Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 3 November 2016
Election Day Hotlines to Be Operated by the United States Attorney's Office and the New Hampshire Attorney General's OfficeRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice and New Hampshire Attorney General Joseph Foster announced today that both the United States Attorney’s Office and the New Hampshire Attorney General’s Office will staff voting inquiry and complaint lines at their respective offices throughout the day and evening on Election Day, November 8, 2016.
The New Hampshire Attorney General’s toll free election line phone number is:
1-866-868-3703
(1-866-VOTER03)This phone line will be staffed from 7 am to 8 pm on Election Day. Inquiries and complaints may also be submitted via e-mail at [email protected]. Information regarding voting rights may be obtained by visiting the New Hampshire Attorney General's Office website at http://doj.nh.gov/site-map/voters.htm.
The United States Attorney’s election line phone number is:
(603) 230-2503
This phone line will also be staffed from 7 am to 8 pm on Election Day. Inquiries and complaints may also be submitted through the United States Attorney’s Web site at www.usdoj.gov/usao/nh by clicking on the “e-mail us” link. A Federal Election Fraud Fact Sheet that explains what triggers federal criminal jurisdiction in connection with elections and voting rights can also be found on the United States Attorney’s Web site, www.justice.gov/usao-nh.
The state and federal election lines are available to all individuals who may have questions regarding their voting rights or who want to file complaints with the New Hampshire Attorney General or the United States Attorney regarding their right to vote or any other election law violation.
For further information, please contact Assistant Attorney General Brian W. Buonamano at the New Hampshire Attorney General’s office at (603) 271-3650, or Assistant United States Attorney Mark S. Zuckerman at (603) 230-2579.
###
Eagle Pass Drug Trafficker Sentenced to Life in Federal PrisonRead the Press Release
In Del Rio, Luis Felipe Rodriguez (aka “Vaquero”), a 40-year-old former Eagle Pass resident and associate of the Los Zetas Drug Trafficking Organization, was sentenced yesterday afternoon to mandatory life in federal prison for his leadership role in cocaine trafficking and money laundering conspiracies announced United States Attorney Richard L. Durbin, Jr.; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; and, Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
On September 3, 2015, a jury convicted Rodriguez of one count of conspiracy to possess cocaine with intent to distribute; one count of bulk cash smuggling; and, one count of conspiracy to commit money laundering.
During the trial, evidence was presented that Rodriguez and other co-conspirators transported from Piedras Negras, Mexico, into the United States over 25 kilograms of cocaine concealed in hidden compartments inside vehicles. Once the vehicles crossed through immigration checkpoints the cocaine was delivered to San Antonio, Houston and Waco, Texas. At that point, drug proceeds, totaling approximately $1.1 million dollars were loaded into the vehicle and Rodriguez and his co-conspirators transported the money back to Mexico.
Evidence was also presented at trial that revealed Rodriguez had two prior WDTX felony criminal convictions namely, in 2004 for possession with intent to distribute marijuana in Maverick County; and, in 2005 (while on bond for the previously mentioned offense) for conspiracy to possess with intent to distribute 100 kilograms or more of marijuana in Maverick County.
Rodriguez was arrested in Eagle Pass on January 16, 2014. He has remained in federal custody ever since.
This joint investigation was conducted by the DEA and HSI together with the U.S. Border Patrol, Texas Department of Public Safety-Criminal Investigations Division and the Eagle Pass Police Department.
Dallas Man Who Committed the Armed Robberies of Two Convenience Stores in One Day is Sentenced to 384 Months in Federal Prison on Felony OffensesRead the Press Release
DALLAS — A Dallas man, Marcus Fulbright, 25, of Dallas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to serve a total of 384 months in federal prison, following his guilty plea to felony offenses stemming from his armed robbery of two 7-Eleven stores in the Dallas area in 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Fulbright pleaded guilty in April 2016 to two counts of using, carrying, or brandishing a firearm during and in relation to a crime of violence.
According to documents filed in the case, on October 9, 2013, Fulbright entered the 7-Eleven located at 757 E. Beltline Road in DeSoto, Texas, at approximately 4:15 a.m. with the express intent to rob it. Fulbright brandished a semi-automatic handgun, pointed it at the store clerk, and demanded money. Fulbright took money from the cash register and fled.
That same morning, just a few minutes later, at approximately 4:30 a.m., Fulbright entered the 7-Eleven located at 640 Pleasant Run in Lancaster, Texas, with the specific intent to rob it. Fulbright brandished a semi-automatic handgun, pointed it at the store clerk and demanded money from the cash register. As the clerk struggled to open the cash register, another individual in the store rushed at Fulbright, and Fulbright then pointed his handgun at this individual and discharged a single shot at him.
The case was investigated by the Federal Bureau of Investigation and the Dallas, DeSoto and Lancaster Police Departments.
Assistant U.S. Attorney Andrew Wirmani was in charge of the prosecution.
# # #
Dallas Drug Traffickers Receive Lengthy Federal Prison SentencesRead the Press Release
DALLAS — Santiago Veliz, 29, of Dallas, was sentenced today by U.S. District Judge Jane J. Boyle to 140 months in federal prison following his guilty plea in May 2016 to a felony Information charging one count of conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Veliz’s co-conspirator, Iran Zavala, also 29 and from Dallas, was sentenced by Judge Boyle in August 2016 to 235 months in federal prison after he pleaded guilty in April 2016 to the same offense.
According to documents filed in the case, beginning in approximately June 2015, Veliz, Zavala and others agreed to distribute methamphetamine. On approximately June 29, 2015, Zavala negotiated the sale of two kilograms of methamphetamine for $32,000 to a person he later learned was an undercover law enforcement officer.
A few days later, on July 2, 2015, Veliz and Zavala traveled to a gas station on N. Beltline Road in Grand Prairie, Texas, to distribute more than 50 grams of methamphetamine to a person Veliz believed to be one of Zavala’s customers. They had both the methamphetamine and a handgun belonging to Zavala in their pickup truck. However, prior to the drug transaction being completed, law enforcement in marked patrol cars attempted to pull over their vehicle. Rather than stop, Zavala fled in the truck at a high rate of speed, and during the chase, Zavala threw the methamphetamine out of the driver’s side window. The firearm was thrown out of the passenger side window.
At Zavala’s sentencing hearing, testimony was presented that Zavala intentionally drove his pickup truck at a high rate of speed toward an officer with the Grand Prairie Police Department who was attempting to lay a spike strip in the road to deflate the tires on Zavala’s fleeing vehicle. Zavala is charged in a pending Dallas County case with Aggravated Assault of a Public Servant.
The pursuit ended when Zavala drove his truck into Mountain Creek Lake where it collided with a sailboat near the boat ramp. Both Zavala and Veliz were arrested. The firearm, a 9-milimeter semi-automatic pistol, was recovered and ordered forfeited to the government.
The Drug Enforcement Administration and the Grand Prairie Police Department investigated the case. Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert was in charge of the prosecution.
# # #
Clinton Township Trustee Indicted on Eight Counts of BriberyRead the Press Release
An elected Trustee of Clinton Township was indicted by a grand jury yesterday on eight counts of bribery in exchange for corruptly influencing his decisions on township business, U.S. Attorney Barbara McQuade announced.
McQuade was joined in the announcement by FBI Special Agent in Charge David P. Gelios and Manny J. Muriel, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Detroit Field Office.
Dean Reynolds, 49, of Clinton Township, was charged with engaging in a pattern of corrupt activity, including demanding and accepting money and other things of value, in exchange for official acts as a trustee. The indictment of Reynolds is part of an ongoing and long-running investigation into systemic corruption in multiple municipalities in southeast Michigan, primarily Macomb County.
The indictment charges that Reynolds accepted bribes from representatives of two companies having business with Clinton Township, and that Reynolds accepted bribes from an undercover FBI agent. In connection with one company, Reynolds accepted bribes between 2009 and 2013 amounting to $9,000 in cash and a $7,000 check. Between 2012 and 2015, Reynolds demanded and accepted bribes amounting to over $50,000 in cash, along with other things of value, from a second company. In 2016, Reynolds accepted a total of $7,000 in cash bribes from an undercover FBI agent on three separate occasions. Reynolds also accepted an additional $10,000 in cash bribes from a representative of one of the companies after that individual began cooperating with the FBI.
This investigation is being conducted by the FBI Detroit Area Corruption Task Force, a multiagency task force led by the FBI Detroit Division and comprised of the Internal Revenue Service – Criminal Investigation Division, Michigan State Police, Michigan Attorney General’s Office, and several other local and federal law enforcement agencies. It is being prosecuted by Assistant United States Attorneys R. Michael Bullotta and David A. Gardey.
Upon conviction for a violation of Title 18, United States Code, Section 666, federal program bribery, Reynolds faces a maximum of ten years in prison and a fine of up to $250,000 on each of the eight counts of the indictment.
An indictment is only a charge and is not evidence of guilt.
The FBI requests that anyone having information regarding public officials accepting bribes is encouraged to contact the Detroit Division of the FBI at 313-965-2222.
Clearwater Man Sentenced for Possessing over 50,000 Images of Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. today sentenced Jonathan William Lauman (27, Clearwater) to eight years in federal prison for possessing and transporting child pornography. As part of his sentence, he was ordered to serve a 15-year term of supervision and register as a sex offender following his release from prison. The Court also ordered him to pay restitution to several victims. Lauman pleaded guilty in February 2016.
According to court documents, Lauman downloaded and possessed more than 1,500 videos and over 50,000 images of young children, including infants, engaged in sexual acts with adults. The videos depicted, in part, sadistic and masochistic sexual abuse of children and infants. Lauman hoarded and transported these videos and images on his personal laptop.
“Downloading sexually explicit images and videos of young children creates lifelong scars for victims and enables perpetrators around the globe to continuously exploit those same innocent youths,” said Susan L. McCormick, special agent in charge of Homeland Security Investigations (“HSI”) Tampa. “HSI special agents will continue to work with our law enforcement partners to target criminals who prey on the most vulnerable members of society.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Kristen A. Fiore.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (“CEOS”), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Chief Executive Officer and Manager of Fraudulent Business Opportunity Seller Sentenced to PrisonRead the Press Release
The CEO and a senior manager of a Long Island, New York, company that fraudulently sold vending machine business opportunities were sentenced to prison, the Justice Department announced today. Both defendants worked at Multivend LLC, dba Vendstar, based in Deer Park, New York. Before closing in July 2010, Vendstar made approximately $10 to $12 million in sales per year.
The sentences were imposed Thursday by U.S. District Court Judge Joan M. Azrack of the Eastern District of New York. The two defendants sentenced on Thursday were among six defendants who were found guilty after a six-week jury trial before Judge Azrack last fall.
- Edward Morris “Ned” Weaver, 43, of Perrysburg, Ohio, was sentenced to serve 60 months in prison. Weaver was the president and chief executive officer of Vendstar from 2004 to 2010. Weaver was convicted of conspiracy, mail fraud, wire fraud, and making a false statement to a federal law enforcement agent.
- Lawrence A. Kaplan, 58, of Brooklyn, New York, was sentenced to serve 54 months in prison. Kaplan was Vendstar’s technical support manager, whose primary job was to suppress the large number of complaints Vendstar received. Kaplan was convicted of conspiracy, mail fraud, wire fraud and making a false statement.
“Ned Weaver, Lawrence Kaplan and their co-conspirators stole millions of dollars from people who had the misfortune to trust them and believe their lies,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to prosecute fraud and hold accountable those who scam everyday Americans out of their hard-earned money.”
“The U.S. Postal Inspection Service will continue to work with our partners to ensure that our citizens are protected from these types of predatory schemes,” said Inspector in Charge Antonio J. Gomez of U.S. Postal Inspection Service, Miami Division, which led the investigation. “It is an essential part of our core mission as Postal Inspectors that the U.S. mail isn’t used in furtherance of these fraudulent schemes that often target hard-working individuals.”
Vendstar sold business opportunities for plastic bulk vending machines that, for 25 cents, dispensed loose candy and nuts. Vendstar advertised nationwide in newspapers and on the Internet. Vendstar promised to provide everything its customers would need to be successful, including the machines, candy, assistance in finding profitable locations and ongoing customer support. Vendstar sales representatives – with Weaver’s and Kaplan’s knowledge and approval – misrepresented the business opportunity’s likely profits, the amount of money that Vendstar’s prior customers were earning, how quickly customers were likely to recover their investment, the quality of locations that were available for the vending machines and the level of location assistance that customers would receive from locating companies recommended by Vendstar. Vendstar referred customers to locating companies that did not find profitable locations and regularly changed their names to stay ahead of constant complaints. Vendstar sales representatives also falsely claimed to operate their own profitable vending routes, according to evidence introduced during the trial.
Twenty-two individuals have been charged with fraud in connection with Vendstar, including Vendstar managers, Vendstar sales representatives and the operators of locating companies recommended by Vendstar. In addition to the two defendants who were sentenced on Thursday, three defendants were sentenced last year and 16 other defendants are awaiting sentencing.
Principal Deputy Assistant Attorney General Mizer commended the U.S. Postal Inspection Service for its thorough investigation. The case was prosecuted by Senior Litigation Counsel Patrick Jasperse and Alan Phelps of the Civil Division’s Consumer Protection Branch.
The Consumer Protection Branch (CPB) handles criminal as well as civil cases. During the last 10 years, the CPB has convicted approximately 150 individuals of fraudulently selling business opportunities.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
CPA Pleads Guilty to Bank Fraud for Providing Inflated Tax Retruns to Client to Use to Defraud LendersRead the Press Release
Barry Horrow, 68, of Glenn Mills, pled guilty today to 4 counts of bank fraud, announced United States Attorney Zane David Memeger.
As part of his guilty plea, Horrow, a Certified Public Accountant who owned and operated his own accounting company, Horrow and Associates, which operated in both Delaware and Chester Counties, admitted that he committed bank fraud by helping one of his clients, George Barnard of Newtown Square (who owned Capital Financial Mortgage Corporation ("CFMC") and who was charged previously in an indictment with various offenses stemming from a $13 million fraud scheme who owned) to defraud lenders into issuing mortgages for 3 multi-million dollar New Jersey Shore beach mansions and a yacht based on false tax returns, false audit reports, and other false information. Horrow admitted that he repeatedly provided false tax returns for Barnard to submit to lenders on which Horrow inflated Barnard’s income by hundreds of thousands of dollars, when Horrow knew that the lenders were going to be relying upon the inflated income figures in approving Barnard’s loan requests.
Horrow faces a maximum sentence of 120 years’ imprisonment, a five-year period of supervised release, a $4,000,000 fine, a $400 special assessment, and a likely advisory sentencing guideline range of 41 – 51 months’ imprisonment. Horrow also agreed, as part of his plea, to make restitution of over $2,965,000.
The case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development, Office of Inspector General, and the Internal Revenue Service, Criminal Investigative Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Brunswick County Man Sentenced for Distribution of Crack, Heroin, & FirearmsRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday, United States District Judge Louise W. Flanagan sentenced JARVIS ALONZO DAVIS, 37, from Longwood, N.C., to 165 months in prison and 3 years of supervised release for distribution of a quantity of cocaine base (crack) and possession of a firearm by a convicted felon. DAVIS pled guilty to the charges on May 11, 2016.
In June 2015, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and detectives with the Brunswick County
Sheriff’s Office received information that DAVIS was involved in the distribution of narcotics. Between June 2015 and October 2015, agents made 11 controlled buys consisting of crack, heroin and 3 firearms.
DAVIS was arrested by agents on October 20, 2015, and subsequently provided agents with an unprotected statement. DAVIS admitted that he was on supervision with the United States Probation Office and that he could not legally possess a firearm. DAVIS admitted to selling the confidential informant over 2 ounces of cocaine base and three firearms. DAVIS reported that he purchased the firearms in Longwood, North Carolina.
Based on the investigation, DAVIS is responsible for the distribution of 80.36 grams of cocaine base, .128 gram of heroin, and 3 firearms. DAVIS also possessed a firearm in connection with the offense and made a credible threat to use violence.
The case was investigated by the Brunswick County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The federal prosecution was handled by Assistant United States Attorney Ethan A. Ontjes.
Bridgeport Man Charged with Selling Heroin to Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DARRYCK NORRIS, 23, of Bridgeport, was arrested yesterday on a criminal complaint charging him with possession with intent to distribute, and distribution of, heroin. The charge stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According the complaint, at approximately 8:49 p.m. on October 27, 2016, Milford Police and emergency medical personnel responded to a residence in Milford and found an unresponsive 37-year-old male slumped over in the downstairs living area of the residence. Emergency personnel attempted lifesaving measures and administered two doses of the opiate antidote Narcan (Naloxone), which had no effect. The victim was declared deceased at the scene. Officers searched the immediate area and seized four empty baggies and one full baggy that contained suspected heroin. Each of the bags was stamped with the same brand stamp.
Officers also seized the victim’s iPhone. The complaint alleges that text messages contained on the victim’s iPhone revealed that the victim had ordered heroin from NORRIS earlier that day. Witness interviews and further cellphone analysis revealed that the victim had purchased heroin from NORRIS for several months prior to the victim’s overdose.
On November 1, 2016, members of the DEA and Milford Police Department conducted a controlled purchase of heroin from NORRIS in Bridgeport. The heroin bags purchased were stamped with the same stamp that was found on the bags seized from the overdose victim’s residence.
NORRIS appeared today before U.S. Magistrate Judge Sarah A. L. Merriam and was released into a residential drug treatment program.
The charge of possession with intent to distribute, and distribution of, heroin, carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport Resident Office, the DEA’s New Haven Tactical Diversion Squad and the Milford and Bridgeport Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Black Diamond Dog Kennel Owner Sentenced for Making False StatementsRead the Press Release
CEDAR RAPIDS, IA – A northwest Iowa man who owed a monetary penalty to the United States for numerous violations of animal welfare regulations at his kennel was sentenced today to 3 years’ probation for lying to the government about his assets and income.
Gerhard (“Gary”) Felts, age 61, from Kingsley, Iowa, was sentenced after a July 13, 2016 guilty plea to one count of making false statements to the United States.
A plea agreement and sentencing records show that Felts has operated Black Diamond Kennel since 1998. In 2010, he obtained his Class A license from the United States Department of Agriculture (USDA). The USDA conducted 17 inspections since then, finding Felts had 51 noncompliant items, including inadequate veterinary care, as well as inadequate housing, cleaning, sanitation and housekeeping. As a result of these violations, USDA obtained an $18,938 administrative penalty against Felts.
Felts failed to pay this administrative penalty and the United States obtained a civil judgment against him in order to collect the penalty. During the collection process, defendant lied to the government about his bank accounts and his income from a workers’ compensation settlement. Specifically, Felts failed to disclose a checking account he opened in April 2011, a savings account opened in April 2013, and his receipt of $25,000 worth of worker’s compensation payments in April 2013. Once defendant received his workers’ compensation settlement, he used the money to expand his kennel rather than paying his administrative penalty. Felts currently owes $13,382.70 on his administrative penalty.
Felts was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Felts was sentenced to 3 years’ probation with a special condition that requires him to stay current on monthly payments to USDA. The court also ordered that, should he not be debarred from serving as a federally licensed dealer under the Animal Welfare Act, Felts must comply with all applicable federal, state, and local regulations and laws regarding his license and care of animals including but not limited to the Animal Welfare Act. A special assessment of $100 was also imposed.
“The United States takes very seriously its obligation to collect debts from those who violate the Animal Welfare Act. False statements in that process will not be tolerated,” stated United States Attorney Kevin W. Techau. “The Animal Welfare Act’s purpose is to protect animals and those who violate it and are ordered to pay penalties will not be allowed to avoid those consequences by lying to the government. We strongly recommend that the Animal and Plant Health Inspection Service debar Mr. Felts from operating as a federally licensed dog breeder and dealer. Mr. Felts was penalized because of more than a dozen violations of animal welfare regulations and then lied to avoid the repercussions of his actions. His failure to care for his animals and this conviction demonstrate that he should be debarred in order to safeguard the welfare of his animals.”
The case was prosecuted by Assistant United States Attorney Matthew J. Cole and was investigated by U.S. Department of Agriculture. Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 16-cr-49.
Follow us on Twitter @USAO_NDIA.
Bergen County, New Jersey, Man Gets Three Years in Prison for Embezzling Millions of Dollars from North Jersey BusinessRead the Press Release
TRENTON, N.J. – The former chief financial officer of a Bergen County business was sentenced today to 36 months in prison for embezzling millions of dollars and evading taxes, U.S. Attorney Paul J. Fishman announced.
Gomidas Garabed Hartounian, 52, of Franklin Lakes, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to a superseding information charging him with one count of wire fraud and one count of tax evasion. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From April 2007 through April 2014, Hartounian was the CFO for “Company A,” a for-profit company with its principal place of business in Englewood, New Jersey. Hartounian is also the sole owner of MGB LLC, a company registered to his residence. Hartounian fraudulently designated MGB as a vendor in Company A’s accounting system without disclosing that he controlled MGB. He directed Company A employees to issue checks to MGB for freight services that MGB supposedly provided Company A. When asked for the MGB invoices, he claimed that he was maintaining them in his office.
Because Hartounian didn’t have sole signatory power, he forged the signatures of the chief executive officer or the chief operating officer before depositing the checks into bank accounts that he controlled. Hartounian also had checks issued directly from Company A bank accounts to pay for his personal expenses, including real estate taxes to the Borough of Franklin Lakes for $6,562 in August 2011.
Hartounian also admitted that he filed a false federal tax return, Form 1040, for the calendar year 2012 in which he knowingly did not report $1.29 million in income that he received as the sole owner of MGB. Instead, Hartounian falsely understated his income for 2012 as $133,290.
In addition to the prison term, Judge Sheridan sentenced Hartounian to three years of supervised release. Hartounian must also pay restitution of $4,117,463, which includes $3.5 million to the victim company and $617,463 to the IRS.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation.
The government is represented by Assistant U.S. Attorney Shana W. Chen of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: Alan Silber Esq., Roseland, New Jersey
Baltimore Man Ordered to Pay $1 Million in Restitution for Obstructing Firefighters’ Efforts to Fight CVS Fire During Baltimore RiotsRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Gregory Lee Butler, Jr., a/k/a Greg Baly, age 22, of Baltimore, today to pay $1 million in restitution, to serve 250 hours of community service and three years of supervised release, after giving him credit for time served (five weeks), for impeding firefighters by puncturing a firehose during the civil disturbance in Baltimore on April 27, 2015.
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; Commissioner Kevin Davis of the Baltimore Police Department; Maryland State Fire Marshal Brian Geraci; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to the information presented to the court at Butler’s plea hearing and today’s sentencing, on April 27, 2015, riots erupted in Baltimore and at approximately 6:30 p.m. the Baltimore City Fire Department (BCFD) was notified of a fire at the CVS Pharmacy located at 2509 Pennsylvania Avenue, which is adjacent to the intersection of Pennsylvania Avenue and West North Avenue in Baltimore. Several BCFD engines were dispatched to suppress and extinguish the fire at the CVS. Firefighters deployed fire hoses to provide water in those efforts and to protect firefighters inside and near the building. Throughout the course of BCFD’s fire suppression and extinguishment efforts, rioting continued in the vicinity of CVS Pharmacy.
One hose was attached to a hydrant near the intersection of Pennsylvania and West North Avenues. Once the hose was attached to the hydrant and the water was flowing into the hose, Butler admitted that he punctured the hose twice using a knife. Both punctures released a high-pressure stream of water from the hose and rendered the hose inoperable. As a result, the efforts to put out the fire at the CVS were impeded and delayed.
Federal prosecutors previously have charged four other defendants for arson crimes committed during the Baltimore riots on April 27, 2015. Trevon Green, age 23, of Baltimore, pleaded guilty to the arson of a Baltimore food market and admitted that he participated in the looting of a liquor store and assaulted the store’s owner. Green was sentenced to 70 months in federal prison. Darius Raymond Stewart, age 22, of Baltimore, pleaded guilty to malicious destruction of property by fire, arising from the arson of a liquor store and was sentenced to five years in federal prison. Donta Betts, age 20, of Baltimore, was sentenced to 15 years in federal prison for making a destructive device in connection with the April 27, 2015, riots in Baltimore and, in an unrelated case, for discharge of a firearm in furtherance of a drug trafficking crime on July 2, 2015. Raymon Carter, age 25, of Baltimore, Maryland, pleaded guilty to the federal crime of rioting, including the arson of the CVS Pharmacy on April 27, 2015, and was sentenced to four years in prison and ordered to pay restitution of $500,000.
The investigation into arsons that occurred on April 27, 2015, is continuing. Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, Maryland State Fire Marshal’s Office and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Philip A. Selden and Matthew J. Maddox, who prosecuted the case.
Attorney Pleads Guilty to Bribing a Federal Agent, Fraud and EvasionRead the Press Release
Charles T. Busse, 57, of Birmingham, Michigan, pleaded guilty today to charges of bribery, conspiracy to defraud the United States, tax evasion and failure to report cash payments of more than $10,000, announced U.S. Attorney Barbara L. McQuade.
Joining in the announcement was Manny Muriel, Special Agent in Charge of the Detroit office of the Internal Revenue Service – Criminal Investigations, Giovanni Tiano, Special Agent in Charge of the Detroit, Michigan office of the Department of Homeland Security – Office of Inspector General and Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division.
Charles T. Busse pleaded guilty before U.S. District Judge Avern Cohn in Detroit.
According to court records, Busse admitted to paying bribes to a Special Agent with U.S. Immigration and Customs Enforcement – Homeland Security Investigations to obtain numerous deferrals of deportation and other immigration benefits for his clients. Attorney Busse maintains law offices in Rochester Hills and Dearborn.
Busse also admitted to conspiring to obstruct the lawful function of the U.S. Department of Homeland Security by dishonest means. In addition, Busse pleaded guilty to criminal tax evasion and violating the federal law that requires an attorney to report any cash payments of more than $10,000. The crimes are alleged to have occurred between 2009 and 2015. The four charged crimes carry maximum penalties of between five and fifteen years.
A sentencing date will be set by the court.
U.S. Attorney McQuade commended the outstanding work of the Office of Inspector General of the U.S Department of Homeland Security, the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into potential corruption activities involving a federal law enforcement official.
Aryan Brotherhood of Mississippi Gang Member Sentenced to Life in Prison for Racketeering Conspiracy and Related OffensesRead the Press Release
WASHINGTON – A member of the Aryan Brotherhood of Mississippi (ABM) gang was sentenced to life in prison for his participation in a variety of violent criminal acts, including racketeering conspiracy, murder, kidnapping, methamphetamine production and trafficking and other related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi, Special Agent in Charge Stephen G. Azzam of the Drug Enforcement Administration’s (DEA) New Orleans Field Office, Special Agent in Charge Constance Hester of the Bureau of Alcohol, Tobacco, Fire and Explosives (ATF) New Orleans Field Office, Special Agent in Charge Donald Alway of the FBI in Mississippi and Director John Dowdy of the Mississippi Bureau of Narcotics (MBN) made the announcement.
“Criminal enterprises like the ABM hold communities hostage with fear and violence, but they can be hard to prosecute because they stretch across jurisdictions,” said Assistant Attorney General Caldwell. “This case demonstrates our commitment to targeting the leadership and structure of these gangs, building on the successful racketeering prosecutions of the AB in Texas, Oklahoma and now Mississippi. We will not stop until these gangs are dismantled and their members are behind bars.”
“This prosecution is the result of an unprecedented collaboration between the Department of Justice, federal, state and local law enforcement officers targeting a large-scale prison gang involved in violent organized crime throughout the state of Mississippi,” said U.S. Attorney Adams. “As a result of this collaborative effort, we have effectively dismantled this violent organization and sent a clear message that the United States Attorney’s Office and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”
“Our neighborhoods deserve to exist without fear and intimidation inflicted by violent drug gangs like the Aryan Brotherhood of Mississippi,” said Special Agent in Charge Azzam. “The sentencing of this gang member should be a warning to others who prey on the weak and defenseless through their drug trafficking and violent acts. We will continue to work with all of our law enforcement partners, to relentlessly pursue these violent criminals and drug traffickers plaguing our communities.”
“The substantial sentence imposed today sends a strong message to the defendant and to other violent gangs that they will be held accountable for their criminal activities,” said Special Agent in Charge Hester. “ATF will utilize every available resource to combat violent crime. We will continue to collaborate with all of our federal, state and local law enforcement partners in identifying, disrupting and dismantling the violent gangs that prey on our local communities.”
“The convictions in these cases reflect a major disruption of a large organization that incubates in our prison systems and spills over to our streets," said Special Agent in Charge Donald Alway. “Recognizing and neutralizing these organizations is vitally important, and thanks to the joint efforts of our local, state and federal law enforcement partners, Mississippi is much safer.”
“This verdict and the culmination of this case, again, are another example of the outstanding teamwork of federal, state and local law enforcement,” said Director Dowdy. “The dismantling of this organization represents the continuing commitment in law enforcement to protecting the public safety for all Mississippians.”
Frank George Owens Jr., 44, aka State Raised, of D’Iberville, Mississippi, a member of ABM, was sentenced yesterday to serve an additional 120 months for attempted murder by U.S. District Judge Glen H. Davidson of the Northern District of Mississippi. On April 13, 2016, Owens was found guilty by a federal grand jury of engaging in a racketeering conspiracy, murder, kidnapping and attempted murder.
The ABM is the Mississippi-centered branch of the Aryan Brotherhood, a violent, “whites only,” prison-based gang with members and associates operating inside and outside of state penal institutions. The ABM is engaged in racketeering activities, including murder, attempted murder, kidnapping, assault, money laundering, firearms trafficking and trafficking in marijuana and methamphetamine, both inside and outside correctional facilities. According to trial evidence, Owens and three co-defendants served at varying times on the ABM’s three-member “wheel” that oversaw and directed ABM activity throughout Mississippi during the conspiracy.
According to evidence presented at trial, Owens and other ABM leaders ordered others to lure an individual to an ABM house so that they could murder him for an unpaid drug debt. Owens and Eric Glenn Parker beat the victim to death and delivered the body to a co-defendant, who burned the victim’s body for days in order to incinerate it. In addition, in a separate incident, Owens ordered the stabbing of a gang member for threatening to rape a child. The gang member was stabbed five times.
Today’s sentencing marks the culmination of a 2.5-year investigation into and prosecution of ABM, which resulted in the conviction of 42 members and associates of the gang. Parker, 35, of Richton, Mississippi, was convicted along with Owens of engaging in a racketeering conspiracy, murder and conspiracy to possess with intent to distribute at least 500 grams of methamphetamine. Parker’s sentencing has not yet been scheduled.
The DEA, ATF, FBI and the MBN investigated the case. The U.S. Marshals Service; Federal Protective Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Mississippi Highway Patrol; Mississippi Bureau of Investigation; Mississippi Department of Corrections; Harrison County, Mississippi, Sheriff’s Office; South Mississippi Metro Enforcement Team; Tupelo, Mississippi, Police Department; North Mississippi Narcotics Unit; Tishomingo County, Mississippi, Sheriff’s Office; Lee County, Mississippi, Sheriff’s Office; Forrest County, Mississippi, District Attorney’s Office; Prentiss County, Mississippi, Sheriff’s Office; Jones County, Mississippi, Sheriff’s Office; Harrison County, Mississippi, Sheriff’s Office; and South Mississippi Metro Enforcement Team provided valuable assistance in the investigation. The Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Offices of the Northern and Southern Districts of Mississippi prosecuted the case.
Aryan Brotherhood of Mississippi Gang Member Sentenced to Life in Prison for Racketeering Conspiracy and Related OffensesRead the Press Release
A member of the Aryan Brotherhood of Mississippi (ABM) gang was sentenced to life in prison for his participation in a variety of violent criminal acts, including racketeering conspiracy, murder, kidnapping, methamphetamine production and trafficking and other related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi, Special Agent in Charge Stephen G. Azzam of the Drug Enforcement Administration’s (DEA) New Orleans Field Office, Special Agent in Charge Constance Hester of the Bureau of Alcohol, Tobacco, Fire and Explosives (ATF) New Orleans Field Office, Special Agent in Charge Donald Alway of the FBI in Mississippi and Director John Dowdy of the Mississippi Bureau of Narcotics (MBN) made the announcement.
“Criminal enterprises like the ABM hold communities hostage with fear and violence, but they can be hard to prosecute because they stretch across jurisdictions,” said Assistant Attorney General Caldwell. “This case demonstrates our commitment to targeting the leadership and structure of these gangs, building on the successful racketeering prosecutions of the AB in Texas, Oklahoma and now Mississippi. We will not stop until these gangs are dismantled and their members are behind bars.”
“This prosecution is the result of an unprecedented collaboration between the Department of Justice, federal, state and local law enforcement officers targeting a large-scale prison gang involved in violent organized crime throughout the state of Mississippi,” said U.S. Attorney Adams. “As a result of this collaborative effort, we have effectively dismantled this violent organization and sent a clear message that the United States Attorney’s Office and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”
“Our neighborhoods deserve to exist without fear and intimidation inflicted by violent drug gangs like the Aryan Brotherhood of Mississippi,” said Special Agent in Charge Azzam. “The sentencing of this gang member should be a warning to others who prey on the weak and defenseless through their drug trafficking and violent acts. We will continue to work with all of our law enforcement partners, to relentlessly pursue these violent criminals and drug traffickers plaguing our communities.”
“The substantial sentence imposed today sends a strong message to the defendant and to other violent gangs that they will be held accountable for their criminal activities,” said Special Agent in Charge Hester. “ATF will utilize every available resource to combat violent crime. We will continue to collaborate with all of our federal, state and local law enforcement partners in identifying, disrupting and dismantling the violent gangs that prey on our local communities.”
“The convictions in these cases reflect a major disruption of a large organization that incubates in our prison systems and spills over to our streets," said Special Agent in Charge Donald Alway. “Recognizing and neutralizing these organizations is vitally important, and thanks to the joint efforts of our local, state and federal law enforcement partners, Mississippi is much safer.”
“This verdict and case conclusion is another example of the outstanding teamwork in Mississippi among federal, state and local law enforcement,” said Director Dowdy. “The dismantling of this organization represents the continuing commitment in law enforcement to protecting the public safety of all Mississippians.”
Frank George Owens Jr., 44, aka State Raised, of D’Iberville, Mississippi, a member of ABM, was sentenced yesterday to serve an additional 120 months for attempted murder by U.S. District Judge Glen H. Davidson of the Northern District of Mississippi. On April 13, 2016, Owens was found guilty by a federal grand jury of engaging in a racketeering conspiracy, murder, kidnapping and attempted murder.
The ABM is the Mississippi-centered branch of the Aryan Brotherhood, a violent, “whites only,” prison-based gang with members and associates operating inside and outside of state penal institutions. The ABM is engaged in racketeering activities, including murder, attempted murder, kidnapping, assault, money laundering, firearms trafficking and trafficking in marijuana and methamphetamine, both inside and outside correctional facilities. According to trial evidence, Owens and three co-defendants served at varying times on the ABM’s three-member “wheel” that oversaw and directed ABM activity throughout Mississippi during the conspiracy.
According to evidence presented at trial, Owens and other ABM leaders ordered others to lure an individual to an ABM house so that they could murder him for an unpaid drug debt. Owens and Eric Glenn Parker beat the victim to death and delivered the body to a co-defendant, who burned the victim’s body for days in order to incinerate it. In addition, in a separate incident, Owens ordered the stabbing of a gang member for threatening to rape a child. The gang member was stabbed five times.
Today’s sentencing marks the culmination of a 2.5-year investigation into and prosecution of ABM, which resulted in the conviction of 42 members and associates of the gang. Parker, 35, of Richton, Mississippi, was convicted along with Owens of engaging in a racketeering conspiracy, murder and conspiracy to possess with intent to distribute at least 500 grams of methamphetamine. Parker’s sentencing has not yet been scheduled.
The DEA, ATF, FBI and the MBN investigated the case. The U.S. Marshals Service; Federal Protective Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Mississippi Highway Patrol; Mississippi Bureau of Investigation; Mississippi Department of Corrections; Harrison County, Mississippi, Sheriff’s Office; South Mississippi Metro Enforcement Team; Tupelo, Mississippi, Police Department; North Mississippi Narcotics Unit; Tishomingo County, Mississippi, Sheriff’s Office; Lee County, Mississippi, Sheriff’s Office; Forrest County, Mississippi, District Attorney’s Office; Prentiss County, Mississippi, Sheriff’s Office; Jones County, Mississippi, Sheriff’s Office; Harrison County, Mississippi, Sheriff’s Office; and South Mississippi Metro Enforcement Team provided valuable assistance in the investigation. The Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Offices of the Northern and Southern Districts of Mississippi prosecuted the case.
Albuquerque Man Pleads Guilty to Bank Robbery Spree in August 2016Read the Press Release
ALBUQUERQUE – Christopher James Baum, 36, of Albuquerque, N.M., pled guilty today in federal court to six bank robbery charges. Under the terms of his plea agreement, Baum will be sentenced within the range of 20 to 30 years in prison followed by a term of supervised release to be determined by the court.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Chief Gorden E. Eden, Jr., of the Albuquerque Police Department (APD).
Baum was arrested in Aug. 2016, on a criminal complaint charging him with robbing four banks and attempting to rob a fifth bank in Bernalillo County, N.M., between Aug. 16, 2016 and Aug. 24, 2016. According to the complaint, Baum committed the bank robberies by entering Albuquerque-area banks and demanding money from bank tellers.
During today’s proceedings, Baum pled guilty to a felony information charging him with six counts of bank robbery and attempted bank robbery. In entering the guilty plea, Baum admitted the following criminal conduct:
- Robbing the Bank of the West branch located at 5901 Menaul Blvd. NE on Aug. 16, 2016;
- Robbing the Bank of the West branch located at 2101 Eubank Blvd. NE on Aug. 19, 2016;
- Attempting to rob the Bank of Albuquerque branch located at 4201 Wyoming Blvd. NE on Aug. 23, 2016;
- Robbing the Nusenda Credit Union branch located at 7517 Montgomery Blvd. NE on Aug. 23, 2016;
- Robbing the Wells Fargo Bank branch located at 4700 Tramway Blvd. NE on Aug. 24, 2016; and
- Robbing the Bank of the West branch located at 780 Juan Tabo Blvd. NE on Aug. 30, 2016.
Baum also admitted brandishing a pistol at the bank teller when he committed the Aug. 30, 2016 bank robbery. Baum remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Joseph Spindle is prosecuting the case.
Baum, whose criminal history includes three prior bank robbery convictions, is being 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 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. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Alabama Resident Sentenced to Prison for Operating Stolen Identity Refund Fraud SchemeRead the Press Release
Used Stolen Identities to File Returns Fraudulently Claiming More Than $400,000 in Tax Refunds
A Montgomery County, Alabama resident was sentenced to 61 months in prison for his role in a stolen identity refund fraud scheme, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
According to information provided in court, James Vernon Battle used stolen personal identification information to prepare and file at least 335 false federal income tax returns for tax years 2013 and 2014 that fraudulently claimed more than $400,000 in tax refunds. Battle obtained stolen personal identification information from Wendy Huff, who worked at two loan companies in Montgomery, Alabama. Battle directed the Internal Revenue Service (IRS) to issue the requested refunds via prepaid debit cards and U.S. Treasury checks. The prepaid debit cards and checks were sent to various addresses controlled by Battle, as well as Huff’s personal residence. Battle brought several checks to Huff’s workplace, where she used her position to cash them. Huff returned half of the proceeds to Battle and kept the balance for herself.
Battle also attempted to obstruct justice by threatening and intimidating a witness. Evidence introduced in court showed that right after Battle was released on bond, he stalked the witness and threatened that he had “a bullet for the person that messed up his million dollar plan.” U.S. District Court Judge William Keith Watkins found that the evidence of obstruction warranted an increased prison sentence.
Battle pleaded guilty in April to wire fraud and aggravated identity theft. In addition to the prison term imposed, Battle was ordered to serve three years of supervised release and to pay $102,322 in restitution to the IRS. Huff pleaded guilty in March to conspiracy to commit wire fraud and aggravated identity theft, and was sentenced in July to 48 months in prison.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of IRS-Criminal Investigation and the U.S. Secret Service, who conducted the investigation, and Trial Attorneys Michael C. Boteler and Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Wednesday 2 November 2016
Westminster Woman Ordered Held Without Bond Following Indictment and Arrest for the Distribution and Possession of Child PornographyRead the Press Release
DENVER – Sharee Ewudzi-Acquah, age 47, of Westminster, Colorado, who faces child pornography related charges, was ordered held without bond this week by U.S. Magistrate Judge Kristen L. Mix following a contested detention hearing. Ewudzi-Acquah, was indicted by a federal grand jury on October 18, 2016. She was arrested by the FBI on October 20, 2016, which is when she was advised of her rights and the charges pending against her. The detention hearing was held on October 31.
According to the Indictment, Ewudzi-Acquah faces two counts of distribution of child pornography and one count of possession of child pornography. The first count focuses on the time period between September 8, 2015 and October 28, 2015. The second count focuses on the time period between January 20, 2016 and March 13, 2016. Both counts charge that the defendant knowingly distributed child pornography by any means, including computer. The third count states that on July 28, 2016, the date federal authorities executed search warrants, she knowingly possessed child pornography.
During the detention hearing, Assistant U.S. Attorney (AUSA) Valeria Spencer argued that Ewudzi-Acquah was a danger to the community and therefore should be held without bond. In support of her position, AUSA Spencer argued that the defendant traded child pornography with multiple users using a specific cellular telephone App that has the ability for users to trade high volumes of child pornography anonymously. During an investigation into an individual in San Antonio, Texas, agents found evidence of child pornography trading with an individual whose IP address resolved to Westminster, Colorado. Further investigation revealed very graphic sex chats, during which Ewudzi-Acquah sent images and videos of child pornography to the subject in San Antonio. The Westminster IP address also came up during a separate investigation being conducted into a child pornography target in Miami, Florida.
Following the forensic analysis on Ewudzi-Acquah’s phones, agents determined the defendant was using cloud storage, foreign emails, and foreign cloud storage – in both New Zealand and in Russia. During one chat found on one of her devices, the defendant claimed to have molested a relative. In total she had three phones with child pornography on them. Evidence shows that the defendant, who had a long-term job at the University of Colorado, traded child pornography and chatted about child pornography while at work.
If convicted of distribution of child pornography, the defendant faces not less than 5 years, and up to 20 years in federal prison, as well as up to a $250,000 fine per count for each of the two counts. If convicted of possession of child pornography, the defendant faces not more than 10 years in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Valeria Spencer.
The charges contained in the Indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Waterbury Man Who Sold Heroin to Overdose Victim Sentenced to 3 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that REGINALD MILES, JR., also known as “Rocky,” 26, of Waterbury, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 36 months of imprisonment, followed by three years of supervised release, for distributing heroin to a Woodbridge man who died from an overdose a short time later.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on November 19, 2015, a 22-year-old male died from an apparent heroin overdose at a residence in Woodbridge. The investigation revealed that shortly before the victim’s overdose, the victim and two other individuals purchased heroin from MILES in Waterbury.
According to the State of Connecticut Chief Medical Examiner, the victim’s death was determined to be acute intoxication due to the combined effects of heroin and Alprazolam (a generic form of Xanax).
MILES has been detained since his arrest on January 22, 2016. On May 19, he pleaded guilty to one count of distribution of heroin.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the Middlebury, Waterbury and Woodbridge Police Departments. The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Utah Man Pleads Guilty to Bank Fraud and Bankruptcy FraudRead the Press Release
COEUR D’ALENE – Cortney S. Valentine, 39, of Liberty, Utah, pleaded guilty yesterday to bank fraud and false declaration under penalty of perjury and concealment of assets in connection with a bankruptcy case, U.S. Attorney Wendy J. Olson announced. Valentine was indicted by a federal grand jury in Coeur d'Alene on February 18, 2015.
According to the plea agreement, Valentine defrauded U.S. Bank when he made material false statements which were relied upon by U.S. Bank and caused U.S. Bank to lend him $362,000. In the midst of the Valentine’s ever increasing debt and when creditors were attempting to foreclose on various properties, Valentine decided to keep the creditors at bay by filing bankruptcy. Valentine and his wife filed for relief under bankruptcy separately and in different states. In November 2011, Valentine contracted to sell a home to a third party for $1,150,000. Valentine should have reported to the bankruptcy court any proceeds from the sale of the asset. Instead, he used the money to support himself. Valentine made numerous false statements on the bankruptcy filings and concealed the funds from the bankruptcy court that he received from the third party purchaser.
Valentine’s wife, Nicolette P. Valentine, 37, of Liberty, Utah, pleaded guilty to bank fraud, concealment of assets in connection with a bankruptcy case and false statements under oath, on June 23, 2016. She is scheduled to be sentenced on December 6, 2016, before Senior U.S. District Judge Edward J. Lodge.
The charge of bank fraud is punishable by up to 30 years in prison, a maximum fine of $1,000,000, and up to five years of supervised release. The charge of false declaration under penalty of perjury in relation to a bankruptcy case is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of concealment of assets in connection with a bankruptcy case is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for February 28, 2017, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by Federal Bureau of Investigation (FBI).
United States Attorney's Office for the Eastern District of Missouri has Established a Hotline for Handling Election Fraud and Voting Rights CallsRead the Press Release
St. Louis, MO - United States Attorney Richard Callahan today announced that on Election Day, the United States Attorney’s Office will have a hotline for citizens to call on election day regarding complaints of possible election fraud, voter intimidation and any other forms of election abuses. Hotline calls will be answered by Assistant United States Attorneys from the time the polls open at 6 a.m. until the polls close at 7 p.m. The hotline number is 314-539-7733.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes and marking ballots for voters against their wishes or without their input. Federal law also protects voters from acts of intimidation and harassment.
In addition to the United States Attorney’s Office, the St. Louis FBI will also have special agents available to receive allegations of election fraud and other election abuses on election day. The St. Louis FBI field office can be reached by the public at 314-589-2500.
Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Callahan said, "Ensuring free and fair elections depends in large part on the cooperation and vigilance of the American people. It is imperative that those who have specific information about discrimination or election fraud report that information to the local election authority, my office, the FBI or the Civil Rights Division."
U.S. Attorney’s Office Presents Anti-Drug Program to StudentsRead the Press Release
Gulfport, Miss - The United States Attorney’s Office for the Southern District of Mississippi has begun a pilot school education program entitled "Pills, Needles & Designer Drugs" with presentations at Biloxi High School November 2-3, 2016 and St. Patrick’s Catholic High School scheduled for November 29th. The program was first presented at Jeff Davis Elementary School in Biloxi on October 27th.
The forty-five (45) minute program includes a frank discussion and presentation about the greatest drug threats in our community: opiates and designer drugs (sometimes called "bath salts" and "spice"), a short movie produced by the U.S. Attorney’s Office in Birmingham, and a discussion that will include medical personnel from area emergency rooms.
School superintendents that would like further information about the program or who are interested in the U.S. Attorney’s Office bringing the presentation to their schools, can call the U.S. Attorney’s Office at (228) 563-1560 and ask to speak to Melissa Dunn. Medical personnel that wish to donate their time sharing experiences dealing with these dangerous drugs in an emergency setting are also encouraged to contact the U.S. Attorney’s Office.
U.S. Attorney Stanton Announces Five New AppointmentsRead the Press Release
Memphis, TN – U.S. Attorney Edward L. Stanton III has announced the promotion of five attorneys and support staff members to new positions within the U.S. Attorney’s Office.
"Each of these individuals has displayed an exceptional work ethic and unwavering dedication toward the U.S. Attorney’s Office and its mission," said U.S. Attorney Stanton. "I am confident that the experience and diligence they bring to their new leadership positions will continue to make them assets to the office and community."
Among those promoted to new positions are:
• Assistant U.S. Attorney Carroll Andre
Mr. Andre has been promoted to deputy criminal chief. With three decades of experience as an AUSA, Mr. Andre is a veteran prosecutor who primarily handles white-collar cases. In his new role, Mr. Andre will assist the office’s criminal chief with overseeing the criminal division’s execution of day-to-day responsibilities. In the absence of the criminal chief and senior litigation counsel, he will also review pleadings and handle any criminal division inquiries.
• Assistant U.S. Attorney Beth Boswell
Ms. Boswell has been promoted to chief of the Organized Crime Drug Enforcement Task Force (OCDETF) Unit. Ms. Boswell has been with the U.S. Attorney’s Office for five years, primarily prosecuting firearm and drug cases. With respect to her new role, Ms. Boswell will oversee OCDETF and other narcotics-related cases throughout West Tennessee. She will also act as a liaison between the office and fellow federal, state and local law enforcement agencies involved in conducting drug investigations.
• Assistant U.S. Attorney Keenan Carter
Mr. Carter has been promoted to deputy civil chief. He came to the U.S. Attorney’s Office as a seasoned civil litigator, and served as a criminal prosecutor for the office’s Firearms Unit for three years. Mr. Carter returned to civil litigation when he transferred to the office’s Civil Division in 2015. As deputy civil chief, Mr. Carter will take on an additional role in overall case management, as well as new administrative duties within the civil division.
• Marian Peete
Ms. Peete, formerly the lead legal assistant for the Violent Crimes Unit, has been promoted to supervisory legal assistant. With respect to her new position, Ms. Peete will coordinate training and management for the legal staff. She will also maintain and build upon the professional relationship between support staff, attorneys, management and the federal court system.
• LaRita Bearden
Formerly the office’s supervisory legal assistant, Ms. Bearden has been promoted to victim witness specialist. Under this role, Bearden will provide a variety of notifications, case updates and assistance services to victims and witnesses of federal crimes who have suffered physical, financial, and/or emotional trauma. Her sympathetic manner is a plus to this position. The 10-year veteran will also help coordinate community outreach efforts with partnering agencies.
Two Texas Men Sentenced to Combined 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Rosalio Laredo-Garcia, age 21 of Hutchins, Texas, was sentenced today to 57 months in federal prison followed by three (3) years of supervised release and ordered to pay a $1,900 fine on one count of Possession with Intent to Distribute Methamphetamine. Co-Defendant, Hado Zepeda-Garcia, age 25 of Wilmer, Texas was sentenced yesterday to 63 months in federal prison followed by three (3) years of supervised release and ordered to pay a $4,900 fine on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
According to court documents, in February of 2016, Drug Enforcement Administration (DEA) investigators received information that Hado Zepeda-Garcia planned to travel from Wilmer, Texas, to the Western District of Arkansas with several pounds of methamphetamine. On February 6, 2016, agents conducting surveillance in the Western District of Arkansas observed Zepeda-Garcia and Laredo-Garcia driving northbound on Interstate 49 in Zepeda-Garcia’s vehicle. Once the vehicle pulled into the parking lot of a local business, agents with the DEA made contact with them. Hado Zepeda-Garcia consented to the search of his vehicle, and during the search, agents located 2,897 grams of methamphetamine packaged in three separate plastic tubs that were hidden inside of an air compressor.
After waiving their Miranda rights, both Zepeda-Garcia and Laredo-Garcia admitted to agents that they planned to distribute the methamphetamine found in the vehicle in the Western District of Arkansas. Both defendants were indicted on March 18, 2016 and both entered a guilty plea in July, 2016.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Kimberly D. Harris prosecuted the case for the United States.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Two Men Sentenced to Prison on Wire Fraud Conspiracy Charges for Attempting to Steal More Than $1.3 Million Through Unauthorized Wire TransfersRead the Press Release
CHARLOTTE, N.C. – Jamel Ski Yates, a/k/a “Goo,” 43, of Charlotte, was sentenced yesterday by U.S. District Judge Robert J. Conrad, Jr. to 36 months in prison on federal wire fraud conspiracy charges for attempting to steal more than $1.3 million through unauthorized wire transfers, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Yates was also ordered to serve two years under court supervision upon completion of his prison term and to pay $251,146 as restitution.
Yates’ co-defendant, Anthony Shawn Wilkerson, 46, of East Point, Georgia, was also sentenced today, to a year and a day in prison followed by two years of supervised release and was ordered to pay $251,146 as restitution. Wilkerson pleaded guilty to wire fraud conspiracy and wire fraud charges for his role in the conspiracy.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Rose in making todays’ announcement.
Five additional defendants who conspired with Yates to execute the wire fraud scheme have been sentenced to date:
- Shaka Stayman was sentenced to 84 months in prison, after pleading guilty to wire fraud conspiracy and wire fraud charges.
- Dural Samuels was sentenced to 28 months in prison and was ordered to pay restitution of $252,730 after pleading guilty to wire fraud conspiracy and wire fraud charges.
- Barry Shade was sentenced to 12 months in prison and was ordered to pay restitution of $251,147 after pleading guilty to wire fraud conspiracy charges.
- Abiola O. Oginni was sentenced to one year and a day in prison after pleading guilty to wire fraud conspiracy charges.
- Dwayne A. Reynolds was sentenced to three years of probation and was ordered to pay restitution in the amount of $20,037 after pleading guilty to wire fraud conspiracy.
According to filed court documents and statements made in court, from about January 2010 through in or about January 2011, Yates and his co-conspirators engaged in a wire fraud scheme by unlawfully accessing multiple customer accounts maintained by a financial services company located in Charlotte. Court records show that Yates was the insider who stole personally identifiable information (PII) of approximately 90 customers of the victim company, and provided that information to Samuels. According to court records, using that information, Samuels used his network of co-conspirators, which included Stayman, Shade, Oginni, Wilkerson and Reynolds, to withdraw funds from the compromised victim company accounts and then deposit the stolen funds into the co-conspirators’ own bank accounts or the bank accounts of other individuals (also known as “money mule accounts”).
According to court records, the co-conspirators attempted to withdraw more than $1.3 million from the compromised customer accounts by executing multiple wire transfers ranging from $6,000 to $48,000. They then deposited the stolen funds into the money mule accounts and retrieved it through multiple cash withdrawals. According to court records, the co-conspirators were able to steal more over $300,000 through their wire fraud scheme.
Yates and Wilkerson will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility to begin serving their prison terms. All federal sentences are served without the possibility of parole.
The investigation was led by the FBI. Assistant U.S. Attorney Thomas O’Malley, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Twice-Convicted Drug Dealer Charged with Selling Heroin and Fentanyl Resulting in Death, Possessing AmmoRead the Press Release
PITTSBURGH – Henry T. Little-Proctor aka Bundles, of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh with violations of the federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The five-count Superseding Indictment charged Little-Proctor, 26, with conspiracy to distribute and possession with intent to distribute heroin and fentanyl, from October 2015 to July 20, 2016, resulting in the death of a person. The Superseding Indictment further alleges that on July 13, 2016, Little-Proctor possessed with intent to distribute and distributed fentanyl resulting in the death of a person. On July 18, 2016, he also possessed with intent to distribute and distributed heroin. Further, on July 20, 2016, Little-Proctor possessed with intent to distribute heroin. Finally, the Superseding Indictment alleges that from May 14, 2016, to July 20, 2016, Little-Proctor possessed .233 Rem caliber Full Metal Jacket ammunition and .22 caliber ammunition, after having been convicted of multiple crimes punishable by more than one year in prison. Those cases include two prior convictions for heroin dealing.
The law provides for a maximum potential sentence of not less than 20 years and up to life in prison, a fine of $8,000,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt, of the Violent Crime Section of the U.S. Attorney’s Office, is prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration and law enforcement officers from the Duquesne Police Department, Homestead Police Department, and Allegheny County Sheriff’s Office conducted the investigation leading to the Superseding Indictment in this case. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal, state, and local agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
A Superseding Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tonawanda Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Anthony Perry, 28, of Tonawanda, NY, who was convicted of possession with intent to distribute 28 grams or more of crack cocaine, was sentenced to 60 months in prison and by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that on April 10, 2015, members of the Tonawanda Police Department and the Drug Enforcement Administration executed a search warrant at the defendant’s apartment. Police recovered approximately 48 grams of crack cocaine and approximately 28 grams of cocaine.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, and the Town of Tonawanda Police Department, under the direction of Chief Jerome C. Uschold
Three defendants plead guilty to roles in large-scale methamphetamine conspiracyRead the Press Release
CHARLESTON, W.Va. – Three defendants pleaded guilty today to federal drug crimes for their roles in a large-scale drug trafficking organization, announced United States Attorney Carol Casto. Morgan Light, 24, of Charleston and Las Vegas, Mark Cobb, 30, of St. Albans, and Shayne Shamblen, 47, of St. Albans, each pleaded guilty to conspiracy to distribute methamphetamine.
As part of a comprehensive investigation, agents from the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, and Homeland Security Investigations intercepted several mail packages that contained methamphetamine, other drugs, or drug proceeds. Since January 2014, several pounds of methamphetamine were transported from California and Nevada into the Southern District of West Virginia via the United States mail or through individuals driving packages of drugs into the area. Light, Cobb, and Shamblen each admitted that they worked with Joseph Cooper, a codefendant, to arrange for the shipment and transport of methamphetamine to West Virginia.
Light’s handwriting was found on at least one package that contained over 100 grams of crystal methamphetamine. Shamblen admitted that he arranged for the shipment of that same package and intended to distribute the methamphetamine contained in the package. Cobb lived with Light and Cooper in Nevada for a short time, and also helped with the packaging and distribution of methamphetamine. Cobb’s fingerprint was found on a package containing approximately 3 grams of crystal methamphetamine that was sent to an individual in St. Albans. The methamphetamine from both of the packages was laboratory tested and found to be over 90% pure.
Light, Cobb, and Shamblen each face up to 20 years in federal prison when they are sentenced on February 2, 2017. Cooper previously pleaded guilty to possession with intent to distribute methamphetamine and faces a minimum of 5 years and up to 40 years in prison when he is sentenced on January 19, 2017. Benjamin Childers, another individual involved with the transport of methamphetamine in this drug trafficking organization, previously pleaded guilty to conspiracy to distribute methamphetamine and faces at least 10 years and up to life in prison when he is sentenced on January 4, 2017.
Assistant United States Attorney Haley Bunn is responsible for the prosecution. United States District Judge John T. Copenhaver, Jr., is presiding over these cases.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
- Follow us on Twitter: SDWVNews
Three Former Supervisory Correctional Officers Charged with Beating Handcuffed and Shackled Inmate at Angola State PrisonRead the Press Release
Officers Falsified Reports and Tampered with Witnesses to Cover Up Beating
Three former supervisory correctional officers at Louisiana State Penitentiary in Angola, Louisiana, were indicted today for beating a handcuffed and shackled inmate, and conspiring to cover up their misconduct by falsifying official records, committing perjury and tampering with witnesses as well as physical evidence.
According to the indictment, former Major Daniel Davis, 40, of Loranger, Louisiana; former Captain John Sanders, 31, of Marksville, Louisiana; and former Captain James Savoy, 38, of Marksville, beat an inmate, who suffered bodily injury as a result. The defendants then created a false cover story, asserting that they had used reasonable force to get the inmate under control after he had gotten out of his cell and fought with officers. To corroborate that false cover story, members of the conspiracy instructed subordinates to clean up the inmate’s blood before internal investigators could document it, falsified official prison reports and records, ordered subordinates to lie to internal affairs investigators and lied under oath in a federal civil proceeding arising out of the incident.
A fourth former supervisory correctional officer, Captain Scotty Kennedy, 48, of Beebe, Arkansas, pleaded guilty on Tuesday for his role in the incident.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI’s Baton Rouge Division and is being prosecuted by Assistant U.S. Attorney Frederick A. Menner Jr. of the Middle District of Louisiana and Trial Attorney Christopher J. Perras of the Civil Rights Division’s Criminal Section.
Davis et al IndictmentThree Former Supervisory Correctional Officers Charged with Beating Handcuffed and Shackled Inmate at Angola State PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, announced that three former supervisory correctional officers at Louisiana State Penitentiary in Angola, Louisiana, were indicted today for beating a handcuffed and shackled inmate, and conspiring to cover up their misconduct by falsifying official records, committing perjury and tampering with witnesses as well as physical evidence. Earlier this week, a fourth former supervisory officer pled guilty for his role in the crimes.
Former Major DANIEL DAVIS, age 40, of Loranger, Louisiana, former Captain JOHN SANDERS, age 31, of Marksville, Louisiana, and former Captain JAMES SAVOY, age 38, of Marksville, Louisiana, were charged in a multi-count indictment by a federal Grand Jury sitting in the Middle District of Louisiana. According to the indictment, Major DANIEL DAVIS, Captain JOHN SANDERS and Captain JAMES SAVOY beat an inmate, who suffered bodily injury as a result. The defendants then created a false cover story, asserting that the officers used reasonable force to get the inmate under control after he had gotten out of his cell and fought with officers. To corroborate that false cover story, members of the conspiracy instructed subordinates to clean up the inmate’s blood before internal investigators could document it, falsified official prison reports and records, ordered subordinates to lie to internal affairs investigators and lied under oath in a federal civil proceeding arising out of the incident.
A fourth defendant, former Captain SCOTTY KENNEDY, age 48, of Beebe, Arkansas, pled guilty on Tuesday, November 1, 2016, for his role in the incident.
U.S. Attorney Green stated: “It is a sad day whenever a member of law enforcement engages in wrongdoing. In addition to the direct harm caused to a victim, such wrongdoing taints the vast majority of officers who fulfill their mission with honesty and integrity. Today’s indictment reinforces that no one is above the law.”
This case is being investigated by the Baton Rouge Office of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Frederick A. Menner, Jr. of the Middle District of Louisiana and Trial Attorney Christopher J. Perras of the Civil Rights Division’s Criminal Section.
NOTE: An indictment is an accusation by the Grand Jury. Each defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Tampa Woman Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Melissa Hayes has pleaded guilty to conspiracy to commit theft of government property. She faces a maximum penalty of five years in federal prison.
According to the plea agreement, Hayes conspired with others to commit stolen identity refund fraud by depositing United States Treasury checks in the names of others into a business bank account that had been established for her restaurant/food business. Hayes then withdrew the funds the same day or the following day, spent the money on point-of-purchase items, or transferred the money to her personal bank account. The Treasury checks were fraudulently endorsed with the name of the intended recipient (the victim) and the name of Hayes’s business prior to being deposited. Four of the persons named on the Treasury checks deposited into Hayes’s account were deceased.
Between January and June 2012, Hayes deposited 22 fraudulent government and tax refund checks, totaling more than $160,000, into her business bank account. She used these fraudulently obtained funds for her personal use and shared them with her co-conspirators.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Statement by Attorney General Loretta E. Lynch on Fatal Shooting of Police Officers in Des Moines, IowaRead the Press Release
Attorney General Loretta E. Lynch today released the following statement regarding this morning’s shooting in Des Moines, Iowa:
“Good morning, everyone. Before we begin today, I want to take a moment to address the senseless attacks that claimed the lives of two police officers early this morning in Des Moines, Iowa. A suspect is in custody, and the Department of Justice has offered any and all assistance to our state and local counterparts as they investigate these appalling attacks. We will continue to monitor the situation, and our U.S. Attorney’s Office in the Southern District of Iowa will remain in regular contact with local authorities.
Violence has no place in the United States of America. It degrades our communities, and it demeans our values. And when that violence is coldly and deliberately directed at those who risk their lives to enforce the law and to keep us safe, it is especially intolerable. This tragic incident is yet another reminder of the tremendous dangers that law enforcement officers face each and every day. The men and women in law enforcement deserve our gratitude and our respect. And more than that, they deserve our support, which is why the Department of Justice is committed to doing everything we can to give police officers the tools, training, and equipment they need to do their jobs safely and effectively. And we are determined to hold to account anyone who targets police officers simply because they have the courage and the selflessness to wear the badge each and every day.
I know that this is a time of particular tension and mistrust between law enforcement and many communities. I know that while we do not yet know what led the perpetrator to commit these awful crimes, many will be nevertheless be tempted to read a message or motive into this assault. But let me be clear: there is no message in murder. Violence creates nothing; it only destroys. And the path to the more just and peaceful society that we desire for ourselves and for our children is paved not with hatred and malice, but with compassion, and understanding, and the hard work of cooperation. Let those be our watchwords in the days to come.
I ask that you keep the families and loved ones of the brave officers we lost this morning in your thoughts and prayers.”
Springdale Man Sentenced to Six Years in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Richard Blaine Gamblin, age 22, of Springdale, was sentenced to 72 months in federal prison and ten (10) years of supervised release on one count of Knowing Receipt of Child Pornography. The sentencing hearing took place before the Honorable Timothy L. Brooks in the United States District Court in Fayetteville.
According to the Plea Agreement, in April of 2016, the National Center for Missing and Exploited Children notified Homeland Security Investigations (HSI) and the Internet Crimes Against Children Taskforce (ICAC) that an individual residing in Northwest Arkansas uploaded images of child pornography to an online storage account. A federal search warrant was executed at the home of Richard Gamblin. During the execution of the warrant, law enforcement seized multiple digital devices that contained child pornography. At that time, Gamblin admitted to owning the seized equipment and to using it to download child pornography. A subsequent forensic examination of his computer revealed in excess of 100 videos of minors engaged in sexually explicit conduct.
Gamblin was indicted by a federal grand jury in May, 2016 and pleaded guilty to the charge in July, 2016.
The investigation was led by Homeland Security Investigations, the Internet Crimes Against Children Taskforce and the Springdale Police Department. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
* * * E N D * * *
Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Six Individuals Indicted for Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On October 13, 2016, a federal grand jury in the District of Puerto Rico returned an indictment against six defendants charged with conspiracy import controlled substances from the Dominican Republic into Puerto Rico, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Department of Homeland Security Investigations is in charge of the investigation with collaboration from the Caribbean Corridor Strike Force and the Police of Puerto Rico.
The indictment, which was unsealed yesterday, alleges that from about January 2013 through in or about May 2013, defendants Erick Mosquea-Polanco; Juan José De La Cruz-Morales; Kevin De Morla-Santana; Rudy Contreras-Severino; José Morales-Soto; and Sandy Hernández-Mieses conspired to intentionally and knowingly import and attempt to import from the Dominican Republic into the United States more than five kilograms of cocaine.
The indictment alleges that the defendants knowingly and unlawfully conspired to launder over one million dollars which were the product of drug trafficking.
During the arrest of Sandy Hernández yesterday, HSI Agents found over $30,000 U.S. cash, three weapons (two Glock and one Beretta pistols), and more than one thousand seven hundred kilograms of cocaine. Of the six persons in the indictment three were arrested and 3 are awaiting extradition from the Dominican Republic.
Assistant U.S. Attorney Desiree Laborde is in charge of the prosecution of the case, under the supervision of Assistant U.S. Attorney Julia Díaz-Rex, Supervisor of the Narcotics Unit. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Schuele Boys Gang Member Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — Acting U.S. Attorney James P. Kennedy, Jr. announced today that Demario James, 34, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine, before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum sentence of five years in prison, a maximum of 40 years and a $5,000,000.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that between June 2013 and July 2014, James conspired with co-defendant Michael Robertson and other Schuele Boys associates and gang members to distribute cocaine in the City of Buffalo. The defendant purchased cocaine from Michael Robertson and then broke down the cocaine for distribution to customers.The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
James is one of 28 Schuele Boys Gang members, associates and other individuals arrested in this case. To date, 22 of the defendants have been convicted.
Today’s plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen.Sentencing is scheduled for March 16, 2017 at 12:30 p.m. before Judge Arcara.
Richard Byrd Pleads Guilty to Leading Major Baltimore Drug Distribution OrganizationRead the Press Release
Baltimore, Maryland –Richard Byrd, a/k/a Robert Smith, age 43, a Jamaican national residing in Maryland and Arizona, pleaded guilty today to conspiracy to distribute and possess with intent to distribute cocaine and marijuana, and to conspiracy to launder drug proceeds.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration, Washington Field Office; Chief James W. Johnson of the Baltimore County Police Department; Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Frank L. Milstead, Director of the Arizona Department of Public Safety; Chief Jeri Williams of the Phoenix, Arizona Police Department; and Chief Sean Duggan of the Chandler, Arizona Police Department.
“Richard Byrd ran a major drug distribution ring that generated millions of dollars in proceeds,” said U.S. Attorney Rod J. Rosenstein.
“This is one of the largest and most prolific drug organizations that has been dismantled in Baltimore in recent memory”, stated Special Agent in Charge Karl C. Colder. “This investigation and guilty plea is a prime example of how DEA, with our federal and local partners in HIDTA (High Impact Drug Trafficking Area), continues to target and dismantle large scale, complex trafficking organizations that operate in Baltimore, the surrounding metropolitan area, and throughout the nation.”
According to his plea agreement and court documents, from 2009 through April 2014, Richard Byrd was the leader and organizer a drug distribution network which provided for the acquisition, transportation and distribution of cocaine and marijuana. The sale of marijuana and cocaine generated proceeds in the millions of dollars. These proceeds were counted and packaged in and around Baltimore. Byrd used couriers to transport the proceeds to the Atlanta, Georgia area, then others to transport the money from Atlanta to cities in Nevada, Texas, Arizona, and California, where the cash was used to purchase additional quantities of drugs.
Byrd also acquired a financial interest in a business in order to launder drug proceeds, finance commercial ventures, and pay other bills and expenses. At his direction, several million dollars in cash were deposited into the bank accounts maintained by the business. Many of these transactions involve deposits in excess of $10,000. In addition, Byrd used bank accounts in the name of an alias, Robert Smith, to conduct financial transactions intended to launder drug proceeds, including paying personal bills and expenses.
The conspirators used freight companies to ship drugs obtained in Arizona, California and elsewhere to distribution points in Baltimore, and other east coast destinations. Rasan Byrd supervised the Arizona-based activities of organization. Under the direction of Richard Byrd, Rasan coordinated the acquisition of large quantities of marijuana and cocaine from Mexican sources of supply and supervised several workers who weighed and packaged the drugs in a way to avoid detection by law enforcement. On April 22, 2013, law enforcement officers in Arizona seized 16 kilograms of cocaine and over 600 pounds of marijuana which were about to be shipped to Byrd’s Baltimore-based distributors.
The Baltimore distributors included Jerome Castle, Joseph Byrd, and Harold Byrd. Castle supervised the Baltimore operation, taking delivery of the drugs, selling them, and collecting and counting proceeds from the drug sales. On April 22, 2013, law enforcement officers in Maryland seized approximately 350 pounds of marijuana and over 10 kilograms of cocaine from businesses and residences utilized by Castle, Joseph Byrd, and Harold Byrd. In addition, almost $58,000 in currency and jewelry valued at more than $400,000 were recovered at the residence of Jerome Castle. The money and jewelry were also proceeds from illegal drug sales.
In addition, over $1 million was seized in Arizona from Richard Byrd in early 2011. In July 2012, an additional of $372,000 was seized from a residence in Arizona occupied by Richard and Rasan Byrd. These money seizures were proceeds from east coast drug sales intended for use in acquiring additional quantities of marijuana and cocaine.
During the course of this conspiracy more than 150 kilograms of cocaine and 20,000 kilograms of marijuana were acquired and distributed by Richard Byrd and his associates.
Byrd and the government have agreed that if the Court accepts the plea agreement Byrd will be sentenced to 26 years in prison and will be required to pay a money judgment of $20 million dollars, as well as forfeit his interest in two properties, three businesses, and 10 vehicles, and forfeit $1,609,411.51 in cash seized during the investigation. U.S. District Judge Richard D. Bennett has scheduled sentencing for February 9, 2017, at 3:00 p.m.
Brothers Rasan Byrd, age 41, of Houston, Texas, Harold Alexander Byrd, age 27, of Phoenix, Maryland, and Joseph Ibreham Byrd, age 35, of Owings Mills, Maryland, previously pleaded guilty to their roles in the conspiracy. Rasan was sentenced to 14 years in prison and Harold and Joseph were each sentenced to 10 years in prison.
Jerome Adolfo Castle, a/k/a Dontwon Burris, age 37, a Jamaican citizen residing in Pikesville, Maryland, previously pleaded guilty to his role in the conspiracy and was sentenced to 14 years in prison. Castle was also ordered to forfeit $57,997 in cash, his interest in seven Baltimore properties, jewelry valued at more than $411,000, 98 pairs of men’s shoes, two laptop computers and an I-Pad, seven firearms and ammunition, as well as six vehicles, including a 2009 Jaguar XF Premium.
Maurice Jones, age 62, and Richard Drummond, age 40, both of Baltimore, also pleaded guilty to their roles in the conspiracy and were sentenced to seven years in prison and two years in prison, respectively.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department, the Maryland Transportation Authority Police, IRS-Criminal Investigation, HSI-Baltimore, Arizona Department of Public Safety, Phoenix Police Department, and Chandler, Arizona Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Kenneth S. Clark, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Raleigh County felon sentenced to federal prison for gun crimeRead the Press Release
BECKLEY, W.Va. – A convicted felon from Sophia was sentenced today to three years and one month in federal prison for a gun crime, announced United States Attorney Carol Casto. Gene A. James, 46, previously pleaded guilty to being a felon in possession of a firearm.
James admitted that on February 23, 2016, while in Sophia, he possessed a Leinad model DD derringer pistol. James was prohibited from possessing any firearm under federal law because of a 2014 conviction in United States District Court for the Southern District of West Virginia for distribution of oxycodone.
The United States Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. United States District Judge Irene C. Berger imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
- Follow us on Twitter: SDWVNews
New London Man Sentenced to 3 Years in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KEVIN EVERETT, 29, of New London, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 36 months of imprisonment, followed by one year of supervised release, for distributing crack cocaine.
This matter stems from a long-term investigation headed by the Connecticut State Police Statewide Narcotics Task Force East and U.S. Drug Enforcement Administration and into the large-scale distribution of narcotics in southeastern Connecticut. The investigation revealed that Sydney Jackson, also known as “Fatz,” and others regularly acquired kilogram quantities of cocaine and heroin from sources in New York and transported the drugs to southeastern Connecticut. Much of the cocaine was converted to crack cocaine by Jackson in Connecticut, and the drugs were distributed through a network of dealers, including EVERETT, in Groton, Norwich, New London, Stonington, Westerly, R.I. and the surrounding area.
On November 24, 2015, a federal grand jury in Hartford returned a 35-count superseding indictment charging EVERETT, Jackson and 11 other defendants with various narcotics trafficking and firearm offenses. In addition, approximately 20 individuals were prosecuted on related state charges.
During the course of the investigation, which included numerous controlled purchases of narcotics, extensive surveillance and the execution of 11 state search warrants, investigators seized approximately 1.3 kilograms of cocaine, one kilogram of crack cocaine, 416 grams of heroin, five firearms and $53,500 in cash.
EVERETT has been detained since his arrest on June 17, 2015. On July 25, 2016, he pleaded guilty to one count of use of a telephone to facilitate the commission of a drug trafficking felony.
On October 27, 2016, Jackson pleaded guilty to one count of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”). When he is sentenced, he faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
This matter has been investigated by the Connecticut State Police Statewide Narcotics Task Force East, U.S. Drug Enforcement Administration, Homeland Security Investigations, U.S. Marshals Service, Connecticut Department of Correction and Groton City, Groton Town, New London, Norwich and Waterford Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Dave Vatti and Joseph Vizcarrondo, with the assistance of Senior Assistant State’s Attorneys Paul Narducci and David Smith of the State’s Attorney’s Office for the Judicial District of New London.
Moscow Man Sentenced in Two Federal CasesRead the Press Release
COEUR D’ALENE – William Douglas Brown, 72, of Moscow, Idaho, was sentenced yesterday by Senior U.S. District Judge Edward J. Lodge to two years probation for unlawful possession of firearms and ammunition and making a false statement, U.S. Attorney Wendy J. Olson announced. Brown pleaded guilty in both cases on August 23, 2016.
According to the plea agreements, Brown aided co-defendant Matt Eugene Ruck in unlawful possessing firearms because Brown knew Ruck was prohibited from possessing firearms due to Ruck’s prior felony conviction. Although Brown knew that Ruck was prohibited from possessing firearms and ammunition, Brown agreed to purchase the firearms and stored them at their office space. Brown and Ruck both possessed the firearms with either able to use them. In Brown’s second case, he was charged with making a false statement. At the time of the false statement, Brown knew that because of Ruck’s conviction for fraud and theft, Ruck was debarred from government contracting. In April 2015, Brown assisted Ruck in obtaining government contracts when he made an application to receive government contracts wherein Brown represented, with Ruck’s assistance, that neither he nor Ruck was debarred. Ruck, through Brown’s company, obtained 12 government contracts.
The cases were investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), General Services Administration – Office of Inspector General, Department of Homeland Security, and U.S. Secret Service (USSS).
Moscow Man Sentenced in Three Federal CasesRead the Press Release
COEUR D’ALENE – Matt Eugene Ruck, 49, of Moscow, Idaho, was sentenced yesterday in United States District Court to 60 months in prison followed by 3 years supervised release for wire fraud and theft of government money, unlawful possession of firearms and making a false statement, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Ruck to pay $206,081.35 in restitution. In Ruck’s first case, a jury found him guilty of wire fraud and theft of government money in March of this year. In his second and third cases, Ruck pleaded guilty on August 23, 2016, to unlawful possession of firearms and making a false statement.
In Ruck’s wire fraud and theft of government money conviction, Ruck had contracted with the government to provide services for which he overbilled. Ruck stole approximately $345,000 through these transactions. In Ruck’s second case, he was charged with unlawful possession of firearms and ammunition. Ruck was a prohibited person at the time he possessed the firearms. In Ruck’s third case, Ruck was charged with making a false statement on a government document. Ruck was debarred from government contracting. In order to get government contracts, Ruck and his co-defendant William Douglas Brown made a false statement on the application that allowed Ruck to bid on government contracts. Ruck obtained 12 government contracts after he was debarred.
These cases were investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Department of Homeland Security, General Services Administration – Office of Inspector General, and the U.S. Secret Service (USSS).
Military Men Charged with Human SmugglingRead the Press Release
CORPUS CHRISTI, Texas – Two active duty Army soldiers have been charged with smuggling two illegal aliens through a Border Patrol (BP) checkpoint, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement's Homeland Security Investigations (HSI).
Marco Antonio Nava Jr., 19, and Joseph Edmond Cleveland, 25, both of El Paso, made their appearances today before U.S. Magistrate Judge B. Janice Ellington.
The indictment charges both men with one count of conspiring to transport aliens and one count of transporting an alien.
The indictment alleges Nava and Cleveland smuggled two Illegal aliens through the BP checkpoint in Falfurrias on June 19, 2016. On that date, at approximately 4:00 p.m., Nava drove a vehicle to the checkpoint with Cleveland as his passenger. A BP agent conducted an immigration inspection on the vehicle, at which time the agent discovered two additional passengers in the back. A brief investigation revealed those individuals were illegal aliens.
If convicted, Nava and Cleveland face up to 10 years in federal prison.
HSI conducted the investigation. Assistant U.S. Attorney Jeffrey S. Miller is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Mexican National Charged with Assaulting a Federal OfficerRead the Press Release
BROWNSVILLE, Texas – A 24-year-old Mexican female has been charged with physically assaulting a Border Patrol (BP) agent who was attempting to restrain her, announced U.S. Attorney Kenneth Magidson.
Maribel Tejeda-Fomperosa is set to make her initial appearance before U.S. Magistrate Judge Ignacio Torteya this morning.
“In the last few months, we have seen the amount of incidents of aggression against our agents rise,” said Chief Patrol Agent Manuel Padilla Jr. “Assaults against our agents are unacceptable and will not be tolerated. Our agency is working with state and federal prosecutors to ensure the safety our agents while in the field and in operational settings.”
According to the criminal complaint, Tejeda-Fomperosa physically assaulted a BP agent and also spit on a second agent. On Oct. 24, 2016, BP agents arrested Tejeda-Fromperosa after she allegedly made an illegal entry into the United States by wading across the Rio Grande River near Brownsville. The criminal complaint alleges Tejeda-Fromperosa became become physically and verbally aggressive after being placed in a holding cell following her arrest. As a result, she physically assaulted a BP agent attempting to restrain her and spat at a second agent.
If convicted, Tejeda-Fromperosa faces a possible sentence of up to eight years in federal prison and a possible $250,000 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney Angel Castro is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Methamphetamine Distributors Plead GuiltyRead the Press Release
LUBBOCK, Texas — Two Littlefield, Texas, men, Juan Carlos Lara-Ochoa and Jose Alberto Cibrian, pleaded guilty this morning before U.S. Magistrate Judge D. Gordon Bryant Jr. to their roles in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Lara-Ochoa, 24, admitted that on June 1, 2016, he possessed with intent to distribute 50 grams or more of methamphetamine. He faces a statutory sentence of not less than 10 years and up to life in federal prison and a $10 million fine. Cibrian, 41, admitted that on March 4, 2016, he possessed with intent to distribute a mixture or substance containing a detectable amount of methamphetamine. He faces a maximum statutory sentence of 20 years in federal prison and a $1 million fine. Judge Bryant ordered a presentence investigation report for each defendant with sentencing dates to be set after the completion of those reports.
Three additional defendants charged in the case, Jonathan Lovato, 33, Arleen Theres Keithley, 36, and Crystal Ann Alaniz, 32, are scheduled to enter guilty pleas on Monday, November 7, 2016.
According to documents filed in court, on June 1, 2016, officers with the Lubbock Police Department learned that Lara-Ochoa would be delivering about two pounds of methamphetamine to Christopher Paul Andrade in Lubbock. Law enforcement set up surveillance and followed Lara-Ochoa from Littlefield, Texas to the La Michoacana grocery on Clovis Highway in Lubbock. Lara-Ochoa parked in the grocery store’s parking lot, and a short time later, Andrade arrived and parked next to him. Andrade got into the front passenger seat of Lara-Ochoa’s vehicle, stayed for less than one minute, and then exited that vehicle, returning to his. Law enforcement followed Andrade as he drove out of the parking lot, and after a brief pursuit, detained Andrade and found approximately 444 grams of methamphetamine that he had attempted to discard during the pursuit. Andrade pleaded guilty in August 2016 to one count of possession with intent to distribute methamphetamine. He is scheduled to be sentenced on December 2, 2016, by Senior U.S. District Judge Sam R. Cummings.
Law enforcement observed Lara-Ochoa depart the parking lot and return to Littlefield, where they arrested him. They obtained a search warrant for his vehicle and located a hidden compartment under the front passenger’s seat that contained two separate packages of methamphetamine, weighing a total of 2,230 grams. One of those was packaged exactly the same as the methamphetamine Andrade had discarded. Officers also obtained a search warrant for Lara-Ochoa’s storage unit and found an additional 1,782 grams of methamphetamine and five firearms.
On March 4, 2016, officers with the Littlefield Police Department learned of a suspicious vehicle at a nearby RV park. Upon arrival, officers found Jose Alberto Cibrian passed out in the driver’s seat of that vehicle, with the engine running and the gear shift in the drive position. After removing him from the vehicle, officers found a plastic bag containing methamphetamine in the center console, a methamphetamine pipe, a digital scale and a firearm in a bag in the backseat. Cibrian admitted he had recently purchased the methamphetamine and the firearm.
The case is being investigated by the Lubbock Police Department, the Littlefield Police Department, the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Sean Long is in charge of the prosecution.
# # #
Massachusetts Man Pleads Guilty to Drug Conspiracy and Firearms ChargesRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced that Juan Alexis Diaz Pena, age 26, formerly of Methuen, Massachusetts, pleaded guilty to conspiracy to distribute, and to possess with the intent to distribute, quantities of heroin, fentanyl and oxycodone and unlawful possession of a firearm in furtherance of the drug trafficking conspiracy. The plea of guilty took place just before Pena’s trial was scheduled to begin.
According to documents that were filed in court and statements in the plea proceeding, from approximately the spring of 2014 through January of 2016, Pena and his co-defendant, Martin Gonzalez Diaz, conspired to distribute quantities of heroin, fentanyl and oxycodone in the Lawrence, Massachusetts area to individuals in Massachusetts who then sold the drugs to New Hampshire-based customers for redistribution in Rochester, New Hampshire. Gonzalez Diaz, 34, also formerly of Methuen, pleaded guilty to the drug conspiracy charge on August 17, 2016, and is scheduled to be sentenced on November 21, 2016.
As part of the investigation, DEA agents searched an apartment connected to Pena and located quantities of cocaine and heroin, as well as items associated with drug trafficking. A loaded semi-automatic handgun was recovered under a mattress in a bedroom in close proximity to where the drugs were located.
Pena is scheduled to be sentenced on February 17, 2017.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to address the significant presence of heroin and fentanyl in New Hampshire by continuing to target drug trafficking organizations who are responsible for bringing those drugs into our state.” said United States Attorney Emily Gray Rice.
The investigation was conducted by the United States Drug Enforcement Administration, Tactical Diversion Unit, Portsmouth, New Hampshire; the Rochester, New Hampshire Police Department and the Haverhill, Massachusetts Police Department. Assistant United States Attorneys Jennifer Cole Davis and Seth Aframe are prosecuting the case.
###
Manhattan U.S. Attorney Announces Arrest of Individual Who Compromised Thousands of University Email Accounts and Stole Private and Confidential InformationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of JONATHAN POWELL for obtaining unauthorized access to email accounts maintained by a New York City area university, using his work computer, and causing over $5,000 of loss in the process. POWELL went on to compromise social media and other online accounts linked to the university email accounts, and mined those linked accounts for the users’ login credentials and other private and confidential information. POWELL also attempted to access email accounts at more than 75 other universities around the country. At the time of the alleged offense, POWELL was employed by a private business at its branch office located in Phoenix, Arizona. POWELL was arrested this morning, and is expected to be arraigned in federal court in Phoenix later today before a U.S. Magistrate Judge.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Jonathan Powell targeted dozens of universities around the country, successfully hacking into student email accounts hosted on at least two universities’ servers and accessing the social media, email, and other online accounts of many of those students. Powell allegedly stole students’ personal information and searched their photos for potentially embarrassing content. This case should serve as a wakeup call for universities and educational institutions around the country. There is no greater threat to our security and personal privacy than the cyber threat, and hackers must be identified, stopped, and punished.”
FBI Assistant Director William F. Sweeney Jr. said: “Sitting at a computer more than 2,000 miles away, Jonathan Powell allegedly attempted unauthorized access to more than 2,000 university email accounts. Powell used password reset tools to basically pick the lock of thousands of personal spaces and look around at what was stored there. Cybercrime victims can be large companies or individual users who have their network or accounts accessed illegally, even if there is no theft. The FBI takes seriously any allegations of intrusions, and we will continue to hold accountable those who pose a threat in cyberspace.”
According to the allegations contained in the Complaint[1]:
From at least in or about October 2015 up to and including at least in or about September 2016, POWELL obtained unauthorized access to email accounts hosted by at least two United States-based educational institutions, including one which has its primary campus in New York, New York (“University-1”). POWELL obtained unauthorized access to these accounts by accessing password reset utilities maintained by the email servers at the victim institutions, which are designed to allow authorized users to reset forgotten passwords to accounts. POWELL utilized the password reset utilities to change the email account passwords of students and others affiliated with those educational institutions. Once POWELL gained access to the compromised email accounts (the “Compromised Accounts”), he obtained unauthorized access to other password-protected email, social media, and online accounts to which the Compromised Accounts were registered, including, but not limited to, Apple iCloud, Facebook, Google, LinkedIn, and Yahoo! accounts. Specifically, using the Compromised Accounts, POWELL requested password resets for linked accounts hosted by those websites (the “Linked Accounts”), resulting in password reset emails being sent to the Compromised Accounts, which allowed POWELL to change the passwords for the Linked Accounts. POWELL then logged into the Linked Accounts and searched within the Linked Accounts, gaining access to private and confidential content stored in the Linked Accounts. In one instance, POWELL searched a University-1 student’s linked Gmail account for digital photographs, and for the terms “password,” “naked,” “cum” and “horny.”
An analysis of University-1 password reset utility logs and other data revealed that POWELL accessed the University-1 password reset utility approximately 18,640 different times between approximately October 2015 and September 2016. During that timeframe, POWELL attempted approximately 18,600 password changes in connection with approximately 2,054 unique University-1 email accounts, and succeeded in making 1,378 password changes in connection with approximately 1,035 unique University-1 email accounts. (The number of successful password changes is greater than the number of compromised University-1 email accounts because certain University-1 email accounts were compromised more than once.)
In or about September 2016, POWELL repeatedly accessed the password reset utility of a second university located in Pennsylvania (“University-2”), in a similar fashion to University‑1. During that timeframe, POWELL attempted to change the email passwords for approximately 220 University-2 email accounts, and successfully changed the email passwords for approximately 15 University-2 email accounts. Following the unauthorized access of those University-2 email accounts, a number of Facebook accounts linked to the compromised University-2 email accounts were also compromised.
The FBI obtained and analyzed the device (the “Device”) assigned to POWELL at his place of employment in Phoenix, Arizona (the “Company”), which POWELL utilized in the above-described scheme. The FBI also obtained from the Company a network backup of certain files on the Device, created on or about September 30, 2016 (the “Device Backup”), which the FBI also analyzed. The Device and Device Backup contain, among other things, a number of documents listing University-1 email account usernames and passwords. Certain documents found on the Device also contain credentials – i.e., usernames and passwords – for logging into various internet service provider (“ISP”) accounts appearing to belong to the same University‑1 email account users.
A review of the Device’s web browser history, covering the period from July 5, 2016, to October 3, 2016, revealed that POWELL accessed student directories and login portals associated with more than 75 other colleges and universities (the “Other Universities”) across the United States. An analysis of the Device Backup demonstrated that the Device Backup contains several documents with filenames that refer to certain of the Other Universities. Those documents contain what appear to be login credentials for a variety of password-protected accounts linked to email accounts at certain of the Other Universities.
* * *
POWELL, 29, of Phoenix, Arizona, is charged with one count of fraud in connection with computers, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Christopher J. DiMase and Timothy Howard are in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manatee County Probationer Pleads Guilty to Possessing FirearmRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Pedro Garcia (34, Manatee County) has pleaded guilty to knowingly possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. His sentencing hearing has been scheduled for January 26, 2017.
According to court documents, on November 9, 2015, law enforcement officers conducted a compliance search at Garcia’s residence, pursuant to the terms of his probation. Inside the home, the officers found a loaded 9mm pistol, various types of 9mm and .45 caliber ammunition, and drug paraphernalia. As a previously convicted felon, Garcia was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Florida Department of Corrections Probation & Parole Field Service Office, and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN) - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Man Who Allegedly Left Destructive Device at Nederland Police Department Indicted by Federal Grand JuryRead the Press Release
DENVER – David Michael Ansberry, age 64, originally from California, was indicted late yesterday by a federal grand jury in Denver, charging him in a one count indictment with Use and Attempted Use of Weapon of Mass Destruction, the U.S. Attorney’s Office and the FBI announced. Ansberry, who was arrested in Chicago, has not yet been transported to Colorado, and therefore no initial court date in Denver has yet been set (EDITOR’S NOTE: We will notify you once a court date has been set).
According to the indictment, on October 11, 2016, Ansberry, a/k/a Jessie Howard, acting without lawful authority, did knowingly use and attempt to use a weapon of mass destruction, namely a destructive device, against a person and property within the United States. If convicted, Ansberry faces any term of years or life in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI, the Boulder County Sheriff’s Office, the Nederland Police Department, and ATF. Substantial assistance was provided by the Boulder County District Attorney’s Office. Ansberry is being prosecuted by Colorado Assistant U.S. Attorney Gregory Holloway and Trial Attorney Mara Kohn with the Counter Terrorism Section of the National Security Division.
The charges contained in the Indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Man Sentenced to 25 Years in Prison for Six Convenience Store Robberies During 2015Read the Press Release
LAS VEGAS, Nev. – A Las Vegas man who pleaded guilty to robbing six convenience stores in the Las Vegas area during November and December 2015, was sentenced today to 25 years in prison and five years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Paul Daniel Loisel, 24, was sentenced this afternoon by U.S. District Judge Andrew P. Gordon. Loisel pleaded guilty on Aug. 10 to five counts of interference with commerce by robbery and one count of discharge of a firearm during and in relation to a crime of violence.
“It is simply unacceptable for persons to think they can walk into a convenience store and threaten the employees and customers with a gun in order to obtain what typically is a very small amount of cash,” said U.S. Attorney Bogden. “We will continue to assist our local authorities in their efforts to deter and end this type of violent crime by prosecuting these cases using federal laws with lengthy, mandatory penalties.”
According to the plea agreement, between Nov. 22 and Dec. 16, 2015, Loisel used a handgun to rob six convenience stores in Las Vegas. In most of the robberies, Loisel entered the stores with a .45 caliber handgun in his hand and pointed it at employees and told them he wanted to make a withdrawal or to put all the money in his bag. In one of the robberies, the defendant attempted to open the cash registers himself because the cashier was outside with her boyfriend. The boyfriend observed that the defendant was attempting to rob the business and when the defendant left the store, the boyfriend pointed a shotgun at the defendant and the defendant shot the boyfriend in the chest, critically wounding him.
Over the last five years, 106 persons have been charged federally with using firearms to commit commercial robberies in southern Nevada. Following are links to the news releases for some of those cases.
https://www.justice.gov/usao-nv/pr/las-vegas-cinched-hoodie-robber-sentenced-life-prison
https://www.justice.gov/usao-nv/pr/femal-getaway-driver-convicted-robberies-13-banks-and-stores-las-vegas-area-during-2012
https://www.justice.gov/usao-nv/pr/man-sentenced-over-14-years-prison-six-armed-robberies
https://www.justice.gov/usao-nv/pr/men-sentenced-prison-kidnapping-conspiracy-and-thefts-delivery-drivers-and-warehouses
https://www.justice.gov/usao-nv/pr/last-30-minutes-or-less-robbers-gets-16-years-prison
https://www.justice.gov/usao-nv/pr/man-sentenced-over-11-years-federal-prison-robbing-local-jewelry-store-stolen-handgun
https://www.justice.gov/usao-nv/pr/man-who-robbed-las-vegas-mini-mart-convicted-jury
This case was investigated by the FBI, Las Vegas Metropolitan Police Department, and North Las Vegas Police Department as part of the Safe Streets Task Force and Project Safe Neighborhoods program.
The case was prosecuted by Assistant U.S. Attorney Phillip N. Smith, Jr.
###
Long Island Man Gets More Than Five Years in Prison for Role in International $200 Million Credit Card Fraud ConspiracyRead the Press Release
TRENTON, N.J. – A Hicksville, New York, man was sentenced today to 63 months in prison for his role in one of the largest credit card fraud schemes ever charged by the Justice Department, U.S. Attorney Paul J. Fishman announced.
Ijaz Butt, 57, previously pleaded guilty before U.S. District Judge Anne E. Thompson to Count One of an indictment charging him with conspiracy to commit bank fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Butt was originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Since then, 19 people, including Butt, have pleaded guilty in connection with the scheme.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a phony credit profile with the major credit bureaus; pump up the credit of the false identity by providing bogus information about that identity’s creditworthiness; then borrowed or spent as much as they could without repaying the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
The scope of the criminal fraud enterprise required Butt and other conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
Butt admitted that he helped obtain credit cards in the name of third parties – many of which were fictional – then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. He also admitted they knew the cards would be used fraudulently at businesses.
In addition to the prison term, Judge Thompson sentenced Butt to three years of supervised release and fined him $3,000.
U.S. Attorney Fishman credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher in Newark; postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, Newark Division; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s sentencing. He also thanked the U.S. Social Security Administration for its assistance.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: Kenneth W. Kayser Esq., East Hanover, New Jersey