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31 January 2017
San Benito Man Heads to Prison for Posing as Licensed Vocational NurseRead the Press Release
McALLEN, Texas ‐ A San Benito man has been ordered to federal prison following his conviction of aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Juan Manuel Perez, 36, pleaded guilty Nov. 3, 2016.
Today, U.S. District Judge Micaela Alvarez handed Perez a mandatory 24-month sentence imprisonment in connection with his misappropriation of the identity of a Licensed Vocational Nurse (LVN) of the same name. In handing down the sentence, Alvarez noted that Perez’s misappropriation of the LVN’s identity had denied patients the right to receive health care from a licensed professional.
In December 2014, Perez obtained employment with Cleveland Health Care LLC in McAllen, claiming to be an LVN. The license number presented by Perez, however, belonged to another individual of the same name. Perez is not licensed by the Texas Board of Nursing and is not an LVN.
Perez, posing as the LVN, conducted patient home visits and provided medical services from December 2015 through July 2016 while employed with Cleveland Health Care.
Previously released on bond, Perez 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 Department of Health and Human Services‐Office of Inspector General, FBI and the Health and Human Services Commission conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Michael Day are prosecuting the case.
Roanoke Man Sentenced on Cocaine ChargeRead the Press Release
Roanoke, VIRGINIA – Acting United States Attorney Rick A. Mountcastle announced today the sentencing of a Roanoke man on a federal drug charge.
Terrance Donald Jackson, 29, of Roanoke, Va., previously pled guilty to one count of distribution of cocaine. Today in District Court, Jackson was sentenced to 151 months in federal prison.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Roanoke City Police Department and the agencies of the Roanoke HIDTA. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Renton, Washington Man Sentenced to 105 Months in Prison for Conspiracy to Commit Money LaunderingRead the Press Release
Spokane, WA - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Richard Estes, age 77, of Renton, Washington, was sentenced, after having previously pled guilty on December 16, 2015, to Conspiracy to Commit Money Laundering. United States District Judge Salvador Mendoza, Jr. sentenced Estes to a term of imprisonment of 105 months, to be followed by a three-year term of court supervision after he is released from Federal prison. In addition, Estes was ordered to pay $4,360,724.50 in restitution to the taxpayers of the United States.
According to information disclosed during the court proceedings, Estes was a member of a conspiracy involving Gen-X Energy Group, Inc. (Gen-X), a renewable energy company formerly located in Pasco and Moses Lake, Washington. Between March of 2013 and May of 2014, Estes and his co-conspirators laundered the proceeds of schemes to (1) falsely claim the production of marketable renewable energy credits; and (2) file false claims for refunds of excise credits with the IRS. Throughout this period, much of the renewable fuel claimed to be produced at the Gen-X facilities was either not produced or re-processed multiple times. In total, over $39,000,000 of proceeds of the scheme was laundered through accounts owned or controlled by Estes.
Michael C. Ormsby stated, “The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for white collar crimes. I commend the tenacious and thorough efforts of the IRS-Criminal investigations and the Environmental Protection Agency’s Criminal Investigation Division."
"This is a classic case of an individual who allowed his own unfettered greed to guide his duplicitous actions," stated Special Agent in Charge Darrell Waldon of IRS Criminal Investigation. "When that greed turns into fraud to the degree perpetrated by Richard Estes and his co-conspirators, IRS CI stands ready with our law enforcement partners to serve as the guardians of economic equity and social justice."
This investigation was conducted by the Internal Revenue Service-Criminal Investigations and the Criminal Investigation Division of the Environmental Protection Agency. The case was prosecuted by Scott T. Jones, Assistant United States Attorney for the Eastern District of Washington; Karla G. Perrin, EPA Regional Criminal Counsel and Special Assistant United States Attorney for the Eastern District of Washington; and Thomas Franzinger, Trial Attorney, Environmental Crimes Section, United States Department of Justice.
Prince George’s County Drug Dealer Sentenced to 8 Years in Federal Prison - Result of a Joint Investigation Targeting Armed Drug DealersRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced James Ricardo Williams, a/k/a Snipe, age 28, of District Heights, Maryland, today to eight years in prison, followed by four years of supervised release, for conspiracy to distribute crack cocaine and phencyclidine (PCP) and for possession with intent to distribute narcotics.
His brother, Ricky Lee Williams, a/k/a Slick, Pullaman, and Stacy, age 27, of Forestville, Maryland, previously pleaded guilty to the drug conspiracy, and to being a felon in possession of a gun.
Their charges were the result of a joint investigation by ATF, DEA and the Prince George’s County Police Department that targeted armed drug dealers in Prince George’s County.
The sentence and guilty plea were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division (ATF); Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division (DEA); and Chief Hank Stawinski of the Prince George’s County Police Department.
According to their plea agreements, from September 2015 until June 2016, James and Ricky Williams and others conspired to distribute crack cocaine and PCP in Prince George’s County, particularly near the intersection of Walters Lane and Hil Mar Drive in Forestville. James Williams obtained PCP and powder cocaine from his suppliers in bulk quantities. The Williams brothers and their co-conspirators then distributed cocaine (most of which was manufactured into crack) and PCP to their customers. An ATF source also purchased a loaded .40 caliber semi-automatic pistol from Ricky Williams, who has a prior felony conviction and is therefore prohibited from possessing a firearm or ammunition.
A search warrant executed at James Williams’ residence, as well as an apartment and vehicle used by him to facilitate his drug trafficking resulted in the seizure of extensive drug trafficking paraphernalia, $1,400 in cash, and quantities of PCP and crack cocaine. The evidence also included recorded telephone conversations, surveillance, and information provided by other individuals.
Ricky Williams and the government have agreed that if the Court accepts the plea agreement Ricky Williams will be sentenced to 87 months in prison. Judge Titus has scheduled his sentencing for May 11, 2017 at 11:00 a.m.
United States Attorney Rod J. Rosenstein commended ATF, DEA and the Prince George’s County Police Department for their work in the investigation and thanked the Metropolitan Police Department, Maryland National Capital Park Police and U.S. Marshals Service for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Michael T. Packard and Thomas M. Sullivan, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Post Falls Woman Admits to Concealing Assets During BankruptcyRead the Press Release
COEUR D’ALENE – Rebecca C. Buell, 48, of Post Falls, Idaho, waived her right to indictment and pleaded guilty today to concealment of bankruptcy assets, U.S. Attorney Wendy J. Olson announced. An information was filed against Buell on December 16, 2017.
According to the plea agreement, Buell admitted that she concealed $38,960.53 in assets when she filed a chapter 7 bankruptcy in 2013.
The charge of concealment of bankruptcy assets is punishable by up to 5 years in prison, a maximum fine of $250,000, and up to 3 years of supervised release.
Sentencing is set for April 25, 2017, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by Internal Revenue Service, Criminal Investigations (IRS-CI).
Today's announcement is part of efforts underway by the Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
Plummer Man Sentenced to 21 Years in Prison for Aggravated Sexual AbuseRead the Press Release
COEUR D’ALENE – Jeremy J. Bohlman, 37, of Plummer, Idaho, was sentenced today in federal court in Coeur d’Alene to 262 months in prison for aggravated sexual abuse and sexual abuse, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Court Judge Edward J. Lodge also ordered a ten-year term of supervised release following Bohlman’s release from prison.
During the three-day trial in October 2016, the jury heard evidence that Bohlman used force or fear against a female to cause her to engage in sexual intercourse. Bohlman argued that the act was consensual. Bohlman was previously convicted in federal court of sexual abuse of a minor and failure to register as a sex offender. All cases were tried in U.S. District Court because Bohlman is a member of a federally recognized Indian tribe.
“This defendant, through his conduct, well earned a twenty-one year prison sentence,” said Olson. “This office and its tribal and federal law enforcement partners are committed to protecting Native American women from sexual violence and to see that the perpetrators are punished.”
The case was investigated by the Coeur d’Alene Tribal Police and the Federal Bureau of Investigation.
Philadelphia Man Sentenced Year in Prison for Theft of Government FundsRead the Press Release
Kenneth Duffy, 64, of Philadelphia, Pennsylvania, was sentenced to a year and a day in prison today, announced Acting United States Attorney Louis D. Lappen. In 2016, the defendant pled guilty to one count of theft of government funds, for stealing Social Security benefits intended for his deceased mother for nearly 20 years. After defendant Duffy’s mother died in January 1997, he continued to take her retirement benefits until his fraud was discovered in the summer of 2016. During that time, he kept his deceased mother’s name on the bank account where the funds were deposited, and continued to pay bills in his deceased mother’s name. When contacted by the Social Security Administration, which was trying to verify whether or not the decedent was alive and receiving her benefits, the defendant lied, stating that his mother was alive and living with his sister, in an effort to mislead the agency.
In addition to the prison sentence, the Honorable Harvey Bartle III ordered full restitution to the Social Security Administration of $235,995, and three years of supervised release upon completion of the prison sentence.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Phenix City Doctor Pleads Guilty to Participating in a Drug Distribution Conspiracy and Money LaunderingRead the Press Release
Montgomery, Ala. – On Monday, January 30, 2017, Dr. Robert M. Ritchea, 54, of LaGrange, Georgia, pled guilty to one count of conspiring to unlawfully distribute a controlled substance through the operation of a “pill mill” and money laundering, announced United States Attorney George L. Beck, Jr. A “pill mill” is a medical clinic created to dispense controlled substances inappropriately, unlawfully, and for non-medical reasons.
According to court documents, Dr. Ritchea operated a family medical practice in Phenix City, Alabama. At that practice, Dr. Ritchea wrote prescriptions for Schedule II controlled substances, including oxycodone, hydrocodone, methadone, and hydromorphone, knowing that his patients did not actually need the drugs prescribed. Dr. Ritchea laundered the proceeds of his unlawful drug dealing by purchasing Schedule II pain medications—specifically, hydromorphone and hydrocodone—directly from a drug manufacturer. Dr. Ritchea then distributed the pills directly out of his medical practice. This was necessary to keep his “pill mill” operational since many pharmacists in and around Phenix City refused to fill the illegitimate and unlawful prescriptions Dr. Ritchea wrote.
In the coming months, Chief United States District Judge W. Keith Watkins will sentence Dr. Ritchea. At sentencing, Dr. Ritchea faces maximum sentences of 20 years in prison on each count, as well as substantial monetary penalties.
“Prescription drug abuse is a scourge on communities across this district, this state, and this country,” stated United States Attorney Beck. “The unnecessary use of prescription drugs is often the first step towards opiate-dependency, the loss of work, the severing of relationships, and, in all too many cases, death. Rather than curing illness, Dr. Ritchea was at the forefront of promoting this epidemic. I am proud that my office is holding him accountable for the harm he has caused and the trust he has betrayed.”
“Dr. Ritchea abandoned his professional liability and moral compass when he decided to promote substance abuse,” stated Special Agent in Charge Veronica F. Hyman-Pillot of the Internal Revenue Service’s Criminal Investigations Division. “Today’s guilty plea ensures that he will be held fully responsible for his contribution to the ongoing drug epidemic sweeping through communities.”
“The abuse of prescription drugs is a serious problem in our communities’ said Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton. “All too often, this abuse leads to addiction, shattered lives, and even death. For the health and safety of our citizens, the Drug Enforcement Administration and our federal, state, and local law enforcement partners will continue to target those who illegally distribute these dangerous drugs. We hope that this case will serve as a reminder to those in the medical profession who choose to illegally divert pharmaceuticals, that they will be held accountable for the harm they cause.”
This case was investigated by the following agencies: DEA’s Tactical Diversion Squad; the Internal Revenue Service’s Criminal Investigations Division; the FBI; the Opelika Police Department; the Chambers County Drug Task Force; the Auburn Police Department; the Alabama Law Enforcement Agency (ALEA); the Russell County Sheriff’s Office; the Lawrence County Sheriff’s Office; the Alabama Board of Medical Examiners; and the Alabama State Board of Pharmacy.
Assistant United States Attorneys Jonathan S. Ross and R. Rand Neeley are prosecuting the case.
Pakastani Man Indicted for Making False Statements Regarding Assault Rifle AccessoriesRead 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 grand jury has returned an indictment charging Agha Muhammad Khan Durrani, 27, of Pakistan, with violation of the Arms Export Control Act, violation of the International Emergency Economic Powers Act, and with making false statements during an attempt unlawfully to export merchandise consisting of weapons parts. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the indictment and previously filed complaint, on July 19, 2016, the defendant and his father, after unsuccessfully attempting to bring assault rifle accessories into Canada, were escorted by the Canada Border Services Agency (CBSA) to Customs and Border Protection (CBP) officers at the Rainbow Bridge. Durrani told a CBP officer that he and his father were going to Cabela’s Sporting Goods in Cheektowaga, NY to return the accessories and a scope purchased on July 18, 2016.
The items specifically consisted of the following: • Assault rifle rail systems
• Assault rifle grips
• Assault rifle mounting system
• Assault rifle buffer system
• Assault rifle stocks
• Assault rifle hand guards
• Assault rifle back up lights
Such items are included on the United States Munitions List and require a license to export. Durrani did not have such a license.During a secondary inspection, the defendant told a CBP officer he wanted to bring the assault rifle accessories back to Pakistan to be used for hunting and defending his family’s property and land.
Subsequent investigation determined that Durrani’s cellular telephone included photographs of multiple variants of assault rifles and hand guns and rifle components and accessories. There was also a photograph of a Nightforce BEAST 5-25x56mm F1 Riflescope on Amazon.com with the message, “This item does not ship to Canada. Please check other sellers who may ship internationally.”
A check of the defendant’s email showed a series of messages with another individual dated July 14, 2016. This email chain showed that Durrani had a shipment of similar weapons accessories ready to be picked up in Thailand with a value of $10,800. In the email the defendant responded that he was currently in Canada and that he would have to pick his shipment up at a later date and time.
While Durrani initially told CBP officers the weapon parts would only be used for personal use, the defendant later admitted that he sells guns, gun parts, ammo, and accessories in Pakistan through a business that he owns there.
The defendant was arraigned this morning before U.S. Magistrate Judge H. Kenneth Schroder and ordered detained.
The indictment is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in- Charge Kevin Kelly and Customs and Border Protection, under the direction of Director of Field Operations Rose Hilmey.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Over 100 Defendants Charged in Government Impersonation, Fraud, and Theft Schemes Involving Tens of Thousands of Stolen Personal IdentitiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Miami Field Office Juan P. Perez, Director, Miami Dade Police Department (MDPD), Timothy Camus, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Miami Field Office (DOL-OIG), Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG) announce the filing of federal charges against more than 100 defendants in 81 separate cases, dealing with over 30,000 stolen identities and the intended theft of over $60 million dollars from individuals, businesses and government agencies through fraudulent schemes.
In August 2012, the U.S. Attorney’s Office for the Southern District of Florida, with the collaboration of our federal, state and local law enforcement partners, established the South Florida Identity Theft Refund Fraud Strike Force (Strike Force) to combat an increase in stolen identity tax refund scams. The collective efforts of the Strike Force resulted in the successful prosecution of countless stolen identity tax refund cases. However, while the wave of these pernicious offenses subsided, evolving fraud schemes have spread across South Florida. No longer limited to stolen identity tax refund fraud, the Strike Force, now Stolen Identity Fraud (SIF) Strike Force is investigating and prosecuting a variety of cases stemming from stolen personal identifying information (PII). These cases include intrusion into proprietary government databases; theft of customer account information; takeovers by identity thieves of accounts as diverse as U.S. Social Security and unemployment benefits, retail credit card accounts, and bank accounts; and the use of skimmers to steal valuable PII. These cases demonstrate that law enforcement in general and the Strike Force in particular continue to adapt to meet this insidious identity theft threat.
Since the inception of the Strike Force in 2012, the U.S. Attorney’s Office has charged more than 600 defendants, who were responsible for over $400 million in intended losses.
“Law enforcement will not stand by as criminals attempt to disrupt our lives, steal our savings, ravage our credit, and compromise our government benefit programs through calculated and pervasive fraud schemes,” stated U.S. Attorney Wifredo A. Ferrer. “Today’s announcement demonstrates that the collective response by our federal, state, and local law enforcement partners has had a profound impact on protecting the community from identity theft.”
“I urge everyone to take steps to protect their personally identifiable information (PII) from criminals who seek illicit profits through stolen identity fraud,” said George L. Piro, Special Agent in Charge, FBI Miami. “Learn how you can protect your PII at FBI.GOV or FTC.GOV. The FBI and our partners continue to actively target these fraudsters who victimize hard-working taxpayers.”
Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), stated, “Today’s announcement reinforces law enforcement’s continued commitment to combat identity theft in South Florida. As an agency, the IRS has made remarkable progress in its efforts to protect taxpayers, and we are focused on strengthening our systems and processes even more for this 2017 tax season. I urge taxpayers to protect their personal information and remain vigilant when choosing a return preparer. Beware of return preparers who claim they can get you a ‘higher’ refund then another preparer and those that set their fee based on a percentage of your refund. Ultimately, the taxpayer is responsible for what is filed with the IRS, so choose wisely. IRS-CI will continue to investigate significant Stolen Identity Refund Fraud (SIRF) schemes and egregious tax return preparers, and will collaborate with other federal agencies and IRS civil divisions to stop these thieves in their tracks.”
“The DOL-OIG is committed to working with our Identity Theft Strike Force partners to combat identity theft in the Southern District of Florida and safeguard the Nation's Unemployment Insurance program for those who seek relief from the financial impact of being unemployed,” stated Rafiq Ahmad, Special Agent in Charge, Atlanta Region, U.S. Department of Labor, Office of Inspector General.
"The impersonation of IRS employees continues to represent a serious threat to taxpayers and to the integrity of tax administration,” said Timothy P. Camus, Deputy Inspector General for the Treasury Inspector General for Tax Administration (TIGTA). “We are extremely grateful to the U.S. Attorney’s Office in Miami and their counterparts around the country for their excellent teamwork, collaboration, and support of our efforts on such cases. As these cases show, TIGTA agents continue to relentlessly pursue investigations of individuals who engage in this fraudulent activity and aggressively refer them for criminal prosecution.”
“These arrests are a reflection of the success that comes when federal, state and local law enforcement agencies work together to target criminal organizations and individuals in South Florida,” said Mark Selby, Special Agent in Charge of HSI Miami. “At HSI we will continue to aggressively investigate fraudulent financial schemes that put in jeopardy the integrity of our financial system and are often a gateway to further criminal activity.”
Antonio J. Gomez, Postal Inspector in Charge of the Miami Division stated, “The arrests of these individuals should serve as reassurance to our customers that the U.S. Postal Service remains one of the safest and securest ways of conducting both personal and private business and the U.S. Postal Inspection Service will stop at nothing to bring these criminals to account. Postal Inspectors will continue to partner with our federal and local law enforcement partners to aggressively investigate these types of crimes.”
Today’s Strike Force announcement reaffirms the collective joint federal, state and local commitment to the prosecution of perpetrators who steal, sell and use personal identification information to commit identity theft fraud schemes. The cases brought under the Strike Force operation, from October 2016 to the present day, include:
IRS IMPERSONATORS
United States v. Abhijeetsinh Jadeja and Rachel Jean Roragen, Case No. 17-CR-20085-Martinez
On January 27, 2017, Abhijeetsinh Jadeja, 29, of Miami, and, Rachel Jean Roragen, 41, of Miami Beach, were charged in a twelve-count indictment with conspiracy to commit wire fraud, possessing fifteen or more unauthorized access devices and aggravated identity theft.
to allegations contained in the indictment, between January 2014 and March 2016, Jadeja and Roragen’s co-conspirators impersonated officials from the IRS and other agencies during telephone calls in which they falsely represented to individual victims that they owed money to the IRS or fees on loans or grants. To satisfy their alleged debts, victims were fraudulently induced to send payments to bank accounts and debit cards under the control of Jadeja, Roragen and their conspirators.
Mr. Ferrer commends the investigative efforts of the TIGTA, ICE-HSI, IRS-CI, and the Miami Beach Police Department. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
United States v. Andre Oakley Wellington, Case No. 17-CR-60027-Dimitrouleas
On January 27, 2017, Andre Oakley Wellington, 37, of Coral Springs, was charged in a two-count indictment for participating in a conspiracy to commit mail fraud and mail fraud.
According to the allegations contained in the criminal complaint and indictment, beginning in July of 2016 and ending in January 2017, Wellington’s conspirators impersonated IRS employees during telephone calls in which they falsely represented to an individual victim that he/she owed money to the IRS. Wellington’s conspirators fraudulently induced the victim to send payments via private and commercial mail carriers to addresses located throughout the United States, in order to satisfy the alleged IRS debt. In addition, Wellington’s co-conspirators demanded that the victim send a package containing $25,000 to Wellington’s address in Coral Springs. The conspirators provided Wellington with the FedEx tracking number, which the defendant used to track the package’s arrival. The package was delivered to Wellington’s residence, and was then recovered by TIGTA Special Agents. In total, Wellington and his co-conspirators fraudulently obtained over $550,000 from the victim.
Mr. Ferrer commends the investigative efforts of TIGTA and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet.
TAX REFUND FRAUD
United States v. Silvio Galvez, Case No. 16-CR-20016-Middlebrooks
On January 20, 2017, Silvio Galvez, 30, of Miami, was arrested on a criminal complaint and is charged by indictment for his alleged involvement in a $50 million stolen identity refund fraud scheme involving the cashing of fraudulently obtained large-dollar tax refund checks. Galvez was charged with conspiracy to commit theft of government money, conspiracy to commit bank fraud, theft of government money, and aggravated identity theft.
to allegations in the criminal complaint, Galvez was a leader in a conspiracy involving the filing of over $50 million in large tax refund claims — each claim ranging from approximately $130,000 to $170,000 — in 2013 and 2014. These fraudulent refund requests were submitted to the IRS for payment using stolen identity information. The tax refunds contained the same set of repeated addresses, including the defendant’s address. The IRS paid out at least $4.3 million via U.S. Treasury checks mailed to the addresses listed on the returns. Galvez directed individuals to deposit these fraudulently obtained tax refunds and other fraudulently obtained checks at a bank in Miami. Galvez separately directed a bank employee to open up accounts using stolen identity information so that fraudulently obtained tax refund checks could be deposited. Finally, Galvez directed the bank employee to obtain account information for accounts with substantial funds, in order to conduct account takeovers.
Mr. Ferrer commends the investigative efforts of IRS-CI, FBI and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
United States v. Evelina Sophia Reid, Case No. 17-CR-20057-Williams
On January 26, 2017, Evelina Sophia Reid, 35, of Miami Gardens, was charged in a fourteen-count indictment with conspiracy to commit access device fraud, possessing fifteen or more unauthorized access devices, aggravated identity theft, and computer fraud.
According to the indictment and publicly available documents, Reid was an employee of Jackson Health System when she accessed Jackson’s computer databases to steal patient PII, including social security numbers, of over approximately 24,000 individuals during a five-year period. Using the stolen information, Reid’s co-conspirators filed fraudulent tax returns in the names of Jackson Hospital patients.
Mr. Ferrer commends the investigative efforts of SSA-OIG, IRS-CI, USSS, DOL-OIG, MDPD Professional Compliance Bureau and Public Corruption Section, and the Miami-Dade County Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
United States v. Douglas McArthur Bentley, Jr., et al,
Case No. 17-CR-20033-Altonaga
On January 19, 2017, Douglas Mcarthur Bentley, Jr., 41, Yvonne Lynn Bentley, 40, and Willie Ellis Hayden, 25, all of Homestead, were charged in a thirteen-count indictment for participating in a conspiracy to defraud the government with respect to claims, theft of government funds and aggravated identity theft.
According to the allegations contained in the indictment, starting on or about January 29, 2010, and continuing to on or about April 16, 2013, the defendants and their co-conspirators obtained stolen PII from various individuals without their consent and used the PII to file false and fraudulent tax returns with the IRS. The defendants and their co-conspirators also directed the IRS to electronically transfer tax refunds from the false and fraudulent tax returns to personal and corporate bank accounts they controlled at several banks located in Miami-Dade County, Florida. Once the tax refunds were deposited in bank accounts the defendants controlled, the illicitly obtained refunds were used for their personal gain and profit. According to allegations made in court, the intended loss amount for the fraud scheme was approximately $472,393.07 and the actual loss was $414,838.07.
Mr. Ferrer commends the investigative efforts of IRS-CI and the Homestead Police Department. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
United States v. Blain, et al., Case No. 16-CR-14076-Middlebrooks
On December 1, 2016, five people were charged in a three-count indictment for their participation in conspiracy to commit stolen identity tax refund fraud.
Charlton Tierry Blain, 30, Clifford Raoul Blain, 28, Stephane Randolph Blain, 25, all of Pembroke Pines, and Dorsey Sims, Jr., 31, and Luis Roberto Rodriguez, 38, both of Sebring, were charged with conspiracy to defraud the government with respect to claims; conspiracy to commit access device fraud; and unlawful transfer, possession or use of means of identification.
According to the allegations contained in the indictment, between January of 2012 and December of 2013, the defendants conspired to unjustly enriched themselves by using unlawfully obtained personally identifiable information to file false and fraudulent income tax returns. The fraudulently obtained tax refunds were deposited into fraudulent bank accounts controlled by the defendants, and the illicit proceeds were then withdrawn from those accounts. In total, 679 fraudulent tax returns were filed, claiming $986,978.00 in total refunds.
Mr. Ferrer commends the efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Daniel E. Funk and Adam C. McMichael.
United States v. Teri Onick and Philip White,
Case No. 17-CR-20011-Williams
On January 6, 2017, Teri Onick, 44, of Miami, and Phillip White, 45, of Salt Lake City, UT, of Miami, were charged in a thirteen-count indictment for their participation in a conspiracy to defraud the U.S. government.
According to the allegations in the indictment, on various dates between February and October 2012, Onick and White unlawfully obtained and deposited the fraudulently obtained tax refund checks belonging to other persons, without their permission or authority, into Onick and White’s bank accounts for their personal use and benefit. The estimated fraud loss is over $150,000.00.
Mr. Ferrer commends the efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Cary Aronovitz.
United States v. Gregory Clermont, Case No. 17-mj-2128-Torres
On January 30, 2017, Gregory Clermont, 25, of Miami, was charged by criminal complaint with possession of fifteen or more unauthorized access devices, that is, social security numbers issued to other persons.
to the allegations contained in the criminal complaint, on May 7, 2013, Clermont was in possession of official tax documents and handwritten lists of names, dates of birth, and social security numbers belonging to other individuals, as well as other handwritten notes appearing to relate to the filing of tax returns. Clermont was also in possession of a composition book containing what appeared to be the names, dates of birth, and social security numbers of approximately 140 individuals, three H&R Block debit cards in other people’s names, and a laptop that contained user identification numbers associated with the filing and attempted filing of tax returns through TurboTax online. More than fifteen of the social security numbers in the composition book belonged to other individuals.
Mr. Ferrer commends the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney John P. Gonsoulin.
United States v. Johnathan Jameel Ford, Case No. 17-CR-20079-Williams
On January 27, 2017, Johnathan Jameel Ford a/k/a “Johnatan Jameel Ford”, 41, of Broward, was charged in a fourteen-count indictment for the theft of government money and aggravated identity theft.
According to the indictment, between September 2013 and July 2015, Ford received stolen tax refunds or deposited altered U.S. Treasury checks, totaling over $45,000, knowing that the tax refunds or U.S. Treasury checks had been stolen.
Mr. Ferrer commends the efforts of IRS-CI, TIGTA and USSS. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
United States v. Crystal Jesha Griffin, Case No. 17-CR-20076-Williams
On January 27, 2017, Crystal Jesha Griffin, 25, of Miramar, was charged in a nine-count indictment for theft of government money.
According to the allegations contained in the indictment, Griffin did knowingly and willfully receive United States Department of Treasury tax refunds, knowing the tax refunds to have been stolen. Specifically, Griffin is accused of receiving nine different tax refunds, from nine different victims, totaling $8,074.00.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jonathan Stratton.
United States v. Ronald Esperant, Case No. 17-mj-2122-O’Sullivan
On January 27, 2017, Ronald Esperant, 31, of Miami, was charged by criminal complaint with the theft of government money for his participation in a tax scheme that defrauded the U.S. government.
According to the allegations contained in the complaint, in April 2013 multiple tax refunds issued to other persons, without their permission or authority, were deposited into Esperant’s bank account for an actual loss amount of $5,885.00.
Mr. Ferrer commends the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Ricardo Innocent, Case No. 17-mj-2123-O’Sullivan
On January 27, 2017, Ricardo Innocent, 34, of Miami, was charged by criminal complaint with the theft of government money for his participation in a tax scheme that defrauded the U.S. government.
According to the allegations contained in the complaint, Innocent, filed fraudulent tax returns from January 2011 through February 2014 and had those fraudulently obtained tax refunds deposited into his bank account for an actual loss amount of $77,381.18.
Ferrer commends the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Michelin Petit-Maitre, Case No. 17-mj-2124-O’Sullivan
On January 27, 2017, Michelin Petit-Maitre, 36, of Miami, was charged by criminal complaint with the theft of government money for his participation in a tax scheme that defrauded the U.S. government.
According to the allegations contained in the complaint, Petit-Maitre filed fraudulent tax returns from June 2013 through in or around February 2014 in the names of other persons and had those fraudulently obtained tax refunds deposited into his bank for an actual loss amount of $41,840.00.
Ferrer commends the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Martha Somayra Gomez, Case No. 17-CR-20061-King
On January 26, 2017, Martha Somayra Gomez, 28, of Miami, was charged in a nine-count indictment for the theft of government money.
According to the allegations contained in the indictment, between August 20, 2012 and June 5, 2013, nine tax refunds issued to other persons were deposited into Gomez’s bank accounts for an actual loss amount of $24,922.00.
Mr. Ferrer commends the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
United States v. Youri P. Baptiste, Case No. 17-CR-20048-Altonaga
On January 24, 2017, Youri P. Baptiste, 23, of Miami, was charged in a six-count indictment for the theft of government money.
According to the allegations contained in the indictment, between September 5, 2012 and September 24, 2013, six tax refunds issued to other persons were deposited into Baptiste’s bank accounts for an actual loss amount of $22,048.00.
Mr. Ferrer commends the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
United States v. Altagrace Shaina Descollines, Case No. 17-CR-20047-Scola
On January 24, 2017, Altagrace Shaina Descollines, 25, of Hollywood, was charged in a three-count indictment for the theft of government money.
According to the allegations contained in the indictment, between December 5, 2012 and April 24, 2013, three tax refunds issued to other persons were deposited into Descollines’ bank account for an actual loss amount of $13,169.00.
Mr. Ferrer commends the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
United States v. Quincy Thomas Cook, Case No. 17-CR-20059-Williams
On January 26, 2017, Quincy Thomas Cook, 24, of Miramar, was charged in a four-count indictment for the theft of government money.
According to the allegations contained in the indictment, between April 2012 and April 2013, four tax refunds issued to other persons were deposited into Cook’s bank account for an actual loss amount of $5,896.00.
Mr. Ferrer commends the investigative efforts of the FBI, IRS-CI and USPIS. The case is being prosecuted by Assistant U.S. Attorney Jonathan Stratton.
United States v. Willie Lee Parker, III, Case No. 17-CR-20058-Middlebrooks
On January 26, 2017, Willie Lee Parker III, 23, of Opa-Locka, was charged in an eleven-count indictment for the theft of government money.
According to the allegations contained in the indictment, between February 2013 and April 2013, eleven tax refunds issued to other persons were deposited into Parker III’s bank account for an actual loss amount of $6,610.00.
Mr. Ferrer commends the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jonathan Stratton.
United States v. Damon Donnell Rhodes, Case No. 17-CR-20062-Lenard
On January 26, 2017, Damon Donnell Rhodes, 23, of Hialeah, was charged in a seven-count indictment for the theft of government money.
According to the allegations contained in the indictment, between November 2012 and December 2012, seven tax refunds issued to other persons were deposited into Rhodes’ bank account for an actual loss amount of $5,495.00.
Mr. Ferrer commends the investigative efforts of the FBI, USPIS and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jonathan Stratton.
United States v. Rashaundra Javanni Lewis, Case No. 17-CR-20060-Scola
On January 26, 2017, Rashaundra Javanni Lewis, 26, of Miami, was charged in a five-count indictment for the theft of government money.
According to the allegations contained in the indictment, between September 19, 2012 and September 26, 2012, five tax refunds issued to other persons were deposited into Lewis’ bank account for an actual loss amount of $3,953.00.
Mr. Ferrer commends the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
THEFT OF PUBLIC BENEFIT FUNDS
United States v. Phyllistone Termine, Case No. 17-mj-2098-O’Sullivan
On January 26, 2017, Phyllistone Termine, 19, of Miami, was charged by criminal complaint for access device fraud, possession of fifteen or more unauthorized access devices, possession of device making equipment, and aggravated identity theft related to his alleged participation in a fraudulent unemployment compensation scheme.
According to the court record, including allegations contained in the criminal complaint, an IP address connected to Termine’s residence was used to access and file fraudulent unemployment benefit claims for more than 800 individuals on the Florida Department of Employment and Opportunity’s online database between March 23, 2015, and March 7, 2016.
the course of the investigation law enforcement executed a search warrant at Termine’s residence and allegedly discovered the defendant in his bedroom, writing on a small notepad. The first line on the notepad read “Summer 2016th” and stated “Buy 3 Phones, 1 clean 2 dirty’s” and “Buy online – Merrick BNK & CCVs.” CCVs are numeric fraud-prevention codes on credit cards that are used to help verify possession of your credit card. They can also be purchased from internet sources, in order for people to obtain stolen credit card data. On the bed next to Termine were three cellular phones and a laptop computer. Hidden between the defendant’s mattress and box spring was a black case containing several debit and credit cards belonging to individuals who did not reside at Termine’s residence. Inside the black case were several white blank plastic cards with magnetic stripes that are used to make debit and credit cards. On the floor next to Termine’s bed was hardware used to encode the magnetic stripe on credit/debit cards. Several victims whose credit or debit cards were found during the search also had their identities used to file for unemployment benefits using the IP Address at Termine’s home. These victims had not filed unemployment claims within the last 5 years, did not authorize anyone else to, and did not know Termine.
Mr. Ferrer commends the investigative efforts of DOL-OIG and SSA-OIG. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
United States v. Kicksonley Azema and Abdul Pierrelus,
Case No. 17-CR-20081-Moore
On January 27, 2017, Kicksonley Azema, 26, and Abdul Pierrelus, 29, both of North Miami, were charged in a five-count indictment with conspiracy to commit access device fraud, using unauthorized access devices to fraudulently obtain something valued at $1,000 or more and aggravated identity theft.
According to the allegations contained in the indictment, beginning on or about January 26, 2015, and continuing through the date of the indictment, Azema and Pierrelus unlawfully used social security numbers of Michigan residents to fraudulently file unemployment benefit claims with the state of Michigan, and directed those fraudulently obtained funds to debit card accounts fraudulently established using the social security numbers belonging to other persons.
Mr. Ferrer commends the investigative efforts of DOL-OIG, ICE-HSI and the State of Michigan Unemployment Insurance Agency. This case is being prosecuted by Assistant U.S. Attorney Brian J. Shack.
United States v. James Kelly Morency, Frantzy Morency, and Jakeem Amal Stevens, Case No. 17-CR-20075-Huck
On January 27, 2017, James Kelly Morency, 21, of Hallandale Beach, Frantzy Morency, 26, of Lehigh Acres, and Jakeem Amal Stevens, 28, of Hollywood, were charged in a thirteen-count indictment with conspiracy to commit access device fraud, aggravated identity theft, possession of 15 or more unauthorized access devices, access device fraud, and computer fraud.
According to the indictment, between May 2011 and February 2015, the defendants possessed, transferred and used the social security numbers of other persons to obtain Social Security Administration (SSA) benefits by creating online accounts with the SSA with the stolen social security numbers belonging to other persons and having the SSA benefits redirected to accounts that the defendants controlled.
Mr. Ferrer commends the investigative efforts of the FBI, SSA-OIG, and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
United States v. Sammie Nathaniel Williams, Jr., a/k/a “Old School,” Case No. 16-CR-20921-Scola
On December 9, 2016, Sammie Nathaniel Williams, Jr., a/k/a “Old School,” 58, of Miami, was charged in a six-count indictment for mail theft by a postal employee and theft of government money. On January 19, 2017, Williams pleaded guilty to theft of government money.
According to the court record, on November 29, 2016, Williams, a United States Postal Service employee, stole three U.S. Treasury checks from the mail.
Mr. Ferrer commends the investigative efforts of USPIS, TIGTA and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Jonathan Stratton.
BANK ACCOUNT TAKEOVERS
United States v. Jonathan Phanor, Case No. 16-CR-60349-Dimitrouleas
On December 13, 2016, Jonathan Phanor, 33, of Margate, was charged in a four-count indictment for his participation in a conspiracy to commit bank fraud and identity theft scheme.
According to court documents, from May 18, 2013 through August 13, 2013, Phanor accessed Wells Fargo customers’ bank accounts to obtain their name, date of birth, social security number and bank account numbers and provided the information to his co-conspirator. A co-conspirator would then open joint bank accounts using Wells Fargo customer’s name, date of birth, social security number and bank account numbers and move Wells Fargo customers’ money to the joint account. Once the money was in the joint account, the co-conspirator would then transfer the money belonging to the Wells Fargo customers’ from the joint account to bank accounts controlled by the co-conspirators. The defendant and his co-conspirators used the customers’ identities without their permission or authority.
Mr. Ferrer commends the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
United States v. Mike Edwing Brizard, Case No. 16-CR-20931-Altonaga
On December 13, 2016, Mike Edwing Brizard, 28, of Miramar, was charged in a seven-count indictment for his participation in a conspiracy to commit bank fraud and identity theft scheme. On January 20, 2017, Brizard pleaded guilty to conspiracy to commit bank fraud and bank fraud. Brizard is scheduled to be sentenced by Judge Altonaga on April 3, 2017.
According to the court record, from August 20, 2012 through February 26, 2013, Brizard accessed Wells Fargo customers’ bank accounts to obtain their name, date of birth, social security number and bank account numbers and provided the information to his co-conspirator. A co-conspirator would then open joint bank accounts using Wells Fargo customers’ name, date of birth, social security number and bank account numbers and move Wells Fargo customers’ money to the joint account. Once the money was in the joint account, a co-conspirator would then transfer the money belonging to the Wells Fargo customers from the joint account to bank accounts controlled by the co-conspirators. The defendant and his co-conspirators used the customers’ identities without their permission or authority and were responsible for a loss totaling approximately $164,755.91.
Mr. Ferrer commends the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
ACCOUNT TAKEOVERS (INCLUDING CREDIT CARD FRAUD)
United States v. Yulier Blanco Perez, et al., Case No. 17-CR-20073-Altonaga
On January 27, 2017, Yulier Blanco Perez, 34, David Machado Frometa, 34, and Silvio Lopez Cuellar, 30, of Miami, were charged in an eleven-count indictment with conspiracy to commit access device fraud, access device fraud, aggravated identity theft, and possession of fifteen or more unauthorized access devices.
According to the allegations contained in the indictment, from July 28, 2016 through October 27, 2016, Perez, Frometa and Cuellar conspired to use credit card account numbers issued to other persons to unlawfully obtain items with an aggregate value of at least $1,000.00. The defendants used the fraudulent credit card account numbers to purchase stone tile from various tile retailers in South Florida. Over four days, during the three-month conspiracy, the defendants fraudulently purchased over $96,000.00 worth of stone tile from three retailers.
Mr. Ferrer commends the investigative efforts of the MDPD and USSS. This case is being prosecuted by Assistant U.S. Attorney Jessica Kahn Obenauf.
United States v. Geraldine Hughes, Case No. 17-CR-20065-Gayles
On January 26, 2017, Geraldine Hughes, 30, of Pompano Beach, was charged in a four-count indictment for access device fraud and aggravated identity theft.
to the allegations contained in the indictment and other public records, in August of 2016, Hughes conspired with another person to create a Care Credit account in another person’s name to which Hughes was later fraudulently added on as an authorized user and able to charge dental procedures onto the Care Credit account. Hughes made several visits to dental offices in North Miami and Aventura. Approximately $7,000 worth of dental work was charged to the individual’s account, without his/her permission or authority.
Mr. Ferrer commends the investigative efforts of the Aventura Police Department and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
United States v. Fernando Garcia Cala, Case No. 17-CR-20072-Moore
On January 26, 2017, Fernandeo Garcia Cala, 32, of Miami, was charged in a nine-count indictment for access device fraud, possession of device-making equipment and aggravated identity theft.
According to the court record, including allegations contained in the indictment, Garcia operated a Ford F-350 diesel truck that was illegally outfitted with “bladders,” which are containers attached to the fuel line that allow the vehicle to hold more than 300 gallons of diesel fuel. Garcia used gift cards, fraudulently re-encoded with bank account numbers belonging to other individuals, to obtain hundreds of gallons of fuel from several different fuel stations. A search warrant executed at Garcia’s home revealed skimming devices that can be used to capture debit/credit card account number and pin numbers as they are inputted at the fuel pump, an encoding device that is used to place the skimmed numbers onto the magnetic stripes (such as those found on gift cards and hotel room keys), and more than 196 counterfeit access devices that were encoded with account numbers belonging to other individuals.
Mr. Ferrer commends the investigative efforts of the USSS and MDPD. This case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
United States v. Bamby Pierre, Case No. 16-CR-20945-Williams
On December 15, 2016, Bamby Pierre, 26, of Miami, was charged in an eight-count indictment for attempted use of unauthorized access devices, access device fraud and aggravated identity theft.
According to the allegations contained in the indictment, between November 2015 and April 2016, Pierre attempted to use and used the debit card numbers issued to other persons to make over $500,000 in withdrawals from ATMs. Bamby also unlawfully possessed and used the names and debit card numbers of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of the USPIS and Broward County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Jonathan Stratton.
United States v. Marcus Lee Grant, Case No. 17-CR-20077-Moreno
January 27, 2017, defendant Marcus Lee Grant, 26, of Miramar, was charged in a five-count indictment for his participation in a scheme to steal credit cards by directing and intercepting mail containing credit cards and other credit card account information. The indictment charges the defendant with conspiracy to commit access device fraud, access device fraud and aggravated identity theft. The indictment further charges that Grant and his co-conspirators changed the mailing addresses of other individuals, without their permission or authority, in order to intercept the mail and facilitate the fraudulent scheme.
Mr. Ferrer commends the investigative efforts of the United States Postal Inspection Service (USPIS). The case is being prosecuted by Assistant U.S. Attorney Cary Aronovitz.
United States v. Michel Gonzalez Suarez, et al., Case No. 16-CR-10053-King
On December 20, 2016, Michel Gonzalez Suarez, 38, and Beatriz Morales Saladriga, 20, both of Hialeah, were charged in a five-count indictment for their participation in a conspiracy to commit access device fraud, access device fraud, and aggravated identity theft in the Florida Keys.
to the allegations contained in the indictment, on October 5, 2016, Suarez and Saladriga conspired with each other and others to commit access device fraud. As part of the conspiracy, the defendants used counterfeit credit cards encoded with account numbers issued to other people to conduct a series of fraudulent transactions at several stores located in Monroe County. The defendants are also alleged to have unlawfully possessed fifteen or more counterfeit credit and debit cards encoded with unauthorized account numbers, and to have used one or more counterfeit credit cards encoded with account numbers issued to other persons.
Mr. Ferrer commends the efforts of ICE-HSI and the Monroe County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
United States v. Brandon Bair, et al., Case No. 17-CR-60005-Zloch
On January 10, 2017, Brandon Bair, 23, of Cutler Bay, Aimee Chin-Sang, 22, of Homestead, and Kevin Lawson Mitchell, 21, of Davie, were charged in a seven-count indictment for access fraud and aggravated identity theft indictment relating to trafficking in and using unauthorized AT&T merchant account numbers and credit card account numbers to commit more than $80,000 of fraud.
According to allegations contained in the indictment, on various dates in February, April and May of 2016, Bair and Chin-Sang used credit cards to conduct multiple fraudulent transactions at Home Depot stores located in Sunrise and Davie. Mitchell, an employee at the Davie Home Depot, helped Bair and Chin-Sang conduct several of these transactions. As part of the fraudulent scheme, Bair and Chin-Sang also presented counterfeit licenses and used unauthorized AT&T merchant account numbers to conduct fraudulent transactions involving thousands of dollars of Apple products at an AT&T store located in Fort Lauderdale. All three defendants are charged with conspiring to commit access device fraud. Bair and Chin-Sang are also charged with multiple counts of use of unauthorized access devices and aggravated identity theft.
Mr. Ferrer commends the investigative efforts of the USSS, Fort Lauderdale Police Department, and Davie Police Department. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
United States v. Angela Maria Villegas, 17-CR-20086-Ungaro
On January 27, 2017, Angela Maria Villegas, 41, of Miami Beach, was charged in a five-count indictment for aggravated identity theft and use of unauthorized access devices.
According to the court record, including allegations contained in the indictment, from January 20, 2015, through April 12, 2016, Villegas, a high-end retail employee, made over $20,000 worth of unauthorized purchases using the credit card account numbers belonging to her high-end specialty customers, without their permission or authority.
Mr. Ferrer commends the efforts of the MDPD and USSS. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Ahlaniee Maheei Chinn, 17-CR-20031-Middlebrooks
On January 7, 2017, Ahlaniee Maheei Chinn, 23, of Miami, was charged in a two-count indictment for access device fraud and aggravated identity theft.
to the court record, including allegations contained in the indictment, on March 4, 2016, Chinn, purchased more than two-thousand dollars’ worth of goods with a counterfeit credit card. The counterfeit card had the true account holders’ information shaved off and Chinn’s name was fraudulently embossed onto the credit card.
Mr. Ferrer commends the investigative efforts of IRS-CI and Aventura Police Department. This case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
United States v. Suzelie Cheremond, Case No. 17-CR-60025-Bloom
On January 26, 2017, Suzelie Cheremond, 25, of Miami, was charged in a five-count indictment for access device fraud and aggravated identity theft.
According to the court record, including allegations contained in the indictment, in December of 2015, Cheremond, a Sam’s Club employee in Miramar, unlawfully obtained and used credit cards belonging to other persons to make purchases at Sam’s Club for $4,110.11.
Mr. Ferrer commends the investigative efforts of IRS-CI, the Aventura Police Department and Miramar Police Department. This case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
United States v. Quienece Shedina Saintvil and Larod James Robinson,
Case No. 17-CR-20064-Ungaro
On January 26, 2017, Quienece Shedina Saintvil, 30, and Larod James Robinson, 34, both of Miami, were charged in a three-count indictment for their participation in a conspiracy to commit access device fraud and aggravated identity theft.
According to the court record, including allegations contained in the indictment, in August of 2016, Saintvil and Robinson entered the Bloomingdale’s Department store and unlawfully used a credit card account belonging to another person to make purchases. Saintvil and Robinson picked out merchandise and then Saintvil provided a Bloomingdale customer’s social security number in order to access the customer’s Bloomingdale’s credit account. Saintvil and Robinson made a total of three transactions, totaling $3,416.77, without the permission or authority of the true credit card account holder.
Mr. Ferrer commends the investigative efforts of IRS-CI and Aventura Police Department. This case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
United States v. Shanisa Bell, Case No. 17-CR-60029-Bloom
On January 27, 2017, Shanisa Bell, 25, of Coconut Creek, was charged in a three-count indictment for using unauthorized access devices to fraudulently obtain something valued at $1,000 or more and aggravated identity theft.
According to the allegations contained in the indictment, between July 2015 and June 2016, Bell unlawfully used debit card account numbers issued in the names of other persons without their permission or authority.
Mr. Ferrer commends the investigative efforts of DOL-OIG, ICE-HSI and the State of Michigan Unemployment Insurance Agency. This case is being prosecuted by Assistant U.S. Attorney Brian J. Shack.
United States v. Edrey Acosta, Case No. 17-CR-20071-Martinez
On January 26, 2017, Edrey Acosta, 27, of Miami, was charged in a three-count indictment for access device fraud and aggravated identity theft.
According to the allegations contained in the indictment, on November 8, 2016, Acosta used counterfeit encoded with credit card account numbers issued to other persons.
Mr. Ferrer commends the investigative efforts of the USSS and MDPD. This case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
United States v. Crystal Henderson, Case No. 17-CR-20066-Gayles
On January 26, 2017, Crystal Henderson, 34, of Homestead, was charged in a four-count indictment for access device fraud and aggravated identity theft.
According to the allegations contained in the indictment, on various dates throughout September of 2016, Henderson unlawfully used a credit card account belonging to another person to make purchases over $1,000.00.
Mr. Ferrer commends the investigative efforts of IRS-CI, Stamford Connecticut Police Department, and Aventura Police Department. This case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
United States v. Shante Marie Wesby, Case No. 17-CR-20032-Scola
On January 7, 2017, Shante Marie Wesby, 37, of Fort Lauderdale, was charged in a three-count indictment for access device fraud and aggravated identity theft.
According to the allegations contained in the indictment, on various dates throughout January and February of 2016, Wesby unlawfully used a social security number and a credit card account number belonging to another person, without his/her permission or authority.
Mr. Ferrer commends the investigative efforts of IRS-CI and Aventura Police Department. This case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
United States v. Kevin Martinez Morazan, Case No. 17-CR-60016-Bloom
On January 24, 2017, Kevin Martinez Morazan, 24, of Broward County, was charged in a five-count indictment with possessing fifteen or more unauthorized access devices and aggravated identity theft.
According to the allegations contained in the indictment, on May 7, 2015, Martinez unlawfully possessed names and social security numbers of other persons, without their permission or authority.
Mr. Ferrer commends the efforts of the Fort Lauderdale Police Department, USSS and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
United States v. Tymonzo Ward, Case No. 16-CR-60306-Cohn
On October 28, 2016, Tymonzo Ward, 37, of Wilton Manors, was charged in a six-count indictment for access device fraud and aggravated identity theft.
According to allegations contained in the indictment, on May 21, 2015, Ward unlawfully possessed fifteen or more credit card account numbers and social security numbers belonging to other persons. Ward also unlawfully possessed and used the names, date of births, and driver licenses of other persons without their permission or authority.
Mr. Ferrer commends the investigative efforts of IRS-CI, the USSS, and Fort Lauderdale Police Department. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara
United States v. Rayden Garcia Ramos, Case No. 16-CR-20808-Lenard
On October 21, 2016, Rayden Garcia Ramos, 46, of Hialeah, was charged in a six-count indictment for access device fraud, possession of fifteen or more unauthorized access devices and aggravated identity theft.
According to the allegations contained in the indictment, from September 8, 2015 through December 5, 2015, Ramos trafficked in and used one or more credit card account numbers issued to other persons in order to obtain something of value worth $1,000 or more. Additionally, on October 21, 2015, Ramos possessed unlawfully possessed fifteen or more counterfeit credit card account numbers belonging to other persons.
Mr. Ferrer commends the investigative efforts of the USSS. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
United States v. Terry Tyrone Clowers, Case No. 17-CR-60004-Dimitrouleas
On January 10, 2017, Terry Tyrone Clowers, 30, of Fort Lauderdale, was charged in a two-count indictment for attempted use of unauthorized access devices and aggravated identity theft.
According to the court record, including allegations contained in the indictment, on January 2, 2017, Clowers used the name and social security number of another person in an attempt to purchase an All-Terrain Vehicle worth thousands of dollars from a Broward Motor Sports store in Fort Lauderdale.
Mr. Ferrer commends the investigative efforts of the USSS and Fort Lauderdale Police Department. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
United States v. Halima Ouedraogo, Case No. 17-CR-60015-Moreno
On January 24, 2017, Halima Ouedraogo, 35, of Kirkland, Washington, was charged in a twelve-count indictment for access device fraud, possession of fifteen or more unauthorized access devices and aggravated identity theft.
According to the allegations contained in the indictment, from August 4, 2015 through August 25, 2015, in Broward County, Ouedraogo used credit cards issued to other persons to fraudulently obtain things valued at $1,000 or more. The indictment also alleges that on August 25, 2015, Ouedraogo possessed fifteen or more credit card account numbers and social security numbers belonging to other persons.
Mr. Ferrer commends the investigative efforts of IRS-CI, USSS, and the Fort Lauderdale Police Department. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
United States v. Terrell Tyrone Rivers and Preston Elijah Parrish, Case No. 17-CR-60024-Dimitrouleas
On January 26, 2017, Terrell Tyrone Rivers, 27, of Orlando, and Preston Elijah Parrish, 25, of Lauderhill, were charged in a ten-count indictment with conspiracy to commit access device fraud, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
According to allegations contained in the indictment, from February 10, 2016 through February 24, 2016, Rivers and Parrish conspired to possess fifteen or more unauthorized access devices, that is, social security numbers issued to other persons. On February 24, 2016, Rivers drove from Orlando to Lauderhill, Florida, to meet Parrish. According to court documents, on February 24, 2016, Rivers and Parrish were pulled over in Lauderhill, Florida. Upon a search of Rivers, several driver licenses with other persons’ information and Rivers’ photograph were recovered, along with personalized checks in other persons’ names. In the vehicle, a black suitcase, printer, tablets, and multiple blank business checks were recovered. A search of Rivers’ electronics revealed the PII of more than fifteen other persons. A search of Parrish’s electronics also revealed the PII of more than fifteen other persons.
Mr. Ferrer commends the investigative efforts of the USSS and the Lauderhill Police Department. This case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
United States v. Jessie Aguilar, Case No. 16-CR-20944-Gayles
On December 15, 2016, Jesse Aguilar, 28, of Hallandale Beach, was charged in a five-count indictment for conspiring to commit access device fraud, access device fraud, and aggravated identity theft.
According to the allegations contained in the indictment, on or about November 2, 2014, through on or about September 15, 2015, Aguilar conspired with others to commit access device fraud. As part of the conspiracy, they used counterfeit credit cards encoded with account numbers issued to other people to conduct a series of fraudulent transactions at the Apple Store in Miami Beach, Florida. The loss amount was approximately $308,830.86.
Mr. Ferrer commends the efforts of ICE-HSI and the MDPD. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
United States v. Dave Benggie Alin, Case No. 16-CR-20815-Williams
On October 25, 2016, Dave Benggie Alin, 21, of Miami, was charged in a three-count indictment with fraudulent use of a counterfeit credit card. aggravated identity theft, and possession of a firearm and ammunition by a convicted felon. On January 18, 2017, Alin pleaded guilty to all charges. He is currently set for sentencing on April 7, 2017.
According to the court record, on October 12, 2016, Alin was found by law enforcement to be in possession of a counterfeit credit card and a firearm. Alin used the credit card to check into a hotel in Miami, and then he continued to use the credit card to make purchases at the hotel.
Mr. Ferrer commends the investigative efforts of the MDPD and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Daniel Cervantes.
United States v. Luis Miniert, Case No. 16-CR-20941-Scola
On December 15, 2016, Luis Miniert, 26, of Miami, was charged in a five-count indictment for conspiring to commit access device fraud, access device fraud, and aggravated identity theft.
According to the allegations contained in the indictment, from November 2, 2014 through September 15, 2015, Miniert conspired with others to commit access device fraud. As part of the conspiracy, they used counterfeit credit cards encoded with account numbers issued to other people to conduct a series of fraudulent transactions at the Apple Store in Miami Beach, Florida. The loss amount was approximately $119,210.73.
Mr. Ferrer commends the efforts of ICE-HSI and the MDPD. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
United States v. Anthony Leon, Case No. 17-CR-20068-Lenard
On January 26, 2017, Anthony Leon, 31, of Hialeah, was charged in a five-count indictment for conspiring to commit access device fraud, access device fraud, and aggravated identity theft.
According to the allegations contained in the indictment, March 20, 2014 through July 18, 2015, Leon conspired with others to commit access device fraud. As part of the conspiracy, they used counterfeit credit cards encoded with account numbers issued to other people to conduct a series of fraudulent transactions at the Apple Store in Miami Beach, Florida. The loss amount was approximately $158,690.37.
Mr. Ferrer commends the efforts of ICE-HSI and the MDPD. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
United States v. Diana Leon a/k/a “Diana Montoya”, Case No.17-CR-20069-Altonaga
On January 26, 2017, Diana Leon a/k/a “Diana Montoya,” 22, of Hialeah, was charged in a five-count indictment for conspiring to commit access device fraud, access device fraud, and aggravated identity theft.
According to the allegations contained in the indictment, from September 20, 2014 through August 31, 2015, the defendant conspired with others to commit access device fraud. As part of the conspiracy, they used counterfeit credit cards encoded with account numbers issued to other people to conduct a series of fraudulent transactions at the Apple Store in Miami Beach, Florida. The loss amount was approximately $141,503.01.
Mr. Ferrer commends the efforts of ICE-HSI and the MDPD. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
United States v. Stephanie Vargas, Case No. 17-CR-20070-Moreno
On January 26, 2017, Stephanie Vargas, 26, of Hialeah, was charged in a five-count indictment for conspiring to commit access device fraud, access device fraud, and aggravated identity theft.
According to the allegations contained in the indictment, from December 20, 2014 through July 17, 2015, Vargas conspired with others to commit access device fraud. As part of the conspiracy, they used counterfeit credit cards encoded with account numbers issued to other people to conduct a series of fraudulent transactions at the Apple Store in Miami Beach, Florida. The loss amount was approximately $174,152.60.
Mr. Ferrer commends the efforts of ICE-HSI and the MDPD. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
UNLAWFULLY POSSESSING PII
United States v. Alvin Celius Andre, Case No. 17-CR-60014-Zloch
On January 20, 2017, Alvin Celius Andre, 26, of Miramar, was charged in a four-count indictment with access device fraud and aggravated identity theft.
According to the allegations contained in the indictment, on March 26, 2016, Andre possessed fifteen or more social security numbers issued to other persons. Andre also unlawfully possessed and used the names and date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of Miramar Police Department and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Frantz Felix, Jr, Case No. 17-CR-20038-Williams
On January 20, 2017, Frantz Felix, Jr, 23, of Miramar, was charged in a six-count indictment with access device fraud and aggravated identity theft.
According to the allegations contained in the indictment, on March 26, 2016, Felix possessed fifteen or more social security numbers issued to other persons and used a credit card account number issued to another person. Felix, Jr. also unlawfully possessed and used the names and date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of the Miramar Police Department and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Marcus Allen Griffin, Case No. 17-CR-60011-Dimitrouleas
On January 13, 2017, Marcus Allen Griffin, 22, of Miramar, was charged in a six-count indictment with access device fraud and aggravated identity theft.
to the allegations contained in the indictment, on September 1, 2016, Griffin possessed fifteen or more social security numbers and credit card account numbers issued to other persons. Griffin also unlawfully possessed and used the names and date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of the Miramar Police Department and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Marc Antoine Riviere, Case No. 17-CR-20024-Moore
On January 13, 2017, Marc Antoine Riviere, 29, of Miami, was charged in a four-count indictment for identity theft in connection with his possession of at least fifteen social security numbers belonging to other individuals.
According to the allegations in the indictment, on July 17, 2014, Riviere was found in possession of fifteen or more social security numbers issued to other persons, without their permission or authority. Riviere also unlawfully possessed and used the names and date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of FBI, IRS-CI, and Miami-Dade County Schools Police Department. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
United States v. Jacqueloi Trishauna Moreau, Case No. 17-CR-60003-Bloom
On January 10, 2017, Jacqueloi Trishauna Moreau, 28, of Lauderdale Lakes, was charged in a four-count indictment for identity theft in connection with her possession of at least fifteen social security numbers belonging to other individuals.
According to the allegations in the indictment, on July 18, 2016, Moreau was found in possession of fifteen or more names, dates and social security numbers issued to other persons. Moreau also unlawfully possessed and used the names and date of births of other persons, without their permission or authority.
Mr. Ferrer commends the efforts of USPIS, IRS-CI and Margate Police Department. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
United States v. Elena Caridad Amaya, Case No. 17-CR-20067-Ungaro
On January 26, 2017, Elena Caridad Amaya, 42, of Lauderdale Lakes, was charged in a four-count indictment for identity theft in connection with her possession of at least fifteen social security numbers belonging to other individuals.
According to the allegations in the indictment, in April 2016, Amaya was found in possession of fifteen or more counterfeit card encoded with account numbers and social security numbers issued to other persons. Amaya used a credit card account number issued to another person, without his/her permission or authority, to make purchases totaling $20,681.64.
Mr. Ferrer commends the efforts of IRS-CI and MDPD. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
United States v. Robert Jamorris Jackson, Case No. 16-CR-60337-Bloom
On December 2, 2016, Robert Jamorris Jackson, 33, of Broward County, was charged in a six count indictment with possession of fifteen or more unauthorized access devices and aggravated identity theft.
The indictment alleges that on February 18, 2016, in Broward County, Jackson possessed personal identifying information of more than fifteen people.
Mr. Ferrer commends the investigative efforts of the USSS. This case was indicted by Assistant U.S. Attorney Daniel Cervantes and is being prosecuted by Assistant U.S. Attorney Jonathan Stratton.
United States v. Aamir Khan, Case No. 16-CR-20839-Lenard
On November 1, 2016, Aamir Khan, 20, of Miami, was charged in a six-count indictment with possession of fifteen or more unauthorized access devices and aggravated identity theft. On January 3, 2017, Khan pleaded guilty to possession of fifteen or more unauthorized access devices and one count of aggravated identity theft. Khan is scheduled to be sentenced on March 15, 2017.
According to the court record, on or about June 10, 2014, Khan was arrested for driving without a license. A search incident to arrest revealed that Khan had a USB drive in his pocket. A consensual search of the USB drive revealed PII for approximately 3,680 individuals, including their names, addresses, dates of birth, and social security numbers.
Mr. Ferrer commends the investigative efforts of IRS-CI and NMBPD. This case is being prosecuted by Assistant U.S. Attorney Daniel Cervantes.
United States v. Victor Joseph, Case No. 16-CR-60335-Zloch
On November 29, 2016, Victor Joseph, 26, of Orlando, was charged in a seven-count indictment with using one or more unauthorized access devices, possessing fifteen or more unauthorized access devices and aggravated identity theft.
According to the allegations in the indictment, between January and March 2015, Joseph possessed and used social security numbers of other persons, without their permission or authority.
Mr. Ferrer commends the efforts of IRS-CI and USSS. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
United States v. Dave Pierre, Case No. 17-CR-60023-Moreno
On January 26, 2017, Dave Pierre, 28, of Miami, was charged in a five-count indictment with access device fraud and aggravated identity theft.
According to the allegations contained in the indictment, on November 7, 2016, Pierre unlawfully possessed fifteen or more names, dates of birth and social security numbers belonging to other persons. Pierre unlawfully possessed and used the names and date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of IRS-CI and the Broward County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
United States v. Ricky Cearc, Case No. 17-CR-20083-Moreno
On January 27, 2017, Ricky Cearc, 27, of Miami, was charged in a three-count indictment for access device fraud and aggravated identity theft.
According to allegations contained in the indictment, on August 29, 2013, Ricky Cearc unlawfully possessed fifteen or more social security numbers belonging to other persons. Ricky Cearc unlawfully possessed and used the date of births and social security numbers of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of ICE-HSI and MDPD. This case is being prosecuted by Assistant U.S. Attorney Jonathan D. Stratton.
United States v. Lyns Cearc, Case No. 17-CR-20084-Gayles
On January 27, 2017, Lyns Cearc, 34, of Miami, was charged in a three-count indictment for access device fraud and aggravated identity theft.
to allegations contained in the indictment, on August 29, 2013, Lyns Cearc unlawfully possessed fifteen or more social security numbers belonging to other persons. Lyns Cearc unlawfully possessed and used the date of births and social security numbers of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of ICE-his and MDPD. This case is being prosecuted by Assistant U.S. Attorney Jonathan D. Stratton.
United States v. Edouard Bastien, Case No. 16-CR-20953-Gayles
On December 19, 2016, a criminal information was filed, charging Edouard Bastien, 27, of North Miami Beach, with possession of fifteen or more unauthorized access devices and aggravated identity theft.
to the allegations contained in the information, on June 20, 2014, Bastien unlawfully possessed fifteen or more social security numbers belonging to other persons. Bastien also unlawfully possessed and used the names and social security numbers of other persons without their permission or authority.
Mr. Ferrer commends the investigative efforts of ICE-HSI, DOL-OIG, IRS-CI and North Miami Beach Police Department (NMBPD). This case is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein.
United States v. D’Andre Nathaniel Watson. Case No. 16-CR-20958-Lenard
On December 20, 2016, D’Andre Nathaniel Watson, 19, of North Miami Beach, was charged in a six-count indictment for possession of fifteen or more unauthorized access devices and aggravated identity theft.
According to the allegations contained in the indictment, on February 25, 2016 and again on March 16, 2016, Watson unlawfully possessed fifteen or more social security numbers belonging to other persons. Watson also unlawfully possessed and used the names and the date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of ICE-HSI, DOL-OIG, and NMBPD. This case is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein.
United States v. Brian Anthony Joseph, Case No. 17-CR-20004-Moore
On January 5, 2017, Brian Anthony Joseph, 21, of Miami, was charged in a four-count indictment for possession of fifteen or more unauthorized access devices and aggravated identity theft.
According to the allegations contained in the indictment, on November 9, 2015, Joseph unlawfully possessed fifteen or more social security numbers belonging to other persons. Watson also unlawfully possessed and used the names and the date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts ICE-HSI, DOL-OIG, NMBPD and the Florida Department of Economic Opportunity. This case is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein.
United States v. Richard Wayne Brown, Case No. 17-CR-60010-Cohn
On January 13, 2017, Richard Wayne Brown, 29, of Miramar, was charged in a seven-count indictment for possession of fifteen or more unauthorized access devices and aggravated identity theft.
According to the allegations contained in the indictment, on December 28, 2016 and January 6, 2017, Brown unlawfully possessed fifteen or more social security numbers belonging to other persons. Brown also unlawfully possessed and used the names and the date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of U.S. Department of Agriculture, Office of the Inspector General (USDA-OIG), FBI, USSS, and Fort Lauderdale Police Department. This case is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein.
United States v. Peterson Joseph, Case No. 16-CR-20830-Moore
On October 28, 2016, Peterson Joseph, 24, of Miami, Florida, was charged in a four-count indictment with aggravated identity theft, possession of fifteen or more unauthorized access devices, and using unauthorized access devices to fraudulently obtain something valued at $1,000 or more.
According to the allegations contained in the indictment, from June 17, 2014 through May 19, 2015, Joseph unlawfully possessed and used fifteen or more social security numbers belonging to other persons.
Mr. Ferrer commends the investigative efforts of DOL-OIG. This case is being prosecuted by Assistant U.S. Attorney Brian J. Shack.
United States v. Jason Douglas, Case No. 16-CR-60308-Bloom
On October 28, 2016, Jason Douglas, 26, of New York, was charged in a three-count indictment with possessing fifteen or more unauthorized and counterfeit access devices and aggravated identity theft.
to the allegations contained in the indictment, on or about April 16, 2016, Douglas unlawfully possessed fifteen or more social security numbers issued to other persons and debit cards encoded with account numbers issued to other persons. Douglas also unlawfully possessed and used the names, date of births and social security numbers of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of IRS-CI and the Broward County Sherriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Brian J. Shack.
United States v. Jerry Jean Baptiste and Stanley Auguste, Case No. 16-CR-20934-Cooke
On December 15, 2016, Jerry Jean Baptiste, 22, of Miami, and Stanley Auguste, 25, of Miami Gardens, were charged in a nine-count indictment with conspiracy to possess fifteen or more unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
to the allegations contained in the indictment, from April 24, 2015 through August 5, 2015, Baptiste and Auguste conspired to possess unlawfully fifteen or more social security numbers issued to other persons. On or about April 30, 2015, Baptiste possessed and sold electronic files containing lists of PII of various individuals, including social security numbers issued to fifteen or more individuals. On or about May 6, 2015, and again on August 5, 2015, Baptiste and Auguste possessed and sold electronic files containing lists of PII, including fifteen or more social security numbers. Baptiste and Auguste possessed and used the names, social security numbers, and dates of birth of real individuals, without permission or authority.
Mr. Ferrer commends the investigative efforts of ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney John P. Gonsoulin.
ACCESS DEVICE FRAUD
United States v. Alexey Abreu Chapotin, et al., Case No. 17-CR-20043-Lenard
January 24, 2017, Alexey Abreu Chapotin, 22, Yankiel Blanco, 34, and Yuliesky Cespedes Perez, 26, all of Miami, were charged in a two-count indictment for conspiracy to commit access device fraud and possession of device making equipment.
According to the allegations contained in the indictment, on August 16, 2016, Chapotin, Blanco and Perez possessed credit card “skimming” devices, drills, and other equipment which was used to modify the skimmers so that they could be surreptitiously installed onto credit card readers at gas pumps. The indictment further alleges that on August 16, 2016, the defendants installed one of these card “skimming” devices at a pump at the gas station, in order to capture customer credit card account information.
Mr. Ferrer commends ICE-HSI and the Aventura Police Department. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
United States v. Omar Pulido Sanchez, et al., Case No. 17-mj-2112-JJO
On January 27, 2017, Omar Pulido Sanchez, 38, Uriel Pulido Sanchez, 42, and Maria Castillo Sarmiento, all of Colombia, were charged by criminal complaint with conspiracy to possess fifteen or more access devices and conspiracy to possess access device making equipment.
According to the allegations contained in the complaint, in June of 2016, the defendants installed credit card skimming devices onto bank ATMs throughout South Florida. In total, the defendants stole the bank account information of at least three hundred victims, and of those three hundred victims, over sixty reported fraudulent withdrawals from their accounts.
Mr. Ferrer commends the investigative efforts of the MDPD. This case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet.
United States v. Rene Hernandez, Case No. 17-mj-2111-O’Sullivan
On January 27, 2017, Rene Hernandez, 57, of Miami, was charged by criminal complaint for possession of access device making equipment.
According to the allegations contained in the complaint, on April 5, 2016, Hernandez was found by law enforcement to be in possession of a magnetic stripe encoding device, multiple fuel pump credit card skimming devices, and several counterfeit credit cards in his own name.
Mr. Ferrer commends the investigative efforts of the MDPD. This case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet.
United States v. Cesar Castillo Vargas, Case No. 17-mj-6040-O’Sullivan
On January 27, 2017, Cesar Castillo Vargas, 37, of Colombia, was charged by criminal complaint with possession of access device making equipment.
According to the allegations contained in the complaint, on August 1, 2016, law enforcement found Castillo Vargas in possession of a magnetic strip encoder device, a fraudulent Colombian driver license, a fraudulent Mexican passport, and several blank credit or debit cards.
Mr. Ferrer commends the investigative efforts of the MDPD. This case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet.
United States v. Oberto Jean, Case No. 17-CR-20082-Scola
On January 27, 2017, Oberto Jean, 35, of Miami, Florida, was charged in a five-count indictment with possession of fifteen or more unauthorized access devices, possession of access device-making equipment, aggravated identity theft, and being a felon in possession of firearms and ammunition.
to the allegations contained in the indictment, on or about February 11, 2015, Jean unlawfully possessed access device-making equipment and fifteen or more social security numbers belonging to other persons. Jean unlawfully possessed and used the date of births and social security numbers of other persons, without their permission or authority. Jean, a convicted felon, also possessed two firearms and ammunition.
Mr. Ferrer commends the investigative efforts of IRS-CI, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Miami Police Department (MPD). This case is being prosecuted by Assistant U.S. Attorney Brian J. Shack.
United States v. Anthony Reid, Case No. 16-CR-60307-Dimitrouleas
On October 28, 2016, Anthony Reid, 22, of Miami, was charged in a four-count indictment with possessing access device-making equipment, fifteen or more unauthorized and counterfeit access devices, and aggravated identity theft.
According to the allegations contained in the indictment, on April 16, 2016, Reid unlawfully possessed access device-making equipment, social security numbers issued to other persons, and counterfeit credit cards and debit cards encoded with account numbers issued to other persons.
Mr. Ferrer commends the investigative efforts of IRS-CI and the Broward County Sherriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Brian J. Shack.
United States v. Luis Perez Luis and Jose Luis Perez, Case No. 17-CR-20087-Altonaga
On January 27, 2017, Luis Perez Luis, 57, and Jose Luis Perez, 33, both of Miami, were charged in an eight-count indictment with aggravated identity theft, conspiracy to possess fifteen or more access devices, possession of fifteen or more unauthorized access devices, and possession of device making equipment
According to the allegations contained in the indictment, on August 31, 2016, Luis and Perez conspired to possess and possessed fifteen or more counterfeit credit cards and credit card account numbers issued to other persons, as well as access device making equipment.
Mr. Ferrer commends the investigative efforts of the MDPD and USSS. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Patrick Gaston Sebastian, Case No. 17-CR-20030-Williams
On January 20, 2017, Patrick Gaston Sebastian, 21, of Miami, Florida, was charged in a four-count indictment with aggravated identity theft, possession of fifteen or more unauthorized access devices and possession of device making equipment.
According to the allegations contained in the indictment, on July 1, 2016, Sebastian possessed fifteen or more social security numbers and credit card account numbers issued to other persons as well as a credit card embosser and credit card skimmer. Sebastian also unlawfully possessed and used the names and the date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of MDPD and USSS. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Luis Fernando Casallas Guzman, Case No. 17-CR-20022-Scola
On January 13, 2017, Luis Fernando Casallas Guzman, 61, of Colombia, was charged in a two-count indictment with possession of fifteen or more unauthorized access devices and possession of device making equipment.
According to the allegations contained in the indictment, on March 12, 2015, Guzman possessed fifteen or more counterfeit credit cards and credit card account numbers of other individuals as well as a credit card skimmer and magnetic stripe encoder.
Mr. Ferrer commends the investigative efforts of ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
If convicted of the charged conduct, the defendants face a possible maximum statutory sentence of 10 years in prison for possession of fifteen or more unauthorized access devices; 10 years in prison for trafficking in or using one or more unauthorized access devices during a one-year period and by such conduct obtaining anything of value over $1,000; 5 years in prison for theft of mail; 10 years in prison for theft of government money; 5 in prison for conspiracy to commit theft of government money; 5 years in prison for conspiracy to defraud the United States; 15 years in prison for possession of access device making equipment; 20 years in prison for participating in a wire fraud conspiracy; 5 years in prison for conspiracy to pass Treasury checks bearing forged endorsements; and 2 years in prison consecutive to any other term for aggravated identity theft.
Mr. Ferrer commends ATF, the Aventura Police Department, Broward County Sheriff’s Office, U.S. Customs and Border Protection (CBP), Davie Police Department, DOL-OIG, FBI , Florida Department of Economic Opportunity, Homestead Police Department, ICE-HSI, IRS-CI, Lauderhill Police Department, Margate Police Department, Miami Beach Police Department, MDPD Professional Compliance Bureau and Public Corruption Section, Miami-Dade County Office of the Inspector General, Miami-Dade Public Schools Police Department, Miramar Police Department, Monroe County Sheriff’s Office, MPD, NMBPD, Stamford Connecticut Police Department, State of Michigan Unemployment Insurance Agency, SSA-OIG, TIGTA, USDA-OIG, USPIS, USSS, for the investigative support they provide the Strike Force to combat fraud schemes throughout the Southern District of Florida.
A criminal complaint or an indictment is an accusatory instrument that contains formal charges against a defendant. All persons charged in a criminal complaint or indictment are presumed innocent until proven guilty in a court of law. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Northwest Missouri Farmer Indicted for $800,000 Crop Insurance FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Albany, Mo., farmer was indicted by a federal grand jury today for a nearly $800,000 fraud scheme to receive federal crop insurance payments to which he was not entitled.
Ryan A. Ruckman, 60, of Albany, was charged in an eight-count indictment returned by a federal grand jury in Kansas City, Mo.
Ruckman owned and operated farms in the Missouri counties of Gentry, Davies, Nodaway, Worth and Harrison, as well as counties in southern Iowa. The indictment alleges that Ruckman defrauded the government by claiming federal benefits in his son’s name in order to receive additional payments from the U.S. Department of Agriculture under the Supplemental Revenue Assistance Program (SURE), the Direct and Counter-cyclical Payment program and the Multiple Peril Crop Insurance program.
In order to be eligible to receive those payments, an applicant must be actively engaged in farming. Ruckman’s son, the indictment says, was a full-time student at Logan University College of Chiropractic in St. Louis, Mo. Ruckman allegedly placed crop ownership/production in his son’s name in order to increase the number of persons eligible to receive federal benefits.
From February 2007 to May 2010, the indictment says, Ruckman submitted documentation to provide the appearance that his son was the producer of the crops and to conceal the fact that he was the actual producer of the crops. According to the indictment, losses incurred by the government as a result of Ruckman’s fraud scheme totaled approximately $795,935.
According to the indictment, Ruckman used the proceeds of the fraud scheme to make payments on approximately $2.9 million in farm operating loans at Midstates Bank in Harlan, Iowa.
Today’s indictment charges Ruckman with eight counts of loan application fraud. The indictment also contains a forfeiture allegation, which would require Ruckman to forfeit to the government any property obtained from the proceeds of the alleged fraud.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Senior Litigation Counsel Gregg R. Coonrod. It was investigated by the U.S. Department of Agriculture Office of Inspector General and Risk Management Agency.
New York Couple Sentenced for H1B Visa Fraud Scheme, Forfeits $1 MillionRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that Loreto Kudera, age 45, and Hazel Kudera, age 43, a married couple from New York, New York, were each sentenced to two years of probation and a $25,000.00 fine following their convictions in an immigration fraud scheme. The Kuderas previously paid a $1 million forfeiture penalty representing ill-gotten gains from the scheme.
On June 9, 2016, the Kuderas pleaded guilty to charges that they conspired to commit immigration fraud. According to the public record, Hazel Kudera owns several medical staffing agencies in New York specializing in providing nursing professionals to hospitals, outpatient and skilled nursing facilities. She and her husband, Loreto Kudera, then a lawyer at the Law Offices of Barry Silberzweig, in New York, New York, provided false and fraudulent information to the U.S. Citizenship and Immigration Services in St. Albans, Vermont when applying for H1-B visas for foreign nurses.
The H-1B visa program permits an employer to petition on a behalf of a foreign national beneficiary to enter the United States for the specific purpose of working for the employer in a specialty occupation. There are a limited number of H-1B visas available each year, and the purpose of the program is to ensure that these visas go to legitimate beneficiaries to fill specialty positions from a qualified work force. Working as a general RN or LPN is not considered a specialty occupation by the U.S. Citizenship and Immigration Service. Knowing this, Hazel Kudera and Loreto Kudera falsely stated that these foreign nurses, mostly from the Philippines, would be working in specialty occupations at prevailing wage rates when, in fact, they were going to work as LPNs or RNs at much lower rates, mostly at nursing homes. Hazel Kudera and Loreto Kudera profited from this scheme from the filing fees they collected from the beneficiaries as well as from the health care facilities which were paying fees to the medical staffing agencies owned by Hazel Kudera. The Kuderas admitted that they submitted 100 or more fraudulent petitions as part of their scheme. As a result of their convictions, the Kuderas also forfeited $1,000,000 in illegal proceeds to the United States.
Today, Judge J. Garvan Murtha sentenced the Kuderas to each serve two years of probation and to each pay an additional $25,000.00 fine.
The United States Attorney commended the investigative efforts of the United States Department of State, Diplomatic Security Service, the United States Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud, and the United States Department of Homeland Security, Homeland Security Investigations, in Boston, Massachusetts, who jointly spearheaded the investigation. The United States Attorney also wishes to thank the United States Citizenship and Immigration Service, Security Fraud Division, at the Vermont Service Center in St. Albans, Vermont for their assistance with the investigation.
The United States was represented in the investigation, plea, and forfeiture stages of the case by Assistant U.S. Attorney Heather E. Ross and at sentencing by First Assistant U.S. Attorney Eugenia Cowles. Hazel Kudera is represented by Richard Willstatter of Green & Willstatter, White Plains, New York and Loreto Kudera is represented by Marc Fernich of New York, New York.
Monroe County Resident Convicted at Trial of Attempting to Use A Weapon of Mass Destruction and Attempting to Provide Material Support to A Terrorist OrganizationRead the Press Release
This afternoon, a federal jury in Key West convicted a South Florida resident of attempting to use a weapon of mass destruction, an explosive device, and attempting to provide material support to a terrorist organization.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mary B. McCord, Acting Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
Harlem Suarez, a/k/a “Almlak Benitez,” 23, of Monroe County, Florida, was convicted at trial of knowingly attempting to use a weapon of mass destruction against a person or property within the United States, in violation of Title 18, United States Code, Section 2332a(a)(2) and attempting to provide material support to a terrorist organization, in violation of Title 18, United States Code, Section 2339B. Suarez is scheduled to be sentenced by United States District Judge Jose E. Martinez in Key West, on April 18, 2017 at 1:30 p.m.
“By intending to place an explosive device on a public beach, Harlem Suarez posed a grave threat to the residents and visitors of Key West,” stated U.S. Attorney Ferrer. “It is because of the Joint Terrorism Task Force’s unwavering commitment to our national security that law enforcement is able to prevent potential attacks on American soil that are inspired or directed by terrorist organizations. Let this case serve as an example to others that the U.S. Attorney’s Office and our law enforcement partners stand as a united front against all domestic threats.”
“Harlem Suarez, a self-professed ISIL adherent, attempted to use a weapon of mass destruction - a backpack bomb - in the United States and now stands convicted of two terrorism offenses,” said Acting Assistant Attorney General McCord. “Stopping attacks on our homeland by those inspired or directed by designated foreign terrorist organizations is the highest priority of the National Security Division. I want to thank the agents, analysts, and prosecutors who are responsible for today’s result.”
"Suarez wanted to kill innocent people by detonating a nail laced explosive filled backpack on a crowded Key West beach," said George L. Piro, Special Agent in Charge, FBI Miami. “He was denied his terroristic dreams by several hardworking, dedicated law enforcement organizations and professionals. This is a job well done."
According to evidence introduced at trial, in April 2015, Suarez’s Facebook postings contained extremist rhetoric and promoted the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Evidence further indicated that Suarez told an FBI confidential human source that he wanted to make a “timer bomb.” Suarez purchased components for this device, which was to contain galvanized nails, be concealed in a backpack and be remotely detonated by a cellular telephone. Suarez intended to bury the device at a public beach in Key West and then detonate it.
Mr. Ferrer commended the investigative efforts of the FBI, JTTF, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Key West Police Department, Monroe County Sheriff’s Office, and Palm Beach County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorneys Marc S. Anton and Karen E. Gilbert with assistance from the National Security Division’s Counterterrorism Sectionof the U.S. Department of Justice.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mission Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Assaulting, Opposing, Resisting, and Impeding a Federal Officer was sentenced on January 30, 2017, by U.S. District Judge Roberto A. Lange.
Richard One Feather, age 47, was sentenced to 8 months in custody, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
One Feather was indicted by a federal grand jury on April 13, 2016. He pled guilty on November 8, 2016.
The conviction stemmed from an incident that occurred on March 29, 2016. A Rosebud Sioux Tribe Law Enforcement Services Officer observed One Feather’s speeding and swerving. The officer pursued One Feather to a house in the Soldier Creek Community. One Feather was visibly intoxicated when he exited the vehicle, and refused to comply with the officer’s commands. He then began to actively resist arrest and kicked the officer in the leg. The officer pepper-sprayed One Feather, placed him on the ground, and handcuffed him.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk W. Albertson prosecuted the case.
One Feather was immediately turned over to the custody of the U.S. Marshals Service.
McAllen Man Heads to Prison for Downloading Hundreds of Child Pornography Videos and ImagesRead the Press Release
McALLEN, Texas – A 27-year old resident of McAllen has been ordered to federal prison following his conviction of receipt of child pornography, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). Jorge Trevino-Blanco pleaded guilty Sept. 28, 2016.
Today, U.S. District Judge Micaela Alvarez took into consideration the number of videos and images involved in the offense as well as the harm to the victims and handed Trevino-Blanco a sentence of 120 months in federal prison. The sentence will be immediately followed by 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. Additional information was also presented today, including testimony regarding the fact that certain videos involved children under three years of age and children engaged in acts of bondage. The court further ordered restitution for one of the victims involved in the offense in the amount of $10,000. Trevino-Blanco will also be ordered to register as a sex offender.
Trevino-Blanco came to the attention of law enforcement following an investigation which began Oct. 16, 2015, into persons using the Internet to traffic in child pornography. A special agent with HSI was able to locate and identify a computer as offering to participate in the receipt of child pornography movies and images through the peer-to-peer network on the Internet. Through the investigation, it was determined that the computer was located in a residence in McAllen.
On July 8, 2016, authorities executed a federal search warrant at that residence, during which time they seized two laptop computers and an external hard drive. A forensic examination on the devices revealed a total of 123 videos and 282 images of child pornography involving clearly young children engaged in sexually explicit conduct. These videos and images included children under the age of 12 engaged in sadistic conduct and acts of violence. Some of the videos and images are of known victims as identified through the National Center for Missing and Exploited Children.
Trevino-Blanco admitted he downloaded child pornography from the Internet, thereby receiving the child pornography found on his computers and external hard drive. He further admitted he had been doing so for approximately four years.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Alex Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Manhattan U.S. Attorney Announces Arrival of Four Defendants from Kenya Charged with Trafficking in Massive Quantities of Heroin and MethamphetamineRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Raymond Donovan, the Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), today announced that four individuals charged with participating in a narcotics importation conspiracy arrived in New York from Kenya.
BAKTASH AKASHA ABDALLA, a/k/a “Baktash Akasha,” IBRAHIM AKASHA ABDALLA, a/k/a “Ibrahim Akasha,” GULAM HUSSEIN, a/k/a “Hussein Shabakhash,” a/k/a “Hadji Hussein,” a/k/a “Old Man,” and VIJAYGIRI ANANDGIRI GOSWAMI, a/k/a “Vijay Goswami,” a/k/a “Vicky Goswami,” were arrested in Mombasa, Kenya, on November 9, 2014, pursuant to a United States request, based on charges filed in the Southern District of New York arising out of their participation in a conspiracy to import kilogram quantities of heroin and methamphetamine into the United States. On November 10, 2014, a superseding Indictment was returned also charging the defendants with narcotics importation offenses based on their delivery of 99 kilograms of heroin and two kilograms of methamphetamine in Kenya, which they intended would be imported into the United States. The four defendants will be presented and arraigned in Magistrate Court later today.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the four defendants who arrived yesterday in New York ran a Kenyan drug trafficking organization with global ambitions. For their alleged distribution of literally tons of narcotics – heroin and methamphetamine – around the globe, including to America, they will now face justice in a New York federal court.”
DEA Special Operations Division Special Agent in Charge Raymond Donovan said: “DEA pursues the most dangerous global drug traffickers who pose a direct threat to safety and stability around the world. We are relentlessly pursuing these criminal groups and their facilitators at every level with our law enforcement partners and we value and appreciate the work of our Kenyan counterparts. It is critical that we attack these dangerous networks before they can do even more damage worldwide and threaten innocent lives.”
According to the allegations in the superseding Indictment[1]:
From in or about March 2014 through the date of their arrests, BAKTASH AKASHA, IBRAHIM AKASHA, HUSSEIN, and GOSWAMI conspired to import kilogram-quantities of heroin into the United States. During the same period, BAKTASH AKASHA, IBRAHIM AKASHA, and GOSWAMI conspired to import kilogram quantities of methamphetamine into the United States.
BAKTASH AKASHA is the leader of an organized crime family in Kenya (the “Akasha Organization”) responsible for the production and distribution of ton quantities of narcotics within Kenya and throughout Africa. Moreover, the Akasha Organization’s distribution network extends beyond the African continent to include the distribution of narcotics for importation into the United States. IBRAHIM AKASHA is the brother and deputy of BAKTASH AKASHA. GOSWAMI manages the Akasha Organization’s drug business, including the production and distribution of methamphetamine and the procurement and distribution of heroin. HUSSEIN – a resident of Pakistan and a long-time associate of GOSWAMI – heads a transportation network that distributes massive quantities of narcotics throughout the Middle East and Africa, and has acknowledged responsibility for transporting tons of kilograms of heroin by sea.
Over the course of several months, during telephone calls and meetings in Nairobi and Mombasa, Kenya, the defendants agreed to supply, and in fact did supply, multi-kilogram quantities of heroin and methamphetamine to individuals they believed to be representatives of a South American drug-trafficking organization, but who were in fact confidential sources (the “CSes”) working at the direction and under the supervision of the DEA. BAKTASH AKASHA, IBRAHIM AKASHA, and GOSWAMI negotiated on behalf of the Akasha Organization to procure and distribute hundreds of kilograms of heroin from suppliers in the Afghanistan/Pakistan region and to produce and distribute hundreds of kilograms of methamphetamine, which they understood would ultimately be imported into the United States. At the same time, HUSSEIN agreed to transport heroin from the Akasha Organization’s supplier in the Afghanistan/Pakistan region to East Africa, so that it could be delivered to the CSes.
During a meeting in Mombasa, Kenya, in April 2014, BAKTASH AKASHA introduced a CS via Skype to one of his heroin suppliers in Pakistan, who said he could provide 420 kilograms of 100 percent pure heroin – which he called “diamond” quality – for distribution in the United States. Thereafter, in June 2014, GOSWAMI began discussing with the CSes his ability to procure methamphetamine precursor chemicals and to establish labs to produce methamphetamine for importation to the United States. In a meeting in Mombasa in September 2014, BAKTASH AKASHA introduced HUSSEIN as a narcotics transporter from Afghanistan who moves ton quantities of narcotics using ships. BAKTASH AKASHA and GOSWAMI described the supplier of heroin for their deal with the CSes, to whom they referred as “the Sultan,” as the top supplier of white heroin in the world.
In September and October 2014, IBRAHIM AKASHA personally delivered one-kilogram samples of methamphetamine and heroin to the CSes in Nairobi on behalf of the Akasha Organization. Thereafter, during a telephone call in October 2014 between BAKTASH AKASHA, GOSWAMI, and one of the CSes, GOSWAMI reported that 98 “chickens” had arrived, referring to 98 kilograms of heroin. GOSWAMI said that the South American drug organization would only need to pay for half of the 98 kilograms of heroin because the Akasha Organization would cover the cost of remaining kilograms. Then, in early November, IBRAHIM AKASHA personally delivered 98 kilograms of heroin to the CSes in Nairobi on behalf of the Akasha Organization. A few days later, IBRAHIM AKASHA also delivered another kilogram of methamphetamine.
In the course these negotiations, the Akasha Organization provided a total of 99 kilograms of heroin and two kilograms of methamphetamine to the confidential sources, and agreed to provide hundreds of kilograms more of each. The defendants were arrested on November 9, 2014, in Mombasa, Kenya, prior to another planned meeting with the CSes.
* * *
BAKTASH AKASHA, 40, is a Kenyan national and a resident of Kenya. IBRAHIM AKASHA, 28, is also a Kenyan national and a resident of Kenya. HUSSEIN, 61, is a Pakistani national and a resident of Pakistan. GOSWAMI, 55, is an Indian national and a resident of Kenya. The defendants are charged with conspiring to import heroin into the United States (Count One), conspiring to import methamphetamine into the United States (Count Two), distributing heroin for unlawful importation into the United States (Count Three), and distributing methamphetamine for unlawful importation in the United States (Count Four). Each count carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding efforts of the DEA’s Special Operations Division’s Bilateral Investigations Unit. The Department of Justice’s Office of International Affairs also provided assistance in bringing the defendants to the United States to face charges. Mr. Bharara also thanked the DEA’s Nairobi Country Office, the Government of the Republic of Kenya, the Kenyan National Police Services Anti-Narcotics Unit, and members of the Kenyan DEA Formal Vetted Unit.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael D. Lockard and Emil J. Bove III are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the superseding Indictment, and the description of the superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manchester Man Sentenced to 70 Months in Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID GIL-GRANDE, 29, of Manchester, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 70 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, this matter stems from joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department that targeted a drug trafficking organization operating in Hartford’s North End that was distributing crack and powder cocaine. The investigation revealed that GIL-GRANDE received shipments of cocaine, secreted in sealed coffee cans, from Puerto Rico. He then supplied the cocaine to individuals who converted much of it into crack cocaine, and distributed both forms of the drug in the area of Barbour Street in Hartford.
GIL-GRANDE secreted cash generated from his drug trafficking in resealed coffee cans and then shipped the cans back to Puerto Rico. He also drove large amounts of cash to New York City where it would be sent to Puerto Rico. On January 6, 2016, GIL-GRANDE was stopped as he drove to New York. A subsequent search of his vehicle revealed approximately $92,000.
Twenty individuals were charged as a result of the investigation.
GIL-GRANDE has been detained since his arrest on January 21, 2016. On November 8, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad and the Drug Enforcement Administration are providing valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Manchester Man Sentenced to Eight Years in Prison for Partcipating in Oxycodone Distribution ConspiracyRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Jose Nunez (61) of Manchester, was sentenced to serve eight years in federal prison for participating in a conspiracy to distribute oxycodone pills, a conspiracy to launder money, distributing controlled substances, and possessing a firearm during a drug trafficking crime.
Court documents and statements in court showed that Nunez was part of group of drug traffickers who were distributing the pills in Manchester, New Hampshire. During a law enforcement investigation in 2013 and 2014 that included the use of controlled purchases of drugs and multiple wiretaps, investigators learned that Nunez, Samuel Garcia, Jennifer Nunez, and others were actively involved in the distribution of oxycodone pills. On multiple occasions, intercepted calls showed that members of the conspiracy (including Jose Nunez and Raul Hernandez) traveled to New York, obtained pills from a source of supply (Manuel Tirado), and then brought them back to New Hampshire. On one occasion, Jose Nunez was stopped in Massachusetts while transporting $18,900 in cash that was to be used to pay for oxycodone pills that were being supplied by Tirado.
Several targets of the investigation were arrested in Manchester on August 27, 2014. Hernandez was arrested as he attempted to deliver over 600 oxycodone pills to the residence of Samuel Garcia and Jennifer Nunez on Eastern Avenue in Manchester, New Hampshire. A search warrant was executed at that residence and hundreds of additional pills, as well as over $30,000 in cash and three firearms, were recovered from that location. Garcia, Jennifer Nunez, and Johanna Nunez were arrested that day. Jose Nunez was arrested in October of 2014, after returning to the United States from the Dominican Republic.
Jose Nunez pleaded guilty on March 6, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) four counts of Distribution of a Controlled Substance; (3) Conspiracy to Launder Monetary Instruments; and (4) Possession of a Firearm During a Drug Trafficking Crime. After serving his prison sentence, he will be on supervised release for a period of three years.
All of the other individuals who were involved in this conspiracy also have pleaded guilty.
Samuel Garcia (36) pleaded guilty on March 24, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) Possession of a Controlled Substance with Intent to Distribute; (3) Conspiracy to Launder Monetary Instruments; and (4) Possession of a Firearm During a Drug Trafficking Crime. He is awaiting sentencing.
Jennifer Nunez (26) pleaded guilty on March 24, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) Possession of a Controlled Substance with Intent to Distribute; (3) Distribution of a Controlled Substance; and (4) Possession of a Firearm During a Drug Trafficking Crime. She is awaiting sentencing.
Johanna Nunez (30) pleaded guilty on March 24, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; and (2) four counts of Distribution of a Controlled Substance. On June 23, 2015, she was sentenced to 51 months in prison, followed by three years of supervised release.
Raul Hernandez (29) pleaded guilty on March 17, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance and (2) Possession of a Controlled Substance with Intent to Distribute. On June 23, 2015, he was sentenced to 48 months in prison, followed by three years of supervised release.
An additional defendant, Edward Anthony Hiciano Beltre, is a fugitive.
A source of supply for the organization, Manuel Tirado, pleaded guilty to participating in a drug conspiracy and failure to appear on August 23, 2016. On January 3, 2017, he was sentenced to 15 years in prison, followed by three years of supervised release.
In addition to these defendants, several additional individuals who obtained oxycodone from this organization and resold it to customers have pleaded guilty to federal drug conspiracy charges. Ryan Demers, William Alba, Bonnie Labrie, Krystal Mailhot, and Yonajaira Galarza Ramos have all entered guilty pleas in federal court.
Demers was sentenced on September 22, 2015, to 57 months in prison, followed by three years of supervised release. That sentence was affirmed on appeal by the United States Court of Appeals for the First Circuit.
Labrie was sentenced on March 11, 2016, to 72 months in prison, followed by three years of supervised release.
Alba was sentenced on June 17, 2016, to 72 months in prison, followed by three years of supervised release.
Mailhot and Ramos are awaiting sentencing.
"The DEA is committed to investigating and bringing to justice those who illicitly distribute oxycodone,” said DEA Special Agent in Charge Michael J. Ferguson. “Opiate abuse is a major problem in New Hampshire and throughout New England. The diversion of prescription pain killers, in this case oxycodone, contributes to the widespread abuse of opiates, is the gateway to heroin and fentanyl addiction, and is devastating our communities. This investigation demonstrates the strength of collaborative law enforcement efforts in the Granite State and our strong partnership with the U.S. Attorney’s Office to aggressively pursue any group or individual that traffics these drugs.”
U.S. Attorney Rice stated, “Many individuals begin their journey to addiction through oxycodone use. While these pills have a legitimate medical use, the illicit distribution of these potentially addictive drugs has been a significant factor in the development of the opioid crisis that is affecting New Hampshire. The U.S. Attorney’s office will continue to work with the law enforcement community to stop the flow of opiates and opioids onto the streets of New Hampshire. We also will aggressively prosecute individuals who possess or use firearms while trafficking in drugs.”
This investigation was the product of an investigation 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. This particular investigation involved cooperative efforts of federal and local law enforcement entities, including the Drug Enforcement Administration, the Manchester Police Department, the New Hampshire State Police, the Massachusetts State Police, and the Hillsborough County Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys John J. Farley and Debra M. Walsh.
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Little Rock Woman Sent to Prison for Role in Scheme to Steal USDA Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced Tuesday that United States District Court Judge J. Leon Holmes sentenced Maria Carmen Nelson, 50, of Little Rock, to prison for her role in a widespread scheme to steal money intended for feeding children in low income areas.
Judge Holmes sentenced Nelson, who pleaded guilty to conspiring to commit wire fraud on August 25, 2016, to 30 months’ imprisonment, to be followed by three years of supervised release. She was also ordered to pay restitution in the amount of $575,917.76.
The United States Department of Agriculture (USDA) feeding programs in Arkansas are administered through the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding programs, and they are reimbursed for the eligible meals they serve.
Nelson is the fifth defendant to be sentenced for her involvement in a scheme to fraudulently obtain USDA program funds intended to feed children in low income areas. Other defendants sentenced include: Kattie Jordan, sentenced to 63 months’ imprisonment on March 15, 2016; Reuben Nims, sentenced to 21 months’ imprisonment on November 2, 2016; Tonique Hatton, sentenced to 108 months’ imprisonment on January 4, 2017; and James Franklin, sentenced to 24 months’ imprisonment on January 10, 2017. Gladys Waits, Christopher Nichols, Waymon Weeams, Francine Leon, Michael Lee, Alexis Young, and Erica Warren have all pleaded guilty to conspiring to defraud USDA feeding programs and are awaiting sentencing. Jacqueline Mills, Dortha Harper, and Anthony Waits are scheduled for trial on March 27, 2017, before United States District Judge James M. Moody, Jr.
Nelson operated as a sponsor for a feeding program through an organization called "Securing Our Future" between approximately March 2012 and March 2015, with approved sites in Little Rock and Malvern, Arkansas. Nelson was recruited to participate by a DHS employee who worked in the section that oversaw the feeding programs. As part of the fraudulent scheme, the number of children who were fed at Nelson’s sites were inflated. Out of the money Nelson received as a result of the inflated claims, Nelson would pay cash back to the DHS employee.
Nelson received a total of approximately $575,917.76 from the feeding program in payment for fraudulent claims. After this money deposited into her account, Nelson withdrew sums of cash and that she paid to the DHS employee. The DHS employee is no longer employed at DHS.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris, Allison W. Bragg, and Cameron McCree.
If you are aware of any fraudulent activity regarding feeding programs, please email that information to [email protected].
Leader of the Simple City Criminal Organization Sentenced to over 10 Years in Federal Prison for a Racketeering Conspiracy and Aggravated Identity TheftRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Jeff Crews, a/k/a “Fro,” age 25, of Washington, D.C., today to 121 months in prison, followed by three years of supervised release, for conspiring to participate in a racketeering conspiracy and for aggravated identity theft, in connection with his activities as the leader of the Simple City Criminal Organization (SCCO). SCCO was a racketeering enterprise engaged in fraud and related activity, including vehicle theft, interstate transportation of stolen property, and aggravated identity theft. Judge Hazel also entered an order requiring Crews to forfeit and pay restitution of $1,250,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation; Chief Hank Stawinski of the Prince George’s County Police Department; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, the SCCO is a criminal organization based in the southeast quadrant of Washington, D.C. in a neighborhood known as “Simple City.” From at least 2009 to July 2015, Crews and his conspirators, including Sylvia Price and Stefon Janey, met on a regular basis, and planned criminal activity, including vehicle theft, the interstate transportation of stolen property, identity theft and credit/debit card fraud. The SCCO received money and income from those criminal activities.
According to his plea agreement, Crews and other SCCO members would steal vehicles in Prince George’s and Montgomery Counties, Maryland, as well as in Washington, D.C. Crews and SCCO members sometimes used the stolen vehicle in a short crime spree during which they committed a string of auto thefts; thefts from autos; and commercial burglaries targeting ATM machines. Once the SCCO had used a stolen vehicle to commit one or more crime sprees, the SCCO would then transport the stolen vehicle across state lines for resale.
Crews and other SCCO members would provide any personal identification information and access devices stolen during the crime spree to another group within the SCCO, which was led by Sylvia Price. Sylvia Price and those under her direction would conduct fraudulent transactions with the stolen identification documents and access devices, in Maryland, Washington, D.C., and Virginia. Price would provide a portion of the fraud proceeds to Crews, for disbursement to the SCCO members who participated in the thefts.
For example, on April 18, 2015, Crews, Janey, and another co-conspirator robbed a BP Gas Station in Beltsville, Maryland. While Crews acted as the getaway driver, Janey and another co-conspirator used a crowbar to forcibly enter the vestibule area, where an employee was working. Janey and the co-conspirator threatened the employee and stole the employee’s cell phone and cash from a cash register. In addition, Janey and the co-conspirator forcibly opened an ATM in the gas station, causing damage to the ATM, and took cash from the ATM. They fled the gas station in a gray Acura MDX that had previously been stolen in Prince George’s County, on March 31, 2015.
At least $550,000, but not more than $1,500,000, was reasonably foreseeable to Crews based on his involvement in the activities of the SCCO.
All fourteen defendants charged in this case have pleaded guilty to their participation in the racketeering conspiracy. Sylvia Price, a/k/a “Deez Nuts,” age 50, of Suitland, Maryland, was sentenced to 75 months in prison, ordered to pay a money judgment of $453,900, and to forfeit 101 high end women’s handbags, 45 debit cards, as well as gift cards, credit cards and gas cards. Stefon Janey, a/k/a “Stef,” and “Stef Luva,” age 23, of Marlow Heights, Maryland, was sentenced to 27 months in prison. Three other defendants have been sentenced to between 27 and 43 months in prison. The nine remaining defendants are scheduled to be sentenced in the next few months.
United States Attorney Rod J. Rosenstein praised the FBI, Prince George’s County Police Department, Montgomery County Police Department and the members of the Washington Area Vehicle Enforcement Unit for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Nicolas A. Mitchell, who are prosecuting the case.
Law Firm Office Manager Charged with Bank FraudRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a charge of bank fraud, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Anthony Calaiaro, age 33, of Pittsburgh, Pennsylvania as the sole defendant.
According to the indictment, from June 2014 through approximately April 2016, Calaiaro, who was employed as an Office Manager for a law firm, wrote checks to himself by forging the signature of a partner from the firm. Calaiaro then cashed the forged checks at various locations and used the funds for his own personal use. The total loss is approximately $827,020.39.
The law provides for a maximum total sentence of 30 years in prison, a fine of up to $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Las Cruces Woman Sentenced to Prison for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Alejandra Gomez, 29, of Las Cruces, N.M., was sentenced today in federal court to 33 months in prison for her conviction on a heroin trafficking charge. Gomez will be on supervised release for three years after completing her prison sentence.
Gomez was arrested in Sept. 2015, on a criminal complaint charging her with distributing heroin in Doña Ana County, N.M. According to the criminal complaint, Gomez sold an aggregate of 241.6 grams of heroin to an undercover law enforcement agent on three occasions in July and Aug. 2015. On Sept. 9, 2015, law enforcement officers executed a federal search warrant on Gomez’s residence where they seized two firearms.
Gomez subsequently was indicted on Dec. 9, 2015, and charged with conspiracy to distribute heroin from July 2, 2015 through Aug. 19, 2015 and distributing heroin on July 2, 2015, July 16, 2015, and Aug. 19, 2015. According to the indictment, Gomez committed the crimes in Doña Ana County.
On July 13, 2016, Gomez pled guilty to a felony information charging her with conspiracy to possess heroin with intent to distribute. In entering the guilty plea, Gomez admitted that she distributed heroin to an undercover DEA agent on the following dates: on July 2, 2015, she distributed 12.9 grams of heroin; on July 16, 2015, she distributed 48.3 grams of heroin; and on Aug. 9, 2015 she distributed 68.5 grams of heroin.
This case was investigated by the Las Cruces office of the DEA. Assistant U.S. Attorney Matthew Beck of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Las Cruces Man Sentenced to 12 Years for Federal Drug Trafficking ConvictionRead the Press Release
ALBUQUERQUE –Luis Cipriano, 43, of Las Cruces, N.M., was sentenced today in federal court to 144 months in prison followed by four years of supervised release for his convictions on cocaine and methamphetamine trafficking charges in two separate cases.
Luis Cipriano and his co-defendants, Christian Cipriano, 23 and Luis Manuel Enriquez-Ramirez, 37, also of Las Cruces, were charged in a two-count indictment, 15-CR-1798, on May 20, 2015, with participating in a methamphetamine trafficking conspiracy and distributing methamphetamine. According to the indictment, the three men conspired to distribute methamphetamine on Aug. 19, 2014, in Doña Ana County, N.M.
In a separate case, Luis Cipriano and co-defendant George Ventura, 47, also of Las Cruces, were charged in a four-count indictment, 15-CR-1799, on May 20, 2015, with participating in a cocaine trafficking conspiracy and distributing cocaine. According to this second indictment, Ventura and Luis Cipriano conspired to distribute cocaine from Aug. 5, 2014 through Nov. 13, 2014 in Doña Ana County. The indictment also charged Luis Cipriano with distributing cocaine on Aug. 5, 2014 and on Oct. 10-11, 2014, and Ventura and Luis Cipriano with distributing cocaine on Sept. 8, 2014.
On Jan. 8, 2016, Luis Cipriano pled guilty to charges in both of the indictments against him. With respect to Indictment 15-CR-1798, Luis Cipriano admitted that on Aug. 19, 2014, he and co-defendant Enriquez-Ramirez negotiated to sell methamphetamine to a person who unbeknownst to Luis Cipriano was working with law enforcement. With respect to Indictment 15-CR-1799, Luis Cipriano admitted that on numerous occasions from Aug. 5, 2014 through Nov. 13, 2014, he conspired with Ventura to distribute cocaine to an undercover agent.
Christian Cipriano also pled guilty to charges in Indictment 15-CR-1798 on Jan. 8, 2016. He admitted that on Aug. 19, 2014, he drove Luis Cipriano to meet with Enriquez-Ramirez to complete a pre-arranged transaction to sell cocaine to a person who unbeknownst to the three co-conspirators was working with law enforcement. Christian Cipriano was sentenced on Aug. 17, 2016, to a year and a day in prison followed by two years of supervised release.
Ventura pled guilty to charges in Indictment 15-CR-1799 on Dec. 15, 2015, and admitted participating in a cocaine distribution conspiracy and to distributing cocaine on Sept. 8, 2014. Ventura was sentenced on March 1, 2016, to 146 days in prison followed by two years of supervised release. Ventura was also ordered to forfeit $7,600.00, which represents the profits he derived from the drug trafficking offenses charged in the indictment.
Enriquez-Ramirez has yet to be arrested and is considered a fugitive. Charges in indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
These cases were investigated by the Las Cruces office of the DEA and are being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
LRGP Member and Associate Sentenced for Their Roles in Murder in Connection with Rico Conspiracy ConvictionRead 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 LRGP Gang Member Fred Keys, 53, of Buffalo, NY, who was convicted of RICO conspiracy and conspiracy to possess with intent to distribute and distribute 28 grams or more of crack cocaine, was sentenced to 360 months in prison, by U.S. District Judge Richard J. Arcara. In addition, LRGP Gang Associate Alexis Mills, 24, also of Buffalo, who was convicted of RICO conspiracy, was sentenced to 222 months in prison.
Assistant U.S. Attorneys Thomas S. Duszkiewicz and Joel L. Violanti, who handled the case, stated that between 2009 and January 23, 2012, Keys was an associate of the LRGP gang, an organization engaged in violent criminal activity, including the distribution of cocaine and crack cocaine and the use of firearms, which operates primarily in the area of Lombard, Rother, Gibson, and Playter Streets in the City of Buffalo.
In April 2011, the defendants and others, while at 318 Sobieski Street in Buffalo, agreed that a member of the Cold Springs Gang, a rival criminal organization, should be murdered in retaliation for killing Alonzo Scott, in March 2011. Scott was the brother of LRGP leader Dewayne Gray. The individuals settled upon killing Amir Chambers, whom they believed to be associated with the Cold Springs Gang, and who had an ongoing social relationship with Alexis Mills.
After a failed attempt by Mills to poison Amir Chambers, it was agreed that Keys would kill Chambers by shooting him. Mills was to use her relationship with Chambers to get the victim to open his residence door. On April 20, 2011, Keys, Mills, and others went to a residence at 111 Mills Street in Buffalo where they dropped off Fred Keys and Alexis Mills. Chambers opened the residence door upon seeing Alexis Mills at which time Keys killed Chambers by shooting him in the head. Mills, for her part, kicked the victim in the head following the shooting to ensure that Chambers was in fact deceased. Keys later called 911 to report that there was a “body” at 111 Mills Street.
A total of 19 LRGP Gang members and associates have been convicted in this case.
The sentencings are the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Office; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Kansas Man Sentenced for Exporting FirearmsRead the Press Release
WASHINGTON – A Kansas man was sentenced today to 52 months in prison for his role in a scheme involving the illegal export of firearms from the United States using a hidden online marketplace, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Tom Beall of the District of Kansas.
Michael Andrew Ryan, aka Brad Jones and GunRunner, 36, of Manhattan, Kansas, previously pleaded guilty to six counts of exporting and attempting to export firearms illegally from the United States to individuals located in other countries on June 6, 2016, and was remanded into custody on Oct. 6, 2016. In addition to imposing today’s prison sentence, U.S. District Judge Daniel D. Crabtree of the District of Kansas ordered Ryan to forfeit all firearms and ammunition seized by law enforcement during the investigation.
In connection with his plea, Ryan admitted that he used the hidden internet marketplace Black Market Reloaded, a website hosted on the Tor network where users can traffic anonymously in illegal drugs and other illegal goods, to unlawfully export or attempt to export firearms from the United States to Cork, Ireland; Mallow, Ireland; Pinner, England; Edinburgh, Scotland; Victoria, Australia. These goods included dozens of firearms, including pistols, revolvers, UZIs and Glocks, some from which the manufacturer’s serial numbers had been removed, altered or obliterated, as well as magazines and hundreds of rounds of ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kansas City Field Division investigated the case with assistance from ATF’s National Investigative Division; U.S. Customs and Border Protection; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Manhattan and Riley County, Kansas, Police Departments. Assistant U.S. Attorney Greg Hough of the District of Kansas and Senior Counsel Marie-Flore Johnson of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Justice Department Reaches Agreement with St. James Parish Louisiana School District to Desegregate SchoolsRead the Press Release
The Department of Justice has reached an agreement with the St. James Parish School District in Louisiana that upon completion will end court supervision of the district’s schools. The consent order, approved yesterday by the U.S. District Court for the Eastern District of Louisiana, addresses all remaining issues in the school desegregation case, and when fully implemented will lead to the closing of that case.
The consent order, negotiated with the school district and private plaintiffs, represented by the NAACP Legal Defense and Educational Fund, puts the district on a path to full unitary status within three years provided it:
- Implements a new student assignment plan that desegregates its three nearly all-black elementary schools to the extent practicable, by revising feeder patterns and creating specialized academic programs that will attract a diverse student body;
- Revises the district’s code of conduct to ensure fairness and consistency in the handling of subjective disciplinary offenses that do not threaten safety, and provides district staff with additional tools to address student misbehavior in nondiscriminatory ways;
- Takes reasonable steps to recruit a diverse pool of applicants for faculty and staff vacancies that arise in the course of implementing the new student assignment plan; and
- Incorporates into its student handbook a statement prohibiting discrimination in extracurricular activities and encouraging participation by students of all races.
The consent order declares that the district has already met its desegregation obligations in the area of transportation. The court will retain jurisdiction over the consent order during its implementation, and the Justice Department will monitor the district’s compliance.
“We are pleased to have worked hand-in-hand with the schools to ensure equal and fair treatment for the students of the St. James Parish School District,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “We look forward to working with the district and private plaintiffs to implement the consent order and bring this case to a successful close.”
Promoting school desegregation and enforcing Title IV of the Civil Rights Act of 1964 is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
St. James Parish Consent OrderJefferson County Man Sentenced for Terroristic Threat in BeaumontRead the Press Release
BEAUMONT, Texas – A 23-year-old Beaumont, Texas man has been sentenced to federal prison for making a terroristic threat in the Eastern District of Texas announced Acting U.S. Attorney Brit Featherston today.
Lance Giovanni Fontenot pleaded guilty on Sep. 15, 2016, to maliciously conveying false information about explosive material and was sentenced to 21 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on June 15, 2016, Fontenot placed a telephone call to the ExxonMobil refinery located at 1795 Burt Street in Beaumont, Texas and claimed that explosive devices were set to detonate at packages placed around the exterior of the facility at a specific time that day. In the call, Fontenot stated that a specific employee working at the plant had worked with a family member to place the explosives around the property, and Fontenot told the employee of the plant who answered the call that the employee responsible had ties to a terrorist organization identified by Fontenot as "ISIS."
Law enforcement agencies immediately responded to the scene, and once the threat was identified as false, began to focus on identifying the caller who made the threat. Within hours, investigators identified Fontenot, who had recently been in a romantic relationship with the employee that the defendant claimed was responsible for placing the explosives around the plant. Investigators then placed a call to the number used to phone in the threat, and Fontenot answered and identified himself at that number. Later that same day, Fontenot admitted to knowingly lying about the threat of explosives and was aware that his actions would disrupt the operations of a plan with an interstate pipeline that would result in a significant financial loss to the company. Fontenot stated the purpose for the threat was to retaliate at the named employee for discontinuing their romantic relationship. Fontenot also admitted to lying about the employee having any known connection with a terrorist organization.
Fontenot was also ordered to pay restitution to ExxonMobil in the amount of $372,691.79, which was the cost to the refinery for shutting down the pipeline.
This case was investigated by the Joint Terrorism Task Force including agents with the Federal Bureau of Investigation, the Beaumont Police Department, Homeland Security Investigations, Bureau of Alcohol Tobacco and Firearms, the Jefferson County Sheriff’s Office, the U.S. Coast Guard Investigative Services, and the Port Arthur Police Department. This case was prosecuted by Assistant U.S. Attorney Lesley Woods.
James City County Man Pleads Guilty to Child Pornography ChargeRead the Press Release
NEWPORT NEWS, Va. – Charles K. Young, 69, of James City County, pleaded guilty today to receipt of child pornography.
According to the statement of facts filed with the plea agreement, in August 2016, a family member of Young’s called the James City County Police to report that Young was in possession of child pornography. The family member provided enough information to allow police to obtain a search warrant for Young’s home. Upon execution of the search warrant, detectives seized a number of electronic devices and ultimately a forensic examiner found more than 22,000 images of child pornography. Young also admitted to receiving a movie containing images of minor males engaged in sexually explicit activity.
Young was indicted by a federal grand jury on Nov. 15, 2016. Young faces a minimum five years in prison and a maximum penalty of 20 years in prison when sentenced on May 17. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Lisa R. McKeel is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-78.
Jamaican Man Sentenced to 41 Months for Lottery ScamRead the Press Release
ALBANY, NEW YORK – Jeragh Powell, age 26, a citizen of Jamaica and former resident of Schenectady, New York, was sentenced today by U.S. District Judge Mae A. D’Agostino to serve 41 months in prison for his participation in a Jamaica-based lottery scam that targeted elderly victims.
The announcement was made by United States Attorney Richard S. Hartunian and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division.
As part of his August 1, 2016 guilty plea, Powell admitted to working with his wife Kimberly Powell, a co-defendant, and others, to mail false lottery prize notifications to mostly elderly people located throughout the United States. The fraudulent prize notifications letters congratulated the victims on winning a recent drawing and instructed them to pay tens of thousands of dollars in “fees and taxes” and “shipping and handling” in order to receive their purported prize money and cars. Members of the conspiracy located in Jamaica also communicated with the victims by telephone, directing them to make payments to people in the United States.
Jeragh Powell and his wife Kimberly, age 37, of Schenectady, received more than $65,000 from victims of the scheme, and forwarded a large portion of the proceeds to Jeragh Powell’s associates in Jamaica. Kimberly Powell pled guilty to mail fraud charges on August 3, 2016, and is scheduled to be sentenced on February 23, 2017.
This case was investigated by the USPIS, Homeland Security Investigations (HSI), and the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Inmate Indicted for Assaulting Corrections OfficerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dahveed Dean, age 40, an inmate at United States Penitentiary Canaan, Waymart, Pennsylvania, was indicted today by a federal grand jury on a charge of assaulting a federal employee.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Dean punched a corrections officer in the face during an altercation at the prison in September. The officer suffered minor injuries.
The case was investigated by the Federal Bureau of Investigation and officers at USP Canaan. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hunting Guide from Elk County Charged with Lacy Act ViolationsRead the Press Release
WICHITA, KAN. – A Kansas hunting guide was indicted Tuesday on charges of violating the Lacy Act and the federal Migratory Bird Treaty Act, U.S. Attorney Tom Beall said. Two of the guide’s employees and a hunter from Georgia also were charged.
The 21-count indictment alleges violations including exceeding daily bag limits, killing waterfowl over bait, killing hawks, using electronic bird calls and possessing untagged birds.
The Migratory Bird Treaty Act makes it a federal crime to kill migratory birds except with a permit and in compliance with state hunting regulations. The Lacy Act makes it unlawful to sell or transport wildlife taken in violation of state hunting regulations.
Named in the indictment are:
Josh Hedges, 34, Grenola, Kan., owner of Eagle Head Outfitters, one count of conspiracy to violate the Lacy Act and 12 counts of unlawful sale and transport of wildlife.
Jerad Stroot, 25, Colwich, Kan., employee of Eagle Head Outfitters, six counts of unlawful sale or transport of wildlife.
Allen Stroot, 32, Park City, Kan., employ of Eagle Head Outfitters, one count of violating the Migratory Bird Act.
Steve Seagraves, 61, Douglasville, Ga., a customer of Eagle Head Outfitters, one count of violating the Migratory Bird Act.
Upon conviction, counts 1 through 8, 12 through 16, 18 and 19 carry a penalty of up to five years in federal prison and a fine up to $250,000 (see attached indictment). The other counts carry a penalty of up to six months and a fine up to $5,000. The U.S. Fish and Wildlife Service and the Kansas Department of Wildlife, Parks and Tourism investigated.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Hartford Cocaine Trafficker Sentenced to 5 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that TODD VERNON, 42, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 60 months of imprisonment, followed by five years of supervised release, for trafficking cocaine. VERNON also was ordered to pay a $50,000 fine.
According to court documents and statements made in court, Raul Chavez headed a cocaine trafficking operation that smuggled cocaine from Mexico into El Paso, Texas, and then transported the drug to Connecticut and elsewhere. The investigation revealed that the Chavez organization had been supplying multiple kilograms of cocaine to VERNON since approximately 2004, and Tyshawn Welborn, of Bloomfield, since approximately 2010. The shipments, which would typically be in the range of 30 to 40 kilograms, were sent regularly from El Paso multiple times per year. VERNON and Welborn distributed the drug through a network of individuals.
In 2014, the Chavez organization attempted to find an additional source of supply for its Hartford area cocaine customers. In July 2014, a DEA confidential source met Andrew Duron, also known as “Chavo,” in North Carolina. During the meeting, Duron told the confidential source that he wanted to purchase up to 50 kilograms of cocaine for $28,000 per kilogram. On August 14, 2014, Duron, the confidential source and an undercover DEA agent met in New Jersey where Duron agreed to purchase 25 kilograms of cocaine. In subsequent conversations with the confidential source, Duron stated that he wanted an extra $1000 per kilogram as a side deal. They agreed on a total price of $725,000 for 25 kilograms of cocaine.
The investigation revealed that this cocaine shipment was destined for both VERNON, who had prepaid for approximately 13 kilograms of cocaine, and Welborn.
On August 23, 2014, Duron met the undercover DEA agent at a location in Wethersfield. Duron told the undercover agent that his associates were in Connecticut and that Duron and the undercover agent would need to travel to a store parking lot near Bradley International Airport to verify that the money was in place. Duron and the undercover agent then drove in separate vehicles to a store parking lot on Kennedy Road in Windsor. Duron met with Raul Chavez and another associate in the store. A short time later, a third associate arrived in a Jeep Wrangler, met the undercover agent in the parking lot, showed him a duffel bag and said it contained “half” of the money. Shortly thereafter, investigators arrived at the scene and arrested Duron, Raul Chavez and his associates.
Investigators also recovered from the Jeep a duffel bag containing approximately $284,000 in cash, and a loaded .38 caliber revolver. The cash had been picked up from Welborn earlier that day.
After word reached Raul Chavez’s son, Christopher Chavez, that his father and others had been arrested, Christopher Chavez coordinated the diversion of a shipment of 34 kilograms of cocaine, which was en route to Connecticut, to a high-level drug distributor in Cleveland, Ohio.
VERNON was arrested on August 26, 2015. On September 7, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
VERNON, a citizen of Canada, faces deportation proceedings when he is released from prison.
Raul Chavez, Christopher Chavez, Duron and Welborn also pleaded guilty. On September 22, 2015, Duron, of El Paso, was sentenced to 84 months of imprisonment; on October 7, 2016, Christopher Chavez, of El Paso, was sentenced to 60 months of imprisonment; on December 21, 2016, Welborn, also known as “Black,” was sentenced to 84 months of imprisonment and a $200,000 fine, and on January 11, 2017, Raul Chavez was sentenced to 144 months of imprisonment and a $250,000 fine.
This investigation has been conducted by the Drug Enforcement Administration’s Hartford Task Force, including personnel from the DEA Hartford Resident Office and the Bristol, Hartford, Manchester, New Britain, Newington, and Wethersfield Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and Amy C. Brown.
Guilty Plea in Case Involving Illegal Importation of Chinese CigarettesRead the Press Release
LOS ANGELES – A Los Angeles man has pleaded guilty to illegally engaging in the business of importing tobacco products.
Zhi Xiong Chen, 56, of Chinatown, pleaded guilty yesterday to the felony offense and admitted that for nearly five years, despite not holding a permit to import tobacco products, he used several addresses to receive 15,128 cartons of Chinese-brand cigarettes. During this time, U.S. Customs and Border Protection officers also stopped approximately 9,824 cartons of Chinese-brand cigarettes at international mail facilities in California and New York.
As part of the scheme, Chen admitted that he attempted to evade paying more than $467,000 in federal and state excise taxes on the cigarettes that he illegally imported.
“From early 2011 until mid-2016, this defendant illegally imported thousands of cartons of Chinese-made cigarettes without the necessary permits and without paying excise taxes,” said United States Attorney Eileen M. Decker. “The defendant’s crime not only cheated taxpayers, but also caused unregulated, potentially dangerous products to be sold to an unsuspecting public.”
“While Zhi Xiong Chen was illegally importing tens of thousands of cartons of cigarettes into the United States, he was also evading hundreds of thousands of dollars in taxes due on those cigarettes,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Importers who obtain the required permits and pay their fair share of taxes deserve to compete on a level playing field. Those who try to cut corners and skirt these legal obligations should know that they will be investigated and prosecuted.”
Chen pleaded guilty before United States District Judge George H. Wu, who is scheduled to sentence the defendant on April 17, at which time he will face a statutory maximum penalty of five years in federal prison.
This case is being investigated by the Alcohol and Tobacco Tax and Trade Bureau, the U.S. Food and Drug Administration’s Criminal Investigations, and IRS Criminal Investigation.
The case is being prosecuted by Assistant United States Attorney Valerie L. Makarewicz of the Tax Division and Trial Attorney Christopher S. Strauss of the Justice Department’s Tax Division.
Georgia Tax Return Preparer Sentenced to Prison for Filing Fraudulent ReturnsRead the Press Release
An Atlanta, Georgia based tax return preparer was sentenced to 150 months in prison today for filing tax returns fraudulently claiming more than $20 million in refunds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John A. Horn for the Northern District of Georgia.
According to documents filed with the court, Cheryl Singleton, 29, owned and operated Advanced Tax Services, a tax preparation business with multiple locations throughout the Atlanta area. Singleton hired and trained employees to prepare fraudulent tax returns and encouraged them to manipulate the numbers to maximize their clients’ refunds. From 2011 through 2016, Singleton and her employees included false dependents and fraudulent Schedule C businesses on their clients’ returns in order to inflate their refunds.
Singleton and her employees also manipulated other individuals into providing their personal identification information by telling them they could qualify for an “Obama Stimulus” payment. and others used these individuals’ personal identification information to file fraudulent income tax returns in their names, without their knowledge or consent. In addition, attempted to defraud USAA, a financial institution serving military members and their families, out of more than $421,000 in fraudulent loans and lines of credit. used stolen and fake identities to try and open accounts, obtain credit cards and obtain loans from USAA.
Singleton previously pleaded guilty on Aug. 2, 2016 to wire fraud. In addition to the prison term imposed, Singleton was ordered to serve three years of supervised release and to pay $5,100,129.41 in restitution, including $4,944,524 to the Internal Revenue Service (IRS) and $105,597 in restitution to USAA.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Horn commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorney Melanie Smith of the Tax Division and Assistant U.S. Attorney Samir Kaushal of the Northern District of Georgia, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Garden City Man Indicted for Illegal Firearm, ExplosivesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Garden City, Mo., man was indicted by a federal grand jury today for illegally possessing a firearm and two pipe bombs.
Caleb M. Ayers, 29, of Garden City, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Ayers, a convicted felon, was in possession of a firearm and explosives on May 14, 2016. Ayers allegedly possessed a Smith and Wesson .45-caliber semi-automatic handgun and two pipe bombs.
One of the pipe bombs is described in the indictment as an approximately 12-gram carbon dioxide cartridge filled with a quantity of explosive powder, with a functional green pyrotechnic fuse protruding from its opening and Zinc-coated steel balls (measuring approximately 0.174 inches in diameter) glued to the cartridge with yellow epoxy-type adhesive. The second pipe bomb is described in the indictment as a length of white PVC pipe, approximately 3/4 of inch in diameter, sealed with white PVC end caps attached at each end. The PVC pipe contained a quantity of explosive powder and there was lead shot of at least two sizes, No. 8 and No. 9, glued to the exterior of the pipe with a yellow adhesive.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or explosives. Ayers has prior felony convictions for possessing methamphetamine and resisting arrest.
Ayers is also charged with one count of possessing unregistered destructive devices.
Ayers was originally arrested when law enforcement officers responded to a report of a suspicious vehicle in the parking lot of Hawthorne Bank in Drexel, Mo. When officers arrived, Ayers was sleeping in the driver’s seat of a GMC utility truck, which was running. The loaded pistol was lying on top of the center console. After Ayers was awakened, an officer searched the vehicle and found the explosive devices in a plastic box in the rear seat.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cass County, Mo., Sheriff’s Department.
Former Tennessee Sheriff Pleads Guilty to Federal Corruption ChargesRead the Press Release
Former Chief Administrative Deputy and Sheriff’s Uncle Also Plead Guilty
A former Rutherford County Sheriff, his former Chief Administrative Deputy, and his uncle have pleaded guilty for operating a private electronic cigarette company in the county jail for personal gain and the concealment and misrepresentation of their involvement with the business, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Robert F. Arnold, 40, former Sheriff of Rutherford County, Tennessee, and his former Chief Administrative Deputy Joe L. Russell II, 50, also of Rutherford County, pleaded guilty to wire fraud, honest services fraud and extortion under color of official right on Jan. 18 and 20, respectively. Arnold’s uncle, John Vanderveer, 59, of Marietta, Georgia, pleaded guilty to attempted witness tampering on Jan. 30. The pleas were entered before Chief U.S. District Judge Kevin H. Sharp of the Middle District of Tennessee. Arnold is scheduled to be sentenced by Chief Judge Sharp on May 8, and Vanderveer and Russell are scheduled to be sentenced on May 12 and May 19, respectively. All three were indicted in May 2016 for their roles in the formation and operation of the electronic cigarette company, JailCigs LLC.
In connection with their pleas, Arnold and Russell admitted to forming JailCigs with Vanderveer in 2013; using Arnold’s official position as Sheriff of Rutherford County to benefit JailCigs by allowing the company’s electronic cigarettes to come into the Rutherford County jail as non-contraband and be distributed by county employees; taking steps to disguise their involvement in the company; and misrepresenting the benefits that Rutherford County was supposedly receiving from JailCigs.
Additionally, Arnold admitted that he personally received over $66,000 from JailCigs; and admitted that he lied about his income from, and knowledge of, the company when he was confronted by local media in April 2015. Russell admitted receiving over $52,000 in payments from JailCigs. Vanderveer, a private citizen and Arnold’s uncle, admitted to telling the company’s Tennessee sales representative to destroy her commission sheets so the company could provide fraudulent versions that would show the payments going to her, rather than Arnold. Under the terms of the plea agreement, each defendant agreed to pay restitution to Rutherford County in the amount of $52,500.The FBI and the Tennessee Bureau of Investigation investigated the case. Trial Attorney Mark Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cecil W. VanDevender of the Middle District of Tennessee are prosecuting the case.
Former Orange County Detective Sentenced in HUD Fraud SchemeRead the Press Release
BEAUMONT, Texas – A 47-year-old former Orange County Sheriff’s Detective has been sentenced to federal prison for violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Chad Wayne Hogan, of Orange, Texas, pleaded guilty on Sep. 6, 2016, to money laundering and was sentenced to one year and one day in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, from March 2009 to August 2015, Hogan, while employed as a detective with the Orange County Sheriff’s Office, deposited approximately 4,302 checks into a bank account at MCT Credit Union titled “Starcomm Wireless,” all of which represented proceeds from unlawful activity. Starcomm Wireless was a business once owned and operated by Hogan, but closed prior to 2009. Hogan, however, kept the Starcomm Wireless bank account open and active after the business ceased operation.
The checks were written on bank accounts held by Beverly Place apartments, Cedarwood apartments, and Villa Main apartments, all in the Port Arthur/Groves, Texas area and ranged in amount from $2 to $277, totaling $187,706. Employees of the apartment complexes would meet with Hogan, give him the checks, which he would deposit in his account. Hogan would then give approximately 2/3 of the money back to the employees, keeping the remaining 1/3 for himself. The checks Hogan received from the employees were payable to tenants of the complexes and were written under the Housing and Urban Development’s (HUD’s) utility assistance program. The HUD utility assistance program provides qualifying persons a monthly check to help offset their utility costs. However, many of the tenants at Beverly Place, Cedarwood, and Villa Main were not aware they were receiving these benefits. On-site managers at the complexes engaged in a scheme to fraudulently sign tenants up for HUD benefits without the tenants’ knowledge, and then take then use the money provided by HUD for themselves. Hogan was aware that the checks he was depositing represented the proceeds of some form of unlawful activity, and did so to disguise the nature of the funds. Hogan was also ordered to pay restitution in the amount of $187,706, as this was his portion of the scheme.
This case was investigated by the U.S. Housing and Urban Development – Office of Inspector General and Homeland Security Investigations. This case was prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Former Linndale police officer sentenced to more than three years in prison for drug crimesRead the Press Release
A former part-time Linndale police officer was sentenced more than three years in prison for transporting large amounts of MDMA and marijuana, law enforcement officials said.
Jonida Alicka, 29, of Rocky River, was sentenced to 41 months in prison by U.S. District Judge Dan Aaron Polster. She was also ordered to forfeit two firearms and cash seized during her arrest last year.
Alicka was previously found guilty of possession with intent to distribute MDMA and marijuana.
Alicka and her sister Denisa Alicka engaged in multiple sales of MDMA and marijuana between 2014 and 2016. The Alickas obtained the drugs through Rinald Turhani and Leka Konini, both from Michigan, according to court documents.
Jonida Alicka also obtained MDMA from her boyfriend who in Canada. She also traveled to New York to pick up MDMA and transport it back to Ohio and then distributed the narcotics throughout Ohio, according to court documents.
Turhani was found guilty of drug charges and is serving nine years in prison. Konini and Denisa Alicka have been found guilty of charges and are awaiting sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Marisa T. Darden and Robert F. Corts following an investigation by the FBI, Cleveland Division of Police, Ohio HIDTA, Rocky River Police, Parma Police and U.S. Border Patrol.
Former Groves Apartment Manager Sentenced for Theft from HUDRead the Press Release
BEAUMONT, Texas – A 44-year-old Houston woman has been sentenced for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston.
Nhung Tuyet Nguyen, also known as Sandy Nguyen, pleaded guilty on July 26, 2016, to theft of government property and was sentenced to 22months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, from October 2007 to December 2015, Nguyen was employed by the Beverly Place Apartments in Groves, Texas as an assistant Manager. As part of her job responsibilities, Nguyen assisted potential tenants in applying for U.S. housing and Urban Development (HUD) benefits for rental assistance and utility assistance. The rental and utility assistance programs are designed to help low-income individuals offset housing rental and utility costs with funds provided by HUD. In June 2007, Nguyen began applying for HUD rental assistance and utility assistance benefits without the tenants’ knowledge or consent. As a result, HUD provided funds to Beverly Place Apartments to cover tenants’ monthly rental fees. Nguyen required tenants, who were unaware HUD had already paid their monthly rent, to pay full market price for their apartments in cash or money orders. Nguyen would then take the cash or money orders and use them for her personal benefit. Nguyen enrolled at least five tenants in HUD rental and utility assistance programs without their knowledge. As a result, Nguyen caused a total loss to HUD of $393,583.00 and was ordered to pay that amount in restitution to the agency.
This case was investigated by the U.S. Housing and Urban Development – Office of Inspector General and Homeland Security Investigations. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Former FBI Employee Pleads Guilty to Theft of Government PropertyRead the Press Release
Greenbelt, Maryland – Timothy Carl Johnson, age 52, of Fort Washington, Maryland, pleaded guilty on January 30, 2017, to theft of government property. Johnson, the former automotive fleet program coordinator for FBI Headquarters in Washington, D.C., admitted he falsely reported the cost of automotive and/or towing services, charging the inflated or fictional costs to his government purchase card, and accepted cash payments from vendors to perform work on FBI vehicles.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Michael Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General; and Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division.
According to his plea agreement, Johnson was responsible for maintaining government vehicles for use by employees at FBI Headquarters. As part of his duties, Johnson solicited local vendors to perform routine maintenance, tow, repair and detail work for government vehicles at FBI headquarters. The FBI assigned Johnson a government purchase card that he was authorized to use to pay for work on those vehicles.
Johnson admitted that from 2011 through January 2016, he conspired with others to defraud the government by charging inflated or fictional costs for automotive and/or towing services to his government purchase card. Specifically, co-conspirators who supplied automotive and/or towing services billed the government for fictitious services, or inflated their bills. Johnson then authorized payment to the co-conspirators through his government credit card and the co-conspirators provided the fraud proceeds to Johnson in cash. As part of his plea agreement, Johnson will be required to pay restitution in the full amount of the loss, which is at least $20,995.
Johnson faces a maximum sentence of 10 years in prison. U.S. District Judge Theodore D. Chuang has scheduled sentencing for June 6, 2017 at 2:30 p.m.
United States Attorney Rod J. Rosenstein commended the DOJ Office of the Inspector General, and DEA for their work in the investigation and thanked the FBI, Charles County Sheriff’s Office and Prince George’s County Police Department for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Lindsay Eyler Kaplan, who is prosecuting the case.
Former CWA Local President Pleads Guilty to Embezzlement and Bank FraudRead the Press Release
BIRMINGHAM – A former president of the Communications Workers of America, Local 3901, in Oxford, Ala., pleaded guilty today in federal court to a scheme to embezzle more than $69,000 from the local chapter, announced Acting U.S. Attorney Robert O. Posey and U.S. Department of Labor, Office of Labor-Management Standards, Investigator Hollis Lindley Jr.
MICHAEL LACKEY, 44, of Bremen, Ga., entered his guilty plea to five counts of bank fraud and one count of embezzlement and theft of union funds before U.S. District Judge Virginia Emerson Hopkins. A federal grand jury indicted Lackey in November. As part of his plea, Lackey agreed to repay $69,193 to the union and to forfeit that same amount to the government as proceeds of illegal activity. Lackey is scheduled for sentencing April 25.
Local 3901 members elected Lackey president in October 2008 and he remained in that position until October 2014. As president, Lackey exercised control over the local’s finances, including its accounts at Wells Fargo and Regions banks.
According to his plea agreement with the government, Lackey executed a scheme to defraud the banks and Local 3901 between February 2010 and October 2014 by using his position as Local 3901 president, and acting treasurer, to conduct unauthorized transactions to take money from the CWA local’s bank accounts and use it for his personal benefit. Those transactions included writing checks to himself from Local 3901 accounts for unauthorized or nonexistent travel expenses, using debit cards he obtained on accounts for the local at both Regions and Wells Fargo for personal expenses, and making cash withdrawals from Local 3901 accounts at both banks for his personal use.
The checks he wrote to himself from union funds totaled about $26,519; the cash withdrawals and personal expenditures he made with the union’s debit cards totaled about $14,095; counter cash withdrawals totaled about $16,032; personal power bill payments totaled about $3,092; personal loan payments totaled about $7,201; and accumulated bank fees totaled about $2,251, for a total embezzlement of $69,193, according to the plea agreement.
Lackey attempted to conceal his theft by failing to maintain records of his unauthorized transactions and by failing to seek approval for expenditures, as required by federal law and the Local 3901 constitution and bylaws.
Local 3901 members began to suspect in summer 2014 that Lackey had stolen money from the union when a union check bounced. About the same time, Lackey told a national CWA AFL-CIO representative that he had taken out a personal loan using the union’s bank accounts and assets as collateral, and had failed to make the loan payments, leading the bank to collect from the union’s finances, according to the plea agreement.
The maximum penalty for bank fraud is 30 years in prison and a $250,000 fine. The maximum penalty for embezzlement is five years in prison and a $10,000 fine.
The U.S. Department of Labor, Office of Labor-Management Standards, investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. is prosecuting.
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Florida Man Convicted at Trial of Attempting to Use a Weapon of Mass Destruction and Providing Material Support to ISILRead the Press Release
Harlem Suarez, a/k/a “Almlak Benitez,” 23, of Monroe County, Florida was convicted by a federal jury of attempting to use a weapon of mass destruction, specifically, an explosive device, and providing material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and members of the South Florida FBI-Joint Terrorism Task Force (JTTF).
“Harlem Suarez, a self-professed ISIL adherent, attempted to use a weapon of mass destruction - a backpack bomb - in the United States and now stands convicted of two terrorism offenses,” said Acting Assistant Attorney General McCord. “Stopping attacks on our homeland by those inspired or directed by designated foreign terrorist organizations is the highest priority of the National Security Division. I want to thank the agents, analysts, and prosecutors who are responsible for today’s result.”
“By intending to place an explosive device on a public beach, Harlem Suarez posed a grave threat to the residents and visitors of Key West,” stated U.S. Attorney Ferrer. “It is because of the Joint Terrorism Task Force’s unwavering commitment to our national security that law enforcement is able to prevent potential attacks on American soil that are inspired or directed by terrorist organizations. Let this case serve as an example to others that the U.S. Attorney’s Office and our law enforcement partners stand as a united front against all domestic threats.”
"Suarez wanted to kill innocent people by detonating a nail laced explosive filled backpack on a crowded Key West beach," said Special Agent in Charge Piro. “He was denied his terroristic dreams by several hardworking, dedicated law enforcement organizations and professionals. This is a job well done."
Suarez was convicted at trial of knowingly attempting to use a weapon of mass destruction against a person or property within the U.S., in violation of Title 18, U.S. Code, Section 2332a(a)(2) and providing material support to a terrorist organization, in violation of Title 18, U.S. Code, Section 2339B. Suarez is scheduled to be sentenced by U.S. District Judge Jose E. Martinez in Key West, Florida, on April 18 at 1:30 p.m.
According to evidence introduced at trial, in April 2015, Suarez’s Facebook postings contained extremist rhetoric and promoted ISIL. Evidence further indicated that Suarez told an FBI confidential human source that he wanted to make a “timer bomb.” Suarez purchased components for this device, which was to contain galvanized nails, be concealed in a backpack and be remotely detonated by a cellular telephone. Suarez intended to bury the device at a public beach in Key West and then detonate it.
Trial evidence showed that on July 27, 2015, Suarez took possession of an inert explosive device and was arrested.
Mr. Ferrer commended the investigative efforts of the FBI; FBI-JTTF; Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; the Key West Police Department; Monroe County Sheriff’s Office in Florida; and Palm Beach County Sheriff’s Office in Florida.
This case is being prosecuted by Assistant U.S. Attorneys Marc S. Anton and Karen E. Gilbert, with assistance from the National Security Division’s Counterterrorism Section.
Fayetteville, N.C. Man Sentenced to 8 Years for Failure to Register as A Sex Offender While Committing A Crime of ViolenceRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, Chief United States District Judge James C. Dever, sentenced SHELBY SHERROD PETTIES, 33, of Fayetteville, North Carolina, to 92 months imprisonment followed by 10 years of supervised release.
PETTIES was named in a 3-count Indictment filed on January 7, 2015. On September 12, 2016, he pled guilty to one count of Failure to Register as a Sex Offender While Committing a Crime of Violence.
On October 31, 2005, PETTIES was convicted of Second Degree Child Sex Abuse in the Superior Court of the District of Columbia. This conviction required him to register as a sex offender in the District of Columbia and to notify the District of Columbia Sex Offender Registry (DCSOR) of any address change within three days.
On February 18, 2013, PETTIES was arrested in Fayetteville, on the felonious charges of First Degree Kidnapping and Second Degree Rape, which occurred on February 6, 2013. At the time of his arrest, PETTIES provided a statement admitting that he moved to Fayetteville on August 2, 2012, and that he did not register as a sex offender with the Cumberland County Sheriff’s Office as required. According to the Sex Offender Registration Information Acknowledgement form signed by the defendant, PETTIES was required to notify the DCSOR and the Cumberland County Sheriff’s Office of his departure from the District of Columbia and his arrival in Fayetteville. Therefore, PETTIES committed the crimes of violence of First Degree Kidnapping and Second Degree Rape while in violation of the sex offender registration requirements.
PETTIES received an upward variance due to the additional crimes he committed on February 9, 2013, while in violation status of the sex offender registration requirements, PETTIES kidnapped and assaulted a female victim in his apartment in Fayetteville, North Carolina.
The criminal investigation of this case was conducted by the Fayetteville Police Department, Cumberland County Sheriff’s Office and the United States Marshal Service. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Elkins man convicted for methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – David Maxwell, 31, of Elkins, West Virginia pled guilty to methamphetamine distribution today, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Maxwell pled guilty to one count of “Distribution of Methamphetamine.” He faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Eight people sentenced to prison for penny-stock fraud that resulted in $39 million loss to investorsRead the Press Release
Eight people were sentenced to prison this month for their roles in a penny-stock fraud that resulted in a $39 million loss to investors, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Zirk de Maison, of Redlands, California, was sentenced to more than 12 years in prison and ordered to pay $39.1 million in restitution.
Stephen Wilshinsky, of Woodland Hills, California, was sentenced to nearly three years in prison and $4.2 million in restitution.
Talman Harris, of Monroe, Connecticut, after a jury convicted him on all counts following a three-week trial, was sentenced to more than five years in prison and $843,423 in restitution.
Gregory Goldstein, of Stevenson Ranch, California, was sentenced to nearly three years in prison and $6.3 million in restitution.
Jack Tagliafero, of Glen Cove, New York, was sentenced to more than five years in prison and more than $5 million in restitution.
Victor Alfaya, of Port Washington, New York, was sentenced to nearly two years in prison and $3.6 million in restitution.
Kieran Kuhn, of Port Washington, New York, was sentenced to nearly four years in prison and $5.6 million in restitution.
William Scholander, of Queens, New York, was sentenced to nearly two years in prison and $843,423 in restitution.
Two additional co-conspirators have their sentencings scheduled for February and July 2017.
de Maison and the other defendants conspired to defraud investors and potential investors in several public issuers, including Kensington Leasing, Ltd., Lenco Mobile, Casablanca Mining, Ltd., Lustros, Inc., and Gepco Ltd., (the manipulated companies), by issuing millions of shares to themselves at little or no cost and then artificially controlling the price and volume of traded shares by, among other means, paying undisclosed commissions to brokers, former brokers, and boiler-room operators and promoters, for soliciting investors to make investments in, and fraudulently concealing the ownership interests of, the manipulated companies, according to court documents.
Little or no portion of the investments went to fund the operations of the manipulated companies. Rather, de Maison and the co-conspirators used most of the investments to enrich themselves, according to court documents.
For each of the manipulated companies, de Maison and other co-conspirators controlled a substantial number of outstanding shares through their personal companies, co-conspirators, and associates over which they had influence and control.
Many of the defendants were brokers and former brokers who abused their client relationships to solicit and induce investors to purchase de Maison’s stock in the manipulated companies at what they knew to be artificially inflated values. In exchange, de Maison paid the brokers and former brokers enormous, illegal kickbacks, often as large as 50% of the investment, which were never disclosed to the client-investors.
Other defendants either owned or worked in what were commonly referred to as boiler rooms. For instance, Kuhn owned and operated a boiler room called Small Cap Resources in New York City, where he employed promoters to cold call and solicit potential investors to purchase shares of the manipulated companies. de Maison and others dictated what stocks Kuhn and others pushed. The cold calls to potential investors typically coincided with favorable press releases or other information that de Maison caused to be released, according to court documents.
Kuhn and others touted the manipulated companies using high-pressure sales tactics and misrepresentations about the value of the companies and their stock. The boiler room promoters did not disclose that de Maison and other co-conspirators paid them commissions on the sale of the stock to the investors, either on the open market or through private placements, according to court documents.
de Maison and his co-conspirators caused more than $54 million to be invested in the purchase of stock in the manipulated companies and caused a loss to investors in the amount of approximately $39 million from the scheme. de Maison profited through the fraudulent scheme relating to the companies’ stocks. He received and embezzled approximately $39 million in investor monies, according to court documents.
The case was prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, Paul M. Flannery, and Adam Hollingsworth after an investigation by agents of the Federal Bureau of Investigation.
Eagle Butte Woman Charged with Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Rheta Haskell, a/k/a Rheta Miner, age 37, was indicted on January 19, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 30, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 8, 2016, Haskell unlawfully assaulted a female who suffered serious bodily injury.
The charges are merely accusations and Haskell is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Haskell was released on bond pending trial, which has been set for April 4, 2017.
Dover Man Pleads Guilty to Migratory Bird Possession ChargeRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice, announced that Jeremiah S. Loui pleaded guilty in federal court to a misdemeanor charge of illegally possessing and selling a bird of prey protected by the Migratory Bird Treaty Act. Loui, thirty-one years old, lives in Dover, N.H.
According to court documents and statements made during today’s hearing, Loui sold a taxidermied Accipiter gentilis, commonly known as a Northern Goshawk, on the internet. He also sold or possessed fourteen other taxidermied birds of prey protected under either the MBTA or a similar wildlife statute, the Wild Bird Conservation Act. Loui made false statements to a law enforcement officer investigating his offenses.
Birds of prey, including the Northern Goshawk, play an important role in ecosystems here in the United States and across the globe. "This investigation demonstrates the commitment of the U.S. Fish and Wildlife Service to combat illegal wildlife trafficking and bring to justice those who exploit protected resources for personal gain” said Honora Gordon, Special Agent in Charge with the U.S. Fish and Wildlife Service.
United States Magistrate Judge Andrea K. Johnstone accepted Loui’s guilty plea and scheduled his sentencing for May 9, 2017. He is subject to a statutory maximum sentence of six months’ imprisonment, a fine of up to $15,000 or both. As part of his plea agreement, Loui agreed to forfeit any interest he has in any of the fifteen protected birds.
This matter was investigated by the U.S. Fish and Wildlife Service with valuable support from the U.S. Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Bill Morse.
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Devils Lake Man Sentenced for Child PornographyRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on Jan. 30, 2017, Michael Erik Lindseth, 44, Devils Lake, ND, was sentenced before US District Judge Ralph R. Erickson to serve 10 years and 3 months in prison, followed by 5 years of supervised release for Receipt and Possession of Child Pornography. Judge Erickson also ordered Lindseth to pay a $500 special assessment to the Crime Victims’ Fund, as well as $1,000 in restitution to a victim depicted in the child pornography possessed by Lindseth.
This case came to the attention of law enforcement after it discovered that Lindseth was utilizing a sophisticated network of computers to anonymize his internet protocol (IP) address while trading child pornography at his residence in Devils Lake. Based upon this information, law enforcement executed a search warrant at his residence on December 22, 2014, during which time they recovered numerous electronic storage devices. A forensic examination of this media revealed more than 19,000 files of child pornography.
A Federal Grand Jury later charged Lindseth with various child pornography charges and he was released pending trial. On October 17, 2015, Lindseth removed his electronic home monitoring bracelet and left the state of North Dakota. Five months later, in March 2016, Lindseth was arrested in Tempe, Arizona, following a traffic stop of his vehicle.
This case was investigated by the Department of Homeland Security – Homeland Security Investigations and the North Dakota Bureau of Criminal Investigation.
Assistant US Attorney Jennifer Puhl prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Cupertino Couple Sentenced to More Than Five Years in Prison for Wire Fraud, Identity TheftRead the Press Release
SAN JOSE – Yujen Chen and Maria Chen were sentenced yesterday to 75 months in prison and 64 months in prison, respectively, announced United States Attorney Brian J. Stretch, Internal Revenue Service Special Agent in Charge Michael T. Batdorf, FBI Special Agent in Charge John F. Bennett, and U.S. Customs and Border Protection Director of Field Operations Brian J. Humphrey. The sentences follow the December 17, 2015, guilty pleas entered by the married couple in which they admitted committing aggravated identity theft and conspiring to commit wire fraud in connection with their ownership of the Sunnyvale auto dealership 888 Auto Corporation.
According to their guilty pleas, Yujen Chen, 61, and Maria Chen, 59, both of Cupertino, used their automotive business to fraudulently lease luxury vehicles, including vehicles from Porsche, Mercedes-Benz, Audi, BMW, and Toyota, and then to export those vehicles abroad. As part of the scheme, the Chens recruited friends and associates to serve as lessees on the vehicles and sometimes paid these people $500 to lease cars on the Chens’ behalf. The Chens promised the lessees that they would assume the lease payments and that the lessees would not be financially responsible for the lease. However, once the Chens convinced the person to sign the lease arrangement and the lessees turned the vehicles over to the Chens, the Chens typically made only initial payments to the automotive finance companies on behalf of the lessees. Then, as a part of the scheme, the Chens would identify foreign purchasers for the leased vehicles. The Chens admitted they falsified DMV paperwork reflecting a transfer of title from the financing company or lessor to an entity owned or controlled by the Chens. The title transfer allowed the Chens to then forward the vehicle to a freight forwarder for the purpose of exporting the car to a foreign buyer. As a part of the scheme, the Chens also provided or caused to be provided customs paperwork to a freight forwarder that included a fraudulently obtained, or “washed,” DMV title. The Chens eventually caused the leased vehicles to be shipped abroad, then ceased making the financing payments on the leased vehicles, leaving the nominal lessees with a broken lease and no car.
In the latter stages of the scheme, the Chens expanded the scope of their illegal conduct by using stolen identities. Specifically, the Chens collected money and personal identifying information from individuals who had come into their business expressing interest in making a legitimate vehicle purchase. Then, instead of providing dealers the money received from the persons for the vehicles, the Chens simply kept the purchase money provided by the victims for themselves. Moreover, the Chens misappropriated the personal identifying information of these individuals in order to gain possession of cars using fraudulent leases or finance agreements. The vehicles were then exported using the same title washing, and exporting techniques.
The defendants were originally charged in a 24-count indictment filed November 20, 2013. They each pleaded guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1343, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A. As part of the plea agreement, the government agreed to dismiss the remaining open charges at the time of sentencing.
The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge. Judge Davila also imposed a term of three years supervised release on each defendant. Judge Davila set a further restitution hearing in the case for March 2, 2017, at 1:30 p.m. for the purpose of considering an appropriate order of restitution for the individual and corporate victims in the case. The defendants currently are out of custody on bond.
Assistant United States Attorneys Daniel Kaleba and Jeffrey Nedrow are prosecuting the case with the assistance of Susan Kreider and Laurie Worthen. The prosecution is the result of an investigation by the Internal Revenue Service, the Federal Bureau of Investigation, the United States Customs and Border Protection, the California Department of Motor Vehicles, and the California Highway Patrol.
Convicted Felon Sentenced to 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Jamarian Oliver (29, Tampa) to 15 years in federal prison for selling crack cocaine and possessing a firearm as a convicted felon. He pleaded guilty on August 5, 2016.
According to court documents, in October 2015, detectives from the Hillsborough County Sheriff’s Office (HCSO) began investigating Oliver. On two separate occasions in October and November 2015, Oliver sold crack cocaine to a HCSO undercover detective (UC). In December 2015, Oliver again met with the UC and sold him a .22 caliber firearm. At the time of the offenses, Oliver had multiple prior felony convictions, including possession of cannabis, fleeing to elude, and delivery of a controlled substance, and was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Shauna S. Hale.
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. It is also a part of ATF’s Frontline strategy to reduce violent crime in communities.