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25 January 2017
Wife of Former Supervisory Customs and Border Protection Officer Pleads Guilty to Alien Smuggling ConspiracyRead the Press Release
In El Paso today, the wife of former Supervisory Customs and Border Protection Officer Lawrence Madrid who failed to appear for trial last year pleaded guilty to her role in an alien smuggling and bribery scheme announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Assistant Special Agent in Charge Jeff Mayfield, (ASAC) Las Cruces; and, Department of Homeland Security-Office of Inspector General Special Agent in Charge Javy Pedroza.
Appearing before Senior United States District Judge David Briones, 39-year-old Odet Madrid-Corchado pleaded guilty to one count of conspiracy to commit alien smuggling for financial gain, one substantive count of alien smuggling for financial gain and one count of bribery of a public official. Odet Madrid-Corchado, who has remained in custody following her arrest on November 29, 2016, faces not more than ten years imprisonment on the conspiracy charge, between three and ten years imprisonment for the substantive alien smuggling charge, and not more than 15 years imprisonment for the bribery charge. Sentencing is scheduled for 9:30am on April 5, 2017.
According to court records, from August 2010 to September 2011, Odet Madrid-Corchado conspired with her husband and others to encourage/induce undocumented aliens to come to, enter, and reside in the United States without proper authorization. Specifically, Odet Madrid-Corchado facilitated the crossing of aliens through ports of entry and collected the smuggling fees. During the conspiracy, Lawrence Madrid accepted money for using his official position to allow undocumented aliens to be smuggled through the ports of entry in El Paso.
An arrest warrant was issued for Odet Madrid-Corchado after she failed to appear with her husband for trial. Her $10,000 appearance bond has been forfeited to the Government. On May 26, 2016, a federal jury in El Paso found Lawrence Madrid guilty of conspiracy to commit alien smuggling for financial gain, aiding and abetting alien smuggling for financial gain, and two substantive counts of accepting a bribe. Lawrence Madrid is currently serving a 90-month federal prison sentence handed down on September 9, 2016,
A third defendant in this case, 46-year-old undocumented alien Maria Guadalupe Jaime-Hernandez, is also considered a fugitive after failing to appear for sentencing in September 2016. On May 5, 2016, Jaime-Hernandez pleaded guilty to one count of conspiracy to commit alien smuggling for financial gain. Her $10,000 appearance bond has been forfeited to the Government and a warrant has been issued for her arrest.
This case was investigated by the Homeland Security Investigations (HSI) Las Cruces Office together with the Department of Homeland Security-Office of Inspector General Investigations. Assistant United States Attorneys Greg McDonald and Robert Almonte are prosecuting this case on behalf of the Government.
Website Operator Charged with Defrauding More Than 2,000 Victims in New York City Apartment Search ScamRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the filing of a criminal complaint charging ROBERT GUZMAN with mail fraud in connection with a fraudulent apartment rental scheme that claimed more than 2,000 victims. As alleged, GUZMAN posted apartments supposedly available for rent in New York City on websites he operated, amazingapartmentrentals.com and www.equityproject.net (the “Websites”), that charged a fee to view the apartments on the Website. Between 2013 and 2016, victims paid GUZMAN (who has no real estate licenses) more than $100,000, but were never able to view the apartments purportedly available for rent on the Websites, some of which were not, in fact, in New York City, and others of which were not, in fact, available for rent. GUZMAN was arrested this morning and will be presented before the Honorable James C. Francis IV later today.
Manhattan U.S. Attorney Preet Bharara said: “Robert Guzman allegedly defrauded more than 2,000 victims who were searching for a place to live in New York City. He allegedly created websites that took advantage of these victims’ desire to find affordable housing in New York city, taking fees from victims to view apartments, when in fact some of the apartments were not even in New York or available for rent. Thanks to the work of the U.S. Postal Inspection Service, Guzman’s alleged scam has been put to an end.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Mr. Guzman took advantage of the need for affordable housing by allegedly devising a scheme to defraud those who could least afford to lose their hard-earned funds to a scam. Today’s arrest by Postal Inspectors, exemplifies our Agency’s commitment to bring individuals to justice whose greed overshadows honesty and decency.”
According to the Complaint[1]:
From 2013 through the present, GUZMAN would post on the Websites apartments supposedly available for rent in New York City, and would charge a fee to view the apartments (the “Application Fee”). The Website included listings for apartments that were not, in fact, in New York City, as well as some that were, in fact, listed for sale, not for rent, by actual real estate companies. After the victims mailed the Application Fee to a P.O. box GUZMAN provided on the Website, the victims would never be able to view the apartments purportedly available for rent. Between 2013 and 2016, GUZMAN defrauded more than 2,000 victims of over $100,000.
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GUZMAN, 42, of the Bronx, New York, was arrested this morning in the Bronx. GUZMAN was charged with mail fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the efforts of the USPIS in this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jacob Warren is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint forth herein constitute only allegations, and every fact described should be treated as an allegation.
Waltham Financial Advisor to Plead Guilty to Securities FraudRead the Press Release
BOSTON – A Waltham-based financial advisor has agreed to plead guilty in connection with defrauding his clients by engaging in a multi-year “cherry-picking” scheme.
Michael J. Breton, 50, the managing partner of an investment advisory firm, Strategic Capital Management, LLC (SCM), was charged in an Information with securities fraud.
It is alleged that from 2011 through at least July 2016, Breton, using a master brokerage account, regularly purchased shares in publicly-traded companies the day that those companies announced earnings from the previous quarter. Breton allegedly purchased shares in those companies shortly before the earnings announcements and then allocated the shares after the earnings announcements. Thus, Breton allocated the shares to one of his accounts or to the client accounts after knowing whether the company had announced positive or negative news about its earnings, which determined whether the trade was likely to be profitable in the short term. Throughout the scheme, Breton allocated more profitable trades to himself and allocated unprofitable trades to his clients, thereby stealing more than $1.3 million in potential profits from his clients.
“Investment advisory clients, by necessity, entrust their advisors with great discretion over their life savings,” said Acting United States Attorney William D. Weinreb. “As today’s charges demonstrate, when advisors abuse that trust—by stealing from their very own clients—they will be held criminally accountable.”
“Motivated by greed, Mr. Breton used his clients’ trust against them,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “By making the conscious decision to place his own interests above theirs, his behavior undermined the financial security of hard-working individuals. The FBI will do everything it can to protect investors, while rooting out fraud like this.”
The securities fraud statute provides for a sentence of no greater than 25 years in prison, five years of supervised release and a fine of $5 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Breton has agreed to plead guilty to securities fraud and pay forfeiture of $1,326,696. The U.S. Attorney’s Office has agreed to recommend a sentence of no greater than three years in prison.
The Securities and Exchange Commission today filed a parallel civil action. Breton has agreed to partially resolve the SEC’s claims by, among other things, agreeing to the entry of an SEC order permanently barring him from working in the securities industry.
Acting U.S. Attorney Weinreb and FBI SAC Shaw made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities and Exchange Commission. Sarah E. Walters, Chief of Weinreb’s Economic Crimes Unit, is prosecuting the case.
Wallingford Woman Sentenced to Prison for Distributing Heroin to Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRITTANY ESPOSITO, 28, of Wallingford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to six months of imprisonment, followed by three years of supervised release, for distributing heroin. Judge Covello also ordered ESPOSITO to pay a $1,000 fine.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on May 14, 2016, Old Saybrook Police and emergency medical personnel responded to a report of a suspected overdose at an apartment on Main Street in Old Saybrook. The victim, a 26-year-old male, was pronounced deceased at the scene. Investigators seized the victim’s iPhone, one empty wax paper fold and several syringes.
The investigation, which included the analysis of numerous text messages, revealed that ESPOSITO purchased heroin for the victim on credit and then provided the heroin to the victim on May 13, 2016.
ESPOSITO was arrested on June 16, 2016. On November 17, 2016, she pleaded guilty to one count of distribution of heroin.
This matter was investigated by the DEA’s New Haven Tactical Diversion Squad and the Old Saybrook Police Department, with support and assistance of the Middlesex State’s Attorney’s Office. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
This case was prosecuted by Assistant U.S. Attorney Robert M. Spector.
U.S. Attorney Settles ADA Complaints with Connecticut Department of Developmental ServicesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached an Americans with Disabilities Act (“ADA”) settlement with the Connecticut Department of Developmental Services (“DDS”) to ensure that DDS provides effective communication for individuals with disabilities.
The settlement agreement resolves three ADA complaints filed by the State’s Office of Protection and Advocacy for Persons with Disabilities on behalf of two individuals who are hearing impaired. The complaints allege that DDS failed to provide effective communication during certain programs and meetings by failing to make available sign language interpreters or appropriate auxiliary aids. DDS is working with the U.S. Department of Justice to develop and amend its policies and practices to ensure compliance with the ADA and the Department’s implementing regulations.
“Individuals who have disabilities must not be denied equal access to the services offered by the State of Connecticut because of their disability,” said U.S. Attorney Daly. “We commend DDS for voluntarily agreeing to enter this settlement agreement, and to ensure they are providing effective communication to persons who are hearing impaired.”
The ADA requires “public entities,” including local governments and state agencies, to ensure effective communication with qualified individuals with disabilities. Under this agreement, a person who is deaf or hard of hearing will be able to benefit from the same services as every other person. For individuals who are deaf or hard of hearing, auxiliary aids include qualified sign language or oral interpreters, use of relay services, computer-assisted real time transcription, and, for simple communications, the exchange of written notes.
The settlement agreement specifically requires DDS to:
- Conduct a detailed audit of its services to make sure individuals who are deaf or hard of hearing are being provided with effective communication during all programs and services;
- Ensure that appropriate auxiliary aids and services, including qualified interpreters, and specifically tactile interpreters, are made available to all individuals who are deaf or hard of hearing;
- Set aside funding to ensure that auxiliary aids and services are timely provided to clients;
- Ensure its policies and practices are nondiscriminatory, and provide effective communication for people with communication disabilities, including the provision of sign language interpreters;
- Post a notice of the policy in public areas;
- Train staff on the policies.
This matter was handled by Assistant U.S. Attorneys Ndidi N. Moses and Vanessa Roberts Avery, with the assistance of the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Individuals who believe that they may have been victims of discrimination can file a complaint with the U.S. Attorney’s Office at 203-821-3700. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
Two Newark, New Jersey, Men Sentenced to More Than 14 Years in Prison for Carjacking and Other ChargesRead the Press Release
NEWARK, N.J. – Two Newark men who collectively carried out two armed carjackings and one attempted carjacking in September 2013 were each sentenced to prison today, U.S. Attorney Paul J. Fishman announced.
Dion Hines, 23, and Roosevelt Robinson, 25, were sentenced to 192 and 171 months in prison, respectively. Hines previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of attempted carjacking, two counts of carjacking, and one count of using a firearm during a crime of violence. Robinson previously pleaded guilty to an information charging him with one count of attempted carjacking, one count of carjacking, and one count of using a firearm during a crime of violence. Judge Hayden imposed both sentences today in Newark federal court.
According to documents filed in this case and statements made in court:
On Sept. 22, 2013, Hines, Robinson, and another male individual approached a Mercedes Benz sedan that was parked in a residential driveway in Newark. Hines brandished a handgun and ordered the driver to get out of the vehicle. The victim eventually got out of the car and Robinson sat in the driver’s seat. After Hines and the other male individual fled on foot, the victim fought Robinson, pulled him from the Mercedes Benz, and got back into the vehicle. Hines returned and fired two shots at the Mercedes Benz. Afterwards, Hines, Robinson, and the other male individual fled the scene.
On Sept. 26, 2013, Hines approached two individuals at a parking lot in Newark, threatened them with a handgun, and demanded the keys to their vehicles. After one of the victims gave Hines the keys to a 2009 Acura sedan, he got into the car and fled.
On the morning of Sept. 27, 2013, Hines was traveling in a dark-colored SUV driven by another individual. The SUV pulled in front of a Range Rover stopped at an intersection in Belleville, New Jersey, blocking the Range Rover’s path. Hines got out of the SUV and pointed a handgun at the driver of the Range Rover. Robinson, who followed the SUV in a separate vehicle, pulled over and stood watch. Hines pulled the driver out of the Range Rover, got into the vehicle and fled, followed by the SUV and Robinson’s vehicle.
In addition to the prison terms, Judge Hayden sentenced both Hines and Robinson to five years of supervised release.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the Newark, Elizabeth, and Belleville police departments with the investigation.
The government is represented by Assistant U.S. Attorney J. Jamari Buxton of the U.S. Attorney’s Office Organized Crime/Gangs in Newark.
Defense Counsel:
Hines: John Yauch Esq., Assistant Federal Public Defender, Newark
Robinson: Paul Condon Esq., Jersey City, New Jersey
Two Individuals Indicted on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Tyrone Pennick, 40, of Amherst, NY, and Geneva Smith, 30, of Buffalo, NY, with conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine. The charge carries a minimum penalty of five years in prison and a maximum of 40 years.
Defendant Pennick is currently charged in a separate federal indictment for his role as the leader of a large-scale cocaine trafficking organization. In June 2014, Pennick was released under the condition of home incarceration.
Assistant U.S. Attorneys Joel L. Violanti and Laura A. Higgins, who are handling the case, stated that according to the indictment, on November 17, 2016, the Erie County Sheriff’s Office conducted surveillance in the area of Pennick’s residence at 489 Emerson Drive in Amherst. Investigators observed a female, later identified as defendant Smith, leaving the residence carrying an open-top, tote style bag and entering a bronze colored Ford Flex.
Investigators continued to monitor the vehicle and noted that Smith began watching the surveillance vehicle closely in the rearview mirror. Smith subsequently began driving in an erratic manor at which point the defendant was observed reaching to the backseat area and moving the tote bag to the front seat. Investigators activated their emergency lights and conducted a traffic stop of the vehicle. Smith was detained and investigators removed what appeared to be two containers containing suspected cocaine from the tote bag.
A search warrant was then executed at Pennick’s residence at 489 Emerson Drive. Investigators recovered a metal press, digital scale, packaging material, a box of rubber gloves, a plastic bag containing disposable dust masks, a vacuum sealer, a vacuum sealed bag containing $49,990 in U.S. currency concealed in the dishwasher and a plastic bag containing suspected cocaine weighing approximately one ounce concealed in a box of oatmeal. Pennick was then arrested.
The indictment is the result of an investigation by the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Two Former Army Officials and Contractor Indicted for Bribery Scheme Involving Contracts at Aberdeen Proving GroundRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment charging John Kays, age 42, his wife, Danielle N. Kays, age 41, both of Bel Air, Maryland, and Matthew Barrow, age 42, of Toledo, Ohio, with conspiracy and bribery charges related to contracting at the U.S. Army Communications-Electronics Command headquartered at Aberdeen Proving Ground (APG), in Harford County, Maryland. The superseding indictment adds Danielle Kays as a defendant, and charges John and Danielle Kays with making false statements on their government ethics forms. The superseding indictment was returned on January 17, 2017, and unsealed today.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
In March 2006, the U.S. Army Contracting Command at APG awarded a 10-year, $19.2 billion contract to seven prime contractors to provide technology services to support the integrated engineering, business operations, and logistics needs for the Army. John and Danielle Kays each had leadership positions related to this contract. From September 2006 through April 2011, a series of task orders for services pursuant to the contract were placed.
According to the seven-count superseding indictment, John and Danielle Kays were civilian employees who represented the Army on these types of multi-year contracts. From January 2011 until his resignation from government service in July 2014, John Kays held the position of Deputy Project Manager for Mission Command, in effect the number two position for Mission Command. From June 2009 through June 2012, Danielle Kays was the Deputy Director of the Technical Management Division, and from 2012 until her resignation from government employment in October 2015, Danielle Kays was the Product Director of Common Hardware Systems. Barrow was the President and owner of MJ-6, LLC, a company which he and his wife formed in Ohio in 2008 to obtain military subcontracts. From June 2008 through August 2010, Barrow was also employed as a procurement manager by a glass company in Ohio.
The superseding indictment alleges that from August 2008 to June 2014, John and Danielle Kays agreed to take official actions favorable to Barrow and MJ-6 in return for Barrow paying them a total of approximately $800,000. Specifically, the Kays used their official positions to add MJ–6 as a subcontractor acceptable to the Army, to steer potential employees for government contractors to work for MJ-6, to approve MJ-6 employees to work on various TOs, and to approve the pay rates, status reports, and travel reimbursements for MJ-6 employees. The indictment alleges that the Kays steered subcontracts worth approximately $21 million to MJ-6.
In order to conceal their corrupt relationship Barrow caused the glass company he worked for to purportedly enter into contracts and make payments to Transportation Logistics Services, LLC, a company incorporated by John Kays; and later made payments to the Kays in cash, which Barrow allegedly withdrew from his personal accounts and from MJ-6 accounts. According to the superseding indictment, Barrow withdrew the money in amounts less than $10,000 to avoid bank reporting requirements. To further conceal the scheme, the superseding indictment alleges that John and Danielle Kays made false statements on the government ethics forms that they were required to file by failing to disclose the cash payments received from Barrow. According to the superseding indictment, the Kays used the cash for their personal benefit, including: purchasing two new vehicles; a power boat, jewelry, a pool party at their country club, and to pay credit card bills.
John Kays, Danielle Kays, and Barrow each face a maximum sentence of five years in prison for conspiracy, and a maximum of 15 years in prison for bribery, $250,000 per count in criminal fines or three times the value of whatever the Kays were illegally paid, plus forfeiture of the proceeds of the offense. John and Danielle Kays both face a maximum of five years in prison for each of two counts of making false statements. The court has entered an order restraining assets of the Kays in Harford County including real estate, a Nissan Armada, a 2012 BMW, a 2012 Yamaha power boat and a pair of diamond earrings. An order has also been entered restraining the assets of Barrow in Toledo, including, two pieces of real estate, a 2016 GMC Yukon, 2015 Buick Enclave, a 2011 GMC Yukon Denali, a power boat, a Wave Runner and funds in three bank accounts.
Kays will have her initial appearance in U.S. District Court in Baltimore on Friday, January 23, 2017, at 11 a.m. before U.S. Magistrate Judge A. David Copperthite. No court appearance has been scheduled yet for John Kays and Matthew Barrow.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein thanked the DCIS, Army Criminal Investigation Command, and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Joyce K. McDonald and Harry M. Gruber, who are prosecuting the case.
Three Individuals Arrested and Charged for Drug-Related Murder in the BronxRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today charges against three individuals, SEAN PETER, a/k/a “Huggie,” JASON CAMPBELL, a/k/a “Holiday,” a/k/a “Fish,” and STEVEN SYDER, a/k/a “Esteban,” in connection with the drug-related murder of 19-year-old Brian Gray in the Bronx on October 2, 2012. PETER, CAMPBELL, and SYDER were arrested today and will be presented before Magistrate Judge James C. Francis IV. The case has been assigned to United States District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara stated: “The defendants are charged with shooting and killing a young man on the streets of the Bronx to further their alleged narcotics business. Drug-related violence threatens the safety and security of all New Yorkers, and we will continue to make our streets and neighborhoods safe. We commend our partners at the FBI and NYPD for the exemplary work that led to the charges brought today.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. stated: “Drug dealers use violence and intimidation to assert their dominance over others they see as potential rivals in their territory. That violence often results in someone being shot and killed, and the community more fearful that the violence won’t stop. The FBI/NYPD Violent Crimes Task Force works day after day to prevent these criminals from returning to the streets, and to stop the cycle of crime.”
NYPD Commissioner James P. O’Neill stated: “I commend the efforts of the detectives and prosecutors whose hard work resulted in the arrest of three defendants, charged in this homicide. The NYPD will continue to target those who mar our communities with drugs and violence, ensuring that those responsible are brought to justice.”
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
In 2012, PETER, CAMPBELL, and SYDER conspired to distribute and possess with intent to distribute marijuana. On October 2, 2012, PETER, CAMPBELL, and SYDER participated in the killing of Brian Gray by shooting him in furtherance of that marijuana distribution conspiracy. The murder took place in the vicinity of 3309 Barker Avenue in the Bronx, New York.
Count One charges PETER, CAMPBELL, and SYDER with conspiring to distribute and possess with intent to distribute marijuana, which carries a maximum sentence of five years in prison.
Count Two charges PETER, CAMPBELL, and SYDER with using a firearm to murder Gray in connection with the marijuana distribution conspiracy, which carries a maximum sentence of death, or life in prison.
Count Three charges PETER, CAMPBELL, and SYDER with brandishing and discharging a firearm in connection with the marijuana distribution conspiracy, which carries a maximum sentence of life in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the Court.
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PETER, 33, CAMPBELL, 30, and SYDER, 33, are all of the Bronx, New York.
Mr. Bharara praised the outstanding investigative work of the FBI-NYPD Joint Bank Robbery/Violent Crimes Task Force. He also thanked the Teaneck, New Jersey, Police Department for all of their assistance and support in the ongoing investigation.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Sagar K. Ravi, Michael Gerber, and Hadassa Waxman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
St. Anthony Man Indicted for Unlawful Distribution of TramadolRead the Press Release
POCATELLO – Paul Allen, 61, of St. Anthony, Idaho, was indicted January 24, 2017, by a federal grand jury in Pocatello on three counts of unlawful distribution of a controlled substance, U.S. Attorney Wendy J. Olson announced.
The indictment alleges that on or about March 12, 2016, March 19, 2016, and April 2, 2016, Allen distributed Tramadol, a Schedule IV controlled substance, without lawful authorization.
A charge of unlawful distribution of a controlled substance is punishable by up to 20 years in prison, a maximum fine of $1,000,000, and at least three years of supervised release. The government also is seeking forfeiture of the proceeds involved in the offense.
The case was investigated by the Fremont County Sheriff’s Office, and the Drug Enforcement Administration.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South Carolina Man Sentenced to Federal Prison for Drug Dealing, Shooting Police OfficerRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Tray Jabari Graves, age 29, of Garnett, South Carolina was sentenced today in federal court in Charleston, South Carolina, for conspiracy to distribute crack cocaine and cocaine, and discharging a firearm in furtherance of a drug trafficking crime. Senior United States District Judge Margaret B. Seymour of Charleston sentenced Graves to twenty-eight years imprisonment, to be followed by ten years supervised release.
Evidence presented at the change of plea hearing established that law enforcement conducted multiple undercover crack and cocaine purchases from Graves and other co-conspirators. On June 17, 2015, federal agents executed search warrants at Graves’ residence, as well as his mother’s residence which Graves used to conduct drug trafficking. When the Beaufort County Sheriff’s Office SWAT team made entry into Graves’ residence, Graves shot Sgt. Mark Cobb of the SWAT team in the shoulder as officers opened Graves’ bedroom door. After Graves was apprehended, agents recovered approximately 33 grams of crack cocaine, a kilogram of cocaine, three firearms, a drum magazine loaded with eighty-one rounds of ammunition, a money counter and over $6,500 from Graves’ bedroom. Agents also recovered approximately 73 grams of crack cocaine, 214 grams of cocaine and 4 firearms from Graves’ mother’s residence.
Following Graves’ sentencing, United States Attorney Beth Drake stated, “Drug dealers armed with firearms put our community and our officers at risk as this case demonstrates. Fortunately, Sgt. Cobb has recovered physically. We extend our most sincere thanks to the officers who protect and serve, most particularly Sgt. Cobb and the Beaufort County Sheriff’s Office SWAT team that made the arrest in this case.” Jason Sandoval, Resident Agent in Charge of the Drug Enforcement Administration (“DEA”) Charleston Office added, “violence in our community is often perpetrated by the same organizations distributing drugs. The Tray Graves case is a telling and unfortunate example of a young man who made a choice to be a violent criminal. Most disturbing among his felonious actions, Mr. Graves’ conduct could have cost a dedicated and honorable law enforcement officer his life. Rule of law and justice have prevailed, however. As a consequence, Mr. Graves will spend most of the next three decades in federal prison for violence and poison sown by his hand in the community.”
The case was investigated by agents of the DEA and the Beaufort County Sheriff’s Office. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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Smith County Man Sentenced for East Texas Drug TraffickingRead the Press Release
TYLER, Texas – A 46-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston.
Chad Hollowell pleaded guilty on Sep. 24, 2015, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 151 months in federal prison today by U.S. Fifth Circuit Court of Appeals Judge Catharina Haynes. Hollowell was also ordered to forfeit approximately $10,000 cash and multiple firearms.
According to information presented in court, in 2014, Hollowell and others trafficked more than 500 grams of methamphetamine through the Eastern District of Texas. Hollowell was indicted by a federal grand jury on Mar. 18, 2015 and charged with drug trafficking crimes.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Canton Police Department and was prosecuted by Assistant U.S. Attorney Frank Coan.
Sedalia Man Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Sedalia, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Darrick Thomas Brown, 38, of Sedalia, was sentenced by U.S. District Judge Brian C. Wimes to seven years in federal prison without parole.
On Aug. 10, 2016, Brown pleaded guilty to being a felon in possession of a firearm. Brown admitted that he was in possession of a Hi-Point .40-caliber pistol on Feb. 28, 2016.
According to court documents, Pettis County Sheriff’s deputies were called to a Super 7 Motel in Sedalia on Feb. 28, 2016, in response to a report that shots were fired. Deputies encountered Brown coming out of a motel room and observed a gun lying on the floor inside the bedroom. Deputies found evidence indicating that a gun had been fired twice inside the room. One bullet travelled through a microwave oven and entered the bedroom wall; the other bullet struck the top of the entertainment center. Brown’s girlfriend’s two young children occupied the adjacent room.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brown has prior felony convictions for distributing controlled substances, failure to appear in court, leaving the scene of an accident, resisting/interfering with an arrest, assault, possessing a controlled substance and endangering the welfare of a child.
Brown was on state parole when he committed this federal offense. According to court documents, Brown has ties with a Sedalia street gang and is an active member of that gang. Brown has a history of substance abuse, including extensive use of marijuana, cocaine and methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pettis County, Mo., Sheriff’s Department.
Rusk County Man Sentenced for East Texas Drug TraffickingRead the Press Release
TYLER, Texas – A 32-year-old Laneville, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Joshua Lyle Harned pleaded guilty on Mar. 15, 2016, to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking crimes. Harned was sentenced to 147 months in federal prison today by U.S. Fifth Circuit Court of Appeals Judge Catharina Haynes.
According to information presented in court, on Oct. 16, 2014, law enforcement officers went to Harned’s residence in Rusk County t the request of Texas Child Protective Services and found him in possession of a pistol. Harned admitted to being in possession of methamphetamine. A search of the residence revealed 214 grams of methamphetamine, drug paraphernalia and multiple additional firearms. Harned had $2,657 in cash on him at the time. Harned admitted to making at least $20,000 from the delivery of methamphetamine between January 2014 and May 2015. Harned was arrested by the U.S. Marshals Service on July 20, 2015 in Bear Creek, AL. At the time of his arrest, Harned was in possession of methamphetamine and firearms. Harned was indicted by a federal grand jury on Aug. 19, 2015 and charged with drug trafficking crimes.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Rusk County Sheriff’s Office and the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Jim Noble.
Ranking Nashville Gang Member Pleads Guilty to Gun and Robbery ChargesRead the Press Release
Deunta Finch aka LT, 27, of Nashville, Tennessee, pleaded guilty yesterday in U.S. District Court to being a felon in possession of a firearm and ammunition; attempting to commit a robbery affecting interstate commerce; and to possessing and discharging a firearm in that attempted robbery, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
According to the statement of facts, Finch was a ranking member of the Athens Park Bloods street gang and had multiple, previous state felony convictions, including two convictions for being a felon in possession of firearms, a conviction for robbery and a conviction for reckless endangerment with a weapon. As a convicted felon, Finch was prohibited from possessing firearms or ammunition.
The statement of facts outlines that on June 21, 2015, Finch brandished a firearm and stole another firearm from a juvenile, while in the J.C. Napier public housing development. Two days later, Finch was riding in a car with another juvenile and became involved in a shootout with the occupants of another vehicle. Finch was injured in the shootout, but left the scene and was later located and transported to a local hospital for treatment. After treatment, he was arrested on outstanding state warrants and then bonded out of custody. Finch failed to appear in court as required and was arrested by Metro Nashville SWAT officers in another car on November 12, 2015. A 9mm pistol was recovered from the glove compartment of that car during this arrest. Ballistics evidence revealed that the recovered firearm had been used one week earlier, on November 5, 2015, in a drug related shooting, in which Finch robbed a drug dealer in the Lexington Garden Apartments in Madison, Tennessee. His intended victim resisted, and Finch shot and severely wounded the victim. Finch then left the area with a quantity of cocaine which he took from his victim.
The plea agreement calls for Finch to be sentenced to 15 years in prison, to be followed by five years of supervised release. Finch will be sentenced on May 15, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department, Gang Division. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Owner of Offshore Brokerage Firm Sentenced to Prison for Role in International Money LaunderingRead the Press Release
A Canadian citizen and permanent resident of Costa Rica was sentenced today to 48 months in prison for his role in an international money laundering conspiracy in connection with international “pump and dump” securities fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Timothy Slater of the FBI’s Washington Field Office Criminal Division made the announcement.
Michael J. Randles, 49, was sentenced by U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia. In October 2016, Randles pleaded guilty to one count of money laundering conspiracy.
According to admissions made in connection with his plea agreement, Randles controlled and operated an offshore brokerage and money laundering platform located in San Jose, Costa Rica, that went by various names, including Moneyline Brokers, Sandias Azucaradas, and Trinity Asset Services (collectively Moneyline) with his co-conspirator Harold Bailey Gallison II. Randles admitted that the purpose of Moneyline was to trade securities, primarily microcap or “penny stocks,” through U.S. and offshore accounts. While managing Moneyline’s Costa Rica office, Randles exercised authority over banking and financial transactions; operated Moneyline’s unregistered securities business in Europe; and opened U.S. and offshore brokerage and bank accounts, including in Europe and elsewhere, that were used to facilitate the conspiracy. Randles admitted that Moneyline often did business under the names of various shell companies to conceal both the true source and ownership of the securities and the flow of the funds.
Further, in connection with his plea, Randles admitted that Moneyline laundered approximately $1 million in proceeds from the pump and dump of the Colorado-based company Bryn Resources Inc. While Bryn Resources purported to be engaged in the mining and exploration of precious metals in Canada, in reality, Bryn was a shell company with no or nominal operations or assets. During the promotion of Bryn Resources, over 3.5 million shares of the company were liquidated through Moneyline accounts, generating the proceeds that were laundered through Moneyline accounts in the United States and overseas.
Three of Randles’s co-conspirators, Gallison, Ann Marie Hiskey and Roger G. Coleman, previously pleaded guilty in the case. Gallison was sentenced to serve 216 months in prison; Hiskey and Coleman were each sentenced to two years’ probation.
FBI’s Washington Field Office investigated the case. Senior Trial Attorney N. Nathan Dimock and Trial Attorney Michael O’Neill of the Criminal Division's Fraud Section and Assistant U.S. Attorney Grace L. Hill of the Eastern District of Virginia prosecuted the case. The Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Criminal Division’s Office of International Affairs also provided significant assistance.
Owner of Offshore Brokerage Firm Sentenced for Money LaunderingRead the Press Release
ALEXANDRIA, Va. – Michael J. Randles, 49, a Canadian citizen and permanent resident of Costa Rica, was sentenced today to 48 months in prison for his role in an international money laundering conspiracy in connection with international “pump and dump” securities fraud scheme.
This sentence takes into account 11 months of detention Randles served in Spain while contesting extradition to the United States, for which Randles will receive no further credit. The Court also ordered a 3-year term of supervised release, full restitution, and forfeiture.
According to admissions made in connection with his plea agreement, Randles controlled and operated an offshore brokerage and money laundering platform located in San Jose, Costa Rica, that went by various names, including Moneyline Brokers, Sandias Azucaradas, and Trinity Asset Services (collectively Moneyline) with his co-conspirator Harold Bailey Gallison II. Randles admitted that the purpose of Moneyline was to trade securities, primarily microcap or “penny stocks,” through U.S. and offshore accounts. While managing Moneyline’s Costa Rica office, Randles exercised authority over banking and financial transactions; operated Moneyline’s unregistered securities business in Europe; and opened U.S. and offshore brokerage and bank accounts, including in Europe and elsewhere, that were used to facilitate the conspiracy. Randles admitted that Moneyline often did business under the names of various shell companies to conceal both the true source and ownership of the securities and the flow of the funds.
Further, in connection with his plea, Randles admitted that Moneyline laundered approximately $1 million in proceeds from the pump and dump of the Colorado-based company Bryn Resources Inc. While Bryn Resources purported to be engaged in the mining and exploration of precious metals in Canada, in reality, Bryn was a shell company with no or nominal operations or assets. During the promotion of Bryn Resources, over 3.5 million shares of the company were liquidated through Moneyline accounts, generating the proceeds that were laundered through Moneyline accounts in the United States and overseas.
Three of Randles’s co-conspirators, Gallison, Ann Marie Hiskey and Roger G. Coleman, previously pleaded guilty in the case. Gallison was sentenced to serve 216 months in prison; Hiskey and Coleman were each sentenced to two years’ probation.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Kenneth A. Blanco, Acting Assistant Attorney General of the Justice Department’s Criminal Division; and Timothy Slater, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Grace L. Hill and Senior Trial Attorney N. Nathan Dimock and Trial Attorney Michael O’Neill of the Criminal, Division’s Fraud Section prosecuted the case. The Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Criminal Division’s Office of International Affairs also provided significant assistance.
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. 1:15-cr-178.
Ohio Woman Sentenced to Five Years in Prison for Conspiring to Exploit Foreign Workers at Minnesota FarmRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of SANDRA LEE BART, 69, to five years in prison for requiring foreign workers on temporary H-2A work visas to pay illegal fees and kickbacks. BART was found guilty by a jury of conspiring with others to commit fraud.
Co-defendant WILIAN SOCRATE CABRERA pleaded guilty on July 14, 2016, to conspiracy to commit fraud in foreign labor contracting, and co-defendant JOHN JAMES SVIHEL pleaded guilty on June 16, 2016, to conspiracy to commit fraud in foreign labor contracting and agreed to pay more than $974,000 in restitution, unpaid wages, and a forfeiture money judgment.
“The Diplomatic Security Service is pleased with the success of this case. This shows the positive outcome when federal agencies work together to stop criminals from exploiting U.S. visas and foreign workers for illegal profit,” said Diplomatic Security Service’s Minneapolis Resident Agent-In-Charge Daniel Bleakmore. “We’re committed to investigating U.S. business operators who cause criminal visa applications at overseas U.S. Embassies and Consulates.”
As proven at trial, from 2008 to May of 2015 BART and CABRERA operated an unregistered business called “Labor Listo,” which they used to recruit employers like SVIHEL, who ran Svihel Vegetable Farm in Foley, Minn., to hire seasonal workers from the Dominican Republic on temporary work visas. The visa programs require employers to pay for workers’ housing and travel expenses to and from their home country, and forbid employers from collecting recruitment fees or wage kickbacks. BART, CABRERA, and SVIHEL violated all of these rules.
As proven at trial, CABRERA charged the workers a one-time recruitment fee of between $420 and $2,385, as well as an annual fee of $374, which he split with BART. The workers were told that if they didn’t pay the fees they would not be allowed to return for the following growing season. At the end of each season, SVIHEL collected a percentage of the workers’ wages along with full reimbursement from the workers for their flights. BART, CABRERA, and SVIHEL were clearly using the program to profit from the workers. “Costs – pass on to applicant,” was written on a business plan from a 2008 Labor Listo meeting between BART and CABRERA.
As proven at trial, BART and CABRERA recruited SVIHEL in 2010 to hire four Dominican workers using the H-2A visa program, which provides temporary visas to agriculture workers, falsely telling him that a church in the Dominican Republic would pay for workers’ airfares for the first year. When the wage Svihel was required to pay the workers was increase from $9.75 per hour to $10.62 per hour in 2011, SVIHEL expressed hesitation in continuing to use the program. BART told SVIHEL that the workers would be willing to pay wage and airfare kickbacks to make up the difference. Over three farming seasons, SVIHEL kept a total of more than $200,000 in kickbacks and spent it on travel and leisure expenses.
As proven at trial, when BART learned there was an investigation into the working conditions at Svihel Farm, she tried to have CABRERA talk the workers into signing a document retracting any statements they made to the Department of Labor about illegal fees. SVIHEL and BART exchanged a list of workers, labeling the workers “G” for good or “B” for bad, based on which workers they thought had spoken to the Department of Labor. The workers labeled “bad” were sent back to the Dominican Republic first in the 2014 season and were not invited back in 2015.
This case is the result of an investigation conducted by the U.S. Department of State Diplomatic Security Service, U.S. Department of Labor Wage and Hour Division, U.S. Department of Labor Office of the Inspector General, and the Homeland Security Investigations Document and Benefit Fraud Task Force.
This case is being prosecuted by Assistant United States Attorneys and Manda Sertich and David Maria.
Defendant Information:SANDRA LEE BART, 69
Seven Hills, OhioConvicted: • Conspiracy to commit false swearing in an immigration matter, 1 count
• Conspiracy to commit fraud in foreign labor contracting, 1 count
• Conspiracy to commit wire and mail fraud, 1 countSentenced: • Five years in prison
WILIAN SOCRATE CABRERA, 44
Dominican RepublicConvicted: • Conspiracy to commit fraud in foreign labor contracting, 1 count
Sentenced: • 26 months in prison
JOHN JAMES SVIHEL, 53
Foley, Minn.Convicted: • Conspiracy to commit fraud in foreign labor contracting, 1 count
Sentenced: • Six months in prison
Ninth Ward Heroin Dealer Pleads Guilty to Conspiracy ChargeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that COREY CELESTINE, age 33, pled guilty today to participating in a heroin distribution conspiracy in the lower Ninth Ward of New Orleans. CELESTINE pled guilty to conspiracy to distribute one kilogram or more of heroin.
According to court documents, CELESTINE conspired with ULYESSE SANTIAGO, CLARENCE PETER SANTIAGO, DWAYNE SMOTHERS, and others to sell heroin near Bonart Park in New Orleans’ lower Ninth Ward. During the course of this investigation, agents performed several controlled purchases of heroin from CELESTINE, and he was subsequently arrested with $13,000 in cash. The investigation, led by the U.S. Drug Enforcement Administration, began in 2013 and resulted in the arrest of ten individuals in New Orleans, Terrebonne Parish, Jefferson Parish, and Texas.
CELESTINE faces a minimum of 10 years of imprisonment and a maximum of life imprisonment, a fine of up to $10,000,000 and at least five years of supervised release. His codefendants, ULYESSE SANTIAGO, CLARENCE PETER SANTIAGO, and DWAYNE SMOTHERS, have all previously entered guilty pleas in this matter. All three codefendants are scheduled for sentencing on February 22, 2017. U.S. District Judge Martin L.C. Feldman set sentencing for CELESTINE on May 17, 2017.
U.S. Attorney Polite praised the work of the DEA New Orleans Division Office, along with the assistance from the FBI New Orleans Field Office, the New Orleans Police Department, the Terrebonne Parish Sheriff’s Office, and the Louisiana State Police in investigating this matter. Assistant United States Attorney Matthew Payne is in charge of the prosecution.
New Orleans Man Sentenced for Conspiracy to Commit Federal Bribery and Honest Services Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LESTER MORNAY, 68, of New Orleans, was sentenced today after previously pleading guilty to a one-count Bill of Information charging him with conspiracy to commit bribery and honest services wire fraud.
U.S. District Judge Martin L.C. Feldman sentenced MORNAY to one year of probation and a $100 special assessment. Additionally, MORNAY was ordered to participate in the Rise and Recovery Program.
According to court records, beginning in September 2013 and continuing until January 2015, MORNAY and several others participated in a conspiracy to commit bribery and honest services wire fraud. Court records indicate that IRA THOMAS, in his role as an Orleans Parish School Board (“OPSB”) Member, engaged in a scheme to defraud Orleans Parish and its citizens of his honest services through bribery and a kickback scheme, whereby THOMAS used his public office and official capacity to provide favorable treatment, including attempting to facilitate the awarding of a contract, that was designed to benefit the business and financial interest of an individual who provided him with a bribe and kickback in the form of cash payment disguised as a campaign contribution.
Additionally, court records show that in September 2013, a cooperating witness (“CW”) was approached by ARMER BRIGHT, an OPSB employee, who offered the CW a janitorial services contract that would soon be up for bid by the OPSB in exchange for a monetary payoff. During the fall of 2013, the CW, THOMAS, BRIGHT, and at times MORNAY, met to discuss this contract. These conversations were recorded by the CW with the assistance of the FBI. Ultimately, it was decided that the CW would pay $5,000 to THOMAS in the form of a “campaign contribution” in exchange for THOMAS’ and the OPSB employee’s assistance regarding the janitorial services contract. In December 2013, the CW delivered $5,000 in cash to MORNAY acting as a conduit for THOMAS, which was video recorded. This money was then delivered to THOMAS. During the fall of 2014, THOMAS and BRIGHT discussed over recorded telephone conversations how to alter the bid process so that the CW would be given an improper advantage in bidding for the janitorial services contract, which was valued over $5,000.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Sean Toomey was in charge of the prosecution.
New Bedford Gym Owner Sentenced for Heroin TraffickingRead the Press Release
BOSTON – The owner of a New Bedford gym was sentenced yesterday in U.S. District Court in Boston in connection with a wide-ranging conspiracy involving heroin distribution throughout Bristol County, Mass. and Providence, R.I.
Sharik Mendes, 39, of New Bedford, was sentenced by U.S. District Court Judge Douglas Woodlock to 30 months in prison. In October 2016, he pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute heroin.
In 2015 and 2016, Mendes, the owner and operator of the HEART gym in New Bedford, was receiving large quantities of heroin from two suppliers based in Rhode Island. Mendes then distributed the heroin to lower-level distributors in the New Bedford area. In total, Mendes accepted responsibility for conspiring to distribute between 600 and 700 grams of heroin.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Fall River Police Chief Daniel S. Racine; and New Bedford Police Chief Joseph C. Cordeiro, made the announcement. Assistant U.S. Attorney Eric S. Rosen of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Minneapolis Man Sentenced for Human Trafficking of a MinorRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on January 24, 2017, Steven Edward Meierding, 50, Minneapolis, Minn., was sentenced before US District Judge Ralph R. Erickson to serve 10 years in prison for Sex Trafficking of a Child. Judge Erickson also sentenced Meierding to serve 15 years of supervised release and pay a $100 special assessment to the Crime Victims’ Fund, and must register as a sex offender.
This case came to the attention of law enforcement after the Fargo Police Department encountered a 17-year-old runaway during a traffic stop. Further investigation by Department of Homeland Security Investigators and a Fargo Police Department Detective revealed that Meierding transported the 17-year-old girl from Minneapolis, MN, to Fargo, ND, for the purpose of prostitution. Specifically, Meierding met the 17-year-old girl at a gas station in Minneapolis and subsequently took her to his residence where he took photos of her that were later used in Backpage.com advertisements for commercial sex. Sometime between May 2015 and June 15, 2015, Meierding then transported the underage girl to Fargo where he dropped her off at a residence where his co-defendant, Brenda Godoy, was residing. Meierding returned to Minneapolis, but before he could return to Fargo to pick up the underage girl, she was recovered by the Fargo Police Department during the above-mentioned traffic stop. Electronic evidence recovered during the investigation further revealed that Meierding and his co-defendant received a portion of the proceeds that the underage girl obtained as a result of engaging in commercial sex acts.
This case was investigated by the Department of Homeland Security-Homeland Security Investigations, Fargo Police Department, and the North Dakota Bureau of Criminal Investigation.
Assistant US Attorney Jennifer Puhl prosecuted the case.
This case was prosecuted with the assistance of the North Dakota Human Trafficking Task Force (NDHTTF), which includes regional response teams that consist of federal, state, and local law enforcement and victim service providers working together to identify and rescue human trafficking victims as well as investigate and prosecute human trafficking cases. Led by the U.S. Attorney’s Office, BCI, and the North Dakota Counsel on Abused Women Services (CAWS), the NDHTTF is dedicated to addressing the individualized needs of human trafficking victims and the apprehension, investigation, and prosecution of the perpetrators of human trafficking.
Middlesex County, New Jersey, Man Gets over Three Years in Jail for Particpating in International $200 Million Credit Card ScamRead the Press Release
TRENTON, N.J. – An Iselin, New Jersey, man was sentenced today to 46 months in prison for his role in one of the largest credit card fraud schemes ever charged by the U.S. Department of Justice, U.S. Attorney Paul J. Fishman announced.
Babar Qureshi, 63, previously pleaded guilty before U.S. District Judge Anne E. Thompson to Count One of an indictment charging him with conspiracy to commit bank fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Qureshi was originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; and finally, run up large loans.
The scope of the criminal fraud enterprise required Qureshi and other conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
Qureshi’s role in the conspiracy was to take the phony cards and charge large amounts at complicit merchants, who would then pay him a portion of the charge. He used phony bank accounts to conceal his involvement and receive proceeds from the fraud, which he used for personal expenses, including his mortgage.
In addition to the prison term, Judge Thompson sentenced Qureshi to five years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked postal inspectors under the direction of Inspector in Charge James V. Buthorn, the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, and the U.S. Social Security Administration, Office of the Inspector General, for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Daniel Shapiro and Deputy Chief Zach Intrater of the U.S. Attorney’s Office’s Economic Crimes Unit, and Sarah Devlin of the Assert Forfeiture and Money Laundering Unit.
Defense counsel: Alexander Spiro Esq., New York
Marion County man pleads guilty to unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Duane Jabbar Martin, 31, of Rivesville, West Virginia, was convicted for unlawful possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Martin, who had previously been convicted of a felony offense in Marion County, is prohibited from possessing a firearm. He admitted to possessing a 9mm semi-automatic handgun in April 2016.
Martin pled guilty to one count of “Unlawful Possession of a Firearm.” 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 Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Marion County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Marine Pilot Sentenced for Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 44-year-old Corpus Christi man has been sentenced to federal prison for possessing child pornography, announced U.S. Attorney Kenneth Magidson. Jason Michael Ehret, an active duty Marine Corps major serving as an aviation flight instructor, pleaded guilty Nov. 15, 2016.
Today, Senior U.S. District Judge Janis Graham Jack handed Ehret a sentence of 87 months in federal prison. He was further ordered to pay a $10,000 fine and will serve the rest of his life on supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
At the time of the plea, the court heard that authorities used peer-to-peer software and were able to successfully download various files containing child pornography from an IP address that was associated with Ehret.
In March 2016, agents executed a search warrant at Ehret’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 180 images and approximately four videos of child pornography. Authorities also discovered more than 570 images of child erotica.
Ehret was arrested on the federal charges in September 2016 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Naval Criminal Investigative Service and the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Manhattan U.S. Attorney Charges Two Individuals in $17 Million Real Estate ScamRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Patricia Tarasca, the Special Agent-in-Charge of the New York Region for the Federal Deposit Insurance Corporation Office of Inspector General (“FDIC-OIG”), announced the unsealing today of an indictment charging ISSAK ALMALEH, a/k/a “Issak Izrael,” and ANTOANETA IOTOVA with conspiracy to commit bank fraud, bank fraud, wire fraud, and making false statements to the FDIC, in connection with a wide-ranging scheme to falsely claim ownership of more than $17 million worth of property in New York and Florida. As alleged, ALMALEH and IOTOVA used forged documents to claim ownership of real estate in New York and Florida, and then used those real estate documents to victimize individuals and tenants. ALMALEH and IOTOVA were arrested today in Hollywood, Florida, and will be presented later today in federal court in Fort Lauderdale, Florida. The case is assigned to Chief U.S. District Judge Colleen McMahon.
Manhattan U.S. Attorney Preet Bharara said: “Issak Almaleh and Antoaneta Iotova allegedly forged documents to falsely claim ownership over $17 million of property in New York and Florida. As alleged, the defendants’ brazen scheme led to at least one victim being wrongfully evicted from the victim’s own home and others signing leases and paying deposits to the defendants for homes the defendants did not actually own. Thanks to the work of the FDIC Office of Inspector General, the defendants’ alleged frauds have now been foreclosed.”
FDIC Special Agent-in-Charge Patricia Tarasca said: “The FDIC Office of Inspector General is committed to investigating allegations of fraudulent activity that threatens to harm FDIC-insured financial institutions. Our office worked vigorously to uncover the details of this alleged real estate foreclosure scam to ensure integrity in the banking industry and hold guilty parties accountable.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court[1]:
The Scheme to Defraud Banks
From at least 2012, ALMALEH and IOTOVA have filed fraudulent and forged property deeds purporting to transfer ownership of more than 40 real properties located in New York City and the greater Miami, Florida, area, with a combined estimated market value in excess of $17 million, to entities controlled by ALMALEH and IOTOVA, specifically, New York Sport Foundation, New York Mortgage Corporation, and Women in International Relations, Inc.
ALMALEH and IOTOVA identified properties that had been subject to foreclosure, and were owned by financial institutions insured by the FDIC. ALMALEH and IOTOVA then filed fraudulent and forged warranty deeds that supposedly reflected the transfer of these properties from the financial institutions to entities controlled by ALMALEH and IOTOVA for a nominal sum. ALMALEH, who was a commissioned notary, would notarize the documents as genuinely signed by representatives of the financial institutions. IOTOVA would sign the documents on behalf of the entities controlled by the defendants.
In furtherance of their scheme, in 2015, ALMALEH and IOTOVA also submitted a false application for FDIC insurance and certification, seeking to have the FDIC certification of an FDIC-insured bank (“Bank-1”) transferred to their control.
The Scheme to Defraud Individuals
After ALMALEH and IOTOVA filed deeds purporting to transfer ownership of the properties, ALMALEH and IOTOVA used the deeds to victimize other individuals. On at least one occasion, in 2015, ALMALEH and IOTOVA evicted a bona fide purchaser (“Victim-1”) from a property in Hollywood, Florida (“Property-1”), that had been falsely claimed by ALMALEH and IOTOVA. Using a fraudulent deed indicating that Victim-1’s property belonged to New York Mortgage Corporation, ALMALEH, using the name “Issak Izrael,” and IOTOVA obtained the assistance of the local police in temporarily evicting Victim-1 from Victim-1’s residence. ALMALEH and IOTOVA proceeded to change the locks to the doors on Property-1, until an emergency court hearing permitted Victim-1 to remain in residence at Property-1.
On another occasion, in 2016, ALMALEH and IOTOVA used documents falsely claiming ownership of a property in Hallandale Beach, Florida (“Property-2”), in order to defraud consumers into falsely entering into lease agreements for Property-2. Two victims (“Victim-2” and “Victim-3”) separately responded to an online advertisement indicating that the units in Property-2 were available for rent. Victim-2 and Victim-3 met with IOTOVA and entered into lease agreements for the units in Property-2. The lease agreements were signed by ALMALEH. In addition to signing a lease agreement, Victim-2 provided IOTOVA with $2,000 in cash, and Victim-3 provided IOTOVA with $900 in cash. A few days later, however, the locks on the doors at Property-2 were changed, and Victim-2 and Victim-3 were notified by the financial institution that was the true owner of Property-2 (“Bank-2”) that their lease agreements were invalid and that they would have to vacate Property-2.
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ALMALEH, 63, and IOTOVA, 51, of Hollywood, Florida, are each charged with one count of conspiracy to commit bank fraud, one count of bank fraud, and one count of making false statements to the FDIC, each of which carries a maximum sentence of 30 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the FDIC Office of Inspector General. Mr. Bharara also thanked the New York City Sheriff’s Office, the Hollywood, Florida, Police Department, the Broward County Sheriff’s Department, and the Broward County Property Appraiser’s Office for their assistance in the investigation. Mr. Bharara noted that the investigation remains ongoing.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to http://www.usdoj.gov/usao/nys/victimwitness.html.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys David W. Denton Jr. and Robert Sobelman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Who Used Play Station 3 to Hide Child Pornography Trading Sentenced to 17 Years in Federal PrisonRead the Press Release
DENVER – Allen LeRoy Simons, III, age 36, of El Paso County was sentenced on January 25, 2017 by U.S. District Court Judge William J. Martinez to serve 204 months (17 years) in federal prison for possession of child pornography, followed by 30 years on supervised release, Acting U.S. Attorney Bob Troyer, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Denver Division Acting Special Agent in Charge John Eisert, and Internet Crimes Against Children (ICAC) Commander for Colorado Lieutenant Christina Sheppard of the Colorado Springs Police Department announced.
Because Simons served three years in the Colorado Department of Corrections, Judge Martinez gave the defendant credit for 36 months (3 years), reducing the federal sentence to 168 months (14 years) in federal prison. In addition, the judge ordered the defendant to pay $27,000 in restitution payable to victims whose pictures was actively traded by the defendant with other like-minded individuals.
Simons was indicted by a federal grand jury on May 3, 2016. He pled guilty on August 1, 2016, and was sentenced on January 25, 2017. At the time he was indicted by the federal grand jury, the defendant was on state probation for the sexual exploitation of a child.
According to court documents, including the stipulated facts in the defendant’s plea agreement, the defendant traded thousands of child pornography images via email. He also graphically discussed the sexual abuse of children in these emails. Law enforcement determined that Simons had over well over 10,000 images and videos of child pornography.
During sentencing, Judge Martinez noted the lengthy prison sentence was due to Simons large collection of child pornography, the fact that he had collected these images for a number of years, and that he took steps to hide his involvement. The defendant used a Play Station 3 to access the internet and trade child pornography, hiding his illegal conduct from state probation and other authorities.
This case was investigated by the Colorado Springs Police Department and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI).
Simons was prosecuted by Assistant U.S. Attorney Valeria Spencer.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man Sentenced to 24 ½ Years in Prison on Kidnapping, Witness Tampering and Firearms OffensesRead the Press Release
CHARLOTTE, N.C. B Today, U.S. District Judge Robert J. Conrad, Jr. sentenced Lonnie Cecil Buchanan, Jr., 47, of Monroe, N.C. to 294 months in prison on kidnapping, witness tampering and firearms offenses, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Conrad also ordered Buchanan to serve five years of supervised release after he completes his prison term. Buchanan pleaded guilty to the charges in April 2012, following nearly two days of trial testimony.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Chief J. Bryan Gilliard of the Monroe Police Department and Sheriff Jay L. Brooks of the Chesterfield County Sheriff’s Office in South Carolina.
According to filed court documents and evidence presented at trial, on February 26, 2012, Buchanan, while holding a firearm, approached a female victim at the Hilltop shopping center parking lot in Monroe, N.C. Witnesses at trial described the victim’s “blood curdling screams” as she ran to her vehicle in an attempt to get away from Buchanan. Buchanan chased the victim and jumped into her car. Witnesses testified at trial that Buchanan and the victim violently struggled in the car until the victim was knocked unconscious. Buchanan then dragged the victim to a van he had parked nearby. Witnesses at trial testified that Buchanan stood over the victim with his hand on her throat and when he noticed other people around him he told the victim that he “was going to take her to the hospital.”
Witnesses testified that Buchanan lifted the victim from the ground and placed her on the floor of the van. Witnesses also testified that Buchanan passed the hospital and drove the victim into Chesterfield County in South Carolina. According to trial evidence and witness testimony, Buchanan repeatedly hit the victim and told her he would kill her. After 30 hours of being held captive, law enforcement located the van at a vacant house in the woods, with both Buchanan and the victim inside. Buchanan was arrested and the victim was taken to the hospital for treatment.
According to filed court documents, in March 2012, a federal grand jury indicted Buchanan on kidnapping, possession of firearm by a convicted felon, and possession of a firearm in furtherance of kidnapping charges. Court records indicate that following his arrest and while in federal custody, Buchanan began to call the kidnapping victim in an attempt to persuade her to recant statements she made to law enforcement and the federal grand jury. As a result of that conduct, in December 2012, a federal grand jury added two charges of witness tampering in a superseding bill of indictment.
In announcing today’s sentence, Judge Conrad stated that the offense was “very serious,” it occurred “in broad daylight with a gun,” and that the defendant kept the victim “in captivity for over 24 hours, including assaulting her until she was unconscious.” Judge Conrad also stated that the defendant is “a danger to the community and has a disrespect for the law,” citing the seriousness of the offense, the need to promote respect for the law, and most importantly to protect the public from further crimes of the defendant as reasons for Buchanan’s lengthy prison term.
The defendant is currently in custody. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
ATF, the Monroe Police Department and the Chesterfield County Sheriff's Office led the investigation. Assistant United States Attorneys Jennifer Lynn Dillon and Dana Washington of the U.S. Attorney's Office in Charlotte prosecuted the case.
Las Vegas Felon Sentenced to Nearly 22 Years in Prison for Firearm and Drug OffenseRead the Press Release
LAS VEGAS, Nev.—A Las Vegas man was sentenced Tuesday by United States District Judge James C. Mahan to 260 months in prison and six years of supervised release for felon in possession of a firearm, possession of cocaine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Daniel G. Bogden of the District of Nevada.
“The defendant is a recidivist, a convicted felon who unlawfully possessed an automatic pistol, ammunition, over 9.5 grams of cocaine, and drug paraphernalia,” said U.S. Attorney Bogden. “Along with our law enforcement partners, the U.S. Attorney’s Office is committed to fighting violent crime and keeping Nevada’s communities and streets safe.”
Tyrone Davis, 33, pleaded guilty to possession of a firearm by a convicted felon, possession of cocaine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking offense. He was charged in a three-count superseding indictment on Aug. 13, 2013.
According to court documents, Davis has prior felony convictions in Henderson and Las Vegas. On July 19, 2012, detectives with the Las Vegas Metropolitan Police Department were conducting a robbery investigation involving Davis. During the execution of a search warrant of his apartment, the detectives found a Browning .22 caliber automatic pistol, a bullet-proof vest, ammunition, a pistol magazine, 9.6 grams of cocaine, and two digital scales with residue, along with small plastic bags.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and prosecuted by Assistant U.S. Attorneys Lisa C. Cartier-Giroux and Phillip N. Smith, Jr.
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Lansing Pimp Pleads Guilty to Sex Trafficking A Minor, Becoming the Tenth Person Convicted Federally of Sex Trafficking in West MichiganRead the Press Release
GRAND RAPIDS, MICHIGAN – Nicko Ray Rush II, 26, of Lansing, Michigan, pled guilty on January 24, 2017, to sex trafficking a minor by force, threats of force, fraud, or coercion. A grand jury charged Rush in November 2016 with sex trafficking two girls, ages 15 and 16, and one adult in Ingham County and elsewhere. Rush admitted at the plea hearing that he took both teens from Lansing to Detroit to "walk the streets" when they were 15 and that he kept the proceeds from their commercial sex acts. He admitted to giving the girls drugs and cigarettes and instructing them on how to walk to attract johns in passing cars. He also admitted to posting ads online for commercial sex for one of the girls and being violent and threatening towards both her and the adult victim.
Rush faces a minimum of 15 years and up to 25 years in federal prison. The Honorable Robert J. Jonker, Chief U.S. District Judge, will sentence Rush on June 5, 2017. Rush has been held in custody since his arrest on December 8, 2016, and he will remain detained pending sentencing. The sentence could also include a fine of up to $250,000 and an order that he pay restitution to any of his sex trafficking victims, which can cover victims’ costs such as counseling and medical treatment related to the crime.
Rush is the tenth defendant to be convicted federally of sex trafficking in the Western District of Michigan, starting with Eddie Allen Jackson in 2014, who was convicted at trial of recruiting three Muskegon girls ages 14, 15, and 16 into commercial sex in Grand Rapids. (See https://www.justice.gov/usao-wdmi/pr/2014_0916_EJackson.html.) Since that case, the U.S. Attorney’s Office for the Western District of Michigan has successfully prosecuted nine additional sex trafficking defendants, including Rush. Together, these cases involved 13 victims under the age of 18 and five adult victims, all of whom were local West Michigan residents from cities including Grand Rapids, Lansing, Muskegon, and Battle Creek. The defendants – nine males and one female – ranged in age from 22 to 45 years old and were also all local to West Michigan. Some of the defendants had histories of significant drug and violent criminal offenses. These ten sex trafficking convictions resulted from collaborative investigations by multiple agencies in each case, including the FBI in Grand Rapids and Lansing; the FBI’s West Michigan Based Child Exploitation Task Force (WEBCHEX); the Department of Homeland Security; the Ingham County Sheriff’s Office; the Battle Creek Police Department; the Grand Rapids Police Department; the Muskegon Police Department; the Lansing Police Department; and various juvenile detention, probation, and rehabilitation facilities. Assistant U.S. Attorney Tessa K. Hessmiller is the Coordinator for Human Trafficking prosecutions at the U.S. Attorney’s Office for the Western District of Michigan and was the lead prosecutor for each of these ten cases.
"Sex trafficking isn’t something that only happens elsewhere to some other community’s minors and vulnerable adults," stated Acting U.S. Attorney Andrew Birge. "These are West Michigan defendants targeting West Michigan victims. We rely on the many good people in our community and the skilled law enforcement agencies we have in this District to notice and intervene in suspicious situations."
"The investigation and conviction of Nicko Rush II are a model of collaboration between investigators from the Lansing Police Department (LPD) and our federal, state, and local law enforcement partners," stated Lansing Police Chief Mike Yankowski. "LPD will continue to work with our law enforcement partners to ensure that those who are responsible for human trafficking crimes will be held accountable for their actions."
Community members can learn more about how to recognize and stop sex trafficking in West Michigan by contacting their local human trafficking task force, including the task forces in Kent County, Kalamazoo, and the Michigan Human Trafficking Task Force. Additionally, the U.S. Attorney’s Office offers human trafficking training upon request.
The first step to stopping sex trafficking in our community is recognizing the warning signs and reporting suspicious activity to police. Some of the warning signs that make children and teens vulnerable to potential recruitment include being unhappy in school, absent from school or home, suicidal or suffering from low self-esteem, defiant towards authority, drug use or curiosity, seeking quick sources of income, and craving independence. Warning signs of child sex trafficking include seeing an adult man with multiple teenagers – particularly girls – buying condoms, alcohol, cigarettes, clothing, hair/nail supplies, or prepaid gift or debit cards that can be used to make untraceable purchases such as online prostitution advertisements. Community members may encounter these suspicious situations anywhere, including supermarkets, parking lots, pharmacies, convenience stores, gas stations, bus depots, fast food restaurants, hotels, and casinos. Sometimes the pimp, who may be male or female, recruits victims through the promise of having someone to meet the victim’s basic needs for housing, food, cash, and "love" or "friendship"; the promise of drugs and alcohol; use of threats and violence; or any combination of these means. Pimps often use an intermediary – such as a young woman or teenage girl – to recruit victims into a "money-making opportunity" that turns out to be commercial sex.
"The sexual exploitation of minors and adults is a reoccurring menace to Michigan communities and has lasting damaging impacts on its victims," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "Drugs and physical violence were just some of the tools Mr. Rush utilized to coerce the victims in this investigation. Through the continuing efforts of the FBI and our law enforcement partners, we want victims of any form of trafficking to know there is hope, and we encourage you to contact the FBI or your local police department if you have information about any human trafficking activity."
If you suspect illegal activity involving child exploitation or sex trafficking, contact law enforcement immediately. If a person may be in imminent danger, call 911. To report suspicious activity involving possible sex trafficking, call: West Michigan Based Child Exploitation Task Force (WEBCHEX) at 616-456-5489; Homeland Security Investigations, Grand Rapids, at 616-235-3936 (x. 2215); 1-800-THE-LOST® (National Center for Missing and Exploited Children); or report tips anonymously to Silent Observer at 616-774-2345.
The Nicko Rush case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
Kodiak Strip Boat Owner Sentenced to Probation and FineRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Darren Byler, 56, resident of Zachar Bay, Kodiak Island, Alaska, was sentenced on Monday by U.S. District Judge Sharon L. Gleason to five years’ probation and a fine of $10,000, for violating the Refuse Act and making false statements to Coast Guard officials.
Byler was convicted in December 2015 after an 11-day trial. According to the evidence at trial, Kimberly Riedel-Byler and Darren K. Byler were the owners of the Wild Alaskan, a floating strip club anchored in Kodiak Harbor between June 2014 and November 2014. On the Wild Alaskan was a customer bathroom for patrons and an employee bathroom for dancers and other staff. The United States established at trial that sewage from these bathrooms on board the Wild Alaskan was plumbed to flow directly overboard into the waters of Kodiak Harbor.
When asked to produce documentation about his sewage disposal from the Wild Alaskan, Darren Byler gave the United States Coast Guard Marine Safety Detachment Kodiak a false ship’s log. In the log, the defendant claimed to have disposed of 1,500 gallons of raw sewage from the Wild Alaskan at the Pier 2 sewage disposal facility in Kodiak Harbor on July 29 and 30, 2014. In his log, the defendant also reported that he disposed of 800 gallons of sewage on five additional occasions in September and October 2014, by transporting the sewage in his landing craft, the Gulf Coast Responder, and dumping it at sea beyond 3 nautical miles. The United States proved at trial that these statements were false.
Judge Gleason based her sentence on numerous factors, including the nature and circumstances of the defendant’s conduct, and the defendant’s history and characteristics. Judge Gleason also noted the need to deter others from committing similar environmental crimes, and then engaging in steps to hide those illegal discharges. “There is a need for the sentence to afford some degree of adequate deterrence to the many other mariners that are in our state,” said Judge Gleason.
The case was the product of an investigation by multiple law enforcement agencies, including the United States Coast Guard Investigative Service, the Federal Bureau of Investigation, and the Kodiak Police Department. Assistant U.S. Attorney Kyle Reardon and Special Assistant U.S. Attorney William George prosecuted the case.
Jury Convicts Local Man of Bank RobberyRead the Press Release
HOUSTON – A 24 year-old Houston man has been found guilty for the armed robbery of a Capital One Bank and for using a firearm during and in relation to a crime of violence, announced U.S. Attorney Kenneth Magidson. A Houston federal jury convicted Trent Davis today following two days of trial and approximately an hour of deliberation.
On April 26, 2016, Davis and co-defendant Derrick Muhammad, 28, of Houston, robbed the Capital One Bank located at 1514 West Sam Houston South in Houston. The men entered the facility, at which time Davis jumped the counter, pointed a pink gun at the teller and demanded he open the vault. Upon fleeing the bank, two dye packs exploded within the bag holding the money which was then thrown from the car. A witness in a nearby building saw the two masked men exiting the bank and photographed the vehicle as the dye pack exploded.
Davis used his sister’s car during the robbery. During trial, an FBI chemist testified that a substance found in that vehicle had chemicals found only in dye packs.
The lead teller on the date of the robbery told the jury how he was forced to empty the vault at gunpoint. He testified that the robbers were wearing hoodies and that one of them used a pink gun in the robbery.
Davis was apprehended approximately a month after the robbery in possession of a pink gun that had been painted black.
Two witnesses testified about jail house conversations they had with Davis and claimed Davis confessed to the crime, that he used his sister’s car and about the pink gun being painted. The jury also heard from Muhammad who testified about the details of the robbery. He previously pleaded guilty and will be sentenced in March 2017.
U.S. District Judge David Hittner presided over the trial and has set sentencing for April 19, 2017. At that time, Davis faces up to 25 years for the bank robbery as well as another seven years for the use and carrying of a firearm which must be served consecutively to any other prison term imposed.
The FBI Violent Crime Task Force conducted the investigation, which included agents and officers of the FBI, Harris County Sheriff’s Office and Houston Police Department Assistant U.S. Attorneys Celia Moyer and Jill Stotts are prosecuting the case.
Jury Convicts Local Doctor in $13 Million Health Care Fraud SchemeRead the Press Release
HOUSTON – The final defendant charged in a $13 million Medicare and Medicaid health care fraud case has been found guilty on all eight counts as charged, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Dr. Faiz Ahmed, 64, of Houston, today following a six-day trial and approximately five hours of deliberations.
Ahmed and eight co-defendants engaged in a conspiracy to falsely bill Medicare and Medicaid for medically unnecessary diagnostic tests. At trial, the jury heard that Ahmed agreed to approve the testing and allowed his physician number to be used in the Medicare billing process to support the tests.
The lead defendant in the case - Mkrtich “Mike” Yepremian, 59, of Houston, paid marketers to bring patients to the clinics. He also, among others, paid the patients to submit to the tests. He pleaded guilty March 4, 2016, to conspiracy to commit health care fraud and paying kickbacks to marketers of Medicare and Medicaid patients.
Seven others have also pleaded guilty for their respective roles - Bompa Mbokoso Mompiere, 57, Michael Wayne Wilson, 47, Jermaine Doleman, 39, Harding Dudley Ross, 62, Eric Johnson, 62, Ann Marie Rocha, 49, and Eddie Wayne Taylor, 57, all of Houston. These defendants and Yepremian are set for sentencing in April 2017.
Yepremian ran several false clinics in Houston and Conroe. He paid marketers, including Wilson, Doleman, Johnson and Taylor, to bring patients to the clinics for a battery of diagnostic tests and blood work, regardless of medical need. Yepremian paid the marketers approximately $100 for each patient brought to his clinics. In turn, the marketers paid the patients approximately $50 each.
Ahmed approved the medically unnecessary diagnostic testing. He ordered testing for approximately 400 patients, 80 percent of which included an EKG and PFT (series of breathing tests). Ahmed was not even their regular treating physician. The jury heard that no one was referred to these clinics, there was no appointment book, they did not collect any copays and that the patients usually arrived all at the same time along with marketers.
The jury heard from some of the paid patients who testified they were paid to submit to the testing and knew it was wrong. The jury also heard testimony from the office manager – Rocha – and other co-conspirators about the overall scheme. The jury also saw video and heard phone calls, during which Ahmed had agreed to the scheme.
As a result of the overall conspiracy, Medicare and Medicaid were billed approximately $13 million and paid out approximately $9 million in false claims.
The defense attempted to convince the jury that Ahmed did not order unnecessary tests and said he had no idea the patients were paid. He argued that someone else must have added the tests and billed them to Medicare. The jury did not believe his claims and found him guilty for the underlying conspiracy and for committing health care fraud.
U.S. District Judge Gray Miller presided over the trial and has set sentencing for April 6, 2017. At that time, Ahmed faces up to 10 years imprisonment and a possible $250,000 fine on all eight counts of conviction. Previously released on bond, Ahmed was permitted to remain on bond pending his sentencing hearing.
The Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General (Office of Investigations) and the FBI conducted the investigation. Special Assistant U.S. Attorney Suzanne Bradley and Trial Attorney Jason Knutson are prosecuting the case.
Jerome Man Sentenced to a Decade in Prison for Armed Stand Off with PoliceRead the Press Release
BOISE - Daniel Andrew Mills, 41, of Jerome, Idaho, was sentenced today to serve ten years in prison for unlawful possession of firearms and violating the conditions of his supervised release, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge sentenced Mills to 100 months imprisonment for unlawful possession of firearms and 24 months, to be served consecutively, for violating the terms of his supervised release on a prior unlawful possession of a firearm offense. Mills was convicted of possessing two firearms after a two-day trial in Boise in October of last year.
During the two-day trial, the jury heard evidence that Mills, a convicted felon who was wanted by the U.S. Marshals Service on a federal warrant for a supervised release violation, was driving through Jerome at 2:15 a.m. on January 11, 2016, when a Jerome County Sheriff’s Office deputy attempted to stop him for a broken taillight. Mills fled in his car, reaching speeds of more than 100 miles per hour. Mills’ car became disabled after he crashed through a fence and hit a parked vehicle. Mills refused all commands to exit the vehicle and repeatedly stuck the barrel of a shotgun outside of the driver’s window. The armed stand-off lasted several hours before a Twin Falls Sheriff’s Office hostage negotiator talked Mills out of the car and he was arrested without incident. Inside of the car, deputies found a loaded shotgun and a loaded .25 pistol. At the time Mills was in possession of the firearms, he was on supervised release for a prior federal conviction for unlawfully possessing a firearm. Mills has previously been convicted of assault with intent to commit a serious felony, aiding and abetting delivery of controlled substance, escape, forgery, eluding arrest, and possession of controlled substance.
At sentencing today, Judge Lodge noted the Mills posed a “significant danger to the community, lied under oath at trial, and this made it impossible to impose a sentence of less than ten years.”
The case was investigated by the Jerome County Sheriff’s Office, the Jerome City Police Department, the Twin Falls County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Illinois Man Who Illegally Accessed Email Belonging to More Than 300 People, including Many Celebrities, Sentenced to Federal PrisonRead the Press Release
LOS ANGELES – An Illinois man who admitted responsibility for a phishing scheme that gave him illegal access to over 300 Apple iCloud and Gmail accounts, including those belonging to members of the entertainment industry in Los Angeles, has been sentenced to nine months in federal prison.
Edward Majerczyk, 29, of Chicago, was sentenced yesterday in Chicago by United States District Judge Charles P. Kocoras, who said the defendant’s crime was “abhorrent.”
Majerczyk pleaded guilty in September to a felony violation of the Computer Fraud and Abuse Act, specifically, one count of unauthorized access to a protected computer to obtain information. Majerczyk was charged by federal prosecutors in Los Angeles, but the case was transferred to the Northern District of Illinois, where the defendant pleaded guilty and was sentenced.
“This defendant engaged in a computer hacking scheme that not only gave him access to his victims’ computers, it also gave him access to the most personal details of their lives,” said United States Attorney Eileen M. Decker. “This was a deep intrusion into the victims’ privacy and a violation of federal law.”
According to a plea agreement filed in this case, from November 23, 2013 through August 2014, Majerczyk engaged in a phishing scheme to obtain usernames and passwords for his victims. He sent e-mails to victims that appeared to be from security accounts of internet service providers that directed the victims to a website that would collect the victims’ usernames and passwords. After victims responded by entering information at that website, Majerczyk had access to victims’ usernames and passwords. After illegally accessing the iCloud and Gmail accounts, Majerczyk obtained personal information including sensitive and private photographs and videos.
“Mr. Majerczyk manipulated hundreds of victims by tricking them into providing access to their accounts, including high-profile victims whose information was specifically targeted,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The lasting harm this type of intrusion can cause to celebrities and non-celebrities alike cannot be overstated, and this case should serve as a necessary reminder to all of us that it is dangerous to respond to unsolicited e-mails in which our personal information is requested.”
Many of Majerczyk’s victims were members of the entertainment industry in Los Angeles. By illegally accessing the e-mail accounts, Majerczyk accessed at least 300 accounts, and at least 30 accounts belonging to celebrities.
The charge against Majerczyk stems from the investigation into the leaks of photographs of numerous female celebrities in September 2014 known as “Celebgate.” However, investigators have not uncovered any evidence indicating that Majerczyk was responsible for any of the postings of celebrity photographs.
In addition to the prison term, Judge Kocoras ordered Majerczyk to pay $5,700 in restitution to one victim whose photos were published on the Internet. Majerczyk was ordered to begin serving his sentence by February 27.
The case against Majerczyk is the product of an ongoing investigation by the Federal Bureau of Investigation. The case was filed by Assistant United States Attorneys Ryan White and Vicki Chou of the Cyber and Intellectual Property Crimes Section. The sentencing hearing was handled by Chicago-based Assistant United States Attorney Raj Laud.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN MANUEL URQULA-SEVILLA, age 35, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to court records, URQULA-SEVILLA was previously removed from the United States on or about April 4, 2005. URQULA-SEVILLA was later found in the Eastern District of Louisiana on or about October 11, 2015, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
URQULA-SEVILLA faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Eldon E. Fallon set sentencing for March 16, 2017.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Henderson County Man Sentenced for Child Pornography ViolationsRead the Press Release
TYLER, Texas — A 35-year-old Trinidad, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Mikael Johnson pleaded guilty on Oct. 11, 2016, to distributing child pornography and was sentenced to 140 months in federal prison by U.S. District Judge Ron Clark on Jan. 24, 2017.
According to information presented in court, on Dec. 14, 2015, Johnson knowingly sent another person child pornography by using the Internet, digital services that he owned and a social media application. Following an investigation, federal agents obtained and executed a search warrant at Johnson’s residence on Jan. 7, 2016. More than 600 images and videos containing child pornography were located and seized during the search. Johnson was arrested on that day and a federal grand jury returned an indictment on Jan. 20, 2016 charging him with federal child exploitation violations.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Marisa Miller and U.S. Department of Justice Criminal Division Trial Attorney Amy Larson.
Harrison County Resident Sentenced for Sex Trafficking MinorsRead the Press Release
Council Bluffs, IA - On January 25, 2017, John F. Thomsenheather Jean Reekr, a 47-year-old resident of Missouri Valley, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 235 months in prison for coersion and enticement of a minor for sex and for transporting a minor with intent to engage in sexual activity, announced United States Attorney Kevin E. VanderSchel. Thomsen will be required to serve 15 years of supervised release after his prison term. Thomsen pleaded guilty to the two counts on September 1, 2016.
The guilty pleas and sentencing were the result of an investigation into the transportation of minor females from Arkansas to Missouri Valley, Iowa, so the minors could engage in sexual acts. The investigation showed Thomsen had met a 14-year-old female while working at a group home in Arkansas. After leaving his group home employment, Thomsen used social media to keep in contact with the minor female and convince her to live with him, and his wife, Trudy Thomsen, in Missouri Valley, Iowa.
The Thomsens traveled to Arkansas and drove the minor to Missouri Valley, Iowa, where the Thomsens engaged in various sexual acts with the girl. After the minor was returned to the group home, John Thomsen again contacted her via social media and arranged to have her, and a second minor female, transported back to Missouri Valley, Iowa, for sexual activities.
Co-defendant Trudy Thomsen is pending sentencing in the Southern District of Iowa.
This investigation was conducted by the Federal Bureau of Investigation Child Exploitation Task Force, Arkansas State Police, Missouri Valley Police Department, Council Bluffs Police Department, Omaha Police Department, La Vista Police Department, and the Harrison County Attorney’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by contacing Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
Hampton Man Sentenced to 16 Years for Child PornographyRead the Press Release
NEWPORT NEWS, Va. – Jerome Paul Frostman, 47, of Hampton, was sentenced today to 16 years in prison for receipt of child pornography.
Frostman pleaded guilty on Aug. 8, 2016. According to court documents, Frostman was distributing child pornography using a peer-to-peer network. After a search warrant was executed at his residence, Frostman acknowledged accessing child pornography from his laptop and stated he “gets a thrill” out of viewing child pornography. During an interview with law enforcement agents Frostman confessed to downloading and receiving over 1,000 images of child pornography, in addition to previously sexually assaulting a child on multiple occasions.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Megan M. Cowles prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-55.
Freeport Man Enters Guilty Plea to Three Child Pornography ChargesRead the Press Release
GALVESTON, Texas – A 21-year-old Freeport man has been convicted of distribution, receipt and possession of child pornography, announced U.S. Attorney Kenneth Magidson.
Miguel Jimenez Jr. came to the attention of authorities after they believed he was uploading and storing child pornography into a virtual storage account. A search warrant was executed at his residence, at which time law enforcement located and seized various computers and cellular phones. Forensic analysis of the phones, computers and virtual storage accounts revealed 658 child pornography images and 634 child pornography videos. The images and videos included minors under the age of 12 engaging in sexual activity, instances of sadism, masochism, bondage involving the penetration of the minor, as well as masturbation and the lewd and lascivious display of the children’s genitals.
Today, Jimenez admitted he possessed, received and distributed numerous images child pornography. Jimenez chatted with unidentified users who shared his sexual interest in children. Further, Jimenez used several different on-line applications to chat with underage girls all over the country. He had an online relationship with one minor female whom he had threatened by saying she had to continue the relationship or he would send naked pictures of her to her friends.
The forensic analysis results indicated that Jimenez searched the Internet using the phrase, “how much trouble can you be in for sending naked photos of ex.”
Jimenez has been detained since his arrest on May 5, 2016, at which time U.S. Magistrate John R. Froeschner found him to be a flight risk and danger to the community.
U.S. District Judge George C. Hanks accepted the plea and set sentencing for May 17, 2017. For distribution and receipt of child pornography, Jimenez faces a mandatory minimum sentence of five and up to 20 years in federal prison. He also faces another maximum term of 10 years for the possession conviction. All charges are also punishable by a $250,000 maximum possible fine. Upon completion of any prison term imposed, the court could impose any number of years and up to life on supervised release and he will also be required to register as a sex offender.
Immigration and Customs Enforcement’s Homeland Security conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Sherri Zack, 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."
Former Vice President of Maryland Bank Admits to Six-Year Scheme to Steal over $1.8 Million from Bank CustomersRead the Press Release
Baltimore, Maryland – Melissa Strohman, age 54, of Nottingham, Maryland, pleaded guilty in federal court today to wire fraud and bank embezzlement, arising from a six-year scheme to steal over $1.8 million from bank customers at the bank where she worked.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Patti Tarasca, Special Agent in Charge, New York Region, Federal Deposit Insurance Corporation (FDIC) Office of Inspector General; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to her plea agreement, from April 2010 through July 2016, Strohman was Senior Vice President at a federal savings bank in Maryland, which had branches in Pikesville and Highlandtown. Strohman was responsible for managing the bank’s savings department, including overseeing deposits and Individual Retirement Accounts for every customer. In addition, as the bank’s Bank Secrecy Officer, Strohman was responsible for filing Currency Transaction Reports and Suspicious Activity Reports for any transactions that were deemed to be suspicious or potentially illegal.
Strohman admitted that she used her position of trust at the bank to cause more than 200 unauthorized transfers and withdrawals of funds from six customers’ bank accounts to pay for mortgages, credit card bills and property tax bills associated with Strohman and her family members. Three of the six victim customers were at least 80 years old, and for two of the accounts the customers were deceased.
For example, Strohman used her supervisory override function on the bank’s electronic banking system to facilitate unauthorized transfers between the victim customers’ accounts to accounts associated with Strohman; forged the signature of one victim customer in order to complete an unauthorized transaction from that person’s bank account to an American Express account associated with Strohman; and caused unauthorized transfers of funds between the victim customers’ accounts to replace the monies Strohman stole and to conceal those thefts.
Strohman faces a maximum sentence of 20 years in prison for wire fraud, and a maximum of 30 years in prison for bank embezzlement. U.S. District Judge Richard D. Bennett has scheduled sentencing for Strohman on May 12, 2017, at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the FDIC Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Phil Selden and Evan Shea, who are prosecuting the case.
Former Energy Company Executives Convicted in Embezzlement SchemeRead the Press Release
HOUSTON - The former president of Chase Power Development has entered a guilty plea to conspiracy to commit mail and wire fraud, announced U.S. Attorney Kenneth Magidson. Kathleen Smith entered her plea today, while co-defendant and former CEO John Upchurch entered his plea earlier this month.
Houston-based Quintana Capital Group created Chase Power in order to head start an energy project in Corpus Christi. In July 2008, Upchurch was hired as CEO and Smith as president of that company.
From about June 2008 to about June 2012, Upchurch and Smith embezzled a significant amount of money from Chase Power. Throughout their employment with Chase Power, they submitted false invoices for fake projects in order to receive company funds for their own personal expenses, such as personal travel, hotels, country club memberships, personal car restoration, fishing equipment and a hunting trip. Smith and Upchurch either mailed the company checks upon issuance or personally took the checks to the merchants.
In addition, the defendants used their company American Express credit cards for their own personal purchases. Upchurch and Smith would segregate their illegitimate American Express expense account summaries and self-approve them for payment on personal items and expenditures.
U.S. District Judge Sim Lake accepted the pleas and has set sentencing for April 2017. At that time, both face up to five years in federal prison and/or a maximum possible $250,000 fine. They were permitted to remain on bond pending sentencing.
The FBI conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting this case.
Former East Carondelet Man Sentenced for Distributing, Receiving and Possessing Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on January 25, 2017, Richard Lee Doerr, III, 29, formerly of East Carondelet, Illinois, was sentenced for distribution of child pornography, three counts of receipt of child pornography, and possession of prepubescent child pornography. Doerr was sentenced to a term of imprisonment of 120 months on each count, to run concurrently, to be followed by a five-year term of supervised release on each count, also to run concurrently. Doerr was also ordered to pay a $500 special assessment. In addition, Doerr agreed to pay $4,500 in restitution to four of the victims identified from his collection of child pornography. Doerr had been detained since his arraignment on February 12, 2016.
On December 27, 2013, the National Center for Missing and Exploited Children received a cyber tipline report from Tumblr that an individual had uploaded approximately 34 images that appeared to be child pornography based on the hash values of the images. The FBI tracked the IP address to Doerr.
Doerr provided a voluntary statement, in which he admitted to downloading and sharing child pornography via Tumblr accounts. A forensic review of Doerr’s cellular telephone revealed that it contained 143 image and 28 video files of child pornography while a forensic review of his
Samsung Galaxy tablet, revealed that it contained eight video files of child pornography. More than half of the images contained on Doerr’s cellular telephone were of prepubescent children. In addition, the forensic review determined that, on or about December 27, 2013, Doerr distributed image files of child pornography. Moreover, the forensic review determined that, between July 11 and September 5, 2014, Doerr received image and/or video files of child pornography on several occasions.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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 Aresources.@
The case was investigated by the FBI’s Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
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Florida Man Sentenced to Prison for Tax Evasion of over $500KRead the Press Release
NORFOLK, Va. – Napoleon Robinson, 65, of Lauderhill, Florida, was sentenced today to 18 months in prison for charges of evasion of employment tax payment. Robinson was also sentenced to three years of supervised release and ordered to pay over $508,000 in restitution.
Robinson pleaded guilty on Sept. 28, 2016. According to court documents, between January 2000 and December 2013, Robinson owned and operated a series of ship welding and repair businesses in New York and Virginia. Beginning in 2005, Robinson began to fall habitually behind on paying the IRS the employment taxes he withheld from his employees. Rather than make arrangements to pay as required, Robinson simply closed down one ship repair company and opened a new one in the name of a nominee owner – including his sister, his teenaged niece, and a friend. Robinson himself, however, ran these companies, made all financial and personnel decisions, and controlled the businesses’ bank accounts. Eventually, the IRS caught on to Robinson’s employment tax “pyramiding” scheme and opened an investigation into his series of businesses. In the course of that investigation, Robinson made material false statements to the IRS Revenue Officer and otherwise attempted to impede IRS’s collection efforts. The total tax due and owing resulting from Robinson’s serial ownership of these ship repair companies is just over $500,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas Holloman, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney V. Kathleen Dougherty prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-111.
Florida Man Sentenced to 3½ Years for Credit Card Fraud and Identity TheftRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Ariel Perez-Calvo, 28, of Miami, Florida, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 3½ years in prison and three years of supervised release for credit card fraud and aggravated identity theft. He was also ordered to pay over $35,000 in restitution to the victims of his crime.
Court records show that in January 2016, Perez-Calvo and Roberto Lueje-Rodriguez used debit and credit card account numbers belonging to Maine bank customers located in Penobscot, Knox, Hancock, Piscataquis, Franklin, Somerset, Kennebec, and Androscoggin counties, to make unauthorized purchases totaling more than $48,000. The defendant engaged in similar conduct in Manchester and Concord, New Hampshire in November 2015 when he used debit and credit card account numbers belonging to New Hampshire bank customers to make unauthorized purchases totaling more than $1,000.
The name embossed on each fake card was “David Cuan,” which was not the name of any of the victims. Each fake card bore a unique account number and appeared to be an authentic debit or credit card, but their magnetic strips were encoded with the true account numbers of the victims.
At sentencing, Judge Woodcock noted: “The crimes you engaged in are insidious and destructive. First you steal private information and then you steal money.”
On July 8, 2016, Lueje-Rodriquez pleaded guilty to access device fraud and aggravated identity theft charges arising out of the same conduct and awaits sentencing.The investigation was conducted by the Maine State Police; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Bangor, Brewer, Dexter, Dover-Foxcroft, Ellsworth, Hampden, Lincoln, Millinocket, Newport, Pittsfield, Rockland, Saco, Waterville (Maine) and Londonderry (New Hampshire) Police Departments.
Federal Jury Convicts Montgomery County Man for Distributing Acetyl Fentanyl Resulting in DeathRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Justin Larson, age 30, of Gaithersburg, Maryland, for distribution of acetyl fentanyl, which resulted in death; conspiracy to distribute narcotics; five counts of possession or attempted possession of a controlled substance and controlled substance analogue with intent to distribute; and one count of possession with intent to distribute and distribution of a controlled substance. The jury was not able to reach a verdict on a second count of distribution of acetyl fentanyl, resulting in death.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to the testimony at his three-week trial, from May 2014 through March 17, 2016, Larson conspired to distribute acetyl fentanyl, and furanyl fentanyl, a controlled substance analogue. The evidence showed that on May 9, 2014, Larson distributed acetyl fentanyl to an individual, resulting in the death of that individual.
Larson faces a mandatory minimum sentence of life in prison for distribution of acetyl fentanyl with death resulting; a maximum of 30 years in prison for the narcotics conspiracy; and a maximum of 20 years in prison for each of the six possession and distribution counts, and. U.S. District Judge Paula Xinis has scheduled sentencing for April 26, 2017, at 1:30 p.m. Larson remains detained.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the FBI, Montgomery County Police Department, and Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Kelly O’Connell Hayes and Erin Pulice, who are prosecuting the case.
Federal Grand Jury in El Paso Indicts Seven in Bank Fraud SchemeRead the Press Release
In El Paso today, a federal grand jury indicted seven individuals for allegedly defrauding multiple local banks and credit unions through applications for at least $237,000 in personal loans and lines of credit announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
The 16–count indictment charges 38–year-old former Michael Nedal Annabi of Santa Teresa, NM; his wife, 33-year-old Perla Maldonado Annabi; 33-year-old Basem Elgelda of Petaluma, CA; 25-year-old Terrance Yelder of El Paso; 29-year-old Miguel Munoz of Santa Teresa, NM; 23-year-old Jenzel Nash of El Paso; and, 20-year-old Daniel Munoz of Santa Teresa, NM, with one count of conspiracy to commit bank fraud. Michael Annabi and Basem Elgelda are also charged with four; Terrance Yelder and Jenzel Nash, with two; and, Perla Annabi, Miguel Munoz and Daniel Munoz with one, substantive counts of false statement on loan or credit application.
According to the indictment, the defendants conspired from July 31, 2013, to March 22, 2016, to defraud 21 financial institutions nationwide in connection with a loan scheme. Throughout the scheme the defendants would obtain loans and lines of credit after providing the financial institutions with fraudulent personal and income information.
Upon conviction, each charge calls for up to 30 years in federal prison.
This case was investigated by the Federal Bureau of Investigation with assistance from the El Paso Police Department. Assistant United States Attorneys Rifian S. Newaz and Debra Kanof are prosecuting this case on behalf of the Government.
Federal Grand Jury Indicts Former Dallas Resident Who Fled to Switzerland Instead of Appearing, as Ordered, in Federal Court in a Civil CaseRead the Press Release
DALLAS — A federal grand jury in Dallas returned an indictment yesterday charging fugitive Rudolf Suter, 66, formerly of Dallas, with two counts of making false statements under the penalty of perjury when he concealed in his voluntary bankruptcy filing in early 2014 that he had several open and recently closed bank accounts in both the United States and Europe, announced U.S. Attorney John Parker of the Northern District of Texas.
Suter, a citizen of Switzerland, failed to appear on March 9, 2016, for a hearing set in a civil case before U.S. District Judge David C. Godbey. That hearing was scheduled for Suter to show cause why he should not be held in contempt for violating post-judgment orders. The following day, Judge Godbey signed a contempt order and ordered that a civil contempt arrest warrant be issued. After remaining a fugitive for approximately nine months, on December 11, 2016, Suter was arrested on that civil contempt arrest warrant as he attempted to re-enter the U.S. at JFK International Airport. He remains in federal custody pursuant to a detention order signed by U.S. Magistrate Judge Irma C. Ramirez that noted his repeated failure to comply with orders of the U.S. District Court and the U.S. Bankruptcy Court, including his failure to appear at multiple court hearings.
On January 6, 2017, Suter was charged in a federal criminal complaint with making a false statement, under the penalty of perjury, in a bankruptcy case.
According to the affidavit filed with the criminal complaint and the indictment, in September 2011, counsel for plaintiffs Peter Denton and Harvest Investors, L.P., filed a civil complaint in order to collect a civil claim against in Suter. In August 2012, Judge Godbey issued a final judgment in that civil case in which he granted the motion for confirmation of a foreign arbitration award filed by plaintiffs Peter Denton and Harvest Investors, L.P. Judge Godbey ordered that Harvest have judgment against Suter for $1,025,430 and that Denton have judgment against Suter for $1,025,430. He also ordered Suter to pay interest on both money judgements from June 2009 until the date of payment, and he further ordered judgment against Suter to both plaintiffs to cover other expenses totaling more than $135,000, bringing the total money judgment against Suter to $2,187,055.
After the final judgment in August 2012, and continuing until March 2016, counsel for plaintiffs Denton and Harvest engaged in extensive post-judgment discovery attempts to identify and locate Suter’s property and assets in order to collect this more than $2.1 million judgment. However, from August 2012 through March 2016, Suter engaged in an ongoing pattern of concealing his financial information from the plaintiffs and the court. On January 17, 2014, Suter filed a voluntary bankruptcy petition in U.S. Bankruptcy Court for the Northern District of Texas.
In that bankruptcy petition, Suter concealed his true financial condition when he filed false statements in his Schedule B (Personal Property), his Statement of Financial Affairs, and in other bankruptcy-related documents. In fact, Suter’s efforts to conceal assets and financial information continued until he fled the jurisdiction of both the above-referenced civil case and his bankruptcy case.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, the maximum statutory penalty for the offenses charges is five years in federal prison and a $250,000 fine, per count.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Suter is the 26th defendant to have been charged as part of that initiative; 16 have been convicted, one resulted in a mistrial, and nine are pending trial.
Internal Revenue Service Criminal Investigation is leading the investigation in the Suter case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Fairfield Country Landscaper Sentenced to 18 Months in Prison for Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DONALD BIAGI, JR., 55, of Fairfield, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 18 months of imprisonment, followed by one year of supervised release, for tax evasion.
According to court documents and statements made in court, BIAGI is the sole owner of Don Biagi Landscaping. BIAGI, through Don Biagi Landscaping, generated business income by providing landscaping and snowplowing services to commercial and residential customers in Fairfield County. BIAGI regularly negotiated client checks at banks for cash rather than depositing the checks into his business bank accounts. Between 2008 and 2010, BIAGI cashed approximately 574 client checks, ranging in amounts from $10.52 to $15,604.50, in the total amount of approximately $848,750.
BIAGI, who acted as his own bookkeeper, did not disclose to his tax return preparer the client checks he cashed and some of the client checks he deposited into his business account between 2008 and 2010. As a result, a total of $1,321,305 in business gross receipts were not reported on BIAGI’s federal tax returns for 2008, 2009, and 2010, resulting in his substantially under-reporting his taxable income. BIAGI failed to report approximately 62 percent of his business’s gross receipts in 2008, approximately 47 percent of the gross receipts in 2009, and approximately 60 percent of the gross receipts in 2010.
Judge Covello ordered BIAGI to pay $445,579 in back taxes, and additional penalties and interest that have accrued on his unpaid taxes. BIAGI made a $50,000 payment toward his restitution today.
On September 29, 2016, BIAGI pleaded guilty to one count of tax evasion. He was ordered to report to prison on April 1, 2017.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Eleven Defendants Charged in White Plains Federal Court with Narcotics Offenses in Sullivan CountyRead 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 Division of the Federal Bureau of Investigation (“FBI”); James R. Farrell, the Sullivan County District Attorney; George Beach, the Superintendent of the New York State Police (“NYSP”); Michael A. Schiff, the Sullivan County Sheriff; Scott Kinne, the Chief of the Village of Liberty Police; and Robert Mir, the Chief of the Village of Monticello Police Department, today announced the unsealing of three Indictments charging 11 members of three separate drug trafficking organizations based in Sullivan County, New York, with conspiracy to distribute heroin and crack cocaine. In a coordinated operation earlier today, federal, state, and local law enforcement officers arrested seven defendants in Sullivan County. One of the charged defendants had already been arrested. Three defendants remain at large. Most of the defendants are expected to be presented in White Plains federal court today before U.S. Magistrate Judge Judith C. McCarthy.
Manhattan U.S. Attorney Preet Bharara stated: “Every day, in communities around the country, we witness the devastating effects of the heroin trade. With today’s charges, made possible by the work of the FBI and our local law enforcement partners, we seek to help stem the flow of heroin and crack cocaine in Sullivan County.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. stated: “This case is part of our continuing effort in the Hudson Valley area to eradicate the tragic loss of life that is so closely associated with those involved in the drug trade. Heroin is killing more people in this country than ever before, and the FBI Hudson Valley Safe Streets Task Force is doing everything we can to stop these dealers from using this potentially lethal drug so they can make money.”
Sullivan County District Attorney James R. Farrell stated: “Today’s arrests mark our sustained and continued joint law enforcement effort - federal, state and local - to disrupt, dismantle, and destroy heroin trafficking organizations in Sullivan County. Our joint commitment, with our federal law enforcement partners, will continue apace so that those who engage in this deadly trade are held accountable and responsible in a court of law. I want to thank U.S. Attorney Preet Bharara for his continued support of these efforts in Sullivan County, and all of the local police agencies in Sullivan County that have multiplied our impact in disrupting heroin trafficking by successfully partnering with the FBI Safe Streets Task Force.”
NYSP Superintendent George P. Beach II said: “Thanks to the hard work and partnership of law enforcement at the state, federal, and local level, we have arrested and charged these 11 individuals, who are allegedly responsible for trafficking heroin and cocaine throughout Sullivan County. These narcotics are dangerous for users, and threaten the safety and security of our neighborhoods. We will continue to work with our partners to aggressively pursue the criminals who profit at the expense of our communities.”
Sullivan County Sheriff Michael A. Schiff stated: “This is another significant step forward in our initiative to curtail gangs and drug sales in Sullivan County. I would like to thank all of the agencies involved in these arrests. We are much more effective working together than separately.”
Village of Liberty Police Chief Scott Kinne stated: “Heroin is poisoning our communities and our citizens, especially our youth. Targeting and arresting the dealers who choose to distribute heroin and cocaine into our communities will make our communities a safer place to work and raise our children.”
Village of Monticello Police Chief Robert Mir stated: “The Monticello Police Department, the United States Attorney for the Southern District of New York, the FBI, the Sullivan County District Attorney and our other partners in law enforcement have been investigating these drug organizations for a long time and today’s arrests were a culmination of that investigation. These arrests stem from a series of ongoing joint investigations that have been progressing for years. The unsealing of three federal indictments, and arrests, underscore our commitment to combat the ongoing drug trade in our community, which has so severely affected the youth of Sullivan County. We hope that these arrests will go a long way toward curbing the opiate epidemic in Sullivan County and thereby improving the quality of life. At the conclusion of our past operations, we warned drug dealers. Today we issue another warning: We have other ongoing investigations, we know who you are, where to find you and we will get you. We will not stop.”
As alleged in the Indictments unsealed today in White Plains federal court[1]:
ROSHEEN HILLIARD, a/k/a “Nyce,” a/k/a “Ghost,” a/k/a “Cutt,” a/k/a “Daddy,” 37, JERMAINE DRAYTON, a/k/a “Jerm,” 40, JESENIA FIELDS, 29, and LEON FOUNTAIN, a/k/a “Tiger,” 35, are charged in an indictment with conspiring to distribute and possess with intent to distribute one kilogram or more of heroin from at least 2013 through December 2016. This drug trafficking organization was led by HILLIARD and primarily operated in and around Sullivan County, New York.
AVERY AUBAIN, a/k/a “Dog,” 23, KATRINA BRIDGES, a/k/a “Trina,” 36, PAUL HERSHEWSKY, a/k/a “Hersh,” 38, TYRELL IVORY, a/k/a “Rell,” 23, JESSE KREBS, 27, and WILLIAM SOMERS, a/k/a “Billy,” 43, are charged in an indictment with conspiring to distribute and possess with intent to distribute one kilogram or more of heroin from at least 2013 through May 2016. AUBAIN and his alleged coconspirators distributed heroin in and around the Village of Liberty, New York, and other locations in Sullivan County, New York.
TERRY COVINGTON, 37, is charged in an indictment with conspiracy to distribute and possess with intent to distribute 28 grams or more of crack cocaine in and around Sullivan County, New York.
* * *
Charts containing the names of the defendants who were charged today, and the charges and maximum penalties they face, are attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Bharara praised the outstanding investigative work of the FBI, the New York State Police, the Sullivan County Sheriff’s Department, the Village of Monticello Police Department, and the Village of Liberty Police Department. Mr. Bharara also thanked the Sullivan County District Attorney’s Office for its ongoing assistance in the case.
These cases are being handled by the Office’s White Plains Division. Assistant United States Attorneys Maurene Comey and Gillian Grossman are in charge of the prosecutions.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin.)
ROSHEEN HILLIARD,
a/k/a “Nyce,”
a/k/a “Ghost,”
a/k/a “Cutt,”
a/k/a “Daddy,”
JERMAINE DRAYTON,
a/k/a “Jerm,”
JESENIA FIELDS, and
LEON FOUNTAIN,
a/k/a “Tiger”
Life in prison
Mandatory minimum: 10 years in prison
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin.)
AVERY AUBAIN,
a/k/a “Dog,”
KATRINA BRIDGES,
a/k/a “Trina,”
PAUL HERSHEWSKY,
a/k/a “Hersh,”
TYRELL IVORY,
a/k/a “Rell,”
JESSE KREBS, and
WILLIAM SOMERS,
a/k/a “Billy”
Life in prison
Mandatory minimum: 10 years in prison
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 28 grams or more of crack cocaine.)
TERRY COVINGTON
40 years in prison
Mandatory minimum:
five years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the descriptions of the Indictments set forth below constitute only allegations, and every fact described should be treated as an allegation.