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6 January 2017
District Man Sentenced to Eight Years in Prison for Shooting and Assault in Downtown WashingtonRead the Press Release
WASHINGTON – Ryan Matthews, 28, of Washington, D.C., was sentenced today to eight years in prison on charges stemming from an incident in which he shot one person and assaulted two others in downtown Washington, U.S. Attorney Channing D. Phillips announced.
Matthews pled guilty in October 2016, in the Superior Court of the District of Columbia to one count of assault with intent to kill, one count of possession of a firearm during a crime of violence, and two counts of assault. He was sentenced by the Honorable Michael Ryan.
According to the government’s evidence, on Sept. 10, 2016, at about 3:15 a.m., Matthews approached a complete stranger in the 1300 block of Connecticut Avenue NW and punched him in the abdomen; the victim fell to the ground. Two of the victim’s friends, who were standing nearby, confronted Matthews and asked why he had punched their friend. At this point, Matthews said words to the effect of, “Do you want a piece, too?” and swung at one of the men with his fist, striking him in the neck. A man who was nearby approached Matthews to ask about what happened and Matthews declared words to the effect of, “I guess you want to fight, too.”
Matthews then beckoned the man to approach him, and the man told Matthews to come to him instead. At this point, Matthews drew a semi-automatic pistol, walked toward the man, and shot him once at close range in the right side of the chest. Other individuals, who were nearby at the time of the shooting, pursued Matthews and flagged down police officers. Matthews, meanwhile, discarded his shirt as he ran away and threw his gun into a dumpster in an alley off 18th Street NW. Police apprehended him and recovered the weapon. The shooting victim was taken to a hospital and is continuing to recover from his injuries.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who responded to the crime and investigated the case from the Metropolitan Police Department’s Second District. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Diana Lim and Assistant U.S. Attorney Michael J. Romano, who investigated and prosecuted the matter.
District Man Sentenced to 18 Months in Prison for Stealing Package Off Doorstep, Violating Court OrderRead the Press Release
WASHINGTON – A man with a history of theft convictions was sentenced today to 18 months in prison for stealing a package last summer from a residence in the DuPont Circle area of Northwest Washington and then violating a court order to stay out of the neighborhood pending trial, U.S. Attorney Channing D. Phillips announced.
Wayne Bridgeforth, 60, of Washington, D.C., pled guilty in October 2016, in the Superior Court of the District of Columbia, to charges of second-degree theft, with a felony enhancement, and felony contempt. He was sentenced by the Honorable Neal E. Kravitz, who also ordered that Bridgeforth get drug and mental health treatment. Following his prison term, Bridgeforth will be placed on three years of supervised release, during which time he must stay away from the area where his crimes took place.
Bridgeforth has a history of stealing mail since at least 1984 and has nine previous convictions for theft-related offenses.
According to the government’s evidence, on July 25, 2016, at about 4:45 p.m., a man who was walking his dog saw an individual, later identified as Bridgeforth, take a package off of the stoop of a residence in the 1500 block of Q Street NW. The man followed Bridgeforth and told him to drop the package or he would call the police. Bridgeforth dropped the package and ran. The package contained a camera, which was not damaged in the incident.
Officers with the Metropolitan Police Department later determined that Bridgeforth had been seen in the neighborhood for the past seven months. On Aug. 10, 2016, officers observed Bridegeforth in the 1600 block of Church Street NW and placed him under arrest. Bridgeforth admitted to stealing packages and also wrote a letter of apology to the victim of the July 25 theft. Following his arrest, Bridgeforth was released from custody pending further court proceedings, with an order to stay away from the neighborhood including DuPont Circle. He violated that order and was once again in the area on Sept. 7, 2016, leading to the contempt charge.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Assistant U.S. Attorney Alysa Kociuruba, who prosecuted the matter.
Corpus Christi Man Convicted of Production of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 29-year-old Corpus man has entered a guilty plea to two counts of production of child pornography, otherwise known as sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson.
Authorities identified Mark Anthony Hamauei as the perpetrator of a sexual assault of two juvenile females in July 2016.
A search warrant was executed at his residence and in his vehicle, at which time authorities seized various electronic devices. A forensic analysis on those devices led to the discovery of two videos of the young victims that were sexually explicit in nature. Law enforcement also located more than 1,400 images and 230 videos of child pornography.
U.S. Magistrate Judge B. Janice Ellington accepted the guilty plea today. Sentencing is set before U.S. District Judge Nelva Gonzales Ramos on May 3, 2017. At that time, Hamauei faces a minimum of 15 and up to 30 years in federal prison and a possible $250,00 maximum fine on each count. Upon completion of any prison term imposed, Hamauei also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Hamauei was arrested on federal charges in October 2016 and has been in custody since that time where he will remain pending his sentencing hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Cleveland man indicted on child pornography chargesRead the Press Release
Brian C. Keeling, 34, of Cleveland, charged with advertising, receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said U.S. Attorney Carole S. Rendon.
Keeling knowingly made and caused to be made a notice and advertisement seeking and offering to receive, exchange, display and distribute any visual depiction of a real minor engaged in sexually explicit conduct, and such notice and advertisement were transported using any means and facility of interstate and foreign commerce and in and affecting interstate and foreign commerce by any means including by computer. Keeling also knowingly received and distributed, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce, according to the indictment.
The indictment also charges that on or about December 6, 2016, Keeling possessed a ZTE cellular phone and a Samsung Galaxy Tablet, each of which contained child pornography.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Cleveland office of the Department of Homeland Security, Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cheektowaga Man Pleads Guilty to Possession of Child PornographyRead 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 Robert Acker, 34, of Cheektowaga, NY, pleaded guilty to possession of child pornography before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that on September 1, 2016, the Federal Bureau of Investigation’s Violent Crimes Against Children Task Force executed a search warrant at the defendant’s residence and seized several electronic devices and DVD’s. Forensic examination determined that Acker was in possession of more than 7,000 images of child pornography, some of which depict prepubescent children less than 12 years of age, and some of which depict images of violence.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for April 20, 2017, at 9:00 a.m. before Judge Vilardo.
Career Offender from Clovis Sentenced to 77 Months for Selling 20 Grams of Heroin to Undercover AgentsRead the Press Release
ALBUQUERQUE – Shannon Lamont Jackson, 38, of Clovis, N.M., was sentenced yesterday to 77 months in federal prison followed by three years of supervised release for his heroin trafficking conviction.
Jackson, a career offender whose criminal history includes felony convictions for drug trafficking and violent crimes, was prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible
Jackson was arrested on Dec. 3, 2015, on an indictment charging him with distributing heroin on Sept. 6, 2015, in Bernalillo County, N.M. On Oct. 19, 2016, Jackson pled guilty to the indictment and admitted that in Sept. 2015, he negotiated the sale of approximately 20 grams of heroin with undercover FBI agents.
This case was investigated by the Albuquerque office of the FBI and the Bernalillo County Sheriff’ Office. Assistant U.S. Attorney Shana B. Long prosecuted the 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.
Canton woman indicted for stealing $100,000 from Tennessee man through bogus sweepstakes schemeRead the Press Release
A Canton woman was indicted on charges that she defrauded a Tennessee man out of more than $100,000 after falsely telling him he won a $3 million sweepstakes but had to pay taxes and fees up front, U.S. Attorney Carole S. Rendon said.
Lashell Patton, 42, was indicted on one count of conspiracy to commit wire fraud.
Patton and others falsely told a Tennessee man that he won $3 million in a sweepstakes. They convinced the victim that he needed to pay taxes and fees associated with the sweepstakes up front, and instructed the victim to wire money to Patton in Canton, according to the indictment.
The victim sent 15 Western Union money wires to Patton totaling $11,615 and 111 MoneyGram money wires to Patton totaling $90,090. This took place between July 2015 and April 2016, according to the indictment.
“This defendant preyed upon a vulnerable victim and took advantage of his trust,” Rendon said. “She now will be held accountable for her actions.”
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the Internal Revenue Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Heroin and Fentanyl Traffickers SentencedRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Luis Sandoval (34, Los Angeles, CA) and Miguel Sandoval (35, Inglewood, CA) to six years and three months in federal prison for conspiracy to distribute a kilogram or more of heroin. Miguel Sandoval pleaded guilty on August 22, 2016, and Luis Sandoval pleaded guilty on September 19, 2016.
According to court documents, during January 2016, a task force comprised of narcotics detectives from the Jacksonville Sheriff’s Office (JSO) and special agents from the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI) began investigating a significant heroin supplier based in Jacksonville. Agents and detectives intercepted and arrested the supplier, who had flown to Los Angeles and returned to Jacksonville aboard a Greyhound bus. The supplier was transporting one kilogram of heroin in his luggage, which was seized during the operation. As a result, law enforcement contacted the Sandoval brothers and arranged for the purchase of a kilogram of heroin and fentanyl in Los Angeles.
On April 20, 2016, JSO detectives, DEA and FBI agents from Jacksonville, and law enforcement officers from Los Angeles arrested the Sandoval brothers near Miguel’s home in Inglewood. A search warrant was executed at the home and law enforcement officers located more than a kilogram of fentanyl and a kilogram of heroin.
This case was investigated by the JSO, the DEA, and the FBI. It was prosecuted by Assistant United States Attorney Frank Talbot.
Brunswick man indicted for having child pornographyRead the Press Release
Scott M. Wroten, 53, of Brunswick, was charged with receiving and possessing visual depictions of minors engaged in sexually explicit conduct, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about May 20, 2011 through on or about August 29, 2016, Wroten knowingly received numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on or about April 19, 2016, Wroten possessed a Lenovo computer which contained child pornography. The indictment also charges that on or about August 29, 2016, Wroten possessed a Dell computer, seven USB storage devices and nine external hard drives, each of which contained child pornography.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Cleveland office of the Department of Homeland Security, Homeland Security Investigations, the Ohio Internet Crimes Against Children Task Force, the Wickliffe Police Department and the Brunswick Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Barbour County woman pleads guilty to methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Geniece Pancake, 36, of Belington, West Virginia, was convicted of methamphetamine distribution today, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Pancake pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine.” She faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Baltimore Felon Exiled to 8 Years in Federal Prison for Illegal Possession of a Gun and Heroin DistributionRead the Press Release
Baltimore, Maryland – Late yesterday, U.S. District Judge George L. Russell III sentenced Adrian Donte McFadden, age 23, of Baltimore, Maryland, to eight years in prison, followed by three years of supervised release, for possession with intent to distribute heroin and for possession of a firearm by a convicted felon.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to his guilty plea, on August 12, 2015, McFadden was selling heroin in the courtyard of a public housing area owned by Baltimore City. The area was marked as a “no trespassing” area, and there was a playground near the courtyard. McFadden had a plastic bag with 106 gel capsules of heroin hidden in a hollowed fencepost near the playground at the intersection between May Court and North Spring Court. McFadden kept a .38 caliber, loaded with 5 hollow point .38 caliber bullets, approximately 60 feet away from the heroin stash. He hid the gun on the ground at the base of a tree near the playground. On at least two occasions, McFadden left the courtyard to walk to the tree where he hid the revolver, bending down to check that the revolver was still there. Baltimore Police officers saw McFadden sell two gelcaps of heroin to an individual in exchange for cash. After recovering the gelcaps from the individual, the officers arrested McFadden.
Baltimore City Police arrested McFadden and recovered 3 Oxycontin pills from McFadden’s pants pocket. Police also recovered 106 gelcaps of heroin, weighing 15.38 grams, from the fencepost. After being advised of his rights, McFadden directed officers to the tree where he had hidden the .38 caliber revolver, which police recovered.
As a result of McFadden’s previous felony convictions, it was illegal for him to possess a firearm or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Matthew J. Maddox, who prosecuted the case.
Apex Man Sentenced to 21 Years for the Manufacture of Child PornographyRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on January 4, 2017, United States District Judge Louise W. Flanagan sentenced ANGEL GUERRERO-URIEL, 24, from Apex, N.C., to 252 months in prison and 5 years of supervised release for the Manufacture of Child Pornography (CP). GUERRO-URIEL pled guilty to the charge on July 13, 2015.
In October 2015, the Federal Bureau of Investigation Child Exploitation Task Force (FBICETF) in Raleigh, North Carolina, received a cybertip from the National Center for Missing and Exploited Children (NCMEC) which indicated that images of child sexual exploitation had been uploaded on a social networking website which allows users to share photos, videos, and music. Additionally, the email address and Internet Protocol address (IP address) for the suspect was captured and provided to authorities. The subscriber to that IP address was identified.
Between September 20, 2015, and October 1, 2015, the suspect uploaded 47 files that portrayed child erotica and child sexual exploitation.
On December 15, 2015, the Apex Police Department in Apex, North Carolina, and the FBICETF executed a search warrant at the residence. Agents made contact with ANGEL GUERRERO-URIEL at the residence at which time he provided a statement and consented to a preliminary examination of his cellular phone. Specifically, GUERRERO-URIEL indicated that he lived at the address. Agents subsequently located GUERRERO-URIEL’s phone and a preliminary examination revealed a video of two minor males taking a shower; however, the video did not rise to the level of child pornography (CP). Nonetheless, the defendant acknowledged surreptitiously recording Victim 1, age 7, and Victim 2, age 8, in the shower on December 4, 2015. GUERRERO-URIEL advised that the victims frequently visited his residence because he was a longtime friend of their mothers. However, the defendant acknowledged maintaining iCloud and Dropbox accounts linked to his phone which contained images of CP, as well as the shower video he produced. As the preliminary examination of GUERRERO-URIEL’s phone continued, agents located a video which depicted the molestation of a child. The defendant acknowledged producing the video. GUERRERO-URIEL acknowledge producing two videos which depicted the sexual molestation of Victim 1.
A complete forensic examination of the defendant’s phone, computer equipment, and media storage accounts uncovered at least 85 images and 29 videos depicting CP; however, these images and videos were not manufactured by the defendant. Based on the investigation, GUERRERO-URIEL manufactured CP by filming himself sexually molesting Victim 1, a 7-year-old child, while acting as the child’s baby sitter/guardian. Furthermore, GUERRERO-URIEL produced child pornography on at least three occasions and engaged in prohibited sexual acts with Victim 1 on at least two occasions.
The case was investigated by the Federal Bureau of Investigation Child Exploitation Task Force (FBICETF) in Raleigh and the Apex Police Department. The federal prosecution was handled by Assistant United States Attorney Ethan A. Ontjes.
Amherst man indicted for November bank robberyRead the Press Release
A federal grand jury indicted Adam Carson, 34, of Amherst, on bank robbery charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on or about November 21, 2016, Carson, by force, violence, and intimidation, took approximately $5,590 from the person and presence of a teller at Chemical Bank, 1977 Cooper Foster Park Road in Amherst.
The Amherst Police Department and the Federal Bureau of Investigation conducted the investigation. The case is being prosecuted by Assistant U.S. Attorney Ranya Elzein.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Albuquerque Resident Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Francisco Garcia, 19, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms laws under a plea agreement with the U.S. Attorney’s Office.
Garcia was arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Garcia was arrested on July 8, 2016, and charged by indictment with firearms and drug trafficking offenses. The indictment was subsequently superseded on July 28, 2016, and charged Garcia with distribution of methamphetamine on May 10, 2016 and May 12, 2016, and using and carrying a firearm in relation to a drug trafficking crime. The indictment included forfeiture provisions requiring Garcia to forfeit $1,440 to the United States.
During today’s proceedings, Garcia pled guilty to using and carrying a firearm in relation to a drug trafficking crime. In entering the guilty plea, Garcia admitted that on May 12, 2016, he possessed a firearm during the sale of methamphetamine to an undercover law enforcement agent. Garcia further admitted carrying the firearm for protection and to assist him in his drug trafficking crimes. At sentencing, Garcia faces a statutory minimum penalty of five years in federal prison. A sentencing hearing has yet to be scheduled.
To date, 20 of the 104 defendants have entered guilty pleas and one has been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque offices of ATF. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case.
5 January 2017
Utah Businessman Indicted for Tax EvasionRead the Press Release
A federal grand jury sitting in Salt Lake City, Utah, returned an indictment yesterday charging Peter N. Nordberg, a former resident of Draper, Utah, with tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney John W. Huber for the District of Utah.
According to the indictment, Nordberg was the Chief Executive Officer of Max International, a company that produces and markets nutritional supplements directly and through independent associates and distributors. As an employee of Max International, Nordberg earned a salary and commissions equal to a percentage of sales. The indictment alleges that during 2009 and 2010, Nordberg used a nominee entity that he registered in Delaware to conceal his receipt of commissions from Max International and filed false individual income tax returns that failed to report his commission income.
If convicted, Nordberg faces a statutory maximum sentence of five years in prison for each count, as well as a period of supervised release, restitution and monetary penalties.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Huber thanked agents of Internal Revenue Service–Criminal Investigation, who conducted the investigation, and Trial Attorney Matthew R. Hoffman of the Tax Division and AUSA Ruth Hackford-Peer of the District of Utah, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
U.S. Attorney Patrick Miles Announces Departure at End of Obama AdministrationRead the Press Release
GRAND RAPIDS — Patrick A. Miles, Jr., U.S. Attorney for the Western District of Michigan, today announced his resignation effective noon on January 20, 2017. He informed President Barack Obama and Attorney General Loretta E. Lynch of his decision yesterday Wednesday, January 4. “I am extremely blessed and grateful for the opportunity to serve the public in this capacity over the past four and a half years,” Miles, 49, said in a statement. “It’s been an honor and a privilege to lead such an outstanding team of crime-fighters and people who work hard every day to protect the interests of America and its citizens.”
“Since 2012, Patrick A. Miles, Jr. has served the Western District of Michigan -- and the American people -- with distinction and honor,” said Attorney General Loretta E. Lynch. “Under his leadership, the district successfully stepped up its efforts to prosecute those who exploit the most vulnerable members of our society, commit violent crimes, or defraud taxpayers. Patrick also asserted leadership in reducing recidivism through programs that help returning citizens find jobs and obtain social services. During his term, Patrick's office hosted the first-ever job fair for returning citizens. And Patrick worked hard to strengthen his community -- from forging strong channels of communication between community members and law enforcement officers, to educating local parents and physicians about prescription drug and opioid abuse. I want to thank Patrick for his tireless devotion to the cause of justice, and I wish him the very best in the next chapter of his career.”
Miles became U.S. Attorney for the Western District of Michigan on July 9, 2012 after 21 years in private law practice in Grand Rapids as a business attorney. He assessed the strengths and potential of the office through individual meetings with each of the 37 assistant U.S. attorneys and federal judges in Michigan’s Western District as well as meetings with the U.S. Attorney’s Office’s 45 staff members. After those meetings, Miles took the following first-ever actions for the Office:
- Reorganized the Office’s Criminal Division into four sections -- Organized Drug Crimes, Violent Crimes, Financial Crimes, and National Security -- to streamline management and prosecutorial decisions;
- Created several new task forces for his federal prosecutors to team with law enforcement agents and officers to develop cases proactively;
- Placed each Assistant U.S. Attorney in at least one proactive task force or unit handling reactive cases; and
- Implemented an annual strategic planning process at each level in the office that established specific goals and accountability.
“We get tremendous results in this Office and every day it feels like we make a positive difference,” Miles stated. “From the start of my tenure as U.S. Attorney I focused on protecting the vulnerable and taxpayers. That is why we put more emphasis on preventing and prosecuting cases of children being exploited through pornography or sex trafficking, seniors being targeted by financial scammers, and those who commit fraud against the government and our health care system.” Some criminal prosecution highlights during his tenure include the following:- The Western District’s first-ever child sex trafficking federal prosecution occurred in 2014 against Eddie Jackson. Jackson was convicted of sex trafficking three teenage girls and received a 30-year federal sentence. Since then, Miles’s office has prosecuted 11 defendants for sex trafficking minors.
- Over the past four years Miles’s child exploitation prosecution team obtained 106 convictions involving the sexual exploitation of children using the internet, resulting in over 1,700 aggregate years of federal sentences.
- Evan Knoll received a 17-year federal sentence in 2012 for defrauding over $82 million from the U.S. government and banks.
- Kim Mulder, the former CEO of Kentwood Pharmacy, conspired to commit a $79 million healthcare fraud based on billing Medicare Part D plans, Medicaid and private insurance plans for misbranded and adulterated drugs and received a 10-year federal prison sentence in 2015.
Combating Gang and Group Violence
Miles also said he prioritized addressing violent crime with locally-tailored strategies. “We changed our approach to reducing violent crime in our seven urban cities of Battle Creek, Benton Harbor, Holland, Grand Rapids, Kalamazoo, Lansing, and Muskegon Heights by forming violent crime reduction task forces in 2013 to work with federal, state and local law enforcement to continuously identify and prioritize for federal prosecution the people, groups, and gangs causing the most neighborhood shootings and disruptions,” Miles stated.
Miles said he was particularly satisfied by the 2013 federal indictment against 31 members and associates of the Holland Latin Kings gang wiping out the criminal enterprise that had caused many problems for over a decade in Holland, Michigan. His office obtained 31 convictions for a range of offenses, including conspiring to engage in racketeering, possessing firearms and conspiring to distribute cocaine and marijuana which resulted in a total of 340 years of federal prison sentences.
Effective Prisoner Re-Entry
Miles highlighted the emphasis he placed on effectively returning citizens from prison to their community as a crime reduction strategy. “Nationally, two-thirds of those released from prison will be re-arrested within three years. In Michigan, we have about a 30 percent rate of recidivism. With 800,000 Americans being released from prison annually, we must get that recidivism rate lower.” In 2014, Miles introduced the “Facing Choices” program where he and the County Prosecutor, Sheriff, a Federal Bureau of Alcohol, Tobacco, and Firearms agent, and local Chief of Police in each of the seven urban cities in the Western District address a group of recent Michigan Department of Corrections parolees and give them a “tough love” speech of warning and encouragement and steer them to social services agencies for assistance.
Miles’s U.S. Attorney’s Office hosted its first-ever job fair in September 2016 where approximately 200 returning citizens connected with about 20 employers in Grand Rapids. “Employment is crime prevention,” Miles noted. “If a prison sentence results in a life-time ban on employment, then people will likely return to criminal activity. I’m not calling for a preference to hire those with a criminal record, I’m just asking employers not to rule someone out automatically if the past offense is not related to the job opening.”
Police-Community Relations
“Improving the relationship between law enforcement and community members was very important to me from the outset as U.S. Attorney,” Miles noted. Since becoming U.S. Attorney Miles co-chaired the Grand Rapids chapter of Advocates & Leaders for Police and Community Trust (ALPACT) group which started in 2012 and consists of local community leaders from different backgrounds who meet regularly with federal, state, and local law enforcement agents and officers to discuss a variety of topics. He also helped form and supported ALPACT groups in Battle Creek, Benton Harbor, Holland, Kalamazoo, and Lansing. “We need trust between community and law enforcement to prevent and address shared problems. It’s difficult to develop trust in a crisis situation. It takes communication for a relationship, and it takes a relationship to develop trust,” Miles noted.
In the fall of 2014 Miles began meeting with law enforcement leaders in Berrien, Calhoun, Ingham, Kalamazoo, Kent, Muskegon, and Ottawa Counties to discuss their protocols and best practices before, during, and after an officer-involved shooting. “We are blessed overall with very professional police departments. I encourage police community outreach at the top and on the streets not only to influential community leaders from the Generation X and Baby Boom generations, but also to those in the Millennial Generation who have significant local social media followings.”
Hiring Veterans
The first prosecutor Miles hired in 2012 as U.S. Attorney was a Major in the U.S. Army who served in Baghdad, Iraq and Guantanamo Bay, Cuba. As U.S. Attorney, Miles also hired the Office’s Administrative Officer, Human Resources Officer, Budget Officer, and his executive assistant who are all U.S. Army or National Guard veterans. Miles received a 2013 Patriot Award from the Employer Support of the Guard and Reserve Committee for his hiring and support of reservists and veterans.
Miles’s Office hosted the local ceremony in 2012 where four members of the Montford Point Marines, who were not able to travel to Washington, DC for their award, received their Congressional Gold Medals. Montford Point Marines were the first African American Marines and served in World War II.
Community Outreach and Education
In 2015, Miles and his Office developed and launched an educational program called Justice Scholars at Gerald R. Ford Middle School in Grand Rapids for 7th grade students to learn about the American criminal justice system from law enforcement agents and officers, prosecutors, defense attorneys, judges, and probation and parole officers. For one hour each month during the school year the class receives a lesson from a professional about each step in the criminal justice process as well as that career. In the final session, the class conducts a mock trial with instruction from attorneys in a federal courtroom with a judge presiding. Justice Scholars expanded to Lansing Middle Schools in 2016.
Miles, along with the U.S. Attorney for the Eastern District of Michigan and the State Attorney General, organized Michigan’s first-ever Prescription Drug Awareness Summit in 2013 which was held in Lansing. Widely attended by law enforcement, education and medical professionals, the Summit raised awareness of prescription pain killer drug diversion and addiction and of various programs and initiatives responding to the epidemic. The increasing use of opioid pain killers is also feeding the heroin epidemic so Miles and his Office are actively educating parents, physicians, and the public about those risks and dangers as well as prosecuting healthcare providers who prescribe drugs illegally in addition to prosecuting illegal drug trafficking organizations.
Background
President Obama nominated Grand Rapids native Miles to serve as U.S. Attorney for the Western District of Michigan on March 29, 2012, and Miles was confirmed unanimously by the U.S. Senate on June 29, 2012. Prior to his presidential appointment Miles, a 1991 Harvard Law School graduate, was a partner based in Grand Rapids with a large, national law firm. Miles, who served as president of the Grand Rapids Bar Association from 2004 to 2005, was the Democratic nominee for Michigan’s Third District Congressional seat in 2010. He did not announce his future career plans, only stating, “I’m looking forward to the next challenge, whatever that may be.”
The U.S. Attorney’s Office for the Western District of Michigan has 38 attorneys and a total staff of 83 with offices in Grand Rapids, Lansing, and Marquette. The district covers 49 counties, including Michigan’s entire Upper Peninsula. The Office’s immediately prior presidentially-appointed U.S. Attorney was Margaret Chiara who was appointed by President George W. Bush and served from October 2001 until March 2007.
For additional information on the accomplishments of the U.S. Attorney’s Office for the Western District of Michigan under the direction of U.S. Attorney Miles, please refer to the Year in Reviews for years 2012, 2013, 2014 and 2015:
https://www.justice.gov/usao-wdmi/year-review
END
Two defendants plead guilty for roles in Boone County heroin conspiracyRead the Press Release
CHARLESTON, W.Va. – A Detroit man and a Boone County woman pleaded guilty today to federal drug crimes, announced United States Attorney Carol Casto. Daymeon Damar Johnson, 31, entered his guilty plea to conspiracy to distribute heroin. Joyce Ann Zornes, 33, of Seth, pleaded guilty to aiding and abetting the distribution of heroin.
Johnson and Zornes admitted that they both took part in a conspiracy to distribute heroin in Boone County. Johnson admitted that from 2013 to August 2016, he ordered heroin from his supplier, arranged to get the drugs to Boone County, and distributed the heroin to drug users and other drug dealers. Zornes admitted that from May 2015 to August 2016, she transported heroin from Detroit to Boone County for distribution. Zornes additionally admitted that she used her residence in Seth to distribute heroin.
Johnson also admitted that he traded drugs for guns. One such gun was a KBI, Inc. SKS-45, 7.62 x 39 caliber semiautomatic rifle, which Johnson agreed to sell on March 25, 2016, in order to raise bail money for Zornes, who had been arrested in Jackson County. Johnson gave the gun to an individual who sold the firearm to an informant working with the U.S. 119 Task Force.
Johnson and Zornes further admitted that on August 1, 2016, they worked together to sell heroin to an informant working with the U.S. 119 Task Force. Zornes admitted that the drug deal took place at her residence, and that she took the informant’s money while Johnson distributed the heroin. On August 3, 2016, the U.S. 119 Task Force executed a search warrant at Zornes’ residence. Johnson and Zornes were both present when agents seized heroin, prescription drugs, cash, scales, and ammunition. On August 9, 2016, the U.S. 119 Task Force executed another search warrant at Zornes’ residence based on information from a phone call Zornes had placed from South Central Regional Jail. Agents recovered additional heroin, prescription drugs, and cash that included $90.00 in prerecorded buy money from the August 2, 2016, controlled purchase of heroin.
Johnson and Zornes each face up to 20 years in federal prison. Johnson is scheduled to be sentenced on April 4, 2017. Zornes is scheduled to be sentenced on March 30, 2017.
The U.S. 119 Task Force conducted the investigation. Assistant United States Attorney Joshua C. Hanks is in charge of these prosecutions. The plea hearings were held before United States District Judge Joseph R. Goodwin.
These cases are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Members of Taos County-Based Heroin Trafficking and Money Laundering Ring Enter Guilty PleasRead the Press Release
ALBUQUERQUE – Two more members of a Taos County-based heroin and money-laundering ring have entered guilty pleas in federal court in Albuquerque, N.M. Elena Carabajal, 26, of Taos County, N.M., entered a guilty plea yesterday to a heroin trafficking charge, and Wilma Romero, 66, of Arroyo Hondo, N.M., pled guilty today to heroin trafficking and money laundering charges. Carabajal and Wilma Romero are two of nine defendants charged with heroin trafficking and money laundering offenses as the result of a 15-month DEA-led multi-agency investigation into a heroin trafficking organization led by Ivan Romero, 40. To date, six of the nine defendants have entered guilty pleas.
Wilma Romero and seven co-defendants initially were charged with heroin trafficking and money laundering offenses in an eight-count indictment filed in Dec. 2015. The indictment was superseded in Feb. 2016 to add Carabajal as a ninth defendant and five additional charges. The superseding indictment charged Carabajal, Wilma Romero, Ivan Romero, Ricco Romero, 29, and five other defendants with conspiring to distribute heroin from at least June 2012 through Dec. 2015. It also charged Ivan Romero, Ricco Romero, Melissa Romero, 37, and Wilma Romero with conspiring to launder heroin trafficking proceeds. The superseding indictment also included substantive heroin trafficking and firearms charges against specific defendants including Carabajal, as well as forfeiture provisions seeking forfeiture to the United States of any and all assets and property derived, either directly or indirectly, from proceeds obtained from the criminal activities charged.
Carabajal pled guilty yesterday to possessing heroin with intent to distribute, and admitted helping Ricco Romero distribute heroin. She also acknowledged that on Dec. 18, 2015, law enforcement agents seized $69,752 in cash and approximately 95.8 grams of heroin while executing a federal search warrant at the residence she shared with Ricco Romero, the couple’s vehicles and safes. Under the terms of her plea agreement, Carabajal will be sentenced to not more than 30 months in prison followed by a term of supervised release to be determined by the court. A sentencing hearing has yet to be scheduled.
Today Wilma Romero entered a guilty to the money laundering conspiracy charge and a heroin trafficking charge. Under the terms of her plea agreement, Wilma Romero will be sentenced to not more than 24 months in prison followed by a term of supervised release to be determined by the court.
Four of their co-defendants previously entered guilty pleas in the case. On Dec. 5, 2016, Ivan Romero pled guilty to Counts 1 and 2 of the superseding indictment, charging him with participating in a heroin trafficking conspiracy and a money laundering conspiracy. Ricco Romero also pled guilty on Dec. 5, 2016, to participating in a heroin trafficking conspiracy and a money laundering conspiracy, and to possessing firearms in furtherance of his drug trafficking activities. Melissa Romero entered a guilty plea on Dec. 8, 2016, to Count 2 of the superseding indictment, charging her with participating in a money laundering conspiracy. Tyler Baker, 45, of Taos County, N.M., entered a guilty plea in October 2016.
According to the admissions contained in the plea agreements of the defendants who have entered guilty pleas as well as other court filings, Ivan Romero was the leader of a heroin trafficking organization based in Taos County. Ivan Romero and his brother Ricco Romero were responsible for purchasing quantities of heroin from suppliers in Albuquerque and Los Lunas, N.M. Other members of the organization acted as couriers and regularly transported large quantities of heroin to Ivan Romero and Ricco Romero in Taos County. Upon receiving the bulk heroin, Ivan Romero and Ricco Romero prepared the heroin for distribution by mixing or “cutting” it with other substances, repackaged it in smaller portions, and distributed it both directly and through a network of other drug dealers.
On April 2, 2015, law enforcement officers executed a state search warrant at Ivan Romero’s residence where they seized drug paraphernalia, 461 grams of marijuana, 30 grams of hashish, more than 300 grams of heroin and $64,920 in cash. Ivan Romero was arrested on state charges that day, and Ricco Romero subsequently assumed a greater managerial role in the heroin trafficking organization at that time.
Following Ivan Romero’s arrest on April 2, 2015, a state court set his bond at $90,000. Wilma Romero, Ricco Romero and Melissa Romero conspired to launder $90,000 in heroin proceeds to post that bond and secure Ivan Romero’s release from state custody. Ivan Romero soon violated the conditions of his release, was remanded back to state custody and a second bond was set at $150,000. In May 2015, Wilma Romero, Ricco Romero and Melissa Romero again conspired to launder an additional $150,000 in heroin proceeds to post that bond
On June 29, 2015, law enforcement agents executed a federal search warrant at Wilma Romero’s residence. In the course of that search, agents seized approximately 97.5 grams of heroin, a small amount of marijuana, drug paraphernalia, $73,288 and gold coins.
On Nov. 17, 2015 and Dec. 1, 2015, Ricco Romero distributed heroin to an individual working with law enforcement agents. Thereafter, on Dec. 18, 2015, law enforcement agents obtained and executed a federal search warrant at Ricco Romero and Carabajal’s residence and Wilma Romero’s residence as well as at another residence where Ricco Romero and Carabajal maintained a safe. During those searches, agents seized 96.8 grams of heroin, $70,562 in cash, and two firearms.
If the plea agreements are accepted by the court, Ivan Romero will be sentenced to a prison term within the range of 120 to 144 months, Ricco Romero will be sentenced to a 120-month prison term, and Melissa Romero will be sentenced to a term of probation. Pursuant to their plea agreements, Ivan Romero, Ricco Romero, Melissa Romero and Carabajal have agreed to forfeit $431,870 in heroin proceeds and firearms to the United States.
The investigation leading to the indictment was conducted by the Albuquerque office of the DEA, the HIDTA Region III Drug Task Force, New Mexico State Police, Taos Police Department, Taos County Sheriff’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Timothy S. Vasquez is prosecuting the 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.
Two Maryland MS-13 Members Sentenced to Federal Prison for Shootings and Murders in Violent Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus today sentenced Eric Antonio Mejia-Ramos, aka “Flaco,” age 22, of Hyattsville, Maryland, today to life in prison, for conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including participating in a murder. Mejia-Ramos was convicted by a federal jury on September 30, 2016.
Yesterday, on January 4, Judge Titus sentenced Luis Guzman-Ventura, a/k/a “Casper,” age 23, of Hyattsville to 30 years in prison, followed by five years of supervised release, on the same charge. Guzman-Ventura pleaded guilty on September 13, 2016, just before the first day of trial.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Hank Stawinski of the Prince George’s County Police Department; Chief Douglas Holland of the Hyattsville Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
“This case illustrates the extreme danger and cruelty of the MS-13 gang,” said U.S. Attorney Rod J. Rosenstein. “Members murder young men and women just because they think the victims belong to rival gangs.”
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to Guzman-Ventura’s plea agreement and evidence presented at Mejia-Ramos’ three-week trial, from at least 2009 through 2014, members and associates of MS-13, including Mejia-Ramos and Guzman-Ventura, planned and engaged in crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering, and witness retaliation. During that time, Mejia-Ramos was a member of the MS-13 Parkview Locotes Salvatrucha clique, and Guzman-Ventura was a member of the Weedons Clique of MS-13.
According to evidence presented at trial, on the night of August 28, 2012, Mejia-Ramos plotted with other gang members to kill Ingrid Martinez because they thought she belonged to a rival gang. Mejia-Ramos lured the victim to a park in Beltsville and shot her to death.
Guzman-Ventura admitted that on December 5, 2012, he was the front seat passenger in a vehicle being driven by another MS-13 member, Jose Rodriguez-Nunez. Guzman-Ventura admitted that he shot at three individuals believed to be rival gang members, killing Eliezer Reyes and wounding a second victim. Rodriguez-Nunez, a/k/a “Killer,” age 27, of Hyattsville, Maryland, previously pleaded guilty to being the driver in the drive-by shooting and is detained pending sentencing, scheduled for January 9, 2017, at 10:00 a.m.
Fourteen of the 15 defendants charged in this investigation have been convicted for their roles in the racketeering conspiracy. The final defendant is a fugitive.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County Police Department, the Hyattsville Police Department; and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau, Lindsay Eyler Kaplan, and Trial Attorney Catherine Dick with the Justice Department Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
Two Maryland MS-13 Members Sentenced for Violent Racketeering Conspiracy Including MurderRead the Press Release
Two Hyattsville, Maryland, men were sentenced for conspiracy to participate in the racketeering enterprise activity of a violent gang known as La Mara Salvatrucha, or MS-13, including murder.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Rod J. Rosenstein of the District of Maryland; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Baltimore; Chief Hank Stawinski of the Prince George’s County, Maryland, Police Department; Chief Douglas Holland of the Hyattsville Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks made the announcement.
Eric Antonio Mejia-Ramos, aka Flaco, 22, was sentenced today to life in prison to be followed by five years of supervised release. Luis Guzman-Ventura, aka Casper, 22, was sentenced yesterday to 30 years in prison to be followed by five years of supervised release. U.S. District Judge Roger W. Titus of the District of Maryland imposed the sentences. Mejia-Ramos was convicted by a jury on Sept. 30, 2016, of one count of conspiracy to participate in a racketeering conspiracy and Guzman-Ventura pleaded guilty to the same charge on Sept. 13, 2016.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to Guzman-Ventura’s plea agreement and evidence presented at Mejia-Ramos’ trial, from at least 2009 through 2014, the defendants and other members and associates of MS-13 planned and engaged in crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering and witness retaliation. During that time, Mejia-Ramos was a member of the Parkview Locotes Salvatrucha clique and Guzman-Ventura was a member of the Weedons Clique of MS-13.
According to trial evidence presented against Mejia-Ramos, on the night of Aug. 28, 2012, Mejia-Ramos lured a woman he believed to be a rival gang member to a park in Beltsville, Maryland, then shot the woman to death.
In connection with his plea, Guzman-Ventura admitted that on Dec. 5, 2012, while he was the front-seat passenger in a vehicle being driven by another MS-13 member, Jose Rodriguez-Nunez, he shot at three individuals believed to be rival gang members, killing one and wounding a second victim. After the shooting, Rodriguez-Nunez and Guzman-Ventura fled the scene to avoid being identified. Rodriguez-Nunez, aka Killer, 27, of Hyattsville, previously pleaded guilty to being the driver in this drive-by shooting and is detained pending sentencing, scheduled for Jan. 9, 2017.
Fourteen of the 15 defendants charged in this investigation have been convicted for their roles in the racketeering conspiracy. The final defendant is a fugitive.
HSI Baltimore, the Prince George’s County Police Department, the Hyattsville Police Department and the Prince George’s County State’s Attorney’s Office investigated the case. The Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit provided assistance in the investigation. Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland and Trial Attorney Catherine Dick of the Criminal Division’s Organized Crime and Gang Section are prosecuting this case.
Two Baltimore Heroin Distributors Each Sentenced to at Least 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced George Trent, age 28, and Kendrick Kelly, age 38, both of Baltimore, Maryland, to 12 years in prison and 10 years in prison, respectively, each followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin. Trent was sentenced on January 4, 2017 and Kelly was sentenced on January 3, 2017.
The sentences were 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 Commissioner Kevin Davis of the Baltimore Police Department.
According to their plea agreements, between April 2015 and April 2016 Trent and Kelly conspired with Courtney Barrett and others to process and distribute heroin. The conspirators met at an apartment on St. Paul Street in Baltimore to mix the heroin with cutting agent and place it in gel capsules for further redistribution in the Baltimore area. The conspirators used the St. Paul Street apartment to process heroin for several months, producing thousands of gel capsules of heroin each week.
Kelly and Trent subsequently used an apartment on Battery Avenue in Baltimore to process the heroin. On April 7, 2016, a search warrant was executed at the apartment, after both Trent and Kelly were seen entering and exiting the apartment that day. More than a kilogram of heroin was found hidden inside and just outside the apartment. Law enforcement also recovered items used in the processing of narcotics, including cutting agent, latex gloves, and a large number of empty gel capsules.
As part of their plea agreements, Trent and Kelly admitted that over the course of the conspiracy they distributed more than three kilograms of heroin.
Courtney Barrett, age 30, of Woodlawn, Maryland, previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on January 18, 2017.
United States Attorney Rod J. Rosenstein praised the FBI, and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Matthew C. Sullivan, who is prosecuting the case.
Three from Marion charged with theft of government propertyRead the Press Release
Three people from Marion were charged in federal court with stealing nearly $63,000 worth of government property, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.
Charged in the criminal information were Carol Brown, 58; Lisa Brown, 46, and Donald Brown, 61. They were each charged with one count of theft of government property.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the U.S. Railroad Retirement Board – Office of Inspector General, in Philadelphia. case is being handled by Assistant United States Attorney Tracey Ballard Tangeman.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Susanville Man Indicted on Narcotics and Firearms ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Courtney Dale Eames, 55, of Susanville, charging him with possession with intent to distribute methamphetamine, being a felon in possession of a firearm, and possession of stolen firearms, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Susanville Police Officers executed search warrants at Eames’s address in September 2016. In the course of the search, the officers found a package of methamphetamine as well as 32 different firearms and several hundred rounds of ammunition.
This case is the product of an investigation by the FBI and the Susanville Police Department. Assistant U.S. Attorney Owen Roth is prosecuting the case.
If convicted, Eames faces a maximum statutory penalty of 40 years in prison on the methamphetamine charge and a substantial fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sunbury Man Sentenced to 180 Months for Distribution of Child PornographyRead the Press Release
COLUMBUS, Ohio – Mark W. Wolfe, 51, of Sunbury, Ohio, was sentenced in U.S. District Court to 180 months in prison, 20 years of supervised release and ordered to pay $12,000 in restitution for distribution of child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) and Westerville Police Chief Joseph Morbitzer announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, undercover investigators observed files containing child pornography being shared through an IP address belonging to Wolfe. During a search warrant executed on July 31, 2015 at Wolfe’s residence, investigators discovered a laptop containing approximately 486 videos and 203 images of child pornography.
The files were located in several folders on the computer under the user name “Mark.” Some of the videos showed children as young as eight to ten months old being sexually abused. Approximately 67 of the videos found on the Dell computer were live webcam sessions depicting children being repeatedly sexually assaulted, that WOLFE watched and recorded utilizing screen capture software.
Further forensic analysis of the computer revealed Skype chat messages between Wolfe and several other individuals. In these conversations, Wolfe distributed child pornography files, claimed to have previously engaged in sex acts with minors and stated that his favorite age is five to ten years old.
Wolfe was charged by indictment in September 2015 and pleaded guilty in March 2016.
U.S. Attorney Glassman commended the investigation by the FBI Columbus Child Exploitation Task Force, which includes officers from the Westerville Police Department, Reynoldsburg Police Department, Powell Police Department and Belmont County Sheriff’s Office, as well as Assistant U.S. Attorney Heather A. Hill, who is prosecuting the case.
Stockton Man Sentenced to 15 Years in Prison for Drugs, Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — Richard J. Beall, 49, of Stockton, was sentenced today by U.S. District Judge Morrison C. England Jr. to 15 years in prison for distribution of methamphetamine and possession of a firearm in furtherance of a drug-trafficking crime, U.S. Attorney Phillip A. Talbert announced.
Beall pleaded guilty to the charges on September 29, 2016. According to the plea agreement, in February and March 2016, Beall engaged in methamphetamine transactions with an undercover agent and a confidential informant. During one transaction in Beall’s residence, he sat on a couch with a semi-automatic pistol on an end table near his left hand. Beall cannot legally possess firearms because he is a convicted felon.
“At ATF, our highest priority is reducing violent crime within our communities,” said ATF Special Agent in Charge Jill Snyder. “This case is an example of the work ATF agents do on a daily basis to protect the public from armed drug traffickers who threaten our neighborhoods.”
According to court documents, on March 29, 2016, Beall was seen driving a truck that had been reported stolen. When local patrol officers initiated a traffic stop, Beall drove off and led the officers on a chase through orchards and farmlands before abandoning the truck and climbing a cherry tree. The arresting officers got him down from the tree and found a loaded pistol in his left-rear pocket. Later that day, officers obtained and executed a search warrant at Beall’s residence and found a loaded AK-47 rifle with a high-capacity magazine and two additional handguns.
This case was a product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Stockton Police Department, and the California Highway Patrol. Assistant U.S. Attorney Ross K. Naughton prosecuted the case.
St. Louis Man Sentenced to 25 Years for Drug-Related HomicideRead the Press Release
St. Louis, MO – Walter Wallace, Jr., was sentenced to 25 years in prison on the charge of possession of a firearm in furtherance of drug trafficking resulting in the December 18, 2010, murder of Michael Hayes. Mr. Hayes was found shot inside his residence on Alice Avenue in the City of St. Louis. Wallace was sentenced this afternoon by United States District Court Judge Henry E. Autrey. His co-defendant, Jerry Chambers, will be sentenced later this month.
In the fall of 2010, Wallace engaged in discussions with others about committing a robbery of Mr. Hayes. In furtherance of those discussions, Wallace and others conducted surveillance of Mr. Hayes’ residence, obtained information about the interior of Mr. Hayes’ residence and, on at least one occasion, unsuccessfully attempted to make entry into Mr. Hayes’ residence.
On December 18, 2010, Wallace and his co-defendant, Jerry Chambers, carried out the burglary of Mr. Hayes’ residence. Wallace and Chambers drove to the area of the residence and parked in an alley behind the residence. The two men went to the front door of Mr. Hayes’ residence believing that Mr. Hayes was not at home. Wallace was armed with a 9mm caliber firearm. Chambers possessed a crowbar. After a few minutes, Chambers forced entry into Mr. Hayes’ residence with the crowbar.
Wallace and Chambers entered the residence. Mr. Hayes was not present at that time. Among other things, Wallace entered Mr. Hayes’ bedroom to search for items to take. As Wallace searched, Mr. Hayes returned home and made entry into his bedroom from a separate door. When Mr. Hayes stepped inside, Wallace removed his firearm. Wallace shot Mr. Hayes once. Mr. Hayes was struck by the bullet and died from his injuries. Wallace’s firearm jammed after that first shot. No struggle occurred between Mr. Hayes and Wallace at any time. Wallace ran from and exited the residence after shooting Mr. Hayes. Wallace and Chambers, who had been in a separate part of the residence at the time of the shooting, drove away from the scene.
In the hours and day(s) following the murder of Mr. Hayes, Wallace discarded some of the clothing worn by him at the time of the murder, as well as the firearm used.
Wallace’s sentence comes in connection with the on-going coordinated effort to address the commission of homicides in the City of St. Louis between United States Attorney Richard Callahan’s office, the St. Louis Circuit Attorney’s Office, the St. Louis Metropolitan Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Squirrel Hill Restaurant, Owner Plead Guilty to Unfair Labor PracticesRead the Press Release
PITTSBURGH – The owner of Sun Penang, Inc., a Pittsburgh restaurant, pleaded guilty Tuesday in federal court to charges of falsifying, concealing, or covering up by trick, scheme, or device a material fact, and on behalf of the business ofwillfully violating the Fair Labor Standard Act, Acting United States Attorney Soo C. Song announced today.
Hsiao Yen Wu, a/k/a Sophia Wu, age 40, of Pittsburgh, Pa and Sun Penang, Inc., located at 5829 Forbes Avenue, Pittsburgh, PA 15217 pleaded guilty to three counts before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that after Sun Penang had agreed to pay back wage payments, Wu represented that Sun Penang had issued all back wage payments checks and provided faxed copies of these checks to the Department of Labor. However, Wu knew that the employees were not paid back wage payments because these employees were required either to deposit the checks into Wu's personal bank account or to work without pay until Sun Penang recouped the wages. Sun Penang failed to pay minimum wages and overtime pay to their employees from January 1, 2013 to December 31, 2013.
Judge Ambrose scheduled sentencing for April 25, 2017 at 10 a.m.
With respect to Wu, the law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. With respect to Sun Penang, the law provides for a maximum fine of $20,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Department of Labor, Office of Inspector General conducted the investigation that led to the prosecution of Wu and Sun Penang, Inc.
South Bend Man Sentenced to 528 Months ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Lindani Mzembe, 32, of South Bend, Indiana was sentenced before South Bend District Court Judge Robert Miller, Jr. for kidnapping, making a ransom demand, discharging a firearm during a crime of violence and being felon in possession of a firearm.
Mzembe was sentenced to 528 months imprisonment and 1 year supervised release.
According to documents filed in this case, Mzembe and his codefendants possessed firearms as felons to unlawfully confine or kidnap an individual and demanded a ransom for that individual’s release. A firearm was discharged, hitting the victim, during the kidnapping. Two co-defendants, Ivan Brazier and Derek Fields were convicted in separate trials of kidnapping, extortion, being a felon in possession of a firearm, and use of a firearm in a crime of violence. Derek Fields is scheduled to be sentenced on February 22, 2017.
This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Federal Bureau of Investigation; South Bend Police Department and the St. Joseph County Metro Homicide. This case was prosecuted by Assistant United States Attorneys John M. Maciejczyk and Joel Gabrielse.
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Shawnee Woman Sentenced to Serve 14 Months in Prison for Covering up Manslaughter on Indian LandRead the Press Release
Oklahoma City, Oklahoma – Anne Marie Johnson, 38, of Shawnee, Oklahoma, was sentenced yesterday by United States District Court Judge Vicki Miles-LaGrange to serve 14 months in federal prison for misprision of a felony for her role in the manslaughter of Marshall Scott Dent committed on Indian land, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to court records and information from court proceedings, George Edmond Walker, 39, of Shawnee, and Marshall Scott Dent met on December 23, 2013. During an altercation between the two men, Walker killed Dent on Sac and Fox Nation land near Shawnee, Oklahoma. Dent was reported missing on December 24, 2013. Investigators later determined that Walker buried Dent’s body on Sac and Fox land, where Johnson lived, near Shawnee in an attempt to hide the crime. Later, Walker dug up the body and moved it to another parcel of Sac and Fox land near Meeker, Oklahoma, where he buried Dent’s body again. During the investigation, law enforcement obtained information on the location of the body, where it was later recovered by the FBI’s evidence response team.
On September 13, 2016, Johnson pled guilty to misprision of a felony because she had knowledge about the killing but failed to report it to law enforcement. Yesterday, Johnson was sentenced to serve 14 months in federal prison, to be followed by 12 months of supervised release.
On August 22, 2016, Walker pled guilty to voluntary manslaughter and unlawful removal of a dead body. Last month, Judge Miles-LaGrange sentenced Walker to serve 240 months in federal prison to be followed by three years of supervised release. That sentence was ordered to be served consecutive to a 40-year sentence Walker is currently serving for his conviction of assault and battery with a dangerous weapon in Pottawatomie County.
This case was investigated by the Sac and Fox Nation Police Department, Shawnee Police Department, Pottawatomie County Sheriff’s Office, Pottawatomie County District Attorney’s Office, and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Arvo Q. Mikkanen, Ashley Altshuler, and Lori Hines.
Scio Woman Pleads Guilty in Meth ConspiracyRead 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 Elizabeth J. Schreiber, 37, of Scio, NY, pleaded guilty before U.S. District Court Judge Lawrence J. Vilardo to conspiracy to manufacture, possess with intent to distribute, and to distribute, a mixture and substance containing methamphetamine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that between January of 2011 and late 2014, the defendant conspired to manufacture and distribute methamphetamine. Schreiber, in an effort to avoid restrictions on purchasing significant quantities of products containing pseudoephedrine—an integral ingredient in the methamphetamine manufacturing process, purchased only small quantities of such products at local pharmacies. The practice is referred to as “smurfing.”
A total of 12 people have been arrested as part of this conspiracy, Schreiber is the seventh defendant to be convicted.
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; U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Steven Oldman; and the New York State Department of Environmental Conservation, under the direction of Captain Frank Lauricella.
Sentencing is scheduled for April 6, 2017, before Judge Vilardo.Sandy Springs Podiatrist and Office Manager charged with Illegal Distribution of Fentanyl, Oxycodone, and Other DrugsRead the Press Release
ATLANTA – Dr. Arnita Avery-Kelly, a licensed podiatrist, and Brenda Lewis, Avery-Kelly’s office manager, have been arraigned on federal charges of illegal distribution of opioid pain killers and other drugs at clinic locations purporting to provide podiatric care in Sandy Springs, and Lithonia, Georgia. Dr. Avery-Kelly and Ms. Lewis were indicted by a federal grand jury on December 21, 2016.
“Dr. Avery-Kelly was trusted to provide appropriate medical care to her patients,” said U. S. Attorney John Horn. “Instead, with the assistance of Ms. Lewis, she allegedly prescribed addictive opioids without any legitimate medical need. Addiction to powerful prescription opioids unfortunately continues to take a daily toll on many members of our community.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division commented on the case, “It is sad commentary when persons in the medical community abuse their positions of trust to hide behind the veil of legitimacy to commit criminal acts. The reckless distribution of pharmaceuticals results in addiction and death. Many thanks to the men and women in law enforcement who made this case a success.”
“Health care fraud and the abuse of prescription medications are increasing threats to our local communities,” said Derrick L. Jackson, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “HHS-OIG continues to focus resources on those who divert prescription medication for profit and abuse. Our criminal investigators will continue to work with our law enforcement partners to bring the responsible individuals to justice.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: Dr. Arnita Avery-Kelly is a licensed podiatrist, which means she is permitted to evaluate and treat the foot and leg. A nearly three-year federal investigation began after the Georgia Drug & Narcotics Agency (GDNA) visited Dr. Avery-Kelly in November 2013, and February 2014, to discuss high volume, high dosage prescriptions she had written for opioids. The indictment alleges that despite GDNA’s warnings, Dr. Avery-Kelly, with the assistance of office manager, Brenda Lewis, continued to prescribe large volumes of controlled substances without a legitimate medical need and outside the scope of a podiatric practice.
For example, during a nine-month period between December 2014 through August 2015, Dr. Avery-Kelly allegedly prescribed over 116,500 oxycodone 30mg pills, 41,800 hydromorphone 8mg pills, and 400 fentanyl patches. In April 2016, agents with the DEA and HHS executed a federal search warrant at Dr. Avery-Kelly’s office in Sandy Springs. At that time, Dr. Avery-Kelly voluntarily surrendered her DEA registration that permitted her to prescribe controlled substances.
Dr. Arnita Avery-Kelly, 54, and Brenda Lewis, 55, both of Atlanta, Georgia, were arraigned before U.S. Magistrate Judges Russell G. Vineyard and Catherine M. Salinas, respectively.
Avery-Kelly and Ms. Lewis are both charged with conspiring to distribute controlled substances outside the usual course of professional medical practice and for no legitimate medical purpose from November 2013 to December 2015. The drugs allegedly supplied include oxycodone, hydromorphone, fentanyl, hydrocodone, phentermine, alprazolam, and promethazine with codeine. Avery-Kelly is also charged with two counts of maintaining a podiatry clinic – first in Lithonia and later in Sandy Springs – for the purpose of illegally distributing drugs. Finally, Avery-Kelly is charged with fifty-seven individual counts of illegal drug distribution for specific prescriptions written to three separate customers. Ms. Lewis is charged with aiding and abetting Avery-Kelly for eight of those prescriptions.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the DEA and HHS, with valuable assistance provided by the Georgia Drug & Narcotics Agency, Georgia State Patrol, and the Sandy Springs Police Department.
Assistant United States Attorneys Jennifer Whitfield and Michael Brown are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
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.
Sacramento Man Sentenced to over 7 Years in Prison for False Tax Return Claims and Identity Theft ChargesRead the Press Release
SACRAMENTO, Calif. — Lejohn Windom Sr., 53, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to seven years and 10 months in prison and ordered to pay $1.1 million in restitution to the IRS for mail fraud, conspiracy to submit false claims, and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2010 and 2013, Windom and his co‑conspirators filed 682 income tax returns, requesting nearly $2 million in fraudulent refunds. Of those returns, more than $1.1 million in fraudulent refunds were paid. Windom and others used stolen identities to request the tax refunds and then forged the names of the taxpayers to make the fraudulent refund checks payable to themselves.
“The false tax refund scheme perpetrated by Lejohn Windom and other co-conspirators victimized hundreds of taxpayers and stole over one million dollars from all American taxpayers,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “With the April 18 tax deadline approaching, it is important taxpayers know IRS-Criminal Investigation and our law enforcement partners are actively combating identity theft involving their personal information used to file false tax returns. The sentence imposed today by the court sets a clear example that tax fraud does not pay.”
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.
Co-defendants Tracy Hartway and Audrey Johnson have pleaded guilty and are scheduled for sentencing on January 12, 2017, and January 26, 2017 respectively. Co-defendant Lejohn Windon Jr. is scheduled for a status hearing on January 12, 2017. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Prior Felon from Carlsbad Sentenced to Federal Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Travis Hayslip, 34, of Carlsbad, N.M., was sentenced today in federal court in Las Cruces, N.M., to 30 months in prison followed by three years of supervised release for violating the federal firearms laws when he ignited the fire that destroyed the Quality Inn Hotel in Carlsbad on March 9, 2016. Hayslip also was ordered to pay $2.4 million in restitution to Choice Hotels for the damage he caused to the hotel.
Hayslip was arrested on March 31, 2016, by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) on a federal arson charge. According to the criminal complaint, on March 9, 2016, a fire was ignited and caused more than $2 million in damages to the Quality Inn, a hotel that was under construction at 4106 National Parks Highway in Carlsbad in Eddy County, N.M. The complaint alleged that Hayslip walked through a part of the hotel that was under construction and lit a piece of debris with a lighter. Hayslip subsequently was indicted on April 26, 2016, on the charge of maliciously damaging and destroying the hotel by means of a fire.
On June 29, 2016, Hayslip pled guilty to a felony information charging him with being a felon in possession of a firearm. In entering the guilty plea, Hayslip admitted that on March 16, 2016, in Eddy County, he possessed a firearm despite his prior felony conviction for theft in Arizona. Hayslip also acknowledged that he was responsible for the arson that occurred on March 9, 2016, at Choice Hotels in Carlsbad, and was therefore liable for $2.4 million in damages caused by the fire.
Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case which was investigated by Special Agents from the Las Cruces office and the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives and members of ATF’s National Response Team who worked jointly with the Carlsbad Fire Department, the Carlsbad Police Department, the Pecos Valley Drug Task Force, the Office of New Mexico Fire Marshal, the Office of the New Mexico State Fire Investigator, and Gilbert Police Department K9 Handler, to follow leads, investigate the fire scene, interview witnesses and suspects, and analyze available surveillance footage.
ATF’s National Response Team is composed of veteran special agents having post blast and fire origin-and-cause expertise; forensic chemists; explosives enforcement officers; fire protection engineers; accelerant detection canines; intelligence support; and audit support. The team also has technical, legal, and intelligence advisors and a fleet of fully equipped response vehicles strategically located throughout the United States to provide logistical support. The National Response Team, federal, state and local investigators work together to reconstruct the scene, identify the seat of the blast or origin of the fire, and determine the cause. In the case of bombings and arson fires, NRT members gather evidence to support criminal prosecutions.
Prior Felon from Artesia Pleads Guilty to Violating Federal Firearms and Drug Trafficking LawsRead the Press Release
ALBUQUERQUE – Ronald Troy Bettencourt, 55, of Artesia, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating the federal firearms and drug trafficking laws.
Bettencourt was arrested on Sept. 1, 2015, on an indictment charging him with being a felon in possession of firearms and ammunition on Jan. 23, 2014; distributing methamphetamine on Jan. 23, 2014; and being a felon in possession of explosives on March 18, 2014. According to the indictment, Bettencourt committed the crimes in Eddy County, N.M. At the time, Bettencourt was prohibited from possessing firearms, ammunition or explosives because he previously had been convicted of conspiracy to possess a controlled substance, embezzlement, and fraud.
During today’s proceedings, Bettencourt pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Bettencourt faces a statutory maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Maria Y. Armijo is prosecuting the case.
Prince George’s County Liquor Board Officials and Business Owners Charged in Federal Bribery ConspiracyRead the Press Release
Greenbelt, Maryland – Prince George’s County Liquor Board officials, David Dae Sok Son, age 40, of Bowie, Maryland, and Anuj Sud, age 39, of Hyattsville, Maryland, and Prince George’s County business owners, Young Jung Paig, age 62, of Beltsville, Maryland, and Shin Ja Lee, age 55, of Landover, Maryland, are charged by criminal complaints with a bribery conspiracy. The defendants allegedly conspired to engage in bribery in order to influence public officials in the performance of their official duties in Prince George’s County. Son, Paig, and Lee are also charged with a bribery conspiracy to influence the State of Maryland.
The charges were 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; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
“The defendants allegedly paid cash bribes to state and local officials in Prince George’s County in return for favorable action concerning liquor licenses,” said U.S. Attorney Rod J. Rosenstein. “Our government is not supposed to work that way.”
“Public corruption is a betrayal of trust and erodes the very core of the government's purpose to serve the people,” said Special Agent Gordon B. Johnson of the FBI's Baltimore Division.
Son currently is Director of the Prince George’s County Board of License Commissioners (Liquor Board). Son previously was a Commissioner on the Liquor Board from 2005 through 2014. During the 2015 Maryland legislative session, Son served as a liaison for the Prince George’s County Senate delegation. He returned to the Liquor Board later in 2015 as its Director.
Sud is a current Liquor Board Commissioner and has been a licensed attorney in Maryland since 2005, with offices in College Park.
Paig is the owner of Central Avenue Restaurant & Liquor Store and the resident agent of Weeping Willow, Inc.; and Lee is the owner of Palmer Liquor Store and the resident agent of Multi-Bil, Inc. Both stores are located in Prince George’s County, Maryland.
Son, Paig, and Lee
The affidavit filed in support of the criminal complaint alleges that Son solicited and facilitated bribes, from lobbyists and business owners, including from Paig and Lee. The bribes ranged from $1,000 to $5,000. From 2012 to 2013, Son facilitated three bribe payments to an elected official, for assistance in moving the source’s business to Prince George’s County, and to obtain County grants controlled by the elected official.
Beginning in 2015, Son solicited and facilitated bribe payments from lobbyists and business owners who were interested in the “Sunday Sales Bill,” which established up to 100 Sunday liquor sales permits in Prince George’s County. The bribes were intended to influence public officials in the performance of their official duties. For example, in 2015, Son had asked the elected official to assist in passing the Sunday Sales bill by talking to one of his colleagues about the bill; both subsequently voted in favor of the bill. On April 22, 2015, after the passage of the bill, Son arranged a lunch with the elected official, with Paig and Lee. During the lunch, Son told the elected official to meet Paig in the men’s bathroom, saying that Paig is “…going to hook you up.” In the men’s bathroom, Paig handed the elected official an envelope containing a total of $4,000 cash. On October 19, 2015, Son received a $4,000 bribe payment from a lobbyist for his assistance in ensuring that the lobbyist’s clients received Sunday Sales licenses.
Lee and Paig subsequently talked to Son about getting beneficial legislation introduced related to the Sunday Sales bill and indicated that they would be willing to pay $50,000 to make that happen. Son spoke with a second elected official who agreed to introduce legislation. On November 10, 2015, Son arranged for Paig and Lee to meet with the second elected official so they could make a “down payment.” After the meeting, law enforcement observed Paig and the second elected official get into the elected official’s car, while Lee and Son waited in the parking lot. Shortly after Paig got out of the car, the elected official drove directly to a bank in the same shopping center. Bank surveillance video shows the elected official pulling a stack of cash out of his right pocket and handing it to the teller, then doing the same from his left pocket. Bank records show that the elected official deposited a total of $4,000.
Sud
According to the affidavit filed in support of Sud’s criminal complaint, in September 2015, Sud solicited bribes from a lobbyist in exchange for Sud’s assistance with liquor board matters. At a subsequent meeting, Sud and the lobbyist discussed Sud voting favorably in two upcoming hearings concerning the lobbyist’s clients, in exchange for money. The lobbyist advised that the hearings would take place on December 2 and December 15, 2015. At each of the hearings, Sud took favorable action on behalf of the lobbyist’s client. Following each hearing, the lobbyist met with Sud and gave Sud $1,000 cash for Sud’s assistance. Similarly, on November 30, 2016, Sud received a $1,000 bribe payment in exchange for taking favorable action on behalf of the lobbyist’s client.
If convicted, Son, Sud, Paig and Lee all face a maximum sentence of five years in prison for the conspiracy, and a maximum of ten years in prison for bribery. Initial appearances are scheduled before U.S. Magistrate Judge Charles B. Day in U.S. District Court in Greenbelt, 6500 Cherrywood Lane, for Son and Sud beginning at 1:30 p.m., and for Lee and Paig beginning at 3:15 p.m.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI, IRS-CI, and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom and James A. Crowell IV, who are prosecuting the case.
Philadelphia Man Pleads to Fraud Conspiracy Involving Tax and Other Financial CrimesRead the Press Release
Louis Lappen, Acting United States Attorney for the Eastern District of Pennsylvania, announced today that Zaki M. Bey, 38, of Philadelphia pleaded guilty to one count of conspiracy to commit loan fraud and bank fraud, one count of conspiracy to defraud the Internal Revenue Service, and one count of conspiracy to commit wire fraud.
to court documents, Bey conspired with others to prepare fraudulent mortgage applications to obtain thirteen properties located in the Germantown section of Philadelphia and in New Jersey. Bey and the co-conspirators also furnished fraudulent payroll account documents, paystubs and financial statements to defraud financial institutions and lenders. In 2007 and 2008, Bey was responsible in securing more than $2 million in residential loans on properties purchased in the names of straw buyers. With the assistance of others, Bey would receive a payout for purported construction expenses ranging from $17,864.26 to $60,000 at the closing of each settlement. Bey was not completing any construction on these properties. In total, Bey obtained total settlement proceeds for construction costs of $435,074.26.
filed false tax returns for 2007, 2008, 2009 and 2010 claiming false withholding payments and false Forms 1099-OID (“Original Issue Discount”) income for his company, Natural Home Builders. was successful in receiving a false tax refund from the IRS in the amount of $148,296 for tax year 2009. In 2012, after assessed a deficiency, BEY mailed checks to the Internal Revenue Service from a closed bank account in an attempt to repay the fraudulent tax refund. also assisted another individual in filing a falsely amended tax return with the IRS that included false withholding taxes and Form 1099-OID income.
Beginning in 2010 to 2013, Bey and others submitted fraudulent auto loan applications and furnished fraudulent payroll documents, paystubs and financial statements to automobile dealerships located in Philadelphia and New Jersey. Bey was able to obtain at least 7 automobiles purchased through straw buyers.
maximum penalty under federal law is 45 years of imprisonment, 5 years of supervised release, $1,500,000 fine and a $300 special assessment fee.
case was investigated by IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorney James Pavlock.
Pain Clinic Owner Pleads Guilty to Conspiracy to Illegally Dispense Opiod MedicineRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KENNETH KNIGHT, age 67, of Jefferson, pled guilty today to conspiracy to dispense quantities of oxycodone and hydrocodone outside the scope of the medical practice.
According to court documents, the Drug Enforcement Administration conducted controlled purchases of opioid medicine from Axcess Medical Clinic, Inc., located in New Orleans.
KNIGHT faces a maximum sentence of 5 years imprisonment and a fine of up to $250,000. U.S. District Judge Nannette Jolivette Brown set sentencing for April 20, 2017. Additionally, a total of $39,999.44 was forfeited in this investigation.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration New Orleans Office and the Internal Revenue Service, Gulfport, Mississippi in investigating this matter. Assistant U.S. Attorneys John F. Murphy and Bill McSherry are in charge of the prosecution.
Owner of Florida Telecommunications Company Pleads Guilty, Second Defendant Sentenced to 52 Months in Prison for Involvement in International Cellphone Fraud SchemeRead the Press Release
The owner and operator of a Florida-based telecommunications company pleaded guilty today and a West Palm Beach, Florida, resident was sentenced yesterday to 52 months in prison in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Ramon Batista, 49, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments, and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud; and one count of aggravated identity theft. Sentencing for Batista will be scheduled for a later date before Senior U.S. District Judge Daniel T.K. Hurley in the Southern District of Florida. Judge Hurley sentenced Jose Santana, aka Octavio Perez, 53, yesterday to 52 months in prison on similar charges. Santana pleaded guilty on Oct. 26, 2016.
According to the plea agreements, Batista, Santana and their co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Batista, Santana and others also operated “call sites” in South Florida and elsewhere, where they would receive telecommunications identifying information associated with customers’ accounts from their co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that they controlled. Batista and other co-conspirators would then transmit thousands of international calls over the internet to the call sites, where Batista, Santana and others would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
Batista admitted that his role in the scheme included selling fraudulent telecommunications services through his company, Arymyx, Inc.; operating a “call site” with reprogrammed cellphones through which he routed international phone calls as part of the fraud scheme; and using and providing other co-conspirators with stolen or compromised telecommunications identifying information that was then employed to reprogram cellphones.
In addition, Batista admitted that he sent or received 1,132 “lines,” that is, combinations of telecommunications identifying numbers for specific devices or accounts associated with U.S. cellphone customers. Likewise, Santana admitted that, in just one 11-month period, he received more than 1,000 emails containing similar “lines.” Batista and Santana also admitted that that they were personally responsible for, respectively, more than $794,000 and $170,000 in loss resulting from the scheme.
Batista is the fourth defendant to plead guilty in the case and Santana is the second to be sentenced. Edwin Fana and Farintong Calderon previously pleaded guilty to similar charges in this matter. Fana was sentenced on Dec. 22, 2016, to 48 months in prison and Calderon is scheduled to be sentenced on Feb. 21, 2017.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
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.
Owner of Florida Telecommunications Company Pleads Guilty, Second Defendant Sentenced to 52 Months in Prison for Involvement in International Cellphone Fraud SchemeRead the Press Release
The owner and operator of a Florida-based telecommunications company pleaded guilty today and a West Palm Beach, Florida, resident was sentenced yesterday to 52 months in prison in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Ramon Batista, 49, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments, and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud; and one count of aggravated identity theft. Sentencing for Batista will be scheduled for a later date before Senior U.S. District Judge Daniel T.K. Hurley in the Southern District of Florida. Judge Hurley sentenced Jose Santana, aka Octavio Perez, 53, yesterday to 52 months in prison on similar charges. Santana pleaded guilty on Oct. 26, 2016.
According to the plea agreements, Batista, Santana and their co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Batista, Santana and others also operated “call sites” in South Florida and elsewhere, where they would receive telecommunications identifying information associated with customers’ accounts from their co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that they controlled. Batista and other co-conspirators would then transmit thousands of international calls over the internet to the call sites, where Batista, Santana and others would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
Batista admitted that his role in the scheme included selling fraudulent telecommunications services through his company, Arymyx, Inc.; operating a “call site” with reprogrammed cellphones through which he routed international phone calls as part of the fraud scheme; and using and providing other co-conspirators with stolen or compromised telecommunications identifying information that was then employed to reprogram cellphones.
In addition, Batista admitted that he sent or received 1,132 “lines,” that is, combinations of telecommunications identifying numbers for specific devices or accounts associated with U.S. cellphone customers. Likewise, Santana admitted that, in just one 11-month period, he received more than 1,000 emails containing similar “lines.” Batista and Santana also admitted that that they were personally responsible for, respectively, more than $794,000 and $170,000 in loss resulting from the scheme.
Batista is the fourth defendant to plead guilty in the case and Santana is the second to be sentenced. Edwin Fana and Farintong Calderon previously pleaded guilty to similar charges in this matter. Fana was sentenced on Dec. 22, 2016, to 48 months in prison and Calderon is scheduled to be sentenced on Feb. 21, 2017.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Orlando Man Charged with Investment FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Leone Alfano La Cava (59, Orlando) with 17 counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in federal prison on each count.
According to the indictment, La Cava orchestrated an international real estate investment scheme that defrauded at least 40 investors out of more than $4 million. He solicited individuals in Italy to purchase real estate in Orange County that he claimed would generate guaranteed rental income. He used falsified deeds and loan documents to convince investors that they were purchasing property owned by La Cava or one of his entities, Orlando Trust Investment Properties, Inc., or Golden Investment, Inc. In fact, those properties did not exist, were never owned by La Cava or one of his entities, or had already been sold to another investor. La Cava used portions of the funds sent by investors for his own personal use.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Roger Handberg and Nathan W. Hill.
Oklahoma City Mother and Son Plead Guilty to Defrauding Medicaid Out of Nearly $770,000Read the Press Release
Oklahoma City, Oklahoma – DEBORAH A. GRAY, 60, and KEITH B. GRAY, II, 26, both of Oklahoma City, each pled guilty yesterday to three counts of health care fraud in connection with submitting false claims to Medicaid for behavioral health counseling services, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma, and Scott Pruitt, Attorney General for the State of Oklahoma.
On July 6, 2016, Deborah Gray and Keith Gray were indicted on 151 counts of health care fraud. The Indictment alleged that from October 2011 through May 2014, Deborah Gray owned and operated a business called DAG Counseling Services, PLLC. DAG Counseling held itself out as providing behavioral health counseling services to Medicaid-eligible children. It is alleged that Keith Gray was employed by DAG Counseling. It was alleged that the Grays devised and executed three schemes to defraud Medicaid through DAG Counseling. First, it is alleged that the Grays submitted or caused to be submitted to Medicaid claims for "targeted case management services" for periods of time when the children were actually being transported between home or school and the DAG Counseling offices, in violation of Medicaid regulations. Second, it was alleged that the Grays submitted or caused to be submitted to Medicaid claims for one-on-one "psychosocial rehabilitation services" that exceeded the billing maximum of 90 minutes per child per day, in violation of Medicaid regulations. Finally, it was alleged that the Grays submitted or caused to be submitted to Medicaid claims for one-on-one "psychosocial rehabilitation services" that (a) were not actually provided, or (b) were actually provided in groups of two or more children, or (c) were provided for less time than was billed to Medicaid.
Deborah Gray and Keith Gray each admitted to one count of executing each of the three schemes. As part of their plea, the Grays agreed to pay restitution to Medicaid in the amount of $769,578.38.
At sentencing, the Grays face up to 10 years in prison, three years of supervised release, and a $250,000 fine on each count. A sentencing date will be set by the court in approximately 90 days. Reference is made to the Indictment and other public filings for further information.
Medicaid is funded jointly by the federal government and the State of Oklahoma, and administered by the Oklahoma Health Care Authority. This case is the result of a cooperative federal and state investigation by the Federal Bureau of Investigation and the Oklahoma Attorney General’s Office Medicaid Fraud Control Unit. It is being prosecuted by Assistant U.S. Attorney Amanda Maxfield Green and Oklahoma Assistant Attorney General Lory Dewey.
Mexican National Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Massiel Segoviano-Fierro, 25, a Mexican national illegally residing in the United States, was sentenced today in federal court in Albuquerque, N.M., to 50 months in prison for his methamphetamine trafficking conviction. Segoviano-Fierro will be deported after he completes his prison sentence.
Segoviano-Fierro and his co-defendant Juan Carlos Nieblas-Ruelas, 28, also a Mexican national illegally residing in the United States, were arrested in Nov. 2015, and were charged by criminal complaint with conspiracy and possession of methamphetamine with intent to distribute on Nov. 23, 2015, in Bernalillo Country N.M. The two men were arrested after they attempted to sell approximately ten pounds of methamphetamine to an undercover law enforcement agent.
On Feb. 22, 2016, Segoviano-Fierro pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Segoviano-Fierro admitted that on Nov. 23, 2015, in Bernalillo County, he attempted to sell methamphetamine to an individual who unbeknownst to him was an undercover law enforcement agent. Segoviano-Fierro further admitted that he collaborated with Nieblas-Ruelas to obtain approximately ten pounds of methamphetamine to sell and distribute in Albuquerque.
On Jan. 22, 2016, Nieblas-Ruelas pled guilty to a similar felony information and admitted that on Nov. 23, 2015, he provided methamphetamine to Segoviano-Fierro knowing that Segoviano-Fierro intended to sell it to another person. Nieblas-Ruelas was sentenced on Nov. 1, 2016, to 72 months in prison and will be deported following his prison sentence.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the New Mexico State Police and was prosecuted by Assistant U.S. Attorney David M. Walsh.
Mexican National Sentenced to Federal Prison Term for Trafficking Methamphetamine on Navajo ReservationRead the Press Release
ALBUQUERQUE – Luis Rangel Arce, 45, a Mexican national unlawfully in the United States, was sentenced today in federal court in Albuquerque, N.M., to 87 months in prison for his methamphetamine trafficking conviction. Luis Rangel Arce will be deported after he completes his prison sentence.
Luis Rangel Arce and his co-defendants Miguel Rangel Arce, 36, and Rogelio Santiago Quiroa-Valdez also Mexican nationals, were amongst eight San Juan County residents charged with federal narcotics trafficking offenses as the result of a multi-agency investigation led by Homeland Security Investigations (HSI) and the HIDTA Region II Narcotics Task Force into methamphetamine trafficking on the Navajo Indian Reservation in northwestern New Mexico. The three men were arrested in May 2016 during a law enforcement operation that included the execution of two search warrants at residences in Shiprock and Kirtland, N.M.
The investigation leading to the federal charges was initiated in response to an increase in methamphetamine trafficking on the Navajo Indian Reservation in the Shiprock area, and was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. This Department of Justice program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. investigation identified eight defendants, who were charged in five indictments, through a series of methamphetamine purchases by undercover law enforcement officers. Law enforcement authorities seized more than two and a half pounds of methamphetamine, ten firearms, approximately $1,600 in cash, and a vehicle during the investigation.
Luis Rangel Arce, Miguel Rangel Arce, and Quiroa-Valdez were charged with methamphetamine trafficking charges in a seven-count indictment filed in April 2016. The indictment charged the three men with participating in a methamphetamine trafficking conspiracy between Nov. 2015 and March 2016, and with distributing methamphetamine on six occasions between Jan. 2016 and March 2016. According to the indictment, the defendants committed the crimes in San Juan County, N.M.
Luis Rangel Arce pled guilty on Aug. 16, 2016, to distributing methamphetamine on Jan. 11 and 14, 2016. In entering the guilty plea, Luis Rangel Arce admitted distributing 63.17 grams of methamphetamine to an undercover officer on Jan. 11, 2016, and distributing 55.3 grams of methamphetamine to an undercover officer on Jan. 14, 2016.
On Aug. 30, 2016, Miguel Rangel Arce pled guilty to participating in a methamphetamine trafficking conspiracy, and admitted that from Nov. 24, 2015 through March 17, 2016, he conspired to distribute between 500 grams and 1.5 kilograms of methamphetamine to an undercover officer. At sentencing, Miguel Rangel Arce faces a statutory minimum penalty of ten years and a maximum of life in prison.
Quiroa-Valdez also pled guilty on Aug. 30, 2016, and admitted that on Feb. 24, 2016, he distributed 85.5 grams of methamphetamine to an undercover officer. At sentencing Quiroa-Valdez faces a statutory minimum penalty of five years and a maximum of 40 years in prison.
Miguel Rangel Arce and Quiroa-Valdez remain in custody pending sentencing hearings, which have yet to be scheduled. They will be deported after completing their prison sentences.
The other five defendants were charged with methamphetamine trafficking charges in four other indictments. One has pled guilty and was sentenced on Sept. 27, 2016. Three have entered guilty pleas and are awaiting sentencing. The other two defendants have entered not guilty pleas and are awaiting trial. Charges in indictments are merely accusations and defendants are presumed innocent unless convicted in a court of law.
These cases were investigated by HSI’s Albuquerque office and the HIDTA Region II Narcotics Task Force with assistance from the Farmington office of the FBI, U.S. Marshals Service, and BIA’s Division of Drug Enforcement, Shiprock office of the Navajo Nation Division of Public Safety, New Mexico State Police, San Juan County Sheriff’s Office, Farmington Police Department, and New Mexico National Guard. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the cases.
The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department, Aztec Police Department and HSI Albuquerque, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Mexican National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARIO FUENTES-VELASQUEZ, age 29, a native of Mexico, pled guilty today to a one-count Indictment charging him with illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, FUENTES-VELASQUEZ was previously removed from the United States on August 29, 2013. FUENTES-VELASQUEZ was later found in the Eastern District of Louisiana on September 7, 2016, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
FUENTES-VELASQUEZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000. U.S. District Court Eldon E. Fallon set sentencing for March 16, 2017.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Lynn Tax Preparer Sentenced for Tax and Identity FraudRead the Press Release
BOSTON – A Lynn tax preparer was sentenced today in U.S. District Court in Boston in connection with a scheme to file fraudulent tax returns and pocket the excess refunds she fabricated.
Claudia Carredano, 46, was sentenced by U.S. District Court Judge George A. O’Toole, Jr. to 30 months in prison, three years of supervised release and ordered to pay restitution of $320,760 and forfeiture. In March 2016, she pleaded guilty to one count of wire fraud and one count of identity theft.
Carredano co-owned Maya Multi Services, a tax return preparation business operating on the North Shore. From 2008 to 2011, Carredano devised and executed a scheme to defraud the Internal Revenue Service by filing false tax returns on behalf of her clients. To do this, Carredano filed dozens of false tax returns for her clients that included fraudulent dependents—real people who were not the dependents of her clients—intended to increase the tax refund amount, generally without her clients’ knowledge. Carredano then directed the inflated portion of the refunds to be deposited into her bank account. In order to conceal the scheme, Carredano gave her clients versions of their tax returns that did not reflect the fraudulent dependents and sought smaller refunds than the returns she actually filed with the IRS.
United States Attorney Carmen M. Ortiz and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was investigated with the cooperation of the Massachusetts Department of Revenue. Assistant U.S. Attorney Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit prosecuted the case.
Lebanon Car Dealer Sentenced for Odometer Rollback Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lebanon, Mo., automobile dealer was sentenced in federal court today for a mail fraud scheme in which he sold dozens of vehicles with fraudulent titles that greatly underreported the actual mileage of the vehicles.
Kenneth W. Smith, 62, of Lebanon, was sentenced by U.S. District Judge M. Douglas Harpool to 18 months in federal prison without parole. The court also ordered Smith to pay a $50,000 fine.
Smith, who operated Cars Unlimited in Lebanon, pleaded guilty to mail fraud on June 21, 2016.
When Cars Unlimited bought used cars at auction, the titles would show the correct mileage. Smith admitted that, instead of filing those titles with the state of Missouri, he requested replacement titles that showed a lower mileage. Smith could then sell the vehicle at a higher price. When investigators executed a search warrant at the business, they found instrument clusters used to replace odometers in vehicles.
Smith obtained fraudulent replacement titles for dozens of vehicles that were sold by Cars Unlimited between February 2010 and Nov. 7, 2011. Smith (operating through Cars Unlimited) applied for and received 54 replacement titles from the state, each of which underreported the vehicle’s actual mileage. Smith resold these 54 vehicles at auto auctions using the fraudulent replacement titles. These 54 vehicles were sold for an aggregate total of approximately $346,450.
When Smith purchased vehicles (through Cars Unlimited) at auto auctions, the vehicle titles he received showed each vehicle's actual mileage. After purchasing a vehicle, Smith submitted an "Application for Missouri Title and License" seeking a replacement title for the vehicle. Although he sought a replacement title, he in fact possessed the original title for the vehicle. In each of those instances, Smith forged the signatures of the previous owner of the vehicle. The state of Missouri prepared a replacement title that was mailed to Smith at Cars Unlimited.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Missouri Department of Revenue, Compliance and Investigation Bureau.
Las Vegas Oxy Ring Leader Sentenced to 72 Months in PrisonRead the Press Release
COLUMBUS, Ohio – Sukita M Williams, 44, of Las Vegas and Hilliard, Ohio, was sentenced in U.S. District Court to 72 months in prison for her role in an Oxycodone ring between Las Vegas and Columbus.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy Plancon, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Troy N. Stemen, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS) and Ohio Attorney General Mike DeWine announced the sentence handed down today by U.S. District Judge Michael H. Watson.
Williams is one of six defendants to be sentenced in this case on charges of conspiracy to possess with intent to distribute Oxycodone and/or conspiracy to commit money laundering. They include:
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Danny R. Williams, 30, of Las Vegas, who was sentenced in July to 90 months in prison;
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Dontonyo Courtney, 22, of Columbus, who was sentenced in August to 33 months in prison;
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Alfred David James, Sr., 36, of Columbus, who was sentenced in September to 30 months in prison;
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Joquline D. Harris, 29, of Columbus, who was sentenced in September to five years of probation; and
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Rashod D. Todd, 29, of Columbus, who was sentenced in October to 70 months in prison.
Two defendants have yet to be sentenced in this case. Tiauna Castro, 28, of Las Vegas, pleaded guilty in September to conspiracy to commit money laundering and is scheduled to be sentenced on July 12, 2017.
Larissa Harris-Patterson, 46, of Las Vegas, pleaded guilty in November to charges of conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering. Her sentencing is yet to be scheduled.
According to court documents, between 2012 and November 2015, Sukita Williams, Danny Williams and Rashod Todd conspired to import, possess and distribute Oxycodone from Las Vegas. Sukita and Danny Williams each personally went to physicians to obtain fraudulent prescriptions for Oxycodone and arranged for other members of the conspiracy to do the same. The trio also used middlemen to obtain Oxycodone. Once they obtained bulk amounts of Oxycodone, the pills were transported to Columbus, Ohio via the mail or on commercial airlines to be sold on the street to drug users.
The three attempted to conceal their illicit proceeds by depositing money into others’ bank accounts. In addition, these cash deposits funded the purchase of airline tickets that enabled couriers to transport Oxycodone to Columbus and to transport bulk amounts of cash back to them in Las Vegas.
Joquline Harris conducted financial transactions to funnel the proceeds of the illegal distribution of Oxycodone through two separate Ohio bank accounts opened by Sukita Williams, to bank accounts owned by Sukita Williams in Las Vegas. Harris further used the money in these accounts and other illicit drug proceeds from Sukita Williams to purchase airline tickets for members of the drug ring and make payments on a vehicle used in the operation.
Tiauna Castro deposited proceeds from the illegal sale of Oxycodone to a bank account in Columbus that was held in the name of a front business. The account was actually controlled by someone Castro knew was trafficking illegally obtained pills from Las Vegas to Columbus.
Harris-Patterson went to physicians to obtain fraudulent prescriptions for Oxycodone and arranged for other members of the conspiracy to do the same. She also used middlemen to obtain Oxycodone. Once she obtained bulk amounts of the drug, the pills were transported to Columbus, Ohio via the mail or on commercial airlines to be sold on the street to drug users.
“This is an important victory for the citizens of Columbus,” said Troy N. Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “These individuals not only fueled the drug problem in Central Ohio, but they supported addiction in several parts of the country. The harm inflicted by these drugs is matched only by the profit potential for those who sell them.”
U.S. Attorney Glassman commended the cooperative investigation by the DEA, IRS, USPIS and Ohio Bureau of Criminal Investigation (BCI), as well as Deputy Criminal Chief Michael J. Hunter, who is representing the United States in these cases.
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Las Cruces Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Ernesto Marquez Muniz, 31, of Las Cruces, N.M., pled guilty today in federal court to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Muniz was arrested on Sept. 15, 2016, on a criminal complaint alleging methamphetamine trafficking and firearms charges. According to the complaint, on May 24, 2016, Muniz sold approximately seven grams of methamphetamine and a handgun and ammunition to an undercover law enforcement agent in Dona Ana County, N.M. At the time, Muniz was prohibited from possessing firearms or ammunition because of his prior felony conviction for distributing cocaine in the Western District of Texas in 2010.
During today’s proceedings, Muniz pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Muniz admitted that on May 24, 2016, he sold methamphetamine and a gun to undercover law enforcement agents in the parking lot of a motel in Las Cruces.
At sentencing, Muniz faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and is being prosecuted by Assistant U.S. Attorney Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office.
KC Restaurant Owner Sentenced for $566,000 Tax SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Kansas City, Mo., restaurant was sentenced in federal court today for filing a false tax return as part of a scheme to avoid paying more than $566,000 in corporate taxes.
Roger Geisler, 68, of Lenexa, Kan., was sentenced by U.S. District Judge Dean Whipple to two years in federal prison without parole. The court also ordered Geisler to pay $566,128 in restitution to the IRS.
Geisler has owned and operated two restaurants in Kansas City, Mo. – Domo Sushi bar and Grill in the Brookside area and Matsu Japanese Restaurant (from 1980 to 2010) in the Westport area.
On April 7, 2016, Geisler pleaded guilty to filing a false tax return. Geisler admitted that, for tax years 2007, 2008 and 2009, he signed and submitted corporate returns for his company, Lee’s Pacific Foods, that underreported his restaurants’ gross receipts. The total unreported income for those tax years totaled $2,297,013. As a result of Geisler’s omissions, the amount of tax due and owing totaled $402,860.
In addition to the 2007 to 2009 income taxes, Geisler admitted that he failed to report and pay over employment taxes from 2007 to 2010. A conservative calculation of employment tax due totals $163,268, bringing the total loss from the overall scheme to $566,128.
Geisler also admitted that he did not file individual tax returns for 2007 through 2010.
After Geisler was contacted by the IRS, his accountant asked him how he thought he would get away with not reporting business income and payroll taxes. Geisler responded “I thought I would be dead before they caught on.”
Geisler spent at least $156,988 in business funds on personal expenses, including a home in Lenexa and a 2004 Lexus SUV. Geisler admitted he has a large gambling problem and gambled extensively at area casinos. For example, he gambled $159,706 in 2007 (at Argosy and Isle of Capri.) In 2010, Geisler gambled $290,175 at the 7th Street Casino.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation.
Iowa Home Health Company and Its President Agree to Pay $1,000,000 to Resolve Allegations They Sought Reimbursement for Inappropriate CostsRead the Press Release
Ultimate Nursing Services of Iowa, Inc., and its president, Steven Tucker Anderson, have agreed to pay $1,000,000 to settle allegations they violated the False Claims Act.
The allegations relate to cost reports submitted by Ultimate Nursing for the period beginning January 1, 2011, and ending June 30, 2013. During this period, the company received payment for services to Medicaid beneficiaries in part through the submission of cost reports reflecting the costs associated with the provision of services and patient care. The government alleged that Ultimate Nursing’s cost reports for this period improperly resulted in payment for non-reimbursable travel and entertainment expenses and for non-reimbursable costs associated with services provided to Ultimate Nursing by other entities owned by Anderson or a family member.
“We will continue to use every resource available to ensure that all Iowa health care providers play by the same rules and that government money intended to pay for health care for Medicaid or Medicare beneficiaries is spent only for its intended purpose,” said United States Attorney Kevin W. Techau. “We also recognize the cooperation we received from the company and its president from the onset of this investigation and appreciate their willingness to work with us to address the issues raised by the investigation.”
The investigation was conducted in conjunction with the Health and Human Services Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
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