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Wednesday 2 November 2016
Little Rock Man Sentenced to Prison for Role in Stealing USDA Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced Wednesday that United States District Court Judge James M. Moody Jr., sentenced Reuben Nims, 52, of Little Rock, to prison for his role in the widespread scheme to steal money intended for feeding children in low income areas.
Judge Moody sentenced Nims, who pleaded guilty to conspiring to commit wire fraud on March 8, 2016, to 21 months’ imprisonment, to be followed by three years of supervised release. He was also ordered to pay restitution of $182,728.65.
Nims is the second defendant sentenced who was charged with involvement in a scheme to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas. Kattie Jordan was sentenced to 63 months in federal prison on March 15, 2016. Gladys Waits, Tonique Hatton, Christopher Nichols, Waymon Weeams, James Franklin, Francine Leon, Maria Nelson, Alexis Young, and Erica Warren have all pleaded guilty to conspiring to defraud USDA feeding programs and are awaiting sentencing. Jacqueline Mills, Dortha Harper, and Anthony Waits are scheduled for trial on March 27, 2017, before Judge Moody.
The USDA feeding programs in Arkansas are administered through the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding programs, and they are reimbursed for the eligible meals they serve.
Nims was a sponsor for a feeding program through his organization called "Blessed Thru Success." Nims had one approved feeding site on Rodney Parham Road in Little Rock, where he claimed as many as 300 children were fed each day. No children were ever actually fed there. Nims was recruited by Anthony Waits. Waits’ wife, Gladys Waits, worked for DHS and approved Nims’ application. Nims paid Anthony Waits approximately 50% of the $182,728.65 Nims received in the scheme.
Previous charges filed in the overall investigation detail alleged fraud involving more than $11 million in USDA feeding program funds.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service.
If you are aware of any fraudulent activity regarding feeding programs, please email that information to [email protected].
Lawrence County Man Pleads Guilty to Possessing Child PornographyRead the Press Release
PITTSBURGH - A former resident of Lawrence County, Pennsylvania pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Sean J. Barner, 38, formerly of New Bedford, Pennsylvania pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on March 28, 2015, Barner unlawfully possessed computer graphics files containing photographs and videos depicting minors engaged in sexually explicit conduct.
Judge Hornak scheduled sentencing for Feb. 22, 2017, at 9:30am. The law provides for a total sentence of 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation that led to the prosecution of Barner.
Lapwai Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
COEUR D’ALENE – Solomon Elias Wheeler, 36, of Lapwai, Idaho, was sentenced today in United States District Court to nine months in prison, to be followed by three months home confinement, for failing to register as a sex offender, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Wheeler to serve five years supervised release following his prison sentence. Wheeler pleaded guilty to the charge on August 23, 2016.
According to statements made in court, Wheeler had a 2010 Nez Perce Tribal Court conviction for having sexual contact with a minor under sixteen. As a result of this conviction, Wheeler was required to register and update his registration under the Sex Offender Registration and Notification Act (SORNA). In August 2015, Wheeler failed to complete his sex offender registration. Wheeler remained unregistered until May 2016, when he was arrested on a federal warrant. Wheeler has remained in jail since his arrest.
The case was investigated by the United States Marshals Service.
Kootenai Tribal Member SentencedRead the Press Release
COEUR D’ALENE – Nathaniel Johnson Boychief, 30, of Bonners Ferry, Idaho, was sentenced today in United States District Court to 18 months in prison followed by 3 years supervised release for possession with intent to distribute heroin and oxycodone, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Boychief to pay a $600 fine. Boychief pleaded guilty to the charge on August 23, 2016.
According to the plea agreement, Boychief admitted to possession with intent to distribute heroin and oxycodone. These controlled substances were found in a locked safe in his bedroom during the execution of a search warrant. Later, after Boychief was arrested, the officers found heroin and oxycodone pills sewn into his underwear.
The case was investigated by Kootenai Tribal Police, Bonner County Sheriff’s Department, Bonners Ferry Police Department, and Federal Bureau of Investigation (FBI).
Justice Department Sues DIRECTV for Orchestrating Information Sharing Agreements with Three CompetitorsRead the Press Release
Unlawful Information Sharing Contributed to Blackout that Deprived Many Fans of Opportunity to Watch Los Angeles Dodgers on TV for Last 3 Seasons
The Department of Justice sued DIRECTV and its corporate successor, AT&T Inc., today for acting as the ringleader of a series of unlawful information exchanges between DIRECTV and three of its competitors – Cox Communications Inc., Charter Communications Inc. and AT&T – during the companies’ negotiations to carry SportsNet LA, which holds the exclusive rights to telecast almost all live Dodgers games in the Los Angeles area.
The lawsuit, filed in the U.S. District Court for the Central District of California, alleges that DIRECTV unlawfully exchanged competitively-sensitive information with Cox, Charter and AT&T during the companies’ negotiations for the right to telecast the Dodgers Channel. Specifically, the complaint alleges that DIRECTV and each of these competitors agreed to and did exchange non-public information about their companies’ ongoing negotiations to telecast the Dodgers Channel, as well as their companies’ future plans to carry – or not carry – the channel. The complaint also alleges that the companies engaged in this conduct in order unlawfully to obtain bargaining leverage and to reduce the risk that they would lose subscribers if they decided not to carry the channel but a competitor chose to do so. The complaint further alleges that the information learned through these unlawful agreements was a material factor in the companies’ decisions not to carry the Dodgers Channel. The Dodgers Channel is still not carried by DIRECTV, Cox or AT&T.
“As the complaint explains, Dodgers fans were denied a fair competitive process when DIRECTV orchestrated a series of information exchanges with direct competitors that ultimately made consumers less likely to be able to watch their hometown team,” said Deputy Assistant Attorney General Jonathan Sallet of the Justice Department’s Antitrust Division. “Competition, not collusion, best serves consumers and that is especially true when, as with pay-television providers, consumers have only a handful of choices in the marketplace.”
DIRECTV is a subsidiary of AT&T Inc., a Delaware corporation with headquarters in Dallas. As of 2014, DIRECTV had approximately 1.25 million video subscribers in the Los Angeles area. AT&T is a Delaware corporation with headquarters located in Dallas. As of 2014, AT&T had approximately 400,000 video subscribers in the Los Angeles area.
DIRECTV ComplaintJustice Department Announces Pilot Program to Provide Military Communities Across the Country with Dedicated Legal SupportRead the Press Release
The Department of Justice today announced a new program, the Servicemembers Civil Relief Act Enforcement Support Pilot Program, to support enforcement efforts related to protecting the rights of current and former military personnel as part of the department’s Servicemembers and Veterans Initiative. The Servicemembers Civil Relief Act (SCRA) is a federal law that provides wide-ranging financial and housing protections and benefits for military members as they enter active duty.
With the support of the Executive Office for United States Attorneys and the Civil Rights Division, the new pilot program funds Assistant U.S. Attorney and trial attorney positions to assist the department’s litigating components with SCRA enforcement, and also designates military judge advocates currently serving as legal assistance attorneys to serve as Special Assistant U.S. Attorneys to support the department’s enforcement efforts related to the SCRA. U.S. Attorneys throughout the country will also be appointing Initiative Liaisons to work with local military and veteran communities.
“The men and women who bravely defend our country deserve more than just our respect – they deserve our unyielding support,” said Attorney General Loretta E. Lynch. “The pilot program we are announcing today will enhance our ability to safeguard the economic and legal rights of our servicemembers, our veterans and their families. In the days ahead, the Department of Justice will continue working tirelessly to ensure that our laws protect those who protect us.”
“Servicemembers sacrifice a lot to protect our freedom and our security, and in turn our laws protect them and their families from unscrupulous financial predators,” said Principal Deputy Associate Attorney General Bill Baer. “The SCRA Enforcement Support Pilot adds significant legal resources designed to stop these predators. Whether a servicemember has a financial or housing related issue, the Department of Justice will investigate complaints promptly and vigorously take enforcement action against wrongdoers.”
The pilot provides full-time support for SCRA enforcement efforts through the end of Fiscal Year 2018 and funds Assistant U.S. Attorneys in districts with major military installations and additional trial attorneys in the Civil Rights Division, for a terminal period. The Assistant U.S. Attorneys will principally be responsible for coordinating with Staff Judge Advocate’s Offices on military installations and bringing claims in coordination with the Civil Rights Division against those who target servicemembers.
The pilot also allows military judge advocates (JAG) who are serving as legal assistance attorneys to be designated as Special Assistant U.S. Attorneys for the purpose of assisting with SCRA litigation. The Servicemembers and Veterans Initiative will coordinate the assignment of these JAG officers with U.S. Attorney’s Offices throughout the country. U.S. Attorney’s Offices in the Western District of Washington and the Eastern District of North Carolina are the first districts adding these valuable military legal resources.
In addition to the funding, it was announced that the Servicemembers and Veterans Initiative has become a permanent component within the Office of the Associate Attorney General and will be led by Director Silas V. Darden. The department created the Servicemembers and Veterans Initiative in December 2014 with a mission to support the department in its efforts to protect those who protect us all. Please visit www.servicemembers.gov for more information about the initiative.
Jury Convicts KC Man of Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted by a federal trial jury today of illegally possessing a firearm.
Keith R. Hardin, 58, of Kansas City, was found guilty of being a felon in possession of a firearm. Hardin was in possession of a Cobra .380-caliber semi-automatic handgun on Jan. 15, 2016.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hardin has prior felony convictions for armed criminal action, stealing a motor vehicle, sodomy, robbery and burglary.
Hardin was stopped by Kansas City police officers at approximately 3:22 a.m. on Jan. 15, 2016, who saw him walking in the street near 35th Street and S. Benton Avenue. Officers arrested Hardin on outstanding warrants. While searching him during the arrest, they found a loaded Cobra .380-caliber semi-automatic handgun on his left hip.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about 15 minutes before returning the guilty verdict to U.S. Chief District Judge Greg Kays, ending a trial that began Monday, Oct. 31, 2016.
Under federal statutes, Hardin is subject to a mandatory minimum sentence of 15 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bruce A. Rhoades. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury Convicts Former Temple Police Officer of Revealing an Ongoing InvestigationRead the Press Release
This afternoon, a jury in Austin convicted 24–year-old former Temple police officer Erick French of lying the federal authorities about divulging the existence of an ongoing investigation announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher B. Combs, San Antonio Division.
Jurors convicted the Copperas Cove, TX, resident of one count of making a false statement to federal investigators. Jurors found that, on March 21, 2016, French provided false information to FBI agents in an attempt to hide the fact that he had previously sent a text message alerting an individual to an ongoing investigation being conducted by the Temple Police Department’s Special Investigations Unit. The jury acquitted French of a second false statement charge alleging that he provided false information about the matter when questioned by the FBI on March 16, 2016.
French faces up to five years in federal prison and a maximum $250,000 fine.
French, who remains on a $25,000 bond, is scheduled to be sentenced on January 20, 2017, before United States District Judge Sam Sparks.
This conviction resulted from an investigation conducted by the FBI, Drug Enforcement Administration (DEA) and the Temple Police Department.
Assistant United States Attorneys Dan Guess and Matt Harding are prosecuting this case on behalf of the Government.
Identity Thieves Arrested for Stealing Money from Bank Accounts and Filing False Tax ReturnsRead the Press Release
HOUSTON – Six people have been taken into custody following the return of a 32-count indictment alleging wire fraud and conspiracy to commit wire fraud, theft of public money and conspiracy to do so as well as aggravated identity theft, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Perrye Turner of the FBI and Special Agent in Charge D. Richard Goss of the IRS - Criminal Investigation (CI).
James Michael Curtis Johnson, 31, Donald Ray Perry, 26, Enitra Shante Pickett, 28, and D’angela Devonne Domio, 26, all of Houston; Joshua Jacquez Britton, 28, of Richmond; and Joseph Edward Johnson, 44, of Katy, were taken into custody today. They are expected to make their initial appearances before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today.
A federal grand jury returned the indictment Oct. 26, 2016, which was unsealed upon the arrests today. That indictment alleges two schemes - a conspiracy to steal money from bank accounts and a conspiracy involving the filing of false tax returns and aggravated identity theft.
James Johnson, Joseph Johnson, Pickett and Joshua Britton allegedly conspired with themselves and others to steal money from bank accounts by posing as accountholders, creating fake bank accounts online and then transferring money from victim bank accounts or home equity lines of credit. According to the indictment, these four defendants stole money before the fraud could be detected and the funds frozen.
All six are charged with conspiring to file false tax returns and claiming refunds to which they were not entitled. The indictment alleges that once the fraudulent refunds were paid, the conspirators drained the money before it could be frozen. As part of this conspiracy, the indictment also alleges they each engaged in aggravated identity theft by using victims' identification without authorization to commit these offenses.
The charges of wire fraud and conspiracy to commit wire fraud each carries a maximum penalty of 20 years in federal prison, while a conviction for theft of public money is punishable by a maximum of 10 years imprisonment. Each defendant also faces a maximum of five years in federal prison upon conviction of the conspiracy. Each conviction also carries a possible $250,000 fine.
The FBI Houston Cyber Task Force and IRS-CI conducted the investigation with the assistance of the Houston Police Department and the U.S. Postal Inspection Service. Assistant U.S. Attorney Michael Chu 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.
Hartford Man Sentenced to 28 Months in Prison for Illegally Possessing AmmunitionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARLOS SANCHEZ, 32, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 28 months of imprisonment, followed by three years of supervised release, for illegally possessing ammunition.
According to court documents and statements made in court, in September 2015, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End. The investigation, which included the use of court-authorized wiretaps and controlled purchases of heroin, crack cocaine and firearms, resulted in federal charges against approximately 30 individuals.
On eight occasions in November and December 2015, Jose “Jo Jo” Gonzalez sold crack cocaine and powder cocaine to an individual working with law enforcement. On November 16, 2015, SANCHEZ assisted Gonzalez during one of these transactions at an apartment building on Babcock Street in Hartford. Approximately 10 minutes after the transaction, SANCHEZ exited the building and drove away. Hartford Police subsequently stopped the vehicle. A search of the vehicle revealed approximately nine grams of cocaine, two loaded firearms that were lawfully registered to another occupant of the car, several rounds of additional ammunition, a handgun magazine and $1,100 in cash, including approximately $600 in funds that investigators had just used to purchase drugs from Gonzalez.
SANCHEZ has prior felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
SANCHEZ has been detained since his arrest on December 21, 2015. On June 20, 2016, he pleaded guilty to one count of possession of ammunition by a previously convicted felon.
Gonzalez also pleaded guilty and, on July 21, 2016, was sentenced to 87 months of imprisonment.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit, Shooting Task Force and South Conditions Unit have provided valuable assistance to the investigation, and the U.S. Marshals Service and Capitol Region Emergency Response Team (CREST) assisted with the arrests.
This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Members of Los Solidos attended call-ins that were held in April 2014 and August 2014.
Greenbrier County business owner pleads guilty for failing to pay employment taxesRead the Press Release
BECKLEY, W.Va. – A Greenbrier County man pleaded guilty today to a federal tax crime, announced United States Attorney Carol Casto. Brandon J. Black, 32, of Rainelle, entered his guilty plea for failing to pay employment taxes.
Black owned and operated a private security business in Lewisburg that provided services to businesses and individuals throughout West Virginia. The business initially began as Professional Security Services and then started operating as CLB Security in 2014. Black admitted that he was responsible for collecting, accounting for, and paying over to the IRS federal income taxes and Social Security and Medicare taxes that were withheld from the wages of employees. Black further admitted that between January 2010 and June 2015, he withheld over $400,000 from employee paychecks and failed to pay over the money to the IRS. He also admitted that he failed to pay over more than $230,000 to account for his share of additional taxes as an employer. Black admitted that the total tax loss for his criminal conduct is over $630,000, and he also admitted that he owes that same amount to the IRS as restitution.
Black faces up to five years in federal prison and a fine of up to $250,000 when he is sentenced on February 8, 2017.
This case was investigated by agents of the IRS – Criminal Investigation Division, the FBI, and the West Virginia Office of the Insurance Commissioner – Fraud Unit. Assistant United States Attorney Eric Bacaj is handling the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
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Former U.S. Postal Carrier Charged with Delaying and Detaining MailRead the Press Release
A former postal carrier was charged with delaying and detaining mail in Broward County.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Chris Cave, Acting Special Agent in Charge, U.S. Postal Service Office of Inspector General (USPS-OIG), made the announcement.
John Henry Caddle, Jr., 58, of Hollywood, was charged by Indictment with four counts of delaying and detaining mail, in violation of Title 18, United States Code, Section 1703(a). If convicted, Caddle faces a maximum statutory sentence of five years in prison as to each count. Caddle made his initial appearance this morning in front of U.S. Magistrate Judge Lurana S. Snow in Fort Lauderdale.
According to the court record, including the Indictment, on August 18, 2016, a witness saw Caddle dump a garbage bag into a dumpster near the defendant’s residence. The witness recovered the garbage bag from the dumpster and found that it contained deliverable mail. On August 19, 2016, postal agents found five garbage bags of deliverable mail outside Caddle’s home. On August 18 and 19, 2016, Caddle was employed as a U.S. Postal Carrier and had a duty to deliver the discarded mail.
Mr. Ferrer commended the investigative efforts of the USPS-OIG. The case is being prosecuted by Assistant United States Attorney Randy Katz.
An Indictment is merely an allegation and every defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Treasurer of Patterson Volunteer Fire Department Pleads Guilty to Fraud and Tax Charges Arising from His Embezzlement of More Than $1.1 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Shantelle P. Kitchen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service - Criminal Investigation (“IRS-CI”), William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), Thomas P. DiNapoli, New York State Comptroller, and George Beach, Superintendent, New York State Police, announced that ALBERT MELIN, the former treasurer of the Patterson Fire Department in Patterson, New York (“PFD”), pled guilty today to wire fraud and false subscription to tax returns before Magistrate Judge Judith C. McCarthy in connection with his embezzlement of more than $1.1 million from the PFD.
Manhattan U.S. Attorney Preet Bharara said: “As he admitted today, Albert Melin betrayed the trust placed in him by the Patterson Fire Department, embezzling over a million dollars of fire department funds. Melin took money that was supposed to be used for fighting fires and other department needs, and instead used it to keep his own private businesses afloat and pay his personal bills. Thanks to our law enforcement partners at IRS-CI, FBI, the State Comptroller’s Office and the State Police, Melin’s betrayal was uncovered and his million-dollar embezzlement scheme put to an end.”
Special Agent in Charge Shantelle P. Kitchen said: “The public expects that individuals who hold positions of fiscal responsibility in publicly funded organizations will be held accountable when they take what they are supposed to protect. Melin took advantage of his position as treasurer of the Patterson Fire Department, committing tax fraud in conjunction with his embezzlement. While the people of Patterson were impacted by the theft of resources from their fire department, perhaps they will find some consolation in that his scheme was uncovered, investigated, and prosecuted.”
Assistant-Director-in-Charge William F. Sweeney said: “Melin’s scheme, and other related frauds, have a devastating impact on public entities directly and the citizens they serve indirectly. The FBI is committed to working with our law enforcement partners to ensure this type of behavior ceases to exist.”
Comptroller Thomas P. DiNapoli said: “Former treasurer Albert Melin was so brash that he wrote $1.1 million in fire department checks to his chiropractic and another business to support his opulent lifestyle. Luckily, our $5.7 million investigation of nearby Mahopac Fire Department prompted the Patterson fire commissioners to examine their books and expose these thefts. I thank U.S. Attorney for the Southern District Preet Bharara, the New York State Police, the Internal Revenue Service and the Federal Bureau of Investigation for their diligent work on this case.”
State Police Superintendent George Beach said: “This arrest should serve as a reminder that those who choose to abuse their position will be held accountable for their actions. This former treasurer took money from the fire department where he was a trusted leader, then used it for personal gain. I want to thank our partners for working to put this defendant behind bars, making sure he will no longer be able to take advantage of those who put their trust in him.”
According to the allegations contained in the Information filed against MELIN and statements made in related court filings and proceedings:
MELIN was first elected treasurer of the PFD in 2013. From December 2013 to October 2015, MELIN embezzled PFD funds under his control by writing checks to the two businesses he owned, 211 Medical, P.C. (“211 Medical”) and N.A.S. Management Co., Inc. (“N.A.S.”). MELIN then deposited the checks to bank accounts held by 211 Medical or N.A.S. MELIN also charged expenses of 211 Medical and N.A.S. to the PFD’s debit card.
MELIN embezzled more than $1.1 million by writing more than 130 fraudulent checks. He used the money to support 211 Medical and N.A.S., to make payments on his home mortgage loan, and to pay personal expenses, including the costs of family vacations. MELIN failed to report this income on his personal tax return for 2014 and falsely reported some of the embezzled funds as revenue on the corporate tax return for 211 Medical in an effort to disguise its source.
MELIN, 46, of Patterson, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of subscribing to false tax returns, which carries a maximum sentence of three years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the court.
In pleading guilty, MELIN agreed to forfeit to the United States a sum of money no less than $1,151,000.
MELIN is scheduled to be sentenced by U.S. District Court Judge Nelson S. Roman on February 3, 2017.
Mr. Bharara praised the outstanding investigative work of the IRS, the FBI, the New York State Comptroller, and the New York State Police. He thanked the Putnam County District Attorney’s Office for its assistance in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
Former Suffolk County Police Chief Sentenced to 46 Months in Prison for Assault and Obstruction of JusticeRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, James Burke, the former Chief of Department for the Suffolk County Police Department (SCPD), was sentenced to 46 months in prison and three years of supervised release by United States District Judge Leonard D. Wexler. Previously, on February 26, 2016, Burke pleaded guilty to a civil rights violation and conspiracy to obstruct justice.
The civil rights violation related to Burke’s assault of a Smithtown man who had been arrested for breaking into Burke’s SCPD-issued vehicle and stealing his property on December 14, 2012. Following that assault, over almost three years, Burke and other Suffolk County law enforcement authorities took actions to obstruct the federal civil rights investigation into the assault. Burke was arrested and arraigned on December 9, 2015, and he has been in federal custody since that date.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“During his tenure as the highest ranking uniformed officer in the Suffolk County Police Department, James Burke considered himself untouchable. He abused his authority by brazenly assaulting a handcuffed prisoner, he pressured subordinates to lie to cover up his criminal acts, and he attempted to thwart the civil rights investigation into his conduct,” stated United States Attorney Capers. “With today’s sentence, Burke learned that no one is above the law and that the consequences for such egregious behavior are severe.”
FBI Assistant Director-in-Charge Sweeney stated, “Burke’s abuse of power and efforts to obstruct justice not only threatened to undermine the integrity of a federal investigation, but also the reputation of all the Suffolk County police officers who value the laws they are sworn to uphold. As evidenced by today’s sentence, Burke, and others, are reminded that this type of behavior won’t go unpunished.”
On December 14, 2012, New York State Probation Department and SCPD officers arrested probationer Christopher Loeb at his mother’s home in Smithtown, New York, for a variety of probation violations. During the arrest and search of the Loeb residence, officers discovered a cache of merchandise stolen from over a dozen vehicles, including an SCPD-issued SUV operated by Burke. Among the items taken from Burke’s SUV were his gun belt, several magazines of ammunition, a box of cigars, a humidor, and a canvas bag that contained toiletries, clothing, and other items.
Burke was permitted to enter the Loeb residence and retrieve the canvas bag and several other articles, even as the search was underway. He then drove to the SCPD’s Fourth Precinct in Smithtown where detectives had begun interrogating Loeb. Burke entered the interrogation room where Loeb was handcuffed and chained to an eyebolt fastened to the floor. Burke then punched and kicked Loeb in the head and body.
Subsequently, Burke and others pressured the detectives who witnessed the assault to conceal the event. Those efforts continued even after the FBI and the U.S. Attorney’s Office opened an investigation of the assault in 2013. In one instance, Burke summoned detectives under his command to SCPD headquarters in Yaphank, New York, to persuade the detectives to agree to a false version of events that would conceal the assault. In October 2013, one of those detectives testified falsely under oath in a state pretrial hearing in the Loeb prosecution, denying that Loeb had been assaulted.
The government’s case is being prosecuted by the Office’s Long Island Criminal Section. Assistant United States Attorneys Lara Treinis Gatz and John J. Durham are in charge of the prosecution, assisted by EDNY Investigator William Hessle.
The Defendant:
JAMES BURKE
Age: 52
Smithtown, New YorkE.D.N.Y. Docket No. 15-CR-627 (LDW)
Former Police Officer Pleads Guilty to Violating Civil Rights of Detained ManRead the Press Release
NICHOLAS HOGAN, 36, a former Tukwila and Snoqualmie Police Officer pleaded guilty today in U.S. District Court in Seattle to Deprivation of Rights Under Color of Law for an attack on a handcuffed man at a Seattle hospital, announced U.S. Attorney Annette L. Hayes. Under the terms of his plea agreement he is prohibited from seeking employment as a police officer or security guard for fifteen years. U.S. District Judge John C. Coughenour is scheduled to sentence HOGAN on January 27, 2017.
“This defendant betrayed the trust we place in police officers to use only necessary and appropriate force,” said U. S. Attorney Annette L. Hayes. “Hogan pepper-sprayed a person who was already detained in handcuffs and restraints – and said he did so simply because the man ‘got mouthy.’ Law enforcement officers are given broad powers to protect and serve the public – as most honorably do. When these powers are misused, those responsible will be held to account.”
According to the plea agreement, on May 20, 2011, HOGAN responded to a report of a fight on Pacific Highway South in Tukwila. A man was taken into custody on a misdemeanor warrant, but because of his injuries the King County Jail instructed HOGAN to take the man to Harborview. HOGAN admits in his plea agreement that the man was handcuffed and refusing to get out of the patrol car. HOGAN physically removed the man from the car and when the man grabbed HOGAN’s arm, HOGAN pulled away and repeatedly struck the man in the head with his knee.
Taking the man into the Harborview emergency room, HOGAN repeatedly shoved the man until he fell and then HOGAN dropped on top of him restraining him with a knee in his back. The man was placed on the gurney in four point restraints so that he could not move his arms or legs. While the man was in a treatment area and surrounded by a curtain, HOGAN remained alone with him. HOGAN used pepper spray on the restrained man. In the plea agreement HOGAN admits he knew that the spray was not necessary or reasonable under the circumstances.
HOGAN faces up to a year in prison and a $100,000 fine. Under the terms of the plea agreement HOGAN surrenders any law enforcement commission and agrees not to seek reinstatement of any law enforcement commission, or seek a new law enforcement commission, or seek employment in any law enforcement agency or law enforcement related employment, including, but not limited to any city, county, state, or federal policing or corrections positions, or that of a private security guard, or any position that requires the carrying of a firearm, for a period of 15 years.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Bruce Miyake for the Western District of Washington and Trial Attorenys Rose Gibson and Jared Fishman of the Civil Rights Division for the Department of Justice.
Former Napa Winemaker Charged with Mislabeling WineRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted former winemaker Jeffry Hill for mail fraud and wire fraud in connection with his operation of a Napa Valley- based wine company, announced United States Attorney Brian J. Stretch and Alcohol and Tobacco Tax and Trade Bureau (“TTB”) Assistant Administrator for Field Operations Tom Crone. The indictment was unsealed this morning.
Hill, 38, formerly of Napa, Calif., now of Clovis, Calif., ran Hill Wine Company (“HWC”). HWC was in the business of making and selling wine and wine inputs, such as pre-fermented grape juice, among other things. HWC operated a winery and tasting room in Napa County, Calif., on the Silverado Trail, and used winemaking equipment at other facilities, owned by others, in Napa County and Sonoma County, Calif. According to the indictment, Hill defrauded HWC’s customers by misrepresenting the geographic origin and grape varietal of the wine and wine products that he sold, thus causing customers to pay more than they would have otherwise, or to buy products that they would not have otherwise.
Federal regulations establish “American Viticultural Areas,” or AVAs, which are geographically delineated regions with particular wine growing characteristics. The Napa Valley AVA is one such AVA in California. Under federal regulations, wine can only be labeled as originating from a particular AVA if not less than 85% of the liquid volume of the wine is derived from grapes grown within the boundaries of the AVA. Napa Valley wine is seen as premium wine and often sells at a higher price than wine from other parts of California, and grapes grown in the Napa Valley AVA are generally more expensive than those grown in other parts of California. According to the indictment, Hill allegedly grew or purchased grapes, pre-fermented grape juice or wine grown outside of the Napa Valley then sold bulk grape juice, bulk wine, or bottled wine made from these non-Napa Valley grapes while representing these products to have been made from Napa Valley AVA grapes. Similarly, Hill allegedly misrepresented as cabernet sauvignon wine that was made from other varietals of grapes. According to the indictment, customers paid over $1,500,000 for fraudulently mislabeled wine, grape juice, or wine products.
Hill also allegedly took steps to conceal and hide his scheme to defraud. Among the things Hill allegedly did to hide his conduct was alter or create false bills of lading and other records; maintain false records of inventory so as to misstate the geographic origin or varietal of grapes, wine, or grape juice in his company’s inventory; falsely state to his company’s employees that grapes grown outside of Napa Valley were grown in Napa Valley; move grapes or wine between his company’s three facilities to obscure the origin of the grapes; and instruct employees who picked grapes to mislabel the origin and varietal of grapes that they picked. According to the indictment, Hill instructed grape growers outside of the Napa Valley AVA never to tell anyone that he, through his company, had bought grapes from them. In all, Hill has been charged in the indictment with four counts of mail fraud, in violation of 18 U.S.C. § 1341; and four counts of wire fraud, in violation of 18 U.S.C. § 1343.
Hill was arrested today in Clovis, Calif., and made his initial appearance in federal court in the Eastern District of California, in Fresno, Calif. He was released on conditions. His next appearance is scheduled to be at 9:30 a.m. on November 16, 2016, before the Honorable Laurel Beeler, United States Magistrate Judge, at 450 Golden Gate Avenue, San Francisco, Calif., for an initial appearance in the Northern District of California.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum statutory penalty for a count of violating 18 U.S.C. § 1341 or 18 U.S.C. § 1343 is twenty years’ imprisonment and $250,000 or twice the amount gained or lost as a result of the scheme. The court may also order that the defendant pay restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Benjamin Kingsley is prosecuting the case with the assistance of Denise Oki, Bridget Kilkenny, and Jessica Meegan. The prosecution is the result of an investigation by the TTB and the Internal Revenue Service-Criminal Investigation.
Former Employee of Environmental Consulting Firm Sentenced to Bank FraudRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that NAVIS FRANCES LEFEVER SABLAN, age 30, was sentenced today by Chief Judge Frances Tydingco-Gatewood of the District Court of Guam to serve eight months in federal prison, three years of supervised release, and ordered to pay $25,145.65 in restitution and a $100 special assessment fee. Defendant SABLAN pled guilty on November 17, 2015, to Bank Fraud in violation of Title 18, United States Code, Section 1344.
SABLAN admitted that from February 2014 to December 2014, she embezzled over $25,000 from her employer Allied Pacific Environmental Consulting (APEC). APEC hired her as its bookkeeper and she was responsible for preparing checks drawn on the company’s checking accounts maintained at First Hawaiian Bank. SABLAN forged the signatures of the company owner and other authorized personnel on 42 company checks that totaled $25,645.65. She wrote payroll checks for herself and checks ostensibly for petty cash, and used the stolen funds for her personal benefit.
Alicia A.G. Limtiaco stated, “The U.S. Attorney’s Office and its law enforcement partners are committed to investigating and prosecuting individuals who victimize and perpetrate fraud against members of our community, including businesses and financial institutions.”
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Marivic David.
Former Correctional Officer Sentenced for Smuggling Drugs into Federal PrisonRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Columbia, South Carolina---- Acting United States Attorney Beth Drake stated today that Anthony Jermaine Creech, age 39, of Varnville, SC, was sentenced in federal court in Charleston, South Carolina, for providing marijuana to inmates at Estill Federal Correction Institution (FCI). United States District Judge Richard M. Gergel of Charleston sentenced Creech to six months imprisonment to be followed by six months home confinement and one year of supervised release.
Evidence presented at the change of plea hearing established that on January 8, 2015, Creech, while working as a correctional officer at Estill F.C.I., delivered one ounce of marijuana to an inmate at the prison. When confronted by authorities, Creech admitted to smuggling in marijuana and other contraband to inmates in exchange for money.
The case was investigated by agents of the Federal Bureau of Investigation and the Department of Justice Office of the Inspector General. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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Five More Individuals Indicted for Their Roles in Capacitors Price-Fixing ConspiracyRead the Press Release
Grand Jury Has Now Indicted Six Individuals in Worldwide Conspiracy
A federal grand jury returned a superseding indictment today charging a total of six executives from four different companies for conspiring to fix prices of electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today.
The indictment, filed in U.S. District Court in San Francisco, charges the following individuals for conspiring to suppress and eliminate competition by fixing the prices of electrolytic capacitors:
- Tomohide Date, an executive of NEC TOKIN, who is charged with conspiring from in or about November 2001 until in or about December 2011;
- Satoru Miyashita, an executive of Company C, who is charged with conspiring from in or about January 2003 until in or about September 2012;
- Yasutoshi Ohno, an executive of Company A, who is charged with conspiring from in or about April 2000 until in or about September 2012;
- Masanobu Shiozaki, an executive of Company B, who is charged with conspiring from in or about November 2001 until in or about December 2011;
- Kiyoaki Shirotori, also an executive of Company C, who is charged with conspiring from in or about April 2006 until in or about December 2011; and
- Takuro Isawa, a former employee of Company A, who is charged with conspiring from in or about August 2002 until at least March 18, 2010. Isawa was previously indicted by a federal grand jury on March 12, 2015.
“The Antitrust Division will not hesitate to charge foreign nationals who participate in conspiracies that cheat American consumers,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “These executives participated in a long-running conspiracy to fix the prices of electrolytic capacitors, which are necessary components in scores of electronic products purchased by American consumers.”
Electrolytic capacitors store and regulate electrical current in a variety of electronic products, including computers, televisions, car engine and airbag systems, home appliances and office equipment.
The division has charged a total of five companies and six individuals for their participation in the same worldwide conspiracy. NEC TOKIN Corporation and Hitachi Chemical Co. previously pleaded guilty and paid criminal fines of $13.8 million and $3.8 million, respectively. On August 22, the division also filed informations charging Rubycon Corporation, Elna Co. Ltd. and Holy Stone Holdings Co. Ltd. with participating in the conspiracy. All five companies are cooperating with the division’s ongoing investigation.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The charges today result from an ongoing federal antitrust investigation being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office into price fixing, bid rigging and other anticompetitive conduct in the capacitor industry. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the capacitors industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at 415-553-7400.
Superseding Indictment
Federal Jury Convicts El Paso Duo for an Estimated $2 Million Ponzi SchemeRead the Press Release
Two El Paso men face federal prison terms and restitution after a jury convicted them today of carrying out an estimated $2 million Ponzi scheme announced United States Attorney Richard L. Durbin, Jr.; Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division; and, Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas Lindquist, El Paso Division.
Jurors convicted 59–year-old Clarence Counterman, owner of an income tax return preparation business known as Taxrite, and 52–year-old Robert Loya of one count of conspiracy to commit wire fraud. Jurors also convicted Counterman and Loya of 14 and 13 substantive counts, respectively, of wire fraud. Jurors acquitted Loya of two substantive wire fraud charges; Counterman, one substantive wire fraud charge.
Evidence presented during trial revealed that from December 2008 to October 2013, the defendants conspired to convince others, including Counterman’s tax preparation clients, into investing into their solar energy related companies, including Renewable Energy Consultant, Inc. (Nevada); EP Solar Technologies, Inc. (Nevada); LITTCE, Inc. (Texas); and, Eco Global Corporation (Texas) by promising high rates of return. Contrary to the agreements with the victim investors, a significant amount of money was converted for personal use by Counterman, Loya and a third defendant, 54-year-old Leopoldo Parra of El Paso. The defendants also paid some returns to earlier investors from monies paid in by newer investors rather than from profits earned by these companies in an effort to avoid detection of their scheme and to lull investors into a false sense of security. Testimony during trial revealed that more than 50 investors lost more than a combined $2.1 million as a result of the defendants’ fraudulent scheme.
Counterman and Loya face up to 20 years in federal prison for each count of conviction and restitution to their victims. Both remain on bond pending sentencing scheduled for February 2, 2017, before United States District Judge David Briones.
Parra, who pleaded guilty to the conspiracy charge and one substantive wire fraud charge on August 10, 2016, faces up to 20 years in federal prison for each charge. Parra is scheduled for sentencing on November 30, 2016, before Judge Briones.
This conviction resulted from an investigation conducted by HSI and FBI. Assistant United States Attorneys Steve Spitzer and Chris Skillern are prosecuting this case on behalf of the Government.
Federal Grand Jury Indicts Dallas Man for Making False Statements and Providing False Testimony Under Oath in his Bankruptcy CaseRead the Press Release
DALLAS — A federal grand jury in Dallas returned a seven-count indictment yesterday charging Gary Michael Beach of Dallas with various offenses stemming from his filing a petition for voluntary bankruptcy in early December 2011, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the indictment charges Beach, 65, with five counts of making false statements under penalty of perjury and two counts of providing false testimony under oath. If convicted, each count charged in the indictment carries a maximum statutory penalty of five years in federal prison and a $250,000 fine.
Beach is scheduled to make his initial appearance in federal court Friday afternoon, before U.S. Magistrate Judge Irma C. Ramirez, at 1:00 p.m.
According to the indictment, Beach filed a petition for voluntary bankruptcy in the Northern District of Texas on December 2, 2011.
On approximately September 13, 2010, Beach, Beach’s father, and Beach’s son formed the Beach 2010 Trust. From approximately December 2009 through July 2011, Beach received approximately $177,500 from the Beach 2010 Trust and two other family trusts. On August 29, 2011, a final civil judgment in Harris County, Texas, was entered against Beach personally that required him to pay an award of $812,000 plus post-judgment interest.
On November 29, 2011, Beach and his co-trustee son caused the Beach 2010 Trust to spend $857,500 of Beach 2010 Trust funds to purchase property (Beach’s personal residence) on Beverly Drive in Dallas. Then, from December 13, 2011, through April 30, 2012, Beach and his son caused the Beach 2010 Trust to spend an additional $35,901 for renovation work on the residence, bringing the total spent on the residence to approximately $893,401.
In late October 2009, Black Horse Resources, LLC was formed; it was owned/managed by Beach’s brother-in-law. On April 1, 2011, Black Horse entered into a partnership agreement with the Beach 2010 Trust, and on June 29, 2011, Beach caused the Beach 2010 Trust to assign its interest in the partnership agreement to the newly-formed Beach Petroleum, LLC. Beach caused the “Articles of Organization” for Beach Petroleum to be filed with the Nevada Secretary of State’s office.
From approximately April 2011 through at least May 23, 2012, Beach fraudulently concealed from the bankruptcy court, the United States Trustee, and creditors his connection to Beach Petroleum and his receipt of Black Horse consulting fees through Beach Petroleum. From April 2011 through May 3, 2012, Beach received a total of approximately $210,000 from Black Horse – all paid directly to Beach or indirectly to Beach through Beach Petroleum.
The five false statement counts charged relate to documents Beach submitted in his bankruptcy case in which he fraudulently concealed material information concerning income received that he knew he was legally obligated to disclose. The two false testimony under oath counts allege that Beach falsely testified under oath when he continued to conceal these consulting fees at his creditors’ hearing in January 2012, and again at his bankruptcy deposition in April 2012.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Beach is the 21st defendant to have been charged as part of that initiative; 16 have been convicted, one resulted in a mistrial, and four are pending trial.
The U.S. Postal Inspection Service is investigating the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Eight Sentenced in Interstate Human Trafficking ConspiracyRead the Press Release
PANAMA CITY, FLORIDA – Eight defendants, all of whom resided illegally in the United States, have been sentenced in an interstate human trafficking case. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The defendants and sentences are:
- Edegardo Osorno Rodriguez, 38, Santa Rosa Beach, Florida, 60 months in prison;
- Mauro Gonzalez-Lira, 25, McComb, Mississippi, 60 months in prison;
- Jose Juan Ruiz Prudencio, 41, Montgomery, Alabama, 48 months in prison;
- Romon Tobon, 46, Starkville, Mississippi, 42 months in prison;
- Antonio Flores-Esparza, 32, Pensacola, Florida, 24 months in prison;
- Jose Alvaro Trujillo-Santiz, 46, Panama City Beach, Florida, 18 months in prison;
- Emerson Corvera, 21, Montgomery, Alabama, 9 months in prison; and
- Rosa Mirtha Cruz Vidal, 35, Santa Rosa Beach, Florida, 8.5 months in prison.
Between February and May 2016, seven defendants pled guilty to engaging in a conspiracy during 2014 and 2015, to transport, harbor, and market undocumented female immigrants for prostitution in Florida, Alabama, Mississippi, and Louisiana. Thereafter, the defendants wired the prostitution proceeds outside the United States.
In addition to conspiracy, the following defendants also pled guilty to:
- Enticing individuals to travel in interstate commerce to engage in prostitution
(Rodriguez, Flores-Esparza, Gonzalez-Lira, and Prudencio);
- Transporting individuals in interstate commerce to engage in prostitution
(Rodriguez, Flores-Esparza, Prudencio, Tobon, and Corvera); and
- Illegal entry by a deported alien (Tobon).
In May 2016, Cruz Vidal pled guilty to fraud and misuse of a falsely made permanent resident alien card.
Upon completion of their sentences, each defendant will be turned over to the Department of Homeland Security for deportation. Cruz Vidal has already been deported from the United States. Lazaro Juarez-Juarez, 34, of Atlanta, Georgia, who was also indicted in this case, has not been apprehended.
United States Attorney Canova stated, “Combatting human trafficking is a priority of the Department of Justice and my office, and the trafficking of women for commercial sex is a significant part of the human trafficking problem that our country faces. In this particular case, dozens of women were brought into the United States illegally and exploited by the defendants to engage in prostitution in several states for the defendants’ profit. This office will continue to partner with our federal, state, and local law enforcement agencies to investigate and vigorously prosecute the trafficking of vulnerable victims for sex.”
“Human trafficking is a violation of its victims’ civil rights, and infringes upon the protected liberties guaranteed to all Americans,” said Charles P. Spencer, Special Agent in Charge of the FBI’s Jacksonville Division. “This type of illegal activity demonstrates a very real risk to our local communities, and stopping it remains one of the highest criminal investigative priorities for the FBI.”
“Human trafficking is an abomination, and this criminal organization has devastated the lives of so many women,” said Susan L. McCormick, special agent in charge of HSI Tampa. “These sentencings are the result of the hard work of our special agents and show the importance HSI places on investigating human trafficking crimes.”
This case resulted from a 15-month investigation into human trafficking activities in the Northern District of Florida by the Federal Bureau of Investigation and the United States Immigration and Customs Enforcement Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Stephen M. Kunz. It is a follow-up prosecution to a previous kidnapping case prosecuted in federal court in Panama City.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]East St. Louis Man Pleads Guilty to Kidnapping ChargesRead the Press Release
St. Louis, MO – Damarcus Boyd, aka Mez, pled guilty to charges involving a September 2015 kidnapping.
According to court documents, in September 2015, co-defendant Ortega Mitchell, aka Munk Milano, and the victim agreed that the victim would travel to St. Louis from San Diego, California, in connection with a marijuana transaction. Unknown to the victim, Mitchell, Boyd and co-defendant Darius Rose planned to kidnap the victim and hold him for ransom.
On September 25, the victim flew from San Diego, California, to St. Louis where he was picked up by Boyd and Mitchell and taken to a house in Illinois. When they entered the house, the victim was confronted by Rose with an assault rifle. Rose threatened to blow the victim’s brains out and ordered him onto the floor. The kidnappers rifled through the victim’s pockets and took his cell phone and wallet. Boyd bound the victim’s hands and feet with duct tape, and the kidnappers kept him captive in a bedroom of the house.
On September 26, Rose made various ransom calls to the victim’s father demanding $100,000 and marijuana. Rose, sometimes accompanied by Boyd, left the house in Illinois and traveled to the Glenfield Apartments in Overland, Missouri, to make the ransom calls. The victim’s family contacted law enforcement, and the Federal Bureau of Investigation (FBI) became involved.
Finally, on September 30, Rose, Mitchell and Boyd drove the victim from Illinois to the area of Columbia and Hampton in the City of St. Louis. The kidnappers told the victim to get out of the vehicle and drove away, leaving the victim in the street. The victim walked to a nearby gas station and called his father to inform him he had been freed.
Boyd, East St. Louis, Illinois, pled guilty to one count of conspiracy to kidnap before United States District Ronnie L. White. Sentencing has been set for February 8, 2017.
Co-defendant Ortega Mitchell pled guilty to the same charge in October and awaits sentencing. Co-defendant Darius Rose is awaiting trial.
The conspiracy charge carries a maximum penalty of life in prison. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Cristian M. Stevens is handling the case for the U.S. Attorney’s Office.
The charges set forth in an indictment are merely accusations, and defendant Rose is presumed innocent until and unless proven guilty.
Danbury Resident Sentenced to Prison for Stealing from InvestorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALEXANDER BERGEN, 23, of Danbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 24 months of imprisonment, followed by three years of supervised release, for stealing more than $280,000 from individuals who invested in his internet business.
According to court documents and statements made in court, BERGEN operated CT Wholesale, a company that sold electronic equipment and other items by buying the product for a cheaper price and then reselling those products to the customer at a higher price. Beginning in approximately 2013, BERGEN began to accept investment funds from investors who were promised a return on their investments. BERGEN represented to the investors that he would use their investment funds solely to purchase products for resale to his customers and that the investors would receive their principal investment back with a profit in a specified period of time. In some cases, BERGEN entered into written investment agreements with investors in which he expressly represented that the investment funds provided by the investor would be used solely to purchase products.
BERGEN received a total of more than $300,000 from approximately 10 investors. Despite representing to the investors that all of their funds would be used solely to purchase products for resale by CT Wholesale, BERGEN did not use these funds solely to purchase products. In 2013, BERGEN used approximately $150,000 of the investors’ money to pay for his personal credit card bills which included personal expenses for fine dining, travel, and to shop at high-end retail stores.
BERGEN returned less than $40,000 in funds to his investors.
Judge Bryant ordered BERGEN to pay restitution in the amount of $282,609.71.
On August 3, 2015, BERGEN pleaded guilty to one count of interstate transportation of money obtained by fraud. He has been detained since March 7, 2016, after he violated the conditions of his release pending sentencing and his bond was revoked.
This matter was investigated by the Federal Bureau of Investigation, with the assistance of the Bethel and Greenwich Police Departments. The case was prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Creator of Software to Facilitate Privacy Invasion and Online Extortion Sentenced to Federal Prison for Conspiracy to Commit Computer FraudRead the Press Release
DENVER – Brandon Bourret, age 41, of Colorado Springs, Colorado, was sentenced yesterday by U.S. District Court Judge Wiley Y. Daniel to serve 29 months in federal prison, followed by 3 years on supervised release after previously pleading guilty to conspiracy to commit computer fraud and abuse, access device fraud, identification document fraud and wire fraud, the U.S. Attorney’s Office and the Denver Division of the FBI announced. Further, the Judge ordered the forfeiture of $49,153 cash plus a substantial amount of computer equipment. Bourret, who appeared at the sentencing hearing free on bond, was ordered to report to a Bureau of Prisons facility within 15 days of designation.
Co-defendant Athanasios Andrianakis previously was sentenced to serve 5 years on probation with the first 15 months in house confinement. While in house confinement Andrianakis is to work for no pay for the victim, Photobucket, as in-kind restitution. Further, Andrianakis was ordered to work 150 hours of community service. He also paid $35,000 to Photobucket, and forfeited cash proceeds of $14,962.22 plus a substantial amount of computer equipment.
Bourret and co-defendant Andrianakis were charged and arrested after breaching the computer services of Colorado-based Photobucket, a company that operates an image and video hosting website. According to court documents, including the stipulated facts contained in the plea agreement, in 2008 Bourret began selling a software application called “PhotoFucket.” The purpose of PhotoFucket was to allow its users to gain access illegally to the private or password protected photo albums of Photobucket’s customers without those customers’ knowledge or consent. As its name suggests, PhotoFucket’s users were primarily interested in finding and stealing nude or sexually-explicit images from those private and password protected albums.
Between July 12, 2012 and August 2, 2013, in response to increased security at Photobucket, Bourret and his co-defendant conspired to find and sell sophisticated ways to continue penetrating the password protections despite Photobucket’s attempts to block the intrusions. The co-conspirators also discussed ways to increase PhotoFucket sales and distribute money from the enterprise among the co-conspirators. Bourret promoted PhotoFucket on his websites, Photofucket.com and PhatThumbs.Photofucket.com, and he published private images that he illegally obtained on the PhatThumbs website.
Bourret also found a way to connect registration email addresses to stolen private images, and he sold those email addresses to PhotoFucket customers knowing that this posed a substantial risk of facilitating online extortion. He dismissed this risk in the interest of profits, saying in one email “I decided to go a little crazy and let PF output an email address for every rip it does . . . It’s better to burn out than to fade away.” Victims of the PhotoFucket scheme reported being extorted and harassed online with their private images.
On July 1, 2014, a search warrant was executed at Bourret’s residence in Colorado Springs, where he hosted the PhotoFucket.com website on a server in his bedroom. Over 9 terabytes of illicit data were seized from that server and the other storage devices recovered in Bourret’s house. Agents determined that the defendant recorded 18,557 instances of his targeting accounts with the PhotoFucket application, and he possessed at least 722 passwords that were associated with other Photobucket.com accountholders.
Photobucket first became aware of the PhotoFucket application in 2013. It immediately contacted the FBI and worked aggressively with law enforcement to fix the exploits, strengthen the security of their product, and bring the two individuals responsible for the violations to justice. The conspiracy ended and PhotoFucket was no longer capable of accessing private Photobucket.com content after July 31, 2013.
Victims of the breach were previously contacted by the government and Photobucket through email messages to their Photobucket.com registration email addresses. None of those victims submitted a restitution request to the court. However, to address the interests raised by some of those victims, the government and the co-defendants, with the assistance of Photobucket, entered into Consent Agreements that created a victims’ assistance fund. The fund is available for identified victims – ie, those who previously received a notification – to obtain services to mitigate the impact of the public disclosure of their private images. These services are to be paid for by the co-defendants according to the terms of the Consent Agreements. More information about the victims’ assistance fund can be found on the U.S. Department of Justice website at http://www.justice.gov/usao-co/photobucket-case.
“Bourret and Andrianakis enriched themselves by preying on people who believed their personal pictures of loved ones and private moments were safe and secure,” said FBI Acting Special Agent in Charge Calvin Shivers, of the Denver Division. “The FBI’s Denver Cyber Task Force investigated the network intrusion perpetrated by the men, who accessed victim accounts without authorization. We thank our law enforcement partners and the US Attorney’s Office for helping bring them to justice.”
This investigation was conducted by the Denver Division of the FBI. This case is being prosecuted by Assistant U.S. Attorney David Tonini.
Columbus Man Pleads Guilty to Dog-Fighting ConspiracyRead the Press Release
COLUMBUS, Ohio – Charles A. Granberry, 40, of Columbus pleaded guilty in U.S. District Court to conspiring to participate in a dog-fighting ring in central Ohio, and to illegally possessing a firearm.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Anthony Mohatt, Special Agent in Charge, Midwest Region, U.S. Department of Agriculture Office of Inspector General, Columbus Police Chief Kim Jacobs, Franklin County Prosecuting Attorney Ron O’Brien, and Capital Area Humane Society Executive Director Rachel D.K. Finney announced the plea entered today before U.S. Magistrate Judge Kimberly A. Jolson.
According to court documents, an undercover law enforcement officer met with Granberry and others over a two-week period at two houses in Columbus in March 2016. The officer saw evidence indicating that the house was used to train, fight and sell dogs, including at least 20 fighting dogs in the rear yard of one house that were chained to heavy automobile axles buried in the ground.
Officers executed search warrants on April 5, 2016 at five Columbus houses. Agents seized evidence including more than 40 dogs along with cages, treadmills, heavy chains and collars and other items. Agents found canine blood on the floor and walls of the basement of one home indicating that the area was used as a dog fighting pit. Officers arrested Granberry and seized firearms and documents connected to the dog fighting operation. Granberry has been in custody since his arrest.
Conspiracy is punishable by up to five years in prison and a fine of up to $250,000. Granberry is charged with being a felon in possession of a firearm, punishable by up to ten years in prison and a $250,000 fine. U.S. District Judge James L. Graham will schedule a hearing to sentence Granberry.
U.S. Attorney Glassman commended the ongoing investigation by the USDA-OIG, Columbus Police and the Humane Society, as well as Assistant U.S. Attorneys J. Michael Marous and Jessica Knight, and Franklin County Assistant Prosecutor Heather Robinson, who are representing the United States in this case.
Chicago Man Charged with Sex Trafficking for Engaging in Prostitution with a MinorRead the Press Release
CHICAGO — A criminal complaint unsealed in federal court today charges a Chicago man with sex trafficking for allegedly engaging in paid sexual acts with an underage girl.
WILLIAM WHITLEY paid the minor to engage in sex acts with him on multiple occasions last year, according to the complaint. Whitley paid the girl between $60 and $150 for each of the sexual encounters, the complaint states. Whitley also took nude photographs of the girl and sent the pictures to her via text message, the complaint states.
Whitley, 60, was arrested Tuesday afternoon. He made an initial appearance today before U.S. Magistrate Judge Maria Valdez, who ordered him to remain in federal custody. Judge Valdez scheduled a detention hearing for Nov. 7, 2016, at 11:00 a.m.
The two-count complaint charges Whitley with sex trafficking and production of child pornography.
The complaint was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation. The Carol Stream Police Department assisted in the investigation.
The government is represented by Assistant U.S. Attorneys Sarah Streicker, Elizabeth Pozolo and Michelle Petersen.
According to the charges, a woman identified in the complaint as “Individual A” introduced the girl to Whitley. The victim was 14 years old when Whitley paid her to engage in sex acts with him, according to the complaint.
The complaint also describes how Individual A introduced another female victim to Whitley. This other victim was 16 years old when she encountered Whitley at a party hosted by Individual A, according to the complaint. Individual A’s party was attended by older men and young runaway girls, the complaint states. Whitley paid the 16-year-old girl to engage in sex acts, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The sex trafficking count is punishable by a statutory minimum sentence of ten years in prison, and a maximum of life. Production of child pornography carries a minimum sentence of 15 years, and a maximum of 30 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678. The hotline is available 24 hours a day, 7 days a week.
Charter School Administrator Pleads Guilty to Federal Program TheftRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Sean Moore, age 43, of New Castle, Del., pleaded guilty to three counts of federal program theft before U.S. District Judge Richard G. Andrews. Moore is scheduled to be sentenced on March 2, 2017.
According to court records and statements made in open court, between July 1, 2011 and January 31, 2015, while serving as the Director of Finance and Operations for the Family Foundations Academy, a charter school in New Castle, Del., Moore embezzled $161,871 from the school.
Moore accomplished this embezzlement in a number of ways. First, Moore charged personal expenses to an unauthorized credit card he opened in the name of the school. Moore also abused the State of Delaware’s voucher program, by which charter schools are permitted to submit qualified expenses for reimbursement, and the State of Delaware’s procurement card system, by which the State of Delaware issues credit cards to charter school administrators to purchase necessary school supplies. In addition, Moore stole money from the school’s fundraising account, which consisted of money collected from parents of school students, local sponsors, and an after-school program. Moore also took money from the school’s construction loan account.
Moore used the embezzled money for personal expenses such as retail purchases, home improvement purchases, electronics, auto loan payments, auto services and accessories, federal tax payments, groceries, entertainment, food, gas, travel, gifts and collectibles, shoes, hotels, jewelry, train tickets, and video games.
During this time, the Family Foundations Academy received significant federal funding, which provides the basis for the federal program theft charges. The maximum penalty for each count is ten years in prison followed by a three years of supervised release and a fine of $250,000.
This case is the result of an investigation conducted by the Federal Bureau of Investigation, the U.S. Department of Education – Office of the Inspector General, and the Delaware Attorney General’s Office, with assistance from the Delaware Office of Auditor of Accounts. Assistant U.S. Attorney Elizabeth L. Van Pelt is prosecuting the case on behalf of the United States.
Charlotte Identity Thief Sent to Prison for 75 MonthsRead the Press Release
NEW BERN - United States Attorney John Stuart Bruce announced that today in federal court United States District Judge Louise W. Flanagan sentenced MAURICE ANTHONY DRUMMOND, 30, of Charlotte, to serve a total of 75 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft and Conspiracy to Commit Access Device Fraud. DRUMMOND was also ordered to make restitution of $86,691.56 to his victims, and to forfeit certain equipment used in the scheme.
At sentencing the Government argued that the defendant was involved in a scheme from 2013 to 2016 to obtain and use stolen credit card information to facilitate a scheme to acquire and sell large quantities of diesel fuel for resale. After acquiring stolen credit card information, DRUMMOND encoded the information onto used gift and credit cards. DRUMMOND then took the cards to various gas stations located throughout North Carolina, where he would use them to make large fuel purchases. DRUMMOND pumped the fuel into large storage containers held under a shell on the back of pickup trucks. DRUMMOND later resold the fuel at truck stops and other locations for a profit.
In 2014, DRUMMOND was captured by local authorities in Granville County in possession of hundreds of stolen credit cards and a machine used for re-encoding such cards. DRUMMOND was captured again in 2015 by local authorities in Charlotte as he continued to carry out the scheme while on release from state custody.
DRUMMOND pleaded guilty on March 16, 2016 to Conspiracy to Commit Access Device Fraud and Aggravated Identity Theft.
Investigation of DRUMMOND’s case was conducted by the United States Secret Service, with the assistance of the Granville County Sheriff’s Office, and the Gastonia Police Department. Assistant United States Attorney William M. Gilmore represented the United States.
Catonsville Man Charged with Making Threats by Telephone and EmailRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Stephen Charles Williams-Hill, age 32, of Catonsville, Maryland, today for allegedly using a telephone and emails to threaten to kill, intimidate, or injure the victims and their residence by means of an explosive, and communicating in interstate commerce, a threat to kidnap or injure another person.
The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Commissioner Kevin Davis of the Baltimore Police Department, as part of the FBI Joint Violent Crimes Task Force; and Chief Chris Magnus of the Tucson Police Department.
According to the affidavit, from July through October 2016, Williams-Hill, using the name Gio Calle, made numerous threats to the victim and her family. The affidavit alleges that Williams-Hill called, emailed and left messages, for the victim, her mother and her sibling. In those calls and emails Williams-Hill allegedly threatened to blow up the building where the mother worked, blow up the family’s residence, kill, maim and torture the victim and the members her family. Williams-Hill claimed to have a semiautomatic weapon, that he threatened to use to kill the family and individuals at the mother’s work place. According to the affidavit, on several occasions Williams-Hill stated that he’d been wanting to kill someone since he was six years old.
If convicted, Williams-Hill faces a maximum sentence of 10 years in prison for using a telephone and emails to threaten to kill, intimidate, or injure the victims and their residence by means of an explosive; and a maximum of five years in prison for communicating in interstate commerce, a threat to kidnap or injure another person. Williams-Hill had an initial appearance this afternoon in U.S. District Court in Baltimore and was detained pending a detention hearing scheduled for November 3, 2016 at 2:00 p.m.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and Baltimore County Police Departments and the Tucson, Arizona Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney John W. Sippel, Jr. who is prosecuting the case.
Businessman Pleads Guilty to Role in Health Benefit Plans SchemeRead the Press Release
In San Antonio, Samuel Mullen, former Chief Financial Officer of the Mullen Pension & Benefits Group, LLC. (Mullen Group), pleaded guilty to a federal conspiracy charge for his role in a bribery and kickback scheme which victimized several local school districts, a municipality, and their constituents regarding health care benefit plans announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs.
Appearing before United States Magistrate Judge John W. Primomo yesterday afternoon, the Mission, TX, resident pleaded guilty to one count of conspiracy to commit honest services wire fraud. By pleading guilty, Mullen admitted that from March 2007 until June 2014, he and others devised a scheme to defraud various school districts and the Bexar Metropolitan Water District (BexarMet) through the use of bribes, kickbacks and concealment of material information. According to court records, the defendant, and the Mullen Group, were in competition with other business entities to provide health insurance benefit plans and products to local school districts and municipalities. Those entities included San Antonio ISD, Edgewood ISD, South San Antonio ISD and BexarMet. Mullen, admittedly, paid an independent consultant hired by the school districts and BexarMet over $80,000 for help in securing contracts with those entities on behalf of insurance companies with whom the Mullen Group had a financial interest. By providing bribes and kickbacks which allowed the Mullen Group to corruptly obtain insurance contracts, the defendant personally profited by receiving commissions on those insurance contracts.
Mullen faces up to five years in federal prison. He remains on bond pending sentencing scheduled for January 25, 2017, before U.S. District Judge Xavier Rodriguez in San Antonio.
This investigation is being conducted by the Federal Bureau of Investigation (FBI). Assistant United States Attorneys Mark Roomberg and Joseph Blackwell are prosecuting this case on behalf of the government.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Franklin Richards, 34, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine, was sentenced to 130 months in prison by U.S. District Judge Lawrence J. Vilardo.
According to Assistant U.S. Attorney George C. Burgasser, who handled the case, between July 2011 and March 2012, Franklin Richards supplied cocaine to the LRGP Gang which operates in the area of Lombard, Rother, Gibson and Playter Streets. The defendant purchased cocaine for redistribution from co-defendant Earl Brown.
On one occasion, co-conspirator Wilfred Wylie, who was traveling to Houston, Texas to purchase cocaine from Earl Brown for Franklin Richards, was searched by security at the Buffalo Niagara International Airport and found with $112,000 in U.S. currency, money he was going to use to pay for the cocaine. On other occasions, Richards used a variety of methods to transport cocaine from Houston, Texas to Buffalo. Once he received the cocaine, Richards would repackage it for distribution in the Buffalo area.
Co-defendants Brown and Wylie have been convicted. Wylie was sentenced, Brown is awaiting sentencing.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen.
Buffalo Man Sentenced on Cocaine 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 Nelson Pacheco, 44, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine, was sentenced to 108 months by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that between December 2010 and April 4, 2011, the defendant conspired with co-defendant Dennis Berard to distribute cocaine in the Buffalo area. On June 30, 2011, law enforcement officers executed a search warrant at Pacheco’s residence and recovered three handguns, ammunition and approximately $18,000 in cash. Dennis Berard was convicted and sentenced.
The sentencing is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, Border Enforcement Security Task Force, under the direction of Special Agent-in-Charge James C. Spero, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, and the Niagara County Sheriff's Department, under the direction of Sheriff James Voutour.
Buffalo Man Sentenced for Conspiracy to Commit ArsonRead 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 Christopher Gorman, 51, of Buffalo, NY, who was convicted of conspiracy to damage a building used in an activity affecting interstate commerce by means of fire and an explosive, was sentenced to 41 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on the night of June 12, 2014, Gorman had been drinking with Lowell Carey and Ryan Smolinski at Carey’s house. Smolinski was upset that his father was losing his business, Western New York Property Contractors, located at 349 Ontario Street, in Buffalo which he co-owned with another individual. Smolinski asked Carey and Gorman if they would help him burn the building. They agreed and made two Molotov cocktails using beer bottles they had been drinking from and gasoline and a t-shirt as a wick.
Thereafter, in the early morning hours of June 13, 2014, Gorman, Smolinski, and Carey proceeded to Western New York Property Contractors where Carey lit and threw one of the Molotov cocktails onto the roof of the building. Smolinski lit and placed the other Molotov cocktail underneath a garage door on the side of the building with Gorman’s assistance. The outside of the building was burned in the areas where the Molotov cocktails were located resulting in approximately $2,207.89 in damages.
Carey and Smolinski were previously convicted and sentenced.
The sentencing is the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Special Agent in Charge Ashan Benedict, New York Field Division, and the Buffalo Fire Department under the direction of Commissioner Garnell W. Whitfield, Jr.
Berwick Man Charged with Heroin TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury in Scranton charged Edwin Vaquiz, age 27, a resident of Berwick, Pennsylvania, on October 25, 2016, with distribution and possession with intent to distribute heroin.
The indictment was unsealed yesterday following the arrest of Vaquiz in Berwick. Vaquiz was arraigned before United States Magistrate Judge Karoline Mehalchick and was ordered detained.
According to United States Attorney Bruce D. Brandler, the indictment charges Vaquiz with distributing heroin on January 22, 2016 and possession with intent to distribute over sixty grams (equivalent of approximately 1,800 retail bags) of heroin on January 29, 2016, in the Berwick area.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Berwick Police Department. The case is being prosecuted by Assistant United States Attorney Sean A. Camoni.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Bass Pro Shops Firearms Thieves Plead GuiltyRead the Press Release
United States Attorney G.F. “Pete” Peterman, III, of the Middle District of Georgia announces that on October 31, 2016, Dante Thomas, 32, of Atlanta, Georgia entered a guilty plea to Conspiracy to Commit Theft from a Federal Firearms Licensee. Co-defendant Jabari Walters, 23, of East Point, Georgia, entered a plea to the same charge on September 12, 2016 as did co-defendants Tabari Walters, 23, of East Point, Georgia, and Kenneth Atwater, 34, of McDonough, Georgia, on October 27, 2016.
Through their pleas, these men admitted that on September 29, 2013, after discussing the idea of stealing firearms, they drove to the Bass Pro Shops in Macon, Georgia and parked along the side of Interstate 75 northbound, in the proximity of the business. All four men ran up the hill and approached the Bass Pro Shops on foot. Mr. Thomas broke and cleared the glass from the window of an emergency door using a yellow crowbar to gain access. They entered the store and ran to the firearms section, where they stole 17 firearms. The men then left the store and returned to Mr. Thomas’ vehicle, which they drove back to the Atlanta area.
Agents later obtained a search warrant for Mr. Thomas’ residence, in which they found a yellow crowbar that matched the one used to break into the Bass Pro Shops. The agents also obtained records from Mr. Thomas’ cell phone which revealed that his cell phone pinged off cell phone towers in the vicinity of the Bass Pro Shops around the time that the burglary took place.
All four men each face a maximum sentence of five years of imprisonment, a $250,000 fine, or both. Sentencing for Jabari Walters is currently set for November 20, 2016. Sentencing for Tabari Walters, Kenneth Atwater, and Dante Thomas is currently scheduled for February 15, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Beth Howard is handling the prosecution for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Atlantic City Couple Admit Drug Trafficking and Money LaunderingRead the Press Release
CAMDEN, N.J. – An Atlantic City couple yesterday admitted their respective roles in drug trafficking and money laundering in the Atlantic County area, U.S. Attorney Paul J. Fishman announced.
Toye Tutis, 44, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to Count One of a second superseding indictment, charging him with conspiracy to distribute and possess with intent to distribute cocaine, crack cocaine and heroin, and Count 13 charging him with conspiring with his long-time paramour, Jazmin Vega, 42, to launder his drug trafficking proceeds. Vega also pleaded guilty to the Count 13 conspiracy to launder Tutis’s drug proceeds.
According to documents filed in this case and statements made in court:
From 2010 through December 2014, Tutis operated a large-scale drug trafficking ring out of the Ta’Ja Laundromat in Atlantic City, purchasing and distributing between 150 to 450 kilograms of cocaine and approximately 26 kilograms of heroin, and laundering between $1.5 and $3 million in drug proceeds. Tutis was aided by Vega, who admitted to laundering his drug trafficking proceeds in several ways, including through the couple’s various businesses – Ta’Ja Construction I LLC; Ta’Ja Real Estate Investors LLC; and Integrity Heating and Cooling LLC; and by purchasing more than 30 properties with tainted funds. As part of their plea agreements, Vega and Tutis have to forfeit 20 properties, cash and other assets.
The drug trafficking conspiracy count to which Tutis pleaded guilty carries a maximum potential penalty of life in prison and a fine of $10 million. The money laundering count to which Tutis and Vega both pleaded guilty carries a maximum potential penalty of 20 years in prison and a $500,000. Sentencing is scheduled for Feb. 17, 2017.
Nine other people have pleaded guilty to participating in the drug trafficking conspiracy or other related drug trafficking in the Atlantic County area, including:
- Kabaka Atiba, 46, of Atlantic City, sentencing scheduled for Jan. 20, 2017;
- Tozine Tiller, 42, of Absecon, sentencing scheduled for Jan. 20, 2017;
- TeJohn Cooper, 43, of Galloway Township, sentencing scheduled for Dec. 16, 2016;
- Ronald Douglas Byrd, 51, of Pleasantville, sentencing scheduled for Dec. 2, 2016;
- Kareem Taylor, 41, of Atlantic City; sentencing scheduled for Dec. 2, 2016;
- Talib Tiller, 43, of Mays Landing, sentencing scheduled for Dec. 1, 2016;
- John Wellman, 41, of Somers Point, sentencing scheduled for Dec. 1, 2016;
- Phillip Horton, 50, of Los Angeles, California, sentencing scheduled for Dec. 1, 2016; and
- Francisco Alberto Rascon-Muracami, 22, of Obregon, Mexico, sentenced on Oct. 30, 2015, to 70 months’ imprisonment and five years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Diane Ruberton; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to today’s guilty pleas.
He also thanked the N.J. State Police; the Pennsylvania State Police, the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorneys Diana Carrig and Howard Wiener of the Camden Division and Jonathan M. Peck of the Newark Division.
Defense counsel:
Tutis: J. Michael Farrell Esq., Philadelphia
Vega: Troy A. Archie Esq., Cinnaminson, New Jersey
Anchorage Man Convicted of Drug and Money Laundering OffensesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that after an eight-day trial, a federal jury found Murville Lavelle Lampkin, 44, resident of Anchorage, Alaska, guilty yesterday of conspiracy to distribute methamphetamine and heroin, money laundering conspiracy, distribution of heroin, and possession with the intent to distribute methamphetamine.
According to the evidence at trial, starting in late spring 2014, Toa Danh “Tony” Ly began to distribute marijuana and methamphetamine in Anchorage, the Valley, and Kenai Peninsula. Ly later included heroin among the items he distributed. Proceeds from these drug sales were deposited in Wells Fargo bank accounts. Individuals who sold drugs and made deposits of drug money for Ly included Pao Lee, Rennie Davis, Robert Rast, Tracey Trujillo, Mark Hanes and Susan Bradshaw.
On Nov. 8, 2014, Anchorage Police arrested Davis and Rast. Shortly thereafter, Ly met Lampkin, who agreed to sell drugs and deposit money for him. Lampkin’s first deposits of drug proceeds occurred on Nov. 12, 2014. In total, Lampkin deposited $57,000 worth of drug proceeds into Wells Fargo bank accounts controlled by Ly.
On Jan. 8, 2015, an undercover informant working for the FBI called Ly and negotiated the purchase of a half-ounce of heroin for $1300. Ly told the informant to go to a McDonald’s restaurant in Anchorage. Ly told the informant that the “new guy Lamar” would meet him with the heroin, and that “Lamar” would be driving a silver Trailblazer. Two minutes after this phone call, Ly called Lampkin. After Ly received a text from the informant telling him that he had arrived at the McDonald’s, Ly called Lampkin to pass along the information. Three minutes later, Lampkin was observed leaving his residence and driving directly to the McDonald’s where he parked next to the informant. The informant got out of his vehicle and climbed into the Trailblazer. After introducing himself, Lampkin told the informant that Pao Lee was unavailable because he was “running around,” and that the defendant is going to “take care of things on this side of town[.]” After confirming the sale of a “half” – approximately 15 grams of heroin for $1300 – Lampkin told the informant to call “Tony” for future buys, and that Tony “will call [the defendant].”
On Jan. 14, 2015, law enforcement executed search warrants at multiple locations connected to the conspiracy. In a locked safe at the foot of Lampkin’s bed, law enforcement located approximately 400 grams of methamphetamine packaged into 15 individual Ziploc baggies. Also in the safe were smaller baggies into which doses of drugs could be packaged, and a digital scale used to measure drug quantities.
This is Lampkin’s third drug conviction. In 2002, Lampkin pled guilty in federal court to distribution and possession of cocaine with the intent to distribute. He was sentenced to 10 years in prison. While in custody, Lampkin was convicted in Alaska state court of promoting contraband in the first degree for possessing oxycodone and tetrahydrocannabinol.
Lampkin was the former bouncer at Rumrunners Old Towne Bar & Grill. In 2012, he was convicted in state court of fourth degree assault following a fight with a patron. Lampkin was sentenced in that case to two months in jail and two years of probation.
Lampkin is scheduled to be sentenced by U.S. District Judge Sharon L. Gleason on Jan. 12, 2017.
Because of his prior drug trafficking convictions, the maximum statutory penalty for a violation of 21 U.S.C. §§ 841(a)(1) and 846, Conspiracy to Distribute Controlled Substances, and Possession with the Intent to Distribute Methamphetamine is not less than 20 years to life, a fine of $20,000,000, a 10-year term of supervised release, and a $100 special assessment. The final sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The status of other defendants indicted as part of this case is as follows:
- Toa Danh “Tony” Ly pleaded guilty to conspiracy to distribute controlled substances and money laundering conspiracy. The sentencing hearing is set for Dec. 2, 2016.
- Pao Lee pleaded guilty to conspiracy to distribute controlled substances and distribution of controlled substances. The sentencing hearing is set for Dec. 7, 2016.
- Robert Lee Rast pleaded guilty to conspiracy to distribute controlled substances. The sentencing hearing is set for Jan. 20, 2017.
- Tracey Trujillo pleaded guilty to money laundering conspiracy. The sentencing hearing is set for Jan. 9, 2017.
- Renee Marie Davis pleaded guilty to conspiracy to distribute controlled substances. On Jan. 19, 2016, the Court sentenced her to six years in prison.
- Adam Michael Cornelison pleaded guilty to use of a firearm in furtherance of a drug trafficking offense. On Feb. 9, 2016, the Court sentenced him to five years in prison.
The case was the product of an investigation by the FBI’s Safe Streets Task Force, an FBI-led task force comprised of FBI Special Agents, Anchorage Police Department officers, Alaska State Troopers, and the United States Marshals. Assistance was also provided by the Internal Revenue Service, Criminal Investigation; APD’s Special Assignment Unit (SAU); and the Drug Enforcement Administration (DEA). Assistant U.S. Attorney Kyle Reardon prosecuted the case.
Alien Sentenced to Three Years on Identity Theft ChargesRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Jose Avianeda-Espinoza (44, Hillsborough County) to three years in federal prison for making material false representations to an agency of the United Sates, making false statements as to his citizenship, and aggravated identity theft. He pleaded guilty on August 3, 2016.
According to court documents, Avianeda, a citizen of Mexico, used a U.S. citizen’s identity for nearly 17 years to obtain a number of government identifications and to avoid deportation. In December 2015, he gave a false name to deportation officers and falsely claimed to be a U.S. citizen. He subsequently recanted his claim, however, and admitted to being a citizen of Mexico who was illegally present in the United States. On January 4, 2016, Avianeda appeared before an immigration judge and reasserted his claim to United States citizenship, providing a false name to the court and relying on a stolen birth certificate from Puerto Rico. He subsequently repeated his false claim to immigration officers. In March 2016, Avianeda again appeared before an immigration judge for removal proceedings and falsely identified himself to the court.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Fugitive Operation Task Force. It was prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.
Albuquerque Man Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Paul Keenahan, 45, of Albuquerque, N.M., pled guilty this morning to possession of visual depictions of minors engaged in sexually explicit conduct charges. Under the terms of his plea agreement, Keenahan will be sentenced within the range of 60 to 151 months in prison followed by 15 years of supervised release. Keenahan will also be required to register as a sex offender when he completes his prison sentence.
Keenahan was arrested in Sept. 2015, on a criminal complaint charging him with distributing child pornography in Bernalillo County, N.M. According to the criminal complaint, the investigation into Keenahan began in July 2015, when the New Mexico Internet Crimes Against Children (ICAC) Task Force received a tip about an IP address that was being used to share child pornography. Investigation revealed that the IP address was subscribed to a motel on Candelaria Road NE in Albuquerque, where it was being used by Keenahan, who was then employed by and living at the motel.
According to the criminal complaint, law enforcement officers executed a state search warrant at Keenahan’s home on July 23, 2015, and seized a laptop computer containing files consistent with child pornography. Keenahan was arrested on state charges that day. A forensic examination of Keenahan’s laptop computer revealed that it contained more than 10,000 files of child pornography.
Keenahan was subsequently indicted on Oct. 7, 2015, and charged with three counts of distribution of child pornography and three counts of possession of child pornography.
During today’s proceedings, Keenahan pled guilty to three counts of possession of child pornography. In entering the guilty plea, Keenahan admitted that from Feb. 14, 2012 through July 23, 2015, he possessed electronic devices containing visual depictions of minors engaging in sexually explicit conduct. Keenahan further admitted the following:
- From Nov. 2014 through July 2015, he possessed a computer containing approximately 1,010 video files and 8,949 images of child pornography;
- From Aug. 2014 through July 2015, he possessed an external hard drive that contained approximately 58 video files and 1,530 images of child pornography; and
- From Feb. 2012 through July 2015, he possessed six DVDs containing approximately 170 videos and images of child pornography.
Keenahan remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the New Mexico ICAC Task Force, Bernalillo County Sheriff’s Office, Albuquerque office of the FBI, Office of the New Mexico Attorney General, the U.S. Marshals Service and the New Mexico Regional Computer Forensic Laboratory with assistance from the 2nd Judicial District Attorney’s Office and the U.S. Attorney’s Office for the Northern District of New York.
Assistant U.S. Attorney Sarah Mease is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Alamogordo Woman Sentenced to 12 Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Robin Lee Lovelace, 56, of Alamogordo, N.M., was sentenced today in federal court in Las Cruces, N.M., to 12 years in prison followed by five years of supervised release for her conviction on methamphetamine trafficking crime charges.
Lovelace was one of 34 individuals charged in December 2015 with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Lovelace was arrested on Nov. 20, 2015, on an indictment charging her and seven other non-Natives with methamphetamine trafficking and money laundering offenses. The indictment charged Lovelace with participation in a methamphetamine trafficking conspiracy, distribution of methamphetamine, possession of methamphetamine with intent to distribute, and use of a communication device to facilitate a drug trafficking crime.
On March 9, 2016, Lovelace pled guilty to participating in the methamphetamine trafficking conspiracy, distribution of methamphetamine and possession of methamphetamine with intent to distribute and admitted that between April 9, 2015 and Oct. 16, 2015, she and a co-defendant conspired to sell methamphetamine to another individual who unbeknownst to them was an undercover law enforcement agent. During that same time period, she also sold methamphetamine to other individuals who then distributed methamphetamine to their customers.
Lovelace also admitted selling the following quantities of methamphetamine to an undercover agent as follows:
- 27.4 grams on April 9, 2015, in Bent, N.M.
- 56 grams on April 17, 2015, in Mescalero
- 84 grams on May 8, 2015, in Mescalero
- 112 grams on May 15, 2015, in Mescalero
- 112 grams on June 8, 2015, in Mescalero
- 140 grams on July 1, 2015, in Mescalero
- 580 grams on July 24, 2015, in Socorro,
- 140 grams on Aug. 6, 2015, in Mescalero,
- 140 grams on Sept. 3, 2015, in Tularosa, N.M.
- 212 grams on Oct. 9, 2015, in Alamogordo, N.M.
Lovelace also admitted that on Oct. 15, 2015, she facilitated the sale of 364.2 grams of methamphetamine to an undercover law enforcement agent.
Thirteen of the 18 federal defendants have entered guilty pleas. The remaining five federal defendants have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorneys Terri J. Abernathy and Clara Cobos of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the federal cases, and Mescalero Tribal Prosecutor Melissa Chavez is prosecuting the tribal cases.
13 Gang Members, Felons and Their Associates Indicted as Part of ATF-LAPD Investigation Targeting Crime in San Fernando ValleyRead the Press Release
LOS ANGELES – As the result of a seven-month investigation by special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and officers with the Los Angeles Police Department (LAPD), federal grand juries have issued nine indictments that charge a total of 13 defendants with firearms and narcotics violations.
During an early morning operation today, authorities arrested ten of the federal defendants. Two of the defendants under indictment are currently fugitives and one defendant is already in state custody. This morning’s operation also resulted in the seizure of 13 additional firearms, approximately two and one-half pounds of methamphetamine, approximately a quarter pound of crack cocaine, and approximately quarter pound of heroin.
In addition to the 13 federal defendants, authorities have arrested eight other defendants who are expected to be prosecuted by the Los Angeles County District Attorney’s Office.
From February through July, the joint ATF-LAPD operation called Crime Area Gun Enforcement (CAGE) targeted violent offenders, gang members and previously convicted felons and their associates who were suspected of being involved in illegal firearm possession and sales, as well as narcotics distribution, in the San Fernando Valley. Investigators used confidential informants as part of an undercover operation in which ATF agents purchased contraband. As a result of the CAGE operation, authorities have seized approximately 20 pounds of methamphetamine and 40 weapons, including restricted firearms such as short-barrel rifles and silencers. The investigation also uncovered two locations where AR-15- and AK-47-type rifles were being clandestinely manufactured or illegally sold.
"This operation has removed dangerous drugs from the black market and has shut off a source of illegal firearms that can cause so much violence and damage in our neighborhoods," said United States Attorney Eileen M. Decker. "Criminals who engage in the illegal trafficking of drugs and guns can and should expect to be prosecuted, especially when they have previously been convicted of similar crimes."
"ATF is committed to reducing violent crime," said Eric Harden, Special Agent in Charge of the ATF’s Los Angeles Field Division. "ATF accomplishes this by working with LAPD and identifying and targeting criminal organizations and the persons responsible for perpetrating violence in our communities."
"There is no doubt that removing guns from our streets and arresting criminals who use and carry guns prevents senseless violence in our communities," said LAPD Chief Charlie Beck. "Removing even one gun from the streets means one less Angeleno robbed, shot, or murdered. Removing illegal guns is one of the LAPD’s highest priorities and working with our federal partners will help make our communities safer."
Over the past several weeks, federal grand juries returned nine indictments that charge 13 defendants. Those defendants facing federal charges are:
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Fidel Moreno-Dominguez, 47, of Palmdale, and Walter Wilfredo Lagos, 34, of Palmdale, who are charged with conspiracy to distribute one pound of methamphetamine and distribution of methamphetamine. Moreno-Dominguez is additionally charged with being a felon in possession of a firearm after being convicted of selling narcotics. Lagos is currently a fugitive.
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Robert Steven Carrillo, 31, of Redlands, and Alexander Ramirez Manzo (also known as "Dozer"), 34, of Pacoima, who are charged with conspiracy to engage in the business of dealing in firearms without a license, engaging in the business of dealing in firearms without a license, and possession of unregistered firearms. Manzo additionally is charged with being a felon in possession of a firearm after being convicted of burglary and sale of a controlled substance.
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Brandon C. Torres, 30, of Van Nuys, who is charged with engaging in the business of dealing in firearms without a license, two counts of being a felon in possession of firearms and ammunition after being convicted of possession of a controlled substance, and distribution of approximately one-quarter pound of methamphetamine.
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Antonio Cisneros, also known as "Trippy," 31 of North Hollywood, and Gino Cesar Dresda, 24, of Panorama City, who are charged with distribution of approximately one-quarter pound of methamphetamine. Additionally, Cisneros is charged with possession of a firearm in furtherance of a drug trafficking crime, distribution of a second quarter-pound of methamphetamine, and being a felon in possession of a firearm and ammunition after being convicted of possessing a controlled substance and firearms offenses. Cisneros is currently a fugitive.
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Anival Alvarez, 41, of San Fernando, and Maribel Lopez-Reyes, 30, also of San Fernando, who are charged with for conspiracy to distribute methamphetamine and two counts of distributing approximately one-quarter pound of methamphetamine.
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Luis Angel Torres, 28, of Palmdale, who is charged with engaging in the business of dealing in firearms without a license, and two counts of being a felon in possession of firearms and ammunition after being convicted of possession for sale of a controlled substance.
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Rudy Salazar, 36, of Mission Hills, who is charged with distribution of approximately one-quarter pound of methamphetamine.
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Albert Benjamin Perez, also known as "Dragon," 57, of Granada Hills, who is charged with distribution of methamphetamine.
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Steven Clyde Neaville, 53, of Van Nuys, who is charged with distribution of approximately one-quarter pound of methamphetamine.
Those taken into federal custody this morning were arraigned this afternoon in United States District Court in Los Angeles, and all were ordered detained.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The 13 federal defendants are facing statutory maximum sentences ranging from five years in federal in federal prison to life imprisonment for the charges contained in the indictments. Some of the federal defendants are also facing mandatory minimum sentences of five or 10 years in connection with certain drug distribution charges.
The federal cases brought as part of the CAGE operation are being prosecuted by Assistant United States Attorneys Julian L. André and Karen E. Escalante of the General Crimes Section.
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Tuesday 1 November 2016
Zuni Pueblo Man Sentenced to Eight Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Joshua Lasiloo, 32, a member and resident of Zuni Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to eight years in prison followed by five years of supervised release for his conviction on a child sexual abuse charge. Lasiloo will be required to register as a sex offender when he completes his prison sentence.
Lasiloo was arrested on Oct. 23, 2015, on a three-count indictment charging him with sexually abusing a child under the age of 12 years from March 2013 through Sept. 2013, in Indian Country in McKinley County, N.M.
On May 12, 2016, Lasiloo pled guilty to a felony information charging him with abusive sexual contact of a minor. In entering the guilty plea, Lasiloo admitted that from March 20, 2013 through Sept. 21, 2013, he sexually abused the victim who was under the age of 12 years.
This case was investigated by the Albuquerque office of the FBI and the Zuni Pueblo Tribal Police Department. Assistant U.S. Attorney Raquel Ruiz-Velez prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Wilkes-Barre Man Charged in Straw Purchase of FirearmRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Wilkes-Barre man was charged with making false statements to a federally licensed firearm dealer.
According to United States Attorney Bruce D. Brandler, Ruben Rosario, age 19, of Wilkes-Barre, was charged in a Criminal Information, filed October 31, 2016, in United States District Court in Scranton, with providing false information to Piestrak’s Gun Shop, in Nanticoke, Pennsylvania, on April 5, 2016, in connection with the purchase of a firearm.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Together with the Criminal Information, the government also filed a plea agreement with Rosario, which is subject to the approval of the court. No date has yet been scheduled for the entry of Rosario’s guilty plea.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is ten years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Weymouth Woman Pleads Guilty to Stealing $700,000 from EmployerRead the Press Release
BOSTON – A Weymouth woman pleaded guilty today in U.S. District Court in Boston in connection with a fraud scheme in which she stole approximately $701,826 from her employer.
Katelin Garland, 39, pleaded guilty to two counts of wire fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 1, 2017.
As an administrative manager, Garland was responsible for depositing checks received, maintaining the record-keeping system, and requesting checks payable for entities in connection with business services. From approximately October 2011 to October 2015, Garland took advantage of flaws in her employer’s accounting and auditing systems and requested checks payable to fictitious names, which she then endorsed for deposit to a bank account she controlled. To conceal the scheme, Garland made false entries in her employer’s record-keeping system concerning those payments. She used the funds to pay for routine living expenses, tickets to sporting events, private school tuition for her children, and to purchase a boat, travel, and to shop.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit is prosecuting the case.
Wellsburg Man Charged with Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Joshua Vandegrift, 29, of Wellsburg, NY, was arrested and charged by criminal complaint with production of child pornography. The charge carries a minimum of 15 years in prison, a maximum penalty of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, between October 2014 and January 2015, Vandegrift engaged in sexually explicit communications via social media with a number of minor females. Those communications included enticing the minors to send sexually explicit photos of themselves to the defendant. The minors included a 17 year-old, a 12 year-old and two 13 year-olds.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the Chemung County Sheriff’s Office, under the direction of Christopher Moss, and the Oswego County Sheriff’s Office, under the direction of Reuel Todd.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Webster County man charged with failing to register as a sex offenderRead the Press Release
ELKINS, WEST VIRGINIA – A federal grand jury sitting in Clarksburg, West Virginia, returned an indictment today charging Timothy A. Yeigh, 28, of Camden on Gauley, West Virginia, with failing to register as a sex offender, United States Attorney William J. Ihlenfeld, II, announced.
Yeigh allegedly traveled in interstate commerce from West Virginia to Florida and failed to register and update his registration as a sex offender. Yeigh is required to register under the Sex Offender Registration and Notification Act by reason of a conviction under state law.
He was charged with one count of “Failure to Update Sex Offender Registration.” He faces up to ten years in prison and a fine up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah W. Montoro is handling the case on behalf of the government. The United States Marshals Service is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.U.S. Citizen Residing in Mexico Sentenced to Prison for Violating Federal Drug Trafficking LawsRead the Press Release
ALBUQUERQUE – Leon Homero Hernandez, 42, a U.S. citizen residing in Mexico, was sentenced today in federal court in Las Cruces, N.M., to 84 months in prison followed by four years of supervised release for his conviction on methamphetamine and cocaine trafficking charges.
Hernandez was arrested on Oct. 28, 2015, on a four-count indictment charging him with distributing cocaine on Aug. 17, 2015 and Sept. 2, 2015, and distributing methamphetamine on Sept. 2, 2015 and Sept. 23, 2015. According to the indictment, Hernandez committed the crimes in Dona Ana County, N.M. The indictment included forfeiture provisions requiring Hernandez to forfeit $3,900 to the United States.
On March 10, 2016, Hernandez pled guilty to a felony information charging him with two counts of distributing cocaine and two counts of distributing methamphetamine. In entering the guilty plea, Hernandez admitted distributing quantities of narcotics to an undercover law enforcement agent on the following dates: 24.1 grams of cocaine on Aug. 17, 2015; 23.8 grams of cocaine and 27.3 grams of pure methamphetamine on Sept. 2, 2015; and 56.6 grams of pure methamphetamine on Sept. 23, 2015.
This case was investigated by the Las Cruces office of the DEA and was prosecuted by Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces branch office.
Two Noel Men, Crocker Man Indicted for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Noel, Mo., men and a Crocker, Mo., man were indicted by a federal grand jury today for their roles in a conspiracy to distribute methamphetamine in Pulaski County, Mo., and McDonald County, Mo.
Michael Huckabey, 39, and Wesley A. Burrow, 34, both of Noel, and Steven C. McCurley, 50, of Crocker, were charged in an indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Huckabey, Burrow and McCurley participated in a conspiracy to distribute 500 grams or more of methamphetamine in Pulaski and McDonald counties from Dec. 16, 2015, to May 9, 2016.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Jody Larison. It was investigated by the U.S. Postal Inspection Service, the Waynesville, Mo., Police Department, the Pulaski County, Mo., Sheriff’s Department, the Ozarks Drug Enforcement Team and the McDonald County, Mo., Sheriff’s Department.
Two MS-13 Gang Members Convicted of Murder Are Sentenced to Life in PrisonRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that U.S. District Judge Robert J. Conrad, Jr. handed down life sentences to two MS-13 gang members convicted of murder.
In April 2016, a federal jury convicted Miguel Zelaya, 22, of Charlotte, of conspiracy to participate in racketeering activity (RICO), murder in aid of racketeering, use or carry of a firearm during and in relation to a crime of violence, and possession of a firearm in furtherance of a crime of violence resulting in the death of Jose Orlando Ibarra.
Luis Ordonez-Vega, 37, of Concord, N.C. was convicted of RICO conspiracy, murder in aid of racketeering, use or carry of a firearm during and in relation to a crime of violence, and possession of a firearm in furtherance of a crime of violence resulting in the death of Noel Navarro Hernandez.
A third MS-13 gang member, Jorge Garcia, 27, of Charlotte, was also sentenced today to 70 months in prison and two years of supervised release, after pleading guilty to a RICO conspiracy and attempted murder in aid of racketeering charges.
According to filed court documents, trial evidence and statements made in court:
From at least in or about 2009 to about May 2015, the three men along with 34 other co-defendants named in a federal indictment, were members of the MS-13 gang, a criminal organization with over 6,000 members in the United States and 30,000 members internationally. MS-13 originated in Los Angeles, California, and has spread to states across the country, including in North Carolina. The gang’s members are mostly immigrants or descendants of immigrants from El Salvador and other Central and Latin American countries. In North Carolina, some of the active MS-13 members are divided into different groups, or “cliques,” which include the “Trece Locos Salvatrucha,” the “Hollywood Locos Salvatrucha,” the “Charlotte Locotes Salvatrucha,” the “Centrales Locos Salvatrucha,” and the “Coronados Little Cycos Salvatrucha,” among others. The different cliques work together to carry out criminal acts, to protect the interests of the criminal enterprise, and to assist each other in avoiding law enforcement detection.
MS-13 members adhere to a set of gang rules and pay dues which fund the gang’s criminal activities and support other gang members or their families in the U.S and abroad. Gang members are also expected to protect the name, reputation, and status of the gang and its members, and to punish through acts of violence and intimidation those who disrespect the gang. Some MS-13 members signify their affiliation with the gang by wearing blue, black and white color clothing and certain “Mara Salvatrucha,” or “MS-13” tattoos.
Members of MS-13 in Charlotte participated in multiple meetings at various times to discuss gang-related matters and to plan the commission of future crimes for the benefit of the gang. They were also responsible for numerous criminal acts including murder and attempted murder.
Zelaya, a/k/a “Most Wanted” and “Ne Ne”, is a member of the “Coronados Little Cycos Salvatrucha” clique. On December 18, 2013, Zelaya shot and killed Jose Orlando Ibarra, an associate of a rival gang, “The Latin Kings.” Zelaya admitted to law enforcement that he shot Jose Ibarra because Ibarra owed him money for a gun and because Ibarra and his brother, a Latin King member, had been looking for one of Zelaya’s “homies” with a shotgun.
Ordonez-Vega, a/k/a “Big Boy,” is a self-admitted member of MS-13 from Nassau County, New York, and a member of the “Brentwood Locos Salvatrucha” clique. Ordonez-Vega has “MS” tattooed across his stomach and “La Mara Salvatrucha” tattooed across his chest. On June 6, 2013, Ordonez-Vega shot and killed Noel Navarro Hernandez in a strip mall parking lot in Charlotte. Ordonez-Vega and other MS-13 members targeted Navarro because they believed that Navarro was a rival gang member because of the way he talked, wore red, and his haircut.
Twenty-nine other MS-13 gang members were previously sentenced in connection with this case:
- Raul Contreras was sentenced to 360 months in prison and three years of supervised release.
- Oscar Trejo was sentenced to 300 months in prison and three years of supervised release.
- Cesar Garcia-Perez was sentenced to 276 months in prison and three years of supervised release.
- Daniel Navarro was sentenced to 240 months in prison and three years of supervised release.
- Jose Danny Argueta was sentenced to 228 months in prison and two years of supervised release.
- Milton Chavarria was sentenced to 228 months in prison and three years of supervised release.
- Alexis Villalta-Morales was sentenced to 204 months in prison and two years of supervised release.
- Christian Pena was sentenced to 180 months in prison.
- Carlos Almonte was sentenced to 144 months in prison and two years of supervised release.
- Luis Funes-Rivera was sentenced to 144 months in prison and two years of supervised release.
- Albert Vela-Garcia was sentenced to 78 months in prison and two years of supervised release.
- Jose Moran-Celis was sentenced to 72 months in prison and two years of supervised release.
- Marlon Vasquez-Maldonado was sentenced to 72 months in prison and three years of supervised release.
- Rene Lopez-Ventura was sentenced to 66 months in prison and two years of supervised release.
- Jose Manuel Linares was sentenced to 60 months in prison and two years of supervised release.
- Juan Bergamasco-Suarez was sentenced to 57 months in prison and two years of supervised release.
- Neris Gutierrez was sentenced to 51 months in prison and two years of supervised release.
- Jose Vasquez was sentenced to 46 months in prison and two years of supervised release.
- Luis Erazo was sentenced to 37 months in prison and two years of supervised release.
- Raul Guardado was sentenced to 36 months in prison and three years of supervised release.
- Jonathan Noble was sentenced to 36 months in prison and two years of supervised release.
- Jaime Turcios was sentenced to 36 months in prison and three years of supervised release.
- Rosendo Rivas was sentenced to 30 months in prison and two years of supervised release.
- Jorge Perez was sentenced to 27 months in prison and two years of supervised release.
- Marvin Fuentes-Canales was sentenced to 24 months in prison and two years of supervised release.
- Saul Gavidia was sentenced to 21 months in prison and three years of supervised release.
- Victor Pineda was sentenced to 21 months in prison and two years of supervised release.
- Angel Hernandez was sentenced to 21 months in prison.
- Fec Rodriguez-Vareal was sentenced to 15 months in prison and one year of supervised release.
Two more defendants, Jorge Sosa and William Gavidia, were previously convicted at trial and are currently awaiting sentencing. Sosa was convicted of RICO conspiracy, attempted murder in aid of racketeering and use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence, that being attempted murder in aid of racketeering. Gavidia was convicted of RICO conspiracy.
Three others remain fugitives. They are Miriam Barilles-Escamilla, Salvador Ruiz, and Luis Villalta.
In making today’s announcement U.S. Attorney Rose thanked the Charlotte Division of the FBI and ICE’s Homeland Security Investigations for leading the joint investigation, along with North Carolina’s Alcohol Law Enforcement and the Charlotte-Mecklenburg Police Department.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorneys Elizabeth Greene and William Miller of the U.S. Attorney’s Office in Charlotte are prosecuting the case.