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12 December 2016
Former Division of Highways employee admits guilt in pay-to-play schemeRead the Press Release
WHEELING, WEST VIRGINIA – Bruce E. Kenney, III, 60, of Norfolk, Virginia, pled guilty in federal court today to wire and tax fraud charges, United States Attorney William J. Ihlenfeld, II, announced.
Kenney admitted today that he used his position in the Traffic Engineering Division of the West Virginia Division of Highways to bypass normal state procedures and funnel structure inspection work to the Dennis Corporation in exchange for covert payments totaling approximately $200,000. He entered a guilty plea to one count of “Honest Services Wire Fraud Conspiracy,” and also to one count of “Conspiracy to Impede the Internal Revenue Service.”
Assistant U.S. Attorneys Jarod J. Douglas and Sarah W. Montoro prosecuted the case on behalf of the government. The case was investigated by the U.S. Attorney’s Public Corruption Unit, which includes the Federal Bureau of Investigation, the West Virginia Commission on Special Investigations, Internal Revenue Service-Criminal Investigation, and the West Virginia State Police.
Citizens with information regarding public corruption in their community are encouraged to call the West Virginia Public Corruption Hotline at 855-WVA-FEDS (855-982-3337), or to send an email to [email protected].
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Former Congressman Chaka Fattah Sentenced to 10 Years in Prison for Participating in Racketeering ConspiracyRead the Press Release
Former Congressman Chaka Fattah Sr., 60, of Philadelphia, was sentenced to 120 months in prison for participating in a racketeering conspiracy involving several schemes intended to further his political and financial interests by misappropriating federal, charitable and campaign funds, among other things.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, Special Agent in Charge Michael Harpster of the FBI’s Philadelphia Division and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) Philadelphia Field Office made the announcement.
Fattah was sentenced by U.S. District Judge Harvey Bartle III of the Eastern District of Pennsylvania, who also ordered Fattah to pay $600,000 in restitution and to forfeit $14,500. On June 21, 2016, Fattah was convicted of participating in racketeering, bribery, wire fraud, honest services fraud and money laundering conspiracies, and for bribery, mail fraud and money laundering.
“Chaka Fattah was a long-serving and powerful member of the U.S. House of Representatives who was entrusted by his constituents with serving their best interests,” said Assistant Attorney General Caldwell. “Instead, he perverted that trust and turned his office into a criminal organization designed to support his own political and financial interests.”“As a former congressman, Fattah conspired with his co-defendants in a series of schemes to use his position for personal gain at the expense of the public good,” said U.S. Attorney Memeger. “We are pleased with today’s outcome while also recognizing the tragedy of this defendant’s fall from grace. We hope that the lengthy prison sentence imposed today deters those public officials who might be tempted to engage in corruption, as our office remains committed to investigating and prosecuting public corruption at all levels of government.”
“Chaka Fattah represented his district in Congress for over 20 years,” said Special Agent in Charge Harpster. “And, if not for his sheer greed and venality, probably could have kept his seat for 20 more. He's repeatedly deemed this case a ‘witch hunt’ against him by the government. But in truth, Mr. “Today’s sentence sends a clear message that the laws of the land apply to everyone, regardless of position or power,” said Chief Weber. “Public officials who fail to faithfully discharge the duties of their office will be investigated, prosecuted and subjected to the full punishment of the law for their actions.”
According to the evidence presented at trial, Fattah and certain associates borrowed $1 million from a wealthy supporter for his failed 2007 campaign for mayor of Philadelphia, and disguised the funds as a loan to a consulting company. After he lost the election, Fattah returned $400,000 of unused campaign funds to the donor and arranged for Educational Advancement Alliance (EAA), a non-profit entity founded and controlled by Fattah, to repay the remaining $600,000 using charitable and federal grant funds that passed through two other companies, including one run by co-defendant Robert Brand. To conceal the contribution and repayment scheme, Fattah, his co-conspirators, and others created sham contracts and made false entries in accounting records, tax returns and campaign finance disclosure statements.
Following his election defeat, Fattah also sought to extinguish approximately $130,000 in campaign debt owed to a political consultant by agreeing to arrange for the award of federal grant funds to the consultant. Fattah directed the consultant to apply for a $15 million grant (which ultimately he did not receive) on behalf of a then-non-existent non-profit entity. In exchange for Fattah’s efforts to arrange the award, the consultant agreed to forgive the campaign debt.
In addition, Fattah misappropriated funds from his mayoral and congressional campaigns to repay his son’s student loan debt. To execute the scheme, Fattah arranged for his campaigns to make payments to a political consulting company, which the company used to make 34 successful loan payments on behalf of Fattah’s son, totaling approximately $23,000, between 2007 and 2011.
Beginning in 2008, Fattah communicated with individuals in the legislative and executive branches in an effort to secure for co-defendant Herbert Vederman an ambassadorship or an appointment to the U.S. Trade Commission. In exchange, Vederman provided money and other items of value to Fattah. As part of this scheme, the defendants sought to conceal an $18,000 bribe payment from Vederman to Fattah by disguising it as a payment for a sham car sale.
Fattah’s four co-defendants Vederman, Brand, Karen Nicholas and Bonnie Bowser were convicted alongside Fattah for charges in connection with the schemes on June 21, 2016. Judge Bartle also sentenced Vederman today to 24 months in prison and ordered him to pay a $50,000 fine. Sentencing is set for Dec. 13, 2016 for Brand and Nicholas and Dec. 14, 2016 for Bowser.
The FBI and IRS-CI investigated the case with assistance from the Justice Department’s Office of the Inspector General, the NASA Office of Inspector General and the Department of Commerce’s Office of Inspector General. Trial Attorneys Eric L. Gibson and Jonathan Kravis of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania are prosecuting the case.
Former Congressman Chaka Fattah Sentenced to 10 Years in Prison for Participating in Racketeering ConspiracyRead the Press Release
Philadelphia – Former Congressman Chaka Fattah Sr., 60, of Philadelphia, was sentenced to 120 months in prison for participating in a racketeering conspiracy involving several schemes intended to further his political and financial interests by misappropriating federal, charitable and campaign funds, among other things.
U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Michael Harpster of the FBI’s Philadelphia Division and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) Philadelphia Field Office made the announcement.
Fattah was sentenced by U.S. District Judge Harvey Bartle III of the Eastern District of Pennsylvania, who also ordered Fattah to pay $600,000 in restitution and to forfeit $14,500. On June 21, 2016, Fattah was convicted of participating in racketeering, bribery, wire fraud, honest services fraud and money laundering conspiracies, and for bribery, mail fraud and money laundering.
“As a former congressman, Fattah conspired with his co-defendants in a series of schemes to use his position for personal gain at the expense of the public good,” said U.S. Attorney Memeger. “We are pleased with today’s outcome while also recognizing the tragedy of this defendant’s fall from grace. We hope that the lengthy prison sentence imposed today deters those public officials who might be tempted to engage in corruption, as our office remains committed to investigating and prosecuting public corruption at all levels of government.”
“Chaka Fattah was a long-serving and powerful member of the U.S. House of Representatives who was entrusted by his constituents with serving their best interests,” said Assistant Attorney General Caldwell. “Instead, he perverted that trust and turned his office into a criminal organization designed to support his own political and financial interests.”
“Chaka Fattah represented his district in Congress for over 20 years,” said Special Agent in Charge Harpster. “And, if not for his sheer greed and venality, probably could have kept his seat for 20 more. He's repeatedly deemed this case a ‘witch hunt’ against him by the government. But in truth, Mr. Fattah and his co-defendants have no one to blame but themselves. Tackling public corruption remains an FBI priority, for the simple fact that no one is above the law.”
“Today’s sentence sends a clear message that the laws of the land apply to everyone, regardless of position or power,” said Chief Weber. “Public officials who fail to faithfully discharge the duties of their office will be investigated, prosecuted and subjected to the full punishment of the law for their actions.”
According to the evidence presented at trial, Fattah and certain associates borrowed $1 million from a wealthy supporter for his failed 2007 campaign for mayor of Philadelphia, and disguised the funds as a loan to a consulting company. After he lost the election, Fattah returned $400,000 of unused campaign funds to the donor and arranged for Educational Advancement Alliance (EAA), a non-profit entity founded and controlled by Fattah, to repay the remaining $600,000 using charitable and federal grant funds that passed through two other companies, including one run by co-defendant Robert Brand. To conceal the contribution and repayment scheme, Fattah, his co-conspirators, and others created sham contracts and made false entries in accounting records, tax returns and campaign finance disclosure statements.
Following his election defeat, Fattah also sought to extinguish approximately $130,000 in campaign debt owed to a political consultant by agreeing to arrange for the award of federal grant funds to the consultant. Fattah directed the consultant to apply for a $15 million grant (which ultimately he did not receive) on behalf of a then-non-existent non-profit entity. In exchange for Fattah’s efforts to arrange the award, the consultant agreed to forgive the campaign debt.
In addition, Fattah misappropriated funds from his mayoral and congressional campaigns to repay his son’s student loan debt. To execute the scheme, Fattah arranged for his campaigns to make payments to a political consulting company, which the company used to make 34 successful loan payments on behalf of Fattah’s son, totaling approximately $23,000, between 2007 and 2011.
Beginning in 2008, Fattah communicated with individuals in the legislative and executive branches in an effort to secure for co-defendant Herbert Vederman an ambassadorship or an appointment to the U.S. Trade Commission. In exchange, Vederman provided money and other items of value to Fattah. As part of this scheme, the defendants sought to conceal an $18,000 bribe payment from Vederman to Fattah by disguising it as a payment for a sham car sale.
Fattah’s four co-defendants Vederman, Brand, Karen Nicholas and Bonnie Bowser were convicted alongside Fattah for charges in connection with the schemes on June 21, 2016. Judge Bartle also sentenced Vederman today to 24 months in prison and ordered him to pay a $50,000 fine. Sentencing is set for Dec. 13, 2016 for Brand and Nicholas and Dec. 14, 2016 for Bowser.
The FBI and IRS-CI investigated the case with assistance from the Justice Department’s Office of the Inspector General, the NASA Office of Inspector General and the Department of Commerce’s Office of Inspector General. Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania, and Trial Attorneys Eric L. Gibson and Jonathan Kravis of the Criminal Division’s Public Integrity Section are prosecuting the case.
Former Bank Employee in Great Bend Pleads Guilty to Embezzling More Than $73,600Read the Press Release
KANSAS CITY, KAN. - A former employee of a bank in Great Bend pleaded guilty Monday to stealing more than $73,600 from the bank, U.S. Attorney Tom Beall said.
Kaden Herman, 19, Great Bend, Kan., pleaded guilty to one count of embezzlement by a bank employee. In his plea, he admitted he was working for Landmark National Bank in Great Bend, Kan., in May 2016 when the crime occurred. Herman gained access to a key and code that he used to open an ATM at a branch at 1623 Main Street in Great Bend and remove the cash.
When questioned, Herman denied involvement, but witnesses said they saw him when he took the key in to be duplicated. Investigators served a search warrant at his home and found the money.
Sentencing is set for Feb. 27. The government has agreed to recommend three years supervised release. Beall commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Final Person Sentenced to More Than 8 Years’ Imprisonment in Scheme to Smuggle Guns to LebanonRead the Press Release
Bassem Afif Herz, age 31, from Cedar Rapids, Iowa, was sentenced today following his pleas of guilty to various charges related to a scheme to illegally export hundreds of firearms to Lebanon.
Herz previously pleaded guilty to one count of conspiring to deal in firearms without a license and to illegally ship firearms in interstate and foreign commerce; one count of conspiracy to commit money laundering; and one count of violating the Arms Export Control Act.
The defendant was sentenced by Linda R. Reade, Chief Judge, United States District Court for the Northern District of Iowa, in Cedar Rapids, Iowa, following three prior hearings at which the Court received evidence concerning the sentencing issues.
Herz was sentenced to serve 97 months’ imprisonment, to be followed by a 3- year term of supervised release. Herz was ordered to forfeit $48,575 in proceeds of criminal activity. The forfeiture order was made joint and several with the other defendants in the case.
In sentencing Herz, the Court found the aggravating factors included the defendant’s false testimony that on the day of his arrest he had been beaten up by police officers who also threw his infant son to the floor. The court also noted the large number of guns involved in the schemes, the fact that military style assault rifles were involved, and that some of the guns were shipped to and sold in southern Lebanon in an area controlled by Hezbollah.
Ali Afif Al Herz, the brother of Bassem Afif Herz, was previously sentenced to serve 342 months’ imprisonment.
Adam Al Herz, the son of Ali Afif Al Herz, was sentenced to serve 240 months’ imprisonment, to be followed by a three-year term of supervised release.
Defendant and his relatives were charged following an investigation triggered in early 2014 by a report from a firearms dealer concerning suspicious firearms transactions conducted by the group.
The initial investigation led to the March 2015 seizure of 53 guns and thousands of rounds of ammunition concealed inside Bobcat skid loaders packed inside a shipping container at the Norfolk, Virginia seaport. The container was destined for Lebanon. Subsequent investigation led to the May 2015 seizure of a second shipping container in Cedar Rapids, which was also destined for Lebanon. Ninety-nine guns and thousands more rounds of ammunition were found concealed inside Bobcat skid loaders packed inside the second container. Further investigation disclosed the group had previously sent two similar shipments to Lebanon in March and August 2014. Each of the containers had been loaded and shipped from Midamar Corporation in Cedar Rapids.
The cases were prosecuted by Assistant United States Attorney Richard L. Murphy and were investigated by Homeland Security Investigations, Bureau of Alcohol Tobacco and Firearms, Federal Bureau of Investigation, and U.S. Customs and Border Protection, with assistance from the Diplomatic Security Service, United States Marshals Service, Iowa State Patrol, Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigation, Iowa Bureau of Investigation and Identity Protection, Iowa Department of Inspections and Appeals, Fayette County Sheriff’s Office, Iowa County Sheriff’s Office, Linn County Sheriff’s Office, Vinton Police Department, University of Iowa Police Department, Iowa City Police Department, Cedar Rapids Police Department, Marion Police Department, and Hiawatha Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-00054-LRR.
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Federal Jury Finds Shiprock Woman Guilty on Assault ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Santa Fe, N.M., returned a verdict this afternoon finding Cornelia Tom Tapaha, 40, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., guilty on assault charges after a six-day trial. The verdict was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Director Jesse Delmar of the Navajo Nation Division of Public Safety.
Tapaha was arrested in June 2016, on an indictment charging her with assault with a dangerous weapon, a vehicle, and assault resulting in serious bodily injury. The indictment alleged that Tapaha committed the crimes on July 8, 2015, on the Navajo Indian Reservation in San Juan County, N.M.
Trial of Tapaha began on Dec. 5, 2016, and concluded this afternoon when the jury returned a verdict finding Tapaha guilty of assault and assault resulting in serious bodily injury.
The evidence at trial established that on the evening of July 8, 2016, Tapaha, the victim and another individual consumed alcohol while driving on the Navajo Indian Reservation. While Tapaha was driving and the victim was in the front passenger seat, Tapaha and the victim began arguing. Eventually Tapaha pulled over, and the victim and the other individual got out of the vehicle and began walking away. Tapaha remained in the vehicle and proceeded to run over the victim. As a result of this assault, the victim’s ribs, collar bone and ankle were broken and required surgical repair. The victim also suffered multiple lacerations requiring stitches.
At sentencing, Tapaha faces a statutory maximum penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Department of Public Safety. Assistant U.S. Attorneys Joseph Spindle and Novaline D. Wilson are prosecuting the case.
Federal Inmate Pleads Guilty to Illegal Possession of MarijuanaRead the Press Release
ABINGDON, VIRGINIA – An inmate at United States Penitentiary at Lee County, Virginia, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to illegally possessing a prohibited object, United States Attorney John P. Fishwick Jr. announced.
Stanley Curtis Gillom, 32, waived his right to be indicted and pled guilty today in District Court to a one count Information charging him with one count of knowingly possessing a prohibited object, marijuana.
“Those who break the law while inside a federal prison will be held accountable for their actions,” United States Attorney Fishwick said today. “Maintaining order and keeping prohibited items, including substances such as marijuana, out of the penitentiary, is imperative to keeping all inmates safe.”
At sentencing Gillom faces up to five years in prison and a fine of $250,000.
The investigation of the case was conducted by the United States Bureau of Prisons and the Bristol office of the Federal Bureau of Investigations. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
FCI-Greenville Inmate Pleads Guilty to Assult with a Dangerous Weapon with Intent to Do Bodily HarmRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on December 12, 2016, Billy Evans, 26, pled guilty to an indictment charging him with Assault with a Dangerous Weapon with Intent to do Bodily Harm. Both Evans and the victim were inmates at the Federal Correctional Institution located in Greenville, Illinois, commonly known as FCI-Greenville, at the time the offense was committed. Evans faces a term of imprisonment of not more than ten years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years. The sentencing has been scheduled for March 31, 2017, in East St. Louis, Illinois.
On July 6, 2016, Evans assaulted another inmate with a weapon made by tying a combination lock to a belt. Immediately after the assault ended, Evans turned himself into staff at FCI-Greenville. Evans later admitted the assault when interviewed by the FBI, as well to constructing the weapon used to commit the assault. The victim suffered a 3 cm laceration to his head that needed staples to close, as well as abrasions and bruising to his right shoulder.
The case was investigated by the Bureau of Prisons’ Special Investigation Section and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Angela Scott.
FCI-Greenville Inmate Pleads Guilty to Assult with a Dangerous Weapon with Intent to Do Bodily HarmRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on December 12, 2016, Billy Evans, 26, pled guilty to an indictment charging him with Assault with a Dangerous Weapon with Intent to do Bodily Harm. Both Evans and the victim were inmates at the Federal Correctional Institution located in Greenville, Illinois, commonly known as FCI-Greenville, at the time the offense was committed. Evans faces a term of imprisonment of not more than ten years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years. The sentencing has been scheduled for March 31, 2017, in East St. Louis, Illinois.
On July 6, 2016, Evans assaulted another inmate with a weapon made by tying a combination lock to a belt. Immediately after the assault ended, Evans turned himself into staff at FCI-Greenville. Evans later admitted the assault when interviewed by the FBI, as well to constructing the weapon used to commit the assault. The victim suffered a 3 cm laceration to his head that needed staples to close, as well as abrasions and bruising to his right shoulder.
The case was investigated by the Bureau of Prisons’ Special Investigation Section and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Angela Scott.
East Windsor Woman Pleads Guilty to Committing Multiple Crimes after Sentencing for Prior OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALIYAH THERESA JULIATE DAVIS, also known as Theresa Juliate Sutherland, 36, of East Windsor, waived her right to indictment and pleaded guilty today in New Haven federal court to multiple offenses that she committed while awaiting incarceration after a prior federal conviction.
According to court documents and statements made in court, on December 17, 2014, DAVIS, who was then known as Theresa Sutherland, was sentenced in Hartford federal court to 51 months of imprisonment, followed by three years of supervised release, for engaging in a fraud and identity theft scheme at an insurance company where she was employed. As part of her sentence, DAVIS was ordered to pay total restitution of $400,000 to the victim insurance company and three previous employers that she defrauded.
Beginning in January 2015, DAVIS, through her attorney, made five separate motions to postpone her prison report date based on her claims of a diagnosis of terminal cancer and heart conditions. In association with her court motions, DAVIS submitted letters from various medical professionals detailing her claimed medical conditions. DAVIS created the letters and forged the medical professionals’ signatures. DAVIS’s prison report dates were continued based on these fraudulent submissions.
In March 2015, DAVIS changed her name from Theresa Juliate Sutherland to ALIYAH THERESA JULIATE DAVIS. DAVIS subsequently received a new Social Security number and Connecticut driver’s license under her new identity.
On April 19, 2016, DAVIS submitted an application for a U.S. passport at the U.S. Postal Service facility on Weston Street in Hartford. On the application where it states “Have you ever applied for or been issued a U.S. Passport Book or Passport Card?” DAVIS marked an “X” in the “No” box. In 2007, DAVIS applied for and received a U.S. passport when she was known as Theresa Juliate Sutherland.
At various times between December 2014 and September 2016, DAVIS was employed at a local insurance company and local hospitals. From May 28, 2016 to September 10, 2016, while she was employed at an insurance company and then a hospital under her new identity, DAVIS received $9,808 in unemployment compensation from the State of Connecticut under her previous identity.
DAVIS pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years; one count of knowingly making a false statement on a passport application, which carries a maximum term of imprisonment of 10 years; one count of making a false statement, which carries a maximum term of imprisonment of five years, and one count of aggravated identity theft, which carries a mandatory two-year term of imprisonment. She is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on March 17, 2017.
DAVIS has been detained since her arrest on September 17, 2016.
This matter is being investigated by the U.S. Department of State, Diplomatic Security Service, U.S. Department of Labor – Office of Inspector General, Office of the Chief State’s Attorney, Connecticut Department of Labor and East Windsor Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Eagle Butte Man Sentenced for Second Degree MurderRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Second Degree Murder was sentenced on December 5, 2016, by U.S. District Judge Roberto A. Lange.
Corbyn Big Eagle, age 22, was sentenced to 180 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Big Eagle was indicted by a federal grand jury on July 14, 2015. He pled guilty on September 7, 2016.
The conviction stemmed from an incident on June 16, 2015. During a social gathering at Big Eagle’s residence in Eagle Butte, a misunderstanding between the victim and another male at the gathering resulted in the victim punching the other man. A third man at the party then intervened and took the victim to the floor, restraining him. Big Eagle went to the kitchen, grabbed a large knife, and stabbed the victim once in the chest. The stab wound was fatal and the victim died.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
Big Eagle was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on November 21, 2016, by U.S. District Judge Roberto A. Lange.
Wambli Meeter, age 34, was sentenced to time served, which had been approximately 12 months in custody and treatment, 2 years of supervised release, a $1,000 fine, a $100 special assessment to the Federal Crime Victims Fund, and the forfeiture of $185 in U.S. currency.
Meeter was indicted by a federal grand jury on October 14, 2015, for Possession with Intent to Distribute a Controlled Substance. He pled guilty to the charge on December 15, 2015.
Between June 2, 2015 and June 10, 2015, Meeter knowingly and intentionally distributed and possessed with the intent to distribute methamphetamine, a Schedule II Controlled Substance, in South Dakota. On June 2, 2015, in Eagle Butte, Meeter possessed 4.47 grams of methamphetamine in six individual baggies, a syringe fully loaded with a clear liquid that field-tested positive for opiates, and brass knuckles. On June 10, 2015, in and around the Standing Rock Reservation in South Dakota, Meeter used, purchased, and distributed methamphetamine.
This case was investigated by the Federal Bureau of Investigation and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Meeter was released after sentencing.
District Man Pleads Guilty to Second-Degree Murder While Armed in November 2015 StabbingRead the Press Release
WASHINGTON -- Daniel Scott, 36, of Washington, D.C. pled guilty today to a charge stemming from an incident in November 2015 in which he stabbed another man in the face, causing the victim’s death, U.S. Attorney Channing D. Phillips announced.
Scott pled guilty in the Superior Court of the District of Columbia to second-degree murder while armed. The plea, which is contingent upon the Court’s approval, calls for a prison sentence of 15 years. The Honorable Michael Ryan scheduled sentencing for Feb. 24, 2017.
According to the government’s evidence, during the early evening hours of Nov. 21, 2015, Scott became involved in an argument with a female panhandler over money she had received from a patron while standing outside of the 7-Eleven store in the 1100 block of South Capitol Street SW. At some point during this dispute, Scott obtained a knife and began swinging it at the female panhandler, who was also with a male companion. Shortly thereafter, the pair left the 7-Eleven property and began traveling towards M Street SE.
Unbeknownst to them, Scott followed the pair as they left the 7-Eleven and crossed the street. Scott then confronted them and lunged at the male, James Michael Neal, stabbing him once in the face with a butcher’s knife. Scott then threw the knife to the ground and fled the area. After a look-out was given, Scott was apprehended a short distance away at a nearby McDonald’s restaurant. Mr. Neal, 54, was transported to a local hospital to receive further medical treatment for the stab wound to the face, which was determined to have penetrated his nasal cavity, causing hemorrhaging throughout his brain and skull. Over the course of the night, his condition progressively deteriorated and on Nov. 22, 2015, he died from the injuries.
Scott has been in custody since his arrest.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of Assistant U.S. Attorney Charles J. Willoughby, Jr., who investigated and prosecuted the matter.
Developer Indicted for Embezzling from A Bankruptcy EstateRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Clark D. East (59, Sugarland, TX) with embezzlement from a bankruptcy estate. If convicted, he faces a maximum penalty of five years in federal prison.
According to the indictment, East obtained a loan from Stearns Bank, a member bank of the Federal Home Loan Bank of Minneapolis, to develop a property located at 3700 Ulmerton Road Plaza in Clearwater. East subsequently defaulted on the loan and Stearns Bank obtained approval to sell the property at foreclosure on March 27, 2012. The day before the scheduled foreclosure sale, East filed for bankruptcy protection with the United States Bankruptcy Court through his company, 3700 Ulmerton Road, LLC. During the bankruptcy proceedings, East was ordered by the Court to sell the property and pay $1.2 million in sales proceeds to Stearns Bank. Rather than repaying Stearns Bank, East embezzled $828,854.66 of proceeds that were part of the bankruptcy estate and due to Stearns Bank.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General. The Office of the United States Trustee for the Middle District of Florida, Tampa Division, also provided substantial assistance. The case will be prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay G. Trezevant.
Columbus, Ohio woman guilty of transporting stolen items across state linesRead the Press Release
WHEELING, WEST VIRGINIA – Marilyn Whatley, 38, of Columbus, Ohio, pled guilty in federal court today to transporting stolen goods across state lines, United States Attorney William J. Ihlenfeld, II, announced.
Whatley admitted to conspiring to steal smart phones, tablets, head phones, game stations, and computers from Walmart, Target, and Meijer stores in eight different states, including West Virginia and Ohio. She faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Columbus Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Chelsea Man Arrested for Multiple Bank RobberiesRead the Press Release
BOSTON – A Chelsea man, dubbed the “Spelling Bee Bandit,” was arrested and charged today in connection with four bank robberies in the Greater Boston area.
Jason S. Englen, 34, was charged with the robberies of: TD Bank in Arlington on Oct. 31, 2016; TD Bank in Reading on Nov. 5, 2016; Salem Five in Burlington on Nov. 7, 2016; and TD Bank in Peabody on Nov. 13, 2016. A probable cause and detention before U.S. District Court Magistrate Judge Marianne B. Bowler will continue tomorrow.
According to court documents, on Oct. 31, 2016, a man entered a branch of TD Bank in Arlington, approached a teller and presented a note written on a deposit slip with the word “ROBERY” written on it. The teller handed the man money from the drawer and he fled the bank. Following the robbery, the man’s image was circulated on public websites seeking information about his identity. Nearly identical incidents occurred on Nov. 5th at a branch of TD Bank in Reading, on Nov. 7th at a branch of Salem Five in Burlington, and on Nov. 13th at a branch of TD Bank in Peabody. During each robbery, the man handed the teller a note with the word “ROBERY” or “ROBERT” demanding cash. During the last robbery, the man told the teller he wanted $20 and $50 dollar bills. Following each robbery, the man’s image was circulated on public websites seeking information about his identity.
Based on the similarity of the robberies and the physical description of the robber provided by the bank tellers, a bulletin was circulated seeking the public’s help in identifying the perpetrator. As a result, law enforcement received information that the individual involved in the robberies was Englen. Englen, who was already in state custody on unrelated charges, was arrested by federal authorities today.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge bases upon the US Sentencing guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Suffolk County Sheriff Steven Tompkins; Arlington Police Chief Frederick Ryan; Reading Police Chief Mark D. Segalla; Burlington Police Chief Michael Kent; and Peabody Police Chief Thomas Griffin, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit is prosecuting the case.
Charleston drug dealer sentenced to federal prison for heroin crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to two years and eight months in federal prison for a drug crime, announced United States Attorney Carol Casto. Antonio Tarvares Johnson, 39, previously pleaded guilty to distribution of heroin.
Johnson admitted that on September 28, 2015, he sold heroin to a confidential informant working with law enforcement. The drug deal took place at the Motel 6 in Cross Lanes. Johnson additionally admitted that on November 9, 2015, he sold heroin to a confidential informant at America’s Best Value Inn in St. Albans. Following that drug deal, law enforcement arrested Johnson and recovered over $6,000 in cash from his pocket and wallet, which included $100 in prerecorded buy money from the November 9, 2015, controlled purchase. Johnson further admitted that he also sold drugs to a confidential informant on September 29, 2015, and on December 16, 2015.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Clint Carte is responsible for the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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California Man Pleads Guilty to Perpetrating Trademark Scam and Money LaunderingRead the Press Release
Associate Pleads Guilty to Helping Launder Proceeds of Scam
A Southern California man who masterminded a $1.66 million mass-mailing scam targeting trademark applicants pleaded guilty today to charges of mail fraud and money laundering and his associate pleaded guilty to helping launder the scam’s proceeds.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Inspector in Charge Robert Wemyss of the United States Postal Inspection Service (USPIS) Los Angeles Division and Acting Special Agent in Charge Anthony J. Orlando of the Internal Revenue Service Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.
Artashes Darbinyan, 37, of Glendale, pleaded guilty to one count of mail fraud and one count of conspiracy to launder monetary instruments before U.S. District Judge Stephen V. Wilson of the Central District of California. Orbel Hakobyan, 42, also of Glendale, pleaded guilty to one count of conspiracy to launder monetary instruments before Judge Wilson. Sentencing for both has been set for June 19, 2017.
As part of his guilty plea, Darbinyan admitted that he ran a mass-mailing scam through companies called Trademark Compliance Center (TCC) and Trademark Compliance Office (TCO). The scam involved fraudulent offers of a service in which TCC and TCO promised to monitor an applicant’s trademark for infringing marks and to register the trademark with U.S. Customs and Border Protection (CBP), which offers a real service that screens imports for possibly infringing trademarks. The offers were made via mail solicitations to applicants for U.S. trademarks for $385. Darbinyan never registered, nor ever intended to register, any of the trademarks with CBP for the customers who paid the fee.
Darbinyan also admitted to concealing his control over the scam through elaborate measures in which he illegally used the identities of other people to open accounts at virtual office centers in the Washington, D.C., area, which received and then forwarded victims’ payments to other virtual office centers in the Los Angeles area. Using those same illicit identities, Darbinyan then opened bank accounts at Wells Fargo through which he laundered the proceeds of the scam. To further avoid detection, Darbinyan paid virtual office fees with money orders; used bogus email accounts, which he would only log into using prepaid wireless modems; and regularly changed cell phone numbers.
As part of his guilty plea, Hakobyan admitted to helping launder the proceeds of the trademark scam. Specifically, Hakobyan deposited victims’ checks into bank accounts at Wells Fargo that had been opened under false names. Hakobyan misrepresented his identity to withdraw funds from the accounts at Wells Fargo in the form of cash and cashier’s checks, which he then used to purchase gold. In total, he admitted to helping launder approximately $1.29 million of the scam’s proceeds.
In total, Darbinyan admitted, the trademark scam defrauded approximately 4,446 victims of $1.66 million.
Darbinyan and Hakobyan were charged along with Albert Yagubyan, 36, of Burbank, California, in a second superseding indictment unsealed on July 19, 2016. Yagubyan, the former branch manager of the Wells Fargo branch where the majority of the scam’s proceeds were laundered, is awaiting trial. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
USPIS and IRS-CI investigated the case. Trial Attorneys William Johnston and Brian Kidd of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country. Today’s pleas are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
California Man Pleads Guilty to Perpetrating Trademark Scam and Money LaunderingRead the Press Release
LOS ANGELES – A Southern California man who masterminded a $1.66 million mass-mailing scam targeting trademark applicants pleaded guilty today to charges of mail fraud and money laundering, and his associate pleaded guilty to helping launder the scam’s proceeds.
Artashes Darbinyan, 37, of Glendale, pleaded guilty to one count of mail fraud and one count of conspiracy to launder monetary instruments before U.S. District Judge Stephen V. Wilson.
Orbel Hakobyan, 42, also of Glendale, pleaded guilty to one count of conspiracy to launder monetary instruments before Judge Wilson.
Judge Wilson is scheduled to sentencing both defendants on June 19.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker, Inspector in Charge Robert Wemyss of the United States Postal Inspection Service (USPIS) Los Angeles Division and Acting Special Agent in Charge Anthony J. Orlando of the Internal Revenue Service Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.
As part of his guilty plea, Darbinyan admitted that he ran a mass-mailing scam through companies called Trademark Compliance Center (TCC) and Trademark Compliance Office (TCO). The scam involved fraudulent offers of a service in which TCC and TCO promised to monitor an applicant’s trademark for infringing marks and to register the trademark with U.S. Customs and Border Protection (CBP), which offers a real service that screens imports for possibly infringing trademarks. The offers were made via mail solicitations to applicants for U.S. trademarks for $385. Darbinyan never registered, nor ever intended to register, any of the trademarks with CBP for the customers who paid the fee.
Darbinyan also admitted to concealing his control over the scam through elaborate measures in which he illegally used the identities of other people to open accounts at virtual office centers in the Washington, D.C., area, which received and then forwarded victims’ payments to other virtual office centers in the Los Angeles area. Using those same illicit identities, Darbinyan then opened bank accounts at Wells Fargo through which he laundered the proceeds of the scam. To further avoid detection, Darbinyan paid virtual office fees with money orders; used bogus email accounts, which he would only log into using prepaid wireless modems; and regularly changed cell phone numbers.
“These defendants preyed upon American businesses interested in protecting their intellectual property,” said United States Attorney Eileen M. Decker. “In addition to the underlying fraud, this case involved identity theft and money laundering, but, despite these efforts to conceal their activity, these defendants now face federal prison time for their crimes.”
Robert Wemyss, Postal Inspector in Charge of the Los Angeles Division stated: “This investigation was an excellent example of a partnership between state and federal law enforcement agencies across the country, working together to bring down a nationwide fraud conspiracy. I fully commend the hard work and countless hours put forth by all of the law enforcement agencies involved, which resulted in bringing these individuals in this case to justice.”
As part of his guilty plea, Hakobyan admitted to helping launder the proceeds of the trademark scam. Specifically, Hakobyan deposited victims’ checks into bank accounts at Wells Fargo that had been opened under false names. Hakobyan misrepresented his identity to withdraw funds from the accounts at Wells Fargo in the form of cash and cashier’s checks, which he then used to purchase gold. In total, he admitted to helping launder approximately $1.29 million of the scam’s proceeds.
“As admitted today, Darbinyan and Hakobyan used false identities and virtual office centers to scam trademark holders. They turned their illicit proceeds to cash and gold,” said IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “IRS Criminal Investigation remains committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money.”
In total, Darbinyan admitted, the trademark scam defrauded approximately 4,446 victims of $1.66 million.
Darbinyan and Hakobyan were charged along with Albert Yagubyan, 36, of Burbank, California, in a second superseding indictment unsealed on July 19, 2016. Yagubyan, the former branch manager of the Wells Fargo branch where the majority of the scam’s proceeds were laundered, is awaiting trial. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
USPIS and IRS-CI investigated the case. Trial Attorneys William Johnston and Brian Kidd of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country. Today’s pleas are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
CEO of Venture Capital Firm Who Misused Client Funds is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSEPH McANDREW, 75, of Pawcatuck, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 30 days of imprisonment, followed by six months of home confinement and three years of supervised release, for misusing client funds.
According to court documents and statements made in court, McANDREW was the Chief Executive Officer and Managing Partner of Wall Street Venture Capital Ltd. (“WSVC”), which offered lending and brokerage services to prospective clients who were seeking to raise money for business ventures. McANDREW required each client who retained WSVC’s services to pay upfront fees of approximately $30,000, which he falsely represented would be used solely for expenses incurred in raising money on the clients’ behalf. In truth, McANDREW used the upfront fees he received from WSVC’s clients for personal expenditures, including to purchase stocks and pay personal credit card charges.
In total, McANDREW stole $317,628 from clients of WSVC who believed their money would be used to secure financing on their behalf. None of these clients ever received financing through WSVC.
Judge Bolden ordered McANDREW to pay full restitution.
On April 5, 2016, McANDREW pleaded guilty to one count of wire fraud.
Judge Bolden sentenced McANDREW below the recommended sentencing guidelines range of 27 to 33 months of imprisonment due in significant part to McANDREW’s health condition.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Avi M. Perry.
Bulgarian Charged with GozNym Malware Attacks in the U.S.Read the Press Release
PITTSBURGH – A Bulgarian man has been indicted by a federal grand jury in Pittsburgh in connection with a sophisticated malware package known as GozNym, designed to steal banking credentials and other confidential personal information from infected computers, Acting United States Attorney Soo C. Song announced today.
The six-count indictment, returned on Oct. 4, 2016, and unsealed today, named Krasimir Nikolov, age 44, of Varna, Bulgaria, as the sole defendant. Count One charges Nikolov with criminal conspiracy; Count Two charges unauthorized access of a computer to obtain financial information; and Counts Three through Six charge bank fraud. The indictment alleges that Nikolov acquired victims’ stolen banking credentials through GozNym malware infections of victims’ computers to gain unauthorized access to victims’ online bank accounts from which electronic funds transfers were issued or attempted to be issued.
According to Acting U.S. Attorney Song, GozNym malware has been used to target private businesses and their respective financial institutions in the United States since late 2015. Victims receive phishing emails containing a hyperlink or an attachment designed to look like a legitimate business invoice. By clicking on the hyperlink or attachment, the victim’s computer becomes infected with GozNym malware. The malware steals the victim’s online banking login credentials which the criminals then use to access the victim’s bank account and issue unauthorized wire transfers.
Last week Acting U.S. Attorney Song and other members of the Justice Department announced a multi-national operation to dismantle a complex and sophisticated criminal network known as Avalanche which hosted more than two dozen of the world’s most pernicious types of malware, to include GozNym, and several money laundering campaigns. The prosecution of Krasimir Nikolov stems from the criminal investigation into the Avalanche network and the malware campaigns it hosted.
Among the numerous GozNym attacks that occurred throughout the United States, the indictment names the following:
- Nord-Lock, Inc., a bolt-manufacturing company headquartered in Carnegie, Pa., was the victim of an attempted unauthorized wire transfer of $387,500 from its online account at PNC Bank to an account in Sofia, Bulgaria.
- Protech Asphalt Maintenance, Inc., an asphalt and paving business located in New Castle, Pa., was the victim of several attempted unauthorized wire transfers totaling more than $243,000 from its online account at First National Bank.
- Foresight Sports, Inc., a company that provided technology-based golf products and was located in San Diego, California, was the victim of attempted unauthorized wire transfers totaling more than $118,000 from its online account at American Express Foreign Exchange Service Payments.
- California Furniture Collection, Inc., (DBA Artifacts International) a furniture business located in Chula Vista, California, was the victim of several attempted unauthorized wire transfers totaling more than $737,000 from its online account at CommerceWest Bank.
Acting U.S. Attorney Song praised the diligence and quick action of the victims and their respective banks in discovering the fraudulent wire transfers and recalling the funds before they were lost.
Nikolov was arrested at his residence in Varna, Bulgaria, on September 8, 2016. He was extradited to the United States over the past weekend, and made his initial appearance in federal court in Western Pennsylvania today at 3:30 p.m.
The law provides for a maximum total sentence of up to 100 years in prison and a fine of $3,500,000. 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 Charles Eberle of the Western District of Pennsylvania and Senior Trial Attorney Richard D. Green of the Justice Department’s Computer Crimes and Intellectual Property Section are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case. The FBI was assisted by Bulgaria’s General Directorate for Combating Organized Crime. In addition to the Justice Department’s Computer Crimes and Intellectual Property Section’s involvement in the investigation, the Department’s Office of International Affairs provided significant assistance with the extradition process.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Another Commercial Fisherman Pleads Guilty to Illegally Harvesting and Selling Atlantic Striped BassRead the Press Release
The Justice Department announced that today in federal court, Joseph Howard Williams, 61, of Brunswick, Georgia, pleaded guilty to federal charges regarding the illegal harvest and sale of Atlantic Striped Bass from federal waters off the coast of North Carolina in 2010.
According to information in the public record, in February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic Striped Bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on harvesting Atlantic Striped Bass from the United States’ Exclusive Economic Zone (EEZ), which includes waters located three to 200 miles seaward of the U.S. coastline. Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, the fishing vessel Lady Samaira, boarded the vessel and found 173 Atlantic Striped Bass. The captain later admitted to taking the fish from the EEZ.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. Based on the review, NOAA determined that between Jan. 27, 2009, and Jan. 29, 2009, Williams, as the Captain of the fishing vessel Joann B, harvested approximately 2,476 pounds of Atlantic Striped Bass from the EEZ, which he later sold to a seafood dealer in Engelhard, North Carolina. The investigation further revealed that between Feb. 1, 2010, and Dec. 18, 2010, Williams, harvested at least an additional 8,635 pounds of Atlantic Striped Bass from the EEZ, which he later sold to the same dealer in Engelhard, North Carolina. Williams’s email traffic during the relevant time frame corroborated the illegal harvesting activities in the EEZ and the use of code words to conceal the true species of the illegal catch. Williams also made false statements on his federal trip reports to conceal the true location of the harvest. The estimated fair market retail value of the 11,111 pounds of illegally harvested fish exceeds $88,000.
Two other commercial fisherman previously entered guilty pleas for conduct uncovered by the same investigation. United States v. Dewey W. Willis, Jr., No. 2:15-CR-3-F, and United States v. James Ralph Craddock, No. 2:15-CR-7-F.
“Violating the fishing ban is illegal and can undermine the sustainability of an important natural resource and disadvantage the many law abiding fishermen who depend upon this fishery,” said Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division. “Today’s plea agreement demonstrates the department’s commitment to pursuing those who violate the laws enacted to protect and conserve important marine resources.”
“Our office is pleased to partner with the Environment and Natural Resources Division of the Department of Justice in these significant cases,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “These prosecutions make clear that efforts to circumvent laws regulating commercial fishing -- which are implemented to sustain the species for the benefit of future generations -- will be enforced vigorously.”
A sentencing hearing has been scheduled for the March 27, 2017, term of court. Williams faces a maximum sentence of five years in prison, a $250,000 fine and forfeiture of the all of the fish illegally harvested and the equipment used to commit the offense, including the commercial trawler, and all gear, electronics and other harvesting and sorting equipment on the trawler.
The overall investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol and the Virginia Marine Police. This case is being prosecuted by Senior Litigation Counsel Banumathi Rangarajan of the U.S. Attorney’s Office for the Eastern District of North Carolina and Trial Attorney Lauren Steele of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
Another Commercial Fisherman Pleads Guilty to Illegally Harvesting and Selling Atlantic Striped BassRead the Press Release
WILMINGTON – The Justice Department announced that today in federal court, Joseph Howard Williams, 61, of Brunswick, Georgia, pleaded guilty to federal charges regarding the illegal harvest and sale of Atlantic Striped Bass from federal waters off the coast of North Carolina in 2010.
According to information in the public record, in February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic Striped Bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on harvesting Atlantic Striped Bass from the United States’ Exclusive Economic Zone (EEZ), which includes waters located three to 200 miles seaward of the U.S. coastline. Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, the fishing vessel Lady Samaira, boarded the vessel and found 173 Atlantic Striped Bass. The captain later admitted to taking the fish from the EEZ.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. Based on the review, NOAA determined that between January 27, 2009, and January 29, 2009, Williams, as the Captain of the fishing vessel Joann B, harvested approximately 2,476 pounds of Atlantic Striped Bass from the EEZ, which he later sold to a seafood dealer in Engelhard, North Carolina. The investigation further revealed that between February 1, 2010, and December 18, 2010, Williams, harvested at least an additional 8,635 pounds of Atlantic Striped Bass from the EEZ, which he later sold to the same dealer in Engelhard, North Carolina. Williams’s email traffic during the relevant time frame corroborated the illegal harvesting activities in the EEZ and the use of code words to conceal the true species of the illegal catch. Williams also made false statements on his federal trip reports to conceal the true location of the harvest. The estimated fair market retail value of the 11,111 pounds of illegally harvested fish exceeds $88,000.
Two other commercial fisherman previously entered guilty pleas for conduct uncovered by the same investigation. United States v. Dewey W. Willis, Jr., No. 2:15-CR-3-F, and United States v. James Ralph Craddock, No. 2:15-CR-7-F.
“Fishing for striped bass in federal waters in violation of this longstanding and well-known moratorium has the potential to seriously impact this iconic species, to the detriment of the many honest commercial and recreational fishers who depend upon this fishery,” said Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division. “Today’s plea agreement demonstrates the department’s commitment to pursuing those who fail to respect laws enacted to protect and conserve important marine resources.”
“Our office is pleased to partner with the Environment and Natural Resources Division of the Department of Justice in these significant cases,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “These prosecutions make clear that efforts to circumvent laws regulating commercial fishing -- which are implemented to sustain the species for the benefit of future generations -- will be enforced vigorously.”
A sentencing hearing has been scheduled for the March 27, 2017, term of court. Williams faces a maximum sentence of five years in prison, a $250,000 fine, and forfeiture of the all of the fish illegally harvested and the equipment used to commit the offense, including the commercial trawler, and all gear, electronics, and other harvesting and sorting equipment on the trawler.
The overall investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol and the Virginia Marine Police. This case is being prosecuted by Senior Litigation Counsel Banumathi Rangarajan of the U.S. Attorney’s Office for the Eastern District of North Carolina and Trial Attorney Lauren Steele of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
Ada Man Pleads Guilty to Possession of Sawed-Off ShotgunRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that JARED JAMES MOCK, age 36, of Ada, Oklahoma, pled guilty to POSSESSION OF UNREGISTERED FIREARM (SAWED-OFF SHOTGUN), in violation of Title 26, United States Code, Sections 5861(d), 5841, 5845(a) and 5871, punishable by not more than 10 years imprisonment, up to a $250,000 fine or both.
The Indictment alleged that on or about December 10, 2015, 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.
The charge arose from an investigation by the Ada Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney Dean Burris represented the United States.
9 December 2016
Winter Haven Man Sentenced to Life Imprisonment for Assaulting Federal Officers and Drug OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazarra today sentenced Altius Willix (48, Winter Haven) to life in federal prison for conspiracy, attempted possession of methamphetamine, and assaulting federal officers. A federal jury found him guilty on August 4, 2016.
According to testimony presented at trial, Willix arranged for four pounds of pure methamphetamine to be mailed from Tempe, Arizona to Winter Haven, Florida. After Willix attempted to retrieve the parcel, three federal agents approached him. Willix fled and ultimately collided with one of the agents, causing him to fall to the ground. Willix continued to resist arrest, as agents attempted to detain him, resulting in their injury. During the struggle, Willix tried to remove holstered firearms from two of those agents. When told to let go, Willix responded, “You’re gonna have to kill me.” Willix was ultimately handcuffed and taken into custody.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Winter Haven Police Department. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.
Wheatland Man Sentenced for Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Wheatland, Mo., man has been sentenced in federal court for illegally possessing two machine guns.
William “Bill” Harlan Parker, IV, 41, of Wheatland, was sentenced on Wednesday, Dec. 7, 2016, by U.S. District Judge Stephen R. Bough to three years and 10 months in federal prison without parole.
On May 17, 2016, William Parker pleaded guilty to possessing machine guns. Under federal law, it was illegal for him to possess any firearms or ammunition due to a prior misdemeanor conviction of domestic violence.
William Parker’s son and co-defendant, Devlin Quanah Parker, 21, of Wheatland, pleaded guilty on Aug. 2, 2016, to possessing a firearm with an altered and obliterated serial number. He is scheduled to be sentenced on Dec. 19, 2016.
Federal agents executed search warrants at Bill Parker’s residence on Oct. 23, 2015. William Parker was in the hallway holding an AR-15 style rifle. He was given verbal commands to put the rifle down, which he did, and he was then placed in handcuffs. Agents seized the AR-15 style rifle, a .223-caliber rifle. Agents also found several other firearms in the residence, including a Springfield .40-caliber pistol, a Stevens 12-gauge shotgun, an archangel .22-caliber rifle, and a Para .45-caliber pistol.
Devlin Parker was sleeping on a cot in a Chevrolet van outside the residence. Inside the van, officers found a Smith & Wesson .40-caliber handgun with no serial number, which fell from the blankets that Devlin Parker was using in the van. There was also a 12-gauge shotgun with no markings. In a box behind the driver’s seat there were two AR-15 style rifles with no visible identifying markings. The rifles were fully automatic and thus “machine guns.” Neither of the machine guns were registered in the National Firearms Registration and Transfer Record to either William Parker or Devlin Parker, and thus, could never have been lawfully possessed.
William Parker told agents that all of the firearms belonged to him and admitted that he had been making “AR-15 rifles.”
The investigation began when a cooperating individual reported to the Hickory County, Mo., Sheriff’s Department that s/he saw William and Devlin Parker with pistols on the back side of their hips on Oct. 12, 2015, at their residence. William Parker showed the cooperating individual two AR-15 rifles that were in his van, which he referred to as a “ghost gun” – meaning that the firearms did not have serial numbers on them. He told him/her that none of his firearms were registered.
Two cooperating individuals, one of whom was equipped with a recording device, met with William Parker at his residence a week later. William Parker showed them the two firearms, one of which was shorter than legally permissible and neither of which had serial numbers. William Parker stated, “You’re not supposed to do that, but I don’t believe in NFA (National Firearms Act) rules, personally.”
William Parker also stated to the cooperating individuals, “What about if I get pulled over, I’m thinking if they’re going to take my guns, I’m going to die, I’m going down, I’m giving my bullets first.” If the government came to him, he said, “I’m not going to be questioned … If there’s ever questions for me from them it’s going to be answered in lead … I’m going to take as many of them as I can.”
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Hickory County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Whatcom County Woman Sentenced for Providing Felon Access to FirearmsRead the Press Release
A 66-year-old Whatcom County, Washington woman was sentenced to three months home detention and two years of supervised release today in U.S. District Court in Seattle for aiding and abetting the possession of firearms by her son, a convicted felon who was prohibited from possessing firearms, announced U.S. Attorney Annette L. Hayes. JEANNE TINKER-SMITH repeatedly went with her son and purchased firearms and allowed him to have access to the firearms despite knowing that her son had a felony conviction. Tragically, TINKER-SMITH’s son was fatally shot by police after he fired on them in November 2014. A jury in U.S. District Court in Seattle found TINKER-SMITH guilty following a three-day trial in September 2016. At the sentencing hearing U.S. District Judge Robert S. Lasnik told her, “The decisions you made are part of the reason your son is not here right now.”
“It is critical that we enforce our gun laws and keep firearms out of the hands of convicted felons in order to protect public safety, said U. S. Attorney Annette L. Hayes. This tragic case is a reminder that it is against the law for any of us to help a prohibited person get a firearm – even if that person is someone we are close to.”
According to records filed in the case and testimony at trial, TINKER-SMITH purchased five firearms between August and November 2014. TINKER-SMITH was accompanied by her son Cecil on multiple occasions. Cecil was prohibited from possessing firearms because he had a felony conviction. On November 16, 2014, TINKER-SMITH and her son went to a firearms store seeking to purchase a handgun. She was unable to complete the purchase because she did not have a concealed weapons permit. Shortly after the trip to the gun store, one of TINKER-SMITH’s neighbors reported Cecil was firing a gun in an unsafe manner. When law enforcement arrived, Cecil ignored commands to drop the weapon and began a stand-off with law enforcement officers.
During the stand-off, TINKER-SMITH made various statements to the officers – in one she denied her son was in the house. When the SWAT team ultimately entered the house, Cecil fired at officers and was killed when officers fired back. One police officer was grazed but not seriously injured. Multiple firearms were found in the house, in locations where Cecil had access to them.
The case was investigated by the Bellingham Police Department and the Washington State Patrol. The case was prosecuted by Assistant United States Attorneys Thomas Woods and Senngjae Lee.
Unlicensed Michigan Physician Pleads Guilty to Conspiracy to Commit Wire Fraud for Role in $6.3 Million Detroit-Based Medicare Fraud SchemeRead the Press Release
A Michigan man pleaded guilty to fraud charges for his role in a scheme to defraud Medicare out of approximately $6.3 million while he acted as an unlicensed physician at a Detroit in-home physician services company.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Renald Dasine, 54, of Ypsilanti, Michigan, pleaded guilty yesterday to one count of conspiracy to commit wire fraud before U.S. District Judge John Corbett O’Meara of the Eastern District of Michigan. Sentencing has been scheduled for March 8, 2017.
As part of his guilty plea, Dasine admitted that in connection with his employment at B&M Visiting Doctors PLC, he submitted fraudulent claims to Medicare as part of a fraud scheme that took place from 2005 to 2013. Dasine saw patients and falsified related patient records, including medical documents, prescriptions for controlled substances and billing documents, all under the name of a licensed medical doctor.
Cecil Alexander Kent, Charles McRae and Alvin Williams, all unlicensed physicians, previously pleaded guilty for their involvement in the B&M Visiting Doctors PLC scheme.
The FBI’s Detroit Division and HHS-OIG investigated this case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Fraud Section Trial Attorneys Melissa Aoyagi and Kyle Maurer prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Two from New York City indicted for having a kilogram of fentanylRead the Press Release
Two New York City men were indicted for having a kilogram of fentanyl, said U.S. Attorney Carole S. Rendon and DEA Special Agent in Charge Timothy J. Plancon.
Hector Lebron, 43, and Alberto Marcial-Santos, 35, were each indicted on one count of possession with the intent to distribute a kilogram of fentanyl.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Drug Enforcement Administration, with assistance from the Ohio State Highway Patrol. The case is being handled by Assistant United States Attorney Michael J. Freeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two South Florida Residents Charged with Conspiring to Misbrand and Sell Expired Gastric Banding SystemsRead the Press Release
Two South Florida residents charged with conspiring to misbrand and sell expired medical devices, Gastric Banding Systems, for profit.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Justin D. Green, Special Agent in Charge, United States Food and Drug Administration’s (FDA) Office of Criminal Investigations (OCI), Miami Field Office, made the announcement.
On December 8, 2016, Peter Lawrence Kafka, 57, of Parkland, Florida and Gregory Charles Grimm, 45, of Saint Petersburg, Florida were indicted on a single count of conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349, three counts of wire fraud, in violation of Title 18, United States Code, Section 1343, a single count of conspiracy, in violation of Title 18, United States Code, Section 371, and six counts of misbranding devices after shipment in interstate commerce, in violation of Title 21, United States Code, Section 331(k).
According to the indictment, between June 2014 and October 15, 2015, Kafka and Grimm engaged in a scheme to unlawfully enrich themselves by misbranding LAP-BAND Adjustable Gastric Banding Systems, changing the serial number and expiration date in order to sell expired medical devices for profit. Between June 2014 and August 2015, Kafka and Grimm were employees of Apollo Endosurgery, Inc., where they served as Senior Account Executives.
The indictment alleges that Kafka would purchase expired or nearly expired LAP-BANDS through the internet. Kafka would then supply Grimm with these expired or nearly expired LAP-BANDs. Grimm created false labels with fraudulent serial numbers and expiration dates to hide the true expiration date of the LAP-BANDs. Grimm would then provide Kafka the misbranded LAP-BANDs, the labeling of which bore false expiration dates. Kafka then sold the misbranded LAP-BANDs to local physicians.
The investigation began as a result of a referral by Apollo Endosurgery to the FDA.
Mr. Ferrer commended the investigative efforts of the FDA-OCI in this matter. This case is being prosecuted by Assistant United States Attorney Joshua S. Rothstein.
An indictment contains mere allegations and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two More Plead Guilty to Drug Charges in Relation to Operation Leaving Las VegasRead the Press Release
ABINGDON, VIRGINIA – Two more individuals associated with a larger conspiracy charged with distributing methamphetamine and oxycodone in Southwest Virginia, Las Vegas, Eastern Kentucky and elsewhere, pled guilty today to Federal drug charges in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Today in District Court, Amy Lorene Arcaro-Moser, 52 and Steven Michael Salyer, 27, each pled guilty to a one count Information charging each with one count of conspiring to distribute methamphetamine and/or oxycodone. In addition, Skipper pled guilty to one count of conspiring to commit money laundering.
The charges were brought as part of an investigation conducted by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and others. Thirty-two individuals were indicted and arrested last month as part of that investigation.
“These individuals were part of a larger drug conspiracy that brought methamphetamine, and other dangerous drugs into Virginia,” United States Attorney Fishwick said today. “These substances ruin lives and communities. We will continue to be vigilant in taking down large scale conspiracies.”
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, in 2014 law enforcement targeted a drug trafficking organization responsible for the transportation and distribution of crystal methamphetamine between Law Vegas and Abingdon, Virginia. The Investigation revealed that members of the organization were sending crystal methamphetamine and oxycodone via FedEx and the United States Parcel Service from Las Vegas to many people in Abingdon and Eastern Kentucky. Investigators were able to determine the identity not only of the local distributors of the crystal methamphetamine, but also the suppliers located in Las Vegas.
The investigation has found that at least $1,000,000 in drug proceeds were generated by this drug trafficking conspiracy. These proceeds were routinely transferred from Abingdon to Las Vegas utilizing bank accounts in the names of drug suppliers located in Law Vegas. Funds were also transferred between Abingdon and Las Vegas using Western Union and Moneygram services.
The investigation of the case was conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Internal Revenue Service Criminal Investigations, United States Marshals Service, Virginia State Police, Washington County, Virginia Sheriff’s Office, Abingdon Police Department, Marion Police Department, and Smyth County, Virginia Sheriff’s Office. Assistant United States Attorney Zachary T. Lee will prosecute the case for the United States.
Two Men Agree to Plead Guilty to Oxycodone ConspiracyRead the Press Release
BOSTON – A Medford man and a Pembroke man pleaded guilty yesterday in U.S. District Court in Boston to an oxycodone conspiracy.
Christopher Alonardo, 36, of Medford, agreed to plead guilty to conspiracy to possess with intent to distribute and to distribute oxycodone, and possession with intent to distribute oxycodone. U.S. District Judge George A. O’Toole, Jr., deferred accepting Alonardo’s plea until sentencing on March 16, 2017. Kevin Stevens, 51, of Pembroke, pleaded guilty in a separate hearing to conspiracy to possess with intent to distribute and to distribute oxycodone. Judge O’Toole scheduled Stevens’s sentencing for March 28, 2017.
Alonardo and Stevens admitted to conspiring with each other from approximately August 2015 through March 2016. Stevens was stopped by the Massachusetts State Police on Nov. 5, 2015, and was found in possession of 175 30mg pills of oxycodone that were intended for redistribution.
The charge of conspiring to and possessing with intent to distribute oxycodone provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalty. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigation, the Massachusetts Department of Correction, and the Boston, Medford and Quincy Police Departments. Assistant U.S. Attorney Timothy E. Moran of Ortiz’s Organized Crime and Gang Unit is prosecuting the case.
Twenty-Six Count Superseding Indictment Unsealed Charging Eight Defendants from Eastside Hollygrove Neighborhood with Drug and Firearm ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced today’s unsealing of a 26-count Superseding Indictment charging JONATHAN LAWRENCE, a/k/a “Chop,” a/k/a “Mego,” age 29; DONALD MARCELIN, a/k/a “Snook,” a/k/a “Black,” a/k/a “Golfer,” age 39; BRANDON HALL, a/k/a “B-Hilly,” age 27; BRIAN MAXSON, a/k/a “Chin,” age 33; ALOYSIUS KORIEOCHA, a/k/a “Madi,” a/k/a “Ball,” age 34; DWAYNE LABRANCH, a/k/a “Mondo,” a/k/a “Black,” age 34; LANCE STOVALL, a/k/a “Lele,” a/k/a “Allen,” age 27; and VONZO MAGEE, a/k/a “Zo,” a/k/a “Dark Low,” age 29; all of New Orleans, with numerous violations of the Federal Controlled Substances Act and the Federal Gun Control Act. All of the defendants are charged in a conspiracy to distribute and possess with intent to distribute heroin and fentanyl, along with other substantive offenses.
The following chart summarizes the charges alleged in the Superseding Indictment, along with the penalties that each defendant faces if convicted of the alleged offense.
Count
Charge
Defendants
Penalties
1
Conspiracy to Distribute and Possess with Intent to Distribute Heroin and Fentanyl – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), 841(b)(1)(C), and 846
All
LAWRENCE, HALL, MARCELIN, KORIEOCHA: 10 years to life imprisonment, at least 5 years supervised release, $10,000,000 fine
MAXSON, LABRANCH, STOVALL, MAGEE:
5 to 40 years, at least 4 years supervised release, $5,000,000 fine
2
Conspiracy to Possess Firearms in Furtherance of a Drug-Trafficking Offense – Title 18 U.S.C. § 924(o)
LAWRENCE, HALL, LABRANCH, MAGEE, MAXSON
0 to 20 years, not more than 3 years supervised release, fine of up to $250,000
3
Distribution of Heroin – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C)
KORIEOCHA
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
4
Distribution of Heroin – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C)
LAWRENCE
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
5
Distribution of Heroin – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C)
LAWRENCE, MARCELIN
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
6
Distribution of Heroin – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C)
LAWRENCE
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
7
Distribution of Heroin – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C)
LAWRENCE
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
8
Possessing a Firearm in Furtherance of Drug Trafficking (Discharge) – Title 18 U.S.C. § 924(c)(1)(A)(iii); 18 U.S.C. § 2
LAWRENCE, HALL, LABRANCH
10 years to life imprisonment, not more than 5 years supervised release, $250,000 fine
9
Discharge of a Firearm in a School Zone – Title 18 U.S.C. § 922(q)(3)(A); 18 U.S.C. § 2
LAWRENCE, HALL, LABRANCH
0 to 5 years, not more than 3 years supervised release, $250,000 fine
10
Distribution of Heroin and Acetyl Fentanyl, Resulting in Death – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C)
HALL
Mandatory life sentence (given HALL’s prior felony drug conviction), $1,000,000 fine
11
Distribution of Fentanyl – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C)
HALL
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
12
Distribution of Fentanyl – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C)
HALL
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
13
Distribution of Fentanyl – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C)
MAXSON
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
14
Distribution of Heroin, Resulting in Death – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C)
LAWRENCE
Mandatory life sentence (given LAWRENCE’s prior felony drug conviction), $1,000,000 fine
15
Distribution of Heroin – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C)
STOVALL
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
16
Distribution of Heroin – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C)
LABRANCH
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
17
Distribution of Fentanyl – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C)
STOVALL
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
18
Possessing a Firearm in Furtherance of Drug Trafficking (Discharge) – Title 18 U.S.C. § 924(c)(1)(A)(iii); 18 U.S.C. § 2
LAWRENCE, HALL
10 years to life imprisonment, not more than 5 years supervised release, $250,000 fine
19
Possessing a Firearm, Convicted Felon – Title 18 U.S.C. § 922(g)
LAWRENCE
0 to 10 years, not more than 3 years supervised release, $250,000 fine
20
Possessing a Firearm, Convicted Felon – Title 18 U.S.C. § 922(g)
HALL
0 to 10 years, not more than 3 years supervised release, $250,000 fine
21
Distribution of Heroin – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C)
MAXSON
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
22
Possession with Intent to Distribute Heroin – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C)
MAXSON
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
23
Possessing a Firearm in Furtherance of Drug Trafficking– Title 18 U.S.C. § 924(c)(1)(A)(i)
MAXSON
5 years to life imprisonment, not more than 5 years supervised release, $250,000 fine
24
Distribution of Heroin – Title 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C)
LABRANCH
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
25
Possessing a Firearm in Furtherance of Drug Trafficking– Title 18 U.S.C. § 924(c)(1)(A)(i)
MAGEE
5 years to life imprisonment, not more than 5 years supervised release, $250,000 fine
26
Possessing a Firearm, Convicted Felon – Title 18 U.S.C. § 922(g)
MAGEE
0 to 10 years, not more than 3 years supervised release, $250,000 fine
U.S. Attorney Polite reiterated that the Superseding Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the FBI New Orleans Gang Task Force (NOGFT), which led this investigation and was assisted by the Drug Enforcement Administration, New Orleans Police Department, St. Tammany Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, and the Orleans Parish District Attorney’s Office. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Texas Man Indicted in Seattle for Scamming Immigrants by Claiming He Could Provide Legal Status for MoneyRead the Press Release
A 49-year old El Paso, Texas man was indicted on December 7, 2016 with six counts of wire fraud and two counts of impersonating a federal officer or employee, announced U.S. Attorney Annette L. Hayes. ALEJANDRO GURANY, allegedly collected thousands of dollars from immigrants after telling them he worked for a government immigration office and could provide the immigrants with legal status for a fee. GURANY was never employed by a federal immigration agency. At least nineteen victims in Washington and Ohio have been interviewed by law enforcement. Authorities are seeking to contact others who may have been victimized.
“While law enforcement has identified more than a dozen victims in this case, there may be more out there,” said U.S. Attorney Annette L. Hayes. “I encourage anyone who has information about this case, and anyone who may have been victimized by this scam to contact Investigators.” Tips related to such crimes can be made by email (https://www.ice.gov/we form/HSI-tip-form) or by calling 1-866-DHS-2-ICE.
GURANY has been summoned to appear in U.S. District Court in Seattle on January 5, 2017.
According to the indictment, between at least December 2011 and March 2015, GURANY pretended to be an employee of the United States and told immigrants he could get them legal status in the U.S. in exchange for money. GURANY would travel to SeaTac, Washington, and meet with immigrants at an airport hotel. The indictment alleges that GURANY would take personal identifying information, including photographs and fingerprints from the immigrants seeking green cards or citizenship. Some of the immigrants paid GURANY thousands of dollars believing he would provide legal status.
“This defendant preyed on vulnerable victims who were fearful of being deported by falsely representing himself to be in a position to assist them. His actions misrepresented the agency's purpose and processes while creating a false sense of fear in those wishing to seek help from law enforcement,” said Shawn Fallah, resident agent in charge of the U.S. Immigration and Customs Enforcement (ICE), Office of Professional Responsibility (OPR) in Seattle. “We remain committed to safeguarding the public from these imposters. ICE encourages community members to report this type of fraud to help us protect and prevent future victims.”
Wire fraud is punishable by up to 20 years of imprisonment and a $250,000 fine. Impersonating an officer or employee of the United States is punishable by up to three years of imprisonment and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations (HSI). The case is being prosecuted by Assistant United States Attorney Nicholas Manheim.
Robins Employee Convicted on Child Porn ChargesRead the Press Release
United States Attorney G.F. “Pete” Peterman, III announces that Steven Craig Deason, Jr., age 40 of Gray, Georgia, was found guilty of one count of attempted online enticement of a minor and six counts of attempted transfer of obscene matter to a minor. A jury, sitting in the Middle District of Georgia, found Mr. Deason guilty on December 9, 2016 following a trial that lasted a week. U.S. District Court Judge Marc Thomas Treadwell was the presiding judge.
The evidence presented at trial showed that between January 6, 2016, and February 4, 2016, Mr. Deason, using the alias “Cameron,” chatted online with a person who identified itself as a 14-year-old girl named Amber. In actuality, Amber was an undercover agent. During the course of the chats, Mr. Deason discussed meeting with Amber to engage in sexual activity, to include oral sex and sexual intercourse. Mr. Deason also sent Amber pornographic pictures and videos to get her used to the things they had been talking about and comfortable with sex. Mr. Deason told Amber that he chose pictures where the men appeared older and the females appeared younger to match their age difference. Mr. Deason also instructed Amber how to masturbate, telling her it would make their sexual encounter better.
Upon his conviction, Mr. Deason was taken into the custody of the United States Marshals. A sentencing date has not yet been set. Mr. Deason faces a mandatory minimum sentence of 10 years’ imprisonment, up to the possibility of life imprisonment, on the attempted online enticement of a minor charge. Each of the attempted transfer of obscene matter to a minor charges carries a maximum sentence of 10 years’ imprisonment. Mr. Deason will also be required to register as a sex offender.
This case was investigated by the Air Force Office of Special Investigations, with coordination from the Federal Bureau of Investigation. Assistant United States Attorneys Beth Howard and Michael Solis prosecuted the case for the Government.
“The seduction of children is a vile crime and one that is growing in frequency throughout the country and in the Middle District of Georgia,” said United States Attorney G. F. “Pete” Peterman, III. “The predators who attempt to defile our youth in this fashion should take note that law enforcement officers and prosecutors are hunting them just as they are hunting their victims.”
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Queens Man Charged in Manhattan Federal Court with Sale of Artwork Stolen from Prominent New York CollectionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today a complaint charging LEON ZINDER with the interstate sale of stolen property in connection with his theft and attempted sale of more than a dozen works of art. ZINDER was arrested this morning at his home in Forest Hills, Queens, and will be presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Katherine H. Parker.
U.S. Attorney Preet Bharara said: “As alleged, Leon Zinder stole works of art worth more than $600,000 from his employer and then sought to sell them through a flea market in Manhattan. This Office, working with our law enforcement partners at the FBI, have helped recover and return countless works of stolen art and artifacts to their rightful owners. And today, we do so again, as well as seeking to hold the alleged thief accountable.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “As we allege in our case, Leon Zinder stole African tribal and Native American art from his employer over a two year period then fabricated stories of the pieces coming from a storage-unit close-out sale or from an elderly widow in Arizona to establish a consignment sale relationship with an unsuspecting art dealer. This case was brought forward to the FBI by an art dealer who started to realize these stories were too good to be true.”
According to the allegations in the Complaint[1]:
From approximately July 2010 through April 2012, LEON ZINDER was employed as an art handler by a New York-based company (the “Company”) that manages an extensive art collection consisting of thousands of individual artworks, including an extensive collection of Native-American and African ethnographic artwork. During that time, ZINDER stole at least 13 works of art from facilities maintained by the Company.
Beginning in approximately September of 2015 through October 2016, ZINDER sold, or attempted to sell, the stolen artwork through a consignment relationship with an art dealer who conducted his business through an outdoor flea market in lower Manhattan (the “Dealer”). As part of his efforts to sell the stolen artwork, ZINDER falsely claimed he had obtained the works from both the elderly widow of a sheriff in Phoenix, Arizona, and from a storage-unit close-out sale.
In total, ZINDER attempted to sell at least 13 works of art through the Dealer, worth more than $600,000. This included at least three items that ZINDER had stolen from the Company’s Greenwich, Connecticut, facility and transported to Manhattan: a Fang Reliquary Guardian Head statue valued at approximately $85,000; a Native American mask valued at approximately $75,000; and a Pende mask valued at approximately $5,000.
Eventually, the Dealer became aware that several of the artworks he had helped ZINDER to sell had been reported stolen by the Company. At that point, the Dealer contacted the FBI and began assisting in the subsequent investigation, including turning over the majority of the stolen works to the FBI.
* * *
ZINDER, 48, of Forest Hills, Queens, is charged with one count of interstate sale of stolen property, which carries a maximum penalty of 10 years in prison and a maximum fine of $250,000, or twice the defendant’s gross gain or twice the victim’s gross loss resulting from the defendant’s conduct, whichever is greater. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara thanked the FBI’s Art Crime Team for its outstanding work on this matter.
Anyone with information relevant to this investigation is asked to contact the FBI’s Art Crime Team at (212) 384-1000 or https://tips.fbi.gov/.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Noah Falk is in charge of the case.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations and every fact described should be treated as an allegation.
Postal Employee Arrested for Soliciting BribesRead the Press Release
McALLEN, Texas – A Mission man and employee of the U.S. Postal Service (USPS) has been taken into custody on charges he accepted more than $1,000 in bribes, announced U.S. Attorney Kenneth Magidson.
Noe Olvera, 43, was arrested today upon his arrival at work at the USPS facility in McAllen. He is expected to make an initial appearance before U.S. Magistrate Peter E. Ormsby Monday morning.
A federal grand jury returned the indictment under seal Dec. 7, 2016, which was unsealed today upon his arrest.
The indictment charges Olvera with accepting a bribe on two separate occasions in October 2014 totaling $1,200. As a USPS employee, requesting and receiving these bribe payments are in violation of Olvera’s official duty. Olvera allegedly sought and accepted these bribes from another individual in exchange for providing lists of postal customer names and addresses.
The USPS – Office of Inspector General investigated the case with assistance from the FBI. Assistant U.S. Attorneys David A. Lindenmuth and Roberto Lopez Jr. are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Parkville Man Sentenced to 10 Years in Prison for Receipt of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Ruben Uy Lim, age 53, of Parkville, Maryland, today to 10 years in prison, followed by 20 years of supervised release for receipt of child pornography. In addition, Lim has admitted taking hundreds of videos of underage girls at swim meets, using a filter that allowed the camera to see through certain fabrics, including bathing suits. Judge Russell ordered that, upon his release from prison, Lim must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on November 17, 2015, Baltimore County Police detectives executed a search warrant at Lim’s residence and recovered electronic devices, including a hard drive. A subsequent forensic examination of the hard drive revealed images and video files depicting prepubescent girls engaged in sexual acts, which had been received over the internet.
In addition, law enforcement recovered six video cameras and computer discs which contained hundreds of homemade videos dating back to 2004, which were taken at swim meets, on beaches and at water parks. Lim took the videos using a filter that attached to the camera’s lens and allowed the camera to see through certain fabrics, including bathing suits. Lim filmed middle and high school aged girls in such a way that their breasts and vaginal areas were visible in the recordings. In the majority of the videos, Lim focused on the pubic area of the female swimmers. Lim admitted that he traveled to swim meets around the country for the sole purpose of recording children using the special camera lens, which Lim referred to as the “X-Ray lens.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the FBI, Baltimore County Policed Department and the Baltimore County State’s Attorney for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Lauren E. Perry, who prosecuted the federal case.
Owner of Several ‘Clean and Sober’ Residential Facilities in Snohomish County Sentenced for Drug TraffickingRead the Press Release
The operator of a number of ‘clean and sober’ residential facilities in Snohomish County, Washington was sentenced today in U.S. District Court in Seattle to six years in prison and five years of supervised release for drug trafficking crimes, announced U.S. Attorney Annette L. Hayes. TIMOTHY REHBERG, 50, of Everett was arrested on February 9, 2016, following an investigation that revealed he was dealing illegal drugs. In a search of the office at the primary I.C. Clean People Recovery Housing, Incorporated facility in Everett, authorities located approximately one pound of crystal methamphetamine, a quarter pound of heroin, small quantities of marijuana, oxycodone and methadone, and a loaded .38 caliber revolver. REHBERG pleaded guilty in September 2016 to possession of heroin and methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. At the sentencing hearing U.S. District Judge Robert S. Lasnik said, “there is no excuse for having that loaded firearm in the safe.”
“As the operator of a clean and sober house, this defendant knew better than most the devastation caused by drug addiction, said U. S. Attorney Annette L. Hayes. “It is outrageous that he chose to run his drug operation out of such a facility. His conduct certainly is deserving of a significant penalty.”
According to various records in state and federal court, REHBERG came to the attention of law enforcement in December 2015, when a witness identified him as someone selling methamphetamine, heroin, and marijuana. Further investigation confirmed REHBERG’s identity and his occupation as the owner and operator of a chain of clean and sober housing facilities under the name ‘I.C. Clean People Recovery Housing.’ The person working with law enforcement made four purchases of illegal drugs, including methamphetamine, heroin, and marijuana, from REHBERG. REHBERG is prohibited from possessing firearms due to prior felony convictions as well as an active protection order from a domestic partner. REHBERG admitted he was the only person with access to the safe where the gun was stored and that he had it in connection with his drug trafficking activities.
The investigation was led by the DEA and SPD with assistance from Health and Human Services, Office of the Inspector General (HHS-OIG), the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Washington State Attorney General’s Office.
The case was prosecuted by Assistant United States Attorney Siddharth Velamoor.
Orangeville, Pennsylvania Man Sentenced for Distribution of Child PornographyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Cedrick Vaughn Perkins, age 20, of Orangeville, Pennsylvania, was sentenced today by United States District Court Judge Matthew W. Brann, to 60 months’ imprisonment on child pornography distribution charges.
Judge Brann also ordered Perkins to pay $3,000 in restitution and to register as a sex offender.
According to United States Attorney Bruce D. Brandler, Homeland Security Investigators received information from the Pennsylvania Internet Crimes Against Children Task Force that Perkins downloaded numerous videos and images containing child pornography from the internet between January and June 2015. Forensic examination of Perkins’s cell phone and computer revealed approximately 75 images and 90 videos of child pornography.
“HSI agents are committed to thwarting the distribution of child pornography, and ensuring criminals like the defendant are brought to justice for preying on vulnerable children,” said Marlon V. Miller, special agent in charge of HSI in Pennsylvania.
The case was investigated by Homeland Security Investigations. Assistant United States Attorney Todd K. Hinkley prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Norfolk City Treasurer Found Guilty of Public Corruption and PerjuryRead the Press Release
NORFOLK, Va. – Anthony L. Burfoot, 48, of Norfolk, was convicted today by a federal jury on charges of conspiracy to commit honest services wire fraud, honest services wire fraud, conspiracy to obtain property under color of official right, obtaining property under color of official right, and perjury. Burfoot is the current Norfolk City Treasurer and a former Vice Mayor of Norfolk and City Councilman.
“Public corruption strikes at the heart of democracy and erodes public confidence in government,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Anthony Burfoot violated the sacred trust we place in our elected officials and in doing so his greed eclipsed his vision for building up his own community. The citizens of Norfolk have a right to nothing less than fair and honest government, and this conviction should serve as a warning to anyone who thinks about selling their office. My office will continue to investigate and prosecute those who would sell their office. I want to thank the Assistant United States Attorneys and the FBI for their diligence and dedication in pursing this important case.”
“Public officials are entrusted with authority by their constituents and are expected to serve with integrity and honor,” said Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office. “Greed and self-interest are a fundamental betrayal to the community and have no place in public service. This conviction demonstrates the FBI’s commitment to thoroughly investigating public corruption at all levels of government and bringing justice to those who violate the law at the expense of the public’s trust.”
According to court records and evidence presented at trial, from 2005 through in or about Feb. 15, 2011, Burfoot engaged in a scheme to defraud the citizens of Norfolk of their right to the honest services of a Norfolk Councilman, Vice Mayor, and Chief Deputy Treasurer. Specifically, Burfoot solicited things of value including money, car payments, and home appliances from individuals with matters before city council and, in exchange, promised to perform specific official acts as well as other actions on an as needed basis on their behalf. Burfoot had illicit relationships with the managers of Tivest Development company as well as Thomas Arney, another developer and local restaurant owner. The managers of Tivest paid hundreds of thousands of dollars to Burfoot and, in exchange, Burfoot voted in favor of City ordinances that provided City-owned land to Tivest for nominal cost and additional City funds for infrastructure improvements. At Burfoot’s request, Arney paid $25,000 to the mother of two of Burfoot’s children after Burfoot promised to obtain the necessary votes for Arney to open a gentlemen’s club on Granby Street in Norfolk. Burfoot also committed perjury, in numerous ways, by claiming under oath during a federal trial that he never accepted nor solicited a thing of value in exchange for performing an official act. Furthermore, according to court records and evidence presented at trial, Ronald Boone, another developer and local restaurant owner, provided cash, gifts, free access to a beach house, other things of value to Burfoot. In exchange, Burfoot performed specific official actions and promised to engage in future official actions to benefit Boone and his business interests.
Burfoot faces a maximum penalty of 5 to 20 years in prison when sentenced on April 17, 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; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the verdict was accepted by U.S. District Judge District Judge Henry C. Morgan, Jr. Assistant U.S. Attorneys Melissa E. O’Boyle, Uzo E. Asonye, and Katherine Lee Martin are 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. 2:16-cr-6.
Montgomery Man Sentenced to One Year in Prison for Tax Fraud SchemeRead the Press Release
Montgomery, Alabama – On December 5, 2016, Jarvarus Antwon Smith, 31, of Montgomery, Alabama, was sentenced to 1 year in prison following his conviction on federal access device fraud charges, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
Evidence collected during the investigation established that in June 2013, officers with the Montgomery Police Department (MPD) executed a search warrant at Smith’s Montgomery residence after MPD developed Smith as a subject in another case. During the search, officers located 25 debit cards, mostly in the names of other individuals, notebooks containing personal identifying information of 59 individuals, and account numbers. It was later determined that this and other personal information was used to file over 135 fraudulent federal income tax returns.
In addition to the imprisonment, Smith will be subject to a three-year term of supervised release after prison and he is ordered to pay restitution in the amount of $92,952.
“Jarvarus Smith defrauded the government and the taxpaying public,” stated Special Agent in Charge Veronica F. Hyman-Pillot. “The outcome of this investigation is a direct result of a persistent effort to identify and eliminate refund fraud. We are approaching filing season and the judgment against Smith should serve as a warning to anyone considering similar criminal activities.”
“My office has always placed a high priority on protecting taxpayer dollars,” stated U.S. Attorney Beck. “I would like to commend the efforts of all the law enforcement agencies involved for helping us bring Smith to justice.”
This case was investigated by the Internal Revenue Service-Criminal Investigation, United States Secret Service, and the Montgomery Police Department. Assistant United States Attorney Todd A. Brown prosecuted the case.
Meth Ice Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Heather Nicole Thompson, 32, of Mobile, was sentenced in federal court today for her role in a methamphetamine ice distribution conspiracy. Thompson entered a guilty plea to the indictment in September of 2016, admitting her participation in two substantive distribution counts and a count charging conspiracy to possess with intent to distribute methamphetamine ice.
United States District Court Judge Kristi K. Dubose imposed a sentence of 87 months’ imprisonment on each count, and ordered that they run concurrently. She also ordered that Thompson would serve a term of supervised release of three years following her release from prison. She ordered that during her supervision, Thompson undergo testing and treatment for drug use and that she pay a $300 special mandatory assessment. No fine was imposed.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Members of Taos County-Based Heroin Trafficking and Money Laundering Ring Enter Guilty PleasRead the Press Release
ALBUQUERQUE – Ivan Romero, 40, the leader of a heroin trafficking organization based in Taos County, N.M. pled guilty earlier this week to federal heroin and money laundering charges filed as the result of a 15-month DEA-led multi-agency investigation. His brother, Ricco Romero, 29, and his wife, Melissa Romero, 37, also entered guilty pleas to federal charges pursuant to plea agreements with the U.S. Attorney’s Office.
Ivan Romero, Ricco Romero, Melissa Romero and five other defendants were charged in an eight-count indictment filed in Dec. 2015, that was later modified to add a ninth defendant and five additional charges by superseding indictment filed in Feb. 2016. The superseding indictment charged Ivan Romero, Ricco Romero and six other defendants with conspiring to distribute from at least June 2012 through Dec. 2015. It also charged Ivan Romero, Ricco Romero, Melissa Romero and one other defendant with conspiring to launder heroin trafficking proceeds. The superseding indictment also included substantive heroin trafficking and firearms charges against specific defendants, as well as forfeiture provisions seeking forfeiture to the United States of any and all assets and property derived, either directly or indirectly, from proceeds obtained from the criminal activities charged.
During a change of plea hearing on Dec. 5, 2016, Ivan Romero pled guilty to Counts 1 and 2 of the superseding indictment, which charged him with participating in a heroin trafficking conspiracy and a money laundering conspiracy. Ricco Romero also had a change of plea hearing on Dec. 5, 2016, during which he pled guilty to a felony information charging him with participation in a heroin trafficking conspiracy and a money laundering conspiracy, and to possessing firearms in furtherance of his drug trafficking activities. Melissa Romero entered a guilty plea on Dec. 8, 2016, to Count 2 of the superseding indictment, charging her with participating in a money laundering conspiracy.
According to the admissions in the plea agreements of Ivan Romero, Ricco Romero and Melissa Romero, as well as other court filings, Ivan Romero was the leader of a heroin trafficking organization based in Taos County. Ivan Romero and his brother Ricco Romero were responsible for purchasing quantities of heroin from suppliers in Albuquerque and Los Lunas, N.M. Other members of the organization acted as couriers and regularly transported large quantities of heroin to Ivan Romero and Ricco Romero in Taos County. Upon receiving the bulk heroin, Ivan Romero and Ricco Romero prepared the heroin for distribution by mixing or “cutting” it with other substances, repackaged it in smaller portions, and distributed it both directly and through a network of other drug dealers.
On April 2, 2015, law enforcement officers executed a state search warrant at Ivan Romero’s residence where they seized drug paraphernalia, 461 grams of marijuana, 30 grams of hashish, 300 grams of heroin and $64,920 in cash. Ivan Romero was arrested on state charges that day, and Ricco Romero subsequently assumed a greater managerial role in the heroin trafficking organization at that time.
Following Ivan Romero’s arrest on April 2, 2015, a state court set his bond at $90,000. Ivan Romero, Ricco Romero, Melissa Romero and others conspired to launder $90,000 in heroin proceeds to post that bond and secure Ivan Romero’s release from state custody. Ivan Romero soon violated the conditions of his release, was remanded back to state custody and a second bond was set at $150,000. In May 2015, Ivan Romero, Ricco Romero, Melissa Romero and others again conspired to launder an additional $150,000 in heroin proceeds to post that bond
On Nov. 17, 2015 and Dec. 1, 2015, Ricco Romero distributed heroin to an individual working with law enforcement agents. Thereafter, on Dec. 18, 2015, law enforcement agents obtained and executed a federal search warrant at Ricco Romero’s residence and at a stash house where Ricco Romero maintained a safe. During those searches, agents seized 96.8 grams of heroin, $70,562 in cash, and two firearms.
If their plea agreements are accepted by the court, Ivan Romero will be sentenced to a prison term within the range of 120 to 144 months, Ricco Romero will be sentenced to a 120-month prison term, and Melissa Romero will be sentenced to a term of probation. Pursuant to their plea agreements, Ivan Romero, Ricco Romero and Melissa Romero have agreed to forfeit $431,870 in heroin proceeds to the United States.
The investigation leading to the indictment was conducted by the Albuquerque office of the DEA, the HIDTA Region III Drug Task Force, New Mexico State Police, Taos Police Department, Taos County Sheriff’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Timothy S. Vasquez is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Ivory Coast Diplomat Sentenced for Conspiracy and FraudRead the Press Release
ALEXANDRIA, Va. – Koissy Thomas Kemmeth, 52, of New York, New York, was sentenced today to 15 months in prison for conspiracy to commit wire fraud and making a false, fictitious and fraudulent claim against the United States. Kemmeth was also sentenced to three years of supervised release, and ordered to forfeit $37,000 and pay $105,000 in restitution.
Kemmeth pleaded guilty on Sept. 14. According to court documents, Kemmeth was a native and citizen of the Ivory Coast who worked as a driver for the Ivory Coast Mission to the United Nations. From 2010 through February 2015, Kemmeth worked with another national of the Ivory Coast, Kouame Tanoh, to defraud others of money and property. As part of the conspiracy, Kemmeth created false and fraudulent employment verification letters for Tanoh, using Tanoh’s real name and also his aliases, on the official letterhead of the Ivory Coast Mission, thus appearing to have been issued under the official authority of the Mission. These letters falsely represented that Tanoh, or one of his aliases, was employed by the Mission. At least one of these letters, Kemmeth used the name of another diplomat who had previously served at the Mission, but had returned to the Ivory Coast by the date of the letter.
During that same time period, Kemmeth assisted Tanoh with a scheme that involved the preparation and electronic filing of false and fictitious federal and state income tax returns that requested fraudulent refunds. Some of these false claims were filed on behalf of Kemmeth, who knew he was not supposed to be filing any federal or state tax returns because he was in the United States as a foreign diplomat. Kemmeth also assisted with the scheme by providing his bank account information to Tanoh so that fraudulent refunds could be deposited into Kemmeth’s account. With Kemmeth’s knowledge and consent, Tanoh also used the mailing address for the Ivory Coast Mission on some of the fraudulent income tax returns. Kemmeth would then collect any mail sent to the Mission for these returns.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Terrence P. McKeown, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; Michael McGill, Special Agent-in-Charge, Social Security Administration Office of the Inspector General; and Thomas Holloman, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Eric M. Thorson, Inspector General, U.S. Department of Treasury made the announcement after sentencing by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Katherine L. Wong prosecuted 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. 1:16-cr-129.
Indictment Charges Former Cantor Fitzgerald RMBS Trader with Securities FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Goldsmith Romero, the Special Inspector General for the Troubled Asset Relief Program, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, Laura S. Wertheimer, the Inspector General for the Federal Housing Finance Agency, and Fred Gibson, the Acting Inspector General for the Federal Deposit Insurance Corp., today announced that a federal grand jury in New Haven has returned an indictment charging former Cantor Fitzgerald & Co. bond trader, DAVID DEMOS, 35, of Westport, with six counts of securities fraud.
The indictment was returned on December 7. DEMOS is scheduled to be arraigned today at 3:30 p.m. before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven.
According to the indictment, Residential Mortgage-Backed Securities (RMBS) are collections of mortgages and home equity loans, which are grouped together and sold as packages between and among banks, money managers, pension funds and others. Investors in RMBS receive payments on a monthly basis. Those payments are based on the extent to which homeowners, who had originally taken out the mortgages or loans, repaid their lenders. The payments to RMBS investors continue until the homeowners repay their mortgage debt, refinance or default. Unlike stocks that trade on the New York Stock Exchange or the NASDAQ, RMBS are not publicly traded on an exchange and pricing information is not publicly available. Instead, buyers and sellers of RMBS use broker-dealers, like Cantor Fitzgerald, to execute individually negotiated transactions.
DEMOS was a trader and managing director at Cantor Fitzgerald from November 2011 until his employment was terminated in February 2013. The indictment alleges that DEMOS defrauded customers by fraudulently inflating the purchase price at which Cantor Fitzgerald could buy a RMBS bond to induce their victim-customers to pay a higher price for the bond, and by fraudulently deflating the price at which Cantor Fitzgerald could sell a RMBS bond to induce their victim-customers to sell bonds at cheaper prices.
It is alleged that, as a result of this scheme, Cantor Fitzgerald and DEMOS profited illegally, and victim-customers sustained millions of dollars of losses.
The victims of this alleged scheme include asset managers and firms affiliated with or subsidiaries of recipients of funds from the U.S. Government’s Troubled Asset Relief Program (TARP).
If convicted of the charges in the indictment, DEMOS faces a maximum term of imprisonment of 20 years on each count.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case has been assigned to U.S. District Judge Alvin W. Thompson in Hartford.
This matter is being investigated by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Federal Deposit Insurance Corp—Office of Inspector General, the Federal Bureau of Investigation, and the Office of Inspector General—Federal Housing Finance Agency. The case is being prosecuted by Assistant U.S. Attorneys Heather Cherry and Jonathan Francis.
Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s Residential Mortgage-Backed Securities (RMBS) Working Group, a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis and in the federal government’s bailout. The RMBS Working Group brings together attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and state Attorneys General offices around the country.
For more information about the RMBS Working Group and the Financial Fraud Enforcement Task Force, which is chaired by Attorney General Loretta Lynch, visit www.stopfraud.gov.
Honduran National Indicted for Illegal Re-Entry and Gun PossessionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that REYNALDO BRAN FONSECA, age 35, was charged today in a three-count Indictment for illegal reentry of a removed alien and possession of firearms by an illegal alien in violation of Title 8, United States Code, Section 1326(a) and Title 18, United States Code 922(g)(5)(A), respectively.
According to the Indictment, FONSECA reentered the United States after he was previously deported on November 5, 2010. The Indictment also alleges that FONSECA illegally possessed a Colt .357 revolver on February 22, 2016, and a Glock semi-automatic pistol on April 7, 2016.
If convicted of illegal reentry, FONSECA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. If convicted of weapons possession, FONSECA faces a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Hazleton Man Guilty of Selling Heroin Near SchoolRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Israel Calcano-Garcia, age 44, of Hazleton, Pennsylvania, who is a citizen of the Dominican Republic, pleaded guilty today to distributing heroin within 1,000 feet of a school, before U.S. District Court Judge Robert D. Mariani in Scranton.
According to United States Attorney Bruce D. Brandler, the defendant, Calcano-Garcia, admitted to selling heroin in January 2015 near the Immanuel Christian School in Hazleton. Calcano-Garcia admitted to distributing between 80 and 100 grams of heroin, which is approximately equivalent to between 2,700 and 4,000 retail bags of heroin.
Judge Mariani ordered a pre-sentence investigation to be completed. Sentencing will be scheduled at a later date.
Calcano-Garcia was indicted by a federal grand jury in Scranton in September 2015, as a result of an investigation by the Drug Enforcement Administration and the Hazleton Police Department. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum one-year prison sentence for distributing heroin within one thousand feet of a school. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hanover Businessman Guilty of $150,000 Bank Fraud and Money Laundering ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Matthew S. Norris, age 34, of Hanover, Pennsylvania, pled guilty on December 8, 2016, before United States District Court Judge Sylvia H. Rambo in Harrisburg, to bank fraud and money laundering charges.
According to United States Attorney Bruce D. Brandler, Norris is the owner and operator of Norris Enterprises, d/b/a Aerus Electrolux, Hanover. Norris admitted to executing a scheme in 2011 that defrauded GE Bank out of $157,785. Norris, as the owner/operator of Aerus Electrolux, was an authorized independent franchisee of Electrolux International, which was then located on York Street, in Hanover. Norris submitted approximately 27 credit applications under the names and identifiers of his customers to GE Bank without the customers’ knowledge or consent. By inflating the customers’ income on electronic credit applications, Norris succeeded in obtaining lines of credit for the customers to purchase Electrolux products. Norris then charged the approved accounts for fictional merchandise sales and, as a result, GE Bank deposited the loan proceeds into Norris’s business account.
The scheme was discovered in October of 2011 when an Electrolux executive initiated an onsite audit of Norris’ business. When GE Bank learned what Norris had done, it immediately credited all amounts owed by the customers.
Under the terms of the plea agreement with the government, Norris agreed to make restitution to GE Bank in the amount of $157,785. No date has been set for sentencing pending preparation of a presentence report.
The investigation was conducted by the U.S. Postal Inspection Service and the Internal Revenue Service, Criminal Investigations. The case was prosecuted by Assistant United States Attorney Kim Douglas Daniel.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 30 years of imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hampton Man Who Attempted to Kill Police Officer Sentenced to PrisonRead the Press Release
NEWPORT NEWS, Va. – Frederick Forson-Peebles, Jr., 25, of Hampton, was sentenced today to 10 years in prison for possession of a firearm by a convicted felon. This is the maximum sentence of imprisonment allowed under federal law.
Forson-Peebles pleaded guilty on June 2. According to court records, on March 18, 2014, a Hampton Police Officer encountered Forson-Peebles after responding to a call about a large group of people fighting at Liberty Estates Apartment Complex. When the officer tried to talk to Forson-Peebles he ran. Forson-Peebles then stopped, drew a black semi-automatic handgun from his waistband and fired at the officer, causing the officer to fall to the ground. While the officer was on the ground, Forson-Peebles fired at him a second time. The officer then crawled to cover at the corner of an apartment building and returned fire. Soon after multiple officers responded to the location and arrested Forson-Peebles. A loaded Glock 22 handgun was recovered on the scene. Further investigation and interviews of residents of the complex revealed that Forson-Peebles had attempted to gain entry into multiple apartments in his flight from police, banging on doors and trying door handles throughout at least two of the buildings.
Forson-Peebles was previously found not guilty of Attempted Capital Murder of a Law Enforcement Officer in Hampton Circuit Court in November, 2015. The case was then adopted federally.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Special Assistant U.S. Attorney Amy E. Cross prosecuted 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. 4:16-cr-39.