foreign national, who was denied entry but was allowed to be photographed with the President.
No one on the joint fundraising committee has been accused of any wrongdoing and the committee has fully cooperated in the investigation leading to today’s sentencing.
William Argeros, 58, of Tampa, Florida, was also charged in this scheme and pleaded guilty on July 25, 2016. His sentencing is scheduled for Feb. 14, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the District of New Jersey’s Special Prosecutions Division and Trial Attorneys Charles Walsh and Peter Halpern of the Criminal Division’s Public Integrity Section.
Defense counsel: Alan M. Abramson Esq., New York
Battle Creek Hotel Owner Pleads Guilty to Lying to the US Department of Labor About Minimum Wage PaymentsRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that Mehul Chandubhai Patel, a/k/a “Mike Patel,” 31, of Battle Creek, Michigan, pled guilty today to lying to Labor Department investigators about the wages paid to his staff. The charges stem from Patel’s violation of minimum wage rules in connection with two hotels operated by him, in Battle Creek and Coldwater, Michigan.
Patel appeared in federal court today before Magistrate Judge Ellen Carmody and pled guilty to the crime of concealing a material fact from the federal government when obligated to disclose it. Patel admitted that during 2014, the Department of Labor (“DOL”) had found him to be in violation of minimum wage laws by underpaying his hotel employees. He thereafter signed an agreement promising to repay his employees. When requested to provide proof that he had done so, Patel sent DOL checks indicating that back wages had been repaid. However, he concealed the fact that he required his employees to return the money to him.
Patel faces up to five years in prison, restitution and other penalties. U.S. District Judge Paul Maloney will impose sentence on Patel.
Prosecution of the matter has been assigned to Timothy VerHey, Assistant U.S. Attorney. The matter was investigated by the U.S. Department of Labor, Office of Inspector General, Homeland Security Investigations, and the Battle Creek Police Department.
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Auto Parts Industry Executive Pleads Guilty to Obstruction of JusticeRead the Press Release
Executive Agrees to Serve 14 Months in a U.S. Prison
An executive of an automotive parts company pleaded guilty today for his role in a conspiracy to obstruct a federal investigation and for attempting to obstruct justice, the Department of Justice announced.
Futoshi Higashida, formerly the president of a U.S. joint venture of an automotive body sealing products supplier based in Hiroshima, Japan, pleaded guilty today in the U.S. District Court of the Eastern District of Michigan to a two-count indictment charging him with conspiring to obstruct justice and attempting to obstruct justice. As a part of the plea agreement, Higashida agreed to serve 14 months in prison, pay a $7,500 criminal fine and was sentenced accordingly today.
“The Antitrust Division takes just as seriously pursuing individuals in the automotive parts industry who attempt to hide the facts as it does the subversion of the competitive process,” said Acting Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “We will continue to pursue the truth and to protect American consumers.”
On Sept. 21, 2016, a federal grand jury in the U.S. District Court of the Eastern District of Michigan returned an indictment against Higashida and another executive, who remains under indictment. According to the indictment, the defendants, along with their co-conspirators, conspired from at least as early as June 2008 until at least September 2012, to delete emails and electronic records and to destroy documents referring to communications with competitors, in contemplation of a federal investigation. During the charged conspiracy, Higashida was employed by an automotive body sealing products supplier in Japan and later in Novi, Michigan, as president of that company’s U.S. joint venture with another company. In addition, according to the indictment, on Sept. 25, 2012, intending to obstruct an official proceeding, Higashida instructed another individual to ensure that no phone numbers or call records remained on his cellular telephone and that no data remained on his computer that would reflect competitor communications.
Today’s guilty plea is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. A total of 65 individuals and 47 companies have been charged in the Antitrust Division’s investigations into the automotive parts industry. This case was brought by the Antitrust Division’s Chicago Office and the FBI’s Louisville Field Office, Covington Resident Agency, with the assistance of the FBI’s International Corruption Unit and the U.S. Attorney’s Offices for the Eastern District of Michigan and the Eastern District of Kentucky.
Anyone with information about anticompetitive conduct in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or contact the FBI’s Louisville Field Office at 502-263-6000.
Atlantic County, NJ, Man Admits Scheme to Defraud Women over Telephone Dating ServicesRead the Press Release
CAMDEN, N.J. – An Atlantic County man who was previously sentenced in 2007 in connection with a scheme to defraud women over telephone dating services and in 2015 for violating the conditions of his federal supervised release admitted today to traveling in order to launder money in connection with a similar scheme, U.S. Attorney Paul J. Fishman announced.
Patrick Giblin, 52, formerly of Ventnor, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of interstate travel and use of a facility in interstate and foreign commerce with the intent to launder money.
According to documents filed in this case and statements made in court:
From January 2013 to Dec. 16, 2014, Giblin allegedly posted advertisements and messages on telephone dating services throughout the United States. Giblin cultivated a telephone rapport with the women he spoke to on these services, falsely claimed that he would be relocating or travelling to the woman’s geographic area, and falsely represented that he wished to pursue a committed, romantic relationship with each woman. He then lied to the women about needing a loan, which he never intended to repay, for relocation or travel expenses. Giblin received money from the women he spoke to on the dating services via interstate wire services such as Western Union and MoneyGram. Giblin also directed women to transfer money through one of these services onto a payroll/debit card that he used. Giblin used some of his victims’ money in order to purchase airtime minutes for cellular telephones, which he in turn used to defraud additional women.
In October 2014, Giblin travelled from Atlantic County, New Jersey, to Albany County, New York. Giblin, who was on federal supervised release from a previous conviction, was not allowed to leave the state. While traveling in New York, Giblin continued to defraud women and used money he received from women to purchase additional airtime minutes and contact more women. Giblin’s victimized more than 10 women in various states, causing losses of $15,000 to $40,000.
Giblin was previously convicted of 10 counts of wire fraud in 2007 in connection with a similar scheme. In 2015, Giblin was imprisoned for violating the terms of his supervised release imposed in connection with the 2007 sentence. Giblin was also sentenced in 2013 in the Eastern District of Pennsylvania for escaping from a halfway house in Philadelphia, where he was living following the completion of the 2007 sentence. Giblin initiated the scheme in this current case at about the time that he escaped from the halfway house and resumed the scheme following the service of his sentence on the escape conviction.
The count to which Giblin pleaded guilty carries a maximum term of five years in prison and a fine of up to five years in prison and a fine of $250,000. He must also pay restitution to victims. As part of the plea agreement in this case, the U.S. Attorney’s Office will recommend that the Court sentence Giblin to the statutory maximum term of five years. Sentencing is scheduled for May 12, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. Fishman also thanked the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos in Newark, for its assistance in this case.
The government is represented by Deputy Attorney-in-Charge Matthew J. Skahill and Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office in Camden.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender (Camden)
Amherst Doctor Sentenced for Obtaining Controlled Substances by Fraud and Health Care FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today Dr. Albert R. Cowie, 38, of Amherst, NY, who was convicted of obtaining controlled substances by fraud and health care fraud, was sentenced to 24 months in prison by U.S. District Judge Lawrence J. Vilardo.
“The purpose in publicizing today’s sentencing is not to try to shame or embarrass anyone, including Dr. Cowie, who unlawfully uses or distributes this poison,” said Acting U.S. Attorney Kennedy. “Rather, the purpose is to remind everyone—no matter who you are, whether you are a doctor or a derelict—that each of us will eventually be held accountable for the choices we make. Some, those that we catch, must answer in the criminal justice system. Sadly, many that we don’t catch, must answer with their lives. So my message today is that this Office will continue—with our law enforcement partners—aggressively to enforce the drug laws. We are not going to go away. Lives are at stake. If you are using these drugs—no matter who you are—then you need to get help, because if you don’t, you will end up either dead or, if you’re lucky, in jail.”
DEA Special Agent-in-Charge James Hunt stated, “This sentencing highlights a doctor’s crime and a drug user’s insidious cycle of addiction. The issuance of prescriptions of controlled substances for non- medical purposes is a federal crime that furthers opioid addiction. DEA and our law enforcement partners will continue to identify those responsible.”
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that between January 2010 and March 22, 2014, the defendant, a practicing radiologist, wrote more than 200 illegal prescriptions for controlled substances such as Oxycodone, Percocet, and Hydrocodone. The prescriptions were distributed to an individual who then went to local pharmacies and had the scripts filled. The individual retained some of the controlled substances for personal use but returned the remainder of the narcotics to Cowie for his own use.
During a meeting between Cowie and a confidential witness, the defendant advised the witness to lie to insurance investigators about his alleged prescription fraud. The witness is quoted as saying to the defendant “okay so just say they were written for me even though they were written for you…is what you’re saying? Cowie replied “right.”
As a result of the prescription fraud, Univera Health Care and HealthNow New York were fraudulently billed $20,482.83.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the New York State Bureau of Narcotic Enforcement, under the direction of NYS Health Commissioner Howard Zucker; and the Amherst Police Department, under the direction of Chief John Askey.
Aliquippa Man Pleads Guilty to Robbing Sewickley Savings Bank with a GunRead the Press Release
PITTSBURGH - A Beaver County resident pleaded guilty in federal court to charges of violating federal robbery and firearms laws, Acting United States Attorney Soo C. Song announced today.
Herbert Lee Pope, 28, pleaded guilty to three counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on February 12, 2016, Herbert Pope walked into the WesBanco Bank located in Ambridge, Pa., and asked a teller if the bank was able to make an overseas wire transfer. The teller instructed Pope that they do not, and Pope exited the bank. Shortly thereafter, the bank was robbed by a lone male in a gray sweat suit, who utilized a small black semi-automatic firearm with a silver barrel. The loss to the bank was $11,128.09. On February 16, 2016, Pope entered the Sewickley Savings Bank in Sewickley, Pa., and asked if the bank was able to do an international wire transfer. The teller informed Pope that the bank did not, and directed Pope to a nearby bank that did do that type of transaction. Pope left the bank, and appropriately 10 minutes later, Pope and another male entered the bank, both utilizing black semi-automatic handguns, vaulted the teller counter, and robbed the bank. The loss to the bank was $3,543.25.
Tyler Bridges, 31, is charged as the other individual involved in the armed bank robberies. Charges against Bridges remain pending.
Judge Bissoon scheduled sentencing for Pope on May 19, 2017, at 10 a.m. The law provides for a total sentence of not less than 7 years and up to life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Pope remain in custody.
Assistant United States Attorney Troy Rivetti is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Sewickley Police Department, the Allegheny County Police Department, and the Ambridge Police Department conducted the investigation that led to the prosecution of Herbert Lee Pope.
Albuquerque Felon Sentenced to Federal Prison for Violating Firearms LawsRead the Press Release
ALBUQUERQUE – Adrian Banks, 28, of Albuquerque, N.M., was sentenced today in federal court to 64 months in prison for unlawfully possessing a firearm. Banks will be on supervised release for three years after completing his prison sentence.
Banks and his codefendants Marcus Sowell, 20, Damon Giles, 23, Michael Borrego, 25, and Marcus Lewis, 27, were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Banks and his codefendants were charged in a 12-count indictment filed on June 30, 2016. The indictment charged the following:
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Sowell with possession of a firearm not registered to him in the National Firearms Registration and Transfer Record (NFRTR) and engaging in the business of dealing firearms without a license on May 19, 2016;
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Giles with being a felon in possession of a firearm on May 19, 2016;
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Giles and Borrego with engaging in the business of dealing firearms without a license on May 31, 2016;
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Giles and Banks with engaging in the business of dealing firearms without a license on June 7, 2016;
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Banks with being a felon in possession of firearms on June 7, 2016;
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Borrego with engaging in the business of dealing firearms without a license on June 7, 2016 and June 10, 2016;
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Giles and Lewis with distribution of cocaine on June 9, 2016;
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Borrego with possession of a firearm not registered to him in the NFRTR on June 10, 2016;
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Giles with engaging in the business of dealing firearms without a license and being a felon in possession of firearms on June 13, 2016.
According to the indictment, the offenses were committed in Bernalillo County, N.M.\
On Nov. 4, 2016, Banks pled guilty to being a felon in possession of a firearm and admitted that on June 7, 2016, he was in possession of three firearms despite his status as a convicted felon. Banks was prohibited from possessing firearms or ammunition because of his felony convictions for kidnapping in the second degree and aggravated assault with a deadly weapon.
To date, 25 of the 104 defendants including Sowell, Giles, Borrego and Lewis have entered guilty pleas and two have been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque office of ATF. Assistant U.S. Attorney James D. Tierney is prosecuting the case.
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"Prince Charming" Behind Bars: Nigerian Romance Scammer Nets 27-Year Prison SentenceRead the Press Release
Olayinka Ilumsa Sunmola, 33, of Lagos, Nigeria, was sentenced this morning to serve 324 months behind bars for an elaborate international romance scam he perpetrated from 2007 to 2014, U.S. Attorney Donald S. Boyce for the Southern District of Illinois announced today. Evidence presented in court showed that Sunmola was the ringleader of a criminal organization operating in South Africa that targeted hundreds of women across the United States, including many in the St. Louis area. The thieves managed to make away with millions of dollars in wire transfers and various electronics through the simple promise of true, enduring love.
The U.S. Postal Inspection Service began investigating Sunmola in 2012, when a woman in the Southern District of Illinois complained that she had been conned by a man masquerading online as "Elias Dyess." The investigation soon revealed that "Dyess" was merely one of the dozens of fictitious online profiles Sunmola and his confederates concocted on dating websites like Match.com to lure unsuspecting women. Portraying himself as an American soldier stationed overseas, or an engineer working on a large government contract in South Africa, Sunmola cultivated romantic relationships with dozens of women across the country. To further the conceit, he used photographs stolen from the hacked online accounts of real American men and researched facts about the American cities he pretended to be from. He also showered the women with poetry, cards, flowers, stuffed animals, and chocolates. Sunmola’s purpose was to lead each of his victims to believe that he was her "Prince Charming," her one true love, and the man with whom she was destined to spend the rest of her life.
Once he had successfully beguiled his target, Sunmola began to manufacture phony emergencies, each of which required increasingly large amounts of money from his victims. He played upon each woman’s romantic feelings and vulnerabilities, manipulating them into wiring
him money or shipping him laptop computers, tablets, and cell phones – equipment he told them he needed to complete his government mission. The women were invariably told to direct their shipments to "Ilumsa Sunmola," who was passed off as their lover’s driver, or a co-worker, or a hotel manager. In fact, it was Sunmola himself who was slowly bleeding them dry. When the money inevitably ran out, or the women refused to send more, Sunmola would abruptly end the relationship.
A federal grand jury sitting in East St. Louis, Illinois, indicted Sunmola in November 2013 on charges of mail fraud, wire fraud, conspiracy, and interstate extortion. Officers with the London Metropolitan Police Service (sometimes referred to as "Scotland Yard") later arrested Sunmola on the Southern Illinois indictment in August 2014, as he was about to board a plane from London to Johannesburg, South Africa. Sunmola eventually pled guilty to all eight counts of the indictment on March 2, 2016, after two full days of trial.
The United States has no way of knowing the precise amount of money Sunmola and his associates stole, but victims who responded to government requests for information reported total losses in excess of $1.7 million – a figure Sunmola has been ordered to pay in restitution. The crime forced at least three women to file for bankruptcy. Several more lost their jobs and their homes and were left in total financial ruin. One victim who testified at the trial lost over $90,000 to Sunmola. "Retirement should be a happy time," she wrote to the court. "Instead, I am stressed and broke and working part time jobs at $10 an hour to supplement my income."
Two victims were present in the courtroom when the sentence was announced. A number of businesses were also defrauded by Sunmola and his associates, who used stolen credit card data from thousands of Americans to make fraudulent purchases online and over the phone. The loss incurred by one computer manufacturer alone was over $800,000.
Even worse than the financial hardships Sunmola caused his victims was the profound emotional and psychological damage he inflicted on them. Many of the women believed they had finally found their true love. A few had even purchased wedding dresses. When the lie was exposed, their worlds collapsed. Some fell into depression. Two victims told the court they had seriously contemplated suicide. Even many years later, a number of Sunmola’s victims remain withdrawn and untrusting, afraid to meet new people or to venture back out on the internet. For at least two women in Illinois, the abuse was also sexual, as Sunmola stole images of their naked bodies, used the images to extort money from them, and then distributed their explicit images on the internet for anyone to see.
At sentencing, the United States argued that the court should depart upward from the range recommended by federal sentencing guidelines, because the crimes Sunmola committed were unusually cruel and caused his victims extreme psychological harm. In support of that argument, the government presented testimony from Monica Whitty, Ph.D., an Australian psychologist who has extensively researched online romance scams from her post at the United Kingdom’s University of Leicester. Whitty testified that, in her expert opinion, the victims had indeed suffered a substantial and severe psychological impact. "They’ve in many ways experienced potentially permanent, life-altering changes in their lives. The long-term effects remain, years and years later."
United States District Judge David R. Herndon agreed. "‘Conspiracy,’ ‘mail and wire fraud,’ and ‘interstate extortion’ hardly sound like the kinds of crimes that leave broken lives, wrecked women, fractured families, devastation, desires to die, humiliation and shame so extreme," Judge Herndon said. "But then, his charm turned to bullying, name calling, extortion, unthinkable demands and threats. Thoughts of paradise turned into thoughts of hell and, for some, thoughts of suicide." Judge Herndon called it "the most devastating crime one could ever imagine without laying hands or even eyes on another human being."
When Sunmola has completed his 27-year prison term, he will be removed to his native home of Nigeria. For that reason, no term of supervised release was ordered. Imposition of a fine was also waived, in favor of the restitution award. Over $200,000 in proceeds from the sale of Sunmola’s four properties in South Africa has already been turned over to the District Court and will be proportionally disbursed to the individual identified victims. In the meantime, Judge Herndon expressed hope that the significant prison sentence would act as a deterrent for other scam artists, particularly Sunmola’s "underlings": "When they hear of what sentence the boss received, they will hopefully be incentivized to stop their illegal activity immediately."
The case was investigated by the St. Louis Field Office of the Chicago Division of the U.S. Postal Inspection Service. "Criminals who look for or who expect anonymity of the mail or the borders of a country to protect them when conducting criminal activity are placed on notice today," said Inspector in Charge E.C. Woodson, Chicago Division U.S. Postal Inspection Service. "The U.S. Postal Inspection Service, in partnering with the U.S. Attorney’s Office, will go beyond borders to ensure justice is served. Nothing is as painful as a broken heart, and this defendant caused extreme hardship to many of his victims."
A number of other law enforcement agencies assisted in the investigation and prosecution of this case, including the U.S. Department of Homeland Security, Homeland Security
Investigations, the U.S. Secret Service, the London Metropolitan Police Service, and the South African Police Service, which conducted its own extensive investigation into Sunmola’s activities in South Africa and initiated the foreclosure proceedings on his properties.
The case was referred to the U.S. Attorney’s Office by the Illinois Attorney General’s Office as part of an ongoing partnership between the two offices to identify, investigate and prosecute international scammers who prey on Illinois residents. This prosecution is also part of a larger initiative with the Chicago Office of the Federal Trade Commission to target romance scammers. The prosecution was handled by Assistant United States Attorneys Nathan D. Stump, Bruce E. Reppert, and Emily J. Wasserman.
1 February 2017
Windsor Mill Woman Pleads Guilty to Participating in a Narcotics Conspiracy While on Pretrial Release for Federal Bank Fraud and Identity Theft ChargesRead the Press Release
Baltimore, Maryland – Jasmine Young, age 28, of Windsor Mill, Maryland, pleaded guilty in U.S. District Court on January 31, 2017, to a narcotics conspiracy, which was committed while she was on pretrial release for federal bank fraud and identity theft charges.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea agreement, from November 2015 through January 2016, Young conspired with others to distribute marijuana. Young was identified after a homicide in Baltimore that was related to the drug trafficking conspiracy. According to the plea agreement a woman was killed on January 12, 2016, the same day an eight to 11 pound marijuana shipment was delivered to her residence. Also on January 12, 2016, the DEA in Maryland received information from a DEA Narcotics Task Force operating in San Diego, California, that a suspicious package was in route to an address in Windsor Mill, Maryland, for delivery on January 15, 2016. Law enforcement interdicted the package, which was addressed to Nancy Young, at Jasmine Young’s address. A narcotics dog alerted to the package for narcotics. After obtaining a search warrant, the package was found to contain 11 pounds of marijuana. DEA conducted a controlled delivery and the package was accepted by Jasmine Young. A short time later, DEA executed a search warrant at the residence and Young and a man were taken into custody.
From the apartment, law enforcement recovered: a .22 caliber handgun located in a black shoebox on top of the dryer, along with ammunition in multiple calibers and a 9mm magazine with live rounds; a loaded revolver located inside a black sectional couch (near where the man had his hands when police entered the apartment); a package of green plastic wrap containing marijuana (what was left in the parcel that was delivered to the residence by DEA); six cellular phones located in several locations throughout the home; and a large digital scale with residue located on the kitchen counter. The gun recovered from the couch was later determined to have been stolen on January 28, 2015.
Young initially denied having any involvement in the drug conspiracy, but investigators recovered text messages from some of the recovered cellular phones that showed that Young was part of the conspiracy. Young and the woman who was murdered both allowed marijuana to be delivered to their residences.
As a result of Young’s arrest on narcotics charges, her pre-trial release in the bank fraud case was revoked and she was ordered to be detained.
On April 15, 2016, Young pleaded guilty to bank fraud and aggravated identity theft. Young admitted that from July 2014 through October 2014, she used her employment at a bank to obtain the personal information of customers. Specifically, Young admitted that she used her employee access to target customer accounts with high dollar balances. Once she accessed these accounts, she took “screen shots” of the account information, including the account holder’s personal information and copies of checks that had previously been written and processed. She then provided that information to co-schemers who used the information to fraudulently obtain and write checks drawn on the customers’ accounts. The bank identified 22 victims of the scheme, which resulted in a financial loss to the bank of over $300,000.
Young faces a sentence of five years in prison for the narcotics conspiracy and up to an additional 10 years’ imprisonment based on committing the offense while on pretrial release; a maximum of 30 years in prison for bank fraud; and two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge George L. Russell III has scheduled sentencing for March 30, 2017 at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Maryland State Police, DEA, and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Lauren E. Perry and Sandra Wilkinson, who are prosecuting the cases.
Williamsville Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Troy Malecki, 48, of Williamsville, NY, pleaded guilty to possession of child pornography, depicting minors less than 12 years of age, before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that Malecki was part of an online community dedicated to the exchange and discussion of child pornography. On September 18, 2015, Special Agents from the Federal Bureau of Investigation, Violent Crimes Against Children Task Force, executed a search warrant at the defendant’s residence and seized his cellular phone. Forensic examination of Malecki’s phone revealed that he was in possession of more than 850 images of child pornography, some of which depicted prepubescent children less than 12 years of age.
The plea is the result of an investigation by the Federal Bureau of Investigation, Violent Crimes Against Children Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for May 17, 2017, at 2:00 p.m. before Judge Skretny.
Wethersfield Resident Admits Operating Investment SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTHONY G. SCIARRA, 53, of Wethersfield, formerly of Marlborough, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of wire fraud stemming from an investment scheme that defrauded individuals and couples of more than $874,000.
According to court documents and statements made in court, from 2001 until May 2012, SCIARRA operated AGS Financial, through which he offered insurance, securities and other financial products. In approximately May 2012, the Connecticut Department of Insurance revoked SCIARRA’s insurance license.
Between approximately 2007 and July 2015, SCIARRA held himself out as a bona fide insurance agent and financial advisor when, in fact, he was not. Through AGS Financial, and later through an entity he described as “Westport Enterprises,” SCIARRA solicited investments from various victim-investors with promises of high annual investment returns ranging from 4 percent to 12 percent or more. SCIARRA falsely represented to investors that he would invest their funds in a bond fund and/or a cigarette distribution business. Instead of investing any of the invested money as promised, SCIARRA diverted funds for his personal use, including to pay for restaurant meals and department store purchases, and to pay loans and other personal bills. The investigation revealed that SCIARRA also made large cash withdrawals from ATMs and at Foxwoods Casino. SCIARRA also used some of the funds to make “interest” payments to other victim-investors.
During the scheme, SCIARRA made false statements to certain victim-investors, both in person and by e-mail, in an attempt to explain the various delays in the purported interest payments. In addition to telling victim-investors that their funds had been invested as represented, SCIARRA sought to prevent the discovery of the scheme by issuing partial payments to the victim-investors as a partial return of the principal and monies that were then due. Eventually, these payments stopped and the scheme was discovered.
Through this scheme, SCIARRA defrauded at least 12 victim-investors of approximately $874,000.
Judge Shea scheduled sentencing for April 26, 2017, at which time SCIARRA faces a maximum term of imprisonment of 20 years. He is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation, with the Assistance of the Connecticut Department of Banking, Securities Division. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Washington D.C.-Based Internal Revenue Service Attorney Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Jack Vitayanon with conspiring with others to distribute 500 grams or more of methamphetamine. Vitayanon, an attorney with the Internal Revenue Service, Office of Professional Responsibility in Washington, D.C, was arrested earlier today in Washington D.C.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement(ICE), Homeland Security Investigations (HSI), New York.
As detailed in the complaint, Vitayanon conspired with others in Arizona and on Long Island to distribute methamphetamine for several years and recently negotiated and consummated the sales of distribution quantities of methamphetamine to undercover HSI special agents on Long Island. The negotiations occurred via recorded internet-based video chats and text messages, and the defendant shipped the methamphetamine from his apartment in Washington D.C. to Long Island via Federal Express.
The recipient of the package, acting at the direction of law enforcement, recorded a video chat with Vitayanon over the internet on Dec. 15, 2016 and during the recorded conversation Vitayanon was observed in his residence smoking what appeared to be methamphetamine from a glass pipe, according to the complaint.
A search of the defendant’s Washington D.C. apartment executed pursuant to a court-authorized search warrant led to the seizure of additional quantities of suspected methamphetamine, drug paraphernalia, packaging materials and drug ledgers.
“As alleged, the defendant – a federal attorney working for the IRS’s Office of Professional Responsibility – broke bad and supplemented his income by selling distribution quantities of methamphetamine,” stated United States Attorney Capers. “The defendant will now be held to account for his alleged criminal conduct.” Mr. Capers expressed his grateful appreciation to the United States Treasury Department Inspector General, HSI’s High Intensity Drug Trafficking Area group in Washington D.C. and the United States Attorney’s Office for the District of Columbia.
HSI Special Agent-in-Charge Melendez stated, “Selling methamphetamine is a serious crime which is made more egregious when it is committed by a U.S. government attorney assigned to the Office of Professional Responsibility of the IRS.” “People that sell this highly addictive and destructive drug must be brought to justice before more lives are lost to this epidemic.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Long Island Criminal Section. Assistant United States Attorney Charles N. Rose is in charge of the prosecution.
The Defendant:
JACK VITAYANON
Age: 41
Washington, DC
E.D.N.Y. Docket No. 17-MJ-80
Vinton Man Sentenced on Federal Fraud ChargeRead the Press Release
Lynchburg, VIRGINIA – Acting United States Attorney Rick A. Mountcastle announced the sentencing of a Vinton man who previously pled guilty to stealing funds from the Social Security Administration.
Robert Wozniak, 48, of Vinton, Va., previously pled guilty to one count of theft of government property and one count social security fraud. Today in District Court, Wozniak was sentenced to time served and two years of supervised released. In addition, Wozniak was ordered to pay $16,500 in restitution and a $200 special assessment.
According to evidence presented in court by Assistant United States Attorney Charlene R. Day, Wozniak admitted previously that from July 2015 through April 2016 he stole Social Security Administration funds, namely retirement benefit payments, intended for Wozniak’s deceased grandmother, for which he was not entitled. The indictment specifically claims that Wozniak intentionally concealed his grandmother’s death in order to continue to receive and spend the retirement benefit payments made by the Social Security Admiration to his grandmother.
The defendant admitted that he concealed the body of his dead grandmother, Betty Wozniak in a freezer and later a barrel for months after she died in order to continue receiving her Social Security payments. Investigators discovered the body after Wozniak’s landlord became suspicious about the barrel and a hole she noticed in the property Robert Wozniak was renting from her.
The investigation of the case was conducted by the Department of Health and Human Services, the Social Security Administration, the Bedford County Sheriff’s Office and the Department of Veteran Affairs, Office of the Inspector General. Assistant United States Attorney Charlene R. Day will prosecute the case for the United States.
United States Files Enforcement Action Against Florida Company and Senior Managers to Stop the Adulteration and Misbranding of Medicated Animal FeedsRead the Press Release
A civil complaint was filed in the U.S. District Court for the Southern District of Florida against Syfrett Feed Company Inc. of Okeechobee, Florida; its owner and President Charles B. Syfrett I; its Vice President Melissa S. Montes De Oca; and its Operations Manager Charles B. Syfrett II to stop the adulteration and misbranding of medicated animal feed in violation of the federal Food, Drug, and Cosmetic Act (FDCA), the Department of Justice announced today.
Syfrett Feed Company Inc. (Syfrett Feed) manufactures and distributes medicated and non-medicated feed, primarily for food-producing animals and fowl. The complaint alleges that the defendants adulterated and misbranded animal feeds while such feeds were held for sale. The Department filed the complaint at the request of the U.S. Food and Drug Administration (FDA).
“The Food, Drug, and Cosmetic Act is designed to make sure that medicated animal feed has sufficient labeling to ensure its safe use,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “The Department of Justice will work closely with the FDA to ensure that medicated animal feeds are manufactured in compliance with current good manufacturing practices.”
According to the complaint, the company’s medicated animal feeds failed to list the name of the active drug ingredients on the label of the medicated animal feeds and failed to include adequate instructions for use on the labels of the medicated animal feeds. For example, as noted in the complaint, the defendants did not include adequate instructions when they omitted dose administration instructions, feeding limitations and/or cautionary statements for use of the drugs in combination with other drugs on the label of the medicated feeds.
The complaint further alleges that the feed was not manufactured in conformity with current good manufacturing practices for medicated feeds. Specifically, according to the complaint, the defendants: failed to establish and maintain adequate procedures for the identification, storage, and inventory control of drugs intended for use in their medicated feeds; failed to establish and use adequate procedures for all equipment used in the production and distribution of medicated feeds to avoid unsafe contamination of medicated and non-medicated feeds; and failed to adopt labeling practices that assure that the correct labels are used for the medicated feeds they manufacture.
As noted in the complaint, the company conducted a recall of its non-medicated horse pellet food in April 2014 when customers complained that their horses were falling ill. According to the complaint, 15 horses had to be euthanized after consuming the company’s horse pellet food and in September 2014, two more horses had to be euthanized after consuming the company’s horse pellet food. Following these events, the company discontinued manufacturing medicated and non-medicated feeds for horses, according to the complaint.
According to the complaint, FDA conducted inspections of Syfrett Feed’s facility located at 3079 NW 8th Street, Okeechobee, Florida, in January 2014, June 2015 and June 2016. In 2014, following the inspection, FDA sent a Warning Letter to Mr. Syfrett I, notifying him of the significant current good manufacturing practices deviations and misbranding violations observed during the January 2014 inspection. In September 2015, FDA wrote to Mr. Syfrett I, stating that Syfrett Feed had not taken adequate measures to correct the current good manufacturing practice deviations and misbranding violations noted in FDA’s 2014 Warning Letter and 2015 inspection. According to the complaint, Syfrett Feed did not respond to FDA’s September 2015 letter.
“Animal owners and caretakers must be able to have confidence that the feed they purchase is safe and properly labeled,” said Steven M. Solomon, D.V.M., M.P.H., director of the FDA’s Center for Veterinary Medicine. “It is the responsibility of feed manufacturers to have proper procedures in place and follow good manufacturing practices to ensure the safety of their products and the animals that consume them.”
The government is represented by Trial Attorney Jocelyn Hines of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Christopher Cheek of the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of Associate Chief Counsel for Enforcement Tara Boland of the F DA, Office of General Counsel, Department of Health and Human Services.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
U.S. Attorney Stanton Announces Upcoming ResignationRead the Press Release
Memphis, TN – Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, has announced his resignation, effective February 28, 2017. U.S. Attorney Stanton has served in office since August 2010.
"Nearly six and a half years ago I was provided the professional honor of a lifetime," U.S. Attorney Stanton said. "To be able to serve the district where I was born, raised and educated, and for which I have tremendous love and respect, was a remarkable experience. I am tremendously grateful to President Obama, Senators Lamar Alexander and Bob Corker and Congressman Steve Cohen for placing their trust in me. I am confident the extraordinary professionals of the U.S. Attorney’s Office will remain tirelessly devoted to the unwavering cause of justice on behalf of the citizens of West Tennessee and our great nation. I am proud of the work we have accomplished in and out of the courtroom, including building meaningful bonds of trust with the community we serve. As I step away from this esteemed post, I remain committed to being actively engaged in serving our great community."
When he assumed the role as U.S. Attorney in 2010, Mr. Stanton committed himself to protecting the nearly 1.5 million citizens that comprise West Tennessee through the vigorous enforcement of federal laws.
One of Mr. Stanton’s highlights during his tenure as U.S. Attorney was the creation of a dedicated Civil Rights Unit in 2011. The Unit, which has earned national acclaim, is responsible for prosecuting individuals who commit federal civil rights crimes, such as human trafficking, law enforcement corruption, excessive force, official misconduct, hate crimes, predatory lending, unfair housing, and Americans with Disabilities Act (ADA) violations.
Mr. Stanton has served on the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) Board. The program was recently awarded the U.S. Attorney’s Office funding to implement a federal initiative that exclusively targets crimes involving heroin and prescription opioids. He is also a founding member of the Multi-Agency Gang Unit, which is comprised of federal, state and local law enforcement officials, with a common goal of combating criminal gang activity.
With a focus on prosecuting cases involving violent crime, human trafficking, child exploitation, hate crimes, health care fraud, identity theft, racketeering, drug trafficking, and unlawful firearm possession, prosecutorial highlights during Mr. Stanton’s tenure include:
• Chastain Montgomery, Sr., was sentenced to consecutive life sentences in federal prison for the murders of United States Postal Service employees Paula Robinson and Judy Spray during a robbery of the establishment. Mr. Stanton served as co-counsel on the trial team.
• Ricky Lee Stewart, III was sentenced to life in federal prison for fatally shooting Henderson Police Department Captain Dennis Cagle during an attempted robbery of a Henderson, Tennessee Save-A-Lot. Stewart’s wife, Cheryl Freeman Stewart, was sentenced to 20 years in federal prison for her role in the attempted robbery.
• Orlando Garcia was sentenced to life in federal prison for his role in the murder of Tennessee State Trooper Calvin Wayne Jenks, who was fatally shot while conducting a traffic stop in Tipton County.
• Dale Mardis was sentenced to life in federal prison for the racially-motivated killing of a Shelby County Code Enforcement Officer. Mr. Stanton served as co-counsel on the trial team.
• Craig Petties, a leader of one of the largest drug trafficking organizations in the Mid-South, was sentenced to nine life sentences in federal prison. More than 40 additional people were also prosecuted for their roles within this violent and lucrative criminal enterprise.
• Clarence Mumford, Sr., the ringleader of a two-decade-long teacher certification testing scam, was sentenced to 60 months in federal prison. Thirteen other participants in the scheme were also prosecuted, and an additional 40 reached diversion agreements that resulted in the loss of their teaching licenses.
• Justin Shawn Baker was sentenced to federal prison for violating the civil rights of students and faculty of the Margolin Hebrew Academy. Baker defaced a Torah and religious prayer books, which the students and faculty used for a worship service conducted at the Doubletree Hotel in Jackson.
• Terrence Yarbrough, aka "T-Rex," was sentenced to more than 40 years in federal prison for sex trafficking at least 10 female victims, some underage teens. To coerce the victims into prostituting for him, he beat them with belts, wooden coat hangers, crowbars, padlocks attached to belts, and dog chains.
• Amos Patton, a former soldier, was sentenced to 50 years in federal prison for assault with intent to murder four soldiers at the Millington Army National Guard Recruiting Center.
• Terrence Milam was sentenced to 170 years in federal prison for producing child pornography and engaging in sexually explicit conduct with two prepubescent female minors between October 2013 and late January 2015.
• Christopher T. Crawford and Jordan West were sentenced to federal imprisonment for their roles in a lucrative shipping theft scheme that defrauded FedEx and wireless carriers of more than $1.8 million.
• Remark Chism was sentenced to federal prison for masterminding a federal benefit fraud scheme that cost the government approximately $2.8 million. His brother, Ray Chism III, was sentenced in a separate case for executing a federal benefit fraud scheme that defrauded the government of $400,000.
Between 2010 and 2016, the U.S. Attorney’s Office collected more than $50 million in civil and criminal actions.
During his tenure, Mr. Stanton also made it a priority to conduct outreach and strengthen relationships between law enforcement partners, citizens, and community groups.
For example, Mr. Stanton engaged the district’s clergy, civic, nonprofit and business communities through community forums, roundtable discussions and a myriad of speaking engagements; encouraged and equipped the district’s youth by visiting schools, community centers, and nonprofit organizations that cater to youth; and implemented programs that provide employment opportunities to non-violent ex-offenders determined to become productive members of society.
Mr. Stanton spearheaded the U.S. Attorney’s Office’s involvement in the U.S. District Court’s reentry and drug court program; appointed a Reentry and Prevention Coordinator; established an Employer Recruitment Program to help increase the number of companies who hire non-violent ex-offenders; and conducted quarterly visits to both the Federal Correctional Institution (FCI) in Memphis and Satellite Prison Camp (SPC) in Millington to talk with inmates about transitional resources, supervised release, and the necessity to watch the company they keep.
In addition, Mr. Stanton chaired the Attorney General’s Advisory Committee’s Racial Disparities Working Group. Under his leadership, this group of U.S. Attorneys from across the country addressed implicit and unconscious bias, potential sentencing disparities, and requested enhanced training programs for law enforcement officials.
Mr. Stanton is responsible for fully staffing both the Memphis and Jackson divisions of the U.S. Attorney’s Office by hiring two-thirds of the Office’s current Assistant U.S. Attorneys (AUSAs), along with nearly half of the Office’s support staff. He also appointed the district’s first-ever Appellate Chiefs and created a dedicated Appellate Unit to promote and defend the government’s interests in the Courts of Appeals. He was able to accomplish these milestones while navigating his staff through several financial challenges, including a hiring freeze, government shutdown and budget sequestration.
Mr. Stanton, a native Memphian, is a graduate of Central High School, the University of Memphis and the University of Memphis Law School. Prior to serving as U.S. Attorney, Mr. Stanton served as Senior Counsel with Federal Express Corporation. He also served as an Assistant City Attorney for the City of Memphis and in private practice with two Memphis law firms.
Two San Diego Ship Owners Plead Guilty After Intentional Sinking for Insurance MoneyRead the Press Release
Special Assistant U.S. Attorney Ari D. Fitzwater (619) 546-8756 and Assistant U. S. Attorney Patrick J. Bumatay (619) 546-8450
NEWS RELEASE SUMMARY – February 1, 2017
SAN DIEGO – Christopher Switzer and Mark Gillette pleaded guilty in federal court today to conspiring to destroy their own vessel, the “Commander,” a 57-ft boat used for charter sport-fishing trips, in order to fraudulently collect an insurance payout.
According to their plea agreement, on October 11, 2016, Switzer and Gillette headed out to sea on the Commander from its homeport in Mission Bay and headed toward Long Beach. The two had planned to intentionally sink the Commander and submit a claim to their insurance company.
Switzer and Gillette admitted how they attempted to sink the Commander while off the coast of California by destroying plastic PVC piping in the ship’s engine room, which caused sea water to flood into the vessel. They also pumped sea water onto the vessel and punctured its bulkhead to let sea water spread faster throughout the boat.
After sea water had flooded the Commander and as it was starting to go under, Switzer and Gillette called the United States Coast Guard for help which promptly launched a helicopter to find the two. A Dana Point Harbor Patrol rescue fireboat later found the two boatmen atop the partially submerged ship. As part of their plea agreement, Switzer and Gillette acknowledged that their actions subjected themselves and the emergency responders to the risk of death or serious injury.
Upon their rescue, Switzer and Gillette gave a series of false statements to officials to cover their plot to sink the Commander for insurance money. They indicated the first sign of a problem on the Commander was a power failure and they could not figure out why the vessel was flooding.
Switzer and Gillette’s actions failed to completely sink the Commander and it was found adrift near Dana Point, California the next day. A commercial salvage company was able to successfully tow the Commander back to San Diego Bay, California, where investigators uncovered the scheme to intentionally sink the ship.
Switzer and Gillette pleaded guilty before U.S. Magistrate Judge Jill L. Burkhardt. They face a maximum penalty of 10 years in prison and a maximum $250,000 fine. As part of their plea, they are required to reimburse the U.S. Coast Guard over $15,000 for the price of launching the rescue helicopter and other costs.
Sentencing is scheduled for March 6, 2017 at 9 a.m. before U.S. District Judge Michael M. Anello.
DEFENDANTS Case Number 17cr0251-MMA
Christopher Switzer Age: 39
Mark Gillette Age: 37
SUMMARY OF CHARGES
Conspiracy to Destroy Vessels – Title 18, U.S.C., Section 2271
AGENCY
U.S. Coast Guard Investigative Service
Two Florida Men Sentenced to Prison for Identity Theft and Credit Card FraudRead the Press Release
Two men who used stolen credit card information to make fraudulent purchases in Iowa were sentenced to federal prison this week.
Maiko Aragon, age 24, from Miami, Florida, received more than three years in federal prison after pleading guilty to aggravated identity theft and conspiracy to use counterfeit credit cards. David Viamontes-Pando, age 23, also from Miami, Florida, received a one-year prison term after pleading guilty to the same offenses.
Evidence at the sentencing hearings showed that Aragon, Viamontes-Pando, and a third man, Henry Herrera, traveled to Iowa on multiple occasions in January 2016. The evidence showed that the men used stolen credit card information to make fraudulent purchases at stores in and around Cedar Rapids, Iowa. Testimony at the sentencing hearing also showed that Aragon installed a skimming device on a gas pump in order to steal credit card information.
Both Aragon and Viamontes-Pando were sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Aragon was sentenced to 45 months’ imprisonment and ordered to make $19,422.13 in restitution to victims. He must also serve a two-year term of supervised release after the prison term. Viamontes-Pando was sentenced to 12 months’ imprisonment and ordered to make $3,654.10 in restitution to victims. He must also serve a one-year term of supervised release after the prison term. Henry Herrera, who has pleaded guilty to the same offenses as Aragon and Viamontes-Pando, is set to be sentenced on February 22, 2017. There is no parole in the federal system.
In sentencing Aragon and Viamontes-Pando, Judge Strand commented that the offenses undermined public faith in financial institutions and were driven by greed. Judge Strand also increased Aragon’s sentence due to Aragon’s leadership role in the operation.
The case was prosecuted by Assistant United States Attorney Ravi T. Narayan and investigated by Homeland Security Investigations and the Marion Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-24.
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