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Tuesday 6 December 2016
Two Sentenced for Trafficking in Counterfeit Viagra and CialisRead the Press Release
HOUSTON – Two men have been sentenced to federal prison following convictions of conspiring to traffic in counterfeit Viagra and Cialis and introducing adulterated and misbranded prescription drugs into interstate commerce, announced U.S. Attorney Kenneth Magidson. Martez Alando Gurley, 41, and Victor Lamar Coates, 47, admitted they each trafficked more than 10,000 counterfeit tablets.
Today, U.S. District Judge David Hittner sentenced Gurley to 75 months in federal prison and ordered him to pay $410,508 in restitution to Pfizer Inc. and Eli Lilly and Company - the licensed patent trademark holders of Viagra and Cialis. Coates received a sentence of 46 months and must pay $314,565 in restitution. Each defendant must also serve three years of supervised release following completion of their prison terms.
“The Food and Drug Administration (FDA) is charged with ensuring that prescription drugs distributed to U.S. consumers are safe and effective. When criminals introduce prescription drugs into the U.S. that are not FDA-approved, they jeopardize the public’s health,” said Special Agent in Charge Spencer E. Morrison of the FDA - Office of Criminal Investigations’ (OCI) Kansas City Field Office. “Our office will continue to pursue and bring to justice those whose quest for profits places the public’s health at risk through the distribution of illegitimate drugs.”
Gurley was convicted of trafficking at least 12,960 counterfeit Viagra and counterfeit Cialis tablets from his home in Napa, California, while Coates was convicted of trafficking at least 10,288 counterfeit Viagra and counterfeit Cialis tablets from his home in Philadelphia, Pennsylvania. Both defendants sold the counterfeit drugs to individuals in the Houston area for further distribution to unsuspecting customers. Gurley and Coates illegally imported the counterfeit into the United States from sources in China.
Testing on samples of the counterfeit Viagra revealed the drugs contained less than the 100 mg of active pharmaceutical ingredient (API) listed on the labels, while testing on the counterfeit Cialis revealed small quantities of the Viagra API and none of the Cialis API. In addition, some of the counterfeit Viagra tablets were found to contain the unrelated compound 2-MBT. The counterfeit Viagra and Cialis tablets looked like the authentic products and included labels and packaging that closely resembled the registered trademarks of Eli Lilly and Company, and Pfizer Inc.
In arriving at the sentences, Judge Hittner considered the fact that the illegally imported counterfeit drugs did not contain the correct medication indicated on the labelling and could cause harm to unsuspecting consumers of the pills.
Gurley was immediately taken into custody following the hearing pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future, while Coates was permitted to remain on bond and voluntarily surrender at a later date.
The FDA - OCI and Homeland Security Investigations conducted the investigations. Assistant U.S. Attorney Julie Redlinger prosecuted the case.
Two Indicted for Heroin Introduction at USP CanaanRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton indicted Sable Daniel, age 27, of Philadelphia, Pennsylvania, for distribution of heroin and providing an inmate with contraband and Russell Whitmore, age 33, an inmate at United States Penitentiary, Canaan (USP Canaan), for possession of contraband by an inmate.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Daniel delivered heroin to Whitmore during a visit at USP Canaan.
The investigation was conducted by the Federal Bureau of Investigation and officers at USP Canaan. The case is being prosecuted by Assistant United States Attorney Sean A. Camoni.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three charged with mail and wire fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA –Federal indictments were returned today charging three individuals with mail and wire fraud charges, United States Attorney William J. Ihlenfeld, II, announced.
Tyree Skipper, 44, currently incarcerated at Federal Correctional Institution Hazelton, and Debra Skipper, 60, of Euclid, Ohio were each charged with one count of “Conspiracy to Commit Mail and Wire Fraud” and two counts of “Wire Fraud.” Tyree Skipper was also charged with two counts of “Aggravated Identity Theft.” They each face up to twenty years in prison and a fine of up to $250,000 for both the conspiracy and the wire fraud charges, while Tyree Skipper faces an additional two years in prison on the identity theft charges.
Daniel Aaron Stone, 36, currently incarcerated at Federal Correctional Institution Beckley was charged in a separate indictment with one count of “Attempt to Commit Wire Fraud,” three counts of “Aggravated Identity Theft,” and two counts of “Possession of Fifteen or More Access Devices with Intent to Defraud.” He faces up to twenty years in prison and a fine of up to $250,000 for the attempt charge; two years in prison for the aggravated identity theft charge; up to 10 years in prison and a fine of up to $250,000 for the each of the access device charges.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is handling the cases on behalf of the government. The Internal Revenue Service, Criminal Investigations, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Texas Man Sentenced to over 15 Years’ Imprisonment for Producing Child PornographyRead the Press Release
SAN FRANCISCO – Marty Allen Rochester was sentenced today to 186 months in prison for producing child pornography announced United States Attorney Brian J. Stretch and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin.
Rochester, 55, of Magnolia, Texas, pleaded guilty on July 19, 2016, to production of visual depictions of minors engaging in sexually explicit conduct. In July 2014, Rochester used online chat services, including Skype, to contact a girl he eventually learned was nine years old at that time, and he persuaded her to create sexually explicit images of herself and send them to him. Rochester saved the images on his computer and sent them to another person with whom he later conspired to produce more sexually explicit depictions of the minor victim. Moreover, Rochester possessed more than 200 sexually explicit images of minors and more than 25 sexually explicit videos of minors, some of which included depictions of pre-pubescent minors under the age of 12.
A federal grand jury indicted Rochester on January 28, 2016, charging him with distribution of child pornography, in violation of 18 U.S.C. § 2252; production of child pornography, in violation of 18 U.S.C. § 2251; and conspiracy to produce child pornography, in violation of 18 U.S.C. § 2251. Rochester pleaded guilty to the production charge.
The sentence was handed down by the Honorable Vince Chhabria, U.S. District Judge. In addition to the prison term, defendant was ordered to serve a ten-year period of supervised release, including conditions prohibiting his use of computers and Internet, prohibiting him from frequenting locations where children may be present, and requiring him to submit to searches upon request of law enforcement, among other conditions. Rochester will begin serving the sentence immediately.
Assistant U.S. Attorney Andrew Dawson is prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of an investigation by HSI.
Ten Defendants Charged with Drug Trafficking and Attempted Robbery in the Queensbridge Houses and West VirginiaRead the Press Release
Earlier today, an indictment was unsealed in the United States District Court for the Eastern District of New York, charging seven defendants for their involvement in narcotics trafficking and an attempted Hobbs Act robbery in the Queensbridge Houses located in Long Island City, NY. Three additional defendants involved in narcotics trafficking in the Queensbridge Houses were indicted by the Queens County District Attorney’s Office and charged with felonies for selling cocaine. Six of the defendants are under arrest.
The federal defendants’ initial appearances and arraignments are scheduled this afternoon before United States Magistrate Judge Marilyn D. Go at the federal courthouse in Brooklyn, New York. The two state defendants’ initial appearances and arraignments are also scheduled for this afternoon in Queens County Supreme Court.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Richard A. Brown, District Attorney for Queens County; James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA); and James P. O’Neil, Commissioner, New York City Police Department (NYPD). The arrests follow a long-term investigation by the DEA and NYPD into the narcotics and related violence that has plagued the Queensbridge Houses for the last decade.
As alleged in the indictment and other court documents filed by the government, all but one of the seven federal defendants were members of a narcotics conspiracy that trafficked in a significant amount of crack cocaine in and around the Queensbridge Houses, the largest public housing development in the United States. Court-authorized wiretaps of telephones used by two of the defendants disclosed that during just a nine-month period, the defendants’ drug trafficking operation was responsible for the distribution of more than 280 grams of crack cocaine. In addition, three of the defendants – Edward Carrillo, Johnnie Monroe, and a co-conspirator – trafficked more than 400 grams of fentanyl as well as quantities of oxycodone. The distribution of the fentanyl pills by the defendants resulted in the death of a young mother in West Virginia. The three federal defendants continued to traffic in the deadly pills even after having learned about the woman’s death, and one of the defendants went so far as to proclaim that the deadly pills would “feed up the projects.”
Defendants Carrillo, Monroe, and a co-conspirator also are charged with an attempted armed robbery of an individual they believed to be traveling from West Virginia to New York carrying more than $100,000 in drug proceeds. When the defendants tried to commit the robbery, the putative drug trafficker never showed up but, as one of the defendants put it, if he had appeared they “would have taken him down” with their “biscuits” – a term the defendants used to refer to firearms.
“Today’s arrests are the latest example of the success that can be achieved through federal, state, and local law enforcement cooperation to combat violence and narcotics trafficking in our communities. The defendants wantonly distributed large quantities of addictive narcotics into our communities, some of which proved deadly. Even the death of a young mother did not stop their drug trafficking – but these arrests will.” Mr. Capers thanked the Queens County District Attorney’s Office for its participation and assistance in the investigation.
Queens County District Attorney Brown stated, “This investigation is just the latest result of a coordinated law enforcement and prosecutorial anti-drug initiative that began soon after I took office more than twenty-five years ago. Since that time, we have targeted hundreds of drug dealers operating in and around public housing developments throughout Queens and have put a significant dent in the drug trafficking which has long troubled the residents of these developments. It is imperative that we stop those who flood our streets and lure our children into lives of crime.”
DEA Special Agent-in-Charge Hunt stated, “As evident in this investigation, local drug crews are just as much a public health threat than overseas drug cartels. As alleged, not only was this violent drug crew selling crack cocaine, oxycodone, and fentanyl from their front doors, but sending fatal doses to areas in West Virginia for resale. Fentanyl abuse is death, and these defendants capitalized on their products’ potency fueling more addiction and death in their own community.”
“This case is a classic example of teamwork among local, state, and federal partners in dealing with criminal activity that knows no geographical boundaries,” said Police Commissioner O'Neill. “Illegal drugs often go hand-in-hand with violence and death. By dealing with these issues through a well-coordinated approach, indictments like these can be successfully obtained.”
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the federal defendants face maximum sentences of life and defendants Carrillo, Monroe, and a co-conspirator face a minimum sentence of 20 years’ imprisonment for distributing fentanyl that resulted in death. If convicted, the state defendants face up to nine years in prison.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Andrey Spektor and Lindsay K. Gerdes are in charge of the prosecution. The state charges are being prosecuted by Assistant District Attorney Emily F. Collins, of the Queens District Attorney’s Gang Violence and Hate Crimes Bureau.
The Defendants:
Prosecuted by the United States Attorney’s Office:
TERRELL CARMICHAEL, also known as “Rell”
Age: 31
Long Island City, New YorkEDWARD CARRILLO, also known as “Super Ed”
Age: 43
New York, New YorkJOHNNIE MONROE, also known as “Nut”
Age: 46
Brooklyn, New YorkMICHAEL YOUNG, also known as “Littles”
Age: 32
Long Island City, New YorkProsecuted by the Queens County District Attorney’s Office:
MOHAMED SALEH, also known as “Arab”
Age: 30
Long Island City, New YorkSHAMAR STALLWORTH, also known as “Black”
Age: 31
Long Island City, New YorkE.D.N.Y. Docket No. 16-CR-617 (BMC)
Suspected Gang Member Sentenced on Gun 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 Darmetrius Braggs, 19, of Buffalo, NY, who was convicted of possession of a firearm in furtherance of drug trafficking activity, was sentenced to 60 months in prison by Chief U.S. District Court Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that Buffalo Police Department officers received information that the defendant robbed an individual at gun point on October 30, 2015. During the investigation, officers learned that Braggs would be at a party on Freund Avenue in Buffalo on November 7, 2015.
On November 7, 2015, undercover officers contacted Braggs by cellular telephone and arranged an undercover purchase of marijuana. The defendant told the officers to meet him near Genesee Street and Freund Avenue in Buffalo to purchase the marijuana. As officers arrived at the location, Braggs fled on foot and entered 22 Freund Avenue, where officers located the defendant. Officers also found a cellular telephone and multiple vials of what appeared to be marijuana near the residence’s rear entrance. In addition, officers recovered a loaded firearm in the back yard of 22 Freund Avenue.
The firearm recovered by officers resembles a firearm the defendant posed with multiple times on social media websites.
The sentencing is the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in- Charge Ashan Benedict, New York Field Division.
Stockbroker & Operator of $1.4 Million Ponzi Scheme Sentenced to More Than Five Years for Securities FraudRead the Press Release
STATESVILLE, N.C. – A stockbroker and operator of a $1.4 million Ponzi scheme was sentenced to 63 months in prison by U.S. District Judge Richard Voorhees today, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Charles Caleb Fackrell, 37, of Booneville, N.C., was also ordered to serve three years under court supervision after he is released from prison, and to pay $819,918 as restitution to his victims. Fackrell pleaded guilty to one count of securities fraud in April 2016.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and North Carolina Secretary of State Elaine F. Marshall.
According to filed court documents and today’s sentencing hearing, from about May 2012 to about December 2014, Fackrell executed a Ponzi scheme using approximately $1.4 million in funds he solicited from at least 20 victim investors in Wilkes County and elsewhere. According to court records, Fackrell was a stockbroker who used his position of trust to solicit victim investors and steer them away from legitimate investments to purported investments with “Robin Hood, LLC,” “Robinhood LLC,” “Robin Hood Holdings, LLC,” “Robinhood Holdings, LLC” and related entities (collectively, “Robin Hood”). These were entities Fackrell controlled and through which he could access the victims’ funds.
Court records indicate that Fackrell solicited his victim investors by making false and fraudulent representations, including that the investors’ money would be invested in, or secured by, gold and other precious metals, when in fact Fackrell spent only a fraction of investor money on such assets. According to court records, Fackrell also falsely told victims that Robin Hood was a very safe investment, paying guaranteed annual returns of 5% to 7%. According to court records, contrary to the promises he made to his victims and instead of investing the victims’ funds as promised, Fackrell used the majority of the money to cover personal expenditures, including hotel expenses, groceries, and medical bills, to make purchases at various retail shops and to make large cash withdrawals. Fackrell also used a portion of the victims’ money to make purported “interest” payments to investors who demanded their money back and to induce further investments from existing investors and their friends and family members. In all, according to court records, Fackrell diverted over $700,000 of his victims’ money – nearly half of the investor money he obtained – back to other investors in Ponzi fashion payments.
According to court records, in an attempt to conceal his fraud, Fackrell asked a third party to destroy a computer and documents related to the Ponzi scheme, explaining that he was in trouble with the U.S. Securities and Exchange Commission.
In making today’s sentencing announcement, U.S. Attorney Rose said, “Fackrell is a scammer. He betrayed his victims who believed his sales pitch and trusted him with their hard-earned money. Fackrell took that money and used it to enrich himself and to perpetuate his fraud. Thanks to the great work of our law enforcement partners Fackrell’s fraud was uncovered, putting a stop to his business of siphoning his clients’ money. His dishonesty caused a lot of financial hardship to a lot of people, and for that, Frackrell will serve a well-deserved prison sentence,” Rose added.
“This is one of the most vicious financial crimes we have seen in North Carolina in many years," Secretary of State Marshall said Tuesday. "Caleb Fackrell was a registered stockbroker who completely betrayed that trusted position to rip off his victims using the name ‘Robin Hood’ in the title of his Ponzi Schemes no less,” Marshall said. “His punishment today is well deserved.”Fackrell has been in federal custody since April 2016. All federal sentences are served without the possibility of parole.
In imposing today’s sentence Judge Voorhees noted the horrendous damage to the victims caused by the defendant involving the loss of their nest eggs, and that the defendant was motivated largely by personal greed.
The investigation was led by the FBI and the Securities Division of the North Carolina Department of the Secretary of State. U.S. Attorney Rose also thanked the North Carolina State Bureau of Investigation, the Yadkinville Police Department and Kinston’s Department of Public Safety for their invaluable assistance in this investigation.
Assistant United States Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Statement of U.S. Attorney Preet Bharara on the Supreme Court’s Decision in Salman v. U.S.Read the Press Release
Today, the U.S. Supreme Court unanimously and ‘easily’ rejected the Second Circuit’s novel reinterpretation of insider trading law in U.S. v. Newman. In its swiftly decided opinion, the Court stood up for common sense and affirmed what we have been arguing from the outset – that the law absolutely prohibits insiders from advantaging their friends and relatives at the expense of the trading public. Today’s decision is a victory for fair markets and those who believe that the system should not be rigged.
Spring Lake Carjacker Sentenced to 15 Years in PrisonRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court Senior United States District Judge Malcolm J. Howard sentenced ROBAENON TREQUAN ALEXIS, 19, of Spring Lake, to serve 15 years in prison, followed by 3 years of supervised release, on charges of Carjacking and Aiding and Abetting and Felon in Possession of a Firearm.
The evidence showed that on June 26, 2015, ALEXIS and another approached a victim as she was exiting her vehicle in Spring Lake, and asked for a ride to jump start a car. After inside the vehicle, ALEXIS pointed a sawed-off firearm at the victim and threatened to kill her if she did not exit the vehicle. The victim complied and was left on the side of the road. ALEXIS was later arrested in Greensboro when local authorities there found ALEXIS and another person asleep in the victim’s car.
ALEXIS was indicted on various charges and later pleaded guilty on May 9, 2016.
Investigation of this case was conducted by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with the assistance of the Granville County Sheriff’s Office, the Spring Lake and Greensboro Police Departments. Assistant United States Attorney William M. Gilmore represented the United States.
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News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.
South Whitehall Township Man Charged with Conveying False Information About A BombRead the Press Release
Donald Lee Haas, 60 years old of South Whitehall Township, Pennsylvania, was charged today by Indictment with three counts of conveying false information using a telephone, and one count of conveying false information about carrying a bomb onto an airplane, announced United States Attorney Zane David Memeger. The defendant is alleged to have made bomb threats to Lehigh Valley International Airport, TGI Friday’s restaurant, and the Lehigh Valley Mall, on May 17, 2016, in Lehigh County, in the Eastern District of Pennsylvania.
If convicted, defendant Haas faces a maximum possible sentence of 50 years imprisonment, a three-year period of supervised release, a $1,000,000 fine, and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation, Allentown Resident Agency, the Lehigh Northampton Airport Authority Police Department, the South Whitehall Township Police Department, and the Allentown Police Department, and is being prosecuted by Assistant United States Attorney John Gallagher.
An initial appearance of the charges has been scheduled for Friday, December 16, 2016, at 2:30 p.m., before the Honorable Henry S. Perkin, United States Magistrate Judge, at the Edward N. Cahn U.S. Courthouse and Federal Building, 504 Hamilton Street, in Allentown, Pennsylvania.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
South Florida Resident Ordered to Pay More Than $600,000 in Restitution for Filing Fraudulent Claims in Connection with the Deepwater Horizon IncidentRead the Press Release
A South Florida resident was ordered to pay $607,566 for her involvement in the filing of false claims in connection with the Deepwater Horizon explosion and pollution incident in the Gulf of Mexico in April 2010.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
On November 30, 2016, in the Key West Federal Courthouse, United States District Judge Jose E. Martinez entered the restitution order against Caridad Rioseco Alejandrez, 51, of Key West, Florida, who previously pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2 and was sentenced to serve forty-eight months in prison, to be followed by three years of supervised release. The restitution payment reflected the actual losses suffered by the Gulf Coat Claims Facility (GCCF) trust fund as a result of false claims handled by Caridad Rioseco Alejandrez for her own family members and for hundreds of Key West area residents.
Her father, Raul Rioseco, 74, of Stock Island, Florida, previously pled guilty to one count of mail fraud and was sentenced in April 2016 to one year and a day in prison in connection with his involvement in a similar false claim. He was also ordered to serve a three-year term of supervised release. Raul Rioseco was ordered to make restitution payments to the Deepwater Horizon Fund in the amount of $144,606.57, which represented the money he unlawfully received from the GCCF and the amounts received by certain other individuals based on fraudulent documents Raul Rioseco provided in support of other fraudulent claims. Additionally, Raul Rioseco was ordered to surrender to the State of Florida and the federal government all his permits and licenses associated with commercial fishing activities.
According to court filings and proceedings, in June 2010, BP plc established the GCCF for the purpose of administering and settling certain claims of individuals and businesses for costs, damages, and other losses incurred as a result of oil discharges due to the April 20, 2010 explosion and fire on the Deepwater Horizon, an oil exploration rig operating in the Gulf of Mexico. In August 2010, the GCCF began receiving and processing such claims of individuals and businesses for costs, damages, and other losses they had incurred as a result of the Deepwater Horizon incident, paying the claims from a $20 billion private trust fund established for that purpose.
Caridad Rioseco Alejandrez, and her father, Raul Rioseco, filed fraudulent claims against the fund, in their own names, which resulted in them receiving $35,900 and $55,000, respectively, from the GCCF. The scheme to defraud the GCCF was carried out through mailings and through the use of the Internet, to open the claims and to provide required forms and documentation, including employment verification letters and tax return documents. Alejandrez produced and provided the documents to the GCCF on behalf of herself and her father which were materially false and fraudulent and claimed Alejandrez and Rioseco were adversely affected by the spill and lost income in the months following the incident, when this was not the truth.
Additionally, Caridad Rioseco Alejandrez Rioseco, who had long served as a “facilitator” for local area residents, preparing tax returns, handling immigration paperwork, and providing other accounting services, facilitated the filing of hundreds of other false claims, by completing claims paperwork and producing fraudulent tax returns, wage statements, and “loss statements,” to support claims for compensation which were filed by her with the GCCF, for economic losses purported to have been suffered as a result of the Deepwater Horizon incident, despite the fact that none of the individuals had suffered the claimed losses.
The United States advised the Court that records established that the amounts claimed, approached $1.5 million, although the actual amounts paid out by the GCCF on the claims was $607,566.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, the Department of Commerce, National Oceanic and Atmospheric Administration, Office of Law Enforcement, the United States Coast Guard Investigative Service, U.S. Immigration and Customs Enforcements Homeland Security Investigations and the support provided by the United States Postal Inspection Service. This case was prosecuted by Assistant United States Attorney Thomas Watts-FitzGerald, Deputy Chief of the Economic and Environmental Crimes Section.
Members of the public can report fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, including the 2010 Deepwater Horizon oil spill, to the National Center for Disaster Fraud (NCDF) by calling 877-NCDF-GCF (877-623-3423), sending a fax to (225) 334-4707, or emailing [email protected].
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Seven New Jersey Members of Violent, International Street Gang Sentenced to Prison for Racketeering-Related ChargesRead the Press Release
NEWARK, N.J. – Seven members of the New Jersey branch of the international street gang “La Mara Salvatrucha,” (MS-13) have been sentenced to prison for their roles in a violent criminal enterprise that included murder, extortion, and plots to kill witnesses, U.S. Attorney Paul J. Fishman and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced today.
Franklin Mejia, a/k/a “Frankbo,” 25, and his brother, Kelvin Mejia, a/k/a “Machete,” 24, both of Plainfield, were each sentenced today to 150 months in prison. Ruben Portillo-Fuentes, a/k/a “Sombra,” 24, of Plainfield, of Plainfield, was sentenced today to 121 months in prison, and Julio Adalberto Orellana-Carranza, a/k/a “Player,” 28, also of Plainfield, was sentenced today to 72 months in prison. Jose Romero-Aguirre, a/k/a “Conejo,” 29, of North Plainfield, New Jersey, was sentenced today to 66 months in prison.
Franklin Mejia, Kelvin Mejia, Portillo-Fuentes, and Orellana-Carranza each previously pleaded guilty before U.S. District Judge Stanley R. Chesler to racketeering conspiracy. Romero-Aguirre previously pleaded guilty to conspiracy to commit murder in aid of racketeering.
Roberto Contreras, a/k/a “Demonio,” 28, of Bound Brook, New Jersey, was sentenced on Dec. 1, 2016, to 180 months in prison. Jose Garcia, a/k/a “Chucky,” 24, of Plainfield, was sentenced on Dec. 5, 2016, to 240 months in prison.
Contreras and Garcia were two of eight defendants convicted following a 16-week trial before Judge Chesler. Contreras was convicted of racketeering conspiracy and accessory after the fact to murder in aid of racketeering. Garcia was convicted of racketeering conspiracy, murder-for-hire conspiracy, travel in interstate commerce with intent to commit murder, and two counts of conspiracy to commit murder in aid of racketeering.
Judge Chesler imposed all the sentences in Newark federal court.
According to the documents filed in this case, statements made in court, and the evidence presented at trial:
MS-13 is a national and transnational gang with branches, or “cliques,” operating throughout the United States, including in Plainfield. All of the defendants were members of the “Plainfield Locos Salvatruchas” (PLS) clique of MS-13. From 2007 through 2011, MS-13 members from PLS committed five murders in furtherance of MS-13’s objectives, as well as numerous other violent crimes, including extortion, robbery and several weapons offenses.
In late-2010 into early-2011, Garcia arranged for MS-13 members from Maryland to come up to Plainfield to kill a woman in exchange for money. Garcia agreed to split the $40,000 murder-for-hire proceeds with the Maryland gang members. On Jan. 10, 2011, four Maryland MS-13 members drove to Plainfield to carry out the hit. They were arrested shortly before they were to meet Garcia.
On Jan. 10, 2011, Contreras and other MS-13 members were in a car when they spotted a suspected 18th Street gang member in front of a restaurant. Contreras stopped the vehicle and an MS-13 member exited, approached the suspected rival gang member and shot him in the head.
On May 7, 2011, Portillo-Fuentes approached an individual sitting outside a residence in Plainfield. Seeking to intimidate the individual and establish MS-13’s control over the area, Portillo-Fuentes fired a handgun at the individual, striking him the chest. The victim survived.
On May 8, 2011, Garcia and another MS-13 member assaulted a suspected member of the 18 Street gang at a park in Plainfield. During the assault, Garcia placed a gun to the victim's head and threatened to kill the victim.
On June 11, 2011, Orellana-Carranza sought to complete a “mission” to kill a rival gang member that had been assigned by PLS's leadership. Garcia assisted Orellana-Carranza by arranging for Kelvin Mejia to supply Orellana-Carranza with a handgun. After retrieving the weapon, Orellana-Carranza went out in search of an 18th Street gang member to kill, but was unsuccessful.
On June 15, 2011, Portillo-Fuentes attacked a member of the 18th Street gang with a machete on a busy street in Plainfield. After spotting the rival, Portillo-Fuentes jumped out of a vehicle and swung a machete at the individual’s head and neck areas. The victim sustained a large, deep gash.
Later that evening, Kelvin Mejia, Franklin Mejia, and a PLS associate robbed two individuals in the same park where Garcia had placed a gun to another victim’s head in May 2011. Franklin Mejia was armed with a handgun; the other two individuals carried handguns. The PLS members ordered the victims to the ground and robbed them of cell phones and ecstasy pills. During the robbery, Franklin Mejia fired a shot near one of the victims’ head. The bullet missed the victim’s head but grazed the individual’s hand. The victims were then ordered to leave the park.
On June 24, 2011, Garcia, Kelvin Mejia, Franklin Mejia, and others plotted to rob an elderly woman who ran an underground liquor store at her residence in Plainfield. That evening, a PLS member went to the woman’s home to rob her. He fired a single shot through the woman’s window when she refused to let him enter the residence, and then fled. Later, in July 2011, Garcia and Kelvin Mejia again plotted to rob the woman to raise bail money for PLS members who had been arrested.
On June 4, 2011, Franklin Mejia and another gang member attacked a PLS associate with a machete on the train tracks in Plainfield because they believed the victim had been associating with a rival gang. The victim survived. On July 2, 2011, Franklin Mejia and Kelvin Mejia sought to obtain a firearm so that Franklin Mejia could kill an older PLS member who was protecting the machete attack victim. Law enforcement officers thwarted the plot.
Kelvin Mejia and Franklin Mejia also distributed cocaine together. Through wiretaps and lawfully intercepted recordings, law enforcement officers intercepted conversations in which Kelvin Mejia and Franklin Mejia arranged drug deals. On July 2, 2011, law enforcement officers searched the Mejias’ residence in Plainfield and seized a small quantity of cocaine.
Law enforcement officers arrested numerous members of PLS in early July 2011. From the Union County Jail, some of the jailed PLS members, including Garcia, Orellana-Carranza and the Mejia brothers, plotted to kill at least three individuals they believed had cooperated with the authorities. To carry out the plot, the jailed PLS members enlisted Romero-Aguirre, who was still free at the time. Romero-Aguirre subsequently instructed PLS members outside the jail to kill the suspected cooperators. Law enforcement officers discovered the plan and intervened before anyone was harmed.
The defendants were originally charged in a 26-count indictment returned by a federal grand jury in September 2013. As of today, 13 of the 14 individuals charged in that indictment have been convicted. One defendant remains a fugitive. Flores is awaiting sentencing.
U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris; and Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Terence S. Opiola, with the investigation. They also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, for its collaboration on the case.
They also thanked the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Michael H. Robertson, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, for their roles. They also acknowledged the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland, as well as the Plainfield Police Department, Union County Police Department, Union County Sheriff’s Office, Elizabeth Police Department, North Plainfield Police Department, Union County Department of Corrections, Prince George’s County, Maryland, Police Department and the U.S. Marshal’s Service for their assistance.
The government is represented by Assistant U.S. Attorneys James M. Donnelly and J. Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark and by Kevin L. Rosenberg, of the Organized Crime and Gangs Section of the Department of Justice.
Defense counsel:
Reyes-Villatoro: Anthony Iacullo Esq. and David Glazer Esq.
Oliva: Henry Klingeman Esq. and Kenneth Kayser Esq.
Moz-Aguilar: John Whipple Esq.
Palencia: Joseph Rubino Esq. and Kelley Sharkey Esq.
Ramirez: Michael Koribanics Esq.
Seven New Jersey MS-13 Members Sentenced to Prison for Racketeering-Related ChargesRead the Press Release
Seven members of the New Jersey branch of the international street gang La Mara Salvatrucha, or MS-13, have been sentenced to prison for their roles in a violent criminal enterprise that included murder, extortion and plots to kill witnesses, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey.
Franklin Mejia, aka Frankbo, 25, and his brother, Kelvin Mejia, aka Machete, 24, both of Plainfield, New Jersey, were each sentenced today to 150 months in prison. Ruben Portillo-Fuentes, aka Sombra, 24, of Plainfield, was sentenced today to 121 months in prison; Julio Adalberto Orellana-Carranza, aka Player, 28, also of Plainfield, was sentenced today to 72 months in prison; and Jose Romero-Aguirre, aka Conejo, 29, of North Plainfield, New Jersey, was sentenced today to 66 months in prison. Franklin Mejia, Kelvin Mejia, Portillo-Fuentes and Orellana-Carranza each previously pleaded guilty before U.S. District Judge Stanley R. Chesler of the District of New Jersey to racketeering conspiracy. Romero-Aguirre previously pleaded guilty to conspiracy to commit murder in aid of racketeering.
Two other co-defendants were previously sentenced. Roberto Contreras, aka Demonio, 28, of Bound Brook, New Jersey, was sentenced on Dec. 1, 2016, to 180 months in prison. Jose Garcia, aka Chucky, 24, of Plainfield, was sentenced on Dec. 5, 2016, to 240 months in prison. Contreras and Garcia were convicted following trial before Judge Chesler. Contreras was convicted of racketeering conspiracy and accessory after the fact to murder in aid of racketeering. Garcia was convicted of racketeering conspiracy, murder-for-hire conspiracy, travel in interstate commerce with intent to commit murder and two counts of conspiracy to commit murder in aid of racketeering.
According to the plea agreements and evidence presented at trial, MS-13 is a national and transnational gang with branches or “cliques” operating throughout the United States, including in Plainfield. All of the defendants were members of the Plainfield Locos Salvatruchas (PLS) Clique of MS-13 that operated in Union, Somerset and Middlesex Counties in New Jersey. Santos Reyes-Villatoro, aka Mousey, founder of the gang, and Mario Oliva, aka Zorro, both of Bound Brook, New Jersey, and Contreras all served as “First Word,” or leader, of PLS. From 2007 through 2011, MS-13 members from PLS committed five murders in furtherance of MS-13’s objectives, along with other attempted murders and violent attacks, including the following.
According to evidence presented at trial and to admissions made in connection with plea agreements, on Feb. 27, 2010, Oliva drove a female member of MS-13 to an empty parking lot in Piscataway, New Jersey, and murdered her because she was suspected of working with law enforcement. Oliva then fled New Jersey with the assistance of Contreras and hid from law enforcement with the MS-13 Pinos Clique in Oxon Hill, Maryland.
On Jan. 10, 2011, four Maryland MS-13 members drove to Plainfield and were arrested shortly before meeting with Garcia to carry out a murder-for-hire they had arranged with him. Also on Jan. 10, 2011, Contreras and other MS-13 members were in a car when they spotted a suspected 18th Street gang member in front of a restaurant. Contreras stopped the vehicle and an MS-13 member exited, approached the suspected rival gang member and shot him in the head.
On May 7, 2011, Portillo-Fuentes approached an individual sitting outside a residence in Plainfield and fired a handgun at the individual, striking him the chest, in order to intimidate the victim and establish MS-13’s control of the area. The victim survived. On May 8, 2011, Garcia and another MS-13 member assaulted a suspected member of the 18th Street gang at a park in Plainfield. During the assault, Garcia placed a gun to the victim's head and threatened to kill the victim.
In addition, Orellana-Carranza was assigned a “mission” to kill a rival gang member by PLS’s leadership. Garcia assisted Orellana-Carranza by arranging for Kelvin Mejia to supply Orellana-Carranza with a handgun. After retrieving the weapon, on June 11, 2011, Orellana-Carranza went out in search of an 18th Street gang member to kill, but was ultimately unsuccessful.
Also according to admissions and trial evidence, on June 15, 2011, Portillo-Fuentes spotted a member of the 18th Street gang on a busy street in Plainfield, jumped out of a vehicle and swung a machete at the individual’s head and neck areas. Later that evening, Kelvin Mejia, Franklin Mejia and a PLS associate robbed two individuals in a park, while all three were armed with guns. During the robbery, Franklin Mejia fired a shot near one victim’s head, missing the victim’s head but grazing their hand.
The plea agreements and trial evidence established that on June 24, 2011, Garcia, Kelvin Mejia, Franklin Mejia and others plotted to rob an elderly woman who ran an underground liquor store at her residence in Plainfield. That evening, a PLS member fired a single shot through the woman’s window when she refused to let him enter the residence, and then fled. In July 2011, Garcia and Kelvin Mejia again plotted to rob the woman to raise bail money for PLS members who had been arrested.
According to admissions and evidence presented at trial, on June 4, 2011, Franklin Mejia and another PLS member attacked a PLS associate with a machete on the train tracks in Plainfield because they believed the victim had been associating with a rival gang. The victim survived. On July 2, 2011, Franklin Mejia and Kelvin Mejia sought to obtain a firearm so that Franklin Mejia could kill an older PLS member who was protecting the machete attack victim. Law enforcement officers thwarted the plot.
Evidence at trial demonstrated that in July 2011, numerous PLS members were in custody at the Union County Jail, during which time Garcia and Esau Ramirez, aka Panda, along with other jailed members, plotted to kill at least three individuals they believed had cooperated with the authorities. On Aug. 1, 2011, Ramirez instructed Romero-Aguirre, who was free at the time, to “work as fast as possible” in eliminating the suspected cooperators. Romero-Aguirre subsequently instructed PLS members outside the jail to kill the suspected cooperators. Law enforcement officers discovered the plan and intervened before anyone was harmed.
According to evidence presented at trial, PLS members were also responsible for at least two attempted murders of suspected Latin King members and machete attacks in May 2011 and June 2011 on the train tracks passing through Plainfield.
To date, 13 of the 14 individuals charged in this case have been convicted. One defendant remains a fugitive. One defendant, Cruz Flores, aka Bruja, awaits sentencing.
The FBI’s Newark Division; U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations; and ICE Homeland Security Investigations investigated the case. The Union County Prosecutor’s Office assisted in the investigation. The Somerset County, New Jersey, Prosecutor’s Office ; the Middlesex County, New Jersey, Prosecutor’s Office; the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland; the Plainfield Police Department; Union County Police Department; Union County Sheriff’s Office; Elizabeth, New Jersey, Police Department; North Plainfield Police Department; Union County Department of Corrections; Prince George’s County, Maryland, Police Department; and the U.S. Marshals Service also provided assistance. Former Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys James M. Donnelly and J. Jamari Buxton of the District of New Jersey are prosecuting the case.
Saltville Man Sentenced on Federal Drug ChargeRead the Press Release
ROANOKE, VIRGINIA – A Saltville, Virginia man, who previously pled guilty to a federal drug conspiracy charge, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick announced.
Charles William Sturgill, 41, of Saltville, previously pled guilty to one count of conspiracy to distribute methamphetamine. Today in District Court, Sturgill was sentenced to 240 months in federal prison.
“We will continue to devote as many resources as available to fight the scourge of methamphetamine abuse in the Western District of Virginia,” United States Attorney Fishwick said today.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Wythe County Sheriff’s Office, the Smyth County Sheriff’s Office and the United States Marshals Service. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Rosebud Man Charged with Distribution of a Controlled Substance and Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Distribution of a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Lloyd One Star, age 26, was indicted on November 9, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 28, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 1, 2015, and March 7, 2016, One Star knowingly and intentionally distributed a mixture and substance containing a detectable amount of methamphetamine. Also, on March 7, 2016, One Star and his co-defendant knowingly and intentionally possessed with intent to distribute said methamphetamine.
The charges are merely accusations and One Star is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
One Star was released on bond pending trial which has been set for January 24, 2017.
Rideout Health to Pay Civil Monetary Penalties to Resolve Controlled Substance Act ClaimsRead the Press Release
SACRAMENTO, Calif. — Rideout Health will pay the United States $2,425,000 to settle the federal claims of alleged violations of the Controlled Substances Act by three of Rideout Health’s facilities in Yuba and Sutter Counties: Rideout Memorial Hospital, Fremont Medical Center, and Feather River Surgery Center, United States Attorney Phillip A. Talbert announced today.
In addition, Rideout Health has agreed to a three-year compliance plan. The payment and plan resolve the United States= claims that the three Rideout Health facilities failed to properly record and maintain thousands of transactions involving controlled substances in violation of the Controlled Substances Act and its implementing regulations.
The settlement also resolves the United States’ contention that the system Rideout Health used during that time to distribute controlled substances between these facilities failed to provide sufficient security controls. This settlement arises from a Drug Enforcement Administration (DEA) investigation that began after DEA received information from the California State Board of Pharmacy that Fremont Medical Center’s DEA Registration had expired, and that from October 23, 2012, to October 23, 2014, pharmacy technicians at Rideout Memorial Hospital were transporting controlled substances between Rideout Health facilities with little or no security controls in place.
“Hospitals have a duty to ensure that controlled substances are not diverted for nonmedical use,” said U.S. Attorney Talbert. “When a pharmacy or hospital has record keeping problems, it is impossible to know exactly how many controlled substances are on hand. Without that knowledge, and without proper security controls, the potential for diversion into our community escalates and jeopardizes the public health and safety.”
“Healthcare providers are the gatekeepers of controlled substances in their possession,” said DEA Special Agent in Charge John J. Martin. “With prescription drug misuse rates alarmingly high, proper accountability and security reduces the opportunity for diversion to unintended users. DEA will continue to use every investigative tool available in response to the prescription drug epidemic.”
Since the investigation began, Rideout Health has worked with the DEA and the United States Attorney’s Office to develop a detailed compliance plan to address the deficiencies in Rideout Health’s handling of controlled substances. Rideout Health also took proactive steps to reorganize its Compliance Department to improve controls with respect to the purchase, storage and dispensing of controlled substances. The compliance plan with the DEA is designed to advance Rideout Health’s ability to meet its record keeping requirements and enhance its ability to detect and prevent drug diversion.
Assistant United States Attorneys M. Anderson Berry and Kurt A. Didier handled the case with assistance from Diversion Investigators from DEA’s Sacramento Field Office.
Reno Man Sentenced for Bank Robbery with A Dangerous Weapon Resulting in DeathRead the Press Release
RENO, Nev. - A Reno man who was found guilty by a jury for a 2013 bank robbery in south Reno and for killing a customer was sentenced on Monday by U.S. District Judge Miranda M. Du to life in prison on both counts and ordered that the counts run consecutive, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“The defendant was callous and killed an innocent man who was trying to prevent the bank robbery,” said U.S. Attorney Bogden. “Using a firearm to rob a bank is a serious offense and we will continue to work with our law enforcement partners to ensure violent criminals are brought to justice.”
Van McDuffy, aka Van McDuffie, 69, was indicted on Oct. 20, 2013. He was found guilty on Aug. 17, 2016, of bank robbery with a dangerous weapon resulting in death and use of a firearm during and in relation to a crime of violence causing death.
On Oct. 16, 2013, McDuffy entered a Bank of America and approached a teller demanding money while showing the teller a gun. A customer at the teller being robbed told McDuffy to “get out of here.” McDuffy turned and shot the customer who died at the scene. McDuffy took the money from the first teller and then moved to a second teller. He pointed the gun at the second teller while demanding money before fleeing the bank. An off-duty Reno Police Department officer was in the bank at the time of the robbery and followed McDuffy out of the bank. The off-duty officer was able to apprehend McDuffy across the street from the bank at a bus stop.
The case was a joint investigation by the FBI and the Reno Police Department; and prosecuted by Assistant U.S. Attorney Megan Rachow.
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Quaker City man accused of obstructing justice and threatening agentsRead the Press Release
A federal grand jury indicted Jesse M. Smith, 38, of Quaker City, Ohio, today for obstructing the proceedings of a federal grand jury and threatening two federal agents, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The indictment alleges in the first count that Smith obstructed the proceedings of a federal grand jury in Cleveland, Ohio, by producing false and misleading documents in response to a subpoena. The second count of the indictment alleges that Smith threatened to harm a special agent of the United States Department of Agriculture on September 19, 2016. The last count of the indictment alleges that Smith threatened to shoot a different special agent of the USDA four days later on September 23, 2016.
The USDA Office of Inspector General conducted the investigation along with the FBI. The case is being prosecuted by Assistant United States Attorneys Duncan T. Brown and Brad J. Beeson.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Prior Sex Offender from Albuquerque Facing Federal Child Pornography ChargesRead 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 Randal Gordon Paul, 47, of Albuquerque, with federal child pornography charges. Paul was detained pending trial.
Paul was arrested on Dec. 2, 2016, on a criminal complaint alleging that he possessed and distributed visual depictions of minors engaged in sexually explicit activity from June 14, 2015 through Nov. 16, 2016, in Bernalillo County, N.M. According to the criminal complaint, the investigation into Paul began in Nov. 2014, after an email address belonging to Paul, allegedly was used to register an account with a website known to show images of minors engaged in sexually explicit conduct. Further investigation revealed that Paul was a registered sex offender with two prior convictions: in 1996 for lewd and lascivious acts with a child under 14 and in 1998 for aggravated sexual abuse. On Nov. 16, 2016, law enforcement searched Paul’s residence and allegedly found a computer containing a video and at least 30 images of child pornography.
If convicted of the possession charge in the criminal complaint, Paul faces a statutory penalty of a mandatory minimum of ten years and a maximum of 20 years in prison. If convicted of the distribution charge in the criminal complaint, Paul faces a statutory penalty of a mandatory minimum of 15 years and a maximum of 40 years in prison. Paul faces enhanced penalties because of his status as a prior sex offender. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI and the New Mexico Regional Computer Forensic Laboratory. Assistant U.S. Attorney Holland S. Kastrin is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit http://www.justice.gov/psc/.
Prior Owners of Sully's Pub, West Des Moines, Plead Guilty to Tax Fraud ChargesRead the Press Release
DES MOINES, IA - On December 5, 2016, James Perin, age 66, and Mardeen Perin, age 62, of West Des Moines, Iowa, appeared before Chief United States Magistrate Judge Celeste F. Bremer and pleaded guilty to tax fraud charges arising out of their operation of Sully's Pub in 2013, announced United States Attorney Kevin E. VanderSchel. The Perins admitted to failing to report cash earned through the business that was then deposited into personal bank accounts without being reported on either business or personal tax returns.
Mardeen Perin pleaded guilty to aiding and assisting in the preparation of a false return, in violation of Title 26, United States Code, Section 7206(2). James Perin pleaded guilty to making and subscribing a false return, in violation of Title 26, United States Code, Section 7206(1).
Both defendants face potential maximum penalties under the statute of up to three years of imprisonment and three years of supervised release following any term of imprisonment.
Sentencings are presently scheduled for April 12, 2016, before Chief United States District Court Judge John A. Jarvey.
The investigation was conducted by the Internal Revenue Service (IRS) – Criminal Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Pineville man pleads guilty to possessing child pornographyRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a Pineville man pleaded guilty Monday to possession of child pornography.
George Jeffus, 73, of Pineville, La., pleaded guilty before U.S. District Judge Dee D. Drell to one count of possession of child pornography. According to the guilty plea, Pineville police received a report concerning Jeffus possessing possible child pornography. His home was searched, and 136 images and five video files of child pornography were found on electronic storage devices.
Jeffus faces up to 20 years in prison, five years to life of supervised release, forfeiture of items that were seized during the investigation and a $250,000 fine. Additionally, he is required to register as a sex offender. A sentencing date of March 16, 2017 was set.
Homeland Security Investigations, the Rapides Parish Sheriff’s Office and the Pineville Police Department investigated the case. Assistant U.S. Attorney Jamilla A. Bynog is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Pine Ridge Man Indicted for Aggravated Sexual Abuse of a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for three counts of Aggravated Sexual Abuse of a Minor.
Benton Rowland, age 32, was indicted on November 16, 2016. Rowland appeared before U.S. Magistrate Judge Daneta Wollmann on November 30, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is life in custody and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Rowland sexually abusing a minor between 2008 and 2014 at Manderson and Pine Ridge.
The charges are merely accusations and Rowland is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety and Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Rowland was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for February 7, 2017.
Owner of Parsippany-Based Diagnostic Testing Facility Sued for Submitting False Claims to Federal Health Care ProgramsRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man and his diagnostic testing company are being sued by the government for knowingly submitting false claims to Medicare for thousands of diagnostic testing services he did not render, U.S. Attorney Paul J. Fishman announced today.
Vijay Patel, 59, of Parsippany, New Jersey, owner and operator of Mobile Diagnostic Testing of NJ LLC of Parsippany, New Jersey, pleaded guilty Dec.15, 2014, to a criminal information charging him with health care fraud related to this conduct. Today’s civil complaint alleges Vijay Patel violated the False Claims Act.
According to the complaint:
Patel had an associate who was a cardiologist and also a participant in the Medicare program. From around 2009 through 2012, the cardiologist’s Medicare contractor had placed him on so-called “pre-payment review,” which was initiated to ensure that the doctor was submitting claims within established rules and regulations, and which required him to submit documentation, including medical records, to support the services being billed to Medicare. Under pre-payment review, claims for reimbursement that did not have the documentation necessary to support the services being billed are rejected by the Medicare contractor.
From August 2011 through December 2012, Patel and the cardiologist defrauded Medicare by submitting claims to Medicare for diagnostic testing services that the doctor had performed in December 2010 through September 2012, enabling him to evade Medicare’s pre-payment review. Patel submitted the cardiologist’s claims through his company and his brother’s company, Biosound Medical Services Inc. (Biosound), as if Mobile Diagnostic and Biosound had performed the services instead of the doctor. Once Patel received the Medicare reimbursement money paid to the two companies for diagnostic testing services the cardiologist had performed, Patel transferred a portion of the payment to the doctor and kept a substantial portion for himself.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, New York Region, with the investigation leading to the filing of today’s complaint.
The government is represented by Assistant U.S. Attorneys Nicole F. Mastropieri and Bernard J. Cooney of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including 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.
The case is captioned United States v. Vijay Patel, et al. (D.N.J.).
Ohio man guilty of failing to register as sex offenderRead the Press Release
WHEELING, WEST VIRGINIA – Thomas Hammerstone, 34, of Bellaire, Ohio, pled guilty in federal court today for failing to register as a sex offender, United States Attorney William J. Ihlenfeld, II, announced.
Hammerstone admitted to traveling in interstate commerce and failing to register and update his registration as a sex offender. He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The United States Marshals Service investigated.
U.S. Magistrate Judge James E. Seibert presided.
Ohio County man pleads guilty to heroin traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Rainell Peter Freeman, 25, of Wheeling, West Virginia, pled guilty to distributing heroin, United States Attorney William J. Ihlenfeld, II, announced.
Freeman admitted to distributing heroin in Ohio County, West Virginia in April 2016 and pled guilty to two counts of “Distribution of Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Ohio County man charged with illegal possession of a firearmRead the Press Release
WHEELING, WEST VIRGINIA – An Ohio County, West Virginia, man has been charged with unlawfully possessing a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Mark A. Simmons, age 46 of Wheeling Island, who had previously been convicted of the felony offense of “Failure to Register or Provide Notice of Registration” in Marshall County, allegedly possessed a Beretta pistol in Ohio County in November 2016. Simmons faces up to ten years in prison and a fine of $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is handling the case on behalf of the government. The matter was investigated by the Wheeling Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.New York City Man Sentenced to Federal Prison for Stock Trading SchemeRead the Press Release
DENVER – Michael Todd Osborn, age 46, of New York, was sentenced by U.S. District Court Judge Christine M. Arguello on last week to serve 77 months in prison followed by 3 years of supervised release for wire fraud and money laundering, announced Acting U.S. Attorney Robert C. Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne. He was taken into custody at the end of the sentencing hearing.
Osborn and his co-defendant Corey Earl Engelen were indicted by a federal grand jury in Denver on February 11, 2015. Osborn pled guilty on February 9, 2016 and was sentenced on December 1, 2016. Osborn was ordered to pay a fine of $100,000 and restitution of $695,000 to the investors of this his fraudulent scheme.
According to the indictment and plea agreement, beginning in October 2009 and continuing until July 2010, Osborn devised a scheme to defraud investors. He told them that he would use their funds to trade stocks on their behalf. In fact, he did no trading, and he and his Colorado associate used the investors’ money for their own personal benefit and purposes other than trading. Osborn held himself out to investors as an experienced trader of stocks and other securities and a veteran in the equity/swing trading business. He sold investors units in the CU Equity Swing Fund I, LLC and the 10x Leveraged Oscillator Fund, through which he represented he would conduct short-term trading. Investors typically learned of the investment opportunity through a friend or trusted associate.
Osborn falsely represented that he had a prime trading account through which he would be able to leverage the funds invested and thereby reap greater profits than from unleveraged trading and falsely represented that the investors’ funds were protected from fraud, larceny, and embezzlement by a fidelity bond with Lloyds of London.
Osborn instructed investors to wire their funds to accounts held in the name of Infinite One, LLC, which he represented to be the trading accounts he would use for the trades. In fact, the accounts were not trading accounts and were never used for trading. They were merely checking accounts held by Osborn’s associate in Colorado. Once the investors had wired funds, Osborn provided them “blotters,” which contained detailed records of trades he had purportedly made.
The information provided to the investors was false, as Osborn had never made the trades, and certainly no profits had been realized. Instead, Osborn used the funds for his own personal benefit, including purchasing a Mercedes-Benz, paying for family vacations, paying his attorney and a victim in an unrelated criminal case, and paying his ordinary living expenses and debts.
“These are the worst kind of thieves. They carefully and deliberately go to great lengths to lie and steal the savings of innocent people,” said Acting U.S. Attorney Bob Troyer. “IRS Criminal Investigators are excellent at tracking down thieves like this. It is their work, with our Assistant U.S. Attorney, that sends these folks where they belong.”
“This sentencing demonstrates the excellent partnership between IRS-CI and the U.S. Attorney’s Office in working together to stop the criminal behavior of those who prey on investors for their own personal financial gain,” said Steven Osborne, Special Agent in Charge, IRS-Criminal Investigation, Denver Field Office. “IRS Criminal Investigators will continue to use their financial expertise to identify and trace laundered funds in these types of investor fraud schemes.”
Engelen pled guilty on October 13, 2016 to one count of money laundering and is scheduled to be sentenced by Judge Arguello on January 31, 2017.
This case was investigated by Internal Revenue Service – Criminal Investigation with assistance from the Special Enforcement Program of the Internal Revenue Service. This case was prosecuted by Assistant U.S. Attorneys Linda Kaufman and Bishop Grewell.
Middlesex County, New Jersey, Man Charged with Racketeering and Related OffensesRead the Press Release
NEWARK, N.J. – A New Brunswick, New Jersey, man appeared in federal court today to face racketeering and other charges in connection with multiple brothels that employed illegal aliens throughout New Jersey, U.S. Attorney Paul J. Fishman announced.
Wilmer Chavez Romero, a/k/a “Charmin,” 27, is charged by indictment with one count each of racketeering, racketeering conspiracy, assault with a dangerous weapon in aid of racketeering, and conspiracy to harbor aliens resulting in death; two counts of using a firearm for a violent crime; and two counts of murder in aid of racketeering. He was arraigned today before U.S. District Judge William H. Walls in Newark federal court. Trial is scheduled for Jan. 3, 2017.
According to the indictment:
Chavez Romero allegedly served as an enforcer for an enterprise that provided prostitution services in Cumberland, Essex, Mercer, Middlesex, Monmouth and Ocean counties. The purpose of the enterprise, which primarily employed illegal aliens in brothels throughout New Jersey, was to promote prostitution, assist illegal aliens to enter the United States, harbor illegal aliens, and to commit murder, assault, and robbery. The enterprise expanded its territory and reputation through the use of intimidation, violence, threats of violence, assaults, and murder. Chavez Romero acted at the direction of the leaders of the enterprise, identified in the indictment as “Individual 1” and “Individual 3.”
The leaders oversaw brothels in New Brunswick, Trenton, Orange, Asbury Park, Lakewood, and Bridgeton. Individual 1, Chavez Romero and others allegedly threatened, committed, attempted to commit, and assisted in the commission of murder, assault, and robbery. The purpose of these alleged crimes was to thwart rival brothels, exact revenge, punish enterprise members and associates who had been disloyal, and silence people they believe were cooperating with law enforcement.
Chavez Romero allegedly committed robbery, burglary, assault, and murder in furtherance of the enterprise and conspired to conceal, harbor and shield from detection aliens for the purpose of commercial advantage and private financial gain. In relation to this, two people were murdered.
The racketeering and racketeering conspiracy charges are both punishable by life in prison. The assault with a dangerous weapon in aid of racketeering charge is punishable by a maximum potential penalty of 20 years in prison. The charges of murder in aid of racketeering, use of a firearm during a violent crime, and conspiracy to harbor aliens resulting in death are all punishable by a potential penalty of death or life imprisonment. All counts in the indictment are punishable by a $250,000 fine.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Sharon Ashe and Meredith Williams of the U.S. Attorney’s Office Narcotics/OCDETF Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Kevin F. Carlucci Esq., Assistant Federal Public Defender, Newark
Mexican national indicted for illegal reentry, failure to register as sex offenderRead the Press Release
A federal Grand Jury returned an indictment charging Raymond Castaneda, 43, a Mexican citizen, with unlawfully re-entering the United States and failing to register as a sex offender, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Castaneda, who in 1994 was convicted of Indecency with a Child in Henderson County, Texas and deported to Mexico in 2008, was found in Painesville, according to the indictment.
Assistant United States Attorney Karrie D. Howard is prosecuting the case following an investigation by the U.S. Marshals Service.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Methamphetamine Trafficker Sentenced to over 17 Years in PrisonRead the Press Release
SAN JOSE – Jose Vazquez-Barron, AKA Chepa, was sentenced yesterday to 210 months (17.5 years) in prison for his role in a conspiracy to possess with intent to distribute methamphetamine, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin. The sentence follows a guilty plea entered August 15, 2016, in which Vasquez-Barron admitted he conspired to possess with the intent to distribute methamphetamine.
According to the plea agreement, Vasquez-Barron, 29, of San Jose, admitted that between February and October of 2015, he conspired with others to possess and distribute methamphetamine. In his plea agreement, Vasquez-Barron described two transactions that occurred as part of the conspiracy. First, on May 20, 2015, he sold 448 grams of actual methamphetamine to an undercover officer in exchange for $4,800. Second, on September 1, 2015, Vasquez-Barron sold over 500 grams of methamphetamine to an undercover officer. In addition to these transactions, Vasquez-Barron acknowledged he conspired with others to possess with the intent to distribute an additional 7 kilograms of methamphetamine; the distribution did not occur because the drugs were seized on October 4, 2015.
Vasquez-Barron was indicted by a federal grand jury on October 8, 2015. He was charged with one count of conspiracy to possess with intent to distribute and to distribute methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1) and 841(b)(1)(A)(viii), and two counts of possession with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A)(viii). Pursuant to his plea agreement, Vasquez-Barron pleaded guilty to one count of conspiracy, in violation of 21 U.S.C. §§ 846.
The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge. In addition to the prison term, Judge Davila sentenced Vasquez-Barron to a 5-year period of supervised release. The defendant has been in federal custody since October 5, 2015, and will begin serving his sentence immediately.
Assistant U.S. Attorneys Bill Gullotta and Chinhayi Cadet are prosecuting the case with the assistance of Theresa Benitez and Lakisha Holliman. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Media AdvisoryRead the Press Release
Contact Person: Beth Drake: (803) 929-3000
COLUMBIA, SOUTH CAROLINA – Acting United States Attorney Beth Drake, Solicitor Barry Barnette, Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco and Firearms, and local law enforcement leaders will hold a press conference Wednesday, December 7, 2016, at the Spartanburg County Courthouse to discuss the county-wide domestic violence initiative known as “Home Front.”
WHEN: Wednesday, December 7, 2016 TIME: 10:00 a.m. WHERE: Spartanburg County Courthouse
180 Magnolia Street
Spartanburg, SC 29306
East CourtroomNOTE: All media must present government-issued photo identification (such as driver’s license). Press inquiries regarding logistics should be directed to Murray Glenn, 864-809-4892. All media should be in place 20 minutes prior to start. Please plan for the extra time needed to process equipment and personnel through courthouse security.
Street parking is available on two sides of the courthouse. Parking is also available in the surface lot directly behind the courthouse.
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McHenry County Man Indicted on Child Pornography ChargesRead the Press Release
ROCKFORD — A Solon Mills man was indicted today by a federal grand jury on charges of child pornography.
WAYNE GIBBONS, 66, was charged with two counts of transporting child pornography via the Internet in June 2013.
Each count of transporting child pornography carries a mandatory minimum sentence of five years in prison and a maximum of 20 years, as well as a $250,000 maximum fine. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Maine Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A Maine man pleaded guilty yesterday in U.S. District Court in Boston in connection with enticing minors to engage in illicit sexual conduct.
Dillan Letellier, 32, of Saco, Maine, pleaded guilty to two counts of coercion and enticement of a minor, one count of attempted coercion and enticement of a minor, three counts of travel with intent to engage in illicit sexual conduct, and one count of possession of child pornography. U.S. District Court Judge George A. O’Toole, Jr., scheduled sentencing for March 27, 2017.
Letellier admitted to pretending to be a seventeen-year-old when he met two fourteen-year-old victims over the internet, coercing and enticing each victim to meet with him. On separate occasions, Letellier traveled from Maine to each of the victims’ Massachusetts towns, met each minor victim, and brought the victims to locations in Massachusetts where they engaged in sexual intercourse. Following an investigation by law enforcement officers, Letellier was charged by criminal complaint and arrested on Oct. 3, 2013. A forensic exam of the electronic devices seized from defendant’s residence revealed thousands of child pornographic images and videos.
The charges of coercion and enticement and attempted coercion and enticement each provide for a mandatory minimum of 10 years in prison and no greater than life, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charge of traveling with intent to engage in illicit sexual conduct provides for a sentence of no greater than 30 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of no greater than 20 years in prison; a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. He will also be required to register as a sex offender. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. The Saco Police Department and municipal police departments where the victims reside assisted with the investigation. Assistant U.S. Attorneys Suzanne Sullivan Jacobus and Anne Paruti of Ortiz's Major Crimes Unit are prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Louisville Woman Pleads Guilty to Defrauding the Social Security AdministrationRead the Press Release
Failed to disclose the death of her husband for eleven years
Benefit totaled $268,396
LOUISVILLE, Ky. – A Louisville woman pleaded guilty this week in United States District Court before Chief Judge Joseph H. McKinley Jr., to several charges involving the fraudulent receipt of Old-Age, Survivors and Disability Insurance (OASDI) benefits by the Social Security Administration (SSA), for an eleven-year period, totaling $268,396 announced United States Attorney John E. Kuhn, Jr.
In court, Janice M. Arnow, age 69, admitted that she failed to disclose the death of her husband and continued to receive and spend OASDI payments made by the SSA between October 2003 and October 2014. Further, Arnow admitted to theft of government property. Arnow embezzled, stole, and purloined money of the Social Security Administration (SSA), a department and agency of the United States, namely, Old-Age, Survivors and Disability Insurance program (OASDI) payments made to her deceased husband, to which she knew she was not entitled.
Also, on or about July 17, 2012, Arnow admitted to making her own false Social Security Application. Arnow willfully and knowingly made a materially false, fictitious, and fraudulent statement, by submitting an application for her own OASDI payments to the SSA. In doing so, Arnow falsely omitted the identity of her late husband (Paul Adams), the receipt of income from her late husband’s OASDI payments, the date of his death, and falsely indicated that she had no other marriages than to M.H.
According to information presented in court, when Arnow was questioned by agents with SSA at her Louisville home, Arnow reportedly stated that she thought she could spend the money because she was his widow, offered to pay the money back, could not remember to whom she had mailed her late husband’s death certificate, and that she had used the money for social work in Rwanda and the Congo.
In a separate case, on November 19, 2012, Arnow pleaded guilty in the Commonwealth of Kentucky, Jefferson County, to wanton exploitation of an adult over $300, theft of identity, fraudulent use of a credit card over $500, and theft by unlawful taking of over $500. The court sentenced Arnow to four years on each count. Arnow entered into a five-year diversion. The Commonwealth moved to revoke that diversion based on the federal charges.
Arnow is scheduled for sentencing in Louisville on March 6, 2016 at 11:30 a.m.
The case is being prosecuted by Assistant United States Attorney Joshua Judd, and results from an investigation conducted by the Social Security Administration –Office of the Inspector General.
Louisville Man Sentenced to 37 Years in Prison for His Role in A String of Armed Robberies in Metro LouisvilleRead the Press Release
Federal prosecution resulted from “Project Recoil”
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the 37-year sentence of a violent convicted felon for his role in a string of armed robberies in Metro Louisville. The federal charges stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies, developed by the U.S. Attorney’s Office for the Western District of Kentucky, to maximize penalties for the most violent offenders and to reduce violent crime in our community.
“Project Recoil, a collaborative initiative between federal and local law enforcement, is working to identify and successfully prosecute the most dangerous offenders in our community,” stated United States Attorney John Kuhn. “This sentence is an example of how well our partnership is working,”
Jescell Whittle was convicted of obstruction of interstate commerce through robbery of two businesses, and using a firearm in connection with the two robberies following a six-day trial on August 30, 2016, in Louisville. Whittle was found guilty of attempting to rob the Cricket Wireless store, located at 3125 W. Broadway, and using a firearm in the commission of the attempted robbery that occurred on October 23, 2012. A surveillance video showed Whittle brandishing a firearm and attempting to vault the counter before running out of the store without any money. Whittle was also found guilty of aiding and abetting in the robbery of a Speedway, located on 3030 Taylor Boulevard on October 31, 2012, and discharging a firearm in the commission of that robbery.
This successful prosecution has resulted in the sentencing of three other co-defendants, to lengthy prison sentences, for their roles in the armed robberies of two Cricket Wirelesses and three convenience stores in Metro Louisville. Whittle was sentenced yesterday, December 5, 2016, in United States District Court by Chief Judge Joseph H. McKinley Jr.
For their roles in the armed robberies of three businesses located in Jefferson County, Kentucky, co-defendant James Gore, Jr., was sentenced to serve 72 months in prison followed by a three-year period of supervised release, while co-defendant Tony Trumbo, Jr., was sentenced to serve 255 months in prison followed by a three-year period of supervised release. Both men were sentenced on July 9, 2015.
Gore previously pleaded guilty to aiding and abetting the obstruction of interstate commerce through robbery of two businesses. Trumbo previously pleaded guilty to aiding and abetting the obstruction of interstate commerce through robbery, attempted robbery of three businesses, and aiding and abetting the discharge of a firearm during a robbery.
According to the plea agreement, Gore admitted to robbing a Thorntons, with several other individuals, located at 4516 Poplar Level Road on October 30, 2012, and to robbing a Speedway, with several other individuals, located on 3030 Taylor Boulevard on October 31, 2012. Surveillance video taken from the Thorntons robbery shows Gore brandishing two firearms during the robbery.
In a separate plea agreement, defendant Trumbo admitted to attempting to rob the Cricket Wireless store, located at 3125 W. Broadway, along with other individuals, on October 23, 2012. Surveillance video taken from the store shows Trumbo along with an accomplice who was brandishing a firearm, attempting to rob the store. Trumbo also admitted to being one of several people to rob the Thorntons located at 4516 Poplar Level Road, on October 30, 2012. Trumbo further admitted to being one of several people to rob the Speedway located at 3030 Taylor Boulevard on October 31, 2012. During the course of that robbery, Whittle shot a Speedway customer in the back causing serious bodily injury.
Co-defendant Dahntel Newsome pleaded guilty to multiple charges on September 9, 2015, and was sentenced to 243 months in prison. Newsome admitted to being the getaway driver during the commission of the robbery of the Crickett Wireless store on Cane Run Road. He further admitted to being the getaway driver during the robbery of the Cricket Wireless Store on West Broadway in Louisville, and admitted to using a handgun and threatening to shoot the clerk in the foot during the robbery of a JC Cigarette Outlet located on Crums Lane and to driving the getaway vehicle.
This case was prosecuted by Assistant United States Attorneys A. Spencer McKiness and Rob Bonar, and was investigated by the Louisville Metro Police Department.
Local Tax Preparer Convicted of Using Aliases to Continue False Tax Return Preparation after Pleading GuiltyRead the Press Release
HOUSTON – A local tax return preparer has entered a guilty plea to preparing false tax returns and obstructing the IRS in the enforcement of federal income tax laws, announced U.S. Attorney Kenneth Magidson along with D. Richard Goss, special agent in charge of Internal Revenue Service-Criminal Investigation (CI).
According to the factual basis in support of the plea, Oliphant was previously charged and convicted of preparing dozens of false 2006-08 client tax returns though Oliphant Tax Services in Huntsville. He was released on bond in that case under a condition that he have no involvement in the preparation of tax returns other than his own. However, Oliphant resumed tax return preparation and continued to claim the same false deductions for unsuspecting clients while awaiting sentencing in the earlier case.
As part of his continuation of the scheme, Oliphant changed the name of his business to “Tax Services” to make it appear he had stopped preparing client tax returns and that someone else was the owner of his tax preparation business. Oliphant allegedly attributed the fees to the nominal owner of his tax office but manipulated those tax returns to make it appear the tax office had produced almost no taxable income.
Oliphant established a series of bank accounts in the names of others - including minors with custodians other than himself - so the fees could first be deposited to accounts in the names of the nominal owner of his tax office and others. He then transferred those fees through these intermediate accounts to accounts in his own name. This scheme enabled Oliphant to conceal his personal use of the fees generated by the business during the course of the prosecution on the first case according to the plea agreement.
While operating his tax preparation business under other names, Oliphant generated $2 million in fees and a total loss to the IRS of another $400,000. The losses from the false tax returns prosecuted in the earlier case exceeded $325,000.
U.S. District Judge Keith Ellison, who accepted the guilty plea, has set a sentencing date of Feb. 22, 2017, at which time Oliphant faces up to three years in federal prison and a possible $250,000 fine as a result of today’s conviction.
Oliphant was sentenced to 33 months on the earlier case and was released Aug. 26, 2016. He was denied bond upon his arrest in the current case on Sept. 2, 2016, and remains in custody until his sentencing hearing.
Oliphant’s plea agreement requires that he surrender more than $200,000 in bank accounts linked to the scheme, his personal residence and two Mercedes Benz automobiles as restitution to the IRS in both cases.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. has prosecuted both cases.
Lenoir County Drug Trafficker Sentenced for Cocaine and Marijuana ConspiracyRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on December 6, 2016, United States District Judge Louise W. Flanagan sentenced HUBERTO ESPINDOLA-SOTO, 37, from La Grange, N.C., to 146 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and 500 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. ESPINDOLA-SOTO pled guilty to these charges on June 14, 2016.
On November 12, 2014, after a lengthy investigation, DEA Task Force Officers arrested ESPIDOLA-SOTO after he left his residence in La Grange, N.C. During a search of the residence, officers found approximately 3 kilograms of crystal methamphetamine, 5 kilograms of cocaine, two assault rifles and a .22 caliber rifle. Officers arrested a co-conspirator, AUGUSTO ESPINDOLA-PINEDA, on the same day. The investigation revealed that the conspiracy involved 335 kilograms of cocaine, 3 kilograms of crystal methamphetamine and 500 pounds of marijuana. AUGUSTO ESPINDOLA-SOTO pled guilty to the same charges in May 2016 and is scheduled to be sentenced in February 2017.
This case was part of OCDETF Operation “Smokin’ Aces”. Operation “Smokin’ Aces” was designed to attack the infrastructure of Mexican Drug Trafficking Organizations operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These organizations are responsible for the importation of large quantities of cocaine, marijuana, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The case was investigated by the Drug Enforcement Administration, the Lenoir County Sheriff’s Office, the Greenville Police Department, the Johnston County Sheriff’s Office, the Wayne County Sheriff’s Office, the Wilson Police Department, the Rocky Mount Police Department, the Nash County Sheriff’s Office, the Goldsboro Police Department, the Raleigh Police Department, and the Person County Sheriff’s Office. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office, pursuant to funding provided by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
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News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.
Last of Three Defendants Convicted for Role in Murder of Southlake, Texas, Man is SentencedRead the Press Release
FORT WORTH, Texas —The last of three defendants convicted for their respective roles in the May 2013 murder of Juan Jesus Guerrero Chapa in Southlake, Texas, Jesus Gerardo Ledezma-Cepeda, a/k/a “Chuy” and “Juan Ramos,” was sentenced this morning by Senior U.S. District Judge Terry R. Means to two life sentences to be run concurrently in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Ledezma-Cepeda, 60, was convicted at trial in May 2016 on one count of interstate stalking and one count of conspiracy to commit murder for hire.
Last week, co-defendant Jose Luis Cepeda-Cortes, 60, was sentenced by Judge Means to serve two life sentences plus 240 months to run concurrently. He was convicted at the May 2016 trial on one count of interstate stalking, one count of conspiracy to commit murder for hire, and one count of tampering with documents or proceedings.
Ledezma-Cepeda’s son, co-defendant Jesus Gerardo Ledezma-Campano, 33, was sentenced in August 2016 to 240 months in federal prison. He pleaded guilty earlier this year to one count of interstate stalking and testified for the government at trial.
All three defendants are Mexican citizens; Cepeda-Cortes was legally in the U.S.
“The sentences in this case reflect the horrific and heinous nature of the defendants’ crimes,” said U.S. Attorney Parker. “These three men methodically hunted down their intended victim through several states, in and out of Mexico, and over several months for the sole purpose of facilitating his execution. On the day of the murder, once they ensured the gunman knew the victim’s location, Ledezma-Cepeda and Ledezma-Campano stood callously by while the victim was shot multiple times in broad daylight, with the victim’s wife and dozens of shoppers nearby.”
“The successful investigation and prosecution of this violent crime is an example of the great relationship between the Southlake Police Department and our federal partners,” said Southlake Police Chief James Brandon. “Our residents and the residents of North Texas should take comfort in the fact that we will utilize every resource at our disposal to bring criminals to justice.”
“The FBI is committed to fighting cartel violence in North Texas,” said Dallas FBI Special Agent in Charge Thomas M. Class, Sr. “The exhaustive investigative work by law enforcement in this case was reflected by the lengthy prison sentences handed down to the defendants.”
“The sentencing of this defendant, as well as the other two defendants in this sophisticated organization, demonstrates the partnership between local, state, and federal law enforcement,” said the DEA Dallas Field Division’s Special Agent in Charge Clyde E. Shelley, Jr. “We will not tolerate cartel violence in our community, and we will fight until justice is served for the victims of such heinous crimes.”
On May 22, 2013, at approximately 6:47 p.m., Juan Jesus Guerrero Chapa was ambushed and shot multiple times with a 9mm pistol while seated in his Range Rover that was parked at Southlake Town Square. A Toyota Sequoia pulled up behind the Range Rover, a gunman got out of that vehicle, walked up to the Range Rover, and fired several times through the window at Mr. Chapa, who died at the scene. Nearby, Mr. Chapa’s wife was not harmed.
According to evidence presented at trial and documents filed in the case, from approximately March 1, 2011, until May 22, 2013, the three defendants traveled in interstate and foreign commerce from Mexico to Southlake, and elsewhere, with the intent to kill, injure, harass and intimidate Mr. Chapa, and as a result of that travel, Mr. Chapa was killed. In addition, from approximately May 23, 2013, until September 5, 2014, Cepeda-Cortes took steps to destroy evidence on his computer related to the investigation.
The defendants were acting on orders from a man in Mexico, Rodolfo Villarreal Hernandez, known as “El Gato,” or “the Cat,” who wanted Mr. Chapa killed as revenge for his father’s murder. Over the course of the conspiracy, Ledezma-Campano and Ledezma-Cortes received money from Ledezma-Cepeda to pay for their expenses. Ledezma-Cepeda was paid by “El Gato.”
Ledezma-Cepeda asked his son, Ledezma-Campano, to assist in the search. Ledezma-Campano used his skill with electronic devices to assist in the search, and he created email accounts for Ledezma-Cepeda and “El Gato” to communicate with each other.
The defendants exchanged information via email to locate Mr. Chapa – exchanging personal information about Mr. Chapa and his family as well as information regarding vehicles associated with them and photographs of the Chapa residence in Southlake.
The defendants used various means to locate and track Mr. Chapa and members of his family. Cepeda-Cortes purchased surveillance cameras that were placed in various locations in Mr. Chapa’s neighborhood. In addition, while in the area, the defendants purchased and rented several vehicles that allowed them to frequently change vehicles and use non-descript rental vehicles to avoid detection by Mr. Chapa and his family. They placed automobile tracking devices not only on their own vehicles, but on vehicles owned and operated by Mr. Chapa and his relatives, including the Range Rover Mr. Chapa was in when he was murdered.
After the defendants located Mr. Chapa, “El Gato” sent two assassins from Mexico to Southlake to kill him. Ledezma-Campano met the two, whom he identified as “Clorox” and “Captain,” and concluded they were sent to kill Mr. Chapa. One of the men was, in fact, the gunman who killed the victim on May 22, 2013, and the other drove the Toyota Sequoia.
On the day of the murder, Ledezma-Campano and Ledezma-Cepeda followed the victim around Southlake, and that afternoon, while the victim’s Range Rover was parked in a Walmart parking lot, Ledezma-Campano and Ledezma-Cepeda switched the tracking device on the Range Rover.
At approximately 6:00 p.m. on May 22, 2013, Mr. Chapa and his wife drove to Southlake Town Square. Ledezma-Campano and Ledezma-Cepeda, who had been parked near Chapa’s home, followed them. Mr. Chapa parked in his regular parking spot near a yogurt store, and Ledezma-Campano and Ledezma-Cepeda parked directly across from them and used binoculars to watch them.
As they waited, Ledezma-Cepeda was in regular contact, via Blackberry Messenger, with “El Gato.” Ledezma-Campano saw “Clorox” and “Captain” drive by in a Toyota Sequoia. Ledezma-Campano went into a coffee shop in Town Square and while inside he heard a commotion outside. He returned to Ledezma-Cepeda who told him “they shot him”
Ledezma-Campano and Ledezma-Cepeda waited several minutes as law enforcement responded before leaving the scene. “El Gato” told both of them to stop using the tracking device they carried in their vehicle. The next morning, they returned the rental car and drove directly into Mexico, along the way destroying the phones they had used.
The investigation was led by the FBI and the Drug Enforcement Administration, with assistance from the Southlake Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, US. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), U.S. Customs and Border Protection, Texas Department of Public Safety, Tarrant County Sheriff’s Office, Tarrant County District Attorney’s Office, Fort Worth Police Department and Grapevine Police Department.
Assistant U.S. Attorneys Joshua Burgess and Aisha Saleem prosecuted the case.
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Last Defendant Sentenced in Brazen UH Armored Car RobberyRead the Press Release
HOUSTON – The final defendant in the notable armored car robbery that occurred on the University of Houston (UH) Central Campus exactly three years ago today has been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. Allen Bernard Roundtree, 31, of Houston, pleaded guilty Aug. 6, 2014, to one count of conspiracy to interfere with commerce by robbery and one count of aiding and abetting interference with commerce by robbery.
Today, U.S. District Judge Keith P. Ellison sentenced Roundtree to a total of 108 months in federal prison to be immediately followed by three years of supervised release. He was also ordered to pay a $17,500 fine.
Also convicted were James Van-Gerald Johnson, 33, and Ronald Dean Richards, 26, both of Houston, who pleaded guilty in February and August 2014, respectively. Dezmond Lacraig Edwards, 26, also of Houston, proceeded to trial and was convicted Dec. 11, 2015. All were sentenced earlier this month. Johnson received a sentence of 125 months for his two counts of conviction - aiding and abetting interference with commerce by robbery and brandishing a firearm during and in relation to a crime of violence, while Richards had pleaded to one count of aiding and abetting interference with commerce by robbery and was ordered to serve 60 months in federal prison. Judge Ellison sentenced Edwards to a 130-month-term for conspiracy to interfere with commerce by robbery and one count of aiding and abetting interference with commerce by robbery.
Edwards was a Loomis guard who previously had driven the UH route and had provided inside information about the armored car and the route to Johnson, Richards and Roundtree. Some of the information included the facts that the side door of the armored car was broken and unlatched, making it easy to enter and that the driver was pregnant and would be unarmed.
The robbery occurred exactly three years ago – Dec. 6, 2013 - while students were attending completing final exams. On that day, Roundtree had dropped Johnson off at the campus. While the armored car’s courier was servicing an ATM machine, Johnson entered the armored car, stuck his pistol into the driver’s side and ordered her out of the vehicle. He then jumped in the driver’s seat and drove away. Roundtree followed in a truck. The driver had yelled and alerted the courier who then responded by pursuing the armored car on foot. The courier discharged his weapon, aiming for the armored car’s tire in an attempt to disable it. The armored car did not slow down and was driven to a UH parking garage on campus, where Richards met them in another vehicle to transfer the stolen money. The armored car was abandoned in the UH garage.
The FBI conducted the investigation along with UH police, Texas Rangers and the Houston Police Department.
Assistant U.S. Attorneys Joe Porto, Jennie Basile and Andrew Gould prosecuted the case.
Laredo Judge Sentences Lake Jackson Man for Sexual Enticement of a MinorRead the Press Release
LAREDO, Texas – A 40-year-old man has been ordered to federal prison following his conviction of attempting to entice a minor to engage in unlawful sexual activity, announced U.S. Attorney Kenneth Magidson. Michael James Corsten, of Lake Jackson, pleaded guilty Dec. 15, 2015.
Today, U.S. District Judge Marina Garcia-Marmolejo ordered he serve 180 months in prison. Corsten will also serve 20 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
Corsten had posted a Craigslist ad for individuals interested in “family fun.” Soon after, he began a conversation with someone he thought had a 14-year-old daughter. Numerous times, Corsten mentioned sexual acts he wanted to perform on the fictional daughter. He also sent sexually explicit pictures of his private parts asking for them to be shown to the girl and stated he wanted the child to help him groom other children so that he could sexually assault them.
He soon made arrangements to travel to Laredo for the purposes of having sex with the 14-year-old child. He was arrested Oct. 9, 2015, upon his arrival.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) conducted the investigation. Assistant U.S. Attorney Alfredo De La Rosa prosecuted the case.
Justice Department Requires Alaska Airlines to Significantly Scale Back Codeshare Agreement with American Airlines in Order to Proceed with Virgin America AcquisitionRead the Press Release
Settlement Ensures that Alaska Will Have Incentive and Ability to Vigorously Compete with Larger Airlines
The Department of Justice announced today that it will require Alaska Air Group Inc. to significantly reduce the scope of its codeshare agreement with American Airlines, the world’s largest airline, in order for Alaska to complete its $4 billion acquisition of Virgin America Inc. The department said that these modifications will ensure that Alaska will have the incentive to vigorously compete with American as Virgin does today.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the merger, along with a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit. The merger of Alaska and Virgin would combine the nation’s sixth- and ninth-largest airlines, respectively, to create the fifth-largest U.S. carrier.
“Smaller airlines, such as Alaska and Virgin, provide a critical competitive check on the larger carriers,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “Although this merger offers hope that a strengthened Alaska can be an even stronger competitor than before, because of Alaska’s extensive codeshare agreement with the world’s largest airline, the merger threatened to blunt important competition and reduce choices for consumers. Today’s settlement ensures that Alaska has the incentive to take the fight to American and use Virgin’s assets to grow its network in ways that benefit competition and consumers.”
Alaska and Virgin have both tended to offer lower prices and better service than the larger airlines. However, the complaint alleges that the codeshare agreement, which currently allows Alaska to market American flights on over 250 routes, creates incentives for Alaska to compete less aggressively on routes both carriers serve and to forgo launching new service in competition with American. As a result of these incentives, the complaint alleges that Alaska and American often behave more like partners than competitors.
In contrast to Alaska, Virgin – which has a network that extensively overlaps with American’s network – has competed aggressively with American. In particular, Virgin has vigorously competed with American on 20 nonstop routes served by both airlines. This competition has forced American to offer consumers lower prices and better service on some of the most traveled routes in the country. According to the complaint, the significant head-to-head competition between Virgin and American on these routes is due in part to the fact that Virgin holds essential and scarce assets, including airport gates and takeoff and landing rights known as “slots,” at key American strongholds. Virgin acquired some of these assets, including gates at Dallas Love Field Airport and slots at Washington Reagan National Airport and New York’s LaGuardia Airport, as part of the settlement of the department’s lawsuit challenging the 2013 merger of American and US Airways. The complaint alleges that the extensive codeshare relationship between Alaska and American would cause Alaska to compete less vigorously with American than does Virgin today, resulting in lower quality service and/or higher prices on the routes where Virgin and American currently compete. The complaint also alleges that the codeshare would make Alaska less likely than Virgin to launch new service in direct competition with American.
To address the transaction’s likely competitive harm, the proposed settlement requires Alaska to significantly reduce the scope of the codeshare agreement. Specifically, in order to reduce Alaska’s overall dependence on the codeshare and limit Alaska’s incentives to cooperate with American, the proposed settlement prohibits Alaska and American from codesharing on routes where Virgin and American compete today and on routes where Alaska would otherwise be likely to launch new service in competition with American following the merger. At the same time, the settlement permits Alaska and American to continue codesharing in limited circumstances where it is unlikely to lead to competitive harm and may offer some benefits to consumers. For example, the settlement would permit either airline to rely on the codeshare to serve destinations it would otherwise be unlikely to serve on its own in the near term. The department explained that this last type of codesharing can potentially benefit consumers by extending each carrier’s network and is less likely to lead to anticompetitive harm.
To preserve the competitive benefits brought about by the divestures to Virgin as part of the American-US Airways settlement, the proposed settlement requires Alaska to obtain the department’s approval before selling or leasing any of the gates or slots that were divested to Virgin and expressly prohibits Alaska from transferring any interest in the assets to American. This requirement ensures that American does not directly or indirectly regain control of the assets it divested to Virgin to settle the department’s challenge to the American-US Airways merger.
Alaska is a Delaware corporation headquartered in Seattle. Last year, Alaska flew over 31 million passengers to approximately 112 locations worldwide, taking in more than $5.5 billion in revenue.
Virgin is a Delaware corporation headquartered in Burlingame, California. Last year, Virgin flew over 7 million passengers to approximately 24 locations worldwide, taking in more than $1.5 billion in revenue. Virgin is one of several entities bearing the “Virgin” name pursuant to a licensing agreement with the Virgin Group, which owns approximately 18 percent of Virgin’s outstanding voting common stock. Although other airlines, such as Virgin Atlantic Airways, bear the Virgin name, they operate separately from Virgin America.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Kathleen O’Neill, Chief, Transportation, Energy, and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Alaska-Virgin CIS
Alaska-Virgin Complaint
Alaska-Virgin Explanation
Alaska-Virgin PFJ
Alaska-Virgin Stipulation
Justice Department Releases Videos Highlighting Work of Community Relations ServiceRead the Press Release
The Justice Department’s Community Relations Service (CRS) released three videos today highlighting the impact of their work in Sanford, Florida; Duluth, Minnesota; and Jackson, Mississippi. These videos provide a sample of the successful services provided by CRS and the lasting impact made on communities.
“As the department’s ‘peacemaker’ for community conflicts and tensions, the Community Relations Service has one of the most demanding and critical jobs in the Department of Justice,” said Attorney General Loretta E. Lynch. “By bringing together stakeholders from all walks of life for peaceful dialogue and meaningful cooperation, CRS helps give divided communities a chance to embark on a more hopeful and united path. For over 50 years, they have met the needs of communities across the country with unfailing skill and unflagging dedication. Our nation is a more just and peaceful place because of their efforts, and I want to thank CRS for its outstanding contributions throughout this administration.”
CRS’ involvement in Sanford followed the death of Trayvon Martin in 2012 and focused on building a relationship between faith leaders in the community and the city’s law enforcement. The video features interviews with Sanford’s Mayor, City Manager, the County Sherriff and members of the faith community who highlight CRS’ effort to institute regular meetings to discuss the legal proceedings which ensured open dialogue between law enforcement and local clergy. CRS also negotiated courtroom seating access for faith leaders so that they could gain firsthand knowledge of the trial and disseminate that information – free of misleading rumors – to their congregations and the community at large. In the video, Sanford’s City Manager, Norton Bonaparte, stressed that CRS was there to assist, but remained neutral while working to strengthen trust and facilitate discussions between law enforcement and the community.
CRS went to Duluth in response to a race-related cyber bullying incident involving the dissemination via social media of an offensive image at Denfeld High School. In response, CRS conducted a Student Problem Identification and Resolution of Issues Together (SPIRIT) program. The SPIRIT program brought together more than 100 students, faculty, administrators and community leaders to discuss the inflammatory image as well as larger issues of race and class. In the video, the Principal of Denfeld High School Tonya Sconiers described CRS as a “catalyst for real change,” and encouraged other communities to reach out to CRS before, during and after times of crisis to ease tensions and build trust.
In Jackson, CRS facilitated a training for local law enforcement to help foster a stronger relationship with and better serve the transgender community. Unlike in Sanford or Duluth, CRS’ involvement was not prompted by a particular incident. Rather, leaders in Jackson raised concerns about the relationship between law enforcement and the transgender community, and proactively requested the training to improve understanding and avoid future issues. CRS led the training alongside local transgender community partners, who are shown in the video leading portions of the session. In the video, the local transgender trainers discuss the importance of their inclusion in the training, highlighting that it gave them the chance to speak for themselves and gave law enforcement the opportunity to engage in open dialogue with their community.
CRS was established under Title X of the Civil Rights Act of 1964 to resolve “disputes, disagreements or difficulties relating to discriminatory practices based on race, color or national origin.” It is not an investigatory or prosecutorial agency, and it does not have any law enforcement authority. Rather, CRS works with all parties, including state and local governments, private and public organizations, civil rights groups and local community leaders to uncover the underlying interests of all of those involved in the conflict and facilitate solutions to the community's challenges. Under the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act of 2009, CRS assists communities in developing local mechanisms and community capacity to prevent tension and violent hate crimes from occurring in the future. CRS works in all 50 states and the U.S. territories, and in communities large and small, rural, urban and suburban.
Illegal Alien Charged with Possession of A FirearmRead the Press Release
Federico Sanchez-Bello, 36, of Norristown, PA, was charged today by Indictment[1] with being an illegal alien in possession of a firearm, announced United States Attorney Zane David Memeger. The indictment alleges that on or about September 4, 2016, Sanchez-Bello, a native and citizen of Mexico unlawfully in the United States, possessed a .45 caliber semi-automatic pistol.
If convicted the defendant faces a maximum possible, sentence of ten years imprisonment.
The case was investigated by Homeland Security Investigations (“HSI”) and the Norristown Police Department, and is being prosecuted by Special Assistant United States Attorney Josh A. Davison.
[1]An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Harrisburg Man Convicted of Possession of Crack and of A Firearm in Furtherance of Drug TraffickingRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jwane Johnson, age 28, of Harrisburg, was convicted by a federal jury of possession with intent to distribute crack, possession of a handgun by a convicted felon, and possession of a firearm in furtherance of drug trafficking. The two-day trial was held before United States District Court Judge William W. Caldwell in Harrisburg.
According to United States Attorney Bruce D. Brandler, the jury returned the verdict after approximately two hours of deliberation. The jury found that Johnson attempted to distribute crack near the Allison Hill section of Harrisburg on December 8, 2015 and when the sale was interrupted by Harrisburg Police, he fled leaving behind a 9mm semi-automatic handgun. He was later arrested near the same area on January 2, 2016, while in possession of crack cocaine that the jury found he intended to distribute.
The matter was investigated by the Harrisburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorneys Scott R. Ford and Joseph J. Terz.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for this offense is up to life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Treasurer of Labor Union Sentenced for Embezzling Union Dues and Filing False Report with Department of LaborRead the Press Release
Jeffrey Magelitz, 44, of Chester, Illinois, was sentenced to two years of probation, six months of home detention and 100 hours of community service as a result of his convictions in a two-count Indictment that charged embezzlement and theft from a labor union and for filing a false report with the Department of Labor, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Magelitz made complete restitution prior to being sentenced. Magelitz was the former treasurer of the American Federation of State, County and Municipal Employees, Local 415 in Vienna, Illinois from January of 2012 through June of 2013. AFSCME Local 415 represents employees at the Vienna Correction Center, located in Vienna, Illinois. Magelitz embezzled approximately $30,000 and prepared and cashed unauthorized checks for himself and forged the signatures of the president and vice-president of the union on the checks. Magelitz also submitted a false annual report for the union which contained the forged signature of the president and falsely reported the amount of money that he received during the year.
The prosecution is the result of an investigation by the U.S. Department of Labor, Office of Labor Management Standards, with the assistance of the labor union. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Former CEO of Coupon Clearinghouse Convicted of Fraud & Conspiracy to Obstruct JusticeRead the Press Release
United States Attorney Gregory J. Haanstad has announced that on December 5, 2016, Thomas C. Balsiger (63) of El Paso, Texas, was convicted of 12 felony offenses relating to his role in devising and executing a wide-ranging fraud scheme involving retail coupons.
In December 2007, a federal grand jury indicted International Outsourcing Services (IOS), which at the time was the nation’s largest clearinghouse for retail coupons, as well as eleven individuals, including Mr. Balsiger, IOS’s Chief Executive Officer and one of its owners, for allegedly executing a scheme to defraud manufacturers who issued “cents off” coupons for use by consumers as well as to defraud IOS’s own retail clients. The grand jury also alleged that Mr. Balsiger and his codefendants conspired to defraud these entities and further conspired to obstruct the investigation into their activities by: (1) providing false information to federal law enforcement; (2) providing false information to retail clients who had received grand jury subpoenas; (3) attempting to persuade individuals to provide false information if contacted by law enforcement; (4) suing and threatening to financially harm IOS employees who cooperated with law enforcement; and (5) concealing and destroying records to prevent their discovery by law enforcement.
Following the trial, which lasted over a month, United States District Judge Charles N. Clevert, Jr. convicted Mr. Balsiger of 10 counts of wire fraud and one count of wire fraud conspiracy, each of which carries a maximum penalty of up to 20 years in prison. Mr. Balsiger also was convicted of conspiring to obstruct justice, which carries a maximum penalty of 5 years in prison. Mr. Balsiger also faces a potential restitution order.
Judge Clevert has set Mr. Balsiger’s sentencing for March 6, 2017.
The case was assigned to Assistant United States Attorneys Richard G. Frohling, Kelly B. Watzka, Stephen A. Ingraham, and Zachary J. Corey for prosecution. The case was investigated by the Federal Bureau of Investigation.
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Florida Woman Guilty of Interstate Stolen Credit Card SchemeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carol Watts, age 44, of Ft. Lauderdale, Florida, pleaded guilty today before United States District Court Judge John E. Jones, III, to conspiring to use stolen credit cards.
According to United States Attorney Bruce D. Brandler, Watts conspired with others to use stolen credit cards to purchase electronic merchandise and gift cards from stores in central Pennsylvania, such as Target and Best Buy. The co-conspirators engaged in this conduct for approximately eight months from 2014 to 2015. Miller and her co-conspirators travelled from Florida to Pennsylvania breaking into cars to steal credit cards and identification documents in order to buy iPads, iPods, MacBooks and other electronic merchandise and gift cards. The total loss as a result of the scheme is estimated to be $179,500.
The case was investigated by the Harrisburg Resident Office of the United States Secret Service, the Lower Paxton Township Police Department, and numerous other law enforcement agencies. Assistant United States Attorney William A. Behe is prosecuting the case.
The maximum penalty under federal law for this offense is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Five Plead Guilty to Kidnapping, Cocaine and Heroin Distribution, and/or Firearm Offenses in Case Where Numerous Shots Were Fired at Ennis Police Officer During High Speed PursuitRead the Press Release
DALLAS — Five defendants have pleaded guilty to kidnapping, cocaine and heroin distribution, and/or firearm offenses in a case related to the attempted kidnapping of an individual because of an unpaid drug debt. Today, Melissa Trevino, 23, pleaded guilty before U.S. Magistrate Judge Paul D. Stickney to one count of conspiracy to commit kidnapping. She is the last of five defendants to enter guilty pleas in the case. Today’s announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
Trevino, faces a maximum statutory penalty of life in federal prison and a $250,000 fine. Sentencing is set for March 23, 2017.
Four other defendants charged in the case also recently pleaded guilty. One remaining defendant charged in the case, Jonathan Benitez, remains a fugitive.
Javier Martinez, 24, of Lancaster, Texas, pleaded guilty on November 15, 2016, to several felony offenses: one count each of conspiracy to commit kidnapping; possession with intent to distribute cocaine; possession with intent to distribute heroin; using, carrying, and brandishing a firearm during or in relation to a crime of violence; and possession of a firearm in furtherance of a drug trafficking crime. While Martinez faces a statutory maximum sentence of life in federal prison and a $2.75 million fine, if the Court accepts the plea agreement between the government and the defendant, Martinez should receive a total sentence of 40 years in federal prison. Sentencing is set for March 2, 2017.
Maria Guadalupe Bello, 22, pleaded guilty on November 1, 2016, to one count of conspiracy to possesses heroin with the intent to distribute it. She faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Sentencing is set for February 16, 2017.
Jose Cardenas Aguirre, 25, pleaded guilty on October 25, 2016, to one count of conspiracy to commit kidnapping. He faces a maximum statutory penalty of life in federal prison and a $250,000 fine. Sentencing is set for February 9, 2017.
Indolfo Martinez, 47, who is Javier Martinez’s father, pleaded guilty on October 18, 2016, to one count of possession of cocaine with the intent to distribute. He faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Sentencing is set for February 2, 2017.
According to documents filed in the case, on July 12, 2016, Javier Martinez, along with co-defendants Jose Cardenas Aguirre and Melissa Trevino, planned to kidnap another individual because of an unpaid drug debt involving cocaine. During the planned kidnapping, Javier Martinez and Aguirre wore ballistic vests and black camouflage clothing. The kidnapping was unsuccessful, and as Javier Martinez, Aguirre, and Trevino fled the scene, they were engaged in a high-speed chase with officers with the Ennis Police Department. During this pursuit, Javier Martinez, using an AR-156 style rifle, fired numerous shots at a police officer. Javier Martinez led, supervised, and organized this planned kidnapping. Trevino also worked with Javier Martinez in selling illegal narcotics.
Between December 2015, and continuing to July 2016, Javier Martinez conspired to possess with intent to distribute cocaine and heroin. On February 5, 2016, Javier Martinez possessed a firearm in furtherance of these drug trafficking crimes.
Indolfo Martinez was his son’s cocaine supplier. In July 2016, Indolfo Martinez met with an individual and offered to sell that individual a kilogram of cocaine for $28,300. In the same conversation, Indolfo Martinez offered to sell three kilogram of cocaine to that individual for a reduced price of $28,000 per kilogram. During that conversation, Indolfo Martinez instructed this other individual, the purported cocaine purchaser, to use the code phrase, “horses with saddles,” when referencing cocaine.
In addition, according to the factual resume, on January 7, 2016, Javier Martinez sold another individual one ounce of heroin and offered to sell that same individual one kilogram of heroin for $40,000. During that same conversation, Javier Martinez offered to sell the same individual an AK-47 for $7,000 and an AR-15 rifle for $1,500. On April 11, 2016, Javier Martinez and Bello, who were involved in a romantic relationship since October 2015 and had lived together since January 2016, sold three ounces of heroin and two AR-15’s to another individual; these drug and gun sales took place at Javier Martinez’s residence.
The case was investigated by the Ennis Police Department and the FBI’s Violent Gang Taskforce. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Five Methamphetamine Traffickers Sentenced to PrisonRead the Press Release
STATESVILLE, N.C. – Late yesterday, U.S. District Judge Richard L. Voorhees handed down lengthy prison terms ranging from 106 to 135 months to five methamphetamine traffickers, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
The five defendants were sentenced are:
- Juan Ernesto Ortiz-Rodriguez, 30, of Statesville, N.C., was sentenced to 135 months, followed by five years of supervised release. (5:15-cr-73)
- Paul William Miles, 31, of Conover, N.C., was sentenced to 120 months, followed by five years of supervised release. (5:15-cr-77)
- Daniel Verbsky Vandervelde, 41, of Conover, was sentenced to 120 months, followed by five years of supervised release. (5:16-cr-37)
- Jerrod Michael Benfield, 35, of Hiddenite, N.C., was sentenced to 120 months, followed by five years of supervised release. (5:15-cr-73)
- Jonathan Daniel Hatfield, 38, of Lenoir, N.C., was sentenced to 106 months, followed by five years of supervised release. (5:16-cr-3)
All of the defendants were charged as part of the Western District’s ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation, “Dixie Crystal.” According to court documents, since the beginning of the investigation in 2015, 123 individuals have been prosecuted federally as a result of this investigation. Court records show that the drug trafficking organizations involved, have trafficked methamphetamine worth millions of dollars. Over the course of the investigation, law enforcement seized far in excess of 20 kilograms of crystal methamphetamine, $100,000 in U.S. currency and other assets, and dozens of firearms.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Rose thanked ICE’s Homeland Security Investigations (HSI); the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; the North Carolina State Bureau of Investigation; the North Carolina State Highway Patrol; the Alexander County Sheriff’s Office; the Alleghany County Sheriff’s Office, the Ashe County Sheriff’s Office, the Boone Police Department, the Burke County Task Force, the Caldwell County Sheriff’s Office, the Catawba County Sheriff’s Office, the Hickory Police Department, the Iredell County Sheriff’s Office, the Lenoir Police Department, the Lincoln County Sheriff’s Office, the Mooresville Police Department, the Pineville Police Department, the Statesville Police Department, the Wilkes County Sheriff’s Office, and other law enforcement agencies throughout North Carolina and Texas, Georgia, and Tennessee for their assistance in this investigation.
The prosecution is being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Essex County, New Jersey, Man Charged with Bank Robbery Spree in Essex and Hudson CountiesRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man was charged today with robbing five banks from late October 2016 through November 2016, U.S. Attorney Paul J. Fishman announced.
Jermaine Mason, a/k/a “Asim Harris,” 39, is charged by criminal complaint with five counts of bank robbery. Prior to his arrest, Mason was on federal supervised release for a federal bank robbery conviction after he robbed several banks in 2006 and 2007. His initial appearance will be scheduled at a later date.
According to the complaint filed today, Mason robbed the following New Jersey banks:
Bank
Location
Date
Kearny Bank
Harrison
Oct. 21, 2016
PNC Bank
Jersey City
Nov. 3, 2016
Popular Community Bank
Newark
Nov. 17, 2016
Provident Bank
Jersey City
Nov. 18, 2016
Provident Bank
Kearny
Nov. 29, 2016
At each bank, Mason either presented a note demanding cash from bank tellers or verbally demanded money. For example, during the Nov. 3, 2016 robbery, Mason handed the teller a note which read: “I’m not going play [sic] with you. You get one chance. $100 [and] $50 bills pass to me – stack!” Likewise, during the Nov. 17, 2016 robbery, he handed the teller a note reading: “Hand me the money. $100 bills or we [are] going [to] have a problem!”
Mason was apprehended on Nov. 30, 2016, by officers of the Jersey City Police Department, agents from the FBI, and the U.S Marshals.
Each bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI’s Violent Crimes/Interstate Theft Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked the U.S. Marshals, the Kearny, Jersey City, Harrison, and Newark police departments, as well as the Hudson County and Essex County Prosecutor’s Offices for their efforts in the investigation and apprehension of Mason.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty