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13 December 2016
Manhattan U.S. Attorney Announces Charges Against Six Individuals in International High-Yield Investment Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Angel M. Melendez, Special Agent In Charge of the New York Field Office of the Department of Homeland Security, Homeland Security Investigations (“HSI”), and Deirdre L. Fike, Assistant Director in Charge of the Los Angeles Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging six defendants with conspiracy, wire fraud, impersonation of Federal Reserve Bank of New York (“New York Fed”) officials, money laundering, and other crimes in connection with a fraudulent high-yield investment scheme that resulted in the theft of over $50 million from investors in the United States and around the world.
Manhattan U.S. Attorney Preet Bharara said: “Edwards and his co-defendants allegedly concocted and carried out an audacious scam, promising investors exponential returns on investments they claimed were overseen by the New York Federal Reserve and backed by the U.S. government. In reality, it was all a lie; there was no government-backed program and no plan to invest, only an alleged plan to steal the investors’ money.”
HSI Special Agent in Charge Angel M. Melendez said: “Using forged and counterfeit Federal Reserve documents, these individuals allegedly orchestrated a complex international scheme that cost unwitting investors both here and abroad over $50 million dollars. This indictment shows the great length that criminals will go to steal the money of hard working individuals. HSI is up to the challenge to uncover these schemes and bring the participants to justice.”
FBI Assistant Director Deirdre L. Fike said: “The defendants in this case allegedly used complicated terminology and claimed to have international sophistication as they swindled their victims. Skilled investigators with the FBI and with the HSI will continue our joint efforts to mitigate the threat to capital markets around the world.”
According to the allegations contained in the Indictment[1]:
From at least June 2013 through August 2016, RIENZI EDWARDS, MICHAEL JACOBS, RUBY HANDLER-JACOBS, F.K. HO, LAWRENCE LESTER, and RACHEL GENDREAU orchestrated and executed a fraudulent high-yield investment program known as the “Cities Upliftment Program,” or CUP, which the defendants falsely told investors was operated by the New York Fed. The scheme was principally designed and operated by EDWARDS, with the assistance of JACOBS and HANDLER-JACOBS, and was marketed to investors around the world through brokers, including HO, LESTER, and GENDREAU.
The defendants pitched the CUP to investors as a highly exclusive, invitation-only, public-private investment partnership designed to raise capital and generate large returns through a purported “trading program” run by the New York Fed. The defendants promised investors that the CUP would generate extremely high returns on their investments, in some cases as much as $150 million for every $1 million invested. The defendants claimed that half of the returns would be used to help revitalize American cities recovering from the 2008 financial crisis, and that the other half would be returned to the investors at the rate of $1 million per day for 75 banking days. The defendants told numerous other lies to victims to convince them to invest, including that their funds would be held in a trust account established by the New York Fed and that CUP investments were risk-free because they were “guaranteed” by the United States government. In truth, and as the defendants well knew, the CUP was a complete scam.
One of the primary ways in which the defendants tricked victims into investing millions of dollars in the CUP scheme was the use of forged and counterfeit New York Fed documents. On numerous occasions, the defendants sent, or caused to be sent, investment contracts, guarantees, correspondence, and other CUP-related documents printed on what appeared to be New York Fed letterhead and bearing the names and purported signatures of New York Fed officials, including the president, certain board members, and other senior officials of the New York Fed. In addition, EDWARDS, JACOBS, and HO, with the assistance of HANDLER-JACOBS, pretended to be New York Fed officials during in-person meetings and phone calls with investors to convince them to invest in the CUP.
Instead of holding investors’ funds in the purported trust accounts as promised, the defendants simply stole the money. EDWARDS, JACOBS, and HANDLER-JACOBS caused the bulk of the funds to be laundered through various domestic and overseas bank accounts in Hong Kong, Barbados, the United Kingdom, and Sri Lanka held in the names of shell companies that they controlled. A portion of the proceeds was then kicked back to the brokers who had recruited the investors. Altogether, the defendants stole over $50 million from investors in the United States and several foreign countries.
* * *
JACOBS was arrested at Los Angeles International Airport in California on December 11, 2016, and was presented in federal court before a U.S. Magistrate Judge in Santa Ana, California, on December 12. HANDLER-JACOBS was arrested in Albuquerque, New Mexico, on December 11, 2016, and was presented in federal court before a U.S. Magistrate Judge in Albuquerque on December 12. LESTER was arrested in Mount Vernon, Washington, on December 12, 2016, and presented the same day in federal court before a U.S. Magistrate Judge in Seattle, Washington. GENDREAU was arrested on December 12, 2016, in Savanna, Illinois, and was presented in federal court before a U.S. Magistrate Judge in Rockford, Illinois, earlier today. EDWARDS and HO are currently at large.
The case is assigned to U.S. District Judge Paul G. Gardephe. Arraignment is scheduled for December 20, 2016, in federal court in Manhattan.
EDWARDS, 55, of Sri Lanka, JACOBS, 64, of Albuquerque, New Mexico, and HANDLER-JACOBS, 64, of Albuquerque, New Mexico are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 10 years in prison; one count of conspiracy to commit money laundering and two counts of money laundering, each of which carries a maximum sentence of 20 years in prison; one count of conducting monetary transactions in unlawful funds, which carries a maximum sentence of 10 years in prison; one count of conspiracy to impersonate employees of the United States, which carries a maximum sentence of five years; one count of impersonating employees of the United States, which carries a maximum sentence of three years; and aggravated identity theft, which carries a maximum sentence of two years in prison.
HO, 80, of Singapore, LESTER, 71, of Mount Vernon, Washington, and GENDREAU, 46, of Savanna, Illinois, are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 10 years in prison; and one count of aggravated identity theft, which carries a maximum sentence of two years in prison. In addition, HO is charged with one count of conspiracy to impersonate employees of the United States, which carries a maximum sentence of five years; and one count of impersonating employees of the United States, which carries a maximum sentence of three years.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of HSI and the FBI. Mr. Bharara also thanked the Federal Reserve Bank of New York for its ongoing cooperation in this investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Daniel S. Noble is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Managing Partner of Bulk Mail Firm Admits Defrauding U.S. Postal Service of Nearly $750KRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Shelly Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, today announced that ROBERT KUSS, 54, of Cheshire, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court one count of mail fraud stemming from his role in a scheme to defraud the U.S. Postal Service of nearly $750,000.
According to court documents and statements made in court, KUSS is the managing partner of Creative Marketing Group, LLC (“CMG”), a mail service provider in the business of sending bulk mailings. CMG has a Permit Imprint bulk mailing permit (“PI permit”) that allows the company to print postage indicia directly onto an envelope rather that affix a postage stamp or a meter impression to each piece of mail (the printed postage indicia tend to be pink printings on the upper right hand corner of an envelope).
Generally, a PI permit holder has an account from which the USPS debits the appropriate postage charge for each bulk mailing. To utilize its PI permit, a mailer generally drops off its bulk mailing at the office that maintains its permit, known as a Business Mail Entry Unit (“BMEU”) – in this instance the Bristol (Conn.) Post Office. There, the mailing is examined and accepted by BMEU postal employees. The USPS then debits the mailer’s account the appropriate amount for postage.
To save money, a bulk mailer may also transport the bulk mailing itself to a destination USPS facility to obtain lower postage rates rather than simply deliver the bulk mailing to the appropriate BMEU. To do so, a mailer must bring both the bulk mailing and a form known as Postal Service Form 8125 (“PS 8125 Form”) to the BMEU for verification. Once verified, the BMEU personnel debit the mailer’s account and fill out the PS 8125 Form with information about the bulk mailing, including the mailer’s permit number, the total number of pieces of mail and the total mail weight. BMEU personnel also affix a USPS stamp to the form. The mailer then takes the bulk mailing and the PS 8125 Form to the destination USPS facility for delivery. A USPS employee at the destination facility reviews the bulk mailing and the form to ensure they match and for completeness before accepting the mailing and the PS 8125 Form.
Between approximately July 2014 and March 2016, KUSS brought bulk mailings to destination USPS facilities with fraudulent PS 8125 Forms. KUSS had filled out and stamped the forms to appear as though the bulk mailings had been brought to and verified by the BMEU in Bristol, and as though the USPS had appropriately debited his advanced deposit account. In fact, KUSS had not brought the bulk mailings to the BMEU, the BMEU had not verified the mailings, and the USPS had not debited his advanced deposit account.
KUSS delivered at least 125 bulk mailings to destination USPS facilities around the country pursuant to this scheme. As a result, he sent 3,260,183 pieces of mail without paying for postage, and the USPS lost $749,573.
The charge of mail fraud carries a maximum term of imprisonment of 20 years. KUSS is scheduled to be sentenced by U.S. District Judge Robert Chatigny on April 17, 2017.
This matter is being investigated by the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and John H. Durham.
Man Sentenced for Trafficking Huge Amount of MethRead the Press Release
CORPUS CHRISTI, Texas – A California man has been ordered to prison following his conviction for his part in a conspiracy to traffic 132 kilograms of methamphetamine through South Texas, announced U.S. Attorney Kenneth Magidson. Deandre Bennett, 57, pleaded guilty March 29, 2016.
Today, Senior U.S. District Judge Hayden Head sentenced Bennett to 135 months in federal prison to be immediately followed by four years of supervised release.
Members of the Kingsville Specialized Crimes and Narcotics Task Force encountered Bennett on Dec. 2, 2015 while he was travelling Northbound on U.S. Highway 77. A search of the tractor-trailer he was operating revealed more than 132 kilograms of methamphetamine hidden inside wooden pallets. Bennett admitted the drugs were headed to Corpus Christi.
The charges were the result of a joint investigation by Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Department of Public Safety, Kingsville Specialized Crimes and Narcotics Task Force, Kleberg County District Attorney’s Office, Customs and Border Protection and the U.S. Marshals Service.
Assistant U.S. Attorney Brittany Jensen is prosecuting the case.
Man Arrested on Peace Bridge with FirearmRead the Press Release
BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jibreel Williams, age 27, of Buffalo, NY, was arrested and charged by criminal complaint with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Laura Higgins, who is handling the case, stated that in the early hours of December 11, 2016, Williams was stopped in a vehicle on the Peace Bridge while trying to re-enter the United States after visiting the duty-free shop. The firearm was recovered during a border search of the vehicle.
The defendant made an initial appearance yesterday before U.S. Magistrate Judge Michael J. Roemer. Jibreel Williams is being held for a detention hearing scheduled for today before U.S. Magistrate Judge Jeremiah J. McCarthy at 1:30 p.m.
The criminal complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Hilmey, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero.
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.
Lynchburg Man Pleads Guilty to Bankruptcy FraudRead the Press Release
LYNCHBURG, VIRGINIA – A Lynchburg man faces up to five years in prison after pleading guilty yesterday to a federal bankruptcy fraud charge, according to United States Attorney John P. Fishwick Jr.
Randall K. Falwell, 56, of Lynchburg, Va., waived his right to be indicted and pled guilty yesterday to a one count Information charging him with bankruptcy fraud. At sentencing, Falwell faces a maximum possible sentence of up to five years in prison and/or a fine of up to $250,000.
“The bankruptcy laws of the United States are designed to help those in need get out of debt and emerge from dire circumstances,” United States Attorney Fishwick said. “Bankruptcy fraud is a real crime with real circumstances and those who commit these offenses should be warned, if you lie in your bankruptcy proceedings, we will prosecute you.”
According to evidence presented at yesterday’s hearing by Special Assistant United States Attorney Kari Munro, Falwell, knowingly and fraudulently made a false statement under oath and in relation to a Chapter 13 bankruptcy proceeding. Specifically, Falwell falsely claimed that he owned partial interests in real property without disclosing to the bankruptcy trustee that he had sold the properties some months earlier.
The investigation of the case was conducted by United States Trustee’s Office. Assistant United States Attorney Jennie L. M. Waering and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Logan County man admits accepting kickbacks as an employee of a subsidiary of Arch CoalRead the Press Release
CHARLESTON, W.Va. – A Logan County man pleaded guilty today for his role in a kickback scheme, announced United States Attorney Carol Casto. Chadwick Lusk, 35, of Davin, entered his guilty plea to honest services mail fraud.
Lusk admitted that while he was employed as a purchasing agent at the Mountain Laurel Mining Complex, he defrauded a wholly-owned subsidiary of Arch Coal, the Mingo Logan Coal Company, of its right to honest services by receiving illegal cash kickbacks in a crib block kickback scheme. Crib blocks are used to provide roof support in an underground mine. Beginning around September 2009 and continuing until at least March 2014, Gary L. Roeher, who owned CM Supply, Co., paid Lusk a portion of the profits for the crib blocks that the Mingo Logan Coal Company purchased from CM Supply to use at Mountain Laurel. Roeher usually paid Lusk 7.5% of the crib block sales price. Roeher estimates he paid Lusk approximately $230,000 in cash kickbacks as part of the scheme, and Lusk agreed to pay $230,000 in restitution as part of his plea agreement.
Lusk faces up to 20 years in federal prison when he is sentenced on February 3, 2017.
The FBI, the Criminal Investigation division of the IRS, the United States Postal Inspection Service, and the West Virginia State Police conducted the investigation. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
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Local Law Enforcement Officers Honored for Commitment to Drug Abuse PreventionRead the Press Release
Two local police officers are being honored this week by the United States Attorney’s Offices for the Northern and Southern Districts of Iowa and the Drug Enforcement Administration (DEA) for their commitment to reducing drug abuse in their communities. The recipients of the 2016 Enrique S. Camarena Award are Officer Al Fear of the Cedar Rapids Police Department and Officer Dustin Lindaman of the Waterloo Police Department.
The award is named after Enrique “Kiki” Camarena, who was an 11-year veteran agent of the DEA before being kidnapped, brutally tortured and then murdered in Mexico in 1985 while working undercover gathering information and evidence about drug lords. This award is presented each year to local law enforcement officers who best exemplify the qualities and principles for which Agent Camarena gave his life—specifically, making their communities a safer place to live through outstanding drug prevention and enforcement efforts.
This year’s award recipients have gone above and beyond the call of duty in pursuit of a drug-free community:
- Through his commitment to reducing drug abuse within both the Northern and Southern Districts of Iowa, Officer Al Fear is a worthy recipient of this distinguished award. Over the past year, Officer Fear developed a robust heroin prevention initiative aimed at educating addicts, health care professionals, educators, students, law enforcement officers, and the general public on the dangers of opioid and heroin abuse. Officer Fear is passionate about preventing the spread of opioid and heroin addiction and making a difference in the lives of individuals addicted to opioids and heroin.
- Through his commitment to educating middle school students and their families about the dangers of drug abuse, Officer Dustin Lindaman is a worthy recipient of this distinguished award. In his position as School Resource Officer for Waterloo Central Middle School, Officer Lindaman has the unique opportunity to build positive relationships with students, to serve as a role model, and to have important conversations with students at a critical time in their development. Through these conversations, Officer Lindaman emphasizes the detrimental impact that drug abuse has on the student and his or her family.
Kevin W. Techau, United States Attorney for the Northern District of Iowa commented on this year’s award recipients, stating, “The communities these officers serve are safer because of their hard work and dedication. They richly deserve the honor of receiving the Enrique S. Camarena award. Officer Lindaman’s work highlights the enormous value of the School Resource Officer program, which places police officers in schools around the state working on drug abuse prevention while promoting school safety. Through his tireless efforts, Officer Lindaman has established a high level of trust with Central students, serving as both a role model to students and an important source of education and information about the dangers of drug abuse. Officer Fear, in conjunction with both law enforcement and community efforts, has led a strong effort to prevent and combat the prescription drug abuse and heroin epidemic across Easten Iowa.”
Darin T. Thimmesch, the Assistant Special Agent in Charge for the DEA also commented on this year’s award, stating, “The DEA is committed to working with our law enforcement partners at all levels to reduce the availability and abuse of illicit drugs in the communities we serve. We are honored to be a part of this distinguished award presentation in memory of fallen DEA Special Agent Enrique S. Camarena. Special Agent Camerena gave his life fighting against the powerful drug cartels in Mexico while trying to protect the country he served from evils of drug distribution and abuse. This award exemplifies the outstanding investigative efforts of these law enforcement officers in disrupting the illegal activities of the drug trafficking organizations operating in and around the Iowa City and Cedar Rapids communities, as well as preventing the further distribution of these highly addictive, deadly drugs.”
The Enrique S. Camarena Award is presented each year during Red Ribbon Week. Red Ribbon Week is an alcohol, tobacco, and drug prevention awareness campaign observed annually in the United States.
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Local Businessman Pleads Guilty to Wire Fraud, Money Laundering as Part of Investment Fraud SchemeRead the Press Release
COLUMBUS, Ohio – John Richard Blazer, 70, of Marion, Ohio, pleaded guilty in U.S. District Court to wire fraud and money laundering as part of an investment fraud scheme.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Michael H. Watson.
According to the Statement of Facts in this case, from approximately January 2011 until August 2013, Blazer owned and operated several businesses in central Ohio, including The Ohio Company and The Ohio Company Loan Fund. He was also a partner in The Ohio Heritage Fund.
Blazer recruited investors by promising them that their money would be invested in one of his businesses, or in a real estate fund to purchase and rehabilitate homes in central Ohio, or in a gold mining operation in Africa.
Rather than investing the victims’ funds, Blazer used the money to pay for personal expenses and to pay off previous investors.
In total, he received at least $1 million from approximately 21 victims.
Blazer pleaded guilty to one count each of wire fraud and money laundering. Each crime is punishable by up to 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Jessica H. Kim, who is representing the United States in this case.
Leader of Violent Bloods Street Gang Admits Racketeering ConspiracyRead the Press Release
Plea Calls for Prison Sentence of 10 to 12 years
NEWARK, N.J. – A leader of the Sex Money Murder set of the Bloods street gang today admitted his role in a racketeering conspiracy that involved murder, attempted murder, conspiracy to commit murder, and conspiracy to distribute heroin, U.S. Attorney Paul J. Fishman announced.
Rajohn Wilson, a/k/a “1090,” 25, of Newark, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count Two of a 14-count superseding indictment charging him with racketeering conspiracy.
According to documents filed in this case and statements made in court:
The Bloods street gang is organized into subgroups that operate in specific geographic locations. Sex Money Murder is the subgroup that operates primarily in Essex County, New Jersey.
Rajohn Wilson, who served as a “five-star general” of Sex Money Murder, admitted that from 2007 to 2011 he committed a series of violent crimes to advance the gang’s objectives. He is a younger brother of Narik Wilson, a/k/a “Spaz,” the leader or “O.G.” of the gang. Rajohn Wilson admitted that he conspired with members of Sex Money Murder on Feb. 4, 2007, and Feb. 16, 2007, to murder rival gang members, and that he and others carried out drive-by shootings of two victims in and around Newark. Wilson also admitted conspiring to distribute more than one kilogram of heroin.
The plea agreement requires Wilson to be sentenced to 10 to 12 years in prison, minus time served in jail on a related case, and five years of supervised release. Sentencing is scheduled for March 23, 2017.
U.S. Attorney Fishman credited special agents of the FBI and the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Carolyn A. Murray; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; and the Newark Department of Public Safety, under the direction of Anthony F. Ambrose, with the investigation leading to today’s guilty plea. He also thanked special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky, for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Anthony Mahajan of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Wilson: Howard Brownstein Esq., Union City, New Jersey
KC Man Sentenced for Illegal FirearmsRead 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 sentenced in federal court today for illegally possessing two firearms.
Leon D. Stinnett, 28, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to nine years and six months in federal prison without parole.
Stinnett had pleaded guilty to being a felon in possession of two firearms. Stinnett admitted that he was in possession of a Jimenez 9mm pistol and a Glock .40-caliber pistol on Nov. 2, 2013.
Stinnett, driving a 2003 Honda Accord, attempted to flee from police officers to elude arrest. He was found a short time later at a location that was under police surveillance. Stinnett was arrested and officers searched his vehicle. They found the loaded Jimenez 9mm pistol in the driver’s seat and the loaded Glock .40-caliber pistol in the trunk of the car.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Stinnett has two prior felony convictions for burglary and a prior felony conviction for robbery.
This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Settles Immigration-Related Discrimination Claim Against Utah Staffing AgencyRead the Press Release
The Justice Department reached an agreement today resolving claims that 1st Class Staffing LLC, a staffing company based in Orem, Utah, discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).
The department’s investigation conducted by the Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), found that 1st Class Staffing’s Fontana, California, office routinely requested that non-U.S. citizens, but not U.S. citizens, provide specific immigration documents to establish their authority to work. Under the INA, all workers, including non-U.S. citizens, must be allowed to choose whichever valid documentation they would like to present from the lists of acceptable documents to prove their work authorization. It is unlawful for an employer to limit an employee’s choice of documentation because of their citizenship, immigration status or national origin.
Under the terms of the settlement agreement, 1st Class must pay for lost wages to the charging party whose complaint initiated the department’s investigation; pay $17,600 in civil penalties to the United States; participate in department-provided training on the anti-discrimination provision of the INA and be subject to departmental monitoring.
“Employers must ensure that their human resources, hiring and recruitment staff understand and implement proper hiring practices to avoid violating anti-discrimination laws,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “We commend 1st Class for its cooperation and commitment to removing unnecessary and unlawful employment barriers.”
OSC is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing or recruitment or referral, should contact the worker hotline above for assistance.
1st Class Staffing Settlement AgreementGeorgia Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that William Curtis Oliver, 52, of Dover-Foxcroft, Maine, and formerly of Dougherty County, Georgia, pleaded guilty today in U.S. District Court to failing to register as a sex offender. He was indicted on October 14, 2016.
Court records reveal that in November 2012, the defendant was convicted of child molestation in Georgia. As a result of his conviction, the defendant was required to register as a sex offender and keep his registration current. In December 2015, the defendant moved to Maine and lived and worked in Guilford and Dover-Foxcroft. He failed to notify the sex offender registry in Georgia that he left Georgia and did not register in Maine. He was arrested on September 15, 2016.
He faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Marshal’s Service and the Dover-Foxcroft Police Department.
Fries Woman Pleads Guilty to Federal Drug ChargeRead the Press Release
Roanoke, VIRGINIA – A Fries woman, who conspired with others to distribute methamphetamine in and around the Hillsville and Galax regions of Virginia, pled guilty today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced.
Bianca Victoria Aroche, 23, of Fries, Va., pled guilty today to one count of conspiracy to possess with the intent to distribute and to distribute 50 grams or more of methamphetamine. At sentencing, Aroche faces a maximum possible penalty of up to 40 years in federal prison and a mandatory minimum sentence of five years in federal prison.
“We will continue to work to stop the flow of methamphetamine into our communities,” United States Attorney Fishwick said today. “Methamphetamine addiction ruins lives and those who traffic in this drug must be stopped.”
According to evidence presented to the court by Assistant United States Attorney Ashley B. Neese, Aroche, and others, distributed methamphetamine in and around Hillsville and Galax beginning around the spring of 2014 and continuing until at least August 2014.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Galax Police Department, the Carroll County Sheriff’s Office and the Grayson County Sheriff’s Office. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Four Central Texas Human Smugglers Sentenced to Federal Prison for Alien SmugglingRead the Press Release
Four central Texas human smugglers have been sentenced to federal prison for their role in an operation where the criminal network made in excess of $1 million dollars by smuggling individuals into the United States from various parts of the globe, announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations Special Agent in Charge Shane Folden, San Antonio.
The four appeared in Austin late Friday afternoon before United States District Judge Lee Yeakel and received the following sentences:
- Alfredo Torres-Alvarez, 31-year-old undocumented alien residing in Austin, sentenced to 57 months imprisonment;
- Elvira Murrillo-Angel, 32-year-old undocumented alien residing in Sandia, TX, sentenced to 27 months imprisonment;
- Delia Catalina Angel, 31-year-old Austin resident, sentenced to two years imprisonment; and,
- Norma Parra, 32-year-old Austin resident, sentenced to one year imprisonment.
All four defendants pleaded guilty to one count of conspiracy to transport undocumented aliens. Per their plea agreements, Torres agreed to forfeit $282,000 and Murillo agreed to forfeit $200,000 to the Government.
“These sentences clearly illustrate the serious consequences faced by those who attempt to make money by exploiting others,” said Special Agent in Charge Shane Folden, HSI San Antonio. “Human smugglers view their clients as nothing more than a payday, and have no qualms about using threats and violence to collect their smuggling fees.”
According to court documents and statements at sentencing, Delia Catalina Angel was the cell leader of a vast human smuggling organization with connections in Mexico, San Antonio and Austin. The organization successfully smuggled hundreds of undocumented individuals from Mexico, Guatemala, and Honduras into the United States.
This investigation was conducted by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) with the assistance of ICE Enforcement and Removal Operations, Austin Police Department and Travis County Sheriff’s Office. Assistant U.S. Attorney Michael Galdo prosecuted this case.
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Former Santa Fe Pharmacist Pleads Guilty and is Sentenced for Conviction on Misdemeanor Charge of Dispensing Testostorone Without a PrescriptionRead the Press Release
ALBUQUERQUE – David Nunez of Santa Fe, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to the misdemeanor offense of dispensing a controlled substance, testosterone, without a prescription. Nunez was a licensed pharmacist and the owner of a pharmacy in Santa Fe at the time he committed the crime.
Immediately following the entry of the guilty plea, a U.S. Magistrate Judge sentenced Nunez under the terms of his plea agreement to a three-year term of probation during which he may not re-apply for a pharmacist license or a DEA registration to dispense controlled substances. Nunez also was ordered to perform 100 hours of community service during his probationary term.
Nunez was charged in Nov. 2015, in a criminal complaint with unlawfully dispensing testosterone without a prescription, possession of a controlled substance (testosterone) with intent to distribute, and conspiracy. According to the criminal complaint, in 2011, when Nunez was a licensed pharmacist and owner of a pharmacy in Santa Fe, he leased space in his pharmacy to another person (lessee) with the understanding that the lessee would use the space to compound bio-identical hormone replacement creams for distribution by the lessee’s own company. Nunez agreed to supervise the lessee’s compounding operations and permitted the lessee to use his DEA registration number to order testosterone, a controlled substance, for use in the lessee’s compounding operation.
During today’s change of plea hearing, Nunez pled guilty to a misdemeanor information charging him with the unlawful dispensing of a controlled substance without a prescription. In his plea agreement, Nunez admitted leasing space to the lessee for the purpose of compounding medications. Nunez further admitted that in May 2011, he received more than a kilogram of testosterone at his pharmacy which had been ordered by the lessee’s employees using Nunez’s DEA registration number. Nunez provided the testosterone to the lessee even though he did not process any specific prescriptions for any patients for the testosterone and was not aware of any specific prescriptions for the medication.
The New Mexico Board of Pharmacy suspended Nunez’s pharmacist license in June 2015 as the result of a separate investigation and he subsequently sold his pharmacy.
This case was investigated by the Tactical Diversion Squad of the DEA’s Albuquerque office, the Food and Drug Administration and the New Mexico Board of Pharmacy. The case was prosecuted by Assistant U.S. Attorney Jennifer M. Rozzoni.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
Former Resident of Nevada and Montana Pleads Guilty to Corruptly Interfering with the Tax LawsRead the Press Release
A former resident of Montana and Nevada pleaded guilty today to one count of corruptly interfering with the administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Michael W. Cotter for the District of Montana.
According to court documents, Steven D. Pjevach filed false and fraudulent income tax returns using personal identifying information, including individuals’ names and social security numbers obtained through posting false help-wanted advertisements on Craigslist. Pjevach also opened and caused to be opened, and used and caused to be used, bank accounts in other individuals’ names to receive the fraudulently obtained tax refunds. Pjevach provided false information to the individuals whose accounts he used regarding the reason he was using their accounts, and advised one individual to disregard correspondence from the bank regarding the account. Finally, Pjevach created false and fraudulent Forms W-2, which he attached to the fraudulent returns in an effort to deceive the Internal Revenue Service (IRS).
Sentencing is scheduled for March 23, 2017. Pjevach faces a statutory maximum sentence of three years in prison, a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Cotter commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Chad C. Spraker, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Program Director of Supplemental Educational Services Provider to Detroit Public Schools Pleads Guilty to FraudRead the Press Release
The former program director of supplemental educational services provider, Priority: My Education pleaded guilty today to federal program fraud, announced U.S. Attorney Barbara L. McQuade.
Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Pleading guilty today before United States District Judge Bernard A. Friedman was Theodore Thomas Pride, III, 37 of Detroit.
According to court records, between 2011 and 2012, Theodore Pride III, as resident agent and program director of Priority: My Education, a company that had been approved by the State of Michigan to provide supplemental educational services to eligible students in Michigan, obtained at least $684, 644 from DPS through a scheme in which he submitted fraudulent invoices for payment to DPS for tutorial services that were never rendered to DPS students.
United States Attorney Barbara L. McQuade said, "People who defraud a school system are effectively stealing educational opportunities from children."
Pride faces up to 10 years in prison and fines of up to $250,000 when he is sentenced on April 11, 2017 at 11:00 am.
This case was investigated by agents of the FBI. This case is being prosecuted by Assistant United States Attorney Dawn N. Ison.
The FBI Detroit Area Corruption Task Force (DACTF) is led by the FBI Detroit Field Office, and consists of Special Agents and law enforcement officers with the FBI Detroit; the Detroit Police Department; the Michigan State Police; the Michigan Attorney General’s Office; the Internal Revenue Service – Criminal Investigation Division; the U.S. Department of Housing and Urban Development–Office of Inspector General; the U.S. Environmental Protection Agency–Office of Inspector General; the U.S. Department of Transportation–Office of Inspector General; the U.S. Department of Homeland Security–Office of Inspector General; the U.S. Department of Education–Office of Inspector General; and the U.S. Department of Labor–Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Former Postal Worker Pleads Guilty to Stealing MailRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former U.S. Postal Service employee pleaded guilty in federal court today to stealing mail.
Shannon N. Hill, 22, of Lee’s Summit, Mo., waived her right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs to a federal information that charges her with stealing mail.
According to today’s plea agreement, Hill took cash and gift cards from mail addressed to 33 victims in Kansas City, Raytown, and Parkville, Mo., from April 1, 2015, to March 31, 2016. The loss to date is a total of $795. The thefts occurred at the Raytown Station, the Barry Woods Carrier Annex, the Hodge Park Station and the Parkville Post Office.
Under federal statutes, Hill is subject to a sentence of up to five years in federal prison without parole and must pay restitution to the victims. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the U.S. Postal Service-Office of Inspector General
Former Oregon State Police Forensic Scientist Sentenced to 36 Months in Prison for Theft of Controlled SubstancesRead the Press Release
PORTLAND, Ore. – On Monday, December 12, 2016, U.S. District Judge Anna J. Brown sentenced former Oregon State Police Forensic Scientist Nika Larsen, 36, of Bend, Oregon to 36 months in federal prison for obtaining controlled substances by misrepresentation, fraud and deception. Following her prison sentence, Larsen will be on one year of supervised release that will include 250 hours of community service.
“An effective criminal justice system requires the highest level of personal integrity from everyone working within the system,” said Billy J. Williams, United States Attorney for the District of Oregon. “If is a single link in this chain is compromised, the equitable administration of justice is at risk. Ms. Larsen’s sentence reflects the severity of her crimes,” continued U.S. Attorney Williams, “and demonstrates our law enforcement community’s commitment to policing its own and protecting the integrity of the justice system.”
In August 2016, Larsen plead guilty to two counts of obtaining controlled substances by misrepresentation, fraud and abuse by using her position as a state forensic scientist to steal controlled substances from evidence items submitted by law enforcement agencies to the Oregon State Police Crime Lab for analysis and testing. Between January 2013 and August 2015, Larsen was found to have stolen over 700 controlled substances in pill form from over 50 separate evidence items. The stolen pills included Morphine, Hydrocodone, Diazepam, Methamphetamine (pill form), Oxycodone and Methadone. Larsen’s offenses occurred primarily in Umatilla and Deschutes Counties at the Oregon State Police Crime Labs in Pendleton and Bend.
The case was investigated by the Oregon State Police and the Oregon Department of Justice, Criminal Justice Division. The case was prosecuted by Pamala R. Holsinger, Assistant United States Attorney for the District of Oregon, and Special Assistant United States Attorney Stephen H. Gunnels from the Deschutes County District Attorney’s Office. Multnomah County Chief Deputy District Attorney Donald N. Rees served as Special Deputy District Attorney for Umatilla County during the case and also represented the Oregon District Attorney’s Association (ODAA).
Daina Vitolins, President of the ODAA, expressed the gratitude of district attorneys statewide to the United States Attorney for Oregon and to the participating district attorneys’ offices for bring this difficult matter to a just close.
Former Guinean Minister of Mines Charged with Receiving and Laundering $8.5 Million in Bribes from Chinese CompaniesRead the Press Release
The former Minister of Mines and Geology of the Republic of Guinea was arrested and charged today with laundering proceeds from bribes that he allegedly received from two Chinese companies that are part of a Chinese conglomerate in exchange for official actions he took to secure valuable mining rights for the conglomerate.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York, Assistant Director Stephen Richardson of the FBI’s Criminal Investigative Division, and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
“Former Minister Thiam is accused of enriching himself at the expense of the people of the Republic of Guinea,” said Assistant Attorney General Caldwell. “We cannot allow the United States to be a safe haven for the spoils of official corruption. The department is committed to pursuing both those who pay bribes, and also the corrupt officials who receive them.”
“Mahmoud Thiam, a former high-ranking official of Guinea, allegedly used his position to accept millions in bribes from a Chinese conglomerate and laundered the money through New York,” said U.S. Attorney Bharara. “Thiam, a U.S. citizen, will now face justice in a federal court.”
“This arrest exemplifies the commitment to personnel and resources the FBI continues to make towards combating corruption,” said Assistant Director Richardson. “The FBI looks forward to the development of those relationships with our partners both in the United States and around the world.”
“Today’s action shows that the FBI, along with our partners, is committed to investigating all levels of corruption,” said Assistant Director in Charge Sweeney. “The United States will be relentless in its efforts to uphold fair, equal and competitive markets. The actions of a few who use corruption for personal gain will not be tolerated.”
Mahmoud Thiam, 50, a U.S. citizen residing in New York City, was charged by complaint with two counts of money laundering. Thiam was arrested this morning and made his initial appearance this afternoon before a magistrate judge in the Southern District of New York.
The complaint alleges that in 2009 and 2010, Thiam took part in a scheme to launder, into the United States and elsewhere, approximately $8.5 million in bribes he received from senior representatives of a Chinese conglomerate. In exchange for the bribes, Thiam allegedly used his official position in the Guinean government to enable affiliates of the Chinese conglomerate to obtain exclusive and highly-valuable investment rights in a wide range of sectors of the Guinean economy, including near total control of Guinea’s valuable mining sector.
In order to conceal the bribes, Thiam allegedly opened a bank account in Hong Kong and misreported his occupation to conceal his status as a government official. Thiam later transferred millions of dollars in bribe proceeds into the United States, where he allegedly lied to two U.S. banks to conceal both his position as a foreign government official and the source of the funds. Thiam allegedly spent the bribe proceeds on, among other things, construction work on his estate in upstate New York.
A complaint is merely an allegation, and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI’s International Corruption Squads in New York City and Los Angeles are investigating the case. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption.
Assistant Chief Tarek Helou, Senior Trial Attorney Jason Linder and Trial Attorney Sarah Edwards of the Criminal Division’s Fraud Section, Senior Trial Attorney Steven Parker of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and Assistant U.S. Attorney Elisha Kobre of the Southern District of New York are prosecuting the case. AFMLS Trial Attorney Alexis Loeb previously investigated the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Framingham Housing Authority Employee Pleads Guilty to Embezzling Rent PaymentsRead the Press Release
BOSTON – A Milford woman pleaded guilty today in U.S. District Court in Boston in connection with embezzling over $70,000 in rent payments owed to the Framingham Housing Authority (FHA).
Rosa A. Famania, 33, pleaded guilty to one count of embezzling money from an agency receiving federal funds. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for March 14, 2017.
In February 2010, Famania began working for FHA as an accounting assistant. She resigned from her position in August 2015, shortly after FHA suspended her in connection with an internal investigation into missing rent payments. Famania’s responsibilities at the FHA included collecting cash rent payments from FHA tenants; recording these cash payments in the FHA electronic accounting system; securing these cash payments in a locked cash box; and depositing the cash payments into an FHA bank account.
Between February 2014 and August 2015, Famania stole approximately 181 cash rental payments totaling $70,649 from FHA and utilized an FHA accounting software program to assist in disguising the theft. When Famania came into possession of the rent payments, she did not deposit the payments into the FHA bank account. Instead, she kept the cash rent payments and adjusted the tenants’ balance downward utilizing the accounting software. Approximately $55,100 in cash was deposited into an account maintained by Famania between July 2014 and July 2015. From February 2014 to July 2014, nineteen U.S. Postal Service money orders totaling $17,900 were deposited into another bank account maintained by Famania.
The charge of embezzling money from an agency receiving federal funds provides a sentence of no greater than 10 years in prison, three years of supervised release, and 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; Christina Scaringi, Special Agent in Charge of the United States Department of Housing and Urban Development, Office of Inspector General; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Framingham Police Chief Kenneth Ferguson; and Executive Director of the Framingham Housing Authority Stephen G. Keane, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney William F. Bloomer of Ortiz’s Public Corruption Unit.
Flight Attendant Who Tried to Bring nearly 60 Pounds of Cocaine through Security at LAX Pleads Guilty to Federal Drug ChargeRead the Press Release
LOS ANGELES – A former JetBlue flight attendant who tried to bring nearly 60 pounds of cocaine through a security checkpoint at Los Angeles International Airport by using her “known crewmember” credentials has pleaded guilty to conspiring to traffic narcotics.
Marsha Gay Reynolds, 32, of Jamaica, New York, pleaded guilty yesterday afternoon to one count of conspiracy to possess and to distribute cocaine.
Reynolds pleaded guilty before United States District Judge Virginia A. Phillips. Reynolds is scheduled to be sentenced by United States District Judge Christina A. Snyder on March 13. Because of the quantity of narcotics involved in this case, Reynolds faces a mandatory minimum sentence of 10 years in federal prison. The statutory maximum sentence is life.
On March 18, Reynolds had just under 27 kilograms of cocaine in her luggage as she attempted to board a JetBlue flight in Terminal 4 at LAX, according to court documents. After showing her official badge and identification to the Transport Security Administration officer on duty at the known crewmember checkpoint, Reynolds was randomly selected for additional screening. Reynolds was then escorted to a secondary screening area. Upon arriving at this checkpoint, Reynolds dropped her luggage, removed her shoes, and fled the area, running down an upward-traveling escalator and away from TSA officers.
Reynolds pleaded guilty to a conspiracy charge filed Friday in United States District Court. According to the “First Superseding Information,” Reynolds was working with an unindicted co-conspirator who supplied her with the narcotics seized at LAX. The co-conspirator supplied Reynolds with narcotics and the proceeds of drug sales so she could transport them between Los Angeles and New York. Reynolds admitted these allegations when she pleaded guilty.
“This defendant violated the trust placed in her when she received clearance to travel through our nation’s airports without the typical security checks,” said United States Attorney Eileen M. Decker. “This flight attendant played an important role in a significant narcotics-trafficking operation that posed a danger to the travelers and employees at major U.S. airports.”
Reynolds has been in custody since March 23, when she surrendered herself to the Drug Enforcement Administration at John F. Kennedy International Airport in New York.
This investigation is being conducted by the Los Angeles International Airport Criminal Enterprise Task Force (LAACETF), an inter-agency task force based at LAX. The Task Force, which includes representatives of the FBI, the DEA, United States Customs and Border Protection, the Transportation Security Administration, the Los Angeles International Airport Police Department, the Los Angeles Police Department, and the Los Angeles Sheriff’s Department. The LAACETF provides a coordinated law enforcement effort to target airport/airline internal criminal enterprises that use the aviation system to transport large amounts of illicit drugs throughout the United States and various international destinations. The LAACETF focuses on LAX and other Southland airports, including John Wayne International Airport, the Los Angeles/Ontario International Airport, the Long Beach Airport, Bob Hope Airport, the Van Nuys Airport, and the Santa Monica Airport.
This matter is being prosecuted by Assistant United States Attorney Reema M. El-Amamy of the Organized Crime Drug Enforcement Task Force.
Five Individuals Indicted in December 2016 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the December 2016 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
ALEXANDRA ELAINE BURRIS, age 27, of Detroit, Michigan
Possession With Intent To Distribute Heroin
Possession With Intent To Distribute CocaineThe Indictment alleges that on or about August 11, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by no more than 20 years imprisonment, a fine up to $1,000,000.00 or both.
The Indictment further alleges that on or about August 11, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of cocaine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by no more than 20 years imprisonment, a fine up to $1,000,000.00 or both.
The charges arose from an investigation by the McAlester Police Department, and the Drug Enforcement Administration.
Assistant United States Attorney Rob Wallace
AARON EMIL WEEDEN, age 37, of Wagoner, Oklahoma
Felon In Possession Of Firearm
The Indictment alleges that on or about November 13, 2016, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce a firearm, which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by no more than 10 years imprisonment, a fine up to $250,000.00 or both.
The charge arose from an investigation by the Wagoner Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Kristin Harrington
BOBBY LEE RUPPEL, JR., age 37, of Del City, Oklahoma
Felon In Possession Of Firearm
The Indictment alleges that on or about November 1, 2016, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce a firearm, which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by no more than 10 years imprisonment, a fine up to $250,000.00 or both.
The charge arose from an investigation by the Henryetta Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Kristin Harrington
CHAD ANTHONY COX, age 27, of Dallas, Texas
Felon In Possession Of Firearm
Possession With Intent To Distribute Methamphetamine
Possession Of A Firearm In Furtherance Of A Drug Trafficking CrimeThe Indictment alleges that on or about October 6, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce a firearm, which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by no more than 10 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that on or about October 6, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by no more than 20 years imprisonment, a fine up to $1,000,000.00 or both.
The Indictment further alleges that on or about October 6, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly possess a firearm, in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine as alleged in Count Two, in violation of Title 18, United States Code, Section 924(c)(1)(A), punishable by no longer than 60 months imprisonment consecutive to any other sentence imposed, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Chickasaw Nation Tribal Police, and the Drug Enforcement Administration.
Assistant United States Attorney Dean Burris
JEFFREY SCOTT HOFFMAN, age 46, of Park Hill, Oklahoma
Possession With Intent To Distribute Methamphetamine
Possession Of Unregistered Firearm (Sawed-Off Shotgun)The Indictment alleges that on or about November 5, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by no more than 20 years imprisonment, a fine up to $1,000,000.00 or both.
The Indictment further alleges that on or about November 5, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly possess a shotgun having a barrel less than 18 inches in length, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record, in violation of Title 26, United States Code, Sections 5861(d), 5841, 5845(a) and 5871, punishable by no more than 10 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Hulbert Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Dean Burris
Financial Executive Pleads Guilty to $540K Embezzlement SchemeRead the Press Release
RICHMOND, Va. – Troy Baldridge, 48, of Richmond, pleaded guilty today to charges related to his role in an investment scheme that caused a loss of over $540,000.
According to the statement of facts filed with the plea agreement, Baldridge was a Senior Vice President and Director of Managed Investments at an investment brokerage in Glen Allen. He also was a registered investment advisor and registered broker-dealer. From September 2011 through July 2016, on at least 15 occasions, Baldridge transferred funds from client investment accounts to Baldridge’s own accounts for his own use. Baldridge forged the requisite client signatures to effectuate the transactions when necessary. In total, Baldridge embezzled $543,206.23 from various individual clients.
Baldridge waived indictment and pleaded guilty to a criminal information. Baldridge faces a maximum penalty of 20 years in prison sentenced on March 10, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Terrence P. McKeown, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after the plea was accepted by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Jessica D. Aber is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-148.
Federal jury finds Ball man guilty of stealing more than $100,000 in Veterans Affairs benefitsRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a federal jury found a Ball man guilty of stealing more than $100,000 in Veterans Affairs benefits from a deceased woman’s bank account.
Tracy Marler, 51, of Ball, La., was found guilty of one count of theft of government property. United States District Judge Dee D. Drell presided over the trial, which took place Monday and ended today with the jury deliberating for 20 minutes. Evidence admitted at trial revealed that from February 25, 2008 until April 30, 2014, Marler withdrew $100,610.57 from a deceased woman’s account. The woman was receiving the benefits on behalf of her deceased husband who had served in the U.S. armed forces. Marler had a joint bank account with the woman. After she died in February of 2008, he continued to receive her Veterans Affairs benefit payments to which he was not entitled. Marler was a friend of the deceased woman. He provided care, which included running errands, managing finances and maintaining her home.
Marley faces 10 years in prison, three years of supervised release, restitution and a $250,000 fine. Sentencing has been set for March 17, 2017.
The Veterans Affairs-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
Federal Inmate Charged with Attempting to Obtain Suboxone in PrisonRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., was indicted by a federal grand jury in Johnstown on a charge of attempt to obtain contraband in prison, Acting United States Attorney Soo C. Song announced today.
The indictment named Michael Jackson, 27.
According to the indictment presented to the court, on October 12, 2016, Jackson attempted to obtain a quantity of Suboxone.
The law provides for a maximum sentence of 20 years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Jackson.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Court Sentences Davenport Man for Felon in Possession of a FirearmRead the Press Release
DAVENPORT, IA - On December 12, 2016, Herman Terrill Baylor, age 28, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 102 months in prison on the charge of Felon in Possessionof a Firearm, announced United States Attorney Kevin VanderSchel. Baylor was also ordered to serve three years of supervised release following the period of imprisonment and to pay $100 towards the Crime Victims’ Fund.
On August 12, 2016, Baylor pleaded guilty to this charge and admitted that he took possession of two shotguns in exchange for crack cocaine in December of 2016. The charge resulted from an investigation that was initiated when a concerned citizen alerted the Davenport Police Department that Baylor had stashed the shotguns in the basement of a residence in Davenport. Baylor was prohibited from possessing firearms due to a December 26, 2007, conviction in the Scott County, Iowa District Court for the offense of Possession of Crack Cocaine with the Intent to Deliver.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Media Contact for this release is Rachel Scherle at 515-473-9300, or [email protected]
Employer Pleads Guilty to Stealing Funds for Job Assistance Administered by Atlanta Workforce Development AgencyRead the Press Release
ATLANTA – Kevin Edwards, a former political candidate and night club owner, entered a guilty plea today in federal court to stealing federal funds administered by the Atlanta Workforce Development Agency (AWDA).
In connection with the guilty plea, the U.S. Attorney's Office for the Northern District of Georgia announced today that it has reached a civil settlement with the City of Atlanta, on behalf of the AWDA, which agreed to pay over $1.86 million to resolve allegations that AWDA violated the False Claims Act in its expenditure of Department of Labor grant funds for the federal On-the-Job Training (OJT) program.
“The resolution of these related cases ends a troubled chapter for the AWDA,” said U. S. Attorney John A. Horn. "AWDA exercised lax oversight over the OJT program, and this lack of controls set the stage for Edwards and his companies to abuse the program and steal funds that were intended to help citizens develop skills and find jobs."
“This City of Atlanta settlement resolves the allegations that the AWDA failed to ensure that U.S. Department of Labor funds were used to benefit those who qualified for the Department’s On-the-Job Training Program. We will continue to investigate allegations of DOL grant fraud, especially when Americans workers may be deprived of training and employment opportunities.” stated Rafiq Ahmad, Special Agent-in-Charge of the Atlanta Regional Office of the U.S. Department of Labor, Office of Inspector General.
According to United States Attorney Horn, the indictment, and other information presented in court: AWDA’s OJT program was funded with grants from the United States Department of Labor. The purpose of the OJT program is to increase employment by encouraging companies to hire employees that need additional job skills that the employer is willing to provide in exchange for wage reimbursement. The ultimate goal of the OJT program is for the employer to hire the participant at the end of the OJT contract period.
Edwards, a former budget analyst with the City of Atlanta, political candidate and nightclub owner, owned or controlled three companies in Atlanta between 2010 and 2012. During this three-year period, the three companies owned or controlled by Edwards received approximately $649,000 in OJT funds from the AWDA.
In participating in the OJT program, Edwards falsely represented to AWDA that his companies, Cronus Development, LLC (Cronus), CGE Construction and Consulting, Inc. (CGE), and The Elite Academy and Learning Center (Elite), would hire and train employees with the goal of full-time employment. Instead, Edwards failed to provide training programs, submitted forged and fraudulent wage reimbursement requests for employees that never worked for his companies, and paid workers only a fraction of the salary reported to AWDA. More specifically, instead of receiving training, OJT employees for CGE and Cronus reported that they did odd jobs, including cleaning up properties, yard work and working at one of Edwards’ nightclubs. Despite these shortcomings, Edwards received full payments from AWDA through the OJT program.
After the Department of Labor initiated its investigation and identified criminal violations by Edwards and his companies, investigators initiated an investigation of AWDA’s oversight and management of OJT funds. The investigation identified no additional criminal violations, but resulted in a civil investigation of allegations of inadequate oversight and compliance with reporting regulations designed to ensure that OJT funds were administered properly.
The civil settlement resolves the United States’ claims that, between 2010 and 2014, AWDA falsely certified compliance with Department of Labor regulations related to OJT. The government alleged that, contrary to these regulations, AWDA distributed funds to employers that enrolled existing employees instead of new job seekers, failed to provide any training to the OJT enrollees, and hired highly skilled employees, including individuals with professional licenses, who were not eligible for OJT. The government also alleged that AWDA failed to provide any of the services required by Department of Labor regulations to participants prior to enrolling them in OJT. The claims settled in the civil settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia and the U.S. Department of Labor, Office of Inspector General.
Assistant United States Attorney David A. O’Neal handled the civil investigation and Jeffrey A. Brown is prosecuting the criminal case for the U.S. Attorney’s Office.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
El Departamento de Justicia Resuelve Una Queja de Discriminación Relacionada con la Inmigración Contra una Agencia de Empleo del Estado de UtahRead the Press Release
WASHINGTON – El Departamento de Justicia llegó a un acuerdo hoy que resuelve las quejas de que 1st Class Staffing, LLC (1st Class) discriminó a individuos que no son ciudadanos de los EE. UU pero que sí cuentan con autorización para trabajar, en contra de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés). 1st Class es una agencia de empleo con sede en Orem, Utah.
La investigación, liderada por la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con la Inmigración (OSC, por sus siglas en inglés), de la División de Derechos Civiles, halló que la sucursal de 1st Class en Fontana, California había solicitado de forma rutinaria a individuos que no fuesen ciudadanos estadounidenses –pero no a los que sí lo eran– que presentasen documentos migratorios específicos para establecer su autorización para trabajar. Al amparo de la INA, se le debe permitir a todo trabajador, incluidos aquellos que no son ciudadanos de los EE. UU., la posibilidad de elegir de la lista de documentos aceptables la documentación válida que desea presentar para demostrar su autorización para trabajar. Es ilegal que un empleador limite la elección de documentos de un empleado con base en su ciudadanía, estatus migratorio, o nacionalidad de origen.
Conforme a los términos del acuerdo de resolución, 1st Class deberá efectuar pagos retroactivos por concepto del sueldo perdido a la parte denunciante cuya denuncia motivó la investigación del departamento; pagar $17.600 en sanciones civiles a los Estados Unidos; participar en capacitación brindada por el Departamento sobre la disposición antidiscriminatoria de la INA y someterse a la supervisión por parte del Departamento.
“Los empleadores deben asegurar que su personal de recursos humanos, contratación y reclutamiento entienda e implemente las prácticas correctas de contratación para así evitar que se vulneren las leyes antidiscriminatorias,” declaró la Secretaria de Justicia Auxiliar Adjunta Principal, Vanita Gupta, jefa de la División de Derechos Civiles del Departamento de Justicia. “Felicitamos a 1st Class por su cooperación y compromiso de eliminar barreras innecesarias e ilícitas al empleo.”
La OSC es responsable por hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía, estatus migratorio, o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad de empleo; las represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias federales, llame a la línea directa de la OSC para trabajadores al 1‑800‑255‑7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito en www.justice.gov/crt/about/osc/webinars.php; mande un correo electrónico a [email protected] o visite la página web de la OSC en www.justice.gov/crt/about/osc.
Los postulantes o empleadores que creen haber sido víctimas de: (1) requisitos documentales diferentes con base en su estatus de ciudadanía, estatus migratorio o nacionalidad de origen o (2) discriminación con base en su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben comunicarse con la antemencionada línea directa para trabajadores para pedir ayuda.
Online Settlement (en inglés)
East Texas Laboratory Company and Owners Agree to $3.75 Million Payment for False Medicare ClaimsRead the Press Release
TYLER, Texas – Elite Lab Services, LLC, along with its husband-and-wife owners Gerard and Suzanne Dengler, will pay the United States $3.75 million after billing Medicare for tens of thousands of miles that were never driven by Elite Lab’s personnel, announced Acting United States Attorney Brit Featherston.
“The United States Attorney’s Office for the Eastern District of Texas continues to combat white-collar fraud at every turn,” said Acting U.S. Attorney Featherston. “Medicare is designed to ensure that this country’s elderly have access to vital health care services. Unfortunately, some providers fraudulently raid these limited public funds for purely personal gain—misconduct that our office will tirelessly prosecute.”
In July 2014, former Elite Lab employee Karen Malcolm filed a lawsuit under the qui tam provisions of the False Claims Act. Ms. Malcolm filed her suit in the Eastern District of Texas in an action captioned United States ex rel. Malcolm v. Elite Lab Services, LLC, et al., Case Number 6:14-cv-662. In her action, Ms. Malcolm alleged, among other things, that the defendants inflated mileage claims submitted to Medicare from approximately 2010 through 2014. Ms. Malcolm approached the Denglers in the spring of 2014 to voice her concerns about the billing practices. Ms. Malcolm claimed the fraudulent billing was not corrected, and she then resigned her employment with Elite Lab.
The United States intervened in the action for purposes of settlement. The Denglers and Elite Lab agreed to pay the United States $3.75 million to settle the False Claims Act lawsuit. As part of the settlement announced today, the Denglers and Elite Lab admit they submitted false claims to Medicare—claims that contained inflated mileage calculations beyond those actually driven by Elite Lab employees. The settlement also resolves a separate lawsuit in which the United States sought to forfeit funds and property obtained by the Denglers and Elite Lab through their fraudulent conduct.
The False Claims Act permits a private citizen (called a “relator”) with knowledge of fraud against the Government to bring a lawsuit on behalf of the United States and to share in the recovery. Under the settlement announced today, Ms. Malcolm will receive a 21% share of the United States’ recovery, a total of $787,500.00.
“The allegations in this case are representative of profiteering at the expense of Medicare,” said HHS OIG SAC CJ Porter. “The Medicare program was fraudulently billed for excessive mileage driven to collect lab specimens. These abuses are a threat to the viability of Medicare and together with our law enforcement partners, we will doggedly pursue all manner of fraud against Medicare.” As a result of this settlement, Elite Lab Services, LLC will be excluded from participating in Medicare for eight years, Gerard Dengler will be excluded for 10 years, and Suzanne Dengler will be excluded for eight years, according to SAC Porter.
This matter was investigated by the Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the United States Attorney’s Office for the Eastern District of Texas. The civil settlement was negotiated by Assistant U.S. Attorney Joshua Russ. The civil forfeiture action was prosecuted by Assistant U.S. Attorney Bob Wells.
District Man Sentenced to 12 Years in Prison for Attacking Woman at Southeast Washington ParkRead the Press Release
WASHINGTON - Tayshawn Sellers, 18, of Washington, D.C., was sentenced today to 12 years in prison for attacking a woman last spring at a Southeast Washington park, U.S. Attorney Channing D. Phillips announced.
Sellers pled guilty in September 2016, in the Superior Court for the District of Columbia, to a charge of assault with intent to kill while armed. He was sentenced by the Honorable Michael Ryan. Upon completion of his prison term, Sellers will be placed on five years of supervised release.
According to the government’s evidence, on the evening of April 21, 2016, Sellers and his 18-year-old cousin went with the victim to a wooded area behind the baseball field in Benning Park, in the 5100 block of Southern Ave SE. During their encounter with the victim, Sellers and his cousin started to kick, punch, and hit her all over her body. They left her lying naked from the waist down, badly injured, bleeding, and unable to move.
Sellers later returned to the crime scene, where the victim was still lying motionless in the wooded area where he had left her. Sellers repeatedly smashed a glass bottle into the victim’s face as she lay on the ground. When she was found by law enforcement at about 7:30 the next morning, she was naked from the waist down, bleeding, on broken glass. She could not communicate with the officers. She had severe trauma to her head and face, including major swelling and multiple lacerations to her face. She suffered extensive injuries from the defendant’s actions and remains disabled. Sellers was arrested April 22, 2016 and has remained in custody ever since.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Unit. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson, Paralegal Specialists Tierra Nanches and Angelina Slagle, and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. Finally, he acknowledged the efforts of Assistant U.S. Attorneys Julianne Johnston, Kenya Davis, and Anwar Graves, who prosecuted the case.
Department of Justice and the National Institute of Standards and Technology Name New Member of National Commission on Forensic ScienceRead the Press Release
The Department of Justice and the Department of Commerce’s National Institute of Standards and Technology (NIST) today announced the appointment of Randy Hanzlick, M.D. to the National Commission on Forensic Science (NCFS.) Dr. Hanzlick also accepted the invitation to serve as the NCFS Medicolegal Death Investigation subcommittee co-chair alongside NCFS Commissioner John Fudenberg.
The commission, created in 2013, develops forward-looking policy recommendations for the Attorney General to enhance the practice and improve the reliability of forensic science. The commission is co-chaired by Deputy Attorney General Sally Q. Yates, and Under Secretary of Commerce for Standards and Technology and NIST Director Dr. Willie E. May. Deputy Assistant Administrator Nelson Santos of the Drug Enforcement Administration’s Office of Forensic Sciences and Special Assistant John M. Butler to the NIST Director for Forensic Science serve as vice-chairs.
“The Department of Justice remains committed to advancing the use of forensic science and the commission continues to make important recommendations and be an integral part of that work,” said Deputy Attorney General Yates. “Medicolegal death investigation has been among the commission’s areas of focus and has led to several recommendations. I look forward to Dr. Randy Hanzlick continued discussions and contributions in this area.”
“We are grateful to Dr. Hanzlick for his willingness to serve on this very important commission,” said Under Secretary May. “We could not accomplish our goal of improving the practice of forensic science without such nationally respected experts. His addition will really strengthen our efforts around medical death investigations.”
Dr. Randy Hanzlick is recently retired from his position of 18 years as Chief of the Fulton County Medical Examiner’s Office. He has 33 years of experience as a forensic pathologist, including nearly a decade at the Centers for Disease Control and Prevention (CDC). He is a past President of the National Association of Medical Examiners (NAME) and co-chaired the Scientific Working Group on Medicolegal Death Investigation with fellow Commissioner John Fudenberg. He has over 200 publications and has been a faculty member of Emory University. Dr. Hanzlick has received numerous professional awards, including the Helpern Laureate Award, the highest honor awarded by NAME. Throughout his career, Dr. Hanzlick has been involved in efforts to improve medicolegal death investigation systems, guidelines and standards of forensic pathology practices and the education of young forensic pathologists. He is credited with assisting in the development of CDC Sudden Unexplained Infant Death forms, National Institute of Justice (NIJ) Death Scene Investigation Guidelines and the NIJ National Missing and Unidentified program.
Dr. Hanzlick replaces Dr. Vincent Di Maio, who recently resigned from the commission.
The National Commission on Forensic Science includes federal, state and local forensic science service providers; research scientists and academics; law enforcement officials; prosecutors, defense attorneys and judges; and other stakeholders from across the country. This breadth of experience and expertise reflects the many different entities that contribute to forensic science practice in the U.S. and will ensure that these broad perspectives are represented on the commission and in its work.
The commission’s next quarterly meeting will be held from Jan. 9 to 10, 2017, at the Office of Justice Programs, 3rd Floor Main Conference Room, 810 7th Street, N.W., Washington, D.C. 20531. More information about the commission can be found at http://www.justice.gov/ncfs.
Department of Justice Will Not Challenge Commercial Mailing Pricing Aggregation ServiceRead the Press Release
The Department of Justice announced today that it will not challenge a proposal by corporate affiliates Amadeus Group LLC (Amadeus) and Mystic Logistics LLC (Mystic) for Amadeus to offer a pricing aggregation service to subscribers that are involved in the commercial mailing business. The department’s position was stated in a business review letter to counsel for Amadeus and Mystic from Acting Assistant Attorney General Renata B. Hesse for the Antitrust Division.
According to representations made by Amadeus and Mystic, Amadeus’s service would allow a subscriber to upload details about a particular commercial mailing job, including subscriber data for the specific job request and third party data, such as pricing and other information, related to the job request. The Amadeus pricing algorithm then would calculate various postage, packaging and transportation options that the subscriber could use to fulfill its job, allowing the subscriber to choose the most efficient logistics and pricing for its bulk commercial mailing.
Although exchanging price and other competitive information can facilitate anticompetitive coordination among competitors, Amadeus and Mystic have designed the proposed service to prevent such information sharing. To this end, the proposed service will contain numerous safeguards to ensure that neither the nonpublic information a subscriber provides to the service nor the commercial mailing options provided by the service to a subscriber will be shared with other subscribers or with third parties. Additionally, although Mystic provides transportation support services for commercial mailings in competition with third parties whose transportation support services data and pricing information might be uploaded by a subscriber, the Amadeus service will include encryption protection to ensure that neither Amadeus nor Mystic can access that third-party information.
Based on the information submitted and representations made by Amadeus and Mystic, the department has no present intention to challenge the operation of Amadeus’s proposed pricing aggregation service.
Under the department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the division currently intends to challenge the action under the antitrust laws based on the information provided. The department reserves the right to challenge the proposed action under the antitrust laws if it produces anticompetitive effects.
A file containing the business review request and the department’s response may be examined in the Antitrust Documents Group of the Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 1010, Washington, D.C. 20530. After a 30-day waiting period, the documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure.
Amadeus Business Review Letter
Davon Lymon Pleads Guilty to Another Federal Firearms ChargeRead the Press Release
ALBUQUERQUE – Davon Lymon, 35, of Albuquerque, N.M., pleaded guilty this afternoon to violating the federal firearms laws by unlawfully possessing a firearm on May 27, 2016. The charge to which Lymon entered a guilty plea today is Count 2 of a four-count superseding indictment charging Lymon with violating the federal firearms laws.
Chief U.S. District Judge M. Christina Armijo previously returned a guilty verdict against Lymon on Count 4 of the four-count superseding indictment on Oct. 28, 2016. Count 4 charged Lymon with being a felon in possession of a firearm and ammunition on Oct. 21, 2015, the day on which he allegedly shot Officer Daniel Webster of the Albuquerque Police Department (APD). Officer Webster died on Oct. 29, 2015, as a result of injuries he allegedly sustained during the shooting, and Lymon has been charged with murdering Officer Webster in a separate state case. Lymon has yet to answer to the murder charged in state court and is presumed innocent unless found guilty.
Under the terms of the plea agreement pursuant to which Lymon entered today’s guilty plea, the United States will dismiss Counts 1 and 3 of the superseding indictment after Lymon has been sentenced on Counts 2 and 4. Count 1 charged Lymon with unlawfully possessing a firearm on May 27, 2015 and Count 3 charged him with unlawfully possessing a stolen firearm in May 2015.
The aforementioned four-count superseding indictment was filed in one of the two federal cases against Lymon, a prior felon with convictions for voluntary manslaughter, aggravated battery with a deadly weapon resulting in great bodily harm, fraud, and forgery.
In the second federal case, Lymon was charged with distributing heroin on Sept. 11, 2015 and Oct. 2, 2015, and unlawfully possessing a firearm on Oct. 2, 2015, in Bernalillo County, N.M. Lymon pled guilty to the three charges in the heroin trafficking case on May 9, 2016, without the benefit of a plea agreement.
At sentencing, which has not been scheduled, Lymon faces a statutory maximum penalty of ten years in prison on each of the three firearms charges on which he has been convicted. Lymon also faces a statutory maximum penalty of 20 years in prison on the two heroin trafficking charges.
The Albuquerque office of ATF and APD investigated the firearms case, with assistance from the Albuquerque office of the FBI, the U.S. Marshals Service, the New Mexico State Police, the Bernalillo County Sheriff’s Office, the Rio Rancho Police Department and the New Mexico Transportation Police Division. The heroin trafficking case was investigated by the Albuquerque offices of ATF and DEA.
Assistant U.S. Attorneys Jacob A. Wishard and Kimberly A. Brawley are prosecuting the two federal cases against Lymon as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Davenport Man Sentenced for Illegally Possessing FirearmRead the Press Release
DAVENPORT, IA – On December 12, 2016, Brandon Marquis Kelly, 31, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 96 months in prison for Felon in Possession of a Firearm, announced United States Attorney Kevin E. VanderSchel. Kelly was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund.
Kelly pleaded guilty to Felon in Possession of a Firearm on July 22, 2016. There was no plea agreement in the case. According to court documents, Kelly possessed a loaded Hi-Point .40 caliber semi-automatic pistol at an apartment complex in Davenport, Iowa, on December 18, 2015. Kelly discharged the firearm, causing a bullet to enter the apartment unit directly below the unit Kelly occupied, damaging both the upstairs and downstairs unit. Kelly has one prior felony conviction for Delivery of a Controlled Substance, cocaine, in 2010 in Rock Island County, Illinois. He also has prior convictions for Battery, Domestic Abuse Assault without Intent Causing Injury, Domestic Abuse Assault, and Domestic Abuse Assault – second offense.
This matter was investigated by the Davenport Police Department’s Tactical Operations Bureau and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Media Contact for this release is Rachel Scherle at 515-473-9300, or [email protected]
Corpus Christi Gang Member Sentenced for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Corpus Christi man has been handed a significant sentence following his conviction of production of child pornography, announced U.S. Attorney Kenneth Magidson. Jesus Villalobos pleaded guilty Sept. 27, 2016, admitting he enticed an 11-year-old victim into sending him sexually explicit photographs.
Today, Senior U.S. District Judge Hayden Head ordered Villalobos to serve 300 months in prison. In handing down the sentence, Judge Head noted that the defendant has a career of criminal activity which includes violence. Additional information was also presented today including the testimony of an agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) who stated that Villalobos is a documented member of the Texas Syndicate prison gang. The agent also testified that cellular telephone data showed Villalobos made arrangements to attempt to meet the victim and traveled to a park near the victim’s house for that purpose. Villalobos was further ordered to pay $10,000 in restitution to the victim and will serve 25 years of supervised release following completion of her prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
In February 2016, authorities learned Villalobos had been communicating via cellular telephone text messages and a social media application with an 11-year-old female. During those communications, Villalobos enticed the victim into sending him sexually explicit photographs of herself.
In April 2016, law enforcement executed a search warrant at the Villalobos residence and seized various electronic devices. A forensic analysis on those devices led to the discovery of several photographs of the child that were sexually explicit in nature.
Villalobos will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation with the assistance of the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Conagra Subsidiary Sentenced in Connection with Outbreak of Salmonella Poisoning Related to Peanut ButterRead the Press Release
ConAgra Grocery Products LLC, a subsidiary of ConAgra Foods Inc., today pleaded guilty to a criminal misdemeanor charge alleging the shipment of contaminated peanut butter linked to a 2006 through 2007 nationwide outbreak of salmonellosis, or salmonella poisoning, the Department of Justice announced today. Following its guilty plea, the company was sentenced to pay an $8 million criminal fine and forfeit an additional $3.2 million in assets. The sentence represents the largest fine ever paid in a food safety case. ConAgra Grocery Products LLC is based in Omaha, Nebraska, with a manufacturing facility in Sylvester, Georgia.
The company pleaded guilty pursuant to a plea agreement filed last year in federal district court in the Middle District of Georgia. Senior U.S. District Court Judge W. Louis Sands accepted the company’s guilty plea and imposed the sentence proposed in the plea agreement. In pleading guilty to violating the federal Food, Drug and Cosmetic Act, the company admitted that it introduced Peter Pan and private label peanut butter contaminated with salmonella into interstate commerce during the salmonellosis outbreak.
“This case demonstrates companies – both large and small - must be vigilant about food safety,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We rely every day on food processors and handlers to meet the high standards required to keep our food free of harmful contamination.”
In February 2007, the U.S. Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC) announced that an ongoing outbreak of salmonellosis cases in the United States could be traced to Peter Pan and private label peanut butter produced and shipped from the company’s Sylvester, Georgia, peanut butter plant. The company voluntarily terminated production at the plant on Feb. 14, 2007, and recalled all peanut butter manufactured there since January 2004. The CDC eventually identified more than 700 cases of salmonellosis linked to the outbreak with illness onset dates beginning in August 2006. The CDC estimated that thousands of additional related cases went unreported. The CDC did not identify any deaths related to the outbreak.
The criminal information specifically alleged that on or about Dec. 7, 2006, the company shipped from Georgia to Texas peanut butter that was adulterated, in that it contained salmonella and had been prepared under conditions whereby it may have become contaminated with salmonella. The company admitted in the plea agreement that samples obtained after the recall showed that peanut butter made at the Sylvester plant on nine different dates between Aug. 4, 2006, and Jan. 29, 2007, was contaminated with salmonella. Environmental testing conducted after the recall identified the same strain of salmonella in at least nine locations throughout the Sylvester plant.
“Consumers are at the mercy of food merchants when it comes to the wholesomeness and healthiness of the food we consume and, as the result, a great responsibility is imposed by law on those merchants and manufacturers,” said U.S. Attorney G. F. “Pete” Peterman III for the Middle District of Georgia. “Likewise, agriculture is Georgia’s largest industry and peanuts and peanut products are a major factor in the health of that industry. While ConAgra did take corrective action eventually, by failing to timely recognize and rectify the problem of salmonella contamination, this company damaged the health of both public consumers and of the agricultural industry overall. I commend my staff, that of the Consumer Protection Branch of the Civil Division of the U.S. Department of Justice, and the investigators of the FDA, for the excellent work by all in bringing this incident to this conclusion and I hope that it will serve as a reminder to others in the industry of the high cost of failing to protect the public that relies on them to properly meet this responsibility.”
As part of the plea agreement, the company admitted that it had previously been aware of some risk of salmonella contamination in peanut butter. On two dates in October 2004, routine testing at the Sylvester plant revealed what later was confirmed to be salmonella in samples of finished peanut butter. Company employees attempting to locate the cause of the contamination identified several potential contributing factors, including an old peanut roaster that was not uniformly heating raw peanuts, a storm-damaged sugar silo, and a leaky roof that allowed moisture into the plant and airflow that could allow potential contaminants to move around the plant. As stated in the plea agreement, while efforts to address some of these issues had occurred or were underway, the company did not fully correct these conditions until after the 2006 through 2007 outbreak. In public statements after the 2007 recall, company officials hypothesized that moisture entered the production process and enabled the growth of salmonella present in the raw peanuts or peanut dust.
The company also admitted in the plea agreement that between October 2004 and February 2007, employees charged with analyzing finished product tests at the Sylvester plant failed to detect salmonella in the peanut butter, and that the company was unaware some of the employees did not know how to properly interpret the results of the tests.
“Product safety has to be a high priority for every manufacturer of foods sold in the United States” says Stephen M. Ostroff, Deputy Commissioner for Foods and Veterinary Medicine at the FDA. “FDA is working with food producers to promote compliance with food safety requirements, but if problems occur and are willfully ignored, we will use all available resources to protect American consumers from unsafe food.”
Following the outbreak and shutdown, the company made significant upgrades to the Sylvester plant to address conditions the company identified after the 2004 incident as potential factors that could contribute to salmonella contamination. The company also instituted new and enhanced safety protocols and procedures regarding manufacturing, testing and sanitation, which it affirmed in the plea agreement it would continue to follow.
The case was prosecuted by the U.S. Attorney’s Office of the Middle District of Georgia and the Civil Division’s Consumer Protection Branch. This matter was investigated by the FDA’s Office of Criminal Investigations.
Colorado Man Pleads Guilty to Enticement of MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NATHANIEL SMITH, 29, of Aurora, Colorado, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of enticement of a minor to engage in sexual activity.
According to court documents and statements made in court, in January 2016, SMITH used his cell phone and internet-based messaging and video chatting services, including Kik and Skype, to entice a 13-year-old female to engage in sexual activity.
SMITH has been detained since January 25, 2016, when he was arrested on related state charges in New London.
Judge Shea scheduled sentencing for April 7, 2017, at which time SMITH faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
This matter is being investigated by the Federal Bureau of Investigation, the New London Police Department and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Chicago Man Pleads Guilty to Conspiring to Murder U.S. Citizen in Bali, IndonesiaRead the Press Release
A Chicago man pleaded guilty today to conspiring with his cousin and his cousin’s girlfriend to kill a U.S. citizen at an Indonesian resort in 2014.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois and Special Agent in Charge Michael J. Anderson of the FBI’s Chicago Division made the announcement.
Robert Ryan Justin Bibbs, 26, of Chicago, pleaded guilty to one count of conspiracy to commit the foreign murder of a U.S. national before U.S. District Judge Rebecca R. Pallmeyer of the Northern District of Illinois, who set sentencing for March 23, 2017.
According to admissions made in connection with his plea agreement, in 2014, Bibbs’s cousin Tommy Schaefer informed Bibbs that Heather Mack, Schaefer’s girlfriend, had offered Schaefer approximately $50,000 to kill her mother, Sheila Von Wiese. In approximately late July or early August 2014, Mack told Bibbs that she wished her mother was dead and she asked Bibbs whether he knew someone who would kill her mother in exchange for money. Bibbs knew that Von Wiese was wealthy and that she and Mack were taking a vacation in Indonesia in early August 2014. Schaefer had conveyed to Bibbs that Mack was planning to kill her mother while they were overseas and Schaefer intended to travel to Indonesia to join Mack.
According to the plea agreement, while Schaefer waited for his flight to depart O’Hare International Airport, he texted Bibbs, “In about a year or so I’ll have all that money . . . Not all of it . . . A couple mil prob.” Bibbs understood this to mean that Von Wiese’s murder was imminent, that Schaefer expected to receive millions of dollars as a result of the murder and that he would share some of this money with Bibbs.
According to the plea agreement, after Schaefer arrived in Bali, he informed Bibbs that Mack had unsuccessfully attempted to kill Von Wiese. Bibbs then texted Schaefer alternative ways to kill Von Wiese, including by drowning her. A short time later, Schaefer texted Bibbs that, “She wants me to right now . . . While she snoozing,” which Bibbs understood to mean that Mack asked Schaefer to help her kill her mother while Von Wiese was asleep. In response, Bibbs texted Schaefer, “Go sit on her face wit a pillow then,” suggesting that Schaefer should suffocate Von Wiese.
In addition, Bibbs admitted that Schaefer then texted asking what Bibbs would do, to which Bibbs replied that Schaefer should murder Von Wiese as long as no cameras were present. Bibbs also counseled Schaefer to be careful and further encouraged his cousin to kill Von Wiese.
A short time later, Schaefer bludgeoned Von Wiese to death, then, with Mack, stuffed Von Wiese’s body into a suitcase, placed the suitcase into a taxi cab and fled the resort. Schaefer and Mack were subsequently arrested and convicted in Indonesian court, and are serving respective 18- and 10-year sentences in prison.
The FBI investigated the case. Trial Attorneys Hope Olds and Christine Duey of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Bolling Haxall of the Northern District of Illinois are prosecuting the case.
Chicago Man Pleads Guilty to Aiding His Cousin and Heather Mack in the Murder of Mack’s Mother in Bali, IndonesiaRead the Press Release
CHICAGO — A Chicago man pleaded guilty in federal court today to charges he aided his cousin and Heather Mack in the 2014 killing of Mack’s mother at an Indonesian resort.
ROBERT RYAN JUSTIN BIBBS, also known as “Ryan Bibbs,” admitted in a plea agreement that he advised his cousin, Tommy Schaefer, and Mack about how to kill Mack’s mother, Sheila A. Von Wiese. Von Wiese, 62, was bludgeoned to death in her hotel room at the St. Regis Bali resort on Aug. 12, 2014.
Bibbs acknowledged in his plea agreement that he was aware of the couple’s plot to carry out the murder, and he counseled Schaefer on how to get away with it. Bibbs believed Schaefer would gain access to Von Wiese’s estate through Mack, and that Schaefer would share a portion of the inheritance with him, according to the plea agreement.
Bibbs, 26, pleaded guilty to one count of conspiracy to commit the foreign murder of a U.S. national. Per the plea agreement, the government and defendant’s counsel have agreed that the maximum sentence will be no more than 20 years in prison. Other than the agreed maximum prison term, the Court remains free to impose the sentence it deems appropriate. U.S. District Judge Rebecca R. Pallmeyer set sentencing for March 23, 2017, at 12:00 p.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
An Indonesian court in 2015 convicted Schaefer and Mack of charges related to Von Wiese’s murder. Schaefer was sentenced to 18 years in an Indonesian prison, while Mack was sentenced to ten years.
Evidence discovered by the FBI revealed that Bibbs and Schaefer engaged in several discussions via text message leading up to the killing. Mack and her mother shared a hotel room, and Schaefer arrived at the resort on the morning of the murder. Soon after his arrival, Schaefer sent a text message to Bibbs, who was in the United States. The message stated that Mack had unsuccessfully attempted to kill Von Wiese, the plea agreement states. Bibbs replied with advice about alternative ways to carry out the murder, including by drowning, the plea agreement states.
Later that morning Schaefer sent a text message to Bibbs, stating, in part, “She wants me to right now… While she snoozing,” which Bibbs understood to mean that Mack had asked Schaefer to help her kill Von Wiese, the plea agreement states. Bibbs replied to Schaefer, “Go sit on her face wit a pillow then,” according to the plea agreement. Bibbs intended this message to mean that Schaefer should go and suffocate Von Wiese, the plea agreement states. Subsequent messages from Bibbs encouraged Schaefer to kill Von Wiese but to be careful while doing so, according to the plea agreement.
A short time later, Schaefer entered the hotel room occupied by Mack and Von Wiese and bludgeoned Von Wiese to death, the plea agreement states. Schaefer and Mack subsequently stuffed Von Wiese’s body into a suitcase, placed the suitcase in a taxicab and fled the resort, the plea agreement states.
Schaefer and Mack were arrested the following day by police in Indonesia. Federal authorities in the U.S. arrested Bibbs on Sept. 23, 2015.
The government is represented by Assistant U.S. Attorney Bolling Haxall, as well as Hope Olds and Christine Duey, trial attorneys from the U.S. Department of Justice’s Human Rights and Special Prosecutions Section.
Cazenovia Man Sentenced to 5 Years on Fraud and Money Laundering ChargesRead the Press Release
SYRACUSE, NEW YORK – James P. Griffin, 71, of Cazenovia, was sentenced today to 5 years imprisonment, ordered to pay a $2,300 special assessment and $2,153,530.93 in restitution announced United States Attorney Richard S. Hartunian, IRS Criminal Investigation, New York Field Office Acting Special Agent in Charge Kathy A. Enstrom, and FBI Albany Division Special Agent in Charge Andrew Vale.
“This massive fraud caused harm that can never be fully repaid. Today’s sentence represents a measure of justice for the victims who will suffer the effects of these crimes for years to come,” said United States Attorney Richard S. Hartunian.
“Mr. Griffin knowingly mixed deceit and trickery into the financial well-being of individuals and created a recipe for devastation that could last a lifetime,” said Kathy A. Enstrom, Acting Special Agent in Charge, IRS Criminal Investigation, New York Field Office. “Today's sentencing demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain. IRS Criminal investigators will continue to use their financial expertise to identify and trace laundered funds in these types of fraud schemes.”
“Mr. Griffin’s fraudulent and criminal acts cost his victims millions of dollars,” said FBI Special Agent in Charge Andrew W. Vale. “At its most basic level, this is a crime about greed and abuse of trust. The FBI will continue working with our law enforcement partners to stop those who line their pockets at the expense of others.”
Griffin was found guilty of fraud and money laundering charges following a jury trial in federal court in July. He is the Chief Executive Officer of several companies using variations of the names 54 Freedom and 5 Ledyard, all headquartered at 5 Ledyard Avenue, Cazenovia, New York. The evidence at trial demonstrated that Griffin solicited over $1.6 million in sales through a scheme involving a financial product he named, “the 54 Freedom Charitable Gift Annuity.” Trial testimony established that Griffin promised that the product was backed by a highly-rated, major insurance carrier and would provide guaranteed lifetime income to the purchaser. The evidence showed that, in fact, Griffin knew the Charitable Gift Annuities were not underwritten by insurance companies, and purchasers received no payments after 2013.
The jury also found Griffin guilty of mail fraud based on a scheme to entice investors to use retirement funds to invest in his companies by falsely promising to protect them from the tax consequences of withdrawing funds from qualified retirement accounts. The total loss from both schemes is more than $2.1 million dollars.
This case was investigated by the Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorneys Edward R. Broton and Carina H. Schoenberger.
California Residents Sentenced to Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On December 12, 2016, Manuel Espinozaheather Jean Reekr, a 33 year-old resident of Pico Rivera, California, was sentenced by Senior United States District Court Judge James E. Gritzner to 240 months of imprisonment for Conspiring to Distribute Methamphetamine, and to 120 months of imprisonment for being a Prohibited Person in Possession of a Firearm, to run concurrently. Espinoza was also sentenced to five years of supervised release to follow the term of imprisonment.
Jose Luis Tizoc, a 23 year-old resident of San Diego, California, was also sentenced by Senior United States District Court Judge James E. Gritzner to 300 months of imprisonment for Conspiring to Distribute Methamphetamine, and to five years of supervised release to follow the term of imprisonment, announced United States Attorney Kevin E. VanderSchel.
A jury convicted these defendants at trial on June 27, 2016, finding the defendants guilty on all counts charged, being Conspiracy to Distribute Methamphetamine and Prohibited Persons in Possession of a Firearm. This case was the result of a large-scale investigation by law enforcement of methamphetamine trafficking that occurred in the Omaha-Council Bluffs metro area for approximately one year.
Beginning at least as early as November of 2014, and continuing through September of 2015, the defendants conspired with multiple other individuals to distribute at least 4.5 kilograms of methamphetamine in the Southern District of Iowa or elsewhere.
Other defendants who pled guilty for Conspiring to Distribute Methamphetamine and have been sentenced by Senior United States District Court Judge James E. Gritzner, include the following:
- Salvador Nunez Trejo, 120 months of imprisonment, followed by five years of supervised release;
- Jessica Moreno, 35 months of imprisonment, followed by three years of supervised release;
- Jaime Castillo Gomez, 168 months of imprisonment, followed by five years of supervised release;
- Kristopher Hatch, 151 months of imprisonment, followed by five years of supervised release;
- Jane Song, 60 months of imprisonment, followed by five years of supervised release;
- Grant M. Carman, 120 months of imprisonment, followed by five years of supervised release; and,
- Greg M. Price, 120 months of imprisonment, followed by five years of supervised release.
The investigation was conducted by the Federal Bureau of Investigation’s Greater Omaha Safe Streets Task Force and the Southwest Iowa Narcotics Enforcement Task Force. This case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
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Media Contact for this release is Rachel Scherle at 515-473-9300, or [email protected]
Bronx Tax Preparer Sentenced for Preparing and Filing False and Fraudulent Tax ReturnsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CHRISTOPHER AHERN was sentenced today to 30 months in prison for preparing and filing false and fraudulent tax returns that claimed more than $4.7 million in credits and expenses. AHERN pled guilty on July 5, 2016, before United States District Judge Deborah A. Batts, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Christopher Ahern used his clients’ tax returns to bilk the IRS of more than $3 million in fraudulent credits, pocketing more than a million dollars in fees. But because of the investigative efforts of the IRS, Ahern’s dishonest business is closed.”
According to the allegations in the Information to which AHERN pled guilty, other documents filed in Manhattan federal court, and statements made in court proceedings:
AHERN, owned and operated a tax preparation business called Get My Refund Fast, located in the Bronx, New York. From 2012 through 2013, AHERN’s business prepared and submitted to the Internal Revenue Service (“IRS”) nearly 5,000 tax returns. These tax returns were false and fraudulent in that they claimed education credits to which the clients were not entitled. The IRS issued approximately $3 million pursuant to the false and fraudulent returns AHERN filed. AHERN received more than $1.5 million in fees from his clients for preparing and filing the fraudulent returns.
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In addition to his prison term, AHERN, 40, of Little Neck, New York, was sentenced to three years of supervised release and ordered to pay $3 million in restitution.
Mr. Bharara praised the investigative work of the IRS, Criminal Investigations.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Shawn G. Crowley is in charge of prosecution.
British Man Who Was Arrested at Trump Rally Sentenced on Weapon and Disruption ChargesRead the Press Release
LAS VEGAS, Nev.—The British citizen who was arrested for attempting to seize the firearm of a Las Vegas Metropolitan Police Department officer at a Donald Trump rally in June 2016, was sentenced today to 12 months and one day in prison, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“The event’s security is a priority for the safety of the speaker, all attendees and law enforcement,” said U.S. Attorney Bogden. “We will continue working together with all our federal, state and local law enforcement partners to ensure the safety of all Nevada citizens and visitors.”
Michael Steven Sandford, 20, of England, was sentenced by U.S. District Judge James C. Mahan. Sandford pleaded guilty on Sept. 13, 2016, to one count of illegal alien in possession of a firearm and one count of impeding and disrupting the orderly conduct of government business and official functions.
On June 17, 2016, Sandford, who was unlawfully in the United States because he had overstayed his tourist visa that expired on Aug. 30, 2015, went to a gun range in Las Vegas and took shooting lessons using a rented Glock 9 millimeter handgun. The following day, on June 18, Sandford entered a political rally event for Donald Trump at the Mystere Theatre in the Treasure Island Casino. The entrance to the event was clearly marked with posters designating the grounds as restricted and under the protection of the U.S. Secret Service. Las Vegas Metropolitan Police Department officers were also present at the rally to assist with security. Inside the rally, Sandford approached a uniformed Las Vegas Metropolitan Police Department officer and asked to obtain Trump’s autograph. When the officer gave his verbal reply, Sandford, using both hands, grabbed the officer’s Glock 9 millimeter handgun and attempted to pull it from the holster. Sandford was immediately arrested and removed from the rally. Sandford’s conduct was disorderly and disruptive and required the U.S. Secret Service, other law enforcement, and security personnel to respond to the threat posed by Sandford, whose arrest also disrupted the speech given by Trump.
The case was investigated by the U.S. Secret Service and prosecuted by Assistant U.S. Attorney Jared L. Grimmer.
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Bend Businessman Pleads Guilty to Filing False Tax ReturnRead the Press Release
PORTLAND, Ore. – On Monday, December 12, 2016, Stephen Miles Munson, 72, of Bend, Oregon, pleaded guilty to willfully filing a false tax return. According to court documents, on his 2008 federal income tax return, Munson falsely claimed that he donated 200,000 shares of stock to the University of Oregon and Stanford University. He claimed the shares had an alleged value of $3.2 million. In reality, Munson never made the claimed donations.
On October 8, 2015, Munson was charged in a multi-count indictment with willfully filing a false tax return and bankruptcy fraud. He is a retired U.S. Army Captain with degrees from the University of Oregon and Stanford University. In 1991, Munson started Vulcan Power Company, a geothermal energy company in Bend, Oregon, and served in the company in different capacities, including president and chief executive officer, until 2008. In 2008, he sold a controlling interest in Vulcan Power Company for almost $15 million. On his 2008 federal income tax return, Munson fraudulently claimed that amount as a charitable deduction, and due to his alleged donation, he requested and fraudulently received a $407,019 refund from the Internal Revenue Service for the 2008 tax year. As part of his plea agreement, Munson agreed that the loss to the IRS for the false 2008 tax return was $2,422,202.
In January 2011, Munson entered into voluntary bankruptcy proceedings. According to court records, Munson submitted his false 2008 federal income tax return in support of his bankruptcy and omitted almost $200,000 in assets, more than $200,000 in gifts, more than $7 million in transfers to insiders and affiliates, and a $16,786 state tax refund from his original bankruptcy filings. As part of the plea agreement, Munson agreed that the loss associated with this conduct is approximately $7.5 million.
Sentencing is set for June 9, 2017, at 10:00 a.m. in the United States District Court in Portland, Courtroom 16 before Judge Michael W. Mosman. This case was investigated by the IRS Criminal Investigation Division and the FBI and is being prosecuted by Scott E. Bradford, Assistant United States Attorney for the District of Oregon.
Baltimore to Berkeley County heroin ring dismantled by federal indictmentRead the Press Release
MARTINSBURG, WEST VIRGINIA – A drug distribution network that caused large amounts of heroin to be transported from Baltimore to Berkeley County has been dismantled after the federal indictment of eighteen people, United States Attorney William J. Ihlenfeld, II, announced this morning.
Steven Robinson, 31, of Baltimore, Maryland, is alleged to have orchestrated a drug trafficking operation in which significant quantities of heroin were moved from Maryland to West Virginia and then redistributed. Terrard Ansor, 25, also of Baltimore, and Brittany Brooks, 28, of Randallstown, Pennsylvania, are alleged to have provided valuable assistance to Robinson in his operation of the enterprise, which began in August 2015 and ended last week. The fifteen other individuals named in the indictment assisted by redistributing the heroin, serving as couriers of heroin and currency, renting vehicles for couriers, or laundering monetary proceeds. Sophisticated investigative techniques were utilized by investigators to uncover the communication and travel patterns of those involved.
"Baltimore continues to be the greatest source of heroin and other illicit drugs for the Eastern Panhandle and anytime that we're able to identify and indict suppliers from that region, it's a good day for West Virginia," said U.S. Attorney Ihlenfeld. "We will continue to protect and defend our borders against out-of-state drug dealers with every tool available."
"These arrests demonstrate, once again, the critical role that task forces play in combating heroin trafficking and dismantling the criminal enterprises that attempt to take root in our communities,” said Special Agent in Charge Robert Johnson of the FBI’s Pittsburgh Field Office. “The FBI will continue to work with our local, state, and federal partners on the Eastern Panhandle Safe Streets Task Force to stop the flow of illegal drugs into the Eastern Panhandle of West Virginia and dismantle the criminal enterprises that facilitate the flow. We are grateful to our law enforcement partners who worked with us throughout this investigation and who are equally committed to keeping our neighborhoods safe.”
Since the time that the indictment was returned, five defendants have been taken into custody, six defendants were already incarcerated on unrelated charges, and four defendants have not yet been located, including:Terrard Ansor, 25, of Baltimore, Maryland; Stephanie Edmonds, 30, of Baltimore, Maryland; Brandon French, 33, of Charles Town, West Virginia;
Anyone with information on the whereabouts of the aforementioned individuals is encouraged to contact the Federal Bureau of Investigation at (412) 432-4000.
Assistant U.S. Attorney Anna Krasinski and Special Assistant United States Attorney Stephanie Taylor, also of the Berkeley County Prosecuting Attorney’s Office, are prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-Funded initiative, is investigating.
Ihlenfeld commended the efforts of all of the law enforcement officers involved in the investigation as well as the arrest operation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Argentine Sports Marketing Company Admits to Role in International Soccer Bribery Conspiracy and Agrees to $112 Million in Forfeiture and Criminal PenaltiesRead the Press Release
Earlier today, the U.S. Attorney’s Office for the Eastern District of New York filed a criminal information in Brooklyn federal court charging Torneos y Competencias S.A. (Torneos), a South American sports marketing company, with wire fraud conspiracy in connection with the company’s long-running participation in a scheme to corrupt international soccer. Torneos entered into a deferred prosecution agreement with the government in which the company admitted to its role in the 15-year scheme, including its role in paying tens of millions of dollars in bribes and kickbacks to a high-ranking FIFA official to secure his support for, among other things, the acquisition of rights to broadcast the 2018, 2022, 2026, and 2030 editions of the FIFA World Cup. As part of the deferred prosecution agreement, Torneos agreed to over $112.8 million in forfeiture and criminal penalties, and further agreed to implement enhanced internal controls and a rigorous corporate compliance program and to cooperate fully with the government’s ongoing investigation.
The charge and resolution were announced by Robert L. Capers, U.S. Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, FBI, New York Field Office; and Richard Weber, Chief, Internal Revenue Service (IRS) Criminal Investigation.
“Today’s announcement marks another important step in our continuing effort to root out corruption in international soccer and sends a clear message that corporate entities that rely on the U.S. financial system to enrich themselves through bribery will be held to account,” stated U.S. Attorney Capers. “Today, Torneos is being held to account for its conduct, but under new management it is also being given a chance to change the way the business of soccer is done in the future. This corporate resolution reflects the seriousness and sustained nature of Torneos’s criminal conduct as well as the prompt and decisive actions the company undertook to cooperate after the charges in this investigation were first unsealed last year. We are following the evidence where it leads and will continue to bring the individuals and entities who have corrupted soccer to justice.” Mr. Capers extended his thanks to the agents, analysts, and other investigative personnel with the FBI New York Eurasian Joint Organized Crime Squad and the IRS Criminal Investigation Los Angeles Field Office, as well as their colleagues abroad, for their continuing commitment and dedication over the course of this multi-year investigation.
“The only people who should be scoring in a soccer match are the players on the field, not the myriad of companies behind the scenes who see the game as an easy payday. As alleged in this case, we won’t allow businesses to use our financial systems for corrupt practices, and we will continue our search for those entities who are still doing so,” said FBI Assistant Director-in-Charge Sweeney.
“As today’s agreement reflects, Torneos y Competencias undermined the process of fair and open competition when they engaged in corrupt schemes to pay bribes in order to secure lucrative contracts,” said IRS Criminal Investigation Chief Weber. “The IRS is committed to aggressively investigating corporations that use a complex web of offshore entities and foreign and domestic bank accounts to enrich themselves through bribery.”
The Criminal Scheme
According to court documents, Torneos engaged in a 15-year scheme to corrupt international soccer through the payment of bribes and kickbacks to high-ranking officials of FIFA, the organization responsible for the regulation and promotion of soccer worldwide, as well as leading officials of the continental confederations and other soccer governing bodies that operate under the FIFA umbrella. Torneos conspired with others to systematically pay and agree to pay tens of millions of dollars in bribes and kickbacks to high-ranking officials of FIFA, two of FIFA’s confederations, CONCACAF and CONMEBOL, and several national member associations, including the Argentine national soccer federation (AFA), to obtain lucrative media and marketing rights to international soccer tournaments and matches. In addition to multiple editions of the FIFA World Cup, these tournaments and matches included the CONMEBOL Copa Libertadores, the CONMEBOL Copa América, the jointly organized CONMEBOL/CONCACAF Copa América Centenario, and international friendly matches played by the Argentinian national soccer team.
Torneos and its co-conspirators employed a variety of means to prevent the detection of their illegal activities and to conceal the location and ownership of proceeds of those activities, including the use of sham contracts and invoices, reliance on corrupt intermediaries and bankers, the creation and use of shell companies, and the use of cash. Torneos and its co-conspirators also relied on the integrity of the U.S. financial system and its banking institutions and wire facilities to facilitate their scheme, and on the growing U.S. market for soccer to generate profits from the scheme.
The following are three examples of the conduct encompassed in the wire fraud conspiracy charged in the information filed today and to which Torneos has admitted as part of its agreement with the government:
FIFA World Cup
Over the course of several years starting in approximately 2010, Torneos, at times with the assistance of an affiliate of a major broadcasting company headquartered in Latin America and one of its high-level executives, paid millions of dollars in bribes and kickbacks to a high-ranking and influential FIFA official in connection with the Latin American broadcasting company affiliate’s acquisition of rights to broadcast the 2018, 2022, 2026, and 2030 editions of the World Cup, and the subsequent purchase and exploitation by Torneos’s subsidiary TyC International B.V. (TyC International) of the rights to broadcast those editions of the World Cup to audiences in Argentina, Uruguay, and Paraguay. Among other things, the FIFA official – who was also a high-ranking official of CONMEBOL and AFA – used his enormous influence within the global governing body, in exchange for bribes, to push FIFA to sell lucrative rights to broadcast the 2026 and 2030 editions of the World Cup to the Latin American broadcasting company affiliate earlier than anticipated and long before the selection of host countries for those editions of the tournament.
CONMEBOL Copa Libertadores
Over the course of 15 years, Torneos executives and their co-conspirators systematically paid millions of dollars in annual bribe and kickback payments to high-ranking officials of CONMEBOL and its member associations in exchange for their support of Torneos affiliate T&T Sports Marketing Ltd. (T&T) as the holder of the broadcasting rights to the Copa Libertadores, South America’s premier club team tournament. T&T was owned by Torneos and, at various times and in part, by affiliates of a major broadcasting company headquartered in the United States. At times, Torneos paid the bribes and kickbacks with the agreement and support of the U.S. broadcasting company affiliates and their representatives, including three high-ranking executives. Torneos employed a variety of means to facilitate and disguise the annual bribe and kickback payments, including the use of intermediaries, shell companies created off the official books of Torneos, currency dealers, and cash.
CONMEBOL Copa América and CONMEBOL/CONCACAF Copa América Centenario
In 2013, Torneos and its co-conspirators formed a new company, Datisa S.A. (Datisa), which included as its three shareholders Torneos’s subsidiary Productora de Eventos S.A.; the Traffic Group, a multinational sports marketing conglomerate headquartered in Brazil; and another sports marketing company headquartered in Argentina. Datisa thereafter paid and agreed to pay tens of millions of dollars in bribe and kickback payments to high-ranking officials of CONMEBOL, CONMEBOL’s member associations, and the president of CONCACAF in connection with the companies’ acquisition of the media and marketing rights to the 2015, 2019, and 2023 editions of the Copa América and to the 2016 Copa América Centenario, a centennial edition of the tournament played earlier this year in stadiums across the United States. According to court documents, at least 17 soccer officials are implicated in this scheme alone.
Deferred Prosecution Agreement
Pursuant to the deferred prosecution agreement filed today, Torneos has waived federal indictment, agreed to the filing of the criminal information, and accepted responsibility for its criminal conduct and that of its senior executives and other employees. In addition, Torneos has agreed to forfeiture of $89,062,616, which represents profits it made from corrupt contracts, and to pay a criminal penalty of $23,760,000 to the government over the term of the agreement.[1] In consideration of Torneos’s remedial actions to date – which has included the termination of its entire senior management team and the hiring of a new General Manager, Chief Financial Officer, Legal Director and Chief Compliance Officer, and Compliance Manager – and its commitment to, among other things: (a) accept and acknowledge responsibility for its conduct; (b) continue its cooperation; (c) agree to forfeiture and make the payment of a financial penalty; and (d) implement enhanced internal controls and a rigorous corporate compliance program that includes policies and procedures designed to detect and deter violations of all applicable federal, state, and foreign anti-corruption laws, the government agreed to defer the prosecution for a period of 48 months and to obtain an exclusion of time under the Speedy Trial Act to allow Torneos to demonstrate good conduct and compliance with the terms of this agreement. The Honorable Pamela K. Chen approved the exclusion of time at a proceeding held in Brooklyn federal court earlier today. If Torneos complies with its obligations under the agreement, the government will move to dismiss the charge filed today after the conclusion of the 48-month period. If Torneos violates the agreement, it is subject to full criminal prosecution.
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The charge and resolution announced today are part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office of the Eastern District of New York, the FBI’s New York Field Office, and the IRS-CI Los Angeles Field Office. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section, and the Fraud Section, as well as from INTERPOL Washington. Assistant United States Attorneys Evan M. Norris, Samuel P. Nitze, Brian D. Morris, M. Kristin Mace, and Tanya Hajjar are in charge of today’s prosecution.
The government’s investigation is ongoing.
The Defendant:
TORNEOS Y COMPETENCIAS S.A.
Buenos Aires, ArgentinaE.D.N.Y. Docket No.: 16 CR 634 (PKC)
[1] As set forth in the agreement, all money forfeited by Torneos will be held in reserve to ensure its availability to satisfy any order of restitution entered at sentencing in United States v. Jeffrey Webb et al., 15 CR 252 (PKC), and related cases, for the benefit of any individuals or entities that qualify as victims under federal law.
Allendale Man Indicted for Drug and Gun ChargesRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Charleston, South Carolina ---- Acting United States Attorney Beth Drake announced today that DelRico Ramone Eady, age 37, of Allendale, South Carolina was charged in a 3-count indictment with Distribution of Cocaine Base, more commonly known as crack cocaine, a violation of Title 21, U. S. C. §841(a)(1) (two counts), and Possession of a Firearm in Furtherance of Drug Trafficking, a violation of Title 18, U. S. C. §924(c)(1)(A)(i).
The maximum penalties that Eady could receive for distribution of cocaine base is 20 years imprisonment and supervised release for 3 years, as to each count. The maximum penalty he could receive for a violation of 924(c) is Life imprisonment.
The case was investigated by agents of the FBI, ATF, Allendale Police Department and 14th Circuit Solicitor's Office and is being prosecuted by Special Assistant United States Attorney Carra Henderson.
Ms. Drake stated that the charges in this Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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ATF Agents Arrest St. Thomas Man for Possessing Crack with Intent to DistributeRead the Press Release
St. Thomas, USVI – Tolomah Foy, 23, of St. Thomas, Virgin Islands, made his initial appearance on December 12, 2016, before U.S. Magistrate Judge Ruth Miller after being charged with possession with intent to distribute approximately 29 grams of crack cocaine, United States Attorney Ronald W. Sharpe announced. Miller released Foy on a $10,000 unsecured bond and set Foy’s preliminary hearing for December 14, 2016.
According to the complaint, on December 10, 2016, agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) arrested the defendant in the Red Hook area of St. Thomas after agents made several purchases of crack cocaine from the defendant.
Under federal law if convicted of possession with intent to distribute 28 grams or more of crack cocaine, Foy faces a minimum of five years in prison and a maximum fine of $5,000,000. This case is being investigated by the ATF. It is being prosecuted by Assistant United States Attorney Everard Potter.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
20 Individuals Charged with Trafficking Heroin and FentanylRead the Press Release
BOSTON – Twenty individuals were charged today in connection with trafficking heroin, Fentanyl and cocaine from Mexico and the Dominican Republic to Massachusetts and Rhode Island. In a series of arrests and searches conducted early this morning, approximately 8 kilograms of heroin, a number of firearms, and approximately $500,000 in cash, luxury vehicles, and Rolex watches were seized. One additional individual was arrested on state charges of trafficking in 220 grams or more of cocaine.
The following defendants were arrested today and charged in a federal criminal complaint with conspiring to distribute heroin, Fentanyl and cocaine:
- Deiby Victoria;
- Starling Bladmil Gonzalez, a/k/a “Bladi;”
- Domingo Depena Vega;
- Isidro Perez Montero;
- Charles Torres, a/k/a Daniel Bautista, a/k/a “Leo;”
- Ramon Arias, a/k/a “Mon;”
- Vinicio Baez;
- Julio Diaz, a/k/a “Alex Menan;”
- Jefferson Rodrigzuez;
- Jesus Sepulveda, a/k/a “Juan Carlos;”
- Santo Santana, a/k/a “El Viejo;”
- Jose Alamo, a/k/a “Necio;”
- Gilberto Torres, a/k/a “Julian;”
- Wellington Osnel Soto Aguasviva;
- Friman Gonzalez, a/k/a “Gordo;”
- Johan Montanez Pizzaro, a/k/a “Rubio;”
- Felix Salas Diaz;
- Amable Diaz, a/k/a “Nene;”
- Wilfredo Santana, a/k/a “Menor;” and
Hamlet Mendez Nova, a/k/a “Janle”
The following defendants were charged in two related indictments with conspiracy to distribute and possession with the intent to distribute heroin:
- Angela Cordero, of New York, NY (fugitive); and
- Carlos Cuevas, residence unknown (fugitive)
The following defendant was charged in a state criminal complaint with trafficking in 200 grams or more of cocaine:
- Euclides H. Lopes, of Lynn. Lopes was arraigned in Lynn District Court this afternoon and was held on $100,000 cash bail.
According to the affidavit, the investigation into Deiby Victoria and his associates began in February 2016. Victoria is alleged to be the head of a drug trafficking organization that imported large quantities of heroin, Fentanyl, and cocaine from Mexico and the Dominican Republic into the United States for distribution in the greater Boston area and in Providence, R.I. The primary purpose of Victoria’s organization was the wholesale distribution of large amounts of heroin and Fentanyl, not retail sales to users or addicts.
Victoria and his associates distributed drugs through several traditional means, such as couriers and stash houses, however they also used novel techniques, including distributing drugs at what purported to be a used car business in Dorchester. The members of the organization collected payments and then directed drug buyers to the cars in which the drugs were hidden. The business and the used cars were seized earlier today.
Victoria and his associates also used international money launderers to launder drug proceeds and pay drug suppliers. Starling Bladmil Gonzalez (Bladi) was Victoria’s partner and brother-in-law. During intercepted conversations, Victoria and Bladi were heard routinely discussing the purchase and distribution of drug shipments, as well as the collection of debts from their customer base, and payments of the drug debts they owed to their suppliers. Victoria and his associates employed a number of people to distribute drugs and collect money.
During the investigation, heroin and drug proceeds from various members of Victoria’s organization were seized. For example, on June 9, 2016, approximately one kilogram of heroin was seized from Angela Cordero, who was a courier for the New York-based organization that supplied Victoria and his associates. On Oct. 6, 2016, three kilograms of heroin which had been supplied by Montero, were seized from Victoria. In intercepted calls following this particular drug seizure, Montero warned Victoria that the drugs belonged to “people [who were] very dangerous.” Subsequent discussions revealed that the seized heroin had been supplied by Mexican drug distributors. On Nov. 7, 2016, investigators seized $300,854 in drug proceeds from a money courier immediately after he collected a drug debt from Charles Torres.
The federal charges of conspiracy to distribute and possess with intent to distribute heroin, Fentanyl, and cocaine provides a sentence of no greater than 20 years in prison, up to a lifetime of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Boston Police Commissioner William B. Evans; and Natick Police Chief James G. Hicks. The U.S. Attorney’s Office would also like to acknowledge the assistance and cooperation of Attorney General Maura Healey’s Office.
Assistant U.S. Attorneys Leah B. Foley and Nathaniel R. Mendell of Ortiz’s Narcotics and Money Laundering Unit are prosecuting the cases.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.