Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
31 January 2017
Conspirators Sentenced to Nearly Five Years for Identity Theft and Unemployment Insurance Fraud SchemeRead the Press Release
A Detroit man was sentenced today for conspiring to steal identities and unemployment benefits, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by James Vanderberg, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General, and Wanda Stokes, director, of the Michigan Talent Investment Agency which administers the Unemployment Insurance program
Joel Randall Driscoll, 27, was sentenced to 57 months for conspiracy to commit mail fraud and aggravated identity theft. The aggravated identity theft charge carries a mandatory two-year sentence, which is imposed consecutively to the sentence for other crimes.
According to the indictment, Driscoll, along with co-conspirators Lashea Catrice Scott, Grady Whitaker, Jr., Devonte Cook, Deonta Holley and Terence Gould, devised and executed a scheme to defraud and obtain public money from the State of Michigan Unemployment Insurance program from January 2012 to December 2015. Michigan unemployment benefits, which are funded by employers and the U.S. Department of Labor, are paid to individuals who are unemployed. As part of the conspiracy, the defendants stole the identities of unsuspecting individuals and applied for benefits in their names. The benefits were issued on debits cards, which the defendants used at automated teller machines across Detroit to access the unemployment insurance benefits for personal use. The conspiracy involved the stolen identities of hundreds of individuals and resulted in losses to the government of more than $400,000.
“These criminals not only stole funds from the state, but they also stole money from the pockets of the unemployed workers for whom the benefits were intended by committing identify fraud.” McQuade said.
“Joel Driscoll victimized individuals by stealing their identities, and defrauded the Michigan Unemployment Insurance program of more than $400,000 intended for American workers in need of relief from the financial effects of unemployment. We will continue to work with our law enforcement partners to safeguard the Unemployment Insurance Program,” stated James Vanderberg, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
Co-conspirator Grady Whitaker, Jr. was sentenced to 68 months in custody on December 12, 2016 for his role in the conspiracy and the aggravated identity theft. The remaining defendants have all entered pleas to various charges and are awaiting sentencing.
The case was investigated by U.S. Department of Labor – Office of Inspector General in conjunction with the State of Michigan – Unemployment Insurance Agency and prosecuted by Assistant United States Attorneys Erin J. Hendrix and Brandy R. McMillion.
Chicago Man Sentenced to 90 Months on Heroin and Firearms ChargesRead the Press Release
CHATTANOOGA, Tenn. – On Jan. 27, 2017, Cornelius Q. Hill, 29, of Chicago, was sentenced to 90 months in prison by the Honorable Travis R. McDonough, U.S. District Judge, for possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. Hill pleaded guilty to these charges, contained in a federal indictment, in October 2016.
According to information on file with the U.S. District Court, in August 2016 Drug Enforcement Administration (DEA) Special Agents seized approximately 40 grams of heroin and a loaded firearm from a hotel room Hill was using in Chattanooga. Hill admitted the heroin and firearm were his and that he was sent down to Chattanooga from Chicago to sell heroin for the Vice Lords, a violent street gang based out of Chicago.
Hill’s sentence reflected the danger and risk of harm his conduct posed to society. The United States asked the court to impose a sentence that would deter future drug dealers from Chicago and elsewhere from traveling to the Eastern District of Tennessee to sell their drugs.
The indictment and subsequent conviction of Hill was the result of an investigation conducted by the DEA. Assistant U.S. Attorney Michael D. Porter represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
###
California Man Pleads Guilty to Illegally Importing Chinese CigarettesRead the Press Release
A Los Angeles, California man pleaded guilty yesterday to illegally engaging in the business of importing tobacco products, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Eileen M. Decker for the Central District of California.
Zhi Xiong Chen, 56, of Chinatown, 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.
“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 Goldberg. “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.”
“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 U.S. Attorney Decker. “The defendant’s crime not only cheated taxpayers, but also caused unregulated, potentially dangerous products to be sold to an unsuspecting public.”
Sentencing is scheduled for April 17. Chen faces a statutory maximum penalty of five years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Decker thanked special agents of IRS–Criminal Investigation, the Alcohol and Tobacco Tax and Trade Bureau, and the U.S. Food and Drug Administration’s Criminal Investigations, who conducted the investigation, and Assistant U.S. Attorney Valerie L. Makarewicz and Trial Attorney Christopher S. Strauss of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Cabot Man and Former Federal Employee Pleads Guilty to Conflict of Interest Regarding USDA ContractsRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Larry Dale Dunkin, 64, of Cabot, pleaded guilty to an Indictment charging him with conflict of interest. Dunkin, a former federal contracting officer for the United States Department of Agriculture (USDA), Natural Resources Conservation Service (NRCS) personally benefited from contracts he awarded to a company in which his wife had a direct financial interest.
Today’s plea hearing took place in Little Rock before Chief United States District Judge Brian S. Miller, who will sentence Dunkin at a later date.
The NRCS, formerly known as the Soil Conservation Service, is an agency of the USDA that provides technical assistance to farmers and other private landowners and managers. It is a relatively small agency, with a mission to improve, protect, and conserve natural resources on private lands through a cooperative partnership with state and local agencies.
During today’s change of plea hearing, Dunkin admitted that in March 2013 he knowingly and willfully awarded a $22,500 contract to Young Enterprises, LLC, a company in which his wife had a direct financial interest. Multiple records indicate that Dunkin’s wife was a part-owner of the company, and the mailing address for Young Enterprises, LLC, on file with the Secretary of State was the same address as the residence of Dunkin and his wife.
Upon Young Enterprise’s completion of the contract, the USDA transferred approximately $22,500 into a bank account jointly owned by Dunkin and his wife.
The statutory penalty for Title 18, United States Code, Section 208, "Acts Affecting a Personal Financial Interest," more commonly known as "conflict of interest," is not more than five years’ imprisonment, not more than three years of supervised release, a fine of not more than $250,000, and a $100 special assessment.
The investigation was conducted by the USDA–Office of Inspector General and is being prosecuted by Assistant United States Attorney Hunter Bridges. If you have knowledge of or suspect fraud related to USDA programs, you may submit online at https://www.usda.gov/oig/hotline.php.
Buffalo Man Sentenced for Food Stamp FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Shuja Alawdi, 40, of Buffalo NY, who was convicted of unauthorized use of food stamp benefits, was sentenced to six months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $124,406.
Assistant U.S. Attorneys Stephanie Lamarque and Scott S. Allen, who handled the case, stated that the defendant participated in the operation of the Bailey Food Mart, located at 3209 Bailey Avenue, Buffalo, NY. Between July 2010 and August 2011, the defendant, and others, knowingly purchased, for cash, food stamp benefits for less than their full value from eligible beneficiaries. Retailers are prohibited from exchanging cash for food stamps. During that time period, the defendant and others exchanged approximately $124,406 of food stamp benefits for cash.
The sentencing is the culmination of an investigation by the United States Department of Agriculture, Office of Inspector General, under the direction of Special Agent-in-Charge William G. Squires Jr. and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly.
Bronx Teacher Charged with Animal Welfare Violations for Cockfighting VentureRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Bethanne M. Dinkins, Special Agent-in-Charge of the U.S. Department of Agriculture, Office of Inspector General (“USDA-OIG”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced that HECTOR M. CRUZ was arrested today for possessing, selling, and transporting roosters for purposes of participation in animal fights around the United States. The defendant is expected to be presented today in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Hector Cruz ran a cruel and illegal business of raising and selling roosters for the purpose of vicious cockfights where knives and other sharp instruments are attached to the fighting roosters’ legs. Thanks to the work of the U.S. Department of Agriculture, Office of the Inspector General and the NYPD, Cruz’s days of allegedly profiting from this inhumane business are over.”
Special Agent-in-Charge Dinkins said: “The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling. Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
NYPD Commissioner James P. O’Neill stated: “Cockfighting often leads to the cruel killing of roosters. Hector Cruz’s arrest will stop the breeding and training of roosters for cockfighting at his facility in the Bronx.”
According to the allegations in the Complaint unsealed today in Manhattan federal court[1]:
Cockfighting is an activity in which knives, gaffs, or other sharp instruments are attached to the legs of roosters for the purpose of fighting each other. The fights between roosters end when one rooster is dead or refuses to continue to fight. If not killed during the fight, the losing rooster is typically killed afterwards. Roosters involved in cockfighting will often be mutilated in preparation for fights, typically by cutting off the rooster’s comb and wattle and shaping the rooster’s spur. Individuals who breed roosters for cockfights often cross-breed particular types of roosters in order to produce hybrid breeds that will excel as fighters.
From December 2012 up to January 2017, HECTOR M. CRUZ, a New York City public school teacher, maintained a rooster farm at a location in the Bronx, where he bred, raised, and trained roosters for cockfighting. CRUZ sold and shipped his roosters to individuals across the country, knowing that the birds were intended for cockfights. CRUZ communicated with customers through social media and received payments of as much as $600 for fighting birds.
* * *
CRUZ, 59, of the Bronx, New York, is charged with selling, possessing, and transporting animals for purposes of participation in an animal fight, which carries a maximum penalty of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the USDA-OIG and the NYPD Animal Cruelty Investigation Squad and thanked them for their ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant U.S. Attorneys Michael C. McGinnis and Alison G. Moe are in charge of the case.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Bland, Missouri Man Sentenced on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – George Patterson, Bland, MO, was sentenced to 121 months in prison on charges of possession of child pornography.
According to court documents, in December 2015 and January 2016, the Missouri Internet Crimes Against Children (MOICAC) Task Force received a tip that an email address, later found to belong to George Patterson, uploaded suspected child pornography images to a Google Plus photos account. On April 27, 2016, a federal search warrant was executed in Bland, Missouri. On scene forensics of Patterson’s cell phone revealed approximately 3,000 images of child pornography and child erotica.
Patterson pled guilty in November to one felony count of possession of child pornography. He appeared today for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by the Missouri Internet Crimes Against Children (MOICAC) Task Force and the Federal Bureau of Investigation. Assistant United States Attorney Rob Livergood handled the case for the U.S. Attorney’s Office.
Bailey Boys Gang Member Sentenced for His Role in Two MurdersRead 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 Tyrone Brown, 25, of Buffalo, NY, who was convicted of RICO Conspiracy in connection with two deadly shootings, was sentenced to 264 months in prison by Senior U.S. District Judge William M. Skretny.
According to Assistant U.S. Attorney Meghan A. Tokash, who handled the prosecution of this case, Brown was a member of the Bailey Boys Gang, a violent criminal gang which operates in an area of the City of Buffalo bounded by Winspear Avenue, the Kensington Expressway, Eggert Road and Main Street.
Through the course of the conspiracy of which he was convicted, defendant committed he following acts: • On January 11, 2011, the defendant shot and killed Harold McCain inside a store on Genesee Street in Buffalo.
• On June 14, 2011, defendant shot and killed Kevin Wilkins in a drive-by shooting on Minnesota Avenue in Buffalo.
• On November 9, 2011, the defendant, co-defendant Eddie Allen, and other members of the Bailey Boys Gang robbed several people at a house party on Rounds Avenue in Buffalo, and during the course of those robberies, defendant participated in the attempted murder of Omego Stafford who was shot and wounded.
• On June 28, 2011, defendant and other co-defendants went to Shirley Avenue in Buffalo and opened fire on rival gang members. One person was shot and wounded.
• Between 2004 and April 23, 2013, defendant and other members of the Bailey boys Gang distributed cocaine in the territory controlled by the gang.
• As a result of the ongoing investigation into the Bailey Boys Gang, its members now stand accused of 4 murders, 14 attempted murders—including four drive-by shootings. The attempted murders include a shooting that occurred during a neighborhood party with numerous children present and a shooting that occurred during a robbery. A total of 11 were arrested, and to date, 8 defendants have been convicted. 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.
Today’s sentence is the result of an ongoing investigation on the part of the United States Attorney’s Office in close cooperation with the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn; the Buffalo Police Department, under direction of Police Commissioner Daniel Derenda; the Federal Bureau of Investigation’s Safe Streets Task Force, under the Direction of Special Agent in Charge Adam S. Cohen; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy B. Howard; the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.15 Alleged Members of Drug Trafficking Organization IndictedRead the Press Release
Jackson, TN – Fifteen alleged members of a drug trafficking organization responsible for distributing cocaine and marijuana throughout West Tennessee have been indicted on federal charges. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee; Michael T. Gavin, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation (FBI); Steve Isbell, Chief of Police for the Dyersburg Police Department; and Christopher Wiser, Chief of Police for the Jackson Police Department, announced the indictment today.
"As the indictment alleges, these 15 individuals decided to traffic illicit narcotics throughout our district as a means to fatten their pockets," said U.S. Attorney Stanton. "Law enforcement has no tolerance for the distribution of illegal drugs, and this indictment serves as a reminder that we will keep pursuing those suspected of poisoning our community."
On Tuesday, January 31st, 12 of the defendants were taken into custody by federal, state and local law enforcement officials. Three of the defendants were already incarcerated on unrelated charges.
The following defendants have been indicted for conspiracy to distribute and possess with the intent to distribute cocaine, cocaine base and marijuana:
• Anthony Lamont Adams, 41, of Obion County
• James Williams Ayers, 51, of Shelby County (Already in Federal Custody)
• Joaquian Jonulle Bowen, 30, of Dyer County
• Edrik Deon Fason, 34, of Madison County (Already in Federal Custody)
• Derrick Shawen Fields, 36, of Dyer County
• L.C. Gills Jr., 48, of Dyer County
• Monteith Alvarez Haley, 37, of Dyer County
• Charlie Dwayan Hartshaw, 35, of Madison County
• Demonta Darnell Henning, 25, of Dyer County
• Paul Montrale Isom, 30, of Dyer County
• Joseph Deangelo Lee, 44, of Dyer County
• Billy Joe Liggon Jr., 40, of Madison County (Already in Federal Custody)
• Bobby Charles McElrath, 54, of Dyer County
• Kenneth Wayne Patrick, 38, of Dyer County
• Jermaine B. Temple, 38, of Madison CountyAccording to the indictment, between June and December 2016, the defendants conspired with each other to distribute and possess with the intent to distribute powder cocaine, crack cocaine, and marijuana. The defendants allegedly aided and abetted each other during the commission of the aforementioned crime.
During the course of its investigation, law enforcement officials seized illicit narcotics, drug paraphernalia, firearms, and drug proceeds. Additional firearms were recovered during Tuesday’s round-up.
"Gang-related drug activity tears at the fabric of our communities, as gang members peddle poison and innocent people are caught in the violence and related crimes that accompany the drug trade," said Gavin, Special Agent in Charge for the FBI’s Memphis Field Office. "Today's arrests demonstrate the commitment of the FBI and our law enforcement partners to root out those who seek to prey on the public, and to stamp out the organizations that ruin so many lives."
"I am very proud of the Street Crimes Unit, and appreciate their dedication and hard work removing dangerous individuals from our community," said Dyersburg Police Chief Isbell. "They worked many long hours and were aided by other members of the police department’s patrol and criminal investigation division. Officers on the Street Crimes Unit are also members of the FBI’s Safe Streets Task Force. This partnership allows us to combine resources to make all of West Tennessee a safer place."
"We want the citizens of Jackson and West Tennessee to be confident in our departments’ commitment to relentlessly and aggressively pursuing criminals who engage in poisoning our community by pushing and selling drugs in West Tennessee," stated Jackson Police Chief Wiser. "Criminals do not stop at city limit signs and neither do we. The Jackson Police Department values our working relationship with our federal law enforcement partners which often bridge the gap between local jurisdictions. Because drugs are the root cause of so many of the crimes committed in our area, we are determined to focus our attention and resources on those with criminal intent to destroy our community. We appreciate the likeminded efforts of the FBI and the Dyersburg Police Department in this case and you can be assured that these types of enforcement actions will continue as long as needed to combat the drug problems in our streets."
All 15 defendants face up to 20 years in federal prison and fines of up to $1 million for both the conspiracy and aiding and abetting charges.
Isom is charged with an additional count of distribution and possession with the intent to distribute marijuana. He faces up to five years and a fine of up to $250,000 for the charge.
Haley is charged with three additional counts of distribution and possession with the intent to distribute cocaine. He faces up to 20 years and a fine of up to $1 million for each charge.
Fason is charged with an additional count of possession with the intent to distribute cocaine and methamphetamine. He faces a mandatory minimum sentence of five years and a fine of up to $5 million.
Ayers is charged with felony possession of multiple firearms and ammunition. He faces up to 10 years and a fine of up to $250,000 for the charge.
The case is being investigated by the FBI’s Memphis Safe Streets Task Force. The Task Force is comprised of agents from the FBI Memphis Division’s Jackson Resident Agency, the Dyersburg Police Department, the Jackson Police Department, the Lexington Police Department, and the 24th Judicial District Drug Task Force.
Assistant U.S. Attorney Matt Wilson is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
30 January 2017
“2fly” Gang Leader Pleads Guilty to Racketeering and Firearms ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LAQUAN PARRISH, a/k/a “MadDog,” a/k/a “Quanzaa,” pled guilty today to racketeering and firearms charges in connection with his leadership of the “2Fly YGz” (“2Fly”) gang, a violent street gang that operated in and around the Eastchester Gardens public housing development (“ECG”) in the Bronx. As part of his guilty plea, PARRISH admitted his involvement in a shootout with rival gang members on August 7, 2012, during which three victims – including a 14-year-old girl caught in the crossfire – were shot in a Bronx park. PARRISH faces a maximum term of life in prison, and will be sentenced before United States District Judge Lewis A. Kaplan on May 10, 2017, at 3:00 p.m.
U.S. Attorney Preet Bharara said: “For far too long, Laquan Parrish and his cohorts with the 2Fly street gang terrorized the Bronx with violence, robberies, and drug dealing. Today’s guilty plea by one of 2Fly’s leaders, Laquan Parrish, to federal firearms and racketeering charges, including an admission to a shootout in which a 14-year old girl and two others were shot in a Bronx park, makes the community around Eastchester Gardens safer. That is why we bring these cases – to make our neighborhoods free from gang violence and drugs – and that is what today’s plea helped achieve.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
PARRISH was a leader of 2Fly, a subset of the “Young Gunnaz,” or “YGz” street gang, which operates throughout New York City. 2Fly is based in the Bronx, within and around ECG and in an area called the “Valley” or the “V,” which is in the vicinity of Gun Hill Road. ECG is a rectangular complex of residential buildings bordered by Burke, Adee, Yates, and Bouck Avenues, in the middle of which is a playground. The gang war between 2Fly and rival street gangs has led to an enormous amount of fatal and non-fatal violence between 2007 and 2016 in the Northern Bronx, including shootings, stabbings, slashings, beatings, and robberies. Members and associates of 2Fly controlled the narcotics trade at ECG, which took place in the open air at the playground and in apartments at ECG. 2Fly primarily sold marijuana and crack cocaine, but also sold powder cocaine and prescription pills, such as oxycodone. 2Fly members and associates stored guns at the playground or in nearby apartments or cars in order to protect the narcotics business and for protection against rival gangs.
As part of his involvement in 2Fly, PARRISH participated with other 2Fly members in a shootout with rival gang members on August 7, 2012, in a public park in the Bronx. Three victims were shot, including a 14-year-old girl caught in the crossfire.
PARRISH was arrested in this case as a result of a multi-year investigation by the New York City Police Department’s Bronx Gang Squad (the “Bronx Gang Squad”), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Violent Gang Unit (“HSI”), the New York Field Division of the Drug Enforcement Administration (“DEA”), and the Joint Firearms Task Force of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) into gang violence in the Northern Bronx. On April 27, 2016, the Indictment was unsealed, charging 57 members and associates of 2Fly with racketeering conspiracy, narcotics conspiracy, narcotics distribution, and/or firearms charges. To date, 42 of these defendants have pled guilty.
* * *
PARRISH, 27, of the Bronx, New York, was brought from state custody into federal custody on April 27, 2016. PARRISH pled guilty today to one count of racketeering conspiracy, which carries a maximum sentence of life in prison, and one count of firearms possession, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of life in prison. The mandatory minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the defendant’s sentence will be determined by the judge.
Mr. Bharara praised the outstanding work of the NYPD’s Bronx Gang Squad, HSI, DEA, and ATF.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Rachel Maimin, Micah W.J. Smith, Hagan Scotten, Jessica Feinstein, and Drew Johnson-Skinner are in charge of the prosecution.
Woman Charged with Conspiracy and Wire Fraud Involving the Theft of $215,000 from Two Health Care ProvidersRead the Press Release
TALLAHASSEE, FLORIDA – Melissa Moniz, 44, of Marianna, was arraigned today in the U.S. District Court in Tallahassee after a federal grand jury returned an indictment charging her with conspiracy to commit wire fraud and nine counts of wire fraud. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that, between 2006 and 2014, Moniz controlled entities known as Billing and Collection Services and Billing and Collection Services, LLC (collectively “BCS”), which purportedly conducted collections work for health care providers. Moniz is charged with fraudulently obtaining money from Gynecology and Obstetrics Associates in Tallahassee for collections services that were never performed. Additionally, Moniz, is alleged to have made false statements in connection with her application for employment as the director of physician practices with the Jackson County Hospital. The indictment charges that Moniz used her position at Jackson County Hospital to induce the hospital to hire BCS for collections services and that Moniz concealed the fact that she both controlled BCS and was personally receiving the payments the hospital made to BCS. Moniz is alleged to have fraudulently obtained $215,766.68 from her scheme to defraud the two businesses.
The trial is scheduled for March 13, 2017.
This case resulted from an investigation by the Federal Bureau of Investigation and the Leon County Sheriff’s Office. Assistant United States Attorney Stephen M. Kunz is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer(850) 216-3854, [email protected]
Wise County Man Sentenced for Having Minor Attend a Cock Fight, Other ChargesRead the Press Release
Abingdon, VIRGINIA – A Pound, Virginia man, who brought a minor to a cockfight, distributed hydrocodone and conspired with others to facilitate cockfighting, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, Acting United States Attorney Rick A. Mountcastle announced.
Russell D. Peaks, 40, of Wise County, Virginia, previously pled guilty for his role in cockfighting at the Big Blue Sportsmen’s Club “Big Blue” in McDowell, Kentucky, including allowing a minor to be present at a cockfight, distribution of hydrocodone, and conspiring to facilitate cockfighting. Today in District Court, Peaks was sentenced to 24 months in federal prison.
According to evidence presented at previous hearings, Peaks raised fighting roosters at his home in the Pound, Virginia, area. He then took those birds to fight at Big Blue in McDowell, Kentucky. Peaks also fought birds in the Pound area. On one such occasion, Peaks allowed a minor to attend the fight. In 2014, Congress made it a felony to allow a minor to attend an animal fighting venture, which includes cockfighting. Peaks also sold hydrocodone to an undercover officer.
Five individuals previously convicted for their role at Big Blue were sentenced to terms of imprisonment ranging from 6 to 18 months. Another defendant, Jimmy Crate Willis, has signed a plea agreement and intends to plead guilty in the near future. The two remaining defendants are scheduled for trial at the Federal Courthouse in Big Stone Gap on December 12, 2016.
Assistant United States Attorney Randy Ramseyer and Special Assistant United States Attorney/Virginia Assistant Attorney General Michelle Welch are prosecuting these cases on behalf of the United States. The case is being investigated by the United States Department of Agriculture – Office of Inspector General, the Virginia Alcohol Beverage Control Bureau of Law Enforcement, and the Spotsylvania County Sheriff’s Office. In addition, the following agencies assisted in the arrests or related proceedings: Virginia Animal Fighting Task Force; Virginia State Police Tactical Team; Southwest Virginia Regional Task Force; Botetourt County Commonwealth’s Attorney’s Office; Wise County, Virginia, Sheriff’s Office and Commonwealth’s Attorney’s Office; Virginia State Veterinarian’s Office; United States Homeland Security Investigations; Kentucky State Police; the United States Attorney’s Office for the Eastern District of Kentucky; and the American Society for the Prevention of Cruelty to Animals.
Williamsburg Man Sentenced to Prison for Child PornographyRead the Press Release
NORFOLK, Va. – Edward Joseph Matish III, 25, of Williamsburg, was sentenced today to 40 months in prison for accessing with intent to view child pornography involving a prepubescent minor. Matish was also sentenced to 10 years of supervised release following his release from prison.
Matish pleaded guilty on Oct. 18, 2016. According to court documents, Matish was a member of Playpen, a hidden website dedicated to the sharing of child pornography that operated on the Tor network from August 2014 until March 2015. Between October 2014 and March 2015, Matish logged into Playpen and viewed content depicting the sexual exploitation of children. In December 2014, Matish wrote on the site that he used it to control his attraction to young girls, encouraging others like him to “[l]eave the touching to the brave souls willing to risk everything for our relief.”
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Kaitlin C. Gratton prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-16.
Wichita Man Pleads Guilty in Jewelry Store Robbery and Bank RobberyRead the Press Release
WICHITA, KAN. B A Wichita man who held a jewelry store owner at gunpoint pleaded guilty Monday in that incident and a separate bank robbery, U.S. Attorney Tom Beall said.
Terence L. Thomas, 25, Wichita, Kan., pleaded guilty to one count of brandishing a firearm during the jewelry store incident and one count of bank robbery.
In the jewelry store incident, Thomas admitted he had a knife when he approached the owner of Kim Chee Jewelry at 2038 N. Broadway as the owner and his wife arrived for work. The owner drew a handgun in self-defense. The two men wrestled and shots were fired before Thomas got the gun. He forced the owner to open the door to the business. When Thomas tried to drag the owner’s wife into the business, she fell to the ground, feigning a heart attack. Thomas fled the scene after the owner locked him out of the business. A witness took photos of Thomas’ car as he fled, which helped police to identify Thomas and arrest him.
In a separate incident a month earlier, Thomas robbed the Fidelity Bank at 3525 E. Harry. He told the teller, “This is a robbery,” and counted down from twenty while the teller put cash in his bag. He fled the bank with the money.
Sentencing is set for April 19. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the bank robbery count, and a penalty of not less than seven years (consecutive) and a fine up to $250,000 on the charge of brandishing a firearm during a robbery. Beall commended the Wichita Police Department, FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Wall Street Investment Analyst Found Guilty in Manhattan Federal Court of Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOHN AFRIYIE, a former analyst at the Manhattan-based private investment fund (the “Fund”) was found guilty this afternoon in Manhattan federal court of securities fraud and wire fraud for committing insider trading. AFRIYIE made approximately $1.5 million in profits in connection with stock options he purchased based on material nonpublic information he misappropriated from the Fund about an impending acquisition of ADT Corporation (“ADT”).
Manhattan U.S. Attorney Preet Bharara said: “As a unanimous jury found today, John Afriyie, an investment fund analyst, made $1.5 million in illegal profits by trading in ADT stock, using inside information about ADT that he had obtained from the fund’s servers. To cover up his insider trading scheme, Afriyie destroyed incriminating emails and even claimed his own voice on a recorded call to his broker was actually his mother’s. The jury saw through Afriyie’s deception, and he now stands convicted of federal crimes.”
According to the Indictment other filings in Manhattan federal court and the evidence presented at trial:
In January 2016, Apollo Investment Management LLC (“Apollo”) contacted the Fund to discuss whether the Fund would provide debt financing for Apollo’s potential acquisition of ADT. The Fund entered into a non-disclosure agreement with Apollo and was granted access to confidential documents related to the ADT transaction. As an investment analyst at the Fund, AFRIYIE had access to the Fund’s network server, which maintained, among other things, electronic shared directory file folders containing material nonpublic information, including information about Apollo’s acquisition of ADT.
In violation of the Fund’s policies and in breach of his duties to the Fund, AFRIYIE repeatedly accessed material nonpublic information about Apollo’s pending acquisition of ADT in an electronic shared drive folder on the Fund’s network server. In approximately 28 separate transactions between January 28, 2016, and February 12, 2016, AFRIYIE purchased approximately 2,279 ADT call options for a total of $24,254.02 before the public announcement of that transaction. AFRIYIE purchased the ADT call options through a brokerage account in the name of AFRIYIE’s mother, which AFRIYIE controlled. AFRIYIE did not reveal his trades or the existence of the brokerage account to the Fund. As cover for his criminal scheme, AFRIYIE repeatedly pretended to be his mother in recorded telephone calls with his broker.
The public announcement of Apollo’s acquisition of ADT in February 2016 caused ADT shares to increase in value from $29.20 per share on the day AFRIYIE began purchasing ADT options to $39.64 per share, resulting in a corresponding increase in the value of the call options AFRIYIE had purchased. Upon subsequently selling the ADT options, AFRIYIE generated over $1.5 million in illicit profits.
In connection with his arrest, AFRIYIE lied to agents of the Federal Bureau of Investigation (“FBI”) about his ADT options trades and falsely claimed that his own voice on a recorded call with his broker was really his mother’s voice. Following his arrest, AFRIYIE also attempted to delete the contents of an email account that he had used to communicate with his broker.
While the guilt phase of the trial has concluded, AFRIYIE has requested a jury determination as to whether certain assets are subject to forfeiture as proceeds of the offenses for which he was found guilty. That forfeiture proceeding remains ongoing and will resume tomorrow.
* * *
AFRIYIE, 29, of Freehold, New Jersey, was convicted of one count of securities fraud and one count of wire fraud, each of which carries a statutory maximum sentence of 20 years in prison. AFRIYIE was remanded on January 23, 2016, after he refused to appear in court for trial, and he remains in custody. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and the Office’s Criminal Investigators. He also thanked the Securities and Exchange Commission for its assistance.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore and Christine I. Magdo are in charge of the prosecution. Assistant U.S. Attorney Jennifer L. Gachiri is handling the forfeiture aspects of this prosecution.
University City Man Indicted on Child Pornography ChargesRead the Press Release
St. Louis, MO – Justin X. Carroll, University City, MO, appeared in federal district court today to answer to a child pornography charge contained in a federal grand jury indictment that was filed last Wednesday but remained sealed until Carroll’s court appearance earlier this morning. The time period covered by the indictment is November 2015 to December 2016.
In the course of a child pornography investigation involving the internet, federal investigators discovered a group of child pornography sharers and were able to identify Carroll as one of the participants by tracing IP addresses to computers at his residence and Washington University, where Carroll served as Associate Vice Chancellor for Student Affairs.
U.S. Attorney Richard Callahan noted that the investigation only identified criminal wrongdoing in connection with the internet, and did not discover any wrongdoing in connection with Carroll’s University responsibilities or involving students. He also expressed appreciation for the cooperation that Washington University provided in connection with the investigation.
.
If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Rob Livergood is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
United States Attorney for the Middle District of Pennsylvania Reappointed by Order of the District Court JudgesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Bruce D. Brandler, United States Attorney for the Middle District of Pennsylvania, was reappointed United States Attorney by order of the District Court Judges effective January 30, 2017. Mr. Brandler was initially appointed United States Attorney by order of former Attorney General Loretta E. Lynch on October 2, 2016, for one hundred twenty days or until a Presidential appointment was made, whichever occurs first. That appointment expired on January 29, 2017, and this new appointment by the District Court Judges appoints Mr. Brandler as United States Attorney until the vacancy is filled by the President.
Mr. Brandler began his legal career as an Assistant District Attorney in Brooklyn, New York, where he served from 1981 until 1985. Upon leaving the District Attorney’s Office, he became the Deputy Chief and then the Chief Investigative Counsel of the New York State Senate Committee on Investigations, Taxation and Government Operations from 1985 to 1986.
Mr. Brandler was appointed an Assistant United States Attorney for the Middle District of Pennsylvania in 1986 and was promoted to the position of Senior Litigation Counsel in 1992. In 2014, he became the Chief of the Criminal Division and served in that capacity until his appointment as United States Attorney on October 2, 2016.
Some of the notable cases Mr. Brandler prosecuted as an Assistant United States Attorney and Senior Litigation Counsel included a tax evasion case against former Luzerne County Judge Arthur Dalessandro; a perjury case against former State Representative Frank Serafini; a bribery/extortion case against former Lackawanna County Commissioners Robert Cordaro and Anthony Munchak; an illegal campaign contribution and fraud case against Renato Mariani, the former President of Empire Sanitary Landfill, Inc.; a disadvantaged business enterprise fraud case against Joseph Nagle, the former President of Schuylkill Products, Inc.; an accounting fraud case against Paul Polishan, the former Chief Financial Officer for the Leslie Fay Companies, Inc.; and an environmental crimes case against Chemical Waste Management, Inc. for illegal dumping activities at a Superfund site in Lackawanna County.
Mr. Brandler graduated from Stony Brook University in 1978 and received a B.A. in Political Science with honors, and was inducted into the Phi Beta Kappa honor society. He received his law degree in 1981 from the Boston University School of Law. He resides in Harrisburg, Pennsylvania.
# # #
U.S. Department of Justice Partners with Linn County and Cedar Rapids Law Enforcement and Community Agencies to Host Forum: Protecting Arab, Muslim, Sikh, and South Asian Communities and the Community Response to Hate CrimesRead the Press Release
CEDAR RAPIDS, IA –The U.S. Department of Justice partnered with Linn County and Cedar Rapids law enforcement and community agencies to host a forum today to discuss hate crimes and bias incidents targeted against the Arab, Muslim, Sikh, and South Asian Communities. A representative from the Department of Justice’s Community Relations Service (CRS) served as the moderator.
Pursuant to the Hate Crimes Protection Act, CRS is authorized to work with communities to help them develop the capacity to prevent and respond more effectively to violent hate crimes committed on the basis of actual or perceived race, color, national origin, gender, gender identity, sexual orientation, religion, or disability. CRS is a remarkably unique federal component dedicated to assisting state and local units of government, private and public organizations, and community groups develop local capacity to prevent racial and ethnic tensions.
Joining in the forum were representatives from the Linn County Attorney and Sheriff’s Offices, the Cedar Rapids Police Department, the Federal Bureau of Investigation, the Cedar Rapids Civil Rights Commission, and leaders from the Arab, Muslim, Sikh, and South Asian communities in Cedar Rapids.
United States Attorney Kevin W. Techau expressed appreciation to the agencies involved and the community members attending for their willingness to discuss issues that communities across the state and country encounter. Techau stated, “The Department of Justice is committed to protecting the rights and freedoms of all people. Today’s meeting was an opportunity to discuss the topic of hate crimes in a safe environment. Hate crimes represent an attack not just on the individual victim but also on the victim's community. The impact is broad because these crimes send a message of hate and violence to entire ethnic and religious groups. The perpetrators of such crimes intend to create fear and spread hatred. We are committed to working with all communities to address the issue by working to prevent hate crimes as well as investigate and prosecute hate crimes whenever and wherever necessary.”
Assistant U.S. Attorney Tony Morfitt provided information on the federal statutes that criminalize various types of hate crimes. He covered the evolution of federal hate crime law and the recent expansion of the groups protected by federal hate crime laws.
Morfitt emphasized that the defining characteristic of a federal hate crime is that the actions must have been motivated by hate and that an individual cannot be found guilty federally unless the government proves the person acted “because of” the victim’s status as a member of a protected group. As an example, Morfitt pointed to the case of United States of America v. Randy Metcalf, where the government last year proved at trial that a Dubuque resident had assaulted an African American man in a local bar because of his race.
The Linn County Attorney’s Office presented information regarding Iowa hate crime laws. Representatives from CRS served as moderators and engaged the presenters and law enforcement and community leaders with questions from the audience.
To learn more about the Department of Justice’s Community Relations Service, visit: https://www.justice.gov/crs.
Follow us on Twitter @USAO_NDIA.
Two Plead Guilty to $296,600 Armed Bank RobberyRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that Ricardo Rodriguez (24) and Brandon Mojica (23), both of Deltona, have pleaded guilty to armed bank robbery and brandishing a firearm during that robbery. Each faces a maximum penalty of 25 years in federal prison for the armed robbery, to be followed by a mandatory consecutive sentence of at least 7 years for the firearm charge. Rodriguez is scheduled to be sentenced on March 6, 2017, and Mojica is scheduled to be sentenced on April 24, 2017.
According to the plea agreements, on November 8, 2016, Rodriguez brandished a firearm and forced two bank employees, including Mojica, to provide access to the safe of a bank in Lake Mary. Rodriguez took $296,600 from the safe and physically restrained both employees before fleeing the bank. Responding officers from the Lake Mary Police Department quickly located, pursued, and apprehended Rodriguez following a high-speed chase. They also recovered the cash that Rodriguez had stolen from the bank and the firearm used during the robbery. Further investigation revealed that Mojica had assisted Rodriguez in planning the robbery by providing information concerning the bank and its employees in advance.
This case was investigated by the Lake Mary Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Emily C. L. Chang.
Two Men Plead Guilty to Smuggling Foreign Nationals into the United StatesRead the Press Release
NEWARK, N.J. – Two men today admitted their roles in a conspiracy to illegally transport foreign nationals into the United States via commercial airline flights, U.S. Attorney Paul J. Fishman announced.
Nileshkumar Patel, 42, and Harsad Mehta, 68, both of India, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to separate superseding informations charging them each with one count of conspiracy to smuggle foreign nationals into the United States for commercial advantage and private financial gain.
According to documents filed in this case and statements made in court:
Patel and Mehta admitted that from June 2013 through October 2015, they conspired to make money by recruiting Indian nationals to enter and reside in the United States illegally. Patel and Mehta admitted that on July 24, 2014, they brought two Indian nationals to Bangkok, Thailand, so that they could be transported into the United States. They also admitted paying an individual – who was actually an undercover officer – to transport the foreign nationals from Thailand into Newark.
The conspiracy count carries a maximum potential sentence of 10 years in prison. Sentencing is scheduled for May 16, 2017.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S Attorney’s Office National Security Unit in Newark.
Defense counsel:
Patel: Michael P. Koribanics Esq., Clifton, New Jersey
Mehta: Mark A. Berman Esq., River Edge, New Jersey
Three Pounds of Heroin Seized During Federal Drug Interdiction InvestigationRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Juan de Dios Delgado-Garcia, 33, a Mexican national, with a heroin trafficking offense. Delgado-Garcia was ordered to remain in federal custody pending trial.
Delgado-Garcia was arrested on Jan. 26, 2017, and was charged in a criminal complaint after the DEA seized approximately 1.40 kilograms (3.09 pounds) of heroin from him during an interdiction investigation at the Greyhound Bus Station.
If convicted, Delgado-Garcia faces a statutory mandatory minimum of ten years and a maximum of life in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case against Delgado-Garcia was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Letitia C. Simms 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.
Three New Yorkers Sentenced for Credit Card ScamRead the Press Release
The United States Attorney for the District of Vermont announced that three residents of Brooklyn, New York were recently sentenced in United States District Court in Brattleboro following their guilty pleas to charges involving credit card fraud. Today, U.S. District Judge J. Garvan Murtha sentenced Wen Ping Chen, 39, who was the organizer of this conspiracy, to 12 months plus one day of imprisonment. Two lower-level participants in the conspiracy, Kewang Lin, 38, and Shao Qing Chen, 28, were sentenced last week to terms of probation. Wen Ping Chen was ordered to serve three years of supervised release upon completion of his prison term. The three defendants were ordered to pay restitution in the total amount of $25,600. The court ordered that Wen Ping Chen surrender to the Bureau of Prisons on April 4 to begin serving his sentence.
On October 15, 2015, a federal grand jury in Burlington returned a three-count indictment charging Wen Ping Chen with conspiring to commit access device fraud, possessing 15 or more counterfeit access devices, and using counterfeit access devices. In 2014, the grand jury had charged Kewang Lin and Shao Chen with related crimes. The prosecution stemmed from an incident in August 2014 which resulted in the arrests in South Burlington of co-conspirators Shao Chen and Lin.
According to the indictment and court records, between about 2013 and August 22, 2014, Wen Ping Chen recruited Shao Chen, Kewang Lin and other young men and women to commit credit card fraud across the Eastern United States. As part of the conspiracy, Wen Ping Chen recruited young women to obtain waitressing jobs at Chinese restaurants outside New York City. Chen gave his recruits credit card skimming devices which enabled them to steal the credit card numbers of restaurant customers. Chen used the stolen credit card numbers to manufacture counterfeit credit cards. He then recruited young men to travel from New York to other states and use counterfeit credit cards to make purchases, primarily of gift cards. The merchandise acquired through the fraudulent purchases would then be resold on a black market. In August 2014, Wen Ping Chen, Shao Chen and Lin drove from New York to Vermont. Shao Chen and Lin spent two days buying gift cards with counterfeit credit cards provided to them by Wen Ping Chen. On August 22, 2014, Shao Chen and Lin were arrested and later pled guilty in federal court to credit card related crimes. Wen Ping Chen was also arrested in 2014 but was initially released pending further investigation. More than 80 counterfeit credit cards were recovered by South Burlington officers, as well as thousands of dollars of gift cards.
Before being arrested in Vermont, Shao Chen, Lin and other conspirators made shopping trips to Virginia, Ohio, Indiana, Arkansas and Louisiana to buy gift cards with counterfeit credit cards supplied by Wen Ping Chen.
This case was investigated by the South Burlington Police Department, the United States Secret Service, and the Bureau of Immigration and Customs Enforcement.
Wen Ping Chen is represented by Paul Brenner; Shao Chen by Stacey Van Malden; and Kewang Lin by Edgar Fankbonner. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Tennessee Man Sentenced to 188 Months for Drug Trafficking and Money Laundering Conspiracies in Central KentuckyRead the Press Release
LEXINGTON, Ky. – A Tennessee man has been sentenced to 188 months in federal prison for conspiring to distribute massive quantities of marijuana and cocaine in central Kentucky and conspiring to launder approximately one million dollars in drug proceeds.
On Thursday, January 26, U.S. District Judge Karen Caldwell sentenced Benito Segura Tovar, 34, of Knoxville, Tenn. Under federal law, Tovar must serve at least 85 percent of his prison sentence.
Segura Tovar admitted that he conspired with Edgar Villa Castanedaand Miguel Salas, both of Lexington, Ky., and others to distribute over five kilograms of cocaine and over 1,000 kilograms – roughly 2,200 pounds - of marijuana between August 2014 and February 2015. The cocaine was supplied in part by Raul Garcia Valencia of Atlanta, Ga.
The defendants distributed the drugs in Tennessee, Georgia, and central Kentucky, including Fayette, Madison and Montgomery Counties. Segura Tovar also admitted that he, Villa Castaneda, and Salas conspired to launder over one million dollars in drug proceeds.
Law enforcement seized approximately four kilograms of cocaine, 150 pounds of marijuana, several firearms, and approximately $1,000,0000 in bulk cash during the investigation.
Villa Castaneda and Salas pleaded guilty last year. Castaneda was sentenced to 204 months’ imprisonment; Salas was sentenced to 174 months’ imprisonment. Garcia Valencia was convicted at trial in June 2016 and sentenced to 160 months’ imprisonment.
Carlton S. Shier, IV., Acting United States Attorney for the Eastern District of Kentucky; Timothy J. Plancon, Special Agent in Charge of the Detroit Field Division, DEA; Amy Hess, Special Agent in Charge of the Louisville Division, FBI; Stuart Lowrey, Special Agent in Charge of the Louisville Field Division, ATF; Richard W. Sanders, Kentucky State Police; and Mark Barnard, Chief of Lexington Police, jointly made the announcement today.
The investigation was conducted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) Lexington, Ky. OCDETF is an initiative focusing on significant national and international drug trafficking and money laundering criminal organizations. The investigation was coordinated by DEA with the assistance of FBI, KSP, Lexington Police Department, and ATF. The United States was represented by Assistant United States Attorney Robert M. Duncan, Jr., and Assistant United States Attorney G. Todd Bradbury.
Statement of U.S. Attorney Preet Bharara on the Conviction of Arizona Man Charged with Providing Material Support to ISISRead the Press Release
“Once again, we have shown that terrorists and terrorist enablers can be brought to justice fairly, openly, and swiftly in the crown jewel of our justice system -- civilian courts. Today, a jury in federal court in Manhattan convicted Ahmed Mohammed El Gammal of material support of terrorism. To grow their brand of hate-filled violence and radicalization, terrorist organizations like ISIS need facilitators and promoters around the world. And the jury found today that Ahmed Mohammed El Gammal was one such terrorist facilitator. An Ambassador for ISIS right here in America, El Gammal actively touted and glamorized ISIS online, ultimately recruiting and helping a New York college student travel to an ISIS camp in Syria for military training. That New Yorker died waging jihad, and for El Gammal’s active role in sending him down that trail to terror, he now stands convicted of federal terrorism crimes.”
St. Cloud Recidivist Sentenced to More Than 21 Years for Advertisement of Child Pornography on TwitterRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Matthew Allen Hayes (35, Osceola County) to more than 21 years and 10 months in federal prison for advertisement of child pornography. He pleaded guilty on September 15, 2016.
According to court documents, the Osceola County Sheriff’s Office (OCSO) began investigating Hayes after learning that he had advertised an interest in child pornography and had posted an image of child pornography on his Twitter page. On April 7, 2016, OCSO deputies executed a state search warrant at Hayes’s residence, where they located a cellphone with at least 100 videos containing child pornography, many depicting children under the age of 12. During an interview, Hayes admitted that he had posted the advertisement on Twitter, along with the image containing child pornography. He also admitted that he had been downloading, sharing, and viewing child pornography on various networks since his release from prison on October 24, 2015. When Hayes committed this offense, he was on supervised release following convictions in Manatee County on October 2, 2013, for armed burglary with a firearm and four counts of burglary of an occupied structure.
“Child pornography, when it’s released on the Internet, lives on forever,” said Susan L. McCormick, special agent in charge of HSI Tampa. “It haunts the innocent children whose abuse is depicted in the images, and brings unspeakable pain to their parents and families. HSI will continue to work closely with law enforcement partners, like the Osceola County Sheriff’s Office, to ensure that those who sexually exploit our children are brought to justice.”
This case was investigated by OCSO and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of the Principal Legal Advisor, ICE.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.justice.gov/psc.
Springfield Man Pleads Guilty to Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man pleaded guilty in federal court today to using a minor to produce child pornography.
Tyler Coons, 25, of Springfield, pleaded guilty before U.S. District Judge M. Douglas Harpool to one count of using a minor to produce child pornography and one count of receiving and distributing child pornography.
The investigation began when the father of an 11-year-old girl filed a report with the Greene County Sheriff’s Department on June 3, 2014, after his daughter received inappropriate Facebook messages from Coons. When he signed into his daughter’s Facebook account, he saw messages from Coons and set up a meeting with him, pretending to be his daughter. The father met Coons on the playground of a local elementary school and told him to have no further contact with his daughter.
On June 20, 2014, a search warrant was obtained for Coons’s Facebook account and Facebook provided investigators with more than 8,000 pages of private messages exchanged between Coons and others. Many of the messages were from young girls between the ages of 11 and 17. Coons asked several of the girls to send him pictures of themselves without clothes on.
During numerous Facebook conversations with girls claiming to be under the age of 18, Coons refers to exchanging naked pictures via social media, including Snapchat, Instagram and Kik. Frequently, during the conversations, Coons refers to the females as “jailbait” and indicates that he is aware he is engaging in illegal activity.
On July 10, 2014, detectives from the Greene County Sheriff’s Department executed a search warrant at Coons’s residence. Coons was inside the residence with a 17-year-old female, who was identified as one of the minors who had sent him several pornographic images of herself. Coons admitted that he and the 17-year-old were sexually active, and that they could have been sexually active while she was still 16 years old. Coons also admitted that he sent a naked picture of himself to her.
In an interview with investigators, the 17-year-old victim said that she and another minor, whom she believed to be 15 years old, had engaged in sexual activity with Coons at his residence on the night before the search warrant was executed.
Under federal statutes, Coons is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 50 years in federal prison without parole. 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. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Greene County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the 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."
Silver Spring Sex Offender Pleads Guilty to Federal Charge for Production of Child PornographyRead the Press Release
Greenbelt, Maryland – Clarence Henry Andrews, age 28, of Silver Spring, Maryland, pleaded guilty late on January 27, 2017, to production of child pornography. Andrews is a registered sex offender as a result of a 2010 conviction in Prince George’s County Circuit Court for a fourth degree sex offense and second degree assault, in connection with his abuse of a nine-year-old boy in the bathroom of a Laurel, Maryland, church.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to his plea agreement, in March 2015, Andrews communicated with an 11-year-old male residing in Georgia, via a video game system, Skype, FaceTime, text messages, and telephone. During the course of the communications, Andrews promised to provide the victim with Advanced Warfare, a video game, in exchange for sexually explicit images and videos of the victim. At times, Andrews invoked the Bible in order to persuade the victim to produce and share sexually explicit images and videos. Andrews admitted that between approximately 2013 and April 2015, Andrews – using similar means and pattern of conduct – attempted to coerce at least eight additional victims aged 16 and younger to produce images and videos of sexually explicit conduct.
In addition, Andrews admitted that between April 2013 and October 2014, Andrews befriended a family through church, that included an eight-to-nine-year-old female and a seven-to-eight-year-old male, residing in Olney, Maryland. Andrews visited the family’s home on several occasions. On one occasion Andrews took the girl to a downstairs bathroom in the home and gave her cash to pull down her pants, then touched and photographed the child’s buttocks. On other occasions while visiting the family Andrews took the boy to the downstairs bathroom, engaged in sexually explicit conduct and photographed the boy’s buttocks. As part of his federal plea agreement, Andrews has agreed to plead guilty to this conduct in Montgomery County Circuit Court (Case No. 130047C)
Also as part of his plea agreement, Andrews will be required to continue to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Andrews and the government have agreed that if the Court accepts the plea agreement Andrews will be sentenced to between 20 and 30 years in prison, followed by lifetime supervised release. U.S. District Judge Paul W. Grimm has scheduled sentencing for May 12, 2017.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the 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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Montgomery County Police Department, and Montgomery County State’s Attorney’s Office for their work in the investigation, and thanked the Georgia Bureau of Investigation and the Butts County, Georgia, District Attorney’s Office for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Nicolas A. Mitchell and Menaka Kalaskar, who are prosecuting the federal case.
Shelton Man Admits Robbing 4 Connecticut BanksRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SCOTT TAYLOR, 47, of Shelton, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of bank robbery and admitted that he robbed four branches of Chase Bank last year.
According to court documents and statements made in court, TAYLOR robbed the Chase Bank at 184 Main Street in Westport on June 2, 2016; the Chase Bank at 1561 Boston Post Road in Milford on June 24, 2016; the Chase Bank at 50 Washington Street in Norwalk on July 6, 2016, and the Chase Bank at 1855 Main Street in Stratford on July 13, 2016. During each of the robberies, TAYLOR handed a teller a note demanding cash, and told the teller that he had a gun.
TAYLOR stole a total of approximately $23,300 during the first three robberies, and $1,000 during the July 13 robbery. He was arrested at the Stratford train station shortly after the July 13 robbery in possession of $998 in cash and 33 folds of heroin.
TAYLOR is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on May 3, 2017, at which time he faces a maximum term of imprisonment of 20 years. The parties have recommended a sentence of 188 months of imprisonment.
TAYLOR has been detained since his arrest.
This investigation has been conducted by the Federal Bureau of Investigation and the Westport, Milford, Norwalk and Stratford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
U.S. Attorney Daly thanked the assistance and cooperation of the State’s Attorneys for the Judicial Districts of Ansonia/Milford, Fairfield and Stamford/Norwalk.
Sallisaw Woman Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that AMBER LUANA SMALL, age 25, of Sallisaw, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), and Title 18, United States Code, Section 2, punishable by not less than 5 years or more than 40 years imprisonment, and up to a $5,000,000.00 fine or both.
The Indictment alleged that on or about August 30, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from an investigation by the District 27 Drug Task Force, and the Drug Enforcement Administration.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney Timothy Hammer represented the United States.
SPD’s Investigations of Intermediate-level Uses of Force in Initial Compliance with Requirements of Consent DecreeRead the Press Release
SEATTLE – A follow-up assessment of the Seattle Police Department’s (SPD) investigations and chain of command review of intermediate-level, Type II uses of force has found SPD are in initial compliance with the requirements of the Court-ordered agreement with the Department of Justice, announced U. S. Attorney Annette L. Hayes. On Friday, January 27, 2017, Federal Monitor Merrick Bobb filed the re-assessment with the U.S. District Court and, in finding SPD in initial compliance, noted “significant improvement” and “solid progress” since his initial assessment of supervisors’ investigations and review of Type II uses of force.
The previous assessment, filed with the Court in September 2015, examined the documentation, investigation and analysis of uses of force by officers and found SPD to be in initial compliance with requirements relating to lower-level Type I force reporting and investigations, Type II and III reporting, and Force Investigation Team investigations for Type III uses of force, including officer-involved shootings. However, the initial 2015 assessment found that investigations of Type II force conducted by sergeants and reviewed by the chain of command “are not where they need to be” and that “[l]ieutenants and captains are likewise not yet identifying and addressing deficiencies in sergeant investigations of Type II force.”
“We know that effective oversight by direct supervisors, particularly in the investigation and review of uses of force, is critical to maintaining a high-functioning, accountable, and self-correcting police department,” said Annette L. Hayes, U.S. Attorney for the Western District of Washington. “The progress made by SPD’s sergeants, lieutenants and captains is commendable and demonstrates a real commitment to full, fair and rigorous investigations and reviews of force incidents consistent with SPD policies developed as part of the court-ordered reform process.”
The re-assessment focuses on the immediate supervisor’s response to the scene of Type II incidents and the proper initial classification of the type of force used (from low-level Type I, intermediate Type II, or the most serious Type III uses of force). It also addresses the subsequent investigations of the incidents by sergeants, the “chain of command” review by lieutenants and captains, and final reviews by the Force Review Board to identify any policy issues, as well as any issues with the actual force and tactics, that were not caught earlier in the process. The conclusion that SPD is in initial compliance with its obligations under the Consent Decree and SPD policy is based on a review of all Type II incidents from January through March 2016, of which there were only 27, which, as the Monitor notes, reflects the relative infrequency with which force is being used overall. According to statistics compiled and soon to be published by SPD, Type 3s and Officer Involved Shootings (OIS) are statistically uncommon events (e.g., only four OIS in 2016; only 13 Type 3s). This fact highlights the importance of having robust oversight over more common (though still relatively rare) lower level uses of force.
Previous assessments found SPD to be in initial compliance with requirements relating to crisis intervention, the Office of Professional Accountability, use of force reporting and investigations, and the Force Review Board. The Monitor also has examined and found positive developments and trends in public confidence and community trust regarding SPD. Upcoming assessments in 2017 will examine SPD’s use of force and Terry stops, and the Early Intervention System.
In addition to the filing of the re-assessment of the investigation and review of Type II uses of force, the Monitor also filed with the Court SPD’s new crowd management policy and body worn camera plan. Those can be found: here.
Registered Sex Offender Sentenced to 22 Years in Prison for Child PornographyRead the Press Release
WICHITA, KAN. B A Wichita man with a previous conviction for sexual abuse was sentenced Monday to 22 years in federal prison for distributing child pornography, U.S. Attorney Tom Beall said.
Jonathan Curtis McClain, 37, Wichita, Kan., pleaded guilty to one count of distributing child pornography. In his plea, McClain admitted he previously was convicted of sexual abuse in 1998 in Medford, Ore.
This investigation began when agents of the FBI and Homeland Security Investigations in Tennessee identified McClain’s user profile engaged in chats on the Internet telling other users about his interest in watching child pornography. In March 2016 McClain sent child pornography to an investigator.
Beall commended the FBI, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Puerto Rican Men Plead Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Wendell Delgado-Sanchez, and Jairo Figueroa-Suarez, both of Puerto Rico, pleaded guilty to conspiracy to distribute cocaine before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 40 years in prison. In addition, Delgado-Sanchez pleaded guilty to possessing a firearm in furtherance of a drug trafficking crime which carries a maximum penalty of life in prison.
Assistant U.S. Attorney Michael P. Felicetta, who is handling the case, stated that on March 5, 2015, the defendants sold a confidential source 71 grams of cocaine at an apartment on Dearborn Street in Buffalo. Later that same day, law enforcement officers executed a search warrant at the apartment and recovered 1,368 grams of cocaine in a safe and a Jiminez Arms, model J.A. Nine, 9mm luger pistol.
Officers also recovered a surveillance video system from inside the apartment that displayed the activities inside the apartment from February 27, 2015, through March 5, 2015. A review of the video demonstrates that during that time period, Delgado-Sanchez and Figueroa-Suarez were present weighing, mixing, and packaging cocaine for distribution. The video also depicts occasions when the defendants completed drug transactions with customers.
The pleas are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Jairo Figueroa-Suarez will be sentenced on May 11, 2017. Wendell Delgado-Sanchez is scheduled to be sentenced on May 15, 2017. Both sentencings will occur before Judge Vilardo.
President of Muscle Inc. Sentenced to 18 Months Imprisonment for Tax FraudRead the Press Release
HONOLULU – Amalia Ralar, 50, a resident of Honolulu, Hawaii, was sentenced on January 19, 2017 to 18 months in federal prison for filing a false tax return underreporting her income, announced. In addition to the prison term, Senior District Judge Helen Gillmor ordered Ralar to pay a $40,000 fine and pay the sum of $354,511 in restitution to the Internal Revenue Service.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to court documents and information presented in court, Ralar, the owner and operator of a local business, Muscle, Inc., filed tax returns for tax years 2007 through 2014 in which she knowingly failed to report a total of $1,349,231 in taxable income. The failure to report the $1,349,231 resulted in tax losses to the federal government of $354,511. In delivering her sentence, Judge Gillmor referenced large and frequent cash deposits by Ralar totaling $3,046,092 in amounts which the court observed appeared structured to avoid their detection by the Internal Revenue Service.
The case was investigated by the Internal Revenue Service, Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Ken Sorenson.
# # #
Pennsylvania Man Pleaded Guilty to Conspiracy to Provide Material Support to ISIL and Transmitting a Communication Containing a Threat to InjureRead the Press Release
Jalil Ibn Ameer Aziz, 20, of Harrisburg, Pennsylvania, pleaded guilty today to conspiracy to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and transmitting a communication containing a threat to injure.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Bruce D. Brandler for the Middle District of Pennsylvania and Special Agent in Charge Michael Harpster of the FBI's Philadelphia Division. The plea was entered before Chief U.S. District Court Judge Christopher C. Conner.
“Jalil Ibn Ameer Aziz conspired to provide material support to ISIL by aiding individuals in their pursuit of traveling overseas to join the designated foreign terrorist organization and by using social media to propagate ISIL’s threats to injure U.S. service members,” said Acting Assistant Attorney General McCord. “The National Security Division’s highest priority is counterterrorism, and we will remain vigilant in our efforts to hold accountable those who seek to provide material support to foreign terrorist organizations and threaten members of our military.”
“The security of the American People is the highest priority for our office and the Department of Justice,” said U.S. Attorney Brandler. “While we cannot eliminate terrorism completely, we can bring to justice those responsible for providing material support and resources to terrorist groups and for spreading hate and destruction in our communities and abroad. Thankfully, the defendant’s activities were disrupted by the FBI and the Joint Terrorism Task Force and justice will be served in this case.”
"As evidenced here, ISIL loyalists need not travel to the field of battle to threaten lives and do harm," said Special Agent in Charge Harpster. "An American citizen provided material support to terrorists from American soil, while enjoying all the rights and privileges scorned by ISIL. We are gratified that Mr. Aziz is being brought to justice for these acts."
According to the filed court documents, on Dec. 22, 2015, Aziz was charged in an indictment with conspiring and attempting to provide material support to ISIL (Counts 1 and 2). A superseding indictment was returned on May 18, 2016, which added Solicitation to Commit a crime of violence (Count 3) and transmitting a communication containing a threat to injure (Count 4).
According to the superseding indictment, from July 2014 to Dec. 17, 2015, Aziz knowingly conspired to provide, provided and attempted to provide material support, including personnel and services, to ISIL. The superseding indictment also alleges that during the same time period, Aziz solicited, commanded, induced and endeavored to persuade others to kill and attempt to kill officers and employees of the United States. The superseding indictment further alleges that he knowingly tweeted the names, addresses, photographs and military branches of approximately 100 U.S. service members to followers and viewers of his Twitter account. The communication also contained threats to injure the service members, stating “kill them in their own lands, behead them in their own homes, stab them to death as they walk their street thinking that they are safe.”
Aziz pledged his allegiance to the leader of ISIL and used at least 71 different Twitter accounts to advocate violence against the U.S. and its citizens, to disseminate ISIL propaganda and to espouse pro-ISIL views. On at least three occasions, Aziz allegedly used his Twitter accounts and other electronic communication services to assist persons seeking to travel to and fight for ISIL. In one instance, Aziz allegedly acted as an intermediary between a person in Turkey and several well-known members of ISIL.
Aziz passed location information, including maps and a telephone number, between these ISIL supporters. A search of a tactical/military style backpack located in Aziz’s closet identified five loaded M4-style high-capacity magazines, a modified straight edge knife, a thumb drive, medication, flashlights, a toothbrush, sunflower seeds, a lighter, nail clippers, fingerless gloves, a pocket watch and a black balaclava, which is like a ski mask and similar to those worn by ISIL supporters.
The maximum penalty provided in the statute for Count 1, Conspiracy to Provide Material Support and Resources to a Designated Foreign Terrorist Organization, is 20 years’ imprisonment, a $250,000 fine, a term of supervised release of up to life and a $100 special assessment. The maximum penalty for Count 4, Transmitting a Communication Containing a Threat to Injure, is five years’ imprisonment, a $250,000 fine, a term of supervised release of three years and a $100 special assessment.
The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the FBI’s Joint Terrorism Task Force (JTTF), which includes the Pentagon Force Protection Agency and the Pennsylvania State Police, with assistance from the Harrisburg Bureau of Police. Assistant U.S. Attorney Daryl F. Bloom and Trial Attorneys Robert Sander and Adam L. Small of the National Security Division’s Counterterrorism Section prosecuted the case.
Passaic County Man Who Operated Clifton, New Jersey, Ambulance Company Despite Ban Sentenced to 18 Years in PrisonRead the Press Release
NEWARK, N.J. – A Clifton, New Jersey, man was sentenced today to 216 months in prison for health care fraud, obstructing a federal audit, and other charges associated with his illegal operation of an ambulance company despite having been banned from participating in federal health care programs, U.S. Attorney Paul J. Fishman announced.
Imadeldin Awad Khair, a/k/a “Nadr Awad,” 57, was previously convicted of all 17 counts of an indictment charging him with health care fraud, obstructing a federal audit, tax evasion, and money laundering. He was convicted following a nine-day bench trial before U.S. District Judge Susan D. Wigenton, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence presented at trial:
In 2004, as a result of his conviction on a New Jersey state health care fraud charge, Khair was excluded from participating in any capacity in Medicare, Medicaid, or other federal health care programs for a minimum of 11 years. After realizing that he would be excluded from federal health care programs, Khair began operating a business named K&S Invalid Coach in his brother’s name. Since the date of his exclusion, Medicare and Medicaid paid over $9 million in claims submitted by K&S, none of which would have been paid had Medicare and Medicaid known that Khair was operating the business.
Khair’s plan to defraud Medicare and Medicaid began almost immediately after he was excluded by authorities from participating in federal health care programs. In 2004 and 2005, Khair recruited a business associate to tell authorities that Khair was his full-time employee so that Khair could continue running K&S in violation of his exclusion. Khair also used fraudulent paystubs provided by his business associate to convince authorities that he was not violating the terms of his exclusion.
In 2014, when special agents with the FBI and the U.S. Department of Health and Human Services, Office of Inspector General, executed a search warrant at K&S’s offices, Khair’s top managers directed employees via group text message to tell the agents that Khair’s brother was really in charge at K&S. In addition, on the first day of trial, Khair tried to influence a government witness just outside of the courtroom by claiming that he had over two dozen employees who were going to testify that his brother had really been in charge at K&S.
Khair also paid numerous K&S employees, including nearly all of the employees’ overtime wages, “off the books” and without withholding the necessary payroll taxes. To carry out the tax evasion scheme, Khair paid the wages in cash or handwritten check and directed K&S employees to keep two separate sets of books. Khair then directed company employees to send only the fraudulent set of books to the company’s payroll accountant.
In response to a U.S. Department of Labor audit of K&S in 2014, Khair held an employee meeting in which he directed K&S employees to lie to the Department of Labor by stating that they never worked more than 80 hours in a biweekly pay period. Khair also directed K&S employees to alter and falsify K&S timekeeping records to match the false amounts previously reported to the company’s payroll accountant.
The money laundering counts arose from K&S checks that were written and endorsed by Khair and made payable to “cash” or Khair himself, which were used to pay the undisclosed wages and enrich Khair personally.
In addition to the prison term, Judge Wigenton ordered Khair to serve three years of supervised release and pay restitution of $8.8 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Danielle M. Corcione and Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division in Newark.
U.S. Attorney Fishman reorganized the health care fraud practice shortly after taking office, creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.32 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Harvey R. Poe Esq., Roseland, New Jersey
Omaha Woman Sentenced for Wire FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that on January 30, 2017, Patricia Urbanovsky of Omaha, Nebraska, age 31, was sentenced for sixteen (16) counts of wire fraud. The Honorable Joseph F. Bataillon, Senior United States District Court Judge, sentenced Urbanovsky to a term of sixty-three (63) months imprisonment. There is no parole in the federal system. After her release from prison, Urbanovsky will begin a term of supervised release of 3 years. Urbanovsky was also ordered to make restitution totaling almost $4.7 million dollars. Urbanovsky was immediately remanded to the custody of the United States Marshal following the sentencing hearing.
An investigation conducted by the Omaha Police Department, Federal Bureau of Investigation and Internal Revenue Service determined that as a part of a scheme and artifice to defraud, from on or about May 2014, and continuing through on or about at least March 2015, Urbanovsky personally, and through Creative Creations, marketed and promoted the sale of discounted vacation packages and vouchers associated with Southwest Airlines and Southwest Vacations. The investigation determined, however, that actual airline ticket and vacation package costs associated with the sold vouchers were significantly more than the amount a customer paid to purchase the voucher or vacation package.
As the scheme progressed, it was Urbanovsky’s intention that money used to purchase actual airline tickets or vacation packages for early voucher customers would come from money paid in by newer voucher customers. While this practice enabled the continuance of the scheme, it was fundamentally unprofitable as the actual cost of individual airline tickets purchased by Urbanovsky consistently exceeded the cash collected from the corresponding sales of vouchers. In spite of this, Urbanovsky continued to solicit customers by promising vouchers below the market rate.
In furtherance of the scheme, Urbanovsky falsely represented to employees and customers she had a professional relationship with a purported Vice President of Southwest Vacations and that through this individual she was able to receive a discounted price on Southwest Airline tickets. To further the scheme, Urbanovsky created an email account which she used to send emails appearing to be from the purported Vice President of Southwest Vacations. These emails contained false representations suggesting that Urbanovsky was able to receive discounts on flights purchased from Southwest Airlines. Southwest Airlines had no affiliation with Urbanovsky or Creative Creations.
Square, Incorporated, which was the third party credit card processor for Creative Creations and the primary victim, suffered more than $4.6 million in losses as a result of credit card charge backs from Urbanovsky’s Creative Creations accounts. In total, 9 victims sustained losses totaling almost $4.7 million dollars.
This case was investigated by the Omaha Police Department, Federal Bureau of Investigation and Internal Revenue Service.
Olathe Woman Pleads Guilty in Identity Theft SchemeRead the Press Release
KANSAS CITY, KAN. – An Olathe woman pleaded guilty Monday in a scheme to collect income tax refunds by creating companies that existed only on paper, U.S. Attorney Tom Beall said.
Raquel Odegbaro, 39, Olathe, Kan., pleaded guilty to one count of conspiracy to defraud the government, one count of aggravated identity theft and one count of mail fraud.
Odegbaro was the owner of Cokeza Styles, an online business that sold hair products. In her plea, she admitted she and her co-conspirators created a series of fictitious companies and filed tax returns in the names of so-called employees by providing false information about wages earned, amounts withheld and refunds due. The false tax returns directed the Internal Revenue Service to deposit refunds electronically to reloadable credit cards controlled by the conspirators. The individuals whose names appeared on the refunds never actually worked for the fictitious companies.
In addition, the conspirators used stolen Social Security numbers to apply for unemployment benefits from the Kansas Department of Labor. They created more than nine fictitious companies and registered them with the labor department. They filed false claims in the names of employees who purportedly were terminated without fault.
Odegbaro is set for sentencing on April 19, 2017. Both parties have agreed to recommend a sentence of 75 months in federal prison and restitution of more than $894,000.
Co-defendants Abdirizak Aden, 32, Kansas City, Mo; Alexander Limihagati, 33, Overland Park, Kan., Zia Mkubi Kajanja, 40, Overland Park, Kan., are awaiting trial.
Beall commended the Internal Revenue Service – Criminal Investigation, the U.S. Department of Labor, Office of Inspector General, Office of Labor and Racketeering and Fraud Investigations, the Kansas Department of Children and Families, the U.S. Department of Housing and Urban Development – Office of Inspector General, the U.S. Department of Education – Office of Inspector General, and the U.S. Department of Agriculture – Office of Inspector General and Assistant U.S. Attorney Jabari Wamble for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Okmulgee Man Pleads Guilty to Firearm, Ammunition PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that STEVE EARL PERRY JR, age 26, of Okmulgee, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM & AMMUNITION, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e), punishable by no more than 10 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about November 14, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce a firearm which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the District 25 District Attorney’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney Dean Burris represented the United States.
Ohio Doctor Pleads Guilty to Running South Side Medical Center as Drug Premises and Evading More Than $3.5 Million in TaxesRead the Press Release
Today the government unsealed a plea agreement with the owner and operator of Columbus Southern Medical Center, which provided unlawful prescriptions of controlled substances to addicts throughout the Midwest and who engaged in a series of schemes to evade more than $3.5 million in taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio.
Kevin B. Lake, 50, of New Albany, Ohio, pleaded guilty to drug, tax and fraud charges and agreed to the forfeiture of what remains from the $29 million in seized funds earned from the clinic’s illegal activities, after restitution is paid from the funds.
According to court documents, Lake owned and managed Columbus Southern Medical Center through one or more corporate or trust entities which he used to insulate himself from the illegal drug trafficking being conducted at the clinic.
In the filed plea document, he admitted that between 2006 and 2013, he knew doctors and staff at the 2912 South High Street clinic prescribed controlled substances to patients without a legitimate medical purpose. During that time, hundreds of patients showed up daily – 85 percent of whom were returning patients – to receive prescriptions of oxycodone, hydrocodone and Xanax. The percentage of patients who were prescribed these controlled substances rose each year, jumping from nearly 60 percent in 2004 to nearly 92 percent in 2009 and 2010.
Lake agreed to plead guilty to maintaining the clinic as a drug premises. He also admitted that he exclusively controlled all of the proceeds generated by the illegal activity being conducted by the doctors, physician assistants and staff at the clinic, which was more than $38 million in payments for patient visits. He admitted to engaging in more than $20 million in money laundering transactions with these illegal drug proceeds.
The doctor also agreed to plead guilty to tax evasion on his personal income tax returns and admitted to filing fraudulent tax returns for his corporations and trusts. He paid himself more than $90,000 in 2010 through 2013 from the clinic entities, which he did not report as income, but instead disguised as phony rental payments ostensibly for use of his personal residence for corporate retreats. He also took inflated charitable contribution deductions on his individual income tax returns. In addition, Lake admitted causing the filing of corporate tax returns that falsely claimed inflated depreciation deductions for nearly $7.4 million in so-called “equipment” purchases by his corporations from his trust for tax years 2005 through 2011. He also admitted to falsely reporting these purchases as capital gains on his trust tax returns rather than as ordinary income, thereby securing a much lower tax rate. Lake’s tax crimes caused a tax loss of more than $3.5 million.
After the DEA first appeared at the clinic in June 2010, Lake took several steps to separate himself from the drug premises; he stopped paying himself a salary, and instead filed a fraudulent claim for disability payments from his two disability insurers. The insurance companies ultimately denied his claims, and only paid out $18,000. Lake also sold the clinic’s remaining stock to employees through an Employee Stock Ownership Plan (ESOP) for the inflated price of $14 million.
After the ESOP sale and the denial of his fraudulent disability claim, Lake fraudulently filed for and collected unemployment benefits, stealing more than $20,000 in government funds.
Finally, the doctor admitted to defrauding the Bureau of Workers’ Compensation by having employees upcode office visits in order to bill for higher level medical services in addition to those provided by physician assistants as if they were provided by physicians, causing a loss of more than $260,000.
As part of the plea agreement, and due to Lake’s cooperation in the government’s investigation, the parties involved recommended to the court that Lake receive a sentence of 60 months in prison. Judge Watson will consider the recommended sentence at a sentencing hearing that has yet to be scheduled.
“At the same time Dr. Lake was running his medical center as an illegal drug premises, he took every opportunity to cheat the U.S. Treasury out of millions of dollars in taxes,” said Acting Deputy Assistant Attorney General Goldberg. “As the income tax filing season begins, Lake’s guilty plea is a stark reminder of what awaits those filing false returns -- no matter their profession, income level or the complexity of their scheme.”
“For seven years, Kevin Lake operated Columbus Southern Medical Center as a pill mill,” said U.S. Attorney Glassman. “He got rich by feeding the addictions of hundreds and hundreds of people. Thanks to the thorough investigation of federal, state, and local law enforcement agencies, however, Lake has agreed to plead guilty to drug, tax, and fraud charges, forfeit his ill-gotten gains, and serve time in federal prison for his misdeeds.”
“Today’s guilty plea exemplifies DEA’s determination to combat the troubling prescription drug and opiate abuse problem currently plaguing this country,” said Drug Enforcement Administration (DEA) Special Agent in Charge Timothy J. Plancon. “Kevin Lake abused his position of trust and jeopardized the lives of many individuals, by conspiring with others to illegally prescribe controlled substances that ended up being consumed throughout Ohio and the surrounding states. This investigation uncovered the elaborate lengths that Lake undertook to conceal his illegal profits, and the seizure of $29 million from Lake is indicative of the scope of his illegal activity. Lake’s guilty plea should serve as a warning to all medical professionals that if you prescribe medicine for personal gain, you will be prosecuted to the fullest extent of the law. This investigation was a success thanks to the outstanding investigative work by all of our federal, state, and local law enforcement partners.”
“Dr. Lake’s conduct detailed in this case is egregious and had such a negative impact on our community,” said Acting Special Agent in Charge Troy N. Stemen of Internal Revenue Service Criminal Investigation (IRS-CI), Cincinnati Field Office. “This is an important victory for the citizens of Central Ohio. Dr. Lake not only fueled the prescription drug problem in Central Ohio, but he supported addiction in several parts of the country. As a result of this joint investigative effort, the government has seized a significant portion of the illegal proceeds through asset forfeiture, and Dr. Lake is faced with having to pay back taxes with interest and steep penalties.”
“The Office of Inspector General congratulates the U.S. Attorney’s Office and all of the investigators on this important case,” said Special Agent in Charge James Vanderberg of the U.S. Department of Labor, Office of Inspector General’s Chicago Region. “The OIG will continue to work with our law enforcement partners to investigate unemployment insurance fraud and employee retirement plan fraud schemes.”
“There is no doubt that today’s opiate epidemic is due in large part to the overprescribing of prescription pain medication across this state,” said Ohio Attorney General Mike DeWine. “This defendant preyed on those battling addiction in an effort to make millions from their suffering. An incredible amount of hard work went into investigating and prosecuting this case. Because of this team effort, this pill mill operation has been shut down.”
“We place trust in our healthcare professionals to provide quality treatment that improves the health of injured workers,” said Ohio Bureau of Workers’ Compensation (BWC) Administrator/CEO Sarah Morrison. “We’re pleased to do our part to address the problem of prescription drug abuse in Ohio, as well as put an end to Dr. Lake’s fraudulent billing scheme.”
“It is through the hard work of the investigators and the cooperation of agencies at the federal, state, and local level that led to the successful investigation and prosecution of this pill mill,” said Columbus Police Deputy Chief Michael Woods.
Three co-defendants have pleaded guilty as part of this case. Dr. Terry Dragash was sentenced in October 2014 to one year in prison for conspiracy to distribute drugs as a result of his conduct in prescribing at the clinic. Dr. David Rath pleaded guilty to a similar conspiracy charge. And in December 2015, Karen Climer – another employee of Lake’s – pleaded guilty to conspiracy and was sentenced to six months in prison after the government revealed she was cooperating in the investigation into Lake.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Glassman commended the investigation of this case by the DEA Tactical Diversion Squad – including the Ohio Attorney General’s Bureau of Criminal Investigation (BCI) and Columbus Division of Police – IRS Criminal Investigation, Ohio Bureau of Workers’ Compensation, Department of Labor OIG and Employee Benefits Security Administration, Central Ohio Drug Enforcement Task Force, Franklin County Sheriff’s Office, Ohio State Board of Pharmacy and the State Medical Board of Ohio, as well as Assistant U.S. Attorney Kenneth F. Affeldt and Department of Justice Tax Division Trial Attorneys Richard M. Rolwing and Carl F. Brooker, who are representing the United States in this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York Man Found Guilty on Narcotics Trafficking ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEVEN WILLIAMS was found guilty Friday of conspiring to distribute kilogram quantities of heroin and cocaine. WILLIAMS was convicted after a one-week jury trial before U.S. District Judge Lorna G. Schofield.
Manhattan U.S. Attorney Preet Bharara said: “As the jury swiftly found, Steven Williams used his music business as a front to traffic in massive quantities of cocaine and heroin. For pumping 100 kilograms of cocaine and more than 40 kilograms of heroin into New York City streets, Williams now stands convicted of federal narcotics conspiracy.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
Between 2009 and August 2015, WILLIAMS conspired with others to traffic in excess of 100 kilograms of cocaine and 40 kilograms of heroin from California to New York. WILLIAMS held himself out to be in the music business, and used his music business as a front to ship multi-kilogram quantities of heroin and cocaine across the country via industrial freight shipping companies, with heroin and cocaine hidden in speakers, amplifiers, and copy machines.
* * *
WILLIAMS, 46, of New York, faces a mandatory minimum sentence of 10 years in prison, and a maximum sentence of life in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. A sentencing date has not yet been scheduled before Judge Schofield.
Mr. Bharara praised the outstanding investigative work of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service, Criminal Investigation Division, the Federal Bureau of Investigation, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, the New York Department of Taxation and Finance, the Rockland County Sheriff’s Office, the Clarkstown Police Department, the Port Washington Police Department, and the New York State Department of Corrections and Community Supervision. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), which is a federally funded crime fighting initiative.
This case is being prosecuted by the Office’s Narcotics Unit. Assistant United States Attorneys Rebekah Donaleski and Lara Pomerantz are in charge of the prosecution.
Nevada Woman Pleads Guilty to Taking 'Food Stamps' for Meth, CashRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nevada, Mo., woman pleaded guilty in federal court today to her role in a conspiracy to exchange “food stamps” for methamphetamine or cash.
Julie M. Drake, 48, of Nevada, pleaded guilty before U.S. District Judge M. Douglas Harpool to one count of conspiracy to commit wire fraud and one count of possessing methamphetamine with the intent to distribute.
By pleading guilty today, Drake admitted that she participated in a conspiracy from Oct. 14 to Aug. 30, 2015, in Bates and Vernon Counties. Drake accepted Supplemental Nutrition Assistance Program (SNAP) benefits, better known as “food stamps,” in exchange for methamphetamine or a percentage of the benefits in cash. Drake then used the EBT cards and PINs belonging to others to buy her own food.
Vernon County Sheriff’s Department officers executed a search warrant at Drake’s residence on Oct. 14, 2015. During a search of the master bedroom, officers found a purse that contained 22 baggies of methamphetamine, weighing approximately 100 grams, packaged for distribution. Officers also found two digital scales in the bedroom closet, as well as a safe that contained $4,720. Four EBT cards belonging to four other individuals were found on the dresser.
Investigators then reviewed video surveillance from the Wal-Mart stores in Nevada and Lamar, Mo., which showed Drake using the EBT cards found in her bedroom.
In interviews with federal agents, one of the recipients of the EBT cards admitted he used his EBT benefits to buy a quarter ounce of methamphetamine from Drake. He told investigators that a $55.94 transaction was payment for the methamphetamine, which would have cost approximately half the value of the transaction. Another one of the recipients admitted to selling his EBT benefits to Drake for 50 cents per each $1 in benefits. She would come to his residence to retrieve the EBT card, call the 1-800 number on the back of the EBT card to verify the balance, and then give him half of the value in cash.
Under federal statutes, Drake is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. 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. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Nhan D. Nguyen and Patrick Carney. It was investigated by the U.S. Drug Enforcement Administration, the U.S. Department of Agriculture, Office of Inspector General and the Vernon County, Mo., Sheriff’s Department.
Neshoba County Residents Sentenced to Prison for Assault on Choctaw Tribal LandsRead the Press Release
Jackson, Miss - Robert Lee Jim, age 32 and Jackie Devon Stokes, Jr., age 33, both Choctaw Indians and residents of Neshoba County, were sentenced on January 23, 2017, by Senior U.S. District Judge William H. Barbour, for assault resulting in serious bodily injury, announced U.S. Attorney Gregory K. Davis. The defendants previously pled guilty to the charges.
Robert Lee Jim was sentenced to 96 months in federal prison followed by three years of supervised release, and Jackie Devon Stokes, Jr. was sentenced to 84 months in prison followed by three years of supervised release. Both defendants were also ordered to pay a $1500 fine.
The crime took place on April 6, 2011 at a residence in Neshoba County on lands within the confines of the Choctaw Indian Reservation. The victim was brutally attacked and assaulted by both defendants. The victim was treated at University of Mississippi Medical Center.
This case was investigated by the Federal Bureau of Investigation along with the Choctaw Tribal Police Department. It was prosecuted by Assistant U.S. Attorney Abe McGlothin, Jr.
Naples Man Sentenced to More Than Eleven Years in Federal Prison for $2.2 Million Dollar Online Fraud and Identity Theft SchemeRead the Press Release
Fort Myers, Florida – Senior United States District Judge John E. Steele today sentenced Jeffrey Ihm (49, Naples) to 11 years and 8 months in federal prison for wire fraud and aggravated identity theft. The Court ordered him to pay restitution totaling more than $2.2 million to financial institutions Wells Fargo Bank, CIT, and Key Equipment Finance. The Court also entered a forfeiture money judgment of over $2.2 million and specifically ordered the forfeiture of $315,000 of fraud proceeds previously seized from a Suncoast Credit Union checking account, as well as a house located in the Riverstone Community in Naples, that had been purchased with proceeds of the fraud scheme.
According to court documents, between February 2013 and July 2014, Ihm assumed the identities of and posed as executives of a number of companies. He then generated false and fraudulent emails and other documents in the names of the companies’ executives in order to defraud financial institutions, causing them to transfer to him $2,234,681 to which he was not entitled. Ihm used the money to purchase a house and otherwise enrich himself.
The Jacksonville Office of the Federal Bureau of Investigation and the Fort Myers Office of the United States Secret Service unraveled the electronic cyber trail tracing back to computer equipment associated with Ihm in Naples. Victims were identified in Jacksonville and Sarasota.
This case was investigated by the Fort Myers Office of the United States Secret Service and the Jacksonville Office of the Federal Bureau of Investigation with assistance from the Economic Crimes Unit of the Collier County Sherriff’s Office. The case was prosecuted by Assistant United States Attorneys David G. Lazarus and Dale R. Campion.
Montana Man Pleads Guilty to Transporting a Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
***In order to protect the privacy of the child victim in this case, the United States Attorney’s Office is requesting that the media not disclose the victim’s name or display an image of the victim when reporting this story. We are aware that her identity and images were released to the public in the course of the Amber Alert. This is simply a request, and we understand that the decision is ultimately left to your discretion. Please do not hesitate to contact our Public Information Officer below with any questions.***
MISSOULA – Rodney Lee Zahn, 60, formerly of Sheridan, Montana, pleaded guilty today in Missoula federal court to transportation of a minor with intent to engage in criminal sexual activity. He faces a mandatory minimum prison sentence of 10 years to life, up to $250,000 dollars in fines, and not less than 5 years of supervised release. He also agreed to forfeit the Ford pick-up truck and camper used to transport the child across state lines. U.S. District Court Magistrate Jeremiah C. Lynch presided over the change of plea hearing and set sentencing for May 18, 2017, in Missoula.
In court documents, federal prosecutor Cyndee Peterson stated that if called upon to prove its case at trial, the United States was prepared to demonstrate that in July of 2016, Zahn befriended a family in Sheridan, Montana, including a 16-year old girl. On August 2, 2016, Zahn and the child covertly left Sheridan. When the family discovered the child was missing, an Amber Alert was issued for the child. Zahn and the child were located in Casper, Wyoming. Zahn admitted he had sexual intercourse with the child twice and stated he knew she was 16 years old. FBI Laboratory analysis of biological kits taken from Zahn and the child were consistent with Zahn’s admissions regarding sexual contact.
This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Federal Bureau of Investigation, the Madison County Sheriff’s Office, and the Casper Wyoming Police Department.
Mexican National Sentenced to 51-Months in Federal Prison for Drug Conspiracy Involving over Ten Kilograms of MethamphetamineRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Pablo Orlando Rivera-Pachecho, a 37-year old Mexican national, was sentenced by United States Chief District Judge Michael J. Reagan to 51 months in federal prison for one count of conspiring to distribute and possess with the intent to distribute methamphetamine, three years of supervised release to follow the imprisonment, a $300 fine, and a $100 special assessment fee.
Facts revealed at the sentencing and plea hearings that on one occasion, Rivera served as a courier for a drug organization in Mexico. On that occasion, Rivera received over ten kilograms of methamphetamine. At sentencing, Chief Judge Reagan commented that the offense involved "lots of methamphetamine," which is "horrible" and "ruins families." In sentencing Rivera to 51- months of imprisonment, 3 years of supervised release, a $300 fine and a $100 special assessment fee, Chief Judge Reagan indicated that this sentence punishes Rivera, reflects the seriousness of the offense, and promotes respect for the law.
Evidence in support of this prosecution was obtained in an investigation conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking
organizations. Agencies participating in this case include the Drug Enforcement Administration, the Internal Revenue Service, Criminal Investigations, the Illinois State Police, and Fontana, California Police Department. This case was prosecuted by Assistant United States Attorney Monica A. Stump.
###
Methamphetamine Trafficker Sentenced to More than 24 Years in Federal PrisonRead the Press Release
An Iowa man who distributed pounds of ice methamphetamine was sentenced today to more than 24 years in federal prison.
Marcos Perez-Trevino, age 46, from Marshalltown, Iowa, received the prison term after an August 16, 2016, jury verdict finding him guilty of conspiring to distribute ice methamphetamine.
Evidence at trial showed Perez-Trevino had been involved in the distribution of ice methamphetamine in the Marshalltown area since at least 2014. As time passed, Perez-Trevino became involved in distributing higher quantities of ice methamphetamine. He arranged for multiple pounds of methamphetamine to be shipped from Mexico to Iowa. Once the drugs were in his possession in Iowa, Perez-Trevino distributed the methamphetamine to a network of individuals in multiple ounce quantities. Further, on August 12, 2015, police in Oklahoma stopped a car driven by Perez-Trevino. Police found and seized almost two pounds of methamphetamine from the car. He claimed he had found the methamphetamine at a nearby rest stop.
Perez-Trevino was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Perez-Trevino was sentenced to 292 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Perez-Trevino is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department, LaPorte City Police Department, Hudson Police Department, Evansdale Police Department, University of Northern Iowa Police Department, Waverly Police Department and the Bremer County Sheriff’s Office; the Mid-Iowa Task Force, comprised of the Marshalltown Police Department, Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Grundy County Sheriff’s Office, Hardin County Sheriff’s Office, Iowa Falls Police Department, Eldora Police Department and the Dysart Police Department; and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-2037.
Follow us on Twitter @USAO_NDIA.
Massachusetts Resident Pleads Guilty for Role in Attempted Illegal Gun Purchase in HooksettRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice today announced that Anthony Sok Say pleaded guilty in federal court to joining an illegal scheme to purchase a firearm. Sok Say pleaded guilty to one count of the federal crime of Conspiracy to Make a False Statement in Connection with the Attempted Acquisition of a Firearm. Sok Say, 25 years old, lived in Lowell, Massachusetts, prior to his arrest.
According to court documents and statements made during today’s hearing, Sok Say and a co-conspirator, Grace Corcoran, visited a federally licensed firearms dealer in Hooksett, New Hampshire on October 21, 2015. Sok Say solicited Corcoran, a New Hampshire resident to buy a hand gun for Sok Say. As a resident of Massachusetts, Sok Say could not purchase a hand gun in New Hampshire himself. Under federal law, it is illegal for a firearms dealer to sell handguns to an individual from another state.
In connection with the attempted hand gun purchase, Corcoran filled out a form legally required for all intrastate over-the-counter gun purchases. On that form, Corcoran falsely certified that she was the “actual purchaser” of the hand gun. The transfer of firearms was never accomplished because employees of the firearms dealer became suspicious, declined to complete the transaction and notified the authorities.
Sok Say’s sentencing is scheduled for May 16, 2017. Corcoran pleaded guilty to a related charge on January 12, 2017, and is scheduled for sentencing on April 25, 2017.
This case was prosecuted as part of Project Safe Neighborhoods, a national initiative undertaken by the U.S. Department of Justice to reduce gun crime in America through, among other things, community outreach and vigorous prosecution of firearms offenses.
This matter was investigated by the Bedford Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Manchester (N.H.) Police Department. The case is being prosecuted by Assistant United States Attorney Bill Morse.
###
Mason County man pleads guilty to bringing weapon into federal courthouseRead the Press Release
HUNTINGTON, W.Va. – A Mason County man who was caught by court security with a weapon while entering the Sidney L. Christie United States Courthouse and Federal Building in Huntington in April 2016 pleaded guilty today, announced United States Attorney Carol Casto. Sidney Huddleston, III, 69, of Apple Grove, entered his guilty plea to attempted possession of a dangerous weapon in a federal court facility.
On April 12, 2016, Huddleston entered the federal courthouse in Huntington and approached the security screening station. Huddleston informed a court security officer that he was there to see his probation officer. Huddleston was walking with a cane and provided the cane to the officer to be x-rayed. The officer subsequently discovered that the cane was concealing a sword-type blade attached to the top handle of the cane. The blade was approximately 14 inches in length and was accessible by unscrewing the handle of the cane from the shaft. Huddleston was detained and provided a statement to an officer, admitting that he knew the cane concealed the blade.
Huddleston faces up to two years in federal prison when he is sentenced on May 1, 2017.
The United States Marshals Service conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
- Follow us on Twitter: SDWVNews
Man Arrested for Possession of Firearm with Obliterated Serial NumberRead the Press Release
St. Thomas, USVI- Jashawn Bailey, 30, was arrested Friday on a criminal complaint charging him with one count of possession of a firearm with an obliterated serial number, United States Attorney Ronald W. Sharpe announced today. Bailey made his initial appearance on the same day before United States Magistrate Judge Ruth Miller. He was released pending a preliminary hearing set for Wednesday.
According to the complaint, on December 14, 2016, the Virgin Islands Police discovered a .45 caliber Taurus firearm with an obliterated serial number wrapped in a T-shirt and hat at a crime scene. Subsequently, Bailey, who was at the scene, admitted that the firearm belonged to him. If convicted, Bailey faces a maximum sentence of 10 years in prison and a $250,000 fine.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Madison County Man Sentenced to Federal Prison for Child Pornography OffensesRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Michael E. Myers, a 60-year old resident of Godfrey, Illinois, was sentenced in United States District Court to 235 months’ imprisonment for one count of distribution of child pornography and one count of receipt of child pornography. The sentences will run concurrently. Meyers was also sentenced to 5 years of supervised release to follow imprisonment and ordered to pay $2500 restitution to one of the identified victims of the child pornography images.
According to court documents, on April 14, 2016, the Madison County Sheriff’s Department received a CyberTipline report from the National Center for Missing and Exploited Children that an email account belonging to Myers was used to send and receive images of child pornography. A subsequent investigation by detectives with the Sheriff’s Department revealed that on March 24, 2016, Myers sent another individual a video via email containing child pornography. Detectives further verified that on March 29, 2016, Myers received and viewed via email a video containing child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the 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."
The case was investigated by the Madison County Sheriff’s Department and prosecuted by Assistant United States Attorney Christopher Hoell.
###