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11 January 2017
Investment Bank Director Sentenced for Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEVEN MCCLATCHEY, a director at an investment bank in Manhattan (the “Investment Bank”), was sentenced today to five months in prison on securities fraud and wire fraud charges in connection with his provision of inside information used to trade in the stock of several companies. MCCLATCHEY pled guilty on July 12, 2016, and was sentenced today by United States District Judge Katherine Polk Failla.
According to the Complaint, Information, and statements made during court proceedings:
From in or about February 2014 through in or about September 2015, MCCLATCHEY and Gary Pusey participated in a scheme to commit insider trading in advance of and in connection with more than 10 separate mergers and acquisitions. MCCLATCHEY and Pusey were close friends who owned boats docked in a Long Island marina and who spent most Saturdays on their boats, at the marina, or playing pool and watching sports in MCCLATCHEY’s garage.
MCCLATCHEY learned about the deals as part of his employment with the Investment Bank, which generally advised either (i) the company to be acquired in the transaction; (ii) the acquiring company; or (iii) a company that ultimately lost a bid to acquire the company involved in the transaction.
Having learned the inside information about these impending transactions, MCCLATCHEY, in breach of fiduciary duties and other duties of trust and confidence owed to the Investment Bank and its clients, tipped Pusey so that Pusey could use the information to trade and with the expectation that Pusey would confer a benefit upon MCCLATCHEY. Among the benefits that MCCLATCHEY received as part of the insider trading scheme were thousands of dollars of cash payments by Pusey and the provision of home renovation services.
Pusey used the Inside Information that he received from MCCLATCHEY to make profitable trades in, among other securities: Forest Oil Corporation, Questcor Pharmaceuticals, Inc., Zygo Corporation, Pepco Holdings, Inc., Measurement Specialties, Inc., Entropic Communications, Inc., PetSmart, Inc., Emulex Corporation, Omnicare, Inc., and TECO Energy, Inc. Pusey reaped approximately $76,000 in ill-gotten gains from this scheme.
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In addition to the prison sentence, MCCLATCHEY, 58, was sentenced to two years of supervised release. The Court further ordered that MCCLATCHEY forfeit $76,000 and pay a fine of $10,000.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the U.S. Securities Exchange Commission for its assistance.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Rebecca Mermelstein is in charge of the prosecution.
Indiana Man Indicted for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Indiana man was indicted by a federal grand jury today for illegally possessing a firearm and ammunition.
Kristopher Shawn Martin, 34, of Brazil, Ind., was charged in a two-count indictment returned by a federal grand jury in Jefferson City, Mo.
Today’s indictment alleges that Martin was in possession of a loaded Browning .380-caliber handgun on Oct. 7, 2016, in Columbia, Mo. Martin is charged with one count of being a felon in possession of a firearm and ammunition, and one count of being an unlawful drug user in possession of a firearm and ammunition.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Martin has prior felony convictions for possessing cocaine, domestic battery and cruelty to animals.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Columbia, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Houston Trucking Dispatcher Pleads Guilty to Defrauding Oklahoma City Company and is Sentenced to Serve 15 Months in Federal PrisonRead the Press Release
Oklahoma City, Oklahoma – Today RICHARD V. KELLY, 44, of Houston, Texas, pleaded guilty to wire fraud and was sentenced by United States District Judge Robin J. Cauthron to 15 months in federal prison for using a wire fraud scheme to defraud Oklahoma City company of more than $1.2 million in false billings, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
Kelly was indicted on December 8, 2015, and entered his plea of guilty today. According to court records and information from the plea hearing, Kelly admitted that from December 2007 through August 2012, while he worked as a trucking dispatcher for Freeway Delivery, Inc., in Houston, Texas, he defrauded customer Midwest Hose & Specialty, an Oklahoma City company. Kelly admitted that he created false waybills and invoices for fictitious deliveries purportedly made by his wife, a truck driver who was also employed by Freeway Delivery. Kelly admitted that the false waybills and invoices showed deliveries being made for Midwest Hose to Houma, Louisiana, but that he knew no such deliveries were made. Kelly also admitted that he knew Midwest Hose would pay those invoices and that his wife would then be paid 65 to 70 percent of the total fee charged by Freeway Delivery. Finally, Kelly admitted that he created those false documents to obtain money for deliveries that never happened.
Kelly was sentenced today by Judge Cauthron to serve 15 months in federal prison and ordered to pay restitution of $1,212,320.13 to Midwest Hose. The Court also entered a money judgment in the amount of $809,115.50, directing Kelly to forfeit that amount to the United States. Kelly must report to federal prison on February 13, 2017.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney K. McKenzie Anderson.
Friendship Man Pleads Guilty to Meth ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jordan R. Doane, 28, of Friendship, NY, pleaded guilty before U.S. District Court Judge Lawrence J. Vilardo to conspiracy to manufacture, possess with intent to distribute, and to distribute, 50 grams or more of a mixture and substance containing methamphetamine. The charge carries a minimum penalty of five years in prison and a maximum of 20 years, and a $5,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that between January of 2011 and November of 2012, the defendant conspired to manufacture and distribute methamphetamine. Doane engaged in the practice of “smurfing” (buying small quantities) at local pharmacies to get around restrictions on purchasing products containing pseudoephedrine, an important chemical necessary in the methamphetamine manufacturing process.
The conviction is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major David Krause; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Division; the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb; the Wellsville Police Department, under the direction of Chief Timothy O’Grady; the U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Steven Oldma; and the New York State Department of Environmental Conservation, under the direction of Captain Frank Lauricella.
Sentencing is scheduled for May 2, 2017, before Judge Vilardo.
Former Racine Area Person Indicted for Filing False Tax ReturnsRead the Press Release
United States Attorney Gregory J. Haanstad announced that on January 10, 2017, a federal grand jury in Milwaukee returned an indictment against Tomeki L. Tyson (age 45), now of North Las Vegas, Nevada, and formerly of Racine, Wisconsin. Tyson is charged with twenty-one counts of making a false claim against the Internal Revenue Service (IRS) by filing false federal income tax returns which claimed refunds, in violation of Title 18, United States Code, Section 287.
The indictment alleges that during the period from approximately January 2009 until February 2015, the defendant defrauded and stole money from the IRS through filing fraudulent tax returns containing false employment, income, and tax withholding information, which claimed tax refunds in the names of various actual persons. The indictment further charges that the defendant filed more than 250 such false refund claims with the IRS over this period.
Each of the twenty-one false claim charges contained in the indictment carries a maximum possible penalty of up to five years in prison and a fine of up to $250,000, or both.
“IRS Criminal investigation is committed to rigorously pursuing thieves who steal from American taxpayers,” said IRS Criminal Investigation Special Agent in Charge Shea Jones of the St. Paul Field Office. “Today’s indictment should serve as a warning to thieves that we, along with our law enforcement partners and the United States Attorney's Office, will pursue those criminals and bring them to justice.”
This matter was investigated by the Internal Revenue Service Criminal Investigations Division, and has been assigned to Assistant United States Attorney Stephen A. Ingraham for prosecution.
The public is cautioned that an indictment is merely the formal method of presenting charges in federal court and does not constitute evidence of the defendant’s guilt. The defendant is presumed innocent until such time, if ever, as the government establishes her guilt beyond a reasonable doubt.
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Former Maryland Man Sentenced to 60 Years in Federal Prison for Production of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Christopher Michael Salisbury, age 38, of Long Beach, California, formerly of Maryland, today to the maximum sentence of 60 years in prison, followed by lifetime supervised release, for two counts of production of child pornography. Judge Russell ordered that Salisbury pay a fine of $250,000. Judge Russell also ordered that upon his release from prison, Salisbury must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Sean Ragan of the Criminal Division of the Federal Bureau of Investigation’s Los Angeles Field Office.
According to Salisbury’s plea agreement, between 2006 and 2013, while residing in Maryland, Salisbury sexually abused two minors, beginning when each victim was approximately five years old, and produced images and videos of himself and the minors engaged in sexually explicit conduct. Salisbury used video and photo editing software to assemble many of the videos documenting his sexual abuse of the victims into compilation videos that included music, text, and other editing.
Salisbury regularly accessed the internet through a network specifically designed to facilitate anonymous communication, commonly referred to as the “dark web.” Salisbury used the network to find and join a hidden website whose primary purpose was to advertise and distribute child pornography. Salisbury used the “dark web” and his membership in the hidden website to view, download, receive, and collect thousands of images and videos of child pornography.
Salisbury has been detained since his arrest on November 19, 2015.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended, the FBI Baltimore and Los Angeles Field Offices for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the federal case.
Evansville man sentenced for possession of child pornographyRead the Press Release
Created internet blog and shared child pornography files
PRESS RELEASE
Evansville – United States Attorney Josh J. Minkler announced today that Joshua J. Walker, 28 of Evansville, Indiana, was sentenced to 120 months in prison by U.S. District Judge Richard L. Young following his guilty plea to possession and distribution of child pornography. This case was the result of an investigation by the Federal Bureau of Investigation Violent Crimes Task Force and the Evansville Police Department.
October 19, 2016, at the time of his guilty plea, Walker admitted to the Court that he used file sharing software on numerous occasions to search for images of underage girls. Walker stated he used file sharing software to conduct searches and to download images depicting children under the age of eighteen (18) years old, engaged in sexual acts and/or poses. Walker also admitted that he created his own internet blog site that was used to share depictions of minors engaged in sex acts with blog members.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed 5 years of supervised release following Walker’s release from prison. Walker must register as a sex offender, must not have unsupervised contact with minors, and must participate in a sex offender treatment program while on supervision. The devices Walker used to commit the offenses must be forfeited to the government as a part of the sentence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
El Paso Man Sentenced to 12 Years in Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAUL CHAVEZ, 57, of El Paso, Texas, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 144 months of imprisonment, followed by five years of supervised release, for trafficking cocaine. CHAVEZ also was ordered to pay a $250,000 fine.
According to court documents and statements made in court, CHAVEZ headed a cocaine trafficking operation that smuggled cocaine from Mexico into El Paso, Texas, and then transported the drug to Connecticut and elsewhere. The investigation revealed that the Chavez organization had been supplying multiple kilograms of cocaine to Hartford-area distributors since approximately 2004. The shipments, which would typically be in the range of 30 to 40 kilograms, were sent regularly from El Paso multiple times per year.
In 2014, the Chavez organization attempted to find an additional source of supply for its Hartford area cocaine customers. In July 2014, a DEA confidential source met Andrew Duron, also known as “Chavo,” in North Carolina. During the meeting, Duron told the confidential source that he wanted to purchase up to 50 kilograms of cocaine for $28,000 per kilogram. On August 14, 2014, Duron, the confidential source and an undercover DEA agent met in New Jersey where Duron agreed to purchase 25 kilograms of cocaine. In subsequent conversations with the confidential source, Duron stated that he wanted an extra $1000 per kilogram as a side deal. They agreed on a total price of $725,000 for 25 kilograms of cocaine.
The investigation revealed that this cocaine shipment was destined for Tyshawn Welborn, also known as “Black,” of Bloomfield, and Todd Vernon of Hartford, the latter of whom prepaid for approximately 13 kilograms of cocaine.
On August 22, 2014, CHAVEZ and others met with Welborn at a restaurant in East Windsor where they discussed the pick-up of money from Welborn the following day and its delivery to a location to be determined.
On August 23, 2014, Duron met the undercover DEA agent at a location in Wethersfield. Duron told the undercover agent that his associates were in Connecticut and that Duron and the undercover agent would need to travel to a store parking lot near Bradley International Airport to verify that the money was in place. Duron and the undercover agent then drove in separate vehicles to a store parking lot on Kennedy Road in Windsor. Duron met with CHAVEZ and another associate in the store. A short time later, a third associate arrived in a Jeep Wrangler, met the undercover agent in the parking lot, showed him a duffel bag and said it contained “half” of the money. Shortly thereafter, investigators arrived at the scene and arrested Duron, CHAVEZ and his associates.
Investigators also recovered from the Jeep a duffel bag containing approximately $284,000 in cash, and a loaded .38 caliber revolver. The cash had been picked up from Welborn earlier that day.
After word reached CHAVEZ’s son, Christopher Chavez, that his father and others had been arrested, Christopher Chavez coordinated the diversion of a shipment of 34 kilograms of cocaine, which was en route to Connecticut, to a high-level drug distributor in Cleveland, Ohio.
CHAVEZ has been detained since his arrest. On March 11, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
Duron, Welborn, Vernon and Christopher Chavez also pleaded guilty. On September 22, 2015, Duron, of El Paso, was sentenced to 84 months of imprisonment; on October 7, 2016, Christopher Chavez, of El Paso, was sentenced to 60 months of imprisonment, and on December 21, 2016, Welborn was sentenced to 84 months of imprisonment. Vernon awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration’s Hartford Task Force, including personnel from the DEA Hartford Resident Office and the Bristol, Hartford, Manchester, New Britain, Newington, and Wethersfield Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and Amy C. Brown.
During National Slavery and Human Trafficking Prevention Month, U.S. Attorney's Office Highlights District's Efforts to Combat Human Trafficking and Raise Awareness with Community Outreach, Training and Federal ProsecutionsRead the Press Release
CHARLOTTE, N.C. – In recognition of January as National Slavery and Human Trafficking Prevention Month, United States Attorney Jill Westmoreland Rose highlighted the efforts of the U.S. Attorney’s Office to combat human trafficking and to raise awareness through community outreach, training and federal prosecutions.
“Human trafficking is one of the most inhumane and depraved crimes that can be inflicted upon a person. Whether subjected to forced labor or forced to engage in commercial sex, trafficked victims are reduced to a status less than human, their worth measured by how profitable they are to their traffickers. In the Western District, our federal prosecutions have resulted in lengthy prison sentences for perpetrators brought to justice. But we must do more. Traffickers pray upon the most vulnerable members of our society, looking to benefit from their exploitation. There isn’t a state, city, town or community shielded from human trafficking and its devastating impact. As part of our anti-trafficking strategy, we have focused on forging strong partnerships throughout the district, and we are working with community organizations and our law enforcement partners to raise awareness and to educate the public about the epidemic of human trafficking,” said U.S. Attorney Rose.
In 2016, the U.S. Attorney’s Office partnered with the Charlotte Metropolitan Human Trafficking Task Force and federal, state, and local agencies and law enforcement to provide training on human trafficking and victim identification to professionals whose work may bring them in contact with victims of trafficking. This included emergency room physicians and nurses, hospitality industry employees, public defenders, youth and family services case workers with the Department of Social Services, and members of multiple faith-based organizations and community groups. Though tailored to address each group’s specific needs, the goal of the training was to enhance participants’ understanding of human trafficking, to educate them on recognizing the indicators, or “tell-tale signs,” of trafficking victims, to familiarize them with accessing services available to rescued victims, and to highlight best practices for reporting trafficking activity and supporting law enforcement in combating human trafficking.
In 2016, the U.S. Attorney’s Office’s anti-trafficking efforts also resulted in significant prosecutions. In February 2016, Martin Allen Meggett was sentenced to 10 years in prison after pleading guilty for the sex trafficking of a minor. In April 2016, a federal jury convicted Kenwaniee Vontorian Tate for the sex trafficking of a minor. His sentencing hearing has been scheduled for January 25, 2017. And, in May 2016, Shahid Hassan Muslim was sentenced to life in prison for operating an extensive sex trafficking enterprise that recruited women and underage girls into prostitution.
“While our successes are many and notable our work against human trafficking continues,” said U.S. Attorney Rose.
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If you believe you are the victim of a trafficking situation or may have information about a potential trafficking situation, call the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week, every day of the year related to potential trafficking victims, suspicious behaviors, and/or locations where trafficking is suspected to occur. You can also submit a tip to the NHTRC online.
You can also contact ICE-Homeland Security Investigations at 1-866-DHS-2-ICE (1-866-347-2423) or the Charlotte Office of the FBI at 704-672-6100.
Drug Trafficker Sentenced to 196 Months in PrisonRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of EDUARDO PENALOZA-ROMERO, 27, to 196 months in prison after pleading guilty last year to conspiracy to distribute methamphetamine and marijuana. PENALOZA-ROMERO was sentenced before U.S. District Judge Susan Richard Nelson in U.S. District Court in Saint Paul, Minn.
“HSI’s collaboration with our federal, state and local law enforcement partners continues to yield significant results in Minnesota,” said Alex Khu, special agent in charge of HSI St. Paul. “Individuals like Mr. Penaloza, who conspire to flood our communities with dangerous and illicit drugs, can expect to face serious consequences. HSI will continue to seek them out and dismantle the entire criminal organization.”
According to PENALOZA-ROMERO’s guilty plea and documents filed in court, between at least November 2013 and August 2014, he conspired with others to distribute methamphetamine and marijuana. At various times during the indicted period, PENALOZA-ROMERO sold controlled substances to law enforcement, including one pound of methamphetamine on November 15, 2013, and one pound of marijuana on January 15, 2014.
According to the defendant’s guilty plea and documents filed in court, in August 2014, PENALOZA-ROMERO arranged for methamphetamine to be trafficked from California to Minnesota. Approximately 8 pounds of methamphetamine was recovered from a vehicle transporting that methamphetamine into Minnesota.
According to the defendant’s guilty plea and documents filed in court, when law enforcement executed a search warrant at PENALOZA-ROMERO’s home on September 24, 2014, law enforcement recovered a semiautomatic pistol and more than 2.5 pounds of methamphetamine in both crystal and liquid form.
The case was prosecuted by Assistant United States Allen Slaughter and was the result of an investigation conducted by Homeland Security Investigations, in collaboration with the Anoka County Drug Task Force, the Drug Enforcement Administration, the Fridley Police Department, the Minneapolis Police Department, the Minnesota State Patrol, the Ramsey County Violent Crime Enforcement Team, the Saint Paul Police Department, and the Spring Lake Police Department.
Defendant Information:
EDUARDO PENALOZA-ROMERO, 27
Spring Lake Park, Minn.Convicted: • Conspiracy to distribute methamphetamine and marijuana, 1 count
Sentenced: • 196 months in prison
District Man Sentenced to 10 1/2-Year Prison Term for Series of Hold-Ups of Convenience StoresRead the Press Release
WASHINGTON – Melvin Smith, 45, of Washington, D.C., was sentenced today to a 10 ½-year prison term for a series of robberies of convenience stores last summer in Northeast and Northwest Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
Smith pled guilty in November 2016 to three counts of robbery and was sentenced today in the Superior Court of the District of Columbia by the Honorable Danya A. Dayson. Following completion of his prison term, he will be placed on three years of supervised release.
In entering his guilty plea, Smith admitted to robbing six convenience stores in just over four weeks. According to the government’s evidence, the robberies included these crimes:
-Aug. 19, 2016, approximately 1:40 a.m.: Smith entered a 7-Eleven store in the 1200 block of Brentwood Road NE, approached a store clerk, and demanded access to the cash register. He then took approximately $50 before fleeing.
-Sept. 6, 2016, approximately 10:55 p.m.: Smith entered the 7-Eleven store in the 1300 block of Second Street NE. He approached a cashier and reached into two cash registers, taking approximately $430 before fleeing.
- Sept. 10, 2016, approximately 2:10 a.m.: Smith entered the 7-Eleven store in the 4800 block of Nannie Helen Burroughs Avenue NE and displayed an object on his right hip, which store personnel believed to be a handgun. He proceeded to the cash registers, demanded that they be opened, and took an unspecified amount of cash before fleeing.
-Sept. 12, 2016, approximately 8:45 p.m.: Smith entered the 6 & Q Market, in the 500 block of Q Street NW. Wearing a mask, he ordered a store clerk to the cash register. When the clerk responded that he did not have a key to the register, Smith grabbed the entire register, which contained an unknown amount of cash, and fled.
-Sept. 13, 2016, approximately 1:30 a.m.: Smith returned to the 7-Eleven on Second Street NE. According to a store clerk, he was carrying what appeared to be a silver gun in his waistband and demanded cash from the cash register. Smith then removed approximately $100 from the store’s two cash registers and fled.
-Sept. 18, 2016, approximately 9:45 p.m.: Smith entered a 7-Eleven store in the 900 block of Bladensburg Road NE. Wearing a mask, he displayed what the clerk believed to be a dark gun in his waistband and demanded that the clerk open the register. Smith then proceeded to take money from both of the registers, before fleeing.
Smith was arrested on Sept. 19, 2016. When he was arrested, Smith was found to be in possession of a unique mask and bandana that surveillance video confirmed were used in the robberies. He has been in custody since his arrest. The guilty plea specified the offenses that were committed on Aug. 19, Sept. 6, and Sept. 12, 2016.
In announcing the sentence, U.S. Attorney Phillips and Acting Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of Assistant U.S. Attorney Richard Barker, who investigated and prosecuted the case.
Dillwyn Man Sentenced to 30 Months in Federal Prison on Child Pornography ChargeRead the Press Release
Lynchburg, VIRGINIA – A local man, who pled guilty in September 2016 to illegally possessing images of child pornography, was sentenced yesterday in the United States District Court for the Western District of Virginia in Lynchburg, Acting United States Attorney Rick A. Mountcastle announced.
Phillip Dale Mahlkuch, 60, of Dillwyn, Va., previously pled guilty to one count of knowingly possessing material that contained one or more images of child pornography. Yesterday in the United States District Court for the Western District of Virginia in Lynchburg, Mahlkuch was sentenced to 30 months in federal prison and five years of supervised release thereafter. In addition, he was ordered to pay a special assessment of $100 and a fine of $7,500.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement Homeland Security Investigations, the United States Postal Inspection Service and the Buckingham County Sheriff’s Department. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Department of Justice to Announce Consent Decree with City of BaltimoreRead the Press Release
****** MEDIA ADVISORY ******
Attorney General Lynch Will Also Deliver Capstone Speech on Community Policing
Attorney General Loretta E. Lynch will travel to Baltimore THURSDAY, JAN. 12, to announce a consent decree with the City of Baltimore.
Later that day, the Attorney General will deliver a capstone speech on community policing that will outline the Justice Department’s efforts to highlight collaborative programs and policing practices in jurisdictions around the country that are dedicated to advancing public safety, strengthening police-community relations, and fostering mutual trust and respect.
PRESS CONFERENCE WITH THE CITY OF BALTIMORE
WHO: Attorney General Loretta E. Lynch
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice
Department’s Civil Rights Division
Baltimore Mayor Catherine Pugh
Commissioner Kevin Davis of the Baltimore City Police Department
WHAT: Press conference to announce a consent decree with the city of Baltimore.
WHEN: THURSDAY, JANUARY 12, 2017
10:30 a.m. EST
WHERE: Baltimore City Hall
Ceremonial Room
250 City Hall, 100 N. Holliday St.
Baltimore, MD 21202
OPEN PRESS (Camera Preset by for K9 Sweep: 9:45 a.m. EST //
Final Access: 10:10 a.m. EST)
NOTE: All media must present government-issued photo I.D. (such as a driver’s license as well as valid media credentials). Press inquiries regarding logistics should be directed to Anthony McCarthy at [email protected] or (443) 902-1763.
COMMUNITY POLICING CAPSTONE SPEECH AT THE UNIVERSITY OF BALTIMORE SCHOOL OF LAW
WHAT: Attorney General Loretta E. Lynch will deliver her capstone speech on community policing.
WHO: Attorney General Loretta E. Lynch
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division
Director Ronald Davis of the Office of Community Oriented Policing Services
WHEN: THURSDAY, JANUARY 12, 2016
4:00 p.m. EST
WHERE: University of Baltimore School of Law
John and Frances Angelos Law Center
Moot Courtroom
1401 N. Charles St.
Baltimore, MD 21201
OPEN PRESS (Camera Preset by for K9 Sweep: 1:15 p.m. EST //
Final Access: 3:45 p.m. EST)
NOTE: Media should RSVP to [email protected]. Questions regarding logistics should go to the Office of Public Affairs. All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials.Denver Woman Sentenced to Federal Prison for Conspiracy to Defraud the IRSRead the Press Release
DENVER – Sherry Charleston, age 41, of Denver, Colorado was recently sentenced by Chief U.S. District Court Judge Marcia S. Krieger to serve 18 months in prison followed by 3 years of supervised release for conspiracy to defraud the Internal Revenue Service, announced the United States Attorney’s Office, IRS Criminal Investigation and Social Security Administration Office of Inspection General. Charleston was also ordered to pay $16,541 in restitution to the IRS.
Jaquon Mucsarney and co-conspirator, Sherry Charleston were indicted by a Federal Grand Jury in Denver on January 7, 2016 for mail fraud, conspiring to defraud the government, false claims, aggravated identity theft and obstruction of justice. Jaquon's mother, Schosche Mucsarney, who was indicted on similar charges, pled guilty and was sentendced on November 22, 2016. Charges against Jaquon Mucsarney are still pending.
According to the indictment and plea agreement, from January 14, 2015 and continuing through October 27, 2015, Charleston assisted Jaquon in a scheme to defraud the Internal Revenue Service by attempting to cause tax refund checks to be issued from the United States Treasury based on false information provided in tax returns filed with the IRS. Charleston aided Jaquon in a variety of ways during the scheme including helping in the creation of fictitious companies and the issuance of Employment Identification Numbers (“EINs”), assisting in the filing of false corporate income tax returns, and assisting in the receipt, collection and disbursement of impermissibly obtained IRS refunds.
As part of the scheme, Charleston opened a business bank account in the name of one of the shell companies she created and deposited IRS refund checks into the account. She typically directed some of the refund money to Jaquon’s inmate account at the prison where he was incarcerated on state charges. Jaquon, with Charleston’s assistance, caused approximately 13 tax returns to be filed with the IRS containing false information in order to claim refunds totaling $119,934.
To further obstruct and impede the IRS, on February 12, 2015, Charleston provided false and misleading information to an IRS Special Agent investigating Jaquon’s activities. Additionally on June 22, 2015, Charleston, on Jaquon’s advice and counsel, intentionally failed to appear for testimony before a Federal Grand Jury.
This case was investigated by the Internal Revenue Service – Criminal Investigation and Social Security Administration – Office of Inspection General. This case was prosecuted by Assistant United States Attorney Tim Neff.
Crack Cocaine Sends Local Man to PrisonRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Corpus Christi man has been ordered to federal prison following his conviction of possession with intent to distribute cocaine base, commonly known as crack cocaine, announced U.S. Attorney Kenneth Magidson. Gilbert Bustamante pleaded guilty Aug. 4, 2016.
Today, U.S. District Judge Nelva Gonzalez Ramos handed Bustamante a 77-month sentence to be immediately followed by four years of supervised release.
On March 2, 2016, law enforcement officers were attempting to locate and arrest a wanted individual at Bustamante’s residence in Corpus Christi. When Bustamante opened the door, officers detected the odor of marijuana inside the residence. Based on the odor, law enforcement officers obtained and executed a search warrant. During that search, officers discovered 47 grams of cocaine base, a digital scale, approximately $5,000 in U.S. currency and a .38 caliber handgun.
In federal custody since his arrest, Bustamante will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Lance Watt prosecuted the case.
Columbia Man Indicted for Child PornRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was indicted by a federal grand jury today on charges related to child pornography.
Brandon Lee Deavers, 22, of Columbia, was charged in a two-count indictment returned by a federal grand jury in Jefferson City, Mo. State charges filed against Deavers in a related case will be dismissed in lieu of the federal indictment.
Today’s indictment alleges that Deavers received and distributed child pornography over the Internet from July 1 to Oct. 19, 2016. Deavers is also charged with accessing with the intent to view child pornography during that period of time.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI and the Boone County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Collin County Woman Sentenced for Federal Income Tax ViolationsRead the Press Release
SHERMAN, Texas – A 44-year-old McKinney, Texas woman has been sentenced to federal prison for income tax violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Sandra Ayanna Morgan pleaded guilty on July 11, 2016 to filing a false income tax return and was sentenced to 18 months in federal prison today by U.S. District Judge Marcia A. Crone. Morgan was also ordered to pay restitution in the amount of $152,471.
According to information presented in court, Morgan was in the business of preparing federal income tax returns and admitted to preparing and presenting to the Internal Revenue Service, a United States Individual Income Tax Return Form 1040, of another individual for calendar year 2010. The return falsely represented that the taxpayer was entitle to claim deductions for losses from a business on Schedule C and losses for rental property on Schedule E. In addition, Morgan knowingly and willfully prepared false and fraudulent tax returns for a number of individuals for tax years 2009, 2010, 2011, and 2012. Those tax returns claimed fraudulent tax deductions for the taxpayers for things such as Education Credits, American Opportunity Credits, Charitable Contributions, Unreimbursed Employee Expenses, Medical and Dental Expenses, Loses for Rental Property, and Losses from a Business. The taxpayers did not represent to Morgan that they were entitled to the tax credits or deductions, and Morgan knew the representations in the tax returns were false and material.
The total tax loss, to the Internal Revenue Service, that resulted from these false tax returns was $152,741.
This case was investigated by the Internal Revenue Service Criminal Investigations and was prosecuted by Assistant U.S. Attorney Andy Williams.
Champaign Man Sentenced for Bank Robberies in East Central Illinois and IndianaRead the Press Release
Urbana, Ill. – A Champaign, Ill., man, Darryl S. Coleman, 30, of the 1200 block of Joanne Lane, has been ordered to serve a total of 137 months (11 years, 5 months) in federal prison for bank robberies in east central Illinois and northwestern Indiana that occurred in October and November 2015.
Coleman appeared yesterday before U.S. District Judge Colin S. Bruce, in Urbana. Judge Bruce ordered that Coleman serve 115 months in prison for the bank robberies at First Financial Bank, Champaign, on Oct. 28, 2015; First Bank in Rantoul on Nov. 10; First Midwest Bank, Danville, on Nov. 17; and, attempted robbery of the Farmers-Merchants National Bank in Paxton, Ill., on Dec. 1, 2015. Judge Bruce ordered that a portion of Coleman’s sentence, 22 months, be served consecutive to the sentence ordered in Indiana.
On June 16, 2016, Coleman was sentenced in the Northern District of Indiana to 63 months in federal prison for robberies of the Horizon Bank in Portage, Ind., on Nov. 2, 2015, and the First State Bank of Porter in Chesterton, Ind. on Nov. 24, 2015.
Coleman was also ordered to pay restitution in the total amount of $20,986; restitution of $9,930 for the Illinois bank robberies, and $11,056 for the bank robberies in Indiana.
Supervisory Assistant U.S. Attorney Eugene L. Miller prosecuted the case in the Central District of Illinois, Urbana Division. The charges were investigated by the FBI and the Champaign, Danville, Rantoul and Paxton Police Departments in east central Illinois.
Coleman has remained in the custody of the U.S. Marshals Service since his arrest on Jan. 25, 2016. Coleman pled guilty to the bank robberies in Illinois in September 2016; he entered his plea of guilty to the Indiana bank robberies in March 2016.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Ronnie Ortiz, 39, of Buffalo, NY, who was convicted of attempt to possess with intent to distribute cocaine, was sentenced to 14 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Patricia Astorga, who handled the case, stated that on July 18, 2016, the United States Postal Inspection Service obtained a federal search warrant for a postal parcel that was addressed to 14 Warren Avenue in Buffalo that was mailed from Canovanas, Puerto Rico. The search revealed that the parcel contained approximately nine ounces of cocaine. The cocaine was removed from the package and replaced with sham cocaine and an electronic transmitter that would alert agents to the opening of the parcel was installed.
On July 20, 2016, an undercover U.S. Postal Inspector, acting as a mail carrier, delivered the parcel to Ortiz who signed for it and took it into the residence. Minutes later, the electronic transmitter indicated the parcel had been opened. Agents went into the residence and arrested the defendant.
The sentencing is the culmination of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Bronx Tax Preparer Sentenced to More Than 7 Years in Prison for Stealing Millions of Dollars from the U.S. Treasury Using Fraudulent Tax ReturnsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Kathy A. Enstrom, Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations (“IRS-CI”), announced that FLOR SOTO, an associate of K&S Tax Solution, Inc. (“K&S”), was sentenced today to 87 months in prison by the United States District Judge Kimba M. Wood. Soto had previously pled guilty to theft of public funds in connection with her participation in a lucrative scheme to file fraudulent and false tax returns, so as to receive tax refunds in the form of checks and wire transfers. Together with others at K&S, SOTO successfully stole over $24 million in tax refunds by submitting false tax returns using stolen identities, most of which had been stolen from residents of Puerto Rico. To date, 14 employees and associates of K&S, in addition to SOTO, have been convicted in connection with this scheme.
Manhattan U.S. Attorney Preet Bharara said: “Flor Soto and her co-defendants stole an astounding $24 million in tax refunds from the U.S. Treasury, using stolen identities to file false tax returns. Thanks to the hard work of the investigators at the IRS-CI and the prosecutors in this Office, 14 defendants charged with this audacious scheme have been held to account.”
IRS-CI Acting Special Agent in Charge Kathy A. Enstrom said: “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers as well as defrauding the government and the American taxpayers. Individuals like Flor Soto who commit identity theft and refund fraud of this magnitude will be held accountable and deserve to be punished to the fullest extent of the law.”
According to the Superseding Indictment, other documents filed in Manhattan federal court, statements made at sentencing and related court proceedings, and as established at the trial of SOTO’s co-conspirator Eliana Sarmiento, who was convicted on September 23, 2016:
Between 2008 and February 2013, SOTO and others at K&S perpetuated a large-scale fraud upon the IRS and the United States Treasury, through the filing of fraudulent and false tax returns, so as to receive tax refunds in the form of checks and wire transfers. Certain employees and associates of K&S obtained electronic filing identification numbers, or EFINs, for the purpose of filing hundreds of electronic tax returns. Those EFINs were obtained under the names and Social Security Numbers (“SSNs”) of the victims of the defendants’ identity theft scheme. SOTO and her co-conspirators used those EFINs to file tax returns bearing the names and SSNs of still more victims of identity theft. Finally, SOTO and employees of K&S used the stolen identities of children as false “dependents” on the tax returns of certain clients of K&S. SOTO acted as a recruiter of other scheme participants and a primary source of stolen identities.In these ways, SOTO and others at K&S obtained millions of dollars from the U.S. Treasury. To date, and based on a subset of EFINs associated with SOTO and her co-conspirators at K&S, the IRS has identified $281,348,627 in attempted fraudulent returns.
* * *
In addition to the prison sentence, SOTO, 53, of Brooklyn, New York, was sentenced to three years of supervised release. Judge Wood also ordered SOTO to forfeit $24,719,724 in ill-gotten gains.
Mr. Bharara praised the IRS-CI for its work in the investigation. Mr. Bharara also expressed his appreciation to the United States Secret Service for its assistance in the investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Eun Young Choi and Andrew C. Adams are in charge of the prosecution.
Boston Man Pleads Guilty to Multiple Bank RobberiesRead the Press Release
BOSTON – A Boston man pleaded guilty today in U.S. District Court in Boston to multiple bank robberies throughout the Boston area.
Jeremy D. Woodley, 38, pleaded guilty to three counts of bank robbery. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for April 5, 2017.
On May 5, 2016, an individual later identified as Woodley, entered a branch of the Santander Bank in Boston, handed the teller a demand note indicating a robbery and that he was armed. The teller gave Woodley $599, and he fled the bank. A similar robbery occurred on May 17, 2016, at a different Santander Bank branch, and again on May 21, 2016, at a branch of Commerce Bank in Boston. The perpetrator stole $927 and $1,995, respectively.
Following the May 21st robbery, witnesses observed Woodley exit the bank and enter the rear passenger door of an awaiting motor vehicle. Law enforcement officers observed the vehicle and, after a brief chase, arrested Woodley. At the time of his arrest, Woodley was in possession of the cash stolen from Commerce Bank.
The charging statue provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing guidelines and other statutory factors
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation; and Boston Police Commissioner William Evans, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit is prosecuting the case.
Bath Man Sentenced to a Year and a Day for Attempting to Transfer Obscene Matter to MinorRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Garrett Brosnan, 25, of Bath, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to one year and one day in prison and two years of supervised release for attempting to transfer obscene matter to a minor. Brosnan pleaded guilty to the offense on September 14, 2016.
According to court records, in May of last year, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) were investigating a report that an unknown adult male had an inappropriate online interaction with a minor girl in Arizona. Investigators obtained information suggesting that the male was Brosnan. An HSI investigator in Arizona initiated an undercover online conversation with Brosnan in late May. The investigator said she was a 14-year-old girl from Arizona. On June 2, Brosnan sent the investigator a picture of himself exposing his penis.
The investigation was conducted by HSI offices in Maine and Arizona.
Barbour County man pleads guilty to illegal possession of firearmsRead the Press Release
ELKINS, WEST VIRGINIA – Roy Thomas Schroeder, 46, of Volga, West Virginia, was convicted of illegally possessing firearms, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Schroeder admitted to possessing two .22 caliber revolvers and a .22 caliber rifle after a protective order had been issued against him by the Barbour County Magistrate Court. He pled guilty to one count of “Unlawful Possession of a Firearm” and faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, and the Barbour County Sheriff’s Office investigated.
Arizona Woman Pleads Guilty to Federal Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Karla Margarita Pena, 28, of Phoenix, Ariz., pled guilty today in federal court in Albuquerque, N.M., to a heroin trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Pena was arrested in Aug. 2016, and charged in a criminal complaint with a heroin trafficking offense after the DEA seized approximately 561.90 grams of heroin from her during an interdiction investigation at the Greyhound Bus Station in Albuquerque. The heroin was contained in bundles concealed in Pena’s luggage.
Pena was subsequently indicted on Aug. 23, 2016, and charged with possession of heroin with intent to distribute on Aug. 12, 2016, in Bernalillo County, N.M.
During today’s proceedings, Pena pled guilty to a felony information charging her with possession of heroin with intent to distribute. In entering the guilty plea, Pena admitted transporting 561.90 grams of heroin to Albuquerque by concealing the heroin in bundles in a purse inside of a duffel bag. At sentencing, Pena faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting this case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
10 January 2017
Wichita Man Pleads Guilty in Armed RobberyRead the Press Release
WICHITA, KAN. B A Wichita man pleaded guilty Tuesday of brandishing or aiding and abetting another robber who brandished a firearm during a bank robbery, U.S. Attorney Tom Beall said.
Andre Bryant, 30, Wichita, Kan., pleaded guilty to one count of aiding and abetting or brandishing a firearm in a crime of violence. In his plea, he admitted that on June 13, 2016, he and co-defendants robbed the Carson Bank at 4461 E. Douglas in Wichita. Two individuals who were disguised entered the bank, one of them brandishing a firearm. They demanded and received money before fleeing. The money they received contained a global positioning device that police used to track Bryant and the co-defendants and arrest them.
Bryant is set for sentencing April 10. Both parties have agreed to recommend a sentence of 84 months in federal prison.
Co-defendants Raishat Magill and Elijah Shelton are awaiting trial.
Beall commended the Wichita Police Department, the Sedgwick County Sheriff’s Department, the FBI and Assistant U.S. Attorney Aaron Smith for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Vice President of Local Drywall Company Pleads Guilty to Income Tax FraudRead the Press Release
COLUMBUS, Ohio – Robert E. Porter, 53, of Westerville, Ohio pleaded guilty to filing a false income tax return with the Internal Revenue Service (IRS). Porter faces a maximum of three years in prison and a fine of up to $250,000.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Troy N. Stemen, Acting Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, James Vanderberg, Special Agent in Charge, the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, Brad Geary, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General, and Marlon Miller, Special Agent in Charge, Homeland Security Investigations announced the guilty plea entered before U.S. District Judge Michael. H. Watson.
According to court documents, between 2009 and 2013 Porter was the Vice President of Porter Drywall and was also the Vice President of Black Star Drywall, Inc. Porter Drywall contracted to provide drywall installation and drywall supplies to residential and commercial contractors in Central Ohio. As well as being Vice President, Porter was a jobsite supervisor and estimator for Porter Drywall’s private and corporate clients.
Porter diverted numerous customer payments to his personal bank account. Acting on behalf of Porter Drywall, Porter provided estimates for certain projects and assigned Porter Drywall’s employees and/or subcontractors to complete the work. On “diverted income” projects, all expenses, including labor and materials, were incurred by Porter Drywall and all revenue/payments generated were deposited into Porter’s personal bank account.
“Income tax fraud is not a victimless crime,” said Troy N. Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Individuals who corruptly violate the law to further their business interests and intentionally evade paying their fair share of taxes undermine public confidence in our tax system and unfairly disadvantage businesses that play by the rules.”
Porter has also agreed to ensure that Porter Drywall subscribes to proper governmental forms and otherwise complies with all tax and immigration laws with respect to its employees.
U.S. Attorney Glassman commended the investigation of this case by the IRS, U.S. Department of Labor, U.S. Department of Housing and Urban Development, and Homeland Security Investigations, and Assistant U.S. Attorney Daniel A. Brown, who is prosecuting the case.
U.S. National Charged with Attempted Murder of U.S. Consulate Official in MexicoRead the Press Release
A U.S. national was deported from Mexico to the United States and arrested yesterday on a criminal complaint charging him with the attempted murder of a diplomat stationed at the U.S. Consulate in Guadalajara, Mexico.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service (DSS) made the announcement.
Zia Zafar, 31, of Chino Hills, California, was charged by criminal complaint with one count of attempted murder of an internationally protected person. Zafar made his initial appearance in federal court today and is scheduled for a detention hearing on Jan. 13, 2017, before U.S. Magistrate Judge John F. Anderson of the Eastern District of Virginia.
According to the criminal complaint, on Jan. 6, 2017, Zafar disguised himself and followed the Vice Consul of the U.S. Consulate in Guadalajara through a parking garage to his vehicle. After the Vice Consul got into his car and drove towards the garage exit, Zafar allegedly shot him once in the chest and fled. The Vice Consul was taken to a local hospital, where he currently remains. Zafar was subsequently detained by Mexican authorities.
The charges in the criminal complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The FBI and DSS are investigating the case in close cooperation with Mexican authorities and with assistance from the Justice Department’s Office of International Affairs, Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney William M. Sloan of the Eastern District of Virginia are prosecuting the case.
The Department of Justice gratefully acknowledges the government of Mexico, to include the Secretaría de Relaciones Exteriores, Procuraduria General de la Republica, Fiscalia del Estado de Jalisco and Instituto Nacional de Migracion for their extraordinary efforts, support and professionalism in responding to this incident.
U.S. Attorney Wifredo Ferrer Speaks About Human Trafficking in Washington, DC to Commemorate National Slavery and Human Trafficking Prevention MonthRead the Press Release
As part of National Slavery & Human Trafficking Prevention Month, Attorney General Loretta E. Lynch yesterday announced the Justice Department’s National Strategy to Combat Human Trafficking (National Strategy), as required by the 2015 Justice for Victims of Trafficking Act. U.S. Attorney for the Southern District Florida Wifredo A. Ferrer joined Attorney General Lynch for her announcement regarding the National Strategy and participated in a panel discussion about human trafficking.
“The U.S. Attorney’s Office for the Southern District of Florida is honored to have been selected as a participating member of the Justice Department’s Anti-Trafficking Coordination Teams and the Federal South Florida Human Trafficking Task Force,” stated U.S. Attorney Wifredo A. Ferrer. “These invaluable partnerships have offered the survivors assistance in connection with hard-fought criminal prosecutions and protected others from falling victim to modern-day slavery and trafficking schemes. Only through our ongoing collaboration, expanded partnerships and the implementation of prevention and enforcement strategies can we eradicate the human trafficking problem. Until then, we will continue to stand up as the outspoken voice on behalf of the victimized and against the accused, in order to hold those accountable in federal court who use fraud, force or other illicit means to victimize others. But, we cannot do this important work – alone. We rely on the members of our diverse community to continue to raise public awareness and report suspected trafficking.”
Since being appointed as U.S. Attorney for the Southern District of Florida in 2010, Wifredo A. Ferrer has made the identification and prosecution of human traffickers a priority for the Office. The Special Prosecution’s Section of the U.S. Attorney’s Office focuses on the protection of some of the most vulnerable segments of our diverse population. The Section has helped to oversee the district’s Human Trafficking and Project Safe Childhood Programs (PSC), and the Office’s Violence Reduction Partnership (VRP) Program, while prosecuting cases involving victims of violent crimes (resulting in death or serious bodily injury), human trafficking, child exploitation, and other criminal offenses. 2010, the U.S. Attorney’s Office for the Southern District of Florida has prosecuted 84 offenders in 50 human trafficking cases. These cases collectively involved the victimization of more than 70 survivors of human trafficking.
In 2011, the U.S. Department of Justice selected the Southern District of Florida as one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Labor and Homeland Security to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.
The Federal South Florida Human Trafficking Task Force, led by the U.S. Attorney’s Office and Homeland Security Investigations, works to increase public awareness, rescue victims, and prosecute traffickers. The Task Force is composed of federal agencies including, the Federal Bureau of Investigation (specifically its Crimes Against Children Task Force), State Department’s Diplomatic Security Service, U.S. Department of Labor and Internal Revenue Service. Many state and local law enforcement entities in South Florida, such as the Miami-Dade Police Department and Broward County Sheriff’s Office, are supportive task force members. Additionally, the Task Force partners with non-law enforcement entities, including the Florida Department of Children and Families, service providers, victim advocates, faith-based organizations, academic representatives and community members. In 2016, the Task Force included more than 120 non-law enforcement members. Last year alone, ACTeam and Task Force members participated in more than 140 human trafficking community outreach events.
The U.S. Attorney’s Office for the Southern District of Florida and its ACTeam is fully committed to using proactive means to combat labor, human and sex trafficking schemes. Prior to 2011, most of the human trafficking prosecutions handled by the U.S. Attorney’s Office in South Florida involved the trafficking of minor victims. Presently, the U.S. Attorney’s Office for the Southern District of Florida prosecutes more human trafficking cases involving adult survivors than ever before. The U.S. Attorney’s Office has also increased the number of human trafficking cases prosecuted in recent years.
The following are a few of the notable prosecutions that resulted from the district’s anti-trafficking collaboration:
1. Southern District Handles First Sex Trafficking by Fraud Prosecution
In 2011, Lavont Flanders and Emerson Callum were charged with sex trafficking by fraud, among other charges (Case No. 11-CR-20557-KMM). The defendants falsely and fraudulently lured women to Miami for supposed modeling auditions. Once the women arrived, they were provided with a drink that, unbeknownst to the victims, had been laced with Xanax. The women were then filmed engaged in sexual acts with Callum, who owned an adult pornography business. The victims had no idea that the defendants subsequently sold the video footage for profit. Both defendants were convicted of all criminal charges and sentenced to life in prison.
2. The Southern District Has Obtained Significant Victim Restitution Orders
In United States v. Israel Cortes-Morales, et al., Case No. 11-CR-20005-DPG, the defendants pled guilty to participating in a human trafficking conspiracy. A Miami federal judge ordered the defendants to pay $1.2 million in restitution to the five sex trafficking victims.
Thereafter, in another human trafficking case, Rafael Alberto Cadena-Sosa, a Mexican national, was sentenced in West Palm Beach to 15 years in prison and ordered to pay $1,261,563 in victim restitution for his participation in a family run sex trafficking organization (Case No. 98-CR-14015-JEM). Cadena-Sosa pleaded guilty and admitted that he, along with other family members, approached women and girls in Mexico, as young as 14 years of age, and lured them into the U.S. using false promises of legitimate jobs. The trafficking ring imposed a smuggling debt and used brutal violence and threats to compel the victims to engage in prostitution.
3. Southern District Prosecuted First Sex Trafficking Case in Country Based on Extraterritorial Jurisdiction
In 2014, Damion St. Patrick Baston, a native of Jamaica, was sentenced to 27 years in prison after having been convicted at trial of trafficking several women through Miami, Australia and the Middle East for the purpose of prostitution.(Case No. 13-CR-20914-CMA). Baston was also ordered to pay $499,270.00 in restitution to the victims. This was the first case in the country to charge the extraterritorial provision of our anti-trafficking laws and it has paved the way for other such prosecutions.
4. First Prosecution in South Florida Involving Farm Workers
In October 2016, Augustin Mendez pled guilty to conspiracy to provide and obtain forced labor (Case No. 16-CR-20170-RNS). Mendez, who was a supervisor of migrant farm workers in the tomato fields of Homestead, Florida, physically assaulted his workers, threatened and intimidated them, kept them in “debt-bondage,” and confiscated their passports and official travel documents, all to maintain control over his workforce. Mendez’s son, Ever Mendez, who was also charged in the case, pled guilty to encouraging and inducing illegal aliens to remain and reside in the United States.
5. Expanded Partnership with U.S. Department of State’s Diplomatic Security Service to Combat Human Trafficking
This past November, the coordinated efforts of our Task Force and members of our ACTeam, including representatives from the U.S. Diplomatic Security Service, obtained justice for human trafficking victims who traveled to Miami from Kazakhstan. Jeffrey Jason Cooper, a Miami Beach resident, was convicted at trial of sex trafficking after he used deception to lure unsuspecting foreign university students into the United States under false pretenses of legitimate summer jobs, only to then advertise the students to customers of his illicit prostitution and erotic massage enterprise (Case No. 16-CR-20345-KMM).
6. Additional Trafficking Prosecutions
Some of the recently convicted traffickers also include Ricky Jermaine Atkins of Key Largo, a former staff mentor at the Florida Keys Children’s Shelter, and Sandra Simon of Homestead (Case No. 14-CR-20895-MGC). While working at the shelter Atkins arranged for two residents, girls aged 15 and 16, to be brought from Tavernier to a hotel in Cutler Bay where Simon supervised their prostitution. Atkins also arranged for one of the minors to have sex with three associates in order to prepare her for prostitution. Simon pled guilty and Atkins was convicted at trial in Miami and is to be sentenced on February 17, 2017.
In another case, Shaun McKinley was convicted of sex trafficking following a Fort Lauderdale trial and sentenced to life in prison (Case No. 14-CR-60163-WPD). Within three days of meeting the 28-year-old victim in Hollywood, Florida, McKinley was acting as her pimp and physically assaulting her. The first time that the victim attempted to leave McKinley, he quickly found her, dragged her for blocks by the hair, and punished her by making her strip naked, covering her head with a pillow case, hog-trying her with extension cords and beating her with a board. The victim was taken to a hospital after another beating. A concerned nurse and an alert police officer kept McKinley from subsequently reaching the victim.
The U.S. Attorney’s Office continues to work with our law enforcement and community partners to successfully target for prosecution the offenders who perpetuate these illicit and depraved schemes.
Raising awareness, supporting initiatives that prevent human trafficking and bringing justice to those that bring harm to the vulnerable remains a top priority for the U.S. Department of Justice, Attorney General Loretta Lynch and the U.S. Attorney’s Office Southern District of Florida. The department’s anti-trafficking efforts involve numerous components engaged in a full spectrum of activities: investigations, prosecutions, services for victims, enforcement initiatives to strengthen anti-trafficking partnerships, innovative prevention efforts, capacity-building programs to advance survivor-centered anti-trafficking strategies and grant funding to state, local and tribal authorities and to non-governmental organizations.
In support of our anti-trafficking efforts, the U.S. Attorney’s Office for the Southern District of Florida will be participating in an Anti-Trafficking Consortium Summit at Broward County Community College on January 24-25, 2017. The program is free and will provide training and resources for the legal, law enforcement, medical, and local community regarding issues related to human trafficking. To register for the summit visit www.1HTC.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Two Colbert County Men Plead Guilty to Shipping Meth via U.S. MailRead the Press Release
BIRMINGHAM – A Colbert County man pleaded guilty Monday in federal court to charges related to an attempt to ship about a pound of methamphetamine from Los Angeles to the Colbert County town of Leighton using the U.S. Mail, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspection Service Inspector in Charge Adrian Gonzalez.
VENNIS MINOSA OATES Jr., 33, of Leighton, pleaded guilty before U.S. District Judge Abdul K. Kallon to one count of conspiracy to distribute and possession with intent to distribute methamphetamine and one count of attempted possession with intent to distribute methamphetamine. Oates is scheduled for sentencing April 6 in Huntsville.
A second Colbert County man charged in the case, KEELAN SHUNTEZ ROBINSON, 23, of Muscle Shoals, pleaded guilty in October to conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. He is scheduled for sentencing Jan. 26, also in Huntsville.
Oates and Robinson both were arrested in Leighton in January 2016 after they arrived at the U.S. Post Office in Leighton to pick up a suspicious package. Oates drove Robinson to the post office and waited in the car while Robinson went inside and received the package, according to Oates’ plea agreement.
U.S. postal inspectors and members of the Colbert County Drug Task Force and the Alabama Law Enforcement Agency were monitoring retrieval of the package after a resident at the address listed on the parcel initially refused its delivery. The resident said no one named Jeff Hawkins, the package’s listed recipient, lived at the Marthaler Lane address, according to Oates’ plea agreement. After the refused delivery, a postal inspector determined that neither the sender’s name nor the recipient’s name could be associated with either the California shipping address or the Leighton delivery address, and someone identifying himself as “Jeremy” began calling the Leighton Post Office inquiring about picking up the package, according to the plea agreement.
Following Oates’ and Robinson’s arrests, police obtained a search warrant authorizing them to open the package and found it contained about a pound of methamphetamine and about two pounds of marijuana. Postal inspectors subsequently analyzed inbound and outbound packages with destination addresses similar to the Leighton methamphetamine package and identified 14 inbound and two outbound packages, according to the plea agreement. Oates packaged large amounts of cash and shipped it to California to pay for the illegal drugs, the plea agreement said.
The maximum penalty for the conspiracy and distribution charges are 20 years in prison and a $1 million fine.
The Postal Inspection Service, Colbert County Drug Task Force and the ALEA State Bureau of Investigation investigated the case, which Assistant U.S. Attorney Brad Felton is prosecuting.
Two Businessmen Plead Guilty to Foreign Bribery Charges in Connection with Venezuela Bribery SchemesRead the Press Release
A former general manager and partial owner of a Florida-based energy company and an owner of multiple Texas-based energy companies each pleaded guilty today to foreign bribery charges for their roles in a scheme to corruptly secure contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Houston and Special Agent in Charge Richard Goss of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office made the announcement.
Juan Jose Hernandez Comerma (Hernandez), 51, of Weston, Florida, pleaded guilty in federal court in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of violating the FCPA. Charles Quintard Beech III, 46, of Katy, Texas, pleaded guilty to one count of conspiracy to violate the FCPA. U.S. District Judge Gray H. Miller of the Southern District of Texas accepted the guilty pleas. Sentencing for both defendants is scheduled for July 14, 2017.
According to admissions made in connection with Hernandez’s plea, Hernandez conspired with U.S.-based businessmen Abraham Jose Shiera Bastidas (Shiera) and Roberto Enrique Rincon Fernandez (Rincon) to pay bribes and other things of value to PDVSA purchasing analysts. This ensured that Shiera’s and Rincon’s companies were placed on PDVSA bidding panels, which enabled the companies to win lucrative energy contracts with PDVSA. From 2008 until 2012, Hernandez admitted that, while general manager and later partial owner of one of Shiera’s companies, he provided recreational travel and entertainment and offered bribes to PDVSA officials, including Alfonzo Eliezer Gravina Munoz (Gravina), based on a percentage of contracts the officials helped to award to Shiera’s companies. Rincon, Shiera and Gravina have all also pleaded guilty in the case.
According to admissions made in connection with Beech’s plea, from 2011 to 2012, Beech paid bribes to multiple PDVSA officials, including Gravina, in exchange for their assistance in placing Beech’s companies on PDVSA bidding panels and assisting Beech’s company or companies in receiving payment for previously awarded PDVSA contracts. Beech also admitted that he agreed with others, including PDVSA officials, to engage in financial transactions to conceal the nature, source and ownership of the bribe proceeds.
In addition to Hernandez and Beech, the Justice Department has announced the guilty pleas of six other individuals as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.
ICE-HSI is conducting the ongoing investigation with assistance from the FBI and IRS-CI. Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys (AUSA) John Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. AUSAs Kristine Rollinson and Vincent Carroll of the Southern District of Texas are handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Two Businessmen Plead Guilty to Foreign Bribery Charges in Connection with Venezuela Bribery SchemesRead the Press Release
HOUSTON – A former general manager and partial owner of a Florida-based energy company and an owner of multiple Texas-based energy companies each pleaded guilty today to foreign bribery charges for their role in a scheme to corruptly secure contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
U.S. Attorney Kenneth Magidson, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Houston and Special Agent in Charge Richard Goss of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office made the announcement.
Juan Jose Hernandez Comerma (Hernandez), 51, of Weston, Florida, pleaded guilty in federal court in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of violating the FCPA. Charles Quintard Beech III, 46, of Katy, pleaded guilty to one count of conspiracy to violate the FCPA. U.S. District Judge Gray H. Miller of the Southern District of Texas accepted the guilty pleas. Sentencing for both defendants is scheduled for July 14, 2017.
According to admissions made in connection with Hernandez’s plea, Hernandez conspired with U.S.-based businessmen Abraham Jose Shiera Bastidas (Shiera) and Roberto Enrique Rincon Fernandez (Rincon) to pay bribes and other things of value to PDVSA purchasing analysts. This ensured Shiera’s and Rincon’s companies were placed on PDVSA bidding panels, which enabled the companies to win lucrative energy contracts with PDVSA. As part of their pleas, Shiera and Rincon admitted they worked together to submit bids to provide equipment and services to PDVSA through their various companies. From 2008 until 2012, Hernandez admitted that while general manager and later partial owner of one of Shiera’s companies, he provided recreational travel and entertainment and offered bribes to PDVSA officials, including Alfonzo Eliezer Gravina Munoz (Gravina), on a percentage of contracts the officials helped to award to Shiera’s companies. Rincon, Shiera and Gravina have all also pleaded guilty in the case.
According to admissions made in connection with Beech’s plea, from 2011 to 2012, Beech paid bribes to multiple PDVSA officials, including Gravina, in exchange for their assistance in placing Beech’s companies on PDVSA bidding panels and assisting Beech’s company or companies in receiving payment for previously awarded PDVSA contracts. Beech also admitted that he agreed with others, including PDVSA officials, to engage in financial transactions to conceal the nature, source and ownership of the bribe proceeds.
Including Hernandez and Beech, eight individuals have pleaded guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Shiera and Rincon pleaded guilty before Judge Miller to multiple FCPA charges in March and June of 2016, respectively. Gravina pleaded guilty in December 2015 to conspiracy to commit money laundering and making false statements on his federal income tax return by failing to report the bribe payments he received. As part of their plea agreements, all defendants agreed to forfeit proceeds from their criminal activity.
ICE-HSI is conducting the ongoing investigation with assistance from the FBI and IRS-CI. Assistant U.S. Attorneys (AUSA) John Pearson and Robert S. Johnson of the Southern District of Texas and Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section are prosecuting the case. AUSAs Kristine Rollinson and Vincent Carroll of the Southern District of Texas are handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Two Broward County Return Preparers Sentenced to Prison in Stolen Identity Tax Fraud and Check Cashing SchemesRead the Press Release
Two Broward County return preparers were sentenced for their participation in stolen identity tax fraud and treasury check cashing schemes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Peterson Jerome, 37, of Margate, and Oldy Elisee, 42, of Miramar, were sentenced to 24 months, and 18 months in prison, respectively, to be followed by one year of supervised release, and were ordered to pay joint and several restitution in the amount of $274,425.05. The defendants previously pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Jerome and Elisee operated a tax preparation business called Freedom Tax Plus Multi Services, Inc. in Tamarac, Florida. From February 19 to April 13, 2011, the defendants filed fraudulent income tax returns with the IRS claiming $274,425.05 in fraudulent refunds using another individual’s Preparer Tax Identification Number (PTIN) and Electronic Filing Identification Number (EFIN). The other individual admitted that he allowed the defendants to use his PTIN and EFIN to file fraudulent tax returns containing victims' personal identifying information in exchange for 35% of the preparation fees of the fraudulent tax returns. Jerome and Elisee also prepared and submitted falsified Forms W-2 with many of the fraudulent tax returns.
Jerome cashed the fraudulent refunds (minus tax preparation and other fees) at a check cashing store called American Quick Cash (AQC) using fraudulent Florida Driver’s Licenses. In a separate but related case, it was determined that AQC’s owners were cashing fraudulent tax refund checks arising out of fraudulent tax refund filings containing stolen identities and that the owners received 25 to 50 percent of the checks value to negotiate the stolen checks. Jerome was identified as a “middle man” participating in this scheme at AQC to cash stolen checks.
Later in their scheme, Jerome and Elisee directed the IRS to mail the treasury checks to various addresses, and Jerome and Elisee cashed the checks at AQC.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case was prosecuted by Assistant U.S. Attorney Alicia E. Shick.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Twin Falls Man Sentenced to 63 Months in Prison for Possession of Child PornographyRead the Press Release
BOISE – Richard Roy Sexton, 73, of Twin Falls was sentenced today in United States District Court to 63 months in prison followed by 5 years of supervised release for possession of child pornography, U.S. Attorney Wendy J. Olson announced. Sexton pleaded guilty on October 11, 2016.
According to the plea agreement, in August of 2015, agents with the United States Postal Inspectors Service (USPIS) and the Idaho Internet Crimes Against Children Task Force (ICAC) contacted Sexton at his residence in Twin Falls, Idaho. Sexton admitted to downloading images of minors engaged in sexually explicit conduct from the internet, and gave permission for agents to seize and search his computer and an external hard drive which contained the images. In October of 2015, Sexton visited a Verizon Wireless store in Twin Falls seeking assistance with an electronic tablet. An employee of the store observed child pornography on the tablet, and contacted the National Center for Missing and Exploited Children (NCMEC). NCMEC provided the information to the USPIS and ICAC investigators, who again contacted Sexton, and obtained permission to seize the tablet. Agents later obtained a search warrant to search the tablet.
In his plea agreement, Sexton admitted to possessing at least 360 images and 40 videos containing images of minors engaged in sexually explicit conduct on his computer, external hard drive, and tablet. The sexually explicit images included images of prepubescent minors. The electronic devices also contained evidence that Sexton was searching for and accessing images of child pornography via the internet. NCMEC subsequently identified 332 images containing known, identifiable victims from 34 known series of child pornography.
Chief U.S. District Judge B. Lynn Winmill also ordered Sexton to forfeit the computer, external hard drive, and tablet used in the commission of the charged offense. As a result of his conviction, Sexton is required to register as a sex offender.
The case was investigated by the United States Postal Inspectors Service and the Idaho Internet Crimes Against Children Task Force (ICAC), and 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.”
Trafficking Nearly 10 Kilos of Meth Lands Man Hefty Prison SentenceRead the Press Release
CORPUS CHRISTI, Texas - A U.S. citizen who was living in Matamoros has been ordered to federal prison following his conviction of possession with intent to distribute methamphetamine, announced U.S. Attorney Kenneth Magidson. Francisco Moreno, 22, pleaded guilty Oct. 3, 2016.
Today, United States District Judge Nelva Gonzalez Ramos handed Moreno a 78-month sentence to be immediately followed by five years of supervised release.
On July 20, 2016, Moreno drove a motor vehicle to the Sarita checkpoint. During primary inspection, a service K9 alerted to the presence of contraband coming from the vehicle. After the vehicle was examined, agents discovered and removed 10 vacuum-sealed bundles of methamphetamine from the door panels. Laboratory analysis determined the methamphetamine weighed 9.9 kilograms and had a purity level of 96%.
In federal custody since his arrest, Moreno will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Border Patrol conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Three Former Traders for Major Banks Indicted in Foreign Currency Exchange Antitrust ConspiracyRead the Press Release
A federal grand jury returned an indictment against three former traders of major banks for their alleged roles in a conspiracy to manipulate the price of U.S. dollars and euros exchanged in the foreign currency exchange (FX) spot market, the Justice Department announced today.
The one-count indictment, filed in the U.S. District Court for the Southern District of New York, charges Richard Usher (former Head of G11 FX Trading-UK at an affiliate of The Royal Bank of Scotland plc, as well as former Managing Director at an affiliate of JPMorgan Chase & Co.), Rohan Ramchandani (former Managing Director and head of G10 FX spot trading at an affiliate of Citicorp) and Christopher Ashton (former Head of Spot FX at an affiliate of Barclays PLC) with conspiring to fix prices and rig bids for U.S. dollars and euros exchanged in the FX spot market.
“Whether a crime is committed on the street corner or in the corner office, no one gets a free pass simply because they were working for a corporation when they broke the law,” said Deputy Attorney General Sally Q. Yates. “Today’s indictment reiterates our commitment to holding individuals accountable for corporate misconduct.”
“The charged conspiracy involved competitors manipulating the exchange rate for the hundreds of billions of dollars traded on foreign exchange markets for their benefit and to the detriment of their customers,” said Principal Deputy Associate Attorney General Bill Baer. “We previously secured criminal convictions of the financial institutions involved in the misconduct. Today we seek to hold accountable the individuals who conspired on their behalf.”
“These former bank traders are alleged to have gained an unfair advantage on their counterparts by committing corporate fraud involving the manipulation of the foreign currency exchange,” said Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office. “Their actions affected worldwide trading positions in the global marketplace. Today’s announcement reinforces the FBI’s commitment to investigate and prosecute individuals responsible for criminally interfering with the global financial markets.”
The indictment follows the May 20, 2015 agreements of Barclays PLC, Citicorp, JPMorgan Chase & Co., and The Royal Bank of Scotland plc to plead guilty to conspiring to fix prices and rig bids for U.S. dollars and euros exchanged in the FX spot market, and to pay criminal fines totaling more than $2.5 billion. On Jan. 5, 2017, the federal district court in Connecticut accepted those plea agreements and sentenced the banks accordingly.
The charge in the indictment carries a maximum penalty of 10 years in prison and a $1 million fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million.
According to the indictment, from at least December 2007 through at least January 2013, Usher, Ramchandani and Ashton (along with unnamed co-conspirators) conspired to fix prices and rig bids for the euro – U.S. dollar currency pair. Called “the Cartel” or “the Mafia,” this group of traders participated in telephone calls and electronic messages, including near-daily conversations in a private electronic chat room, to carry out their conspiracy. Their anticompetitive behavior included colluding around the time of certain benchmark rates known as fixes, such as coordinating their orders and trading to manipulate the price of the currency pair by the time of the fix. In another example of collusion, the conspirators coordinated their orders and trading to manipulate the price of the currency pair, such as by refraining from entering orders or trading at certain times.
The charge in the indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty.
The Department of Justice has now charged six individuals in the FX investigation. On July 20, 2016, fraud charges were brought by the Justice Department’s Criminal Division against two FX executives for conspiring to defraud a client of their bank through a front running scheme. On Jan. 4, 2017, an antitrust charge and plea agreement were announced for a trader in connection with a conspiracy to manipulate emerging market FX rates.
This investigation is being conducted by the FBI’s Washington Field Office. This prosecution is being handled by the Antitrust Division’s New York Office. The Criminal Division’s Fraud Section also provided substantial assistance in this matter.
The charge in this case was brought in connection with the President Obama’s Financial Fraud Enforcement Task Force. The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.
For more information about the task force, please visit www.StopFraud.gov. Anyone with information concerning price fixing or other anticompetitive conduct in the FX market should contact the Antitrust Division’s Citizen Complaint Center at (888) 647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at (415) 553-7400.
Usher et al. Indictment
Texas Man Sentenced to 10 Years in Prison for Attempting to Entice a Minor for SexRead the Press Release
PITTSBURGH - A former resident of Arlington, Texas, has been sentenced in federal court to 120 months imprisonment, followed by 10 years of supervised release, on a charge of attempted coercion and enticement of a minor to engage in illegal sexual activity, Acting United States Attorney Soo C. Song announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Ray Wickliffe Howland, 57, of Arlington, Texas.
According to information presented to the court, the court was advised that on or about June 25, 2015, Howland used facilities and means of interstate and foreign commerce, specifically a computer, an iPad, the internet and the telephone, to knowingly attempt to persuade, induce, entice, and coerce a minor to engage in sexual activity.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Song commended the Office of the Pennsylvania Attorney General and the Federal Bureau of Investigation for conducting the investigation leading to the successful prosecution of Howland.
This case was brought 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.
Texas Man Pleads Guilty in New Mexico to Misdemeanor Theft Charge for Stealing Prescription Pain MedicationRead the Press Release
Michael Adams, 52, of Horizon, Texas, pled guilty today in Las Cruces, N.M., to a federal misdemeanor theft of government property charge arising out of his theft of prescription pain medication being shipped by the Veterans Administration through the United Parcel Service (UPS). At the time he committed the crime, Adams was employed by UPS.
Adams was charged by a misdemeanor information filed on Dec. 12, 2016, with theft of government property on Aug. 21, 2013. According to the information, Adams committed the crime in Otero County, N.M.
During today’s change of plea hearing, Adams pled guilty to the misdemeanor information and admitted that on Aug. 21, 2013, while employed by UPS in Alamogordo, N.M., he stole a package containing prescription pain medication sent by the Veterans Administration through the UPS.
Under the terms of his plea agreement, Adams will be sentenced to two years of probation and will pay $537.54 in restitution to the victim of his crime. A sentencing hearing has yet to be scheduled.
This case was investigated by the Department of Veterans Affairs, Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Syed Raheel Farook Pleads Guilty in Immigration Fraud CaseRead the Press Release
RIVERSIDE, California – Syed Raheel Farook, the brother of deceased San Bernardino attacker Syed Rizwan Farook, pleaded guilty today in federal court in an immigration fraud case stemming from the investigation of the December 2, 2015 attack in San Bernardino in which 14 people died and 22 were wounded.
Syed Raheel Farook, 31, of Corona, California, pleaded guilty to one count of conspiracy to commit immigration fraud before United States District Judge Jesus Bernal.
As a result of today’s guilty plea, Syed Raheel Farook faces a statutory maximum sentence of five years in federal prison, a fine of up to $250,000 and up to three years of supervised release. Judge Bernal is scheduled to sentence the defendant on November 13.
Syed Raheel Farook; his wife, Tatiana Farook; and his sister-in-law, Mariyah Chernykh, were charged in an indictment returned by a federal grand jury in April 2016. All three were charged with conspiracy to knowingly make under oath a false statement with respect to a material fact in an application, affidavit, and other document required by the immigration laws and regulations of the United States, and to commit perjury.
The indictment alleges that, beginning in late 2014 and continuing through February 2016, the three defendants conspired with Enrique Marquez Jr. to obtain immigration benefits for Chernykh by arranging and carrying out a fraudulent marriage between Chernykh, a Russian citizen, and Marquez, a United States citizen. The conspirators allegedly made false statements in immigration documents submitted on Chernykh’s behalf.
In addition to the conspiracy count, Chernykh is charged in the indictment with two counts of making false statements under oath in immigration documents and one count of making false statements to federal agents about the scheme. A trial for Tatiana Farook and Chernykh is currently scheduled for March 28.
Marquez was charged in a separate federal indictment with participating in the marriage fraud scheme, as well as plotting with San Bernardino attacker Syed Rizwan Farook in 2011 and 2012 to carry out attacks in the Inland Empire. Marquez is also charged with supplying two firearms that Syed Rizwan Farook and his wife, Tashfin Malik, later used in the San Bernardino attack and during the shootout with law enforcement that ended in the couple’s death. Marquez is scheduled to go on trial before Judge Bernal on September 26.
“Today’s guilty plea is the result of the thorough investigation into the brutal attack in San Bernardino that took the lives of 14 innocent Americans and tragically affected many more shooting victims and family members,” said United States Attorney Eileen M. Decker. “Law enforcement and prosecutors in my office continue to seek justice for the victims and the entire community of San Bernardino by uncovering and prosecuting all of the criminal activity related to the terrible events of December 2. As I have said many times, we are committed to leaving no stone unturned in this investigation.”
“The false statements Mr. Farook admittedly made allowed others to cut the line to attain citizenship ahead of legitimate applicants,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This guilty plea should serve as a message for anyone contemplating similar activity that flouting the immigration laws of the United States has serious consequences.”
“Let there be no doubt, immigration benefit fraud is a serious crime,” said Joseph Macias, special agent in charge for HSI Los Angeles. “When people use false or misleading information in order to obtain an immigration benefit for themselves or others, it creates a security vulnerability that could be exploited by criminals and other individuals who pose a serious danger to our community. As this case makes clear, HSI will aggressively target those who conspire to corrupt the integrity of America’s legal immigration system, putting our nation’s security at risk in the process.”
The investigation in this case was conducted by the Joint Terrorism Task Force in Riverside, which includes the Federal Bureau of Investigation; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the San Bernardino Police Department; the San Bernardino County Sheriff’s Department; and the United States Attorney’s Office.
These cases are being prosecuted by Assistant United States Attorneys Jay H. Robinson, Melanie Sartoris and Deirdre Z. Eliot of the Terrorism and Export Crimes Section with substantial assistance from Trial Attorney C. Alexandria Bogle of the Justice Department’s Counterterrorism Section.
Stevenson, Alabama, Police Chief Sentenced for Assaulting and Failing to Protect ArresteeRead the Press Release
The Justice Department announced today that the former Chief of Police of Stevenson, Alabama, Daniel Winters, 56, was sentenced to 27 months in prison for beating an arrestee and for standing by while Winters’ friend beat the arrestee.
On July 14, 2016, a federal jury convicted Winters of two counts of violating the individual’s civil rights. Winters was sentenced today by U.S. District Court Judge Madeline Hughes Haikala of the Northern District of Alabama.
According to evidence presented at trial, on March 22, 2015, Winters and a civilian friend went to a residence to investigate suspicions that property had been stolen from the friend’s business and was located at the residence. Upon arrival, Winters and his friend entered the residence without a search warrant and encountered the victim, identified as D.F. Winters and his friend then began to beat D.F. The beating moved outside where Winters and his friend continued to strike and kick the victim in front of the residence. Over the course of approximately five minutes, Winters not only participated in the beating, but stood by watching his friend beat D.F. and did nothing to stop it. A passing motorist called 911 to report the beating. D.F. was left bloody with wounds to his face, chest and back, and was taken to the jail at the Stevenson Police Department. While at the jail, D.F. began to spit up blood. A jailor requested Winters’ permission to call an ambulance, but Winters refused the request. Eventually, the jailor received permission from another supervisor and D.F. was transported to a hospital, where he received medical attention.
“Our society entrusts law enforcement leaders with the profound responsibility of protecting people from harm,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “When law enforcement officials abuse the individuals they swore an oath to protect, they threaten the reputation of their colleagues in the profession who do their jobs honorably and with integrity. This sentencing makes clear that no one, not even a police chief, is above the law.”
“Police department leadership must set the example and uphold the integrity of their departments and meet the rightful expectation of every citizen that law enforcement officers will act in accordance with the laws they have sworn to uphold,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “In this case, a police chief criminally abused his badge in order to benefit a friend and inflict violence on an individual in violation of the Constitution. Our society cannot allow that kind of abuse of power and authority to go unpunished.”
The FBI and Alabama’s State Bureau of Investigation conducted the investigation. Deputy Chief Laura Hodge of the Northern District of Alabama and Trial Attorney Samantha Trepel of the Civil Rights Division’s Criminal Section prosecuted the case.
Stevenson Police Chief Sentenced to Prison for Assaulting and Failing to Protect ArresteeRead the Press Release
BIRMINGHAM – A federal judge today sentenced former Stevenson, Ala., Police Chief DANIEL WINTERS, 56, to more than two years in prison for beating an arrestee and for standing by while Winters’ friend beat the arrestee, announced U.S. Attorney Joyce White Vance and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.
U.S. District Court Judge Madeline Hughes Haikala sentenced Winters to 27 months in prison and ordered him to pay restitution of $12,970 on two counts of violating an individual’s civil rights. A federal jury convicted Winters on those charges in July 2016. Winters must report to prison March 7.
According to evidence presented at trial, on March 22, 2015, Winters and a civilian friend went to a residence to investigate suspicions that property had been stolen from the friend’s business and was located at the residence. Upon arrival, Winters and his friend entered the residence without a search warrant and encountered the victim, identified as D.F. Winters and his friend then began to beat D.F. The beating moved outside where Winters and his friend continued to strike and kick the victim in front of the residence. Over the course of approximately five minutes, Winters not only participated in the beating, but stood by watching his friend beat D.F. and did nothing to stop it. A passing motorist called 911 to report the beating. D.F. was left bloody with wounds to his face, chest and back, and was taken to the jail at the Stevenson Police Department. While at the jail, D.F. began to spit up blood. A jailor requested Winters’ permission to call an ambulance, but Winters refused the request. Eventually, the jailor received permission from another supervisor and D.F. was transported to a hospital where he received medical attention.
“Our society entrusts law enforcement leaders with the profound responsibility of protecting people from harm,” Gupta said. “When law enforcement officials abuse the individuals they swore an oath to protect, they threaten the reputation of their colleagues in the profession who do their jobs honorably and with integrity. This sentencing makes clear that no one, not even a police chief, is above the law.”
“Police department leadership must set the example and uphold the integrity of their departments and meet the rightful expectation of every citizen that law enforcement officers will act in accordance with the laws they have sworn to uphold,” Vance said. “In this case, a police chief criminally abused his badge in order to benefit a friend and inflict violence on an individual in violation of the Constitution. Our society cannot allow that kind of abuse of power and authority to go unpunished.”
The FBI and Alabama’s State Bureau of Investigation conducted the investigation. U.S. Attorney’s Office Deputy Chief Laura Hodge and Trial Attorney Samantha Trepel of DOJ’s Civil Rights Division’s Criminal Section prosecuted the case.
Statement by Attorney General Loretta E. Lynch on the Sentencing of Dylann RoofRead the Press Release
Attorney General Loretta E. Lynch released the following statement on the sentencing of Dylann Roof:
“On June 17, 2015, Dylann Storm Roof sought out and opened fire on African-American parishioners engaged in worship and bible study at Emanuel African Methodist Episcopal Church in Charleston, South Carolina. He did so because of their race. And he did so to interfere with their peaceful exercise of religion. The victims in the case led lives as compassionate civic and religious leaders; devoted public servants and teachers; and beloved family members and friends. They include a young man in the bloom of youth and an 87-year-old grandmother who still sang in the church choir. We remember those who have suffered, and especially those that lost their lives: Cynthia Graham Hurd, 54; Susie Jackson, 87; Ethel Lance, 70; Rev. DePayne Middleton Doctor, 49; Rev. Clementa Pinckney, 41; Tywanza Sanders, 26; Rev. Daniel Simmons Sr., 74; Sharonda Coleman-Singleton, 45; and Myra Thompson, 59.
“Today, a jury of his peers considered the actions Roof took on that fateful day, and they rendered a verdict that will hold him accountable for his choices.
“No verdict can bring back the nine we lost that day at Mother Emanuel. And no verdict can heal the wounds of the five church members who survived the attack or the souls of those who lost loved ones to Roof’s callous hand. But we hope that the completion of the prosecution provides the people of Charleston – and the people of our nation – with a measure of closure. We thank the jurors for their service, the people of Charleston for their strength and support, and the law enforcement community in South Carolina and throughout the country for their vital work on this case.”
Stafford Springs Man Sentenced to 18 Months in Federal Prison for Defrauding U.S. VeteransRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN J. SIMON, JR., also known as “Buzzy Simon,” 69, of Stafford Springs, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 18 months of imprisonment, followed by three years of supervised release, for defrauding U.S. veterans.
According to court documents and statements made in court, from March 2009 to August 2010, SIMON, a Vietnam War veteran, engaged in a scheme to defraud four military veterans by representing that, in exchange for money, he could assist them in obtaining increased benefits from the Department of Veterans Affairs (“VA”). The veterans suffer from service-related disabilities and/or are chronically ill. SIMON falsely represented that the money the veterans provided to him would be used to pay for the services of an attorney or other expenses. With respect to one veteran, SIMON also falsely told him that he would assist the veteran in obtaining Social Security benefits.
SIMON did not initiate any claims for the four veterans and he did not incur any legal or other expenses on behalf of the veterans. Rather, he kept the money for his personal use.
As part of the plea agreement, SIMON has agreed that he defrauded 11 other military veterans and one non-veteran by representing that he could obtain new or increased benefits from the VA or Social Security Administration.
In total, SIMON defrauded 16 victims of approximately $525,521.
SIMON also structured approximately $36,000 in cash deposits into his bank account from October 2009 to June 2010. The funds structured were payments he had received from the fraud scheme. At the time, SIMON knew that the bank was required to issue a report for a currency transaction in excess of $10,000, and that by conducting his financial transactions in amounts less than $10,000.01, he intended to evade the transaction reporting requirements.
Federal law requires all financial institutions to file a Currency Transaction Report (“CTR”) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
SIMON was arrested on a criminal complaint on May 15, 2013. On October 3, 2016, he pleaded guilty to one count of mail fraud and one count of structuring currency transactions.
In October 2010, the IRS seized $210,085.58 from SIMON’s bank account. The seized funds will be used to pay restitution to SIMON’s victims. Judge Shea ordered SIMON to pay $315,435.42 in additional restitution.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division and the U.S. Department of Veterans Affairs, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Southern California Marijuana Store Owner Pleads Guilty to Drug TraffickingRead the Press Release
SACRAMENTO, Calif. — Hung C. Nguyen, 40, of Moorpark, pleaded guilty today to manufacturing marijuana as part of a larger conspiracy to distribute marijuana throughout California, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Nguyen conducted a marijuana cultivation business with Nathan Hoffman, a Los Angeles attorney with offices on Wilshire Boulevard, and others using marijuana grown in Sutter County and Sacramento. Nguyen operated two Southern California marijuana stores, the Canna Clinic of Garden Grove and the South Bay Canna Clinic in Torrance. Nguyen was a distributor for the marijuana produced in Northern California. According to the plea agreement, one of Nguyen’s dispensary’s could sell more than $10,000 of marijuana in a single busy day.
This case is part of investigations into industrial-scale marijuana cultivation conspiracies operating within the Eastern District of California. A total of 12 defendants were indicted for crimes relating to their marijuana cultivation in this case and in two related cases (United States v. Yan Ebyam et al. 2:11-cr-275-JAM and 2:11-cr-276-JAM). All defendants except for Hoffman have pleaded guilty to participation in the conspiracies, and most have been sentenced to prison. Hoffman is scheduled for trial on January 23, 2017. The charges against Hoffman are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
According to court documents, on June 21, 2011, federal and state agents executed seven federal search warrants in Sacramento, Sutter, and Tehama Counties. Two of these warrants were executed at the sites of large, commercial greenhouses located at the Jopson Ranch in Rio Oso and at the Cal-Nevada Wholesale Florist in Sacramento. Law enforcement officers seized over 5,000 marijuana plants in all stages of growth from these two locations: approximately 2,168 plants at Jopson Ranch and approximately 3,305 plants at Cal-Nevada Florist. Two leaders arrested at the grow sites, Yan Ebyam and Aimee Sisco admitted their involvement in the marijuana cultivation business.
Sentencing for Nguyen is set for April 18, 2017, by U.S. District Judge John A. Mendez. Nguyen faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
These three cases are the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the Sutter County Sheriff’s Department, and the California Bureau of Narcotic Enforcement. It was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. Assistant U.S. Attorneys Jason Hitt, Todd A. Pickles, and Samuel Wong are prosecuting the cases.
Somerset County Man Charged with Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A resident of Stoystown, Pa. was indicted today by a federal grand jury in Johnstown on a charge of possession of child pornography, Acting United States Attorney Soo C. Song announced today.
The indictment named Robert G. Landsbach, 35, of Stoystown, Pa., as the sole defendant.
According to the indictment presented to the court, on October 5, 2016, he knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security, Child Exploitation, the Pennsylvania Attorney General’s Office, and the Pennsylvania State Police, Somerset, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Smith County Husband and Wife Guilty in Health Care Fraud ConspiracyRead the Press Release
TYLER, Texas – A Smith County couple has pleaded guilty to charges of health care fraud in the Eastern District of Texas announced Acting United States Attorney Brit Featherston today.
Gerard Dengler, 61, and Suzanne Dengler, 52, of Tyler, Texas, pleaded guilty to conspiring to commit health care fraud today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in Court, the Denglers owned and operated Elite Lab Services, a clinical diagnostic laboratory based in Tyler. As a Medicare provider, the company would bill Medicare for laboratory services provided to nursing homes located throughout east Texas, including the mileage associated with providing those services. Beginning in April 2014, Gerard and Suzanne Dengler conspired to fraudulently increase route mileage that Elite Lab used to calculate the travel allowances billed to Medicare. From April through October 2014, the company then sought reimbursement from Medicare for mileage that included the falsely inflated amounts.
Under federal statutes, the Denglers each face up to 10 years in federal prison at sentencing and have already agreed to pay restitution in excess of $160,000, which represents the loss to Medicare. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The criminal investigation arose from a civil qui tam action filed by former Elite Lab employee Karen Malcolm. In her complaint, Malcolm alleged, among other things, that Elite Lab and the Denglers submitted false claims to Medicare from approximately 2010 through 2014. The United States intervened in the action for purposes of settlement. The Denglers and Elite Lab agreed to pay the United States $3.75 million to settle the lawsuit. As a result of the settlement, Elite Lab will be excluded from participating in Medicare for eight years; Gerard Dengler will be excluded for 10 years; and Suzanne Dengler will be excluded for eight years. The settlement also resolved a separate civil lawsuit in which the United States sought to forfeit funds and property obtained by the Denglers and Elite Lab through their fraudulent conduct.
This matter was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services – Office of the Inspector General, the Texas Office of the Attorney General – Medicaid Fraud Control Unit, and the United States Attorney’s Office for the Eastern District of Texas. The criminal case was prosecuted by Assistant U.S. Attorneys Frank Coan and Nathaniel Kummerfeld and Special Assistant U.S. Attorney Ken McGurk. The civil settlement was negotiated by Assistant U.S. Attorney Josh Russ. The civil forfeiture action was prosecuted by Assistant U.S. Attorney Bob Wells.
This case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the Federal Bureau of Investigation (FBI). This case is being prosecuted by Special Assistant U.S. Attorney Kenneth C. McGurk and Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477).
Six Defendants Sentenced for Wide-Ranging Bank Fraud and Identity Theft SchemeRead the Press Release
ATLANTA - Six defendants have been sentenced over the last week for their roles in a bank fraud conspiracy scheme that involved withdrawing funds from compromised bank accounts and stealing personal identifying information from victims across the country.
“The leaders of this conspiracy sought out bank accounts with large sums of money and then worked with their co-conspirators to obtain the specific account information and personal identifying information for those account holders, eventually draining the accounts of all the money,” said U.S. Attorney John Horn. “Citizens expect that their personal information, as well as their money, is secure, and these defendants threatened that sense of security.”
“Financial fraud is one of the largest challenges facing American citizens and businesses today. The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who steal from unsuspecting victims,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “This sentencing should be a warning to other like-minded criminals that they will be punished for their wrongdoings.”
According to U.S. Attorney Horn, the charges and other information presented in court: Darnell Crutcher and Robert Warren, working together and with others, obtained bank account information of individuals with Home Equity Line of Credit (HELOC) accounts with JP Morgan Chase and other banks. On at least one account, Warren impersonated an account holder to obtain the available balance and days later Crutcher impersonated the same account holder and transferred over $150,000 out of the account.
Warren also allowed funds from compromised accounts to be transferred into his own accounts and funneled the money, in wire transfers and cash withdrawals, at Crutcher’s direction. Willie Hubbard, an associate of Crutcher’s, provided Crutcher with his bank account information on accounts he shared with Clifford Waller, his cousin. Crutcher also used these accounts to funnel funds from compromised accounts into, and then directed Hubbard on transferring and withdrawing the compromised funds, activity Waller also facilitated.
Juan Enriquez, who knew Crutcher from an Atlanta-area softball team, brought other individuals into the conspiracy. Enriquez’s wife, Anna Enriquez, a former banker with JP Morgan Chase, assisted an impersonator on one of the bank account takeovers who transferred $500,000 out of the victim’s HELOC account.
Darnell Crutcher, 55, of Atlanta, Georgia, has been sentenced to nine years and one month in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $794,825.90. Crutcher was convicted of bank fraud conspiracy and aggravated identity theft on October 21, 2016, after he pleaded guilty.
Robert Warren, 52, of Atlanta, Georgia, has been sentenced to five years and five months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $544,825.90. Warren was convicted of bank fraud conspiracy and aggravated identity theft on December 9, 2015, after he pleaded guilty.
Enriquez, 44, of Ft. Lauderdale, Florida, has been sentenced to three years and three months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $252,825.90. Enriquez was convicted of bank fraud conspiracy and aggravated identity theft on August 2, 2016, after he pleaded guilty.
Willie Hubbard, 52, of Lithonia, Georgia, has been sentenced to three years and one month in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $369,000. Hubbard was convicted of bank fraud conspiracy and aggravated identity theft on July 19, 2016, after he pleaded guilty.
Clifford Waller, 41, of Lithia Springs, Georgia, has been sentenced to two years and four months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $472,211.06. Waller was convicted of bank fraud related to his conduct described above, as well as bank fraud conspiracy related to a separate federal investigation, on February 1, 2016, after he pleaded guilty.
Anna Enriquez, 44, of Ft. Lauderdale, Florida, has been sentenced to 13 months of probation, including three months of home confinement, and ordered to pay restitution in the amount of $222,825.90. Anna Enriquez was convicted of bank fraud conspiracy on August 2, 2016, after she pleaded guilty.
All of the defendants were sentenced by U.S. District Court Judge William S. Duffey, Jr.
This case was investigated by the United States Secret Service. The United States Postal Inspection Service also provided valuable assistance.
Special Assistant United States Attorney Erin E. Sanders and Assistant United States Attorney Steven D. Grimberg prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
San Diego Man Sentenced to 28 Years in Prison for Aggravated Role in Methamphetamine ConspiracyRead the Press Release
HONOLULU – Jesse Wade Pelkey, 38, of Imperial Beach, California, was sentenced in federal court on January 5, 2017, by Senior District Judge Helen Gillmor to 336 months (28 years) imprisonment for his role in a conspiracy to distribute methamphetamine in the State of Hawaii. Pelkey had previously pled guilty on September 19, 2016 to conspiracy to distribute and possess with intent to distribute methamphetamine.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said the evidence presented in court showed that Pelkey was an organizer and leader of the methamphetamine conspiracy which operated in San Diego and Hawaii and involved five or more members. Pelkey was found responsible for the distribution of 424.9 grams of pure methamphetamine, or "ice," and an additional 4,989 grams of generic methamphetamine
At the sentencing hearing, the court found that Pelkey was the San Diego source of supply of the methamphetamine transported to Hawaii for distribution. Pelkey faced a mandatory minimum sentence of 240 months (20 years) imprisonment after the prosecution filed an enhancement alleging a prior felony drug conviction. A total of six individuals were convicted for their participation in the conspiracy.
The investigation which resulted in the charges in the case was conducted by the Drug Enforcement Administration. Assistant U.S. Attorney Mark A. Inciong handled the prosecution.
Robber Sentenced to over 12 Years in Federal Prison for Stealing Drugs and Money from PharmaciesRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Haleem Celestial White, age 25, of Washington D.C. today to 150 months in prison, followed by five years of supervised release, for armed robberies of pharmacies.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Henry P. Stawinski of the Prince George’s County Police Department.
According to their plea agreements and information presented at their sentencings, from March 7, 2015 to June 6, 2016, White conspired with Daunte Jones, Ernest Ingram, and others, to rob small retail pharmacies of cash and prescription medication. In each robbery, the conspirators wore dark ski masks and one of the robbers brandished a handgun. Specifically, on April 11, 2015 White, Jones, and Ingram, robbed a pharmacy on Annapolis Road in Hyattsville, Maryland, and on May 2, 2015, they robbed a pharmacy on Rhode Island Avenue in Beltsville, Maryland.
On March 7, 2015, Jones, White, and at least two other co-conspirators also robbed a pharmacy on Hamilton Street in Hyattsville. During the robbery, one of the co-conspirators pepper-sprayed two elderly customers in the face and threw both patrons to the ground. The robbers then escaped in a vehicle that was waiting for them outside. On June 6, 2016, Jones, White and another conspirator robbed a pharmacy on Greenbelt Road in Berwyn Heights, Maryland, again escaping in a waiting get-away car. As in each of the previous robberies, the conspirators stole prescription drugs, including oxycodone, and cash from the store. In the June 6th robbery, the conspirators also stole an employee’s handbag, which contained a cellular phone, credit cards, identification cards, and cash.
During their participation in the conspiracy, White, Jones, and Ingram, stole prescription medication worth more than $20,000. The defendants admitted that they stole the prescription medications in order to sell the drugs, which they did.
Judge Hazel previously sentenced co-conspirators Daunte Antonio Jones, age 27, of Oxon Hill, Maryland, to 150 months in prison, and Ernest Ingram, Jr., age 32, of Washington D.C., to 87 months in prison, for their participation in the armed robberies of pharmacies.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael T. Packard and William D. Moomau, who prosecuted the case.
Ring Leader of Violent Drug Trafficking and Illegal Gambling Enterprise Pleads Guilty to RacketeeringRead the Press Release
Assistant U. S. Attorneys Andrew P. Young (619) 546-7981,Benjamin Katz (619) 546-9604 or Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – January 10, 2016
SAN DIEGO – Owen Hanson, leader of the violent “ODOG Enterprise,” pleaded guilty today to conspiring to operate an international drug trafficking, gambling and money laundering enterprise in the United States, Central and South America and Australia from 2012 to 2016.
According to his plea agreement, ODOG Enterprise trafficked hundreds of kilograms of cocaine, heroin, methamphetamine, MDMA (also known as “ecstasy”), anabolic steroids and Human Growth Hormone (“HGH”). As Hanson admitted, ODOG Enterprise’s drug operation routinely distributed controlled substances at wholesale and retail levels, including selling performance enhancing drugs to numerous professional athletes. The ODOG Enterprise also operated a vast illegal gambling operation focused on high-stakes wagers placed on sporting events. The Enterprise used threats and violence against its gambling and drug customers to force compliance.
Three of Hanson’s associates also pleaded guilty today: Giovanni Brandolino (aka “Tank”), Marlyn Villarreal and Jeff Bellandi.
In one instance discussed in court papers, an individual who owed the ODOG Enterprise more than $2 million received a DVD showing a beheading, and a photo of his desecrated family’s gravestone, in an effort to collect the alleged debt. Hanson pleaded guilty today to conspiring to operate the ODOG enterprise, in violation of the Racketeer Influenced and Corrupt Organization (“RICO”) statute, and to conspiring to distribute controlled substances.
Brandolino, the second-highest ranking member of the ODOG Enterprise, pleaded guilty to conspiracy to violate RICO and conspiracy to commit money laundering. As part of the plea agreement Brandolino admitted that he assisted Hanson with the importation and distribution of hundreds of kilograms of cocaine and heroin. Brandolino specifically admitted establishing a drug distribution network in New Jersey and New York. Villarreal and Bellandi also pleaded guilty to conspiracy to commit money laundering.
So far, 16 of the 22 defendants charged in connection with this case have pleaded guilty, including Daniel Portley-Hanks, Jack Rissell, Kenny Hilinski, and Rufus Rhone. Portley-Hanks, a Los Angeles based private investigator who assisted Hanson with tracking down delinquent gamblers and other individuals who owed the enterprise money, pleaded guilty to extortion on December 27, 2016. Jack Rissell, labeled as an “enforcer” in the Superseding Indictment, also pleaded guilty to extortion on December 17, 2016. Kenny Hilinski, Hanson’s associate, pleaded guilty to the RICO conspiracy on May 24, 2016. Hilinski operated much of the gambling apparatus from Peru where he maintained various gambling websites, coordinated the collection of payments from various bookies and gamblers, and directed the organization’s runners to distribute the proceeds to Hanson through shell companies and cash deliveries. Portley-Hanks, Rissell, and Hilinski are awaiting sentencing.
Rhone, who pleaded guilty to conspiracy to distribute methamphetamine and cocaine early last year, was sentenced on September 19, 2016 to 72 months in prison.
The remaining defendants are set for trial on February 14, 2017. Luke Fairfield, a San Diego based Certified Public Accountant is accused of assisting Hanson with laundering the proceeds of his various illegal endeavors by, in part, setting up shell corporations and advising members of the Enterprise on how to structure bank transactions to avoid detection by bank security and law enforcement. Derek Loville, a former professional football player, is accused of distributing retail quantities of drugs for the ODOG Enterprise in Arizona. Dylan Anderson and Khalid Petras, the other two remaining defendants, are accused of running an illegal gambling business. charges against these four defendants are merely accusations, and they are considered innocent unless and until proven guilty.
The case arose out of a joint investigation by FBI, IRS and the New South Wales (Australia) Police Force in conjunction with the New South Wales Crime Commission. Hanson was initially indicted and arrested on September 9, 2015 after arranging the delivery of five kilograms of cocaine and five kilograms of methamphetamine. Eight individuals in Australia have been arrested in connection with Hanson’s global organization. Assistant U. S. Attorneys Andrew P. Young, Benjamin Katz and Mark W. Pletcher are prosecuting the case.
DEFENDANT Case Number: 15CR2310-WQH
Owen Hanson Age: 34
Luke Fairfield Age: 40
Kenny Hilinski Age: 39
Giovanni Brandolino Age: 42
Daniel Portley-Hanks Age: 70
Jack Rissell Age: 50
Derek Loville Age: 48
Chalie D’Agostino Age: 52
Marlyn Villareal Age: 32
Dylan Anderson Age: 34
Tim Bryan Age: 48
Jim Muse Age: 53
Jeff Bellandi aka “Jazzy” Age: 50
Curtis Chen Age: 33
James Duley Age: 41
Dee Foxx Age: 35
Khalid Petras Age: 55
Rahul Bhagat Age: 31
David Kipper Age: 35
Todd Oldham Age: 32
Daniel Ortega Age: 42
SUMMARY OF CHARGES
Count 1 (Defendants Hanson and Brandolino)
Racketeering Conspiracy to Conduct RICO Enterprise Affairs, 18 U.S.C. § 1962(d)
Maximum penalty: Life in prison, fine of $250,000 or twice the gross gain or loss caused by the offense, forfeiture of any property obtained or operated by RICO enterprise, five years of supervised release.
Count II (Defendants Bellandi and Villarreal)
Illegal Gambling Business, 18 U.S.C. § 1955
Maximum penalty: Five years in prison, fine of $250,000 or twice the gross gain or loss caused by the offense, forfeiture of proceeds, three years of supervised release.
Count 3 (Defendants Brandolino, Villarreal and Bellandi)
Money Laundering Conspiracy, 18 U.S.C. § 1956(h)
Maximum penalty: Twenty years in prison, fine of $500,000 or twice the gross gain or loss caused by the offense, forfeiture of property involved in the offense, three years of supervised release.
Count 4 (Defendant Hanson)
Conspiracy to Distribute Narcotics, 21 U.S.C. § 841(a)(1) and 846
Maximum penalty: Life in prison, fine of $20 million or twice the gross gain or loss caused by the offense, forfeiture of any proceeds, 10 years of supervised release.
AGENCY
Federal Bureau of Investigation – San Diego Field Office
Internal Revenue Service – San Diego
Australian Crime Commission
New South Wales Police Force
New South Wales Crime Commission
Portland Man Sentenced to Almost Seven Years for Trafficking Bath Salts and OpiatesRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: The Office of the United States Attorney announced that Jonathan Day, 42, of Portland, was sentenced today in U.S. District Court by Judge Jon D. Levy to 80 months in prison and three years of supervised release for conspiring to distribute bath salts, fentanyl, and heroin and for distributing heroin. Day pleaded guilty to the charges on April 1, 2016.
According to court records, from February through May 2015, Day was involved in a conspiracy that distributed bath salts, heroin, and fentanyl. Heroin and fentanyl were obtained from sources in New Hampshire and Massachusetts and bath salts were obtained through the mail from a source outside the United States. Day and his co-conspirators distributed the drugs to customers throughout the state.
This case results from an investigation conducted by the U.S. Drug Enforcement Administration and the Scarborough and Portland Police Departments.