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Tuesday 6 December 2016
Elkins man pleads guilty to unlawful possession of a firearmRead the Press Release
ELKINS, WEST VIRGINIA – Anthony Blackburn, 26, of Elkins, West Virginia, pled guilty today to unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Blackburn, who was previously convicted of a misdemeanor offense of “Domestic Battery” in Randolph County, admitted to possessing a .9mm pistol and a .380 caliber pistol in April 2016. 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 D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Detroit One Collaboration Leads to Indictment of Nine Additional Gang Members on Racketeering and Murder ChargesRead the Press Release
The collaboration of local, state and federal law enforcement under the Detroit One initiative has resulted in the indictment of nine more members of the 6 Mile Chedda Grove street gang from Detroit’s east side, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement was Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division, and Chief James Craig, Detroit Police Department.
The initial indictment in June charged Edwin Mills and Carlo Wilson with murder in aid of racketeering for the mid-afternoon shootings that occurred at the Troester Market on December 1, 2015, that resulted in two deaths and serious injuries to children. The superseding indictment unsealed today adds nine more defendants and charges racketeering conspiracy, additional murders in aid of racketeering and related offenses. Two additional murders charged in the superseding indictment also occurred in broad daylight on February 7, 2015, and August 20, 2015.
According to the superseding indictment, “6 Mile Chedda Grove” is a street gang that operates primarily within an area bordered roughly by East McNichols Road to the north, Kelly Road to the east, Houston-Whittier Street to the south, and Chalmers Street to the west. The superseding indictment alleges that 6 Mile Chedda Grove is a violent organization responsible for murders, assaults, robberies, and firearms and narcotics trafficking in the Detroit metropolitan area and in other states. The gang allegedly uses violence to retaliate against rivals, to intimidate witnesses and to advance members’ positions within the gang.
Under the Detroit One initiative, and through the lead efforts of the FBI’s Violent Gang Task Force and the Detroit Police Gang Intelligence Unit, law enforcement identified several members of this gang who have been charged in the superseding indictment in federal court. The Task Force includes representatives of the Detroit Police Department, Michigan Department of Corrections and the U.S. Border Patrol.
Four defendants were taken into custody over the last two days on this indictment:
- Mario Leico Jackson, a/k/a “Ugg,” 23, of Detroit, charged with racketeering conspiracy;
- Phillip Glen-Earl Peaks, a/k/a “Peezy,” 28, of Detroit, charged with racketeering conspiracy;
- Michael Richardson, a/k/a “Mikey Made,” 28, of Detroit, charged with racketeering conspiracy, felon in possession of a firearm, possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime;
- Devontae Aaron Russell, a/k/a “Tae,” 23, of Knoxville, Tennessee, charged with racketeering conspiracy.
Seven other defendants are already in federal or state custody based upon other charges, including:
- Edwin Lamont Mills, a/k/a “Ed Boy,” 26, of Detroit, charged with racketeering conspiracy, and two counts each of murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, and using and carrying a firearm during a crime of violence causing death;
- Carlo Dajuan Wilson, a/k/a “Los,” 23, of Warren, charged with racketeering conspiracy, and two counts each of murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering and using and carrying a firearm during a crime of violence causing death;
- Donell Christopher Thompson, a/k/a “Dnell,” 26, of Detroit, charged with racketeering conspiracy, and one count each of murder in aid of racketeering and using and carrying a firearm during a crime of violence causing death;
- Lomnil Bookies Jackson, a/k/a “Lomo,” 23, of Detroit, charged with racketeering conspiracy, and one count each of murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering and using and carrying a firearm during a crime of violence causing death;
- Patrick Jeffrey Johnson, a/k/a “Cane,” 22, of Detroit, charged with racketeering conspiracy;
- Corey Alexander Mills, 22, of Detroit, charged with racketeering conspiracy;
- Robert Wayne Baytops, a/k/a “R.B.,” 41, of Detroit, charged with racketeering conspiracy and felon in possession of firearms.
"The Detroit One strategy to dismantle violent gangs has two key components -- enforcement operations like this one and intervention through the Ceasefire call-in program, stated U.S. Attorney McQuade. “The Detroit One enforcement efforts target street gangs that are responsible for violence in our neighborhoods. We have seen encouraging results, including a 35 percent reduction in shootings in Detroit’s 9th Precinct, where this gang operates."
“We are extremely proud of the outstanding work done today by our agents and law enforcement partners, which is the result of long-term efforts to counter violent crime, illegal drugs, and organized criminal activity,” said David P. Gelios, Special Agent in Charge of the Detroit Field Office. "The continued success and impact of the Detroit One Initiative is persuasive evidence of how interagency collaboration results in tangible public safety benefits to the citizens we serve in the Detroit metropolitan area."
"The people of Detroit deserve a safe city in which they may thrive," said Chief James E. Craig. "The Detroit One partnership is rooted in the belief that all citizens and neighborhoods deserve to be free of crime and our joint efforts to make that a reality will continue."
Detroit One is a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working collaboratively, local, state, and federal law enforcement is striving to maximize its ability to identify and arrest the individuals and groups initiating the violence in Detroit. This indictment is the latest in a string of charges from the U.S. Attorney’s Office and Wayne County Prosecutor’s Office during the last four years involving violent street gangs in the city of Detroit, including:
- 17 members of the Seven Mile Blood street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- Nine members of the Bounty Hunter Bloods street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- 13 members of the Latin Counts street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- 14 members of the Phantom Outlaw Motorcycle Club / Vice Lords street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- Four Vice Lord members in state court for armed robbery and a Vice Lord leader charged under the federal street gang statute for his role in that armed robbery;
- Nine Vice Lords members for racketeering charges stemming from the shooting of four individuals at their family residence on Detroit’s northwest side;
- Three members of the Band Crew street gang charged under the state of Michigan gang felony statute for violent acts in furtherance of their gang activities and eight members of the Band crew for federal racketeering conspiracy and other violent acts in furtherance of racketeering; and
- 10 members of the RTM street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- 24 individuals on drug conspiracy charges for their use of sixteen different houses in the east side Ravendale neighborhood of Detroit, many of them abandoned homes, for distributing heroin, cocaine, and crack cocaine between 2013 – 2015
- 14 individuals on criminal enterprise, drug distribution or weapons offense for drug distribution in the west side Warrendale neighborhood of Detroit
Most significantly, Detroit has seen a reduction in the overall violent crime rate every year since the Detroit One collaboration began in 2013.
Mario Jackson and Michael Richardson will appear in federal court in Detroit this afternoon. The other defendants will appear in federal court on later dates.
A superseding indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Delaware Man Sentenced to Ten Years for Passing Forged Oxycodone PrescriptionsRead the Press Release
Yesterday, a federal judge sentenced Khar Abdulah, 40, of New Castle, Delaware to ten years in prison for his role in schemes to distribute oxycodone, commit health care fraud and commit aggravated identity theft, announced United States Attorney Zane David Memeger. The Honorable Paul S. Diamond, United States District Judge, also ordered Abdulah to pay full restitution to the health care benefit programs that the defendant and his co-conspirators had defrauded, and further ordered Abdulah to serve three years of supervised release upon his release from prison.
On March 18, 2016, a grand jury in Philadelphia returned a second superseding indictment charging Abdulah and a codefendant with conspiring to distribute oxycodone, a Schedule II controlled substance, conspiracy to commit health care fraud and aggravated identity theft. From March 2012 until August 2013, Abdulah forged prescriptions for oxycodone, filled them at pharmacies using stolen health insurance information, then sold the pills on the street. On August 16, 2016, Abdulah pleaded guilty to all charges against him in the indictment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Mary E. Crawley.
Cross Lanes carjacker sentenced to 10 years in prison for crime spree resulting in multiple federal chargesRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man was sentenced today to a total of 10 years in federal prison for carjacking and a drug crime, announced United States Attorney Carol Casto. David Allen Young, 24, previously pleaded guilty to two counts of carjacking and one count of conspiracy to distribute methamphetamine. Young was sentenced to 10 years on each count and the sentences will be served concurrently.
Young admitted that from summer 2014 through January 2016, he was part of a large-scale methamphetamine trafficking network. During that time period, he received at least 40 pounds of crystal methamphetamine from his sources and distributed it to individuals in and around Kanawha County.
Young further admitted that on January 24, 2016, he stole a Ford Expedition in Putnam County and fired a shot at an occupied vehicle in St. Albans. Later that same day, Young approached a Ford Edge SUV on foot near the intersection of Big Tyler Road and Waycross Drive in Cross Lanes. Young pointed a 9 mm handgun at a man occupying the SUV and ordered him to get out of the vehicle. The man complied and Young got into the Ford Edge and drove away. Young drove until he approached a Chevrolet S-10 truck in Cross Lanes occupied by another man and his juvenile son. Young pointed the same handgun at those individuals and ordered them out of the truck. Young then got into the truck and drove to the Dalewood Trailer Park in Cross Lanes. He shot through the glass door of a residence in the trailer park and stole a television, which he intended to trade for drugs. Young was arrested on January 26, 2016.
The investigation into the drug conspiracy was handled by the FBI and the Charleston Police Department’s Special Enforcement Unit. The carjackings were investigated by the Kanawha County Sheriff’s Department. Assistant United States Attorney Haley Bunn is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District. This case was also brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Crip Gang Members Sentenced in Gas Station Robbery SpreeRead the Press Release
Montgomery, Alabama – Tremane Darnell Carthen (37), Kevin Levarius Martin (27), and Scottie Jeroma Groce (26), all from Montgomery have been sentenced for their participation in a series of armed convenience store robberies, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. Yesterday, U.S. District Judge Kristi K. Dubose, sentenced Martin to 13 years incarceration, followed by five years of supervised release. Groce and Carthen each received a sentence of 57 years and one month in jail, followed by five years of supervised release.
Carthen, Martin and Groce were all either members of, or associated themselves with, the Crip street gang and in July of 2014, went on a crime spree in North Elmore County, Wetumpka, and Autauga County.
Carthen, Martin, and Groce were indicted in November of 2015 for conspiracy, robbery, and gun charges. These charges arose out of the three robbing the Chevron Service Station on U.S. Highway 31 North in Prattville, the Chevron Service Gas Station located on Alabama Highway 143, in Elmore County, and the Marathon Service Gas Station located on Coosa River Parkway in Wetumpka. In August of 2016, Kevin Martin pleaded guilty to conspiracy, robbery, and pointing a gun at the victims during the robbery. In September of 2016, Groce and Carthen, were tried and found guilty by a jury of conspiring with Martin to rob the three convenience stores, robbing the convenience stores, and pointing firearms at the victims while committing the robberies.
“People should be free from the fear of violence in their homes and businesses,” stated U.S. Attorney Beck. “One goal of my office has been and will continue to be vigorously prosecuting those violent criminals who victimize our citizens and to remove those illegal gun toters from the streets. These lengthy sentences should give pause to those hoodlums who dare invade our homes and businesses.”
“This investigation will have a lasting impact on reducing firearms-related gang violence in the tri-county area,” stated ATF Montgomery Resident Agent in Charge Jennifer Rudden Conway. “The ATF Montgomery Field Office will continue to work closely with our counterparts in combating violent crime in the Middle District of Alabama,”
The case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Elmore County Sheriff’s Office, the Autauga County Sheriff’s Office, the Alabama Department of Forensic Sciences, the Montgomery County Sheriff’s Office, the Wetumpka Police Department, and the Alabama Department of Corrections. This case was prosecuted by Assistant United States Attorneys Susan R. Redmond and Steven Lee.
Clarkdale Man Sentenced to Federal Prison for Sexual AbuseRead the Press Release
PHOENIX – Yesterday, Derek Anson Beecher, 33, of Clarkdale, Ariz., a member of the Yavapai-Apache Nation, was sentenced by U.S. District Judge G. Murray Snow to 87 months in federal prison, followed by a term of lifetime supervised release. Beecher had previously pleaded guilty to sexual abuse.
In early 2016, Beecher caused a minor victim to engage in a sexual act. The incident occurred on the Yavapai-Apache Nation Indian Reservation.
The investigation in this case was conducted by the Yavapai-Apache Nation Police Department and the Federal Bureau of Investigation. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-8106-GMS
RELEASE NUMBER: 2016-099_Beecher
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Canton man faces child pornography chargesRead the Press Release
Matthew Ungashick, 39, of Canton, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
The indictment charges that on or about July 25, 2016, Ungashick knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. The indictment also charges that on or about November 3, 2016, Ungashick possessed a two external computer hard drives and numerous computer disks, each of which contained child pornography.
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. This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan.
The case was investigated by the Canton office of the Federal Bureau of Investigation and the Canton Police Department. 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.
Canadian Deputy Health Minister Impersonator Sentenced to 60 Months’ Imprisonment in $26 Million Fraud SchemeRead the Press Release
BROOKLYN, NY – Earlier today, Howard Leventhal, the President, Chief Executive Officer and Chief Technology Officer of mHealth Technologies Corp., formerly named Neovision USA, Inc. (Neovision), was sentenced by United States District Judge Brian M. Cogan to 60 months’ imprisonment. In December 2013, Leventhal had pleaded guilty to wire fraud and aggravated identity theft for defrauding and attempting to defraud a number of individuals and entities of millions of dollars by falsely claiming that Neovision had a lucrative contract with Canada’s Department of Health (Health Canada) and for stealing the identity of Glenda Yeates, Health Canada’s former Deputy Minister of Health. As part of the sentence, Leventhal was also sentenced to 3 years’ supervised release and ordered to pay $1,350,819.78 in forfeiture and restitution.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Leventhal used his considerable imagination, non-existent technology, and stolen identities to deceive a number of entities and individuals. Fortunately for investors, his alternate reality, propped up by fabricated bank documents, unraveled and collapsed when he attempted to defraud an undercover FBI agent. Today’s sentence sends a strong message to those who use lies and deceit to defraud investors that they will be held accountable for their crimes,” stated United States Attorney Capers. Mr. Capers expressed his appreciation to the FBI for their hard work and dedication over the course of this investigation and prosecution and thanked the Royal Canadian Mounted Police (RCMP) and Health Canada for their significant cooperation and assistance in the investigation.
“Stranger than fiction truly applies in this case with the subject using a popular sci-fi movie as the inspiration to scam millions of dollars from people. He also forged the signature of the Canadian deputy health minister, which not many people would question as legitimate. The FBI and our law enforcement partners do all we can every day to stop these fraudsters, but we can’t do it alone. This investigation serves as a warning to anyone thinking about investing any of their money, do the research and if everything doesn’t add up, we need them to call us,” stated FBI Assistant Director-in-Charge Sweeney.
According to court filings and facts presented at the sentencing hearings, Leventhal told potential investors that Neovision had written agreements with Health Canada, whereby Neovision would provide Health Canada with “Heltheo’s McCoy Home Health Tablet,” a device ostensibly named after the fictional Dr. Leonard McCoy of TV’s Star Trek series.[1] The written agreement provided by Leventhal to potential investors was purportedly signed by Glenda Yeates, Canada’s former Deputy Health Minister, on behalf of the government of Canada. For example, in May 2012, Leventhal used this agreement and entered into a factoring agreement with Paragon Financial Group, Inc. (Paragon”, a Florida company, whereby Paragon advanced Neovision $800,000 in exchange for Paragon’s right to collect a larger sum of money purportedly owed to Neovision by Health Canada. Leventhal also used the purported agreement with Health Canada to solicit more than $26 million from other potential investors, including an undercover law enforcement agent posing as a high net worth individual.
Contrary to Leventhal’s representations, (1) there was no agreement between Health Canada and Neovision, (2) Health Canada did not owe Neovision any money, and (3) Deputy Health Minister Glenda Yeates’ signature on the agreement was a forgery. To conceal his scheme, Leventhal assumed the identities of Health Canada representatives, including that of former Deputy Health Minister Glenda Yeates. Further, Leventhal created and used domain names, telephone numbers, and email addresses that closely resembled those actually used by Health Canada. For example, Leventhal created and used healthcanada.com.co and hc-sg-gc.ca in place of Health Canada’s true domain name hc-sc.gc.ca.
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The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Winston M. Paes is in charge of the prosecution.
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The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit ww.StopFraud.gov.
The Defendant:
HOWARD LEVENTHAL
Age: 60
Grayslake, IllinoisE.D.N.Y. Docket No. 13-CR-695 (BMC)
[1] Leventhal claimed that Heltheo’s McCoy Home Health Tablet can instantaneously and effectively deliver detailed patient data to physicians and other licensed medical care providers.
Canadian Couple Sentenced to Federal Prison in ‘Secret Shopper’ Mass Marketing Scam that Bilked Victims Across United StatesRead the Press Release
LOS ANGELES – A Toronto couple who were extradited earlier this year to the United States have been sentenced for their roles in a mass marketing scheme that targeted hundreds of victims across the United States with counterfeit checks that accompanied bogus claims they had been selected to become “secret shoppers” at MoneyGram counters inside Walmart stores.
Idris Nuradin 35, was sentenced yesterday afternoon to 27 months in federal prison by United States District Judge Philip S. Gutierrez. In addition to the prison term, Judge Gutierrez ordered Nuradin to pay $110,109 in restitution to 33 victims.
Nuradin’s wife, 34-year-old Habone Gayad, 34, yesterday received a “time served” sentence, which is approximately eight months in custody.
The couple and others mailed out hundreds of letters from Toronto to people across the United States that falsely stated they had been selected to act as secret shoppers at Walmart and MoneyGram, according to court documents. The letters included bogus checks that the victims were instructed to deposit to their own bank accounts. The victims were told to immediately wire most of the proceeds of the checks at MoneyGram counters located inside Walmart stores. The balance of the checks would serve as the payment for the secret shoppers.
However, the solicitations and the checks sent out by Nuradin and his wife were bogus. Since the checks were counterfeit – including checks supposedly issued by Warner Brothers and AEG Live – banks held victims responsible for funds that victims withdrew and wired to the scammers in Canada. In his plea agreement, Nuradin, who pleaded guilty to one count of mail fraud, admitted that he targeted more than 500 victims and intended to cause losses of approximately $1.9 million. The actual losses suffered by identified victims totaled $110,109.
“This case demonstrates that criminals cannot hide in foreign countries and take advantage of Americans without repercussions,” said United States Attorney Eileen M. Decker. “This cruel scheme had a devastating financial impact on many victims who never intended to participate in a crime.”
“The defendants in this case were among an endless amount of criminals operating worldwide who target Americans with fraud schemes disguised as money-making opportunities,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI collaborates with domestic and international law enforcement partners to investigate criminals who exploit the vulnerabilities – and empty the bank accounts – of U.S. victims with convincing schemes."
Robert Wemyss, Inspector in Charge, U.S. Postal Inspection Service - Los Angeles Division, stated: “The U.S. Postal Inspection Service will continue to work with our partners in law enforcement to ensure that the U.S. Postal Service isn’t used as a conduit to defrauding the American consumer. The protection of our citizens is at the cornerstone of our mission.”
This case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, Toronto Police Service in Canada and the Federal Trade Commission.
Nuradin and Gayad were indicted in 2010 and were extradited by Canada in April at the request of the United States Department of Justice.
This case was prosecuted by Assistant United States Attorney Monica E. Tait of the Major Frauds Section.
The FBI has compiled a list of some of the most common scams, as well as tips to help prevent you from being victimized, which is available here: https://www.fbi.gov/scams-and-safety/common-fraud-schemes
Buffalo Woman Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Latifah Donaldson, 24, of Buffalo, NY, who was convicted of maintaining a drug involved premises, was sentenced to time served and two years of supervised release to include six months of home detention by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the prosecution, stated that between January 2013 and April 3, 2013, the defendant allowed her co-defendants to utilize her apartment, which was located on the grounds of the Perry Housing Projects, to manufacture, possess and distribute crack cocaine. As part of this conspiracy, a co-defendant maintained several locations on the grounds of the Perry Housing Projects in Buffalo, including Donaldson’s apartment.
On April 3, 2013, law enforcement officers executed search warrants at 124 Fulton Street and 305 Perry Street during which they recovered over 300 grams of cocaine base and 700 grams of powered cocaine as well as a firearm.
Donaldson was arrested in April 2013 along with 10 others. All defendants have been convicted.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Adam S. Cohen, Special Agent-in-Charge, the New York State Police, under the direction of Major Steven Nigrelli, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Buffalo Man Convicted of Multiple Bank RobberiesRead 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 Laverne Palmer, a/k/a Poogaloo, 26, of Buffalo, NY, pleaded guilty before Chief U.S. District Court Judge Frank P. Geraci to committing multiple bank robberies. The charges carry a maximum sentence of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that, on six different dates, the defendant robbed or assisted in the robbery of First Niagara and Key Bank branches located in Lancaster, Depew, and Buffalo. During each of the six bank robberies, Palmer, or someone else, passed a hand-written note to the victim tellers which demanded United States currency and, for example, “no sudden movements” or “eye contact.”
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction on the part of Adam S. Cohen, Special Agent-in-Charge, the Lancaster Police Department, under the direction of Chief Gerald Gill, the Depew Police Department, under the direction of Chief Stan Carwile, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
The defendant is scheduled to be sentenced on March 10, 2017, before Judge Geraci.
Blackfoot Man Pleads Guilty to Possession of Homemade BombsRead the Press Release
POCATELLO – Matthew Gage Burgett, 25, of Blackfoot, Idaho, pleaded guilty yesterday in United States District Court to unlawful possession of destructive devices which Burgett designed for use as a weapon, U.S. Attorney Wendy J. Olson announced. Burgett was indicted by a Pocatello grand jury on October 27, 2015.
On September 24, 2015, law enforcement officers served search warrants at Burgett’s residence and found several explosive devices, including four assembled devices with a main charge container and a fuzing system, as well as three partially-assembled devices and explosive material. Burgett admitted that the explosive devices were designed for use as a weapon. Additionally, at the time of the execution of the search warrant, Burgett had previously been involuntary committed to a mental institution and could not possess firearms. Two firearms were also located at Burgett’s residence.
The charge of unlawful possession of destructive devices is punishable by up to 10 years of imprisonment, up to a $250,000 fine, and up to three years of supervised release.
Burgett is scheduled to be sentenced on February 28, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Bingham County Sheriff’s Office, the Blackfoot Police Department, and the United States Department of Homeland Security Investigations, the Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Beaver County Man Charged with Escaping from Renewal CenterRead the Press Release
PITTSBURGH - A former resident of Beaver, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of escape from federal custody, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Jaemere Scott, age 21, currently detained in the Allegheny County Jail, as the sole defendant.
According to the indictment presented to the Court, the defendant was serving part of his federal sentence for theft of firearms from a Federally Licensed Firearms Dealer at the Renewal Center, which is a half-way house. The defendant left the Renewal Center on Aug. 15, 2016, and failed to return.
The law provides for a maximum total sentence of up to five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Marshal Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Barbour County man charged with illegal possession of a firearmsRead the Press Release
ELKINS, WEST VIRGINIA – A Barbour County man has been indicted for possessing firearms while being subject to a domestic violence protective order, United States Attorney William J. Ihlenfeld, II, announced.
Roy Thomas Schroeder, age 46 of Volga, West Virginia, was charged today by a federal grand jury for possessing two.22 caliber revolvers and a .22 caliber rifle after a protective order had issued against him by the Barbour County Magistrate Court. The crime is alleged to have occurred on October 22, 2016.
Schroeder 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 D. Warner is prosecuting the case on behalf of the government. The West Virginia State Police, Barbour County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Bahamas Man Sentenced to 5 Years in Prison for Cyber Hacking Scheme to Steal Celebrities’ Personal and Copyrighted InformationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALONZO KNOWLES, a/k/a “Jeff Moxey,” was sentenced today to five years in prison for criminal copyright infringement of scripts of movies and television shows that had not yet aired, as well as theft of personally identifiable information, all of which KNOWLES obtained by hacking into the email accounts of numerous individuals in the entertainment, sports, and media industries. KNOWLES pled guilty on May 9, 2016, before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Alonzo Knowles hacked into the private emails of entertainment and sports celebrities, stole personal information and property, including unreleased movie and television scripts, and attempted to sell them to the highest bidder. For his frightful violation of privacy, Knowles has been sentenced to substantial term of imprisonment.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including the guilty plea:
KNOWLES unlawfully accessed the personal email accounts of numerous individuals in the entertainment, sports, and media industries (the “Victims”). As a result of this hacking scheme, KNOWLES obtained Victims’ copyrighted and confidential documents, including scripts of movies and television shows that had not yet been publicly released, personal identifying information such as Social Security numbers, and private sexually explicit photographs and videos.
Over the course of two weeks in December 2015, KNOWLES and an undercover law enforcement agent (the “UC”) communicated about the stolen materials KNOWLES sought to sell to the UC. KNOWLES claimed to the UC that he had “exclusive content” that was “really profitable” and worth “hundreds of thousands of dollars.” KNOWLES stated that he obtained the material directly from the Victims without their knowledge, and claimed to be able to acquire such material from at least some of the approximately 130 Victims whose email addresses and phone numbers he had in his possession.
On December 21, 2015, KNOWLES met with the UC in New York, New York. During their meeting, KNOWLES described two methods he used to hack each Victim’s email account. The easier method involved sending a virus to the Victim’s computer that would enable KNOWLES to access it. The more difficult method involved KNOWLES sending a false hacking notification to the Victim and asking the Victim for his passcodes. Once KNOWLES had used the Victim’s passcodes to successfully access the Victim’s email account, KNOWLES, unbeknownst to the Victim, would change the settings in the Victim’s email account in order to continue to access to the email account. In order to avoid detection from the Victim, KNOWLES would delete notifications from the email service provider regarding changes to the settings of the Victim’s email account. On December 21, 2015, KNOWLES attempted to sell numerous movie and television scripts and personally identifiable information that he had unlawfully obtained from the Victims to the UC in exchange for thousands of dollars, whereupon KNOWLES was arrested.
KNOWLES possessed a laptop computer in the Bahamas (the “Computer”), which he did not bring to New York in December 2015. According to KNOWLES, the Computer contained confidential information, which he obtained via hacking, relating to various celebrities. KNOWLES intended to sell this confidential information after serving a prison term for the instant offense. After his arrest in December 2015 and before his sentencing, KNOWLES stated in his prison correspondence that he was willing to serve additional time in prison in order to retain the Computer. Pursuant to a Consent Preliminary Order of Forfeiture issued by Judge Engelmayer, KNOWLES produced a laptop computer to a court-appointed receiver, which the receiver concluded was the Computer containing stolen materials at issue in this case. Pursuant to Judge Engelmayer’s order, KNOWLES’s laptop has been subsequently destroyed.
* * *
In addition to the prison term, KNOWLES, 24, of Freeport, Bahamas, was ordered to pay a $200 special assessment. A money judgment in the amount of $1,982.71 was also entered, and the defendant’s right, title, and interest in specific property seized by the Department of Homeland Security – including copyrighted materials, personally identifiable information of others, sexually explicit content of others, an iPad, and a phone – were ordered to be forfeited to the United States.
Mr. Bharara praised the investigative work of the Department of Homeland Security.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Kristy J. Greenberg is in charge of the prosecution.
Authorities Make Multiple Arrests on Grenade ChargesRead the Press Release
McALLEN, Texas – A total of six individuals are in custody following the filing of a criminal complaint alleging the illegal receipt or possession of destructive devices that were not registered in the National Firearms Registration and Transfer Record, annouced U.S. Attorney Kenneth Magidson.
Those arrested include Celin Javier Montoya, 23, Anthony Ozuna, 20, Alfredo Rivera, 24, and Pedro Vega, 40, all of Edinburg; Noe Gonzalez, 19, of San Juan; and Jonathan Sanchez-Torres, 19, a Mexican undocumented alien who was residing in Pharr.
Vega made his initial appearance today, at which time he was ordered into custody pending detention hearing set for Dec. 9. Montoya, who was arrested in Ingleside, will appear before U.S. Magistrate B. Janice Ellington in Corpus Christi, while the remaining defendants are expected in court tomorrow morning before U.S. Magistrate Judge Peter E. Ormsby.
The criminal complaint, filed Dec. 5, 2016, and unsealed today upon the arrests, alleges Ozuna and Rivera were attempting to broker the sale of improvised hand grenades or improvised explosive devices (IEDs). The two men were allegedly acting on behalf of Montoya and Vega. According to the charges, from Nov. 5-11, 2016, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) conducted undercover operations and bought all of the hand grenades Montoya and Vega had available.
During the course of the investigation, ATF and HSI agents discovered Montoya and Vega allegedly obtained the grenades from Gonzalez and Sanchez-Torres. The complaint also alleges that for approximately six months, Gonzalez purchased all of the components necessary to construct dozens of improvised hand grenades, including grenade hulls, spring kits, fuses and black powder, from a combination of online merchants and local stores. The assembled “live” hand grenades were then turned over to Sanchez-Torres to be distributed, according to the allegations.
Each of the defendants is charged with the illegal receipt or possession of a destructive device that is not registered in the National Firearms Registration and Transfer Record. If convicted, they each face up to 10 years in federal prison and a possible $250,000 maximum fine.
ATF and HSI investigated with the assistance of Texas Department of Public Safety, police departments in McAllen and Mission, Customs and Border Protection and Drug Enforcement Administration. Assistant U.S. Attorneys David Paxton and Linda Requenez are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Ansonia Man Sentenced to 5 Years in Prison for Illegally Possessing Firearm, Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MARCOS BOYD, 26, of Ansonia, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by three years of supervised release, for being an armed drug dealer.
According to court documents and statements made in court, in January 2015, BOYD absconded from state parole supervision. On November 10, 2015, when members of the U.S. Marshals Service Violent Fugitive Task Force, Ansonia Police and Connecticut Department of Correction parole officers encountered BOYD at a residence on High Street in Ansonia, BOYD climbed out of his second floor bedroom holding a firearm. He then returned inside the house and barricaded himself in a bathroom. A six-year-old child was in the house at the time.
After BOYD surrendered, officers seized a loaded .45 caliber semi-automatic pistol. A search of BOYD’s bedroom also revealed 18.6 grams of heroin, drug packaging materials and $6,763 in cash.
On September 12, 2016, BOYD pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.
BOYD, who has been detained since his arrest, will begin serving his federal sentence after he completes his state sentence in June 2017.
BOYD’s criminal history includes four drug-related felony convictions
This case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Anchorage Insurance Sales Woman Pleads Guilty to Bank Fraud and Aggravated Identity TheftRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman pleaded guilty to federal charges for using personal information from former insurance clients to obtain money from banks under false pretenses.
Kara Hayden, Jr., 51, of Anchorage, pleaded guilty before U.S. District Court Judge Sharon L. Gleason to one count of bank fraud and one count of aggravated identity theft. Hayden is scheduled to be sentenced on March 3, 2017.
According to the plea agreement, from at least October 2014, to December 2015, Hayden applied for seventeen credit cards using the names, social security numbers, and dates of birth of nine different victims without their knowledge or authorization. Hayden successfully obtained two credit cards before the investigation of this case interrupted her scheme. The two credit cards were obtained using the personal identifying information of three of her former insurance clients. Hayden obtained approximately $14,500 in cash and retail goods prior to the discovery of her scheme.
Haden faces a statutory maximum sentence of 30 years in prison and a $1 million fine or both.
Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
U.S. Attorney Loeffler commends the U.S. Postal Inspection Service, and the assistance from the Alaska State Troopers, for the investigation of this case.
Alabama Resident Pleads Guilty to Bank RobberyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on December 6, 2016, George David Treece, 38, Alabama, pled guilty to an indictment charging him with Bank Robbery. Treece faces a term of imprisonment of not more than twenty (20) years, a fine up to $250,000, or both, and a term of supervised release of not more than five (5) years. Treece will also have to pay restitution to the bank for its loss. Treece’s sentencing has been scheduled for March 21, 2017, in Benton, Illinois. Treece has been held without bond since his arrest on a Criminal Complaint on August 29, 2016.
The charge arose when, on August 26, 2016, Treece entered the Farmers State Bank in Central City, Illinois, and demanded money from a bank teller. After the teller removed the money from her drawer and placed it on the counter, Treece took the money and left. Later that day, after being Mirandized, Treece admitted robbing the bank.
The case was investigated by the Central City Police Department, Centralia Police Department, Wamac Police Department, and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Angela Scott.
Monday 5 December 2016
Wheeling Island man sentenced for heroin distributionRead the Press Release
WHEELING, WEST VIRGINIA – Justin Thomas Mann, 28, of Wheeling Island, was sentenced to 23 months in prison for distributing heroin, United States Attorney William J. Ihlenfeld, II, announced.
Mann sold heroin in Ohio County, West Virginia in February 2016. He pled guilty in September 2016 to one count of “Distribution of Heroin.”
Assistant U.S. Attorney Randolph J. Bernard and Special Assistant U.S. Attorney Anthony Martin, also of the West Virginia Attorney General’s Office, prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Washington County Man Sentenced to 5 Years for Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Tristan Shaw, age 31, of Granville, New York, was sentenced today to 5 years in prison for receiving child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his August 9 guilty plea, Shaw admitted that between November 26, 2009 and November 26, 2013, he used the Internet and a peer-to-peer file-sharing program to receive approximately 200 still image files containing child pornography.
Senior United States District Judge Gary L. Sharpe also imposed a 25-year term of supervised release, which will start after Shaw is released from prison. As a result of his conviction, Shaw will be required to register as a sex offender after leaving prison.
This case was investigated by HSI and was prosecuted by Assistant U.S. Attorney Rick Belliss.
United States Settles Civil Forfeiture ActionRead the Press Release
U.S. Attorney Christopher "Kip" Crofts announced today that Scott Lewis of Englewood, Colorado, has agreed to forfeit $234,717 to the United States to settle a civil forfeiture action where the United States alleged that the money was drug money earned from the illegal sale of drugs or intended to illegally purchase drugs. As part of the settlement, Lewis did not dispute that the United States had reasonable cause to seize the money. The United States agreed to return $25,000 to Lewis. On November 28, 2016, United States District Court Judge Alan Johnson issued a judgement of forfeiture based on the settlement agreement.
The money and a Cessna airplane were seized from Lewis and Gilbert Wiles, Jr., in Cody, Wyoming, on February 28, 2014, following an investigation of suspected drug trafficking by the Cody Police Department with assistance from the Powell Police Department and the Wyoming Division of Criminal Investigation. The seizures were made under authority of search warrants issued by a Wyoming state court judge.
Following additional investigation by the U.S. Department of Homeland Security and the Drug Enforcement Administration, the United States filed a civil forfeiture complaint on August 1, 2014. The complaint alleged that Wiles and Lewis had purchased the airplane in May 2013 for $130,000 in cash. On February 27, 2014, Lewis and Wiles landed the plane at Yellowstone Regional Airport. After landing, Lewis and Wiles covered the plane’s windows to conceal its interior, paid for fuel and other services with cash, and used a phony name at the airport and to check-in at a local Holiday Inn. As part of the police investigation, a drug detection canine alerted to the odor of controlled substances emanating from the plane. During the later search of the hotel room, police found a blue duffel bag containing $258,520 packaged in 12 vacuum-sealed bags. Officers also found $1,467 in cash in a jacket lying on a dresser. In addition to the money, officers found a number of fake driver’s licenses bearing Lewis’s picture. A review of Lewis’s criminal history showed that he had been convicted of a misdemeanor drug violation in November 2010 in California after Lewis was arrested outside a residence containing 185 pounds of marijuana and over $250,000 in cash. Lewis, who was represented by an attorney from California, responded to the civil forfeiture complaint by filing claims to the plane and money.
The federal investigation also revealed that the airplane had not been registered with the Federal Aviation Administration as required by law following its purchase by Wiles and Lewis in 2013. In a separate criminal prosecution, on January 14, 2016, the grand jury for the District of Wyoming indicted Lewis and Wiles for conspiracy and operating an unregistered aircraft in violation of federal law. Lewis and Wiles pled guilty to the felony crime of operating an unregistered aircraft and were sentenced to probation in June, 2016. As part of these sentences, the district court forfeited the Cessna airplane to the United States. The airplane was then dismissed from the civil forfeiture action.
The settlement agreement which resulted in the forfeiture of $234,717 in drug money ended the civil forfeiture.
U.S. Attorney Tom Beall to Host Diversity Dialogue with Law EnforcementRead the Press Release
WICHITA, KAN. – U.S. Attorney Tom Beall will open a discussion Tuesday in Wichita with local law enforcement agencies on recruiting, hiring and retaining law enforcement officers to better reflect the broad diversity of the communities they serve.
The Diversity Dialogue in Wichita will be part of a national initiative by the Justice Department’s Civil Rights Division and the U.S. Equal Employment Commission (EEOC). The objectives are outlined in an October report called, “Advancing Diversity in Law Enforcement. “The report, which can be accessed here, examines barriers as well as promising practices for advancing diversity in law enforcement.
“We must continue to review our efforts to promote diversity and share what we have learned so far,” Beall said. “Identifying the barriers we face and generating new ideas for cultivating diversity among law enforcement will help strengthen trust and improve policing.”
Michael Birzer, Professor of Criminal Justice and Director of the School of Community Affairs at Wichita State University, will serve as moderator. Topics will include: Barriers to diversity, recruitment, hiring and retention.
Members of the media are invited to talk to key participants starting a half hour before the session and to cover opening remarks. The rest of the meeting will be open only to registered participants.
Event: Diversity Dialogue
Opening Remarks: 1 p.m. Tuesday, Dec. 6, 2016.
Where: Room 180, Eugene Hughes Metropolitan Complex. 5015 E. 29th North, Wichita, Kan.
Two Stanford Residents Admit to Conspiring to Distribute Large Quantities of FentanylRead the Press Release
LEXINGTON, Ky. — Travis B. Preston, 28, and Tiffany L. Griffith, 25, both of Stanford, Ky., pleaded guilty today to conspiring to distribute large quantities of fentanyl.
Preston admitted to conspiring to distribute 40 grams or more of a mixture or substance containing a detectable amount of fentanyl. Griffith admitted to aiding and abetting the distribution of 40 grams or more of fentanyl.
In the course of their guilty pleas, Preston and Griffith admitted possessing approximately 121 grams of fentanyl. The fentanyl was discovered in Griffith’s purse, during a traffic stop that occurred on April 5, 2016, in Lancaster. Fentanyl can be lethal in the two milligram range.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky; Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration; Richard W. Sanders, Commissioner, Kentucky State Police; and Tim Davis, Garrard County Sheriff, jointly made the announcement.
The investigation was conducted by the Drug Enforcement Administration, the Kentucky State Police, and the Garrard County Sheriff’s Office. The United States was represented in the case by Assistant United States Attorney Robert M. Duncan, Jr.
Preston and Griffith are currently scheduled to appear for sentencing before United States Senior District Judge Joseph M. Hood on March 6,2016. Because of a prior felony drug conviction, Preston faces a minimum sentence of imprisonment of 10 years, and maximum sentence of Life imprisonment. Griffith faces a mandatory minimum sentence of not less than 5 years and not more than 40 years imprisonment. However, any sentence imposed by the court would come after consideration of the United States Sentencing Guidelines and the applicable federal statutes.
Two Huntington dealers headed to federal prison for drug crimesRead the Press Release
HUNTINGTON, W.Va. – Two Huntington dealers were sentenced today to federal prison for drug crimes, announced United States Attorney Carol Casto. Jerrell Leon Johnson, 53, was sentenced to five years in federal prison for possession with intent to distribute 28 grams or more of crack. In a separate prosecution, Ashley Nicole Farley, 25, was sentenced to three and a half years in federal prison for possession with intent to distribute heroin.
On January 20, 2016, members of the Drug Enforcement Administration conducted a search of Johnson’s residence located at 709 Rear 9th Avenue in Huntington. During that search, agents located approximately 48 grams of crack inside a kitchen drawer. Johnson admitted that he intended to sell the crack seized by law enforcement.
In a separate drug prosecution, on August 27, 2015, Farley was arrested on a warrant for distribution of heroin. In a search of Farley incident to her arrest, officers located a gray tan powder and cash. The cash contained marked currency from a previous undercover heroin buy from Farley.
The Drug Enforcement Administration conducted the investigation of Jerrell Johnson. The investigation of Farley was conducted by the Huntington FBI Drug Task Force. Assistant United States Attorney Gregory McVey is handling the prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentences.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including heroin and crack. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Two Columbus, Ohio men sentenced for transporting stolen items across state linesRead the Press Release
WHEELING, WEST VIRGINIA – Two men from Columbus, Ohio were sentenced today for transporting stolen goods across state lines, United States Attorney William J. Ihlenfeld, II, announced.
Maurice L. Whyte, II, 23, and Kionte Whatley, 19, were each sentenced to 34 months in prison. Whyte and Whatley conspired to steal smart phones, tablets, head phones, game stations, and computers from Walmart, Target, and Meijer stores in eight different states, including West Virginia and Ohio. The value of the stolen goods are estimated to be in excess of $500,000. They each pled guilty to one count of “Conspiracy to Transport Stolen Goods in Interstate Commerce” in October 2016.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Columbus Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Tribal Firefighter Pleads Guilty to Setting Fires on Indian LandsRead the Press Release
ASHEVILLE, N.C. – Raymond Neal Swayney, 31, of Cherokee, N.C., appeared in federal court in Asheville today and pleaded guilty to intentionally setting fires on Indian lands, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. Magistrate Judge Dennis Howell presided over today’s plea hearing.
According to information contained in filed court documents, the Bureau of Indian Affairs (BIA) has the authority to hire temporary Administratively Determined (AD) Firefighters for emergencies in progress within the boundaries of the Eastern Band of Cherokee Indians (EBCI), including to cope with unexpected emergencies caused by fire or extreme fire potential. The hiring of an AD Firefighter is of uncertain, temporary duration.
Once a fire is assigned a fire code, AD firefighters are paid based upon the number of hours they worked in support of that fire code, which includes not only payment for actual firefighting but also post-fire maintenance of equipment, cleaning trucks, etc.
According to court documents, because AD firefighters are only compensated when they are called in for an active fire code, Swayney and others willfully set several wildland fires on the EBCI reservation, and received compensation for fighting the fires. According to court documents, between March 5, 2010 and February 25, 2014, Swayney and others intentionally set seven fires, which destroyed more than 420 acres of tribal lands and cost over $106,661.98 in BIA funds to extinguish.
Swayney pleaded guilty to one count of conspiracy to set timber afire and to defraud the United States. The charge carries a maximum prison term of five years and a $250,000 fine. Swayney is being held pending sentencing. A sentencing date has not been set yet.
In making today’s announcement, U.S. Attorney Rose thanked the United States Department of the Interior, Office of the Inspector General, for leading the investigation and the Cherokee Indian Police Department, the Swain County Sheriff’s Office, and the Bureau of Indian Affairs for their assistance with the case.
Assistant United States Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, is prosecuting the case.
Three Convicted in Alien Smuggling Case that Resulted in a DeathRead the Press Release
McALLEN, Texas – Three individuals have entered guilty pleas for their roles in a conspiracy to transport illegal aliens within the United States, announced U.S. Attorney Kenneth Magidson.
Antonio Arredondo Jr.,41, of Alamo; and Carlos Valentin Avendano-Lucio, 35, and Nancy Yadira Moreno-Ruiz, 34, both of Mexico, knew that individuals had illegally come to the U.S. and conspired to transport them further within the country. During and in relation to the crime, a female undocumented alien was killed.
The investigation revealed the female victim had been smuggled with a group of undocumented aliens discovered near the Pharr port of entry on Aug. 4, 2014. A foot guide had provided instructions to the group as to how to walk along the bridge and then scale down the bridge. In the process of crossing the bridge, the woman fell off the bridge and sustained severe injuries before being left behind by the group. On Aug. 5, 2014, authorities located a deceased female on the levee near the same port of entry and identified her as the woman who fell off the bridge.
The foot guide, Victor Moreno-Ruiz, 33, of Mexico, previously pleaded guilty and was sentenced on Nov. 23, 2015, to 150 months in prison.
During his guilty plea, Arredondo admitted that on Aug. 4, 2014, he was involved in the conspiracy. His role was to coordinate the smuggling arrangements for at least two of those undocumented aliens, including the deceased woman. Avendano-Lucio admitted he participated in the conspiracy by driving a van loaded with the group of undocumented aliens from Reynosa, Mexico, into Pharr. Nancy Yadira Moreno-Ruiz admitted to participating in the conspiracy by recruiting her husband, Avendano-Lucio, to drive the group of undocumented aliens from Mexico and into the United States.
U.S. District Judge Ricardo Hinojosa accepted the pleas and set sentencing for Feb. 23, 2017. At that time, each faces up to life in prison and a possible $250,000 fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance by Border Patrol, Pharr Police Department and Hidalgo County Sheriff’s Office. Assistant U.S. Attorney Alex Benavides is prosecuting the case.
Tehachapi Resident Pleads Guilty to Bank RobberyRead the Press Release
FRESNO, Calif. — Michael Brian Taylor, 60, of Tehachapi, pleaded guilty today to bank robbery, United States Attorney Phillip A. Talbert announced.
According to his plea agreement and other court documents, on May 24, 2016, at approximately 11:45 a.m., Taylor entered and robbed the Bank of the Sierra in Tehachapi, of approximately $34,000. Taylor entered the bank wearing a ski mask pulled down over his face and yelled loudly, “Hands in the air!” He approached the bank teller, demanded $200,000, and placed a black bag on the counter. Ultimately, he took approximately $34,000 given to him by the teller.
This case is the product of an investigation by the Tehachapi Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Angela L. Scott is prosecuting the case.
Taylor is scheduled to be sentenced by Judge Lawrence J. O’Neill on March 20, 2017. Taylor faces a maximum statutory penalty of 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Plattsburgh Man Admits Illegally Possessing FirearmRead the Press Release
SYRACUSE, NEW YORK – Marc T. Woodley, age 32, of Plattsburgh, New York, pled guilty today to illegally possessing a firearm.
The announcement was made by United States Attorney Richard S. Hartunian; Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) New York Field Division; and Plattsburgh Police Chief Desmond Racicot.
Woodley admitted that he illegally possessed a Mossberg shotgun on June 22, 2015 after he called police to report a burglary at his apartment in Plattsburgh. Responding Plattsburgh Police officers found nearly a pound of marijuana and the shotgun in Woodley’s bedroom. A further search of Woodley’s apartment revealed multiple smoking devices and a digital scale. As a user of a controlled substance, Woodley was prohibited from possessing the Mossberg shotgun.
As a result of his conviction, Woodley faces up to 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when he is sentenced by Chief U.S. District Judge Glenn T. Suddaby on April 6, 2017. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the Plattsburgh Police Department and the ATF, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Pennsylvania Man Sentenced to 30 Months in Prison for Stealing More Than $480,000 as Part of Interstate Burglary SchemeRead the Press Release
TRENTON, N.J. – A Lancaster, Pennsylvania, man was sentenced today to 30 months in prison for his role in a string of commercial burglaries in New Jersey, New York, and Pennsylvania, U.S. Attorney Paul Fishman announced.
Jose Medina, 40, previously pleaded guilty before U.S. District Judge Mary L. Cooper to a superseding information charging him with one count of conspiracy to transport stolen goods in interstate commerce and one count of transportation of stolen goods in interstate commerce. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Jose Medina admitted that from October 2012 through August 2014, he conspired with his brother, Eliezer Medina, 38, of Ronks, Pennsylvania, and others to steal money by burglarizing stores in New Jersey, New York, Pennsylvania, and elsewhere, and thereafter transporting the stolen money across state lines.
The conspiracy involved at least 22 burglaries and caused over $480,000 in losses. When committing the burglaries, the conspirators would typically scout the target store in advance, disable the alarm system, and use pry-bars, electrical saws, and other tools to gain access to the stores and safes.
In addition to the prison term, Judge Cooper sentenced Jose Medina to two years of supervised release. He must also forfeit $487,364.44.
Eliezer Medina previously pleaded guilty to his role in the scheme and was sentenced on Oct. 28, 2015 to 30 months in prison.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Timothy Gallagher, and special agents of the FBI in Philadelphia, under the direction of Special Agent in Charge Michael Harpster, with the investigation leading to today’s sentencing. He also thanked the Paramus, New Jersey; Wayne, New Jersey; and Pennsauken Township, New Jersey, police departments; the N.J. State Police; and the Lancaster City, Pennsylvania; East Lampert, Pennsylvania; Manor Township, Pennsylvania; Manheim Township, Pennsylvania; and East Hempfield, Pennsylvania, police departments for their work on the case.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Criminal Division in Newark.
Defense counsel: Angelo Servidio, Esq.
Ouray Resident Arrested by Federal and State Law Enforcement on Federal Firearm ChargesRead the Press Release
DENVER – Jerome Andre Kimble, age 32, of Ouray, Colorado, was arrested late last week on charges of being a felon in possession of a firearm and ammunition, Acting U.S. Attorney Bob Troyer and ATF Denver Division Acting Special Agent in Charge Ron Humphries announced. The defendant, who is considered a serious threat to law enforcement, was arrested at a Montrose fast food restaurant during the middle of the day.
Kimble was charged by Criminal Complaint on December 1, 2016. He was arrested by federal agents and state and local officers on December 2, 2016. He appeared in U.S. District Court in Grand Junction today, where he was advised of his rights and the charges pending against him. He is scheduled to appear for a detention hearing, also in Grand Junction, on December 8, 2016 at 2:00 p.m.
According to the Affidavit in support of the Criminal Complaint, on July 29, 2016, an Ouray Police Officer received information that Jerome Kimble had taken a firearm to his place of employment. Kimble was showing the firearm to other employees while at work. He also offered it for sale. The officer also learned that Kimble carries the firearm to his second job. During that same time period, Kimble was terminated from his first job. He then made threatening comments toward the businesses’ customers, as well as toward an employee.
On August 1, 2016, the Ouray officer learned Kimble sold the firearm to a male juvenile. On October 31, 2016, the juvenile and his father brought the weapon to the Ouray Police Department and provided written and verbal statements regarding from whom the minor obtained the firearm. Kimble told the minor that he needed money. The firearm was ultimately sold for $180 in cash. The officer also learned that Kimble walked around town wearing an open carry holster with a large black handle pistol.
During the course of the investigation it was determined that Kimble was convicted of two counts of Felony Second Degree Burglary in Santa Clara County, California Superior Court, thus making him a felon in possession of a firearm. Kimble had a previous confrontation with Ouray Police Officers when he was arrested for a motor vehicle charge on October 18, 2016. He then made multiple threats against the investigating officer and other Ouray officers, to include statements that Kimble knew where their spouses work. He then said he would come back as an enemy of the State and would get even with every one of them for putting him in jail again. Kimble was released on a $750 bond.
Due to the multiple serious threats to law enforcement, and the fact the defendant had access to firearms, law enforcement treated his arrest as high risk, utilizing agents and officers from multiple jurisdictions throughout the area. The arrest was executed without incident.
If convicted, Kimble faces not more than 10 years in federal prison, and up to a $250,000 fine.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assisting ATF with the arrest of Kimble included the FBI, U.S. Marshals Service, Colorado Bureau of Investigation, the Ouray Police Department and the Montrose Police Department.
The defendant is being prosecuted by Assistant U.S. Attorney and Grand Junction Branch Office Chief Peter Hautzinger.
The charges contained in the Criminal Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. A Criminal Complaint is a probable cause charging document. Anyone accused of committing a felony violation of federal law has a Constitutional right to be indicted by a federal grand jury.
Newport News Gangster Convicted of Racketeering and Murder ChargesRead the Press Release
NEWPORT NEWS, Va. – Michael Hopson, 39, of Newport News, was convicted today by a federal jury on charges of racketeering conspiracy, including acts of murder, attempted murder, robbery, obstruction of justice, murder in aid of racketeering, conspiracy and attempted murder in aid of racketeering, and other charges.
According to court records and evidence presented at trial, Hopson, (aka “Hop” aka “Big Homie”) was the founding member and leader of the P-Stones, also referred to as the P-Stone Bloods and Cobra Stones, that operate primarily in the Denbigh area of Newport News. The P-Stones engage in violent crimes including murders, illegal drug trafficking, obstruction of justice and robberies that often target narcotics dealers and use stolen currency and inventory to purchase firearms and fund gang members’ court dues.
According to evidence presented at trial, as the leader, Hopson planned, directed and participated in recruitment of members, including minors; collected monthly gang dues; carried out and ordered violations; ordered and presided over meetings; and organized other firearm and marijuana distribution. Hopson also served as a security officer at Denbigh High School, in which he used his security officer position to further the Black P-Stones gang by recruiting minors and selling narcotics to high school students.
According to evidence presented at trial, Hopson personally ordered multiple shootings and murders between October 2007 and June 2009, including:
- On Oct. 31, 2007, Hopson ordered P-Stone members to murder A.J., a member of the rival Thugs Relations street gang. At Hopson’s direction, the P-Stones members attempted to lure A.J. from the home while armed. A.J. did not come out of the house and the P-Stone members left.
- On Nov. 6, 2007, a P-Stone, acting on Hopson’s orders lured E.S., a 17-year-old P-Stone member, to a location in Newport News to kill him. Hopson had previously given him the “green light” for the killing of E.S. for his relations with Thug Relations. Once E.S. arrived he was shot and killed, and Hopson rewarded the P-Stone member with a promotion.
- On Dec. 10, 2008 Hopson authorized the murder of J.W., a Crip who was disrespectful to members of the P-Stones. Acting on those orders, two P-Stone members went to the home of J.W. and fired multiple rounds into the home. J.W.’s father, who was sitting in the living room when the assault occurred, was hit with debris from the bullet shrapnel and suffered injury to his eye.
- On March 9, 2009, Hopson ordered the murder of two members of 10-1 Mafia Crips, rivals of the P-Stones, for the beating of a P-Stone member. Acting on Hopson’s orders, two P-Stone members shot multiple times into the home of the two 10-1 Mafia Crips.
- On April 17, 2009, Hopson ordered two P-Stones to fire multiple rounds into a home he knew to be occupied because the individuals inside the home were disrespectful to him.
- On June 12, 2009, Hopson ordered the murder of A.J., a Thug Relations member who was responsible for the murder of a P-Stone member. A P-Stone member acting on Hopson’s orders shot and wounded A.J.
Hopson faces a mandatory penalty of life in prison when sentenced on March 3, 2017. The maximum statutory sentence of life is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the statutory penalty, the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Special Agent in Charge Martin W. Culbreth of the Federal Bureau of Investigation’s Norfolk, Virgina, Field Office made the announcement after the verdict was accepted by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney Eric M. Hurt and Trial Attorney Marianne Shelvey of the Organized Crime and Gang Section in the Justice Department’s Criminal Division prosecuted the case. FBI’s Safe Streets Peninsula Task Force investigated the case, with the assistance of the Newport News Police Department and the James City County Police Department.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:13-cr-96.
- On Oct. 31, 2007, Hopson ordered P-Stone members to murder A.J., a member of the rival Thugs Relations street gang. At Hopson’s direction, the P-Stones members attempted to lure A.J. from the home while armed. A.J. did not come out of the house and the P-Stone members left.
Newark Man Sentenced to 24 Months Imprisonment in Fraud and Money Laundering CaseRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Akeem Harris, age 26, of Newark, was sentenced on November 30, 2016, by U. S. District Court Judge Sue L. Robinson to 24 months of imprisonment and three years of supervised release. Mr. Harris was also ordered to pay restitution in the amount of $422,946.04.
The sentencing came after Mr. Harris pleaded guilty on June 2, 2016 to one count of bank fraud, in violation of 18 U.S.C. §1344 and one count of money laundering, in violation of 18 U.S.C. §1957.
Between January and June 2016, Mr. Harris engaged in multiple fraud schemes in and around the Wilmington, Delaware area. Defendant opened multiple bank accounts in the name of fictitious businesses, and received or deposited stolen funds into those accounts. Mr. Harris then liquidated the proceeds of those schemes in a series of transactions including large cash withdrawals before the fraud was detected.
U.S. Attorney Oberly stated, “I am pleased with Mr. Harris’s sentence. Though not at the helm of the schemes, Mr. Harris played a vital role and made the schemes profitable for himself and others involved. I hope that others, when approached about playing a similar role, will understand that they will be held accountable for such conduct.”
"IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals use deceit and fraud to line their pockets," stated Akeia Conner, Special Agent in Charge, Philadelphia Field Office, IRS Criminal Investigation. "This sentence should serve as a deterrent to those who might contemplate similar fraudulent actions."
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Lesley Wolf. U.S. Attorney Oberly thanked the investigators for their hard work in pursuing this investigation.
New Haven Man Sentenced to 6 Years in Prison for Role in Heroin Distribution RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANCISCO RODRIGUEZ, 50, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport, to 72 months of imprisonment, followed by four years of supervised release, for his role in a heroin distribution ring.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into the distribution of heroin in New Haven. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of heroin, revealed that Wilson Vasquez, also known as “Will” and “Pancho,” obtained bulk quantities of heroin, processed and packaged the drug with several co-conspirators, and then distributed the drug through a network of street-level distributors operating in the area of Ferry Street, Grand Avenue and Blatchley Avenue in New Haven’s Fair Haven neighborhood. RODRIGUEZ served as a lieutenant to Vasquez in the organization.
During the investigation, law enforcement seized approximately 500 grams of raw heroin, three handguns and five vehicles. In addition, bank accounts containing more than $300,000 have been frozen.
Seventeen individuals were charged as a result of this investigation. All 17 pleaded guilty.
RODRIGUEZ has been detained since his arrest on July 15, 2015. On September 12, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
Vasquez awaits sentencing.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Patrick Caruso.
Montreal Resident Charged with Alien SmugglingRead the Press Release
The United States Attorney for the District of Vermont and the Swanton Sector, United States Border Patrol announce that Daniel Larmand, 52, a Montreal resident, appeared today in United States District Court in Burlington on a charge of alien smuggling. U.S. Magistrate Judge John M. Conroy released Larmand on conditions pending the next court hearing.
According to the criminal complaint that was filed in court today, Border Patrol agents, with assistance from the Royal Canadian Mounted Police, witnessed a green, older model sport utility-type vehicle approach the United States border late in the afternoon on December 2. The vehicle stopped just north of the border and discharged a passenger, who then illegally walked across the border into the United States. Agents from the Champlain and Swanton Border Patrol Stations were dispatched to the area, in Alburgh, and within minutes located the illegal entrant, who turned out to be a Greek national.
Shortly after the alien was apprehended, the defendant Daniel Larmand appeared at the Alburgh Port-of-Entry seeking admission to the United States. Larmand was driving an older model green Chevy Blazer. He said that he was going to Rouses Point to look at a boat. After inspection, Larmand was permitted to enter the U.S.
Instead of going to Rouses Point, however, Larmand drove to the location where Border Patrol agents were still detaining the illegal alien. Agents questioned Larmand about his reasons for being in the area. During this encounter, the alien saw Larmand and identified him as the person who helped smuggle him into the United States. The Greek national reported that other persons had previously paid Larmand $1000 to smuggle him into this country.
The United States Attorney emphasizes that the charge in the complaint is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Larmand faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Larmand is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.Mississippi Developers Agree to Settle Housing Discrimination LawsuitRead the Press Release
WASHINGTON – The Justice Department announced today that the developers of six multi-family housing complexes in southern Mississippi have agreed to pay $350,000 to settle claims that they violated the Fair Housing Act and the Americans with Disabilities Act by building apartment complexes that were inaccessible to persons with disabilities. As part of the settlement, the defendants also agreed to make substantial retrofits to remove accessibility barriers at the six complexes, which have nearly 500 covered units.
Under the settlement, which was approved late Friday by the U.S. District Court for the Southern District of Mississippi, Mississippi-based developers Ike W. Thrash, Dawn Properties Inc., Southern Cross Construction Company Inc. and other affiliated companies will pay all costs related to the retrofits, $250,000 to compensate 25 individuals harmed by the inaccessible housing and $100,000 in civil penalties. The defendants will undergo training, ensure that any future construction complies with federal accessibility laws and make periodic reports to the department.
“Housing impacts critical areas of one’s daily life,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “This comprehensive settlement demonstrates the Justice Department’s commitment to protecting the rights of persons with disabilities to reside in and visit the housing of their choice.”
“Barriers created by inaccessible housing and public accommodations deny the fundamental protection afforded by the Fair Housing Act,” said U. S. Attorney Gregory K. Davis of the Southern District of Mississippi. “The retrofits required by this agreement will provide accessible housing to people with disabilities in several key commercial areas of the Southern District of Mississippi.”
“When housing fails to meet the Fair Housing Act’s design and construction requirements it further limits the type of housing persons with disabilities need the most,” said Gustavo Velasquez, Assistant Secretary for Fair Housing and Equal Opportunity at the Department of Housing and Urban Development. “Hopefully today’s action will help developers to better understand the importance of meeting their obligation to comply with the law.”
The department filed the lawsuit in May 2014, after conducting an independent investigation of a referral of complaints from the Department of Housing and Urban Development. Trial was scheduled to begin on Jan. 3, 2017. Under the settlement, the defendants will make retrofits, including eliminating steps; making bathrooms more usable; providing accessible curb ramps and parking; and providing accessible walks to site amenities such as the clubhouses, pools and mailboxes, at the following Mississippi complexes:
- The Beach Club Apartments (Long Beach)
- The Belmont Apartments (Ocean Springs)
- The Grand Biscayne Apartments (Biloxi)
- The Belmont Apartments (Hattiesburg)
- The Lexington Apartments (Ridgeland)
- Inn by the Sea Condominiums (Pass Christian)
The Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, the Fair Housing Act requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units and units accessible to wheelchair users and others with disabilities. The Americans with Disabilities Act requires, among other things, that places of public accommodation, such as rental offices at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities.
Mississippi Developers Agree to Settle Housing Discrimination LawsuitRead the Press Release
The Justice Department announced today that the developers of six multi-family housing complexes in southern Mississippi have agreed to pay $350,000 to settle claims that they violated the Fair Housing Act and the Americans with Disabilities Act by building apartment complexes that were inaccessible to persons with disabilities. As part of the settlement, the defendants also agreed to make substantial retrofits to remove accessibility barriers at the six complexes, which have nearly 500 covered units.
Under the settlement, which was approved late Friday by the U.S. District Court for the Southern District of Mississippi, Mississippi-based developers Ike W. Thrash, Dawn Properties Inc., Southern Cross Construction Company Inc. and other affiliated companies will pay all costs related to the retrofits, $250,000 to compensate 25 individuals harmed by the inaccessible housing and $100,000 in civil penalties. The defendants will undergo training, ensure that any future construction complies with federal accessibility laws and make periodic reports to the department.
“Housing impacts critical areas of one’s daily life,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “This comprehensive settlement demonstrates the Justice Department’s commitment to protecting the rights of persons with disabilities to reside in and visit the housing of their choice.”
“Barriers created by inaccessible housing and public accommodations deny the fundamental protection afforded by the Fair Housing Act,” said U. S. Attorney Gregory K. Davis of the Southern District of Mississippi. “The retrofits required by this agreement will provide accessible housing to people with disabilities in several key commercial areas of the Southern District of Mississippi.”
“When housing fails to meet the Fair Housing Act’s design and construction requirements it further limits the type of housing persons with disabilities need the most,” said Gustavo Velasquez, Assistant Secretary for Fair Housing and Equal Opportunity at the Department of Housing and Urban Development. “Hopefully today’s action will help developers to better understand the importance of meeting their obligation to comply with the law.”
The department filed the lawsuit in May 2014, after conducting an independent investigation of a referral of complaints from the Department of Housing and Urban Development. Trial was scheduled to begin on Jan. 3, 2017. Under the settlement, the defendants will make retrofits, including eliminating steps; making bathrooms more usable; providing accessible curb ramps and parking; and providing accessible walks to site amenities such as the clubhouses, pools and mailboxes, at the following Mississippi complexes:• The Beach Club Apartments (Long Beach)
• The Belmont Apartments (Ocean Springs)
• The Grand Biscayne Apartments (Biloxi)
• The Belmont Apartments (Hattiesburg)
• The Lexington Apartments (Ridgeland)
• Inn by the Sea Condominiums (Pass Christian)The Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, the Fair Housing Act requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units and units accessible to wheelchair users and others with disabilities. The Americans with Disabilities Act requires, among other things, that places of public accommodation, such as rental offices at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
Dawn Consent OrderMen Found Guilty of Home Invasion Robbery and ShootingRead the Press Release
RALEIGH – The United States Attorney’s Office announced that today, JAMES THORPE, 25 and JOSHUA MELVIN, 23, both of Durham, were found guilty in a jury trial before Chief Judge James C. Dever, III, of conspiracy to commit Hobbs Act robbery, and using, carrying, and discharging a firearm during and in relation to a crime of violence and possessing the firearm in furtherance of the robbery.
THORPE and MELVIN, along with two others, were indicted by a federal grand jury on March 16, 2016.
Evidence presented at trial established that THORPE, MELVIN, and others sought to rob the victim, a co-owner and promoter of the nightclub Vegas Night Life, of proceeds from the business. The defendants affixed a GPS tracking device to the victim’s vehicle in an effort to track his whereabouts and to determine the location of his residence.
On or about March 16, 2015, THORPE, MELVIN, and others traveled to the Morrisville residence and conducted a violent home-invasion robbery. Multiple victims were present during the robbery, including a female child and her mother. The child was pulled from her mother’s arms, forced into a bedroom, and threatened to be drowned as the robbers demanded money from the other victims. When an adult female victim attempted to intervene, she was beaten repeatedly. The intended target of the robbery was shot before jumping to the ground from a second story balcony. The defendants then led police on a car chase as they fled.
The case was investigated by the Federal Bureau of Investigation, the Morrisville Police Department, and the Durham County Sheriff’s Office. Assistant United States Attorney Toby Lathan and Special Assistant United States Attorney Boz Zellinger handled the prosecution.
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News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce within 48 hours of release.
Medical Device Saleswoman Sentenced to Three Years in Prison for Charges Relating to the Transport of Stolen Medical Devices and Money LaunderingRead the Press Release
On December 1, 2016, a medical device saleswoman was sentenced to three years in prison for her involvement in a stolen medical device and money laundering conspiracy.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Justin D. Green, Special Agent in Charge, United States Food and Drug Administration (FDA), Office of Criminal Investigations, Miami Field Office, made the announcement.
Kerri L. Kaley, 50 of Cold Spring Harbor, New York, was sentenced in Miami on eight felony counts in a criminal case arising out of a Miami-based FDA investigation that has led to convictions in over twenty-five cases of medical device theft and has resulted in forfeitures, fines, and restitution totaling over $5 million. U.S. District Court Judge Darrin P. Gayles presided over a trial of seven of Kaley’s charges of conviction in September, for her role in a conspiracy to transport and sell in interstate commerce various stolen prescription medical devices, the actual transport and sale of stolen medical devices, and money laundering associated with that activity. In November 2014, Kaley was tried and convicted on charges of obstructing justice in connection with the same activity. At sentencing, Kaley was ordered to serve a term of thirty-six months in prison, to be followed by a similar term of supervised release. In connection with the criminal trial, Kaley agreed to, and was ordered to forfeit $500,000 to the United States, with the possibility of a further money judgment to be resolved at a later ring.
According to court records and testimony at trial, from approximately 1995 through February 2005, Kaley participated in a conspiracy with a group of individuals based in Long Island, New York. The entire group, including Kaley, were medical device sales representatives for subsidiaries of Johnson & Johnson. While based in Miami, Kaley solicited sales representatives and other employees of medical device manufacturers, seeking to purchase medical devices for re-sale. As part of the conspiracy, Kaley and others working with her would secure possession of significant quantities of prescription medical devices from hospitals they serviced for their employer, which were then forwarded to a conspirator in Delray Beach, Florida. These devices were often state-of-the-art equipment used for minimally invasive surgeries and suture materials used by hospitals. The devices were acquired by theft and fraud from customer medical facilities, New York non-profit hospitals. During the course of the illicit activity Kaley laundered over $2.2 million in payments through two sham construction corporations and used the funds to pay the co-conspirators, their home mortgages, home-renovations, and child care expenses.
Charges remain pending against co-conspirator Brian K. Kaley, but no trial date has been set. An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Mr. Ferrer commended the investigative efforts of the U.S. Food and Drug Administration in this matter. The current case is being prosecuted by Assistant United States Attorneys Thomas Watts-FitzGerald, Brooke Watson, and Alison Lehr.
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
McAllen Man Convicted of Receiving Child Pornography VideosRead the Press Release
McALLEN, Texas – A 27-year old resident of McAllen has entered a guilty plea to one count of receipt of child pornography, announced U.S. Attorney Kenneth Magidson.
Jesus Salvador Lara-Perez came to the attention of law enforcement following an investigation which began on Nov. 8, 2015, into persons using the Internet to traffic in child pornography. A special agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) was able to locate and identify a computer as offering to participate in the receipt of child pornography videos through the peer-to-peer network on the Internet. Through the investigation, it was determined that the computer was located at a residence in McAllen.
On June 28, 2016, authorities executed a federal search warrant at that residence, during which time they seized a laptop computer. A forensic examination on the computer revealed 198 videos and 109 images of child pornography involving clearly young children engaged in sexually explicit conduct. These videos included children under the age of 12 involved in sadistic conduct, bondage and other depictions of violence. Some of the videos are of known victims as identified through the National Center for Missing and Exploited Children.
Lara-Perez admitted he downloaded and viewed child pornography from the Internet, thereby receiving the child pornography found on his laptop computer. He admitted he had been downloading child pornography for approximately three years.
U.S. District Judge Ricardo Hinojosa, who accepted the guilty plea today, has set sentencing for Feb. 23, 2017. At that time, Lara-Perez faces a minimum of five and up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
HSI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Alex Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Manchester Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
Concord, N.H.—United States Attorney Emily Gray Rice announced that Marcos Nieves, 40, previously of Manchester, New Hampshire, pleaded guilty to the illegal possession of firearms and ammunition.
According to the indictment and other statements made in court, members of the Manchester Police Department obtained a search warrant for the defendant’s Manchester residence in connection with an investigation into a non-fatal shooting on August 8, 2015. While executing the search warrant, they recovered two stolen AK-47 style weapons, several firearm magazine clips, ammunition, drugs, drug dealing paraphernalia, and personal documents identifying Nieves in a bedroom closet. At the time, Nieves was prohibited from possessing any firearm as a result of at least one prior felony conviction.
NIEVES has been in state custody since August 8, 2015. He previously pleaded guilty to narcotics charges in Hillsborough County in connection with the controlled substances recovered during the execution of the search warrant, and is serving a sentence of 2 to 4 years in New Hampshire State Prison.
A sentencing hearing has been scheduled for March 17, 2017.
This matter was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Lynn Man Sentenced for Stealing Veteran BenefitsRead the Press Release
BOSTON – A Lynn man was sentenced today in U.S. District Court in Boston in connection with stealing nearly $80,000 in veteran benefits.
John Ladd, 73, was sentenced by U.S. District Court Judge Douglas P. Woodlock to one year of probation with the first six months to be served in home confinement, and ordered to pay $79,958 in restitution to the U.S. Department of Veterans Affairs. In August 2016, Ladd pleaded guilty to stealing public money.
In 2009, Ladd’s neighbor was receiving monthly veteran benefits when she died; however, the U.S. Department of Veterans Affairs was not properly notified of the death therefore, her benefits each month continued to be deposited into her bank account. Ladd had been assisting his neighbor before her death, and this enabled him to access her checkbook. Although Ladd was not entitled to his neighbor’s veteran benefits, he routinely wrote checks to himself from his neighbor’s account after her death, forging her signature on each check. Ladd then deposited the checks into his own bank accounts. Ladd ultimately wrote himself 70 checks totaling $79,958.
United States Attorney Carmen M. Ortiz and Donna Neves, Special Agent in Charge of the Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office, made the announcement today. Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit prosecuted the case.
Leader of Black P-Stones Gang Convicted of Racketeering Conspiracy and Murder ChargesRead the Press Release
A federal jury convicted a Newport News, Virginia, man on numerous charges related to the racketeering enterprise activity of a gang known as the Black P-Stones.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Martin W. Culbreth of the Federal Bureau of Investigation’s Norfolk, Virgina, Field Office made the announcement.Michael Hopson, aka “Hop” aka “Big Homie,” 39, was convicted today by a federal jury sitting in the Eastern District of Virginia of racketeering conspiracy – including acts of murder, attempted murder, robbery, obstruction of justice – murder in aid of racketeering, conspiracy and attempted murder in aid of racketeering, as well as various narcotics charges.
According to evidence presented at trial, Hopson was the founding member and leader (OG) of the Black P-Stones gang, also referred to as the P-Stone Bloods and Cobra Stones, which operates primarily in the Denbigh area of Newport News. The Black P-Stones engage in violent crimes including murders, illegal drug trafficking, obstruction of justice and robberies that often target narcotics dealers and use stolen currency and inventory to fund gang members’ court dues.
According to the trial evidence, as the OG, Hopson planned, directed and participated in recruiting members, including minors; collected monthly gang dues; carried out and ordered violent crimes; ordered and presided over meetings; and organized the gang’s distribution marijuana. Trial evidence also demonstrated that Hopson used his position as a security officer at Denbigh High School to recruit minors to join the Black P-Stones and sell narcotics to high school students.
Trial evidence showed that Hopson personally ordered multiple shootings and murders between October 2007 and June 2009. On October 31, 2007, Hopson ordered Black P-Stones members to murder A.J., a member of the rival Thugs Relations street gang. At Hopson’s direction, the armed Black P-Stones members attempted to lure him from the home, but were unsuccessful.
On November 6, 2007, a Black P-Stones member, acting on Hopson’s orders, lured E.S., a 17-year-old Black P-Stones member, to a Newport News location and killed him. Hopson had given the “green light” to kill E.S. because of his friendships with Thug Relations members, and rewarded the Black P-Stone member with a promotion.
On December 10, 2008, Hopson authorized the murder of J.W., a Crip who had been disrespectful to members of the Black P-Stones. Acting on those orders, two Black P-Stones members went to the home of J.W. and fired multiple rounds into the home. J.W.’s father, who was sitting in the living room when the assault occurred, was hit with debris from the bullet shrapnel and suffered injury to his eye.
On March 9, 2009, Hopson ordered the murder of two members of 10-1 Mafia Crips, a rival gang of the Black P-Stones, in reponse to the beating of a Black P-Stones member. Acting on Hopson’s orders, two Black P-Stones members shot multiple times into the home of the two 10-1 Mafia Crips.
On April 17, 2009, Hopson ordered two Black P-Stones members to fire multiple rounds into a home he knew to be occupied because the individuals inside the home were disrespectful to him.
On June 12, 2009, Hopson ordered the murder of A.J., a Thug Relations member who was responsible for the murder of a Black P-Stones member. A Black P-Stones member acting on Hopson’s orders shot and wounded A.J.
FBI’s Safe Streets Peninsula Task Force investigated the case, with the assistance of the Newport News Police Department and the James City County Police Department. Trial Attorney Marianne Shelvey of the Organized Crime and Gang Section in the Justice Department’s Criminal Division and Assistant United States Attorney Eric M. Hurt of the Eastern District of Virginia are prosecuting the case.
Leader of Anchorage Drug Conspiracy Sentenced to PrisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Toa Danh “Tony” Ly, 45, resident of Anchorage, Alaska, was sentenced on Friday, December 2, by U.S. District Judge Sharon L. Gleason to 60 months in prison, to be followed by a five-year term of supervised release, for conspiring to distribute methamphetamine and heroin, and money laundering conspiracy.
According to court documents and arguments made during Friday’s sentencing hearing, starting in the summer of 2014, law enforcement began investigating several individuals implicated in the distribution of methamphetamine and heroin throughout Southcentral Alaska. As part of that investigation, law enforcement made numerous controlled purchases of methamphetamine and heroin from Ly and his co-conspirators. Between May 2014 and January 2015, Ly accepted delivery of pounds of methamphetamine and heroin, distributing those products directly and through his co-conspirators in Anchorage, the Valley, and the Kenai Peninsula. Proceeds from these drug sales were generally deposited into Wells Fargo bank accounts controlled by Ly. In total, during the seven months that the conspiracy existed, Ly made more than $500,000 from his illegal sale of drugs.
Judge Gleason based her sentence in numerous factors, including the nature and circumstances of the defendant’s conduct. According to Judge Gleason, the defendant’s sentence was appropriate because of the fact that the defendant was “the head guy [of the conspiracy], making tens of tens of thousands of dollars [with] lots of people working for him.” Judge Gleason also noted the powerful impact the defendant’s drug sales had on the community, and discussed how the drugs distributed by the defendant “ruined lives,” and made parents who were addicted want to get high more than they wanted to be with their own children. Judge Gleason stated that, the serious penalties required under the drug laws were in place precisely because of the harm that drugs do to families and communities.
Other defendants indicted as part of this investigation include:
- Renee Marie Davis pleaded guilty to conspiracy to distribute controlled substances. On Jan. 19, 2016, the court sentenced her to 72 months in prison.
- Adam Michael Cornelison pleaded guilty to use of a firearm in furtherance of a drug trafficking offense. On Feb. 9, 2016, the court sentenced him to 60 months in prison.
- Kasey Martinez pleaded guilty to money laundering conspiracy. On July 18, 2016, the court sentenced her to 40 months in prison.
- Pao Lee pleaded guilty to conspiracy to distribute controlled substances and distribution of controlled substances. Sentencing is set for Jan. 11, 2017.
- Robert Lee Rast pleaded guilty to conspiracy to distribute controlled substances. Sentencing is set for Jan. 20, 2017.
- Tracey Trujillo pleaded guilty to money laundering conspiracy. A motion to continue judgment and sentencing to the week of January 10 has been filed.
- On Nov. 1, 2016, a jury found Murville Lampkin guilty of conspiracy to distribute controlled substances, money laundering conspiracy, distribution of controlled substances, and possession of controlled substances with the intent to distribute. Sentencing is set for Feb. 15, 2017.
This case was investigated and prosecuted by the FBI Safe Streets Task Force, the Internal Revenue Service, and Assistant U.S. Attorney Kyle Reardon.
Kern County Man Sentenced for Illegally Possessing Firearms, Explosives and a Destructive DeviceRead the Press Release
FRESNO, Calif. — Kenneth William Kirkland, 48, of California City, was sentenced today by U.S. District Judge Dale A. Drozd to four years and nine months in prison for being a felon in possession of firearms, being a felon in possession of a destructive device, being a felon in possession of explosives, and possession of a destructive device not registered in the National Firearms Registry, U.S. Attorney Phillip A. Talbert announced.
Kirkland was convicted of these offenses in September 2016 after a three-day trial. According to court documents and evidence produced at trial, on October 11, 2015, officers from the California City Police Department executed a search warrant at Kirkland’s house and found a 5.56-caliber assault rifle that was loaded with a high-capacity magazine and one round in the chamber and a 7.62 x 54R-caliber rifle. When officers discovered detonators in a yellow metal container, they requested the assistance of the Kern County Sheriff’s bomb squad.
In addition to the detonators, several sticks of dynamite were found and a partially constructed improvised explosive device (IED) was found in a shoebox under Kirkland’s bed. Electrical components in a separate shoebox were also found. It was later determined that with either the insertion of batteries into a battery pack or the connecting of its wires directly to a battery, the partially constructed improvised explosive device could be readily assembled into a fully functional IED.
According to the indictment, on June 17, 1993, Kirkland was convicted in Kern County of burglary and was prohibited from possessing firearms or ammunition.
This case was the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the California City Police Department, and the Kern County Sheriff’s Office. Assistant U.S. Attorneys Angela L. Scott and Christopher Baker prosecuted the case.
Justice Department Reaches Agreement with Watson Chapel, Arkansas, School District to Prevent Discrimination and Reform Discipline PracticesRead the Press Release
The Justice Department reached an agreement with the Watson Chapel, Arkansas, School District to ensure that the district does not discriminate on the basis of race in its administration of school discipline. The consent order, approved today by the District Court for the Eastern District of Arkansas, will replace the use of punitive discipline with more positive approaches as part of an overall focus on improving student achievement and school climate.
The consent order is intended to address the remaining issues in the school desegregation case in Watson Chapel, and when fully implemented, will lead to the closing of that case. As part of the consent order, the district will be required to:
• implement a classroom management system that focuses on interventions and supports;
• eliminate out-of-school suspensions for offenses that do not involve or threaten safety;
• stop the use of corporal punishment, which has been disproportionately applied against black students and undermined the creation of a positive school climate;
• assess the district’s support services for students with disabilities to ensure that students, particularly students of color, are not disciplined for their disabilities;
• enter into an agreement with the law enforcement agencies that provide School Resource Officers (SROs) to the district that makes clear that SROs will not become involved in enforcing school discipline rules and prevents students from being arrested for minor misconduct; and
• conduct outreach to students, parents and community members to explain and solicit feedback on the district’s disciplinary policies and procedures.“For far too long, some school districts have used overly punitive and ineffective discipline practices that prevent students of color from reaching their full potential,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division. “We commend the Watson Chapel School District for committing to create an equal, supportive and inclusive learning environment for all.”
The court will retain jurisdiction over the consent order during its implementation, and the Justice Department will monitor the district’s compliance. The consent order is expected to take three years to implement.
The enforcement of Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, national origin, sex and religion in public schools, is a top priority of the Civil Rights Division. Additional information about the Justice Department’s Civil Rights Division is available at www.justice.gov/crt.
Watson Chapel Consent OrderJury Finds Bakersfield Man Guilty of Hate CrimeRead the Press Release
BAKERSFIELD, Calif. — After a five-day trial, a federal jury in Fresno found Justin Cole Whittington, 25, of Bakersfield, guilty of federal hate crimes for firing a shotgun while yelling racist slurs at a Latino man, Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Phillip A. Talbert announced.
Whittington was convicted today of interfering with a person’s housing rights because of his race, color, or national origin by use of force or threat of force; use of a firearm during a crime of violence; and making a false statement to a special agent of the FBI. Whittington had earlier pleaded guilty to unlawful possession of a prohibited firearm in connection to the same crime.
According to court documents, on December 19, 2012, the victim, a Latino man, was standing in his front yard with his wife and son when a dark-colored PT Cruiser drove past slowly and came to a stop in front of his neighbor’s house. The victim thought this was unusual and paid close attention the car. Whittington, whom the victim had never seen before, got out of the front passenger seat of the car holding a sawed-off shotgun. Whittington used profanity and shouted a racial epithet as he fired one round toward the victim from about 15 yards away, and yelled that the victim should move out of Oildale. Whittington got back into the car and it drove away. Shortly thereafter, the shotgun was fired from the PT Cruiser at a nearby convenience store owned by a man of Middle Eastern descent. The blast left a large hole in the store’s glass door, and circles of missing paint on the metal gate in front of the store.
According to evidence presented at trial, the victim was able to describe Whittington and the car to Kern County Sheriff’s deputies, and they found Whittington nearby standing outside the PT Cruiser. The deputies recovered a sawed-off shotgun in the trunk of Whittington’s Crown Victoria, which was parked near the PT Cruiser.
Whittington was also found guilty of making false statements to an FBI agent when he falsely claimed that on the evening of the incident, he had been paid by someone to keep the sawed-off shotgun in the trunk of his car.
According to court documents and evidence presented at trial, the victim and his family no longer felt safe in their home, and as soon as they had the financial means to do so, they moved from the neighborhood.
“Whittington used violence to terrorize an innocent man and his family,” said Principal Deputy Assistant Attorney General Gupta. “The harm from hate crimes like this one extends beyond individuals and threatens the security, freedom and well-being of entire communities. No conviction can reverse that harm, but this verdict does provide a measure of justice for the victim, his family and his community.”
U.S. Attorney Talbert stated: “The Eastern District of California is a community of different races, ethnicities, and backgrounds. This defendant tried to strike at the diversity that enriches us by making a cowardly and unprovoked attack on a man who was simply standing in his front yard with his family. Hate crimes like this have profound effects not only on the victims, but on those in the victims’ communities, making them feel vulnerable and unsafe. Our office is committed to investigating and prosecuting those who violate the civil rights of others, and enforcing laws against hate crimes will remain one of the core missions of this office.”
This case is the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office. Assistant U.S. Attorney Brian K. Delaney is prosecuting the case with the assistance of Trial Attorney Samantha Trepel of the Justice Department’s Civil Rights Division.
Whittington is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on February 27, 2017. Whittington faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Irfan Amanat Charged in Manhattan Federal Court with Schemes to Defraud Auditors and Investors in KIT digital and Maiden CapitalRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced the unsealing of charges today against IRFAN AMANAT for his schemes to defraud the auditors and investors of KIT digital (“KITD”), a publicly traded technology start-up company based in New York and Prague, Czech Republic, and the investors of Maiden Capital LLC (“Maiden Capital”), an investment advisory firm based in North Carolina.
U.S. Attorney Preet Bharara said: “As alleged, Irfan Amanat lied to auditors, investors, and the SEC about millions of dollars of KIT digital and Maiden Capital funds that were lost and misappropriated. For his alleged deception, Irfan Amanat now faces multiple counts of federal fraud charges.”
FBI Assistant Director-in-Charge William F. Sweeney, Jr. said: “Amanat allegedly engaged in a systematic scheme to scam investors and auditors alike. He played cat and mouse with shareholders’ money, but couldn’t escape the final pursuit. The FBI has dedicated a significant amount of resources to uncovering financial crimes targeted against individuals, businesses, and industries, and securities and commodities fraud remains at the top of our list of priorities.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Mr. Amanat allegedly participated in a scheme to mislead investors, while knowing the company Enable was totally insolvent. He continued to solicit and receive investor funds and then lied on annual reports in an effort to conceal the misappropriation of funds from investors. Postal Inspectors have no tolerance for these types of fraud schemes and will continue to dedicate resources to investigate and bring to justice those who participate in securities fraud.”
IRFAN AMANAT – the brother of Omar Amanat and an associate of Kaleil Isaza Tuzman (“Tuzman”), the former Chairman and CEO of KITD – was charged with securities fraud and conspiring to commit securities fraud, make false statements in annual and quarterly SEC reports filed by KITD, and make false statements to KITD’s auditors. These charges relate to IRFAN AMANAT’s participation in a scheme to mislead KITD’s auditors and investors regarding KITD’s investment with Enable, an investment vehicle he at times controlled. Instead of informing KITD’s auditors and investors that more than $2 million that KITD invested with Enable had been lost or fraudulently misappropriated, IRFAN AMANAT falsely represented that KITD’s investment with Enable was sound and earning steady interest. IRFAN AMANAT was also charged with conspiracy to commit wire fraud, wire fraud, and aiding and abetting investment adviser fraud for participating in a scheme, along with Stephen Maiden (“Maiden”), to defraud investors in Maiden Capital, also regarding investments in Enable. IRFAN AMANAT was arrested in Pine Brook, New Jersey, this morning and is expected to be presented today in federal court in Manhattan before a United States Magistrate Judge.
Maiden previously pled guilty to charges relating to his own involvement in manipulating the market in KITD shares, defrauding KITD shareholders concerning KITD’s investment in Maiden Capital, and defrauding Maiden’s investors concerning the Enable investment. Maiden is cooperating with the Government in this investigation.
Tuzman was arrested in Colombia in September 2015 on market manipulation, accounting, and wire fraud charges and extradited to the United States in July 2016. Omar Amanat was arrested in July 2016 on market manipulation and wire fraud charges, and for aiding and abetting Maiden’s fraud against his investment advisory clients. Both Tuzman and Omar Amanat have been released on bail pending an October 2017 trial before the Honorable Paul G. Gardephe.
According to the Complaint[1] unsealed today in Manhattan federal court:
Fraudulent Schemes Involving Enable
As alleged in the Complaint, between 2009 and 2012, IRFAN AMANAT engaged in two interrelated fraudulent schemes in which he falsely represented to auditors and investors that Enable maintained millions of dollars in accounts held for the benefit of KITD and Maiden Capital. In truth, as IRFAN AMANAT well knew, KITD’s and Maiden Capital’s investments in Enable had long been lost, including through poor trading and misappropriations.
In 2008 and 2009, IRFAN AMANAT and Omar Amanat raised more than $10 million for a series of Amanat investment vehicles, including Enable, from more than 10 investors. These funds included investments made by Tuzman, on behalf of KITD, and by Maiden, on behalf of Maiden Capital. Of this money, IRFAN AMANAT lost more than $5.5 million through poor trading. Omar Amanat, with the knowledge of IRFAN AMANAT, improperly diverted more than $3 million for his personal use.
The Scheme to Defraud KITD’s Auditors and Investors
Between 2008 and 2012, KITD, a now-defunct but once publicly traded software company, was obligated to accurately report the nature of its purported assets, including whether assets were held in cash or otherwise. As of on or about September 30, 2008, over 70% of KITD’s cash was invested with Enable. By at least February 2009, however, Enable was insolvent.
Between 2009 until at least April 2012, IRFAN AMANAT, with the knowledge of Tuzman, Omar Amanat, and others, deceived KITD’s auditors and investors about KITD’s true financial health by misrepresenting that Enable maintained more than $2 million in liquid assets in an asset management account on behalf of KITD when, as IRFAN AMANAT well knew, the money had been lost or misappropriated. In particular, IRFAN AMANAT misled KITD’s auditors by sending, or causing to be sent, balance confirmations, for the benefit of KITD’s auditors, falsely claiming that Enable maintained more than $2 million of KITD’s funds in an asset management account earning a steady interest rate. IRFAN AMANAT made these misrepresentations knowing that they were material to the audit of KITD’s financial statements and, ultimately, to the investing public. As a result of IRFAN AMANAT’s misrepresentations, various KITD annual financial filings were materially false.
The Scheme to Defraud Maiden Capital Investors
Maiden was the managing member of Maiden Capital, an unregistered investment advisory firm that managed portfolios of securities. Clients empowered Maiden Capital and Maiden to make investment decisions on their behalf. Maiden, in turn, was obligated to make such decisions based on the best interests of his clients. In 2008, Maiden made a series of investments in Enable, for a total investment of more than $2 million. In or about March 2009, Maiden learned that Enable was insolvent.
Between March 2009 until at least June 2012, IRFAN AMANAT, working with Maiden, Omar Amanat, and others, devised and carried out a scheme to hide the fact that Maiden Capital’s investment in Enable had been lost. Rather than disclose the Enable losses to Maiden Capital’s investors, as he was legally obligated to do, Maiden concealed the Enable losses, thereby acting in his own self-interest and the interests of IRFAN AMANAT, his close associate, who did not want the Enable losses to be exposed. IRFAN AMANAT aided and abetted Maiden’s investment advisory fraud by providing Maiden with fictitious account statements reflecting a positive Enable balance, knowing that the information in these statements would be provided to Maiden’s investors. IRFAN AMANAT’s fraudulent assistance helped Maiden cover up the Enable losses for over three years.
IRFAN AMANAT, 45, is charged with one count of conspiracy to commit securities fraud, make false statements in annual and quarterly SEC reports, and make false statements to auditors, one count of securities fraud, one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of aiding and abetting investment adviser fraud. Counts Two, Three, and Four each carry a maximum sentence of 20 years in prison. Counts One and Five each carry a maximum sentence of five years in prison. Count Two carries a maximum fine of $5 million, or twice the gross gain or loss from the offense. Counts One, Three, and Four each carry a maximum fine of $250,000 or twice the gross gain or loss from the offense. Count Five carries a maximum fine of $10,000, or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
* * *
Mr. Bharara praised the work of the FBI and the U.S. Postal Inspection Service, and thanked the Securities and Exchange Commission for their assistance. He added that the investigation is continuing.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Damian Williams and Andrea M. Griswold are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is
US v. Irfan Amanat complaint.pdf presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Iowa Woman Sentenced for Mortgage FraudRead the Press Release
COUNCIL BLUFFS, IA - On December 2, 2016, Mandy Lea Whipple, formerly Mandy Lea Johnson, a 34 year-old resident of Page County, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose, to 18 months in prison followed by five years of Supervised Release for Mortgage Fraud, announced United States Attorney Kevin E. VanderSchel.
Whipple entered a guilty plea on June 9, 2016, to Mortgage Fraud for falsifying mortgage loan papers to purchase a house in Fremont County, Iowa. The investigation began with a report of delinquent payments on the purchased Fremont County residence, leading to the discovery that Whipple had falsely obtained a Veteran Administration’s loan to purchase the home, using the name and identifiers of a military veteran that employed her.
As part of the sentence, the Court ordered Whipple to make restitution to the Veteran’s Administration in the amount of $41,675.00; to J.G. Wentworth Mortgage Home Lending, LLC, in the amount of $28,904.27; and to Discover Financial Services in the amount of $5,780.04.
The investigation was conducted by the Fremont County Sheriff’s Office, Fremont County Attorney’s Office, Department of Veteran Affairs-Office of Inspector General, and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.