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7 December 2016
Member of DeCavalcante Crime Family Admits Use of Interstate Facility to Commit MurderRead the Press Release
NEWARK, N.J. – A member of the DeCavalcante Family of La Cosa Nostra today admitted using a telephone to plan the murder of an organized crime rival, U.S. Attorney Paul J. Fishman announced.
Charles Stango, 72, of Henderson, Nevada, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of knowingly using an interstate facility – the telephone – with the intent to murder a rival. He also pleaded guilty to violating the terms of his supervised release, which he was serving following his imprisonment on racketeering charges in New York.
According to documents filed in this case and statements made in court:
Stango was arrested on April 14, 2015, as part of a sweep of DeCavalcante crime family members that operated in New Jersey and elsewhere. The DeCavalcante crime family was part of a nationwide criminal organization known variously as the “Mafia” and “La Cosa Nostra,” which operated through entities called “families.” The DeCavalcante family engaged in numerous criminal activities, including conspiracy to commit murder, distribution of controlled substances, prostitution, extortion, and other crimes of violence.
Stango admitted today that he used the telephone to plan the murder of a crime family rival (identified in court papers as “Victim 1”). Based on tape recorded evidence uncovered during the investigation, Stango believed that Victim 1 had falsely held himself out to be a “made man” within the family structure. Stango refused to recognize Victim 1’s alleged new status. Stango also believed that Victim 1 had intentionally insulted a high-ranking family member, which Stango felt deserved the ultimate punishment. He offered up to $50,000 to two assassins to carry out the order. The two assassins were, in fact, undercover FBI agents. Law enforcement officials closed down the investigation to ensure Victim 1’s safety, and he was never harmed.
Six of Stango’s co-defendants, including his son, Anthony Stango, have pleaded guilty to various crimes – including distribution of significant amounts of cocaine and attempting to set up a prostitution business – to enrich the crew members and the crime family.
The count to which Stango pleaded guilty carries a maximum potential penalty of 10 years in prison and a fine of $250,000 Sentencing is scheduled for March 28, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter Arsenault; the Bayonne Police Department, under the direction of Chief Drew Niekrasz; and the N.J. State Commission of Investigation, under the direction of Acting Director Lee C. Seglem, with the investigation leading to today’s guilty plea. He also thanked the FBI’s Las Vegas office and the Union County Prosecutor’s Office for their roles in the investigation.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office Organized Crime/Gangs Unit and Assistant U.S. Attorney James Donnelly of the Criminal Division in Newark.
Defense counsel: Chester Keller Esq., Assistant Federal Public Defender, Newark
Mayor of Gurabo, Puerto Rico, Arrested for Public CorruptionRead the Press Release
Today, Victor M. Ortiz-Díaz a.k.a. “Manolito,” mayor of the municipality of Gurabo, Puerto Rico, was arrested by Federal Bureau of Investigation (FBI) agents on charges of extortion and soliciting a bribe, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico.
According to the indictment, on or about October 2012, the Municipality of Gurabo owed Company A payments for eight outstanding invoices for work performed in the municipality. Person A, co-owner of Company A, met with mayor Ortiz-Díaz to discuss the outstanding debt. The mayor solicited $125,000 from Person A to invest in a telecommunication antennas project. Because Company A did not have the money to pay the $125,000, the mayor told Person A that he would have the municipality make a payment to the company. With this money, Company A could be able to cover the “loan” to Ortiz-Díaz, as well as pay other debts it owed its suppliers.
On Oct. 19, 2012, Person A issued three post-dated Company A checks payable to three different individuals, who were employees of Miguel Merced. Merced was the individual orchestrating the telecommunications investment scheme in which Ortiz-Diaz invested the three checks totaling $125,000. On that same date, the Municipality of Gurabo issued two checks totaling $196,643.26 payable to Company A for contracting work performed.
Unbeknownst to him, Ortiz-Díaz used the money he extorted from Person A in what turned out to be a Ponzi scheme run by Merced, who is now serving a six-year prison sentence.
“Defendant Ortiz-Díaz extorted Person A, to invest in a Ponzi scheme, which resulted in losses to many victims,” said U.S. Attorney Rodríguez-Vélez. “Although he presented himself as a victim in federal court, it was the citizens of Gurabo who were the victims of his corrupt acts, as it was their money he squandered.”
“It is always a sad day when someone who enjoys the trust of the people abuses that trust,” said FBI Special Agent in Charge Douglas Leff. “It should be clear by now that those officials who have served the public dishonestly will eventually have justice delivered to their doorstep. The FBI will continue to work with its partners at the U.S. Attorney’s Office to ensure that the citizens of Puerto Rico receive the fair and honest government to which they are entitled.”
This case was investigated by the FBI and U.S. Department of Housing and Urban Development’s Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Olga B. Castellón-Miranda.
If found guilty, the defendant could face up to 20 years in prison and $250,000 in fines. An indictment contains only charges and is not evidence of guilt. Defendant is presumed to be innocent unless and until proven guilty.
Mayor of Gurabo, Puerto Rico, Arrested for Public CorruptionRead the Press Release
Today, Victor M. Ortiz-Díaz a.k.a. “Manolito,” mayor of the municipality of Gurabo, Puerto Rico, was arrested by Federal Bureau of Investigation (FBI) agents on charges of extortion and soliciting a bribe, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico.
According to the indictment, on or about October 2012, the Municipality of Gurabo owed Company A payments for eight outstanding invoices for work performed in the municipality. Person A, co-owner of Company A, met with mayor Ortiz-Díaz to discuss the outstanding debt. The mayor solicited $125,000 from Person A to invest in a telecommunication antennas project. Because Company A did not have the money to pay the $125,000, the mayor told Person A that he would have the municipality make a payment to the company. With this money, Company A could be able to cover the “loan” to Ortiz-Díaz, as well as pay other debts it owed its suppliers.
On Oct. 19, 2012, Person A issued three post-dated Company A checks payable to three different individuals, who were employees of Miguel Merced. Merced was the individual orchestrating the telecommunications investment scheme in which Ortiz-Diaz invested the three checks totaling $125,000. On that same date, the Municipality of Gurabo issued two checks totaling $196,643.26 payable to Company A for contracting work performed.
Unbeknownst to him, Ortiz-Díaz used the money he extorted from Person A in what turned out to be a Ponzi scheme run by Merced, who is now serving a six-year prison sentence.
“Defendant Ortiz-Díaz extorted Person A, to invest in a Ponzi scheme, which resulted in losses to many victims,” said U.S. Attorney Rodríguez-Vélez. “Although he presented himself as a victim in federal court, it was the citizens of Gurabo who were the victims of his corrupt acts, as it was their money he squandered.”
“It is always a sad day when someone who enjoys the trust of the people abuses that trust,” said FBI Special Agent in Charge Douglas Leff. “It should be clear by now that those officials who have served the public dishonestly will eventually have justice delivered to their doorstep. The FBI will continue to work with its partners at the U.S. Attorney’s Office to ensure that the citizens of Puerto Rico receive the fair and honest government to which they are entitled.”
This case was investigated by the FBI and U.S. Department of Housing and Urban Development’s Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Olga B. Castellón-Miranda.
If found guilty, the defendant could face up to 20 years in prison and $250,000 in fines. An indictment contains only charges and is not evidence of guilt. Defendant is presumed to be innocent unless and until proven guilty.
Manhattan U.S. Attorney Announces Charges Against Two Individuals in Connection with Bribery and Kickback Scheme to Secure Business from A Nonprofit Health OrganizationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced the unsealing of charges today against NIMESH PATEL, a former information technology employee at a large national nonprofit organization (the “Society”) and DILIP VADLAMUDI, the owner of an information technology outsourcing company located in Indiana, for engaging in a bribery and kickback scheme. PATEL was arrested this morning in New Jersey, and was presented today before United States Magistrate Judge Katharine H. Parker. VADLAMUDI was arrested this morning in Indiana, and was expected to be presented
US v. Patel and Vadlamudi indictment.pdf today before a Magistrate Judge in Indianapolis.U.S. Attorney Preet Bharara said: “As alleged, the defendants conspired to defraud a national nonprofit organization. Patel allegedly abused his position at the nonprofit to funnel millions in fees to Vadlamudi’s company in exchange for hundreds of thousands in kickbacks. Thanks to the investigative work of the U.S. Postal Inspection Service, the defendants’ alleged fraud scheme has been put to an end.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “These individuals took advantage of their business relationship by devising a scheme to ‘fatten their wallets,’ while having no regard for the victimized nonprofit organization. Postal Inspectors will always be on the forefront of bringing criminals to justice for their greedy misdeeds against the American public.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
The Society is a large nonprofit health care organization with national headquarters in Westchester, New York. PATEL was employed as a senior director in the information technology group at the Society. During the time PATEL worked at the Society, he signed acknowledgements of its conflict-of-interest policy, which prohibited employees from soliciting or accepting payments from any individual or organization that had business with the Society. VADLAMUDI owned a company headquartered in Indiana (“VADLAMUDI Company-1”) that, among other things, acted as a temporary staffing company for information technology (“IT”) professionals. VADLAMUDI Company-1 had a contract with the Society pursuant to which Society employees, including PATEL, were authorized to hire temporary employees on behalf of the Society from VADLAMUDI Company-1.
From in or about October 2012 through in or about September 2014, PATEL hired numerous temporary IT employees from VADLAMUDI Company-1, which caused the Society to pay VADLAMUDI Company-1 millions of dollars in fees. During that same time period, VADLAMUDI paid PATEL approximately $274,000 in kickbacks. PATEL and VADLAMUDI exchanged emails regarding this kickback scheme. For instance, on a regular basis PATEL and VADLAMUDI exchanged spreadsheets listing the names of VADLAMUDI Company-1 temporary IT employees hired by the Society, along with a kickback amount calculated per employee.
In order to make payments to PATEL, VADLAMUDI used a bank account associated with a different company he controlled to transfer approximately $274,000 to the bank account for a shell corporation set up by PATEL. PATEL used that money for his personal expenses, including $80,000 toward a down payment on his residence and over $100,000 transferred into his personal bank account.
When the Society conducted an investigation into allegations of bribery and kickbacks in the IT department in the fall of 2014, PATEL falsely denied receiving money from VADLAMUDI.
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PATEL, 45, of Woodcliff Lake, New Jersey, and VADLAMUDI, 45, of Carmel, Indiana, are both charged in three counts: one count of conspiracy to commit honest services wire fraud; one count of conspiring to violate the Travel Act; and one count of conspiring to commit money laundering. Counts One and Three each carry a maximum sentence of 20 years in prison. Count Two carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the work of the USPIS.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Richard Cooper is in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manhattan U.S. Attorney Announces Arrests of Operators of Retail Heroin StoreRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Angel Melendez, Special Agent in Immigration and Customs Enforcement’s Homeland Security Investigations in New York (“HSI”), George P. Beach II, Superintendent of the New York State Police, and Daniel C. Cameron, the Chief of the City of Newburgh Police Department announced the arrest of VICTOR M. RIVAS, EDWARD CARDONA, JULIO A. DAVILA, and RONALD L. MATIAS a/k/a “Ronald Louis” stemming from a narcotics conspiracy to establish a retail heroin-selling organization. VICTOR M. RIVAS was arrested at his home in Newburgh, New York, and MATIAS was arrested at a motel in Newburgh. CARDONA and DAVILA were arrested at the retail shop at 427 Broadway in Newburgh. They will be presented today before U.S. Magistrate Judge Lisa Margaret Smith in White Plains federal court.
Law enforcement officers also executed search warrants on several locations where they believed the organizers were storing narcotics. They seized a brick containing a substance that appeared to be heroin from behind the shop, and approximately $250,000 in cash from a storage unit used by the defendants. Law enforcement also recovered a quantity of a substance that appeared to be heroin from DAVILA that was on his person when he was arrested.
VICTOR R. RIVAS, was also charged. He is currently incarcerated on state charges and will be transported to federal custody to face the federal narcotics conspiracy charges.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants blatantly sold heroin from a storefront on a main street in Newburgh, New York. By flouting the law and selling heroin like newspapers or lottery tickets, the Complaint alleges, they also helped fuel the tragic epidemic of opioid abuse that is devastating so many of our communities.”
HSI Special Agent-in-Charge Angel Melendez said: “This organization allegedly operated daily selling drugs out of their store while posing as a legitimate business. Using fake storefronts has been a way for criminals to hide in our neighborhoods while poisoning our communities. Whether it’s a sham barber shop or a bogus sports store, there is no place to hide. HSI and its law enforcement partners continue to work tirelessly, day and night, to find these drug pushers and take them off our streets.”
New York State Police Superintendent George P. Beach II said: “Once again, a strong law enforcement partnership has brought down an illegal narcotic operation. State Police members each day see the harmful effects of heroin on individuals, families and our neighborhoods. A drug like heroin destroys communities and puts lives at risk. I applaud our members and our partners for their strong police work. We will continue to work together to make our communities safer from crime.”
City of Newburgh Police Chief Daniel C. Cameron stated: “The City of Newburgh Police Department is proud to have played an integral role in the arrest of these defendants - alleged drug deals blatantly operating a storefront to sell heroin on the streets of our city. This arrest would not have been possible without the combined efforts of local, state, and federal law enforcement, working cooperatively and without agendas. Today, the residents of Newburgh are all a bit safer, as several alleged heroin dealers are behind bars.”
According to the Complaint[1] unsealed today in federal court:
Since January 2016, law enforcement agents have been involved in an investigation of a narcotics trafficking organization (the “Organization”) run by VICTOR M. RIVAS, with the assistance of CARDONA, DAVILA, VICTOR R. RIVAS, and MATIAS that operates in and around Newburgh, New York, and specifically at a storefront location at 427 Broadway in Newburgh that alternately operates as a soccer shop and a barbershop (the “Soccer Shop”).
During this investigation, undercover New York State Police officers (the “UCs”) and confidential sources (the “CSs”) conducted dozens of controlled buys of heroin at the Soccer Shop from several of the defendants. In aggregate, from January 2016 to November 2016, the UCs and CSs purchased approximately 515 glassine envelopes of a substance sold as, and later determined to be heroin, at the Soccer Shop. Ten glassine envelopes typically contain approximately 0.25 grams of heroin.
Law enforcement officials believe that the Organization distributed well over 1 kilogram of heroin from January 2016 through November 2016. That belief is based, in part, on: (i) the fact that, on the numerous occasions when the UCs and CSs sought to purchase heroin from the defendants, the heroin was readily available; (ii) the UCs and CSs frequently observed other customers of the Organization inside the Soccer Shop purchasing heroin; (iii) surveillance footage from a camera facing the Soccer Shop indicated that the Organization operated daily from approximately 5:30 a.m. to 6:30 p.m., and that a steady stream of customers tended to enter the shop while it was open and remain inside for only a few minutes each; and (iv) the observations of the UCs and CSs, as well as recorded audio and video surveillance, which indicate that the Soccer Shop is not engaged in any legitimate business as a barbershop, sports shop, or otherwise. During the course of this investigation, the only business observed to be conducted inside the Soccer Shop was the illegal sale of narcotics.
* * *
VICTOR M. RIVAS, 51, of Newburgh, CARDONA, 33, of Newburgh, DAVILA, 26, of Newburgh, VICTOR R. RIVAS, 28, of Newburgh, and MATIAS, 35, are each charged with one count of conspiring to violate the narcotics laws of the United States, by conspiring to distribute and possess with intent to distribute 1 kilogram and more of a mixture or substance containing a detectable amount of heroin. The charge carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara thanked the Drug Enforcement Administration and the City of Newburgh Police Department for their assistance with this investigation. He added that the investigation is continuing.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Jacqueline C. Kelly and Allison Nichols are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[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.
Manhattan Deputy U.S. Attorney Announces Return to Italy of Roman Statue Stolen in 1983Read the Press Release
Joon Kim, Deputy United States Attorney for the Southern District of New York, and Michael McGarrity, Special Agent in Charge of the Criminal Division of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that a Roman marble peplophoros statue (the “Torlonia Peplophoros”), stolen from the Villa Torlonia in Rome in 1983, was returned to Italy today at a repatriation ceremony at the New York Historical Society in Manhattan. The Torlonia Peplophoros was sold in Manhattan in 2001 after being unlawfully brought into the United States in the late 1990s, and was forfeited to the United States as a result of civil forfeiture action brought by the U.S. Attorney’s Office.
Deputy U.S. Attorney Joon Kim said: “On a November night in 1983, the Torlonia Peplophoros, a marble statute listed on Italy’s national archive, was stolen from its home in a Roman villa. When it emerged in New York City more than 30 years later, having been unlawfully smuggled into the United States, our Office, working with the FBI, forfeited the statue as stolen property. Today, we have the pleasure returning the Torlonia Peplophoros home where it belongs, with the Italian people.”
FBI Special Agent in Charge Michael McGarrity said, “Today’s ceremony is just one example of the FBI’s commitment to restore significant arts and antiquities to their rightful owners, and we remind everyone of the significant role they serve in preserving the history of the world.”
According to court filings and other publically available information:
In 1797, Giovanni Torlonia, a famous Vatican banker in Rome, purchased what is now called the Villa Torlonia (the “Villa”) after inheriting the title of Marchese. The Torlonia family owned the Villa until 1977, though it was used by Benito Mussolini as his personal residence from 1925 to 1943, and then occupied by the Allied High Command from 1944 to 1947. After 1947, the Villa was abandoned and deteriorated until the Municipality of Rome purchased it from the Torlonia family in 1977.
Since 1978, the Villa has been opened to the public and restored by the Municipality of Rome. It contained various works of art and other significant cultural property, including the Torlonia Peplophoros, a statue depicting a woman wearing a body-length garment, known as a peplos (or peplum), that was common in ancient Greece.
During the night of November 11, 1983, and the following morning, an unknown number of thieves stole 15 statues and other items from the Villa. The Torlonia Peplophoros was among the stolen statues.
In the late 1990s, the Torlonia Peplophoros was imported into the United States by the owner of a New York City art gallery (the “Gallery”). In 2001, the Gallery sold the Torlonia Peplophoros to an individual residing in New York City (the “Buyer”) for approximately $75,000.
The Buyer became aware that the Torlonia Peplophoros was stolen when the Buyer attempted to offer it for sale through a New York City auction house, and voluntarily turned it over to the FBI in late 2015.
On February 25, 2016, the U.S. Attorney’s Office for the Southern District of New York filed a civil forfeiture Complaint alleging that the Torlonia Peplophoros had been imported into the United States illegally. On June 29, 2016, United States District Court Judge Katherine P. Failla entered a default judgment forfeiting the Torlonia Peplophoros to the United States.
* * *
Mr. Kim thanked the FBI’s Art Crime Team for its outstanding work on this matter.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Alexander Wilson is in charge of the case.
Man Arrested in Springfield, Oregon Sentenced to 57 Months for Firearm PossessionRead the Press Release
EUGENE, Ore. – On December 6, 2016, Troy Joseph Minson, Jr., 28, from Madras, Oregon was sentenced by U.S. District Judge Ann Aiken to 57 months in federal prison for unlawful possession of a firearm. Minson, a convicted felon with outstanding arrest warrants, will be on supervised release for three years following his prison sentence.
On August 3, 2014, the Springfield Police Department received a call that the defendant was at a local deli with a gun. Officers responded and attempted to take Minson into custody when he pulled away from them, jumped over a counter and dropped a loaded .22 caliber Beretta pistol onto the ground. A struggle ensued when Minson resisted arrest, but he was eventually apprehended and taken into custody. Minson has prior felony convictions for burglary in the first degree, delivery of methamphetamine and eluding police.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Springfield Police Department, and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon, along with the assistance of Jefferson County District Attorney Steven Leriche.
Louisiana Criminal Defense Attorney Pleads Guilty to Tax EvasionRead the Press Release
WASHINGTON – A Louisiana criminal defense attorney pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
Michael Thiel, 66, a resident of Baton Rouge, Louisiana, pleaded guilty to one count of evading the payment of federal income and employment taxes for 2003 through 2013. According to documents filed with the court, Thiel operated a criminal defense law practice in Hammond, Louisiana. Despite earning substantial income through his law practice, Thiel did not timely file income tax or employment tax returns, and did not timely pay tax due and owing to the United States. Thiel agreed that as of April 30, he owed federal income tax, penalties and interest totaling $736,527, and employment tax, penalties and interest totaling $261,725.
In January 2007, in an effort to conceal the ownership of his property and evade the payment of his tax liabilities, Thiel used nominees and the trusts he beneficially owned to purchase his principal residence for $435,000. The nominees obtained a mortgage on the principal residence, and used a nominee bank account beneficially funded by Thiel to make the payments. Thiel entered into a lease agreement with the nominees to falsely characterize the monthly mortgage payments as rent. In addition, between January 2007 and January 2014, Thiel deposited $416,283.56 into the nominee bank account with funds from the trusts and other accounts not held in his name.
“Michael Thiel, an attorney, ignored his federal tax obligations and willfully evaded payment of nearly a million dollars in income and employment tax through the use of nominee trusts and accounts,” said Principal Deputy Assistant Attorney General Ciraolo. “With today’s guilty plea, Thiel is held to account for his criminal conduct, and the Department, working with its colleagues within the IRS, sends a clear message that no one is above the law.”
“Today’s guilty plea represents a win for the U.S. taxpayers,” said Special Agent in Charge Jerome R. McDuffie of IRS – Criminal Investigation, New Orleans Field Office. “As a member of the legal profession, Michael Thiel knew his requirement to pay both his personal income and employment taxes, but chose to use alter-ego nominee trusts and bank accounts to violate the laws. IRS – Criminal Investigation will continue to work diligently to ensure that individuals such as Mr. Thiel are held accountable for their wrongdoings, as well as pay their fair share in compliance with our nation’s tax laws.”
Sentencing is scheduled for March 22, 2017. Pursuant to the plea agreement, Thiel faces a maximum sentence of 37 months in prison, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-CI, who conducted the investigation, and Assistant Chief Todd A. Ellinwood and Trial Attorney Michael Hatzimichalis, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Louisiana Criminal Defense Attorney Pleads Guilty to Tax EvasionRead the Press Release
A Louisiana criminal defense attorney pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
Michael Thiel, 66, a resident of Baton Rouge, Louisiana, pleaded guilty to one count of evading the payment of federal income and employment taxes for 2003 through 2013. According to documents filed with the court, Thiel operated a criminal defense law practice in Hammond, Louisiana. Despite earning substantial income through his law practice, Thiel did not timely file income tax or employment tax returns, and did not timely pay tax due and owing to the United States. Thiel agreed that as of April 30, he owed federal income tax, penalties and interest totaling $736,527, and employment tax, penalties and interest totaling $261,725.
In January 2007, in an effort to conceal the ownership of his property and evade the payment of his tax liabilities, Thiel used nominees and the trusts he beneficially owned to purchase his principal residence for $435,000. The nominees obtained a mortgage on the principal residence, and used a nominee bank account beneficially funded by Thiel to make the payments. Thiel entered into a lease agreement with the nominees to falsely characterize the monthly mortgage payments as rent. In addition, between January 2007 and January 2014, Thiel deposited $416,283.56 into the nominee bank account with funds from the trusts and other accounts not held in his name.
“Michael Thiel, an attorney, ignored his federal tax obligations and willfully evaded payment of nearly a million dollars in income and employment tax through the use of nominee trusts and accounts,” said Principal Deputy Assistant Attorney General Ciraolo. “With today’s guilty plea, Thiel is held to account for his criminal conduct, and the Department, working with its colleagues within the IRS, sends a clear message that no one is above the law.”
“Today’s guilty plea represents a win for the U.S. taxpayers,” said Special Agent in Charge Jerome R. McDuffie of IRS – Criminal Investigation, New Orleans Field Office. “As a member of the legal profession, Michael Thiel knew his requirement to pay both his personal income and employment taxes, but chose to use alter-ego nominee trusts and bank accounts to violate the laws. IRS – Criminal Investigation will continue to work diligently to ensure that individuals such as Mr. Thiel are held accountable for their wrongdoings, as well as pay their fair share in compliance with our nation’s tax laws.”
Sentencing is scheduled for March 22, 2017. Pursuant to the plea agreement, Thiel faces a maximum sentence of 37 months in prison, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-CI, who conducted the investigation, and Assistant Chief Todd A. Ellinwood and Trial Attorney Michael Hatzimichalis, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Los Angeles Man Who Ran Burger Restaurant Sentenced to 15 years in Federal Prison for Distributing Crack CocaineRead the Press Release
LOS ANGELES – A South Los Angeles man was sentenced this morning to 15 years in federal prison for distributing crack cocaine on two occasions, including one transaction that took place at his hamburger stand.
Brian Sawyers, 57, was sentenced by United States District Judge Ronald S.W. Lew for his conviction on two counts of distribution of cocaine base in the form of crack cocaine for selling the drug to a confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The sentence was based in part on Sawyers’ three prior felony drug convictions, two of which were federal convictions, which meant he faced a mandatory minimum sentence of 10 years in prison.
“Crack cocaine remains a highly addictive drug that poses a danger to its users, and the trafficking of crack poses dangers to the community at large,” said United States Attorney Eileen M. Decker. “Removing this defendant from the street for the next 15 years increases the safety of the law-abiding residents of South Los Angeles.”
“The defendant’s criminal history documents several violations of drug trafficking laws,” said ATF Special Agent in Charge Eric D. Harden. “The lengthy sentence handed down ensures Mr. Sawyer does not remain on the streets to sell drugs at the peril of his own community.”
According to court documents, Sawyers sold over an ounce of crack cocaine and, later, approximately 2½ ounces of crack cocaine to an ATF confidential informant. The first transaction took place on February 8, 2012 in the parking lot of B.D. Burgers, the restaurant that Sawyers owned in South Los Angeles. On March 1, 2012, there was a second operation in which the informant met Sawyers at the burger stand, and they went to Sawyers’ home, where they completed the transaction.
The investigation into Sawyers was conducted by the ATF’s Los Angeles Field Division, the Los Angeles Police Department, and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys Anil J. Antony and Ann C. Kim.
Local Man Pleads Guilty to Stolen Identity Tax Refund and Money Laundering SchemeRead the Press Release
St. Louis, MO – Precious Agobe, St. Louis County, MO, pled guilty to charges involving his participation in a stolen identity tax fraud and money laundering scheme.
According to court documents, on three occasions in February 2015, Agobe made withdrawals from a Bank of America account which contained the proceeds of fraudulently obtained federal income tax refunds. The total amount of these withdrawals was $8,800. As part of the plea agreement in this case, the parties agreed that the loss from these fraudulently obtained income tax returns was between $250,000 and $550,000.
In December 2015, Agobe withdrew $3,000 from a Bank of America account which contained the proceeds of a scheme to defraud in which a business in Kelso, Washington, was induced by fraud to transfer $47,700 from its bank account to a bank account at Bank of the West, in Mission, Kansas. A portion of this money was subsequently transferred to the Bank of America account from which Agobe withdrew $3,000.
In February 2016, 21 counterfeit checks in amounts totaling $99,055 which purported to be drawn on an account of a business in Mustang, Oklahoma, at All America Bank, in Oklahoma City, Oklahoma, were deposited into an account at Bank of America. Agobe subsequently withdrew $1,990 from this Bank of America account. As part of the plea agreement in this case, the parties agreed that the loss from Agobe’s money laundering activity was $68,968.
Agobe pled guilty to three counts of theft of government property and two counts of money laundering before United States District Judge Ronnie L. White. Sentencing has been set for March 26, 2017.
Theft of government funds carries a maximum penalty of ten years in prison and/or fines up to $250,000. Each count of money laundering carries a maximum of 20 years and/or fines up to $500,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Internal Revenue Service-Criminal Investigation and the Kelso, Washington Police Department. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney’s Office.
Lapwai Man Sentenced for Sexual Abuse of a MinorRead the Press Release
COEUR D’ALENE – Wendall Keith Antell, 48, of Lapwai, Idaho, was sentenced today in United States District Court to 121 months in prison followed by five years supervised release for aggravated sexual abuse of a minor, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Antell to pay $50,000 in restitution. Antell pleaded guilty to the charge on May 16, 2016.
According to the plea agreement, Antell, an Indian, admitted that he began sexually abusing the victim in 1991 or 1992, when she was five or six. Antell’s sexual abuse of the victim progressed to penetrating the victim’s genital opening with his finger. This type of sexual abuse of the victim began when the victim was nine and continued until she was 17. Antell admitted that he sexually abused the victim with the intent to abuse, humiliate, harass, degrade, arouse, or gratify his sexual desire. This sexual abuse occurred within the exterior boundaries of the Nez Perce Indian Reservation.
The case was investigated by Federal Bureau of Investigation and the Nez Perce Tribal Police.
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.”
Knoxville Man Pleads Guilty to Sex Trafficking Conspiracy and Drug OffensesRead the Press Release
Marcus D. Washington of Knoxville, Tennessee, pleaded guilty today to one count of conspiracy to commit sex trafficking by force, fraud or coercion; conspiracy to possess with intent to distribute a Schedule II controlled substance; and possession with intent to distribute a Schedule II controlled substance.
According to documents submitted in connection with the plea, on Sept. 25, 2013, Washington arranged for a woman identified as K.C. to meet with a client at a hotel to perform commercial sex acts. Washington did not know that this client was actually an undercover law enforcement officer. Shortly thereafter, Washington was arrested outside of the hotel and found to be in possession of Oxycodone.
A subsequent investigation revealed that Washington and another person had recruited K.C. to engage in prostitution. Washington knew that K.C. was addicted to Oxycodone and that she feared withdrawal sickness. He withheld Oxycodone from K.C. until she engaged in commercial sex acts, and when K.C. objected to continuing to perform acts of prostitution, Washington used physical force and threats to compel her to continue.
“This defendant threatened, abused and forced a vulnerable woman to engage in prostitution,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Human trafficking violates the law and threatens the most basic standards of human dignity and decency. No conviction can undo the harm he inflicted, but we hope this guilty plea provides a measure of relief and justice to the victim in this case.”
Washington faces a maximum sentence of life in prison, as well as up to a $250,000 fine. Sentencing has been set for March 27, 2017. As part of his plea agreement, Washington will pay restitution to two women identified as victims of his human trafficking offense.This case was investigated by the FBI, and is being prosecuted by Trial Attorneys William Nolan, Rose E. Gibson and Nicholas Durham of the Civil Rights Division’s Criminal Section, with the assistance and support of the U.S. Attorney’s Office of the Eastern District of Tennessee.
Washington PleaJustice Department Partners with Honduras to Combat Employment DiscriminationRead the Press Release
The Justice Department and the government of Honduras announced a formal partnership today to protect workers from discrimination based on citizenship, immigration status and national origin. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and Honduran Charge D’Affaires Luís F. Cordero signed a memorandum of understanding (MOU) between the embassy and its consulates, and the Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC).
As part of the MOU, OSC and the Honduran government will collaborate to educate workers about their employment rights and provide them with the resources needed to protect those rights. The MOU also seeks to promote training for employers on their obligations under the anti-discrimination provision of the Immigration and Nationality Act (INA), which prohibits employment discrimination based on citizenship, immigration status and national origin. Specifically, the MOU provides that:
• OSC will train Honduran consular staff on the anti-discrimination provision of the INA, participate in events organized by Honduran consulates to educate workers and employers, and distribute educational materials to the embassy and its consulates.
• The embassy will establish a system for referring discrimination claims from the embassy and consulates to OSC.“We must stand in solidarity with workers who face unlawful obstacles and discriminatory barriers when seeking employment,” said Principal Deputy Assistant Attorney General Gupta. “Our country thrives when all people have an equal opportunity to succeed. Yet, all too often, we see employers refusing to hire work-authorized immigrants or requiring them to show unnecessary documentation to work. This partnership will help educate workers about their rights and funnel complaints of discrimination to the Civil Rights Division.”
This agreement is particularly relevant given that Honduran nationals with temporary protected status (TPS) may encounter discrimination by employers based on their immigration status or national origin. TPS is a temporary immigration status granted to eligible nationals of a country designated for TPS under the INA. During the TPS designation period, TPS beneficiaries are authorized to work in the United States.
In the last year, the department has also established formal partnerships with Ecuador, El Salvador and Mexico to empower and educate work-authorized individuals from those nations.
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, this law prohibits citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; discrimination in the employment eligibility verification process; retaliation and intimidation. In addition to its enforcement work, OSC educates the public on its rights and responsibilities under the INA’s anti-discrimination provision.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected] or visit OSC’s website.
MOU HondurasJury Finds Pittsburgh Man Guilty of Producing and Possessing Sexually Explicit Videos of ChildrenRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been convicted by a jury of four men and eight women in Pittsburgh, Pennsylvania, of production, attempted production, and possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
The seven-count Superseding Indictment named George Orbin, 61, as the sole defendant.
According to the Superseding Indictment, on or about December 10, 2011, April 8, 2013, June 10, 2013, and June 11, 2013, Orbin employed, used, persuaded, induced, enticed, and coerced minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the sexual exploitation of the minors. The Superseding Indictment further alleges that on or about August 11, 2012, and June 3, 2013, Orbin attempted to employ, use, persuade, induce, entice, and coerce minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the sexual exploitation of the minors. Also, on or about September 10, 2013, Orbin knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 190 years in prison, a fine of $1,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar and Heidi Grogan prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County District Attorney’s Office conducted the investigation leading to the conviction in this 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.justice.gov/psc.
Iowa Dental Clinic and Its Owners Agree to Pay More Than $300,000 to Resolve Allegations the Clinic Submitted Claims for Unnecessary Procedures or Procedures that Did Not HappenRead the Press Release
Lifepoint Dental Group, LLC, and its owners, Aaron Blass, Angelina Blass, D.D.S., Mindy Richtsmeier, D.D.S., and Brad Richtsmeier, D.D.S., have agreed to pay more than $300,000 to settle allegations that they violated the False Claims Act by submitting claims for dental procedures, including scalings and root planings, that were either medically unnecessary or did not happen. The government’s allegations concern claims submitted by Lifepoint’s Cedar Rapids location between April 1, 2015, and October 1, 2015.
Allegations of wrongdoing were made against the clinic in a qui tam, or whistleblower, lawsuit filed by two former Lifepoint employees. That lawsuit was brought under the False Claims Act, which punishes violators who submit false claims to the government or who knowingly attempt to avoid an obligation to repay federal funds. The whistleblower provisions allow private parties who have knowledge of fraud committed against the government to file suit on behalf of the government and share in any recovery. The former employees who filed this lawsuit will receive a share of the total amount recovered.
“This settlement demonstrates our office’s continued commitment to ensuring all providers play by the rules and beneficiaries receive the quality of care to which they are entitled,” said United States Attorney Kevin W. Techau. “We are also proud of our cooperation in this matter with federal and state agencies, the citizens who spoke up and filed a qui tam lawsuit alleging wrongdoing, and the clinic and its owners, who cooperated throughout the investigation. We encourage anyone aware of fraud against the government to speak up and work with us to make the system work for providers, taxpayers, and beneficiaries.”
The investigation was led by the State of Iowa Medicaid Fraud Control Unit and conducted jointly with the Health and Human Services Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 1:16-cv-00049-EJM.
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Indictment: Couple Operated Moonshine Still in NewtonRead the Press Release
WICHITA, KAN. – A Newton couple were indicted in federal court here Tuesday on charges of operating a moonshine still in the basement of their home, U.S. Attorney Tom Beall said.
Ryan Penner, 41, and Jennifer Penner, 37, both of Newton, were charged with one count of possession of an unregistered still, one count of unlawful production of distilled spirits, and one count of failing to be bonded as a distiller.
The indictment alleges the Penners produced moonshine, which is illegal liquor on which federal and state excise taxes have not been paid.
The indictment alleges the investigation began in August when the Newton Police Department learned the defendants were producing and selling moonshine from their home in the 1000 block of E. 7th in Newton. Undercover officers made several purchases. A quart of moonshine typically sold for $20. Police served a search warrant at the home and seized a still built around a 15.5-gallon beer keg with metal legs and copper tubing.
If convicted, they face up to five years in federal prison and a fine up to $250,000. The Newton Police Department, the Bureau of Alcohol, Tobacco, and Firearms and Explosives and the Kansas Alcoholic Beverage Control investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
OTHER GRAND JURY INDICTMENTS
Lori A. Spaulding, 53, Augusta, Kan., a former payroll manager at Spirit AeroSystems, is charged with one count of wire fraud. The indictment alleges she made false claims to the company for tuition reimbursement and pay for unused time off.
If convicted, she faces up to 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Jason P. Briscoe, 39, Salina, Kan., and Jamie L. Husley, 38, Salina, Kan., are charged with one count of unlawful possession of a firearm in furtherance of drug trafficking (count one), one count of unlawful possession of a firearm following a felony conviction (count two), one count of possession with intent to distribute methamphetamine (count three) and one count of unlawful possession of a firearm with serial number removed (count four). The crimes are alleged to have occurred Nov. 18, 2016, in Smolan, Kan.
Upon conviction the crimes carry the following penalties:
Count one: Up to life in prison and a fine up to $250,000.
Count two: Up to 10 years and a fine up to $250,000.
Count three: Up to 20 years and a fine up to $250,000.
Count four: Up to five years and a fine up to $250,000.
The Bureau of Alcohol, Tobacco, Firearms investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Gary W. Yenzer, 34, Derby, Kan., is charged with one count of theft by a mail employee (count one), one count of possession of stolen gift cards (count two), and one count of aggravated identity theft (count three). The crimes are alleged to have occurred in September 2016 in Sedgwick County, Kan. While the defendant was a rural mail carrier for the U.S. Postal Service.
If convicted, he faces the following penalties
Count one: up to five years in federal prison and a fine up to $250,000.
Count two: Up to 10 years and a fine up to $250,000.
Count three: A mandatory consecutive two years and a fine up to $250,000.
The U.S. Postal Service-Office of Inspector investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal Immigrant Miguel Angel Villasenor-Saucedo Charged with Illegal Re-Entry After Deportation. Villasenor-Saucedo Was Previously Charged in Jefferson County District Court with Leaving the Scene of A Fatal Hit and Run AccidentRead the Press Release
LOUISVILLE, Ky. – Miguel Angel Villasenor-Saucedo, a Mexican national illegally present in the United States, was charged this week by grand jury indictment with Illegal Re-entry After Deportation, announced United States Attorney John E. Kuhn, Jr.
Miguel Angel Villasenor-Saucedo, 40, residing in Louisville, Kentucky, is a citizen of Mexico who on October 22, 2016 was found to be illegally present in the United States after having been deported from the United States on May 13, 2013.
This case arose when Villasenor-Saucedo was found to be involved in a fatal hit and run accident that occurred on October 22, 2016 at Outer Loop and Grade Lane in Louisville, Kentucky. Two women were killed during this accident and Villasenor-Saucedo is alleged to be the driver of the truck that caused the deaths of these two women. Villasenor-Saucedo fled the scene and LMPD Officers later obtained a Criminal Complaint from Jefferson County District Court charging Villasenor-Saucedo with Leaving the Scene of a Fatal Hit and Run Accident. A warrant has been issued for Villasenor-Saucedo’s arrest.
Soon after the fatal accident, it was learned that Villasenor-Saucedo was a Mexican national illegally present in the United States. Upon learning of Villasenor-Saucedo’s illegal immigration status in the United States, the Immigration and Customs Enforcement (ICE) office began investigating Villasenor-Saucedo and found that he had previously been deported from the United States on eight occasions and did not have lawful authority to be present in the United States.
If convicted, Villasenor-Saucedo faces maximum potential penalty of no more than 2 years in prison.
Assistant United States Attorney Daniel P. Kinnicutt is prosecuting the case. The Department of Homeland Security (DHS), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Louisville Metropolitan Police Department (LMPD) conducted the investigation.
Houston Men Charged in Attempted Heist of Armored CarRead the Press Release
HOUSTON – A total of four men have been taken into custody and charged in relation to the attempted robbery of an armored car at an Amegy Bank today in Houston, announced U.S. Attorney Kenneth Magidson.
The Houston Police Department (HPD) conducted a law enforcement operation today that resulted in the arrest of Marc Anthony Hill, 46, Trayvees Duncan-Bush, 29, and Nelson Alexander Polk, 37. A fourth man - John Edward Scott, 40 – fled, but was later apprehended. They are expected to make their initial appearances before U.S. Magistrate Judge Dena Palermo tomorrow at 10:00 a.m.
The federal criminal complaint filed today alleges the men conspired for weeks and planned the robbery of the armored car that was scheduled to service the Amegy Bank located at 400 North Sam Houston Tollway East in Houston. The defendants also allegedly planned an attempted murder of the armored car courier.
With the exception of Scott, all were taken into custody at the location. During the enforcement action, another suspect fired at officers as they attempted his arrest. He was shot and later died as a result of his injuries.
The defendants are charged with conspiracy to commit interference with commerce by robbery and aiding and abetting the use of a firearm during a crime of violence. If convicted, they face up to 20 years in federal prison for the robbery and a mandatory minimum five-year-term of imprisonment for the firearm charge.
The FBI and HPD conducted the investigation with assistance by the Harris County District Attorney’s Office. Assistant U.S. Attorneys Richard Hanes and Heather Winter are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Honduran National Pleads Guilty to Illegal Re-EntryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that OLVIN CASTILLO-CRUZ, age 34, pleaded guilty today to a one count indictment that charged him with illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to court documents, CASTILLO-CRUZ reentered the United States after he was previously deported on January 19, 2011.
CASTILLO-CRUZ 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. U. S. District Judge Martin Feldman set sentencing for February 8, 2017.
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.
Grant Man Sentenced to 77 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today that, DUSTIN KYLE HARVEY, age 27, of Grant, Oklahoma, was sentenced to 77 months imprisonment and 3 years supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e).
The Indictment alleged that on or about April 15, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Choctaw Tribal Police, and the Federal Bureau of Investigation.
The Honorable Judge Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody pending transportation to the designated federal facility at which, the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.
Gardiner Man Sentenced to Seven Years for Trafficking Bath Salts and HeroinRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Luke Greenlaw, 43, of Gardiner, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to seven years in prison and five years of supervised release for distributing bath salts and heroin.
According to Court records, from at least February through July 2015, Greenlaw was part of a conspiracy that distributed bath salts and heroin throughout the state. The heroin was obtained from New Hampshire and Massachusetts and bath salts were obtained through the mail from a source outside the United States.
This case was investigated by the U.S. Drug Enforcement Administration, the Scarborough and Portland Police Departments and the Maine Drug Enforcement Agency.
GNC Enters into Agreement with Department of Justice to Improve its Practices and Keep Potentially Illegal Dietary Supplements Out of the MarketplaceRead the Press Release
The world’s largest dietary supplement retailer, GNC Holdings Inc. (GNC), has entered into a wide-ranging agreement with the Department of Justice to reform its practices related to potentially unlawful dietary ingredients and dietary supplements, and has further promised to embark on a series of voluntary initiatives designed to improve the quality and purity of dietary supplements, the Department of Justice announced today. The non-prosecution agreement resolves GNC’s liability for selling certain dietary supplements produced by a firm currently under indictment. As part of the agreement, GNC has agreed to pay $2.25 million to the U.S. government and cooperate in dietary supplement investigations conducted by the government.
A lengthy investigation conducted by the U.S. Food and Drug Administration (FDA), the U.S. Attorney’s Office for the Northern District of Texas, and the Consumer Protection Branch of the Department of Justice’s Civil Division revealed that GNC’s practices related to ensuring the legality of products on its shelves were lacking.
According to an agreed-upon statement of facts that accompanies the non-prosecution agreement, GNC engaged in acts and omissions that allowed a misbranded supplement— OxyElite Pro Advanced Formula, a product of Dallas-based USPlabs LLC (USP Labs)—to be sold at GNC locations nationwide in 2013. The statement of facts notes that GNC sold the product based on representations from USP Labs that ingredients contained in the product complied with the law. It further notes that GNC did not undertake additional testing or require additional certifications to confirm such representations or to verify that the ingredients in the product were as represented.
USP Labs was indicted in November 2015 and is awaiting trial. The indictment alleges, among other things, that USP Labs engaged in a conspiracy to import ingredients from China using false certificates of analysis and false labeling, and then lied about the source and nature of those ingredients after it put them in its products. According to the indictment, USP Labs told some of its retailers and wholesalers that it used natural plant extracts in some of its products, when in fact it was using synthetic stimulants manufactured in a Chinese chemical factory.
Today’s resolution requires GNC to commit to certain changes designed to prevent unlawful dietary supplements from reaching its shelves:
- First, GNC has agreed that, upon learning that the FDA has issued a public written notice indicating that a purported dietary supplement or an ingredient contained in a purported dietary supplement is not legal and/or not safe, GNC will take immediate action to suspend the sale of such a product or products.
- Second, GNC will establish two lists—a “restricted list” containing ingredients that are not to be used in dietary supplements and a “positive list” containing ingredients that are approved for sale. Although GNC has agreed that the lists it creates will not have the force of law, GNC will use these lists to guide the company in determining what products it will approve for sale. Products containing novel ingredients that do not appear on either list will, GNC agreed, require further internal action and approval before being offered for sale.
- Third, GNC will substantially revise its internal approach to dealing with the vendors whose products GNC sells, including requiring more explicit guarantees from its vendors that their products do not contain ingredients on the “restricted list” and that their products comply with federal law.
- Fourth, GNC will voluntarily work to develop an industry-wide quality seal program. When this quality seal is implemented, GNC has agreed to stop paying its retail salespeople bonus commissions, or “promotional money,” to direct customers to products in its stores not carrying the seal.
- Finally, GNC will update its adverse event reporting policy to ensure that its employees understand the proper procedures to employ if a customer complains of injuries associated with a dietary supplement bought at GNC.
“Unlawful dietary supplements are an important enforcement priority for the department,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s resolution is a significant step forward in reforming an industry rife with alarming practices. Companies like GNC need to do more to ensure that they are not selling products containing questionable and untested ingredients. The American public deserves better, and the Department of Justice appreciates GNC’s efforts in resolving its issues and moving forward in the best interests of American consumers.”
“I am pleased with this agreement and hold steadfast that those engaged in the sale of dietary supplements to the public must adhere to higher standards to ensure consumers are protected from lax business practices that could endanger them,” said U.S. Attorney John R. Parker of the Northern District of Texas.
“Protecting the public from unsafe ingredients in dietary supplements is one of FDA’s most important responsibilities,” said Director George M. Karavetsos of FDA Office of Criminal Investigations. “We will continue to work with industry to ensure that supplements distributed in the U.S. marketplace do not contain harmful ingredients.”
The matter was handled by Consumer Protection Branch Trial Attorneys David Sullivan and Patrick Runkle, and Northern District of Texas Assistant U.S. Attorney Errin Martin. FDA Office of Chief Counsel Attorneys Nathan Sabel and Michael Shane supported the matter, which was investigated by the FDA Office of Criminal Investigations, Dallas Domicile.
Today’s action is part of the government’s efforts, in collaboration with the Uniformed Services University of the Health Sciences’ Consortium for Health and Military Performance (CHAMP), to provide educational resources for service members and the general public to protect them from risky dietary supplements. Through its Operation Supplement Safety (OPSS), and in partnership with the U.S. Anti-Doping Agency (USADA) and Supplement 411, OPSS provides important information to service members and consumers about dietary supplements. In 2015, OPSS launched a High-Risk Supplement List mobile application (accessible on iOS and Android). For more information, consult the OPSS website. To access the educational resources USADA provides for athletes and general consumers to help realize, recognize and reduce the risks associated with using supplement products, visit USADA’s website at http://www.supplement411.org.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
Gnc Enters into Agreement with Department of Justice to Improve Its Practices and Keep Potentially Illegal Dietary Supplements Out of the MarketplaceRead the Press Release
WASHINGTON - The world’s largest dietary supplement retailer, GNC Holdings Inc. (GNC), has entered into a wide-ranging agreement with the Department of Justice to reform its practices related to potentially unlawful dietary ingredients and dietary supplements, and has further promised to embark on a series of voluntary initiatives designed to improve the quality and purity of dietary supplements, the Department of Justice announced today. The non-prosecution agreement resolves GNC’s liability for selling certain dietary supplements produced by a firm currently under indictment. As part of the agreement, GNC has agreed to pay $2.25 million to the U.S. government and cooperate in dietary supplement investigations conducted by the government.
A lengthy investigation conducted by the U.S. Food and Drug Administration (FDA), the U.S. Attorney’s Office for the Northern District of Texas, and the Consumer Protection Branch of the Department of Justice’s Civil Division revealed that GNC’s practices related to ensuring the legality of products on its shelves were lacking.
According to an agreed-upon statement of facts that accompanies the non-prosecution agreement, GNC engaged in acts and omissions that allowed a misbranded supplement— OxyElite Pro Advanced Formula, a product of Dallas-based USPlabs LLC (USP Labs)—to be sold at GNC locations nationwide in 2013. The statement of facts notes that GNC sold the product based on representations from USP Labs that ingredients contained in the product complied with the law. It further notes that GNC did not undertake additional testing or require additional certifications to confirm such representations or to verify that the ingredients in the product were as represented.
USP Labs was indicted in November 2015 and is awaiting trial. The indictment alleges, among other things, that USP Labs engaged in a conspiracy to import ingredients from China using false certificates of analysis and false labeling, and then lied about the source and nature of those ingredients after it put them in its products. According to the indictment, USP Labs told some of its retailers and wholesalers that it used natural plant extracts in some of its products, when in fact it was using synthetic stimulants manufactured in a Chinese chemical factory.
Today’s resolution requires GNC to commit to certain changes designed to prevent unlawful dietary supplements from reaching its shelves:
- First, GNC has agreed that, upon learning that the FDA has issued a public written notice indicating that a purported dietary supplement or an ingredient contained in a purported dietary supplement is not legal and/or not safe, GNC will take immediate action to suspend the sale of such a product or products.
- Second, GNC will establish two lists—a “restricted list” containing ingredients that are not to be used in dietary supplements and a “positive list” containing ingredients that are approved for sale. Although GNC has agreed that the lists it creates will not have the force of law, GNC will use these lists to guide the company in determining what products it will approve for sale. Products containing novel ingredients that do not appear on either list will, GNC agreed, require further internal action and approval before being offered for sale.
- Third, GNC will substantially revise its internal approach to dealing with the vendors whose products GNC sells, including requiring more explicit guarantees from its vendors that their products do not contain ingredients on the “restricted list” and that their products comply with federal law.
- Fourth, GNC will voluntarily work to develop an industry-wide quality seal program. When this quality seal is implemented, GNC has agreed to stop paying its retail salespeople bonus commissions, or “promotional money,” to direct customers to products in its stores not carrying the seal.
- Finally, GNC will update its adverse event reporting policy to ensure that its employees understand the proper procedures to employ if a customer complains of injuries associated with a dietary supplement bought at GNC.
“Unlawful dietary supplements are an important enforcement priority for the department,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s resolution is a significant step forward in reforming an industry rife with alarming practices. Companies like GNC need to do more to ensure that they are not selling products containing questionable and untested ingredients. The American public deserves better, and the Department of Justice appreciates GNC’s efforts in resolving its issues and moving forward in the best interests of American consumers.”
“I am pleased with this agreement and hold steadfast that those engaged in the sale of dietary supplements to the public must adhere to higher standards to ensure consumers are protected from lax business practices that could endanger them,” said U.S. Attorney John R. Parker of the Northern District of Texas.
“Protecting the public from unsafe ingredients in dietary supplements is one of FDA’s most important responsibilities,” said Director George M. Karavetsos of FDA Office of Criminal Investigations. “We will continue to work with industry to ensure that supplements distributed in the U.S. marketplace do not contain harmful ingredients.”
The matter was handled by Consumer Protection Branch Trial Attorneys David Sullivan and Patrick Runkle, and Northern District of Texas Assistant U.S. Attorney Errin Martin. FDA Office of Chief Counsel Attorneys Nathan Sabel and Michael Shane supported the matter, which was investigated by the FDA Office of Criminal Investigations, Dallas Domicile.
Today’s action is part of the government’s efforts, in collaboration with the Uniformed Services University of the Health Sciences’ Consortium for Health and Military Performance (CHAMP), to provide educational resources for service members and the general public to protect them from risky dietary supplements. Through its Operation Supplement Safety (OPSS), and in partnership with the U.S. Anti-Doping Agency (USADA) and Supplement 411, OPSS provides important information to service members and consumers about dietary supplements. In 2015, OPSS launched a High-Risk Supplement List mobile application (accessible on iOS and Android). For more information, consult the OPSS website. To access the educational resources USADA provides for athletes and general consumers to help realize, recognize and reduce the risks associated with using supplement products, visit USADA’s website at http://www.supplement411.org.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
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Frederick County Man Pleads Guilty in Federal Court to Sexually Exploiting a Toddler to Produce Child PornographyRead the Press Release
Baltimore, Maryland –William H. Steinhaus IV, age 34, of Brunswick, Maryland, pleaded guilty on December 6, 2016, to sexual exploitation of a child to produce child pornography.
The guilty plea 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; Frederick County Sheriff Charles A. “Chuck” Jenkins; Frederick County State’s Attorney J. Charles Smith; and Interim Chief Peter Newsham of the Metropolitan Police Department.
According to his plea agreement, between December 8 and 9, 2014, Steinhaus had a number of sexually explicit conversations on Kik, an instant messaging application, with other Kik users regarding their shared sexual interest in prepubescent children. Steinhaus took pictures using his iPhone or iPad of a two year old girl engaged in sexually explicit conduct and distributed them to approximately 25 other Kik users.
Steinhaus admitted that during those two days, he and another Kik user exchanged approximately 290 messages, including a discussion as to how Steinhaus could best sexually abuse the toddler. Steinhaus sent the user images of the child and Steinhaus engaged in sexually explicit conduct; and pictures of a couch, stating “That’s where tw[sic] assault will happen.”
Also on December 8, 2014, Steinhaus and a second Kik user exchanged approximately 293 messages. Steinhaus sent pictures of the child and Steinhaus engaged in sexually explicit conduct; and pictures of a couch, stating “That’s where the assault is going to happen.”
According to his plea agreement, between December 8 and 9, 2014, Steinhaus exchanged approximately 419 messages on Kik with an undercover law enforcement officer, whom Steinhaus had emailed earlier on December 8, 2014. Steinhaus sent the undercover officer approximately 30 pictures he had taken of the toddler, several of which contained images of the child and Steinhaus engaged in sexually explicit conduct.
Through emergency legal requests, on December 9, 2014, officers identified Steinhaus as the subscriber to the Kik and Yahoo accounts used to communicate with the undercover officer. Officers began surveillance of Steinhaus’ residence in advance of the execution of a search warrant. During the surveillance, Steinhaus began sending the undercover officer images of himself with the victim in the background. Steinhaus told the undercover officer that he would be alone with the victim and would continue the sexual abuse of the child. Officers used a ruse to get Steinhaus out of the residence. Steinhaus came out of the house with his iPhone, and the officers identified themselves. Steinhaus fought with the officers as they tried to secure his iPhone, but they were able to secure and access the device. Steinhaus was arrested and the victim was rescued by the officers.
As part of his plea agreement, Steinhaus 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). In addition, a provision of his plea agreement in the federal case is that Steinhaus must plead guilty to related charges pending against him in the Circuit Court for Frederick County, Maryland.
Steinhaus and the government have agreed that if the Court accepts the plea agreement Steinhaus will be sentenced to between 23 and 38 years in prison, followed by lifetime supervised release. Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for February 24, 2017, at 9:15 a.m.
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 the FBI, Frederick County Sheriff’s Office, Frederick County State’s Attorney’s Office and Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Judson T. Mihok, who are prosecuting the case.
Former Teacher’s Assistant Sentenced to 8 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
LOS ANGELES – A West Los Angeles man who previously worked as a teacher’s assistant was sentenced today to 96 months in federal prison for distributing child pornography via a peer-to-peer file-sharing system on his computer. The images involved in this case depicted children under the age of 15, including child images deemed to be “sadistic” under the federal sentencing rules.
Steven Petlak, 53, was sentenced by United States District Judge Michael W. Fitzgerald. Following the completion of his prison term, Petlak will be on supervised released for the rest of his life.
Petlak pleaded guilty in July to one count of distribution of child pornography. In a plea agreement filed with the court, Petlak admitted that, on multiple dates, he used peer-to-peer software on his computer hard drive to share graphic images of child molestation.
“Predators who seek out child pornography online threaten the safety and well-being of the most vulnerable in our real-world community,” said United States Attorney Eileen M. Decker. “This defendant’s conduct exemplifies a horrific and dark part of our society, and the sentence today reflects the harm caused by defendants who trade in these heinous materials.”
In court filings, Petlak admitted that he made an effort to seek out the worst types of child pornography he could find – in Petlak’s words, “the really dark stuff.” While on pretrial release in this matter, Petlak was caught by law enforcement looking at what appeared to be graphic images of a juvenile female.
Following his release from prison, Petlak will be required to register as a sex offender and to avoid places where children are present.
This investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Reema M. El-Amamy of the Organized Crime Drug Enforcement Task Force Section.
Former TSA Employee Sentenced to 20 Years in Prison for Child PornographyRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Raymond Kinney, age 55, of Jacksonville, was sentenced to 20 years’ imprisonment for distribution of child pornography. Kinney, a former Transportation Security Administration (TSA) employee, was arrested while attempting to meet who he believed were two minors for sex after contacting them on the internet.
“Protecting the children of Arkansas is one of our highest priorities, and our office will never stop working to bring child predators like Kinney to justice,” Thyer said. “I often emphasize that parents must be aware of the dangers children face online and protect them on the internet just as they would in any other public place, and this case demonstrates exactly why.”
Kinney was arrested in Russellville in January 2015, when he drove to meet two minors with whom he planned to have sex, according to online chats that were recovered from his account. Prior to his arrest, Kinney was a Transportation Security Inspector for the TSA.
The investigation began when officers monitoring a social networking site discovered an individual who was seeking a minor for sexual contact. Officers, posing as minors, began undercover conversations with this individual, later discovered to be Raymond Kinney. Kinney sent several pictures and videos of child pornography over the internet to the undercover officers.
The parties ultimately arranged a meeting at a Russellville motel, and Kinney told the undercover officers about his sexual plans for the two minor children. When Kinney arrived at the hotel, instead of meeting the two minors, he was arrested. A search revealed that Kinney had brought sex toys and children’s clothing with him.
“Child predators come from all walks of life, and parents everywhere must be vigilant because these threats aren’t always easily seen,” Homeland Security Investigations New Orleans Special Agent in Charge Raymond R. Parmer Jr. said “This case shows HSI is committed to investigating and seeking prosecution of dangerous criminals regardless of a person’s position in society in order to protect our children.”
Kinney was indicted in February 2015 and pleaded guilty in May 2016. At his change of plea hearing he admitted to using the online username “luvsyngteengirls” and sending several pictures and videos of child pornography over the internet.
On Wednesday, United States District Judge Susan Webber Wright imposed the sentence of 20 years, the maximum sentence allowed by law, which was jointly recommended by the parties in exchange for the United States not charging Kinney with additional criminal conduct that was also discovered during the investigation, including sexual enticement of a minor.
In addition to his federal sentence, Kinney was also convicted of attempted rape in state court and received a sentence of 244 months, which will run concurrently with his federal sentence.
The investigation was conducted by the Russellville Police Department and Homeland Security Investigations. The case was prosecuted by Assistant United States Attorneys Allison W. Bragg and Kristin Bryant.
Former TDCJ Parole Officer Sentenced to 24 years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A former parole officer with the Texas Department of Criminal Justice (TDCJ) has been ordered to federal prison following her conviction of sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson. Saralyn Ann Proschko, 48, of Victoria, pleaded guilty June 7, 2016.
Today, U.S. District Judge John D. Rainey ordered her to serve 288 months in prison. In handing down the sentence, Judge Rainey noted that the crime was terrible and shouldn’t have happened, further mentioning it was one of the most difficult cases to address as a judge, defense attorney and as a prosecutor. Proschko was further ordered to pay $2,537 in restitution to the victim and will serve five years of supervised release following completion of her prison term, during which times she will have to comply with numerous requirements designed to restrict her access to children and the Internet. She will also be ordered to register as a sex offender.
Her boyfriend - David Ray McGee, 49, of Wallis – was also convicted and later sentenced to 27 years in federal prison.
In July 2015, authorities with the Victoria Police Department (VPD) responded to the TDCJ - District Parole Office in Victoria in reference to allegations of possession of child pornography. Officers met with Proschko and discovered an electronic video on her cellular telephone of a juvenile female engaged in a sexual act. Further investigation led to the discovery and charging of McGee in relation to the allegations.
The court heard that McGee had met Proshko on a dating website. During their conversations, he had indicated he had a sexually fantasy. Soon after, Proschko began texting him photos of herself penetrating a young girl with various sexual objects. Eventually, that led to him sexually assaulting the young girl who had begged him to stop during the attack. In at least one instance, Procshko had actually held the toddler down while McGee assaulted her.
Proschko will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of the investigative efforts of Homeland Security Investigations, Texas Attorney General’s Office - Internet Crimes Against Children (ICAC), Houston-Metro ICAC Task Force and the Victoria Police Department.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former President of the Nicaraguan Soccer Federation and FIFA Development Officer Pleads Guilty to Racketeering and Corruption ChargesRead the Press Release
Earlier today in federal court in Brooklyn, Julio Rocha pleaded guilty to racketeering conspiracy and wire fraud conspiracy in connection with his receipt of bribes in exchange for his awarding contracts for the media and marketing rights to FIFA World Cup qualifier matches. Rocha, the president of the Nicaraguan soccer federation (FENIFUT) from 1998 to 2012, was the FIFA development officer for Central America and the Spanish-speaking Caribbean at the time of his arrest in Zurich, Switzerland on May 27, 2015. As part of his plea, Rocha also agreed to forfeit over $292,000. At sentencing, Rocha faces a maximum sentence of 20 years for each count. Today’s plea proceeding took place before United States District Judge Pamela K. Chen.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director in Charge, FBI, New York Field Office; and Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation, Los Angeles Field Office.
According to court filings and facts presented during the plea proceeding, Rocha negotiated and accepted bribes totaling over $150,000 in exchange for exercising his influence as the president of FENIFUT to award a Florida sports marketing company named Traffic Sports USA, Inc. (Traffic) a contract for the media and marketing rights to the Nicaraguan national soccer team’s home World Cup qualifier matches for multiple editions of the World Cup, including the 2014 and 2018 editions. These bribes were transmitted from U.S. bank accounts, often through intermediaries, to accounts Rocha controlled. After he stepped down as president of FENIFUT and was employed by FIFA as a development officer, Rocha attempted to facilitate Traffic’s negotiations with a high-ranking FENIFUT official for the rights to Nicaragua’s World Cup qualifier matches for the 2022 edition of the World Cup in an effort to receive for himself a portion of any bribe money paid for those rights.
In addition, Rocha used his position as FENIFUT president to further enrich himself through other schemes, including one in which he took kickbacks from a Miami company that he had contracted with on behalf of FENIFUT for the purpose of obtaining assistance in securing corporate sponsorships for the federation.
The guilty plea announced today is part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section, and the Fraud Section, as well as from INTERPOL Washington.
Assistant U.S. Attorneys Evan M. Norris, Paul Tuchmann, Keith D. Edelman, and Brian D. Morris of the Eastern District of New York are in charge of today’s prosecution.
The government’s investigation is ongoing.
The Defendant:
JULIO ROCHA
Age: 66
Nationality: NicaraguaE.D.N.Y. Docket No. 15 CR 252 (S-1)
Former O'Fallon, Missouri Man Pleads Guilty to Operating Large Stolen Property Fraud RingRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that yesterday, in federal court in Benton, Illinois, Jason J. Parmeley, 42, formally of O’Fallon, MO, pled guilty to numerous federal crimes arising from his leadership of a large stolen property ring that operated in the Metro East and other locations.
The charges against Parmeley arose from an indictment that was returned by a federal grand jury in East St. Louis, IL, on October 20, 2015. In addition to Parmeley, the indictment charged fourteen other individuals with participating in the stolen property ring.
At his plea hearing today, Parmeley admitted he used the internet to obtain credit account numbers that individuals and businesses had with retail stores, such as Home Depot, Lowes, Menards, and rental stores, such as SunBelt Rentals. Using this information, Parmeley placed orders with the stores in the names, and under the credit accounts, of the individuals and businesses. The items Parmeley ordered frequently consisted of appliances, computers, expensive tools, and construction equipment. Parmeley further admitted that, after he placed the orders, he dispatched drivers to go to the stores and pick up the items. The items were then sold at prices substantially below retail. The profits were wire transferred back to Parmeley in Mexico, where
Parmeley lived and from where he controlled the fraud ring. Parmeley pled guilty to one count of conspiracy to commit wire fraud, one count of conspiracy to transport property obtained by fraud in interstate commerce, four counts of wire fraud, two counts of interstate transportation of property obtained by fraud, six counts of money laundering, and two counts of aggravated identity theft.
In late August of 2015, Mexican Immigration Authorities deported Parmeley from Mexico. Parmeley has been held in federal custody since that time.
Earlier this year, five defendants in the case were sentenced to prison for their roles in this conspiracy. On June 7, 2016, James D. Litchfield, 59, owner of Big Jim’s Autorama in Madison, Illinois, was sentenced to three years in prison, and his brother, Ryan P. Litchfield, 37, of O’Fallon, MO, was sentenced to one year in prison. Both of the brothers had admitted to receiving large quantities of stolen property. On October 4, 2016, Shannan M. Flora, 42, of O’Fallon, MO, and Rigoberto Gutierrez, 28, of Compton, CA, were both sentenced to fifteen months in prison. Flora performed a wide variety of tasks for the conspiracy, including arranging sales of stolen goods. Gutierrez coordinated shipments of stolen goods in California. On October 12, 2016, Russell J. Witt, 34, of Mount Clemens, Michigan, was sentenced to 12 months in prison. Witt worked as a driver for the conspiracy for over a year. Three other defendants, Nicholas A. Brockman, 20, of Wentzville, MO, and Benedict G. Pellerito, 56, of Troy, Missouri, and Bryce E. Atkinson, 22, of Lake Saint Louis, Missouri, received sentences of probation. Brockman, Pellerito, and Atkinson all worked as drivers for the conspiracy for short periods of time.
Five additional defendants have pled guilty to their roles in the conspiracy and are awaiting sentencing. They are: Tony G. Robertson, 44, of O’Fallon, Missouri; Sean A. Shields, 48, of Springfield, Missouri; Alice J. Hembree, 44, of Moscow Mills, Missouri; Steven J. Belcher, 44, of
Wentzville, Missouri; and Jesse S. Urias, 36, of Los Angeles, California. The trial of the remaining defendant, Angel Speed, 25, formerly of O’Fallon, Missouri, is scheduled to begin on February 6, 2017.
The investigation is being conducted by agents from the St. Louis Division of the Federal Bureau of Investigation ("FBI"). The FBI has received substantial assistance from many state and local police departments in numerous jurisdictions, including the Metro East Auto Theft Task Force and the California Highway Patrol. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Former Gate City Woman Pleads Guilty in Tax Refund and Identity Theft SchemeRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Gladys Maria Pena Dominguez pleaded guilty in federal court to participating in an illegal scheme to use stolen personal identifying information to file false federal income tax returns and steal hundreds of thousands of dollars from the U.S. Treasury. Pena pleaded guilty to one count each of the federal crimes of Theft of Government Property, Aggravated Identity Theft, and Conspiracy. Pena, 34 years old, is a resident of the Bronx, N.Y., and a former resident of Nashua, N.H.
According to statements made during the hearing, from January 2012 to December 2013, Pena couriered at least 130 U.S. Treasury tax refund checks from New York, N.Y., to a co-conspirator in New Hampshire, who gave Pena cash in return. As Pena knew, the checks had been obtained from the Internal Revenue Service by conspirators who induced the IRS to issue the checks based upon false tax returns that the co-conspirators had filed using the names and Social Security numbers of real people without their consent or knowledge. The co-conspirators also reported false mailing addresses on the tax returns to cause the IRS to mail the fraudulently derived Treasury tax refund checks to locations that they controlled. The government alleged that the aggregate face value of the checks exceeds $1.1 million.
United States District Judge Landya McCafferty took Pena’s guilty plea and scheduled her sentencing for March 16, 2017. Pena is subject to a statutory maximum sentence of seventeen years in prison, fines of up to $750,000 or both.
This matter was investigated by the Internal Revenue Service’s Criminal Investigation unit, principally by its Manchester, N.H., field office, with assistance from its field office in New York, N.Y. The case is being prosecuted by Assistant United States Attorney Bill Morse.
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Former Des Moines Tax Preparer Charged with Tax FraudRead the Press Release
DES MOINES, IA – On November 21, 2016, Lony Tap Gatwas, 47, of Ames, Iowa, was charged in an 18-count indictment with preparing and presenting false tax returns, wire fraud, and aggravated identity theft, announced United States Attorney Kevin E. VanderSchel.
According to the indictment, from on or about February 2011, through at least March 2013, Gatwas operated a tax preparation business in Des Moines and prepared and filed federal personal income tax returns on behalf of taxpayers. Gatwas devised a scheme to defraud by claiming dependents on taxpayers’ returns when he knew the dependents did not meet IRS requirements, such as living with the taxpayers for a certain length of time out of the year, and being supported financially by the taxpayer. Gatwas charged taxpayers an additional fee for each dependent he put on their return.
Gatwas has a trial date of January 30, 2017, before United States District Court Judge Rebecca Goodgame Ebinger, at the Des Moines Federal Courthouse. Preparing and presenting a false tax return is punishable by a maximum of three years imprisonment and a maximum $100,000 fine. The crime of wire fraud has a maximum prison term of 20 years, and up to a $250,000 fine. Gatwas faces a minimum prison term of two years and up to a $250,000 fine for the crime of aggravated identity theft.
An indictment is only an accusation, and the defendant is presumed innocent unless and until proven guilty.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Canadian MoneyGram and Western Union Agent Sentenced on Fraud and Money Laundering Conspiracy ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Western Union and MoneyGram agent,
Chima Nneji, age 55, of Toronto, Canada, was sentenced by Chief United States District Court Judge Christopher C. Conner in Harrisburg, to 45 months in prison for conspiring to defraud hundreds of American residents out of more than $900,000 via mass marketing consumer fraud schemes.
Chief Judge Conner also ordered Nneji to pay restitution in the amount of $381,729. The lower restitution amount is due in part to monies compensated to victims as part of the U.S. v. MoneyGram deferred prosecution agreement which established a $100 million restitution fund for MoneyGram customers that were victims of consumer fraud.
According to United States Attorney Bruce D. Brandler, in September 2012, Chima Nneji conspired with his codefendant brother, William Nneji, codefendant Alex Mgbolu, and other unnamed individuals between July 2002 and May 2010 to commit the crimes. Chima Nneji was extradited to the United States from Canada and was arraigned on his charges in Harrisburg in July 2015.
Chima Nneji was the owner/operator of a Western Union agency called Advanced Computer and a MoneyGram agency known as Hallmark Services, in Toronto, Canada. Between November 2004 and April of 2007, international mass marketing fraudsters instructed hundreds of consumer fraud victims across the United States to send Western Union and MoneyGram money transfers to Advanced Computer Service and Hallmark Services. The transfers were then paid out by Chima Nneji, and his brother. Nneji and his brother cashed out the money transfers in a manner that maintained the anonymity of the fraudsters, by entering false names and identification data into the Western Union and MoneyGram computer data bases. Analysts from the Toronto Police Service and U.S. Postal Inspection Service determined that over 90% of the payee addresses and identification numbers entered at Advanced Computer Service and Hallmark Services were invalid. For his role in the scheme, Chima Nneji retained a portion of the money transfers before sending the balance of the funds on to the fraudsters.
Law enforcement personnel sent questionnaires to hundreds of MoneyGram customers in the United States whose $1,000 plus money transfers were paid out at Hallmark Services. Not a single sender reported that their transfer was sent for a legitimate purpose. One hundred ninety-eight customers reported that their money transfers, which totaled $579,436, were fraud-induced. The known total dollar loss associated with all consumer fraud induced money transfers paid out at Advanced Computer Service and Hallmark Services is $915,978.
Codefendant William Nneji is a fugitive from justice. Codefendant Alex Mgbolu pled guilty to the charges before Judge Conner in August 2016, and is awaiting sentencing.
The case is part of an ongoing investigation by the Harrisburg Office of the U.S. Postal Inspection Service and is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
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Former Buffalo Police Officer Sentenced for Deprivation of Civil RightsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Robert Eloff Jr., 41, of Buffalo, NY, who was convicted of deprivation of rights under color of law, was sentenced to three months in prison and one year supervised release to include three months home detention by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Guerra, who handled the case, stated that the defendant pleaded guilty in connection with an incident at Molly’s Pub in Buffalo in 2014. In the early morning hours of May 11, 2014, William Sager was pushed down a flight of stairs at Molly’s Pub by Jeffrey Basil. Sager later died of his injuries and Basil pleaded guilty in state court to manslaughter.
At the time Sager was pushed by Basil, Eloff was in Molly’s Pub working security for the bar. Eloff had been employed as a Buffalo Police Officer since 2007. While employed at Molly’s Pub, Eloff wore clothing and articles of equipment which identified him as an off-duty police officer.
A victim identified as D.H. was with William Sager the night Sager was pushed down the stairs. D.H saw people carry Sager outside after he was pushed down the stairs, and upon leaving the bar, saw Sager propped up against a wall. When D.H. asked BPD officers what happened, Eloff grabbed D.H. and told him to get out of there. D.H. then walked away and called 911. When other officers arrived, D.H. asked for Eloff’s name and badge number. Eloff, in response arrested and handcuffed D.H. and seated him next to Sager. D.H. was later taken from the scene by other officers.
Eloff told BPD officers that D.H. had physically interfered with Eloff and others inside the bar and had refused to leave the bar when directed to do so. A later review of surveillance video from Molly’s Pub revealed that D.H. never interfered with Eloff in the bar and never refused a command to leave the bar. In essence, Eloff caused D.H. to be falsely arrested for trespassing, a crime D.H. never committed.
The sentencing is the culmination of an investigation by Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Florida Resident Pleads Guilty to Conspiracy in Connection with Jamaican Based Lottery Fraud SchemeRead the Press Release
Cassandra Althea Palmer, a resident of Florida, pleaded guilty for her role in a Jamaican-based fraudulent lottery scheme, the Department of Justice announced today.
Palmer, 33, pleaded guilty before U.S. District Court Judge Marcia G. Cooke in the Southern District of Florida to one count of conspiracy to commit mail and wire fraud in connection with a fraudulent lottery scheme. An Information was filed on Oct. 26, charging Palmer with conspiracy to commit mail and wire fraud.
“The Justice Department is committed to combatting international lottery fraud schemes preying on innocent Americans,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The help of a co-conspirator in the United States makes it easier for these international fraud schemes to succeed. We will continue to investigate and often prosecute individuals residing in the United States or abroad when they commit fraud against Americans.”
As part of her guilty plea, Palmer agreed that, had the case gone to trial, the United States would have proved the following facts beyond a reasonable doubt: In February 2014, a woman from Worcester County, Maryland, was contacted by an individual in Jamaica and told that she had won a multi-million dollar lottery prize, and that in order to collect her lottery prize, she first had to pay taxes and fees. The victim did not win a lottery prize and would not collect any winnings. Palmer knew about the fraud scheme and agreed with her co-conspirator in Jamaica to participate in the scheme. Palmer participated in the fraudulent scheme in a number of ways. Among other things, she worked with her co-conspirator in Jamaica, to recruit a friend in Maryland to receive $7,500 of the victim’s money. She and her friend kept a portion of the money, and Palmer wire transferred the rest to her Jamaican co-conspirator.
The fraudulent scheme ended when law enforcement officials learned of the fraud. Officials set up a sting, in which an undercover police officer posed as the victim and met Palmer’s friend at a fast food restaurant parking lot in Maryland. The purpose of the meeting was for the victim to hand over $32,500 in cash to Palmer’s friend in order for the victim to claim her purported lottery winnings. Law enforcement arrested Palmer’s friend on the spot, after she received $32,500 in cash from the officer.
Palmer faces a statutory maximum punishment of 20 years in prison, and a fine of $250,000 or twice the gross gain or loss resulting from the offense. Palmer must also pay restitution to the victim. Palmer’s sentencing is scheduled for March 22, 2017.
“The U.S. Postal Inspection Service is dedicated as part of its mission to ensure that these types of predatory schemes are investigated aggressively,” said U.S. Postal Inspector in Charge Antonio J. Gomez of the Miami Division. “It is imperative that we continue to work with our partners, both domestically and internationally, to protect our citizens who fall prey to these schemes so that the U.S. mail isn’t used in furtherance of them.”
This prosecution is part of the Department of Justice’s effort to work with federal and local law enforcement to combat fraudulent lottery schemes in Jamaica that prey on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
Principal Deputy Assistant Attorney General Mizer commended the U.S. Postal Inspection Service, the U.S. Department of Homeland Security and the Maryland State Police, who conducted the investigation, as well as the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Trial Attorney David A. Frank and Counsel Melanie Singh of the Civil Division’s Consumer Protection Branch.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
First Charges Brought in Investigation of Collusion in the Packaged Seafood IndustryRead the Press Release
Senior Vice President Agrees to Plead Guilty to Price-Fixing Conspiracy
The current senior vice president of sales of a leading packaged seafood company has agreed to plead guilty for his role in a conspiracy to fix the prices of packaged seafood such as canned tuna sold in the United States, the Department of Justice announced.
According to a one-count felony charge filed today in the U.S. District Court for the Northern District of California in San Francisco, Walter Scott Cameron and his co-conspirators agreed to fix the prices of packaged seafood from as early as 2011 until about 2013. In addition to his guilty plea, which is subject to court approval, Cameron has agreed to pay a criminal fine and cooperate with the division’s ongoing investigation.
“Today’s charge is the first to be filed in the Antitrust Division’s ongoing investigation into price fixing among some of the largest suppliers of canned tuna and other packaged seafood,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “All consumers deserve competitive prices for these important kitchen staples, and companies and executives who cheat those consumers will be held criminally accountable.”
“FBI San Francisco Division echoes the comments of the Justice Department’s Antitrust Division,” said Special Agent in Charge John F. Bennett of the FBI’s San Francisco Division. “These charges demonstrate our continued commitment to investigate and pursue those individuals and companies seeking to victimize consumers through illegal business practices that threaten our community’s ability to pay fair prices for food for their families.”According to the charge, Cameron and his co-conspirators discussed the prices of packaged seafood sold in the United States and agreed to fix the prices of those products. The defendant and his co-conspirators negotiated prices and issued price announcements for packaged seafood in accordance with the agreements they reached.
Today’s charge is the first to result from an ongoing federal antitrust investigation into the packaged seafood industry, which is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the packaged seafood industry should contact the Antitrust Division’s Citizen Complaint Center at (888) 647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at (415) 553-7400.
Cameron Information
Federal Inmate Indicted for Assaulting Corrections OfficerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daryl Johnson, age 32, an inmate at United States Penitentiary Canaan (USP Canaan), was indicted on December 6, 2016, by a federal grand jury on a charge of assaulting a federal employee.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Johnson kicked a corrections officer in the face during an altercation at the prison in September. The officer suffered minor injuries.
The case was investigated by the Federal Bureau of Investigation and officers at USP Canaan, and is being prosecuted by Assistant U.S. Attorney Sean A. Camoni.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Essex County, New Jersey, Man Sentenced to Five Years in Prison for Role in Oxycodone Distribution RingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 60 months in prison for his role in a conspiracy to illegally obtain and distribute oxycodone in New Jersey, U.S. Attorney Paul J. Fishman announced.
Matthew Policarpio, 29, of Newark, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging him with conspiracy to distribute oxycodone. Judge Salas imposed the sentence today in Newark federal court. His federal prison term will be served consecutively to his five-year state prison term for car theft.
According to documents filed in this case and statements made in court:
Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the Drug Enforcement Administration (DEA) discovered that members and suppliers of a drug trafficking organization secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Policarpio as a member of the drug trafficking organization.
Policarpio admitted that from Feb. 5, 2014, to Aug. 13, 2014, he personally purchased pills containing oxycodone from conspirators and then sold the pills to others. He admitted that in one instance, he arranged to buy 180 pills containing oxycodone from conspirators on June 12, 2014. He traveled to a pharmacy in East Orange, New Jersey, with conspirators and gave them $450, which they used to purchase 180 Endocet pills from the pharmacy. The pills were then provided to Policarpio, who resold them.
Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, has a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence. The Endocet pills obtained and re-sold by Policarpio each contained 10 milligrams of oxycodone.
In addition to the prison term, Judge Salas sentenced Policarpio to three years of supervised release. His federal prison term will be served consecutively to the five-year state prison term he is now serving for car theft.
U.S. Attorney Fishman credited the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark. This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Jef Henninger Esq., Tinton Falls, N.J
El Departamento de Justicia Colabora con la República de Honduras para Combatir la Discriminación en el EmpleoRead the Press Release
WASHINGTON – El Departamento de Justicia y el gobierno de Honduras anunciaron una asociación formal hoy para proteger a trabajadores de la discriminación por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen. La Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, directora de la División de Derechos Civiles del Departamento de Justicia, y el Encargado de Negocios de Honduras, Luís F. Cordero, firmaron un memorando de entendimiento (MOU, por sus siglas en inglés) entre la embajada y sus consulados y la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con la Inmigración (OSC, por sus siglas en inglés), que pertenece a la División de Derechos Civiles.
Como parte del MOU, la OSC y el gobierno hondureño se comprometen a colaborar para educar a los trabajadores acerca de sus derechos laborales y brindarles los recursos necesarios para proteger tales derechos. Asimismo, el MOU procura promover la capacitación para empleadores en cuanto a sus obligaciones al amparo de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés), que prohíbe la discriminación en el empleo por motivos de ciudadanía, estatus migratorio o nacionalidad de origen. En concreto, el MOU dispone que:
- La OSC capacitará al personal consular hondureño en lo que se refiere a la disposición antidiscriminatoria de la INA, participará en eventos organizados por los consulados hondureños para educar a los trabajadores y empleadores y distribuirá materiales educativos a la embajada y sus consulados.
- La embajada establecerá un sistema para referir denuncias de discriminación recibidas en la embajada y sus consulados a la OSC.
“Debemos demostrar nuestra solidaridad con los trabajadores que enfrentan obstáculos ilegales y barreras discriminatorias cuando buscan empleo,” declaró la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta. “Nuestro país prospera cuando toda la gente tiene igualdad de oportunidades para tener éxito. Sin embargo, en demasiadas ocasiones vemos cómo los empleadores se niegan a contratar a los inmigrantes con autorización para trabajar, o les obligan a presentar documentación innecesaria para poder trabajar. Esta asociación ayudará a educar a los trabajadores acerca de sus derechos y canalizará sus denuncias de discriminación hacia la División de Derechos Civiles.”
Este acuerdo resulta particularmente pertinente dado que los nacionales hondureños con el estatus de protección temporal (TPS, por sus siglas en inglés) podrían enfrentar discriminación por parte de empleadores por motivos de su estatus migratorio o por su origen nacional. El TPS es un estatus migratorio temporal que se extiende a nacionales elegibles de un país designado para el TPS al amparo de la INA. Durante el período de designación del TPS, los beneficiarios del TPS están autorizados para trabajar en los Estados Unidos.
Durante el último año, el departamento también ha establecido asociaciones formales con el Ecuador, El Salvador y México para empoderar y educar a las personas provenientes de esas naciones que tienen autorización para trabajar.
La OSC es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de ciudadanía, estatus migratorio y origen nacional en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar; las represalias y la intimidación. Además de sus esfuerzos de cumplimiento, la OSC educa al público en cuanto a los derechos y las responsabilidades al amparo de la disposición antidiscriminatoria de la INA.
Para mayor información sobre las protecciones contra la discriminación en el empleo conforme a las leyes de inmigración, llame a la línea directa de la OSC para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para las personas con discapacidades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para las personas con discapacidades auditivas); inscríbase en un seminario en línea gratuito; envíe un correo electrónico a [email protected]; o visite la página web de la OSC.
Memorandum of Understanding (en inglés)
Eight Chicago People Indicted on Federal Charges in Connection with Plaza Frontenac RobberyRead the Press Release
St. Louis, MO – Eight individuals arrested on November 26, 2016, for their part in a robbery at Plaza Frontenac were indicted today for interstate transportation of stolen property.
Dejuan Wingard, Mario Washington, Jacob Lee, Derrick Crowder, Darius Bowdry, Terrence Bell, Julian Campbell and Keyshyala Thomas, all of Chicago, Illinois, were each indicted by a federal grand jury on one felony count each of interstate transportation of stolen property, which follows a criminal complaint filed Monday.
According to court records, the eight named defendants and others entered the Saks Fifth Avenue department store soon after it opened on the Saturday after Thanksgiving and ran to the Chanel counter, grabbing thirty handbags and smashing fixtures in the process. The group then left the store and entered two waiting vehicles, which left the shopping center and traveled east on Highway 64/40. The Frontenac, Missouri, police department pursued the vehicles but disengaged due to safety concerns as the defendants’ vehicle was exceeding 100 miles per hour on the highway.
Later that morning, the Illinois State Police and other local departments from southern Illinois were able to stop the defendants’ car, which contained sixteen of the stolen handbags, and take the defendants into custody. The defendants remain in federal custody on the government’s motion to detain them pending trial.
Interstate transportation of stolen property carries a maximum penalty of 10 years in prison and/or fines up $250,000. Restitution is mandatory and the government is seeking the criminal forfeiture of all the stolen merchandise. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the Federal Bureau of Investigation, the Frontenac Police Department, the Illinois State Police, the Montgomery (IL) County Sheriff’s Department, the Montgomery (IL) County Prosecutor’s Office and the St. Louis County Office of the Prosecuting Attorney. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Delmar Woman Sentenced to Prison for Workers’ Compensation Fraud SchemeRead the Press Release
SYRACUSE, NEW YORK – Carol-Lisa Gutman, age 62, of Delmar, New York, was sentenced today to 22 months in prison after a jury found her guilty earlier this year of conducting a 15-year fraud scheme in which she received about $429,000 in federal disability benefits.
The announcement was made by United States Attorney Richard S. Hartunian and Eileen Neff, Special Agent in Charge for the Northeast Area of the United States Postal Service Office of Inspector General.
In June, Gutman was convicted of five counts of wire fraud, two counts of federal employees’ compensation fraud, and one count of theft of government money after a six-day jury trial in Albany presided over by Senior United States District Judge Frederick J. Scullin, Jr. In addition to the 22-month prison sentence, Judge Scullin ordered Gutman to be placed on supervised release for 2 years after her release from prison and to pay restitution to the United States Department of Labor in the amount of $429,677.93.
The evidence at trial demonstrated that Gutman began receiving federal workers’ compensation benefits in 1987, after claiming to have injured her back while working for the United States Postal Service. From that time forward, Gutman claimed to be completely disabled, regularly reporting to her doctors that she was essentially housebound and lacked the ability to do any substantial amount of bending, lifting, carrying, or even sitting. Gutman also reported that she spent 15 hours each day in a large hot tub in order to obtain relief for her back pain and that she did not perform household-related tasks.
The evidence at trial included hours of video recordings from 2011, 2012 and 2013, showing Gutman working in her yard, performing activities such as raking leaves, mowing the lawn, carrying large pails of yard waste, and bending over repeatedly. As a result of her fraud, between September 2001 and April 2016, Gutman received more than $429,000 in workers’ compensation benefits to which she was not entitled.
This case was investigated by the United States Postal Service Office of Inspector General, and was prosecuted by Assistant United States Attorney Michael F. Perry.
Craigslist Robbery Crew Member Sentenced to over 30 Years’ Imprisonment Following Conviction on Multiple CountsRead the Press Release
OAKLAND – Michael Anthony Martin, 42, of Tracy, Calif., was sentenced today to 370 months in prison for his role in a conspiracy to commit robbery affecting interstate commerce and robbery affecting interstate commerce announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence follows Martin’s conviction of multiple counts of robbery on February 4, 2016, after a three-week jury trial before the Honorable Jeffrey S. White, U.S. District Judge.
Martin was one of five defendants indicted by a federal grand jury on April 10, 2014, in connection with robberies that targeted individuals selling high-end jewelry, such as diamonds and Rolex watches, on Craigslist. Additional defendants were indicted in other related cases. The evidence at trial demonstrated that between November 2012 and December 2013, the defendants were part of a crew that targeted victims nationwide whom they identified on Craigslist. The crew members contacted the targeted victims via e-mail or cellular telephone and negotiated to purportedly purchase the jewelry item. The robbers frequently posed as music producers or pretended to be in the market for diamond engagement rings. The crew members then induced the victims to travel to the Bay Area to sell the jewelry item by offering to pay for the victim’s airplane ticket or promising to reimburse the victim for travel. Often a robbery crew member posed as an airport limousine driver and picked up the victim at the airport using a rental SUV. The victim believed he or she was going to meet the buyer at a jewelry store or bank to complete the sale. Instead, the driver took the victims to a different, predetermined location where two or more additional robbers, using guns and physical violence, robbed the victims of the jewelry items and other personal property.
The evidence at trial showed the robbery crew is estimated to have been responsible for stealing more than $500,000 worth of jewelry from victims traveling from more than six states, including Arizona, California, Colorado, Oregon, Washington, and Wisconsin. For his role in the robberies, Martin was charged with one count of conspiracy to commit robbery affecting interstate commerce, in violation of 18 U.S.C. § 1951, and four counts of substantive robbery, in violation of 18 U.S.C. § 1951(a) and 2. Pursuant to the jury’s February 4, 2016, verdict, Martin was found guilty of all counts.
In calculating Martin’s prison term, Judge White imposed a sentence based in part on the finding that the defendant committed perjury while testifying during his trial. The perjury finding resulted in an obstruction enhancement and a higher sentence. Further, in addition to the prison term, Judge White ordered Martin to serve a three-year period of supervised release and to pay restitution in the amount of $191,863.93.
Martin is in federal custody and will begin serving his sentence immediately.
Other crew members that have been sentenced include the following:
NAME/
CASE NO.
AGE
NUMBER OF ROBBERIES/ ATTEMPTED ROBBERIES ADMITTED
SENTENCING DATE
SENTENCE
Rafael Lamont Davis/
CR 14-00093 JSW
19
1
October 14, 2014
41 months
Jaedon Eric Evans/
CR 14-00093 JSW
19
1
December 2, 2014
46 months
Keegan Leecodi Cotton/
CR 14-00093 JSW
20
5
June 2, 2015
70 months
Clarence Lee Andrews/
CR 14-00094 YGR
38
5
December 18, 2014
210 months
Assistant U.S. Attorneys Brigid S. Martin and Claudia A. Quiroz are prosecuting the case with the assistance of Melissa Dorton, Katie Turner, Patty Lau, Yvette Baird, Maria Sunga, and Maureen French. The prosecution is the result of an investigation by the U.S. Attorney’s Office, the Federal Bureau of Investigation (San Francisco Division, assisted by Sacramento, St. Louis, San Antonio, and Mobile, Alabama Divisions), U.S. Bureau of Prisons, Fremont Police Department, California Department of Corrections, El Cerrito Police Department, Richmond Police Department, San Francisco Police Department, Alameda County Sheriff’s Office, Oakland Police Department, Berkeley Police Department, Danville Police Department, Concord Police Department, Livermore Police Department, Manteca Police Department, Tracy Police Department, Contra Costa Sheriff’s Office, Hayward Police Department, Burlingame Police Department, San Leandro Police Department, Berkeley, Missouri Police Department; Olivette, Missouri Police Department; and the Northern California Regional Intelligence Center.
Convicted Search Engine Optimizer Indicted for Retaliating Against Former VictimRead the Press Release
DALLAS, Texas — Less than one year after being sentenced to 37 months in federal prison for attempting to extort money from a Dallas-based business (victim Company) and ordered to pay $174,888 in restitution to the numerous victims of his extortive conduct in U.S. v. William Laurence Stanley, 3:14-CR-113-N, former search engine optimizer William Laurence Stanley, 53, was indicted this week for retaliating against the principle victim in the 2014 case. The indictment was announced today by U.S. Attorney John Parker of the Northern District of Texas.
This week’s indictment alleges that from approximately September 6 through September 28, 2016, Stanley, knowingly and with the intent to retaliate against a person for providing law enforcement information about the commission of a federal offense, posted false and derogatory comments and reviews online about the victim Company from the 2014 case.
Stanley’s conviction in the above-referenced case, stemmed from his and his sister, Lynn Faust’s online and telephone threats from 2013 through 2014 to ruin the reputation of the victim Company because of his pretense that the victim Company refused to pay him approximately $30,000. Stanley threatened to post negative things online about the victim Company that had the potential to cause significant revenue losses. Stanley’s search engine optimization skills caused any items he posted online to rank high on the various search engines. During the early stages of the extortion in 2014, the victim Company notified the FBI in Dallas, which opened an investigation. Several victim Company officers and employees subsequently provided truthful information to the FBI regarding Stanley’s commission of a federal offense – the offense to which he ultimately pled guilty in July 2015.
In early August 2016, after serving the majority of his imprisonment term, Stanley was transferred by the Bureau of Prisons (BOP) to a halfway house in Houston. In early September 2016, the BOP placed Stanley on home confinement at his daughter’s residence in Angleton, Texas.
On approximately September 21, 2016, according to the affidavit filed with the criminal complaint, Stanley posted derogatory online articles/blogs/complaints intended to portray the victim Company in a negative light. Several of the articles/blogs/complaints had titles and photographs added to place the victim Company in an even more negative light. Stanley also allegedly encouraged others to duplicate the negative content in as many places as possible. The investigation revealed, among other things, that Stanley created the derogatory blogs while he was on home confinement in Angleton.
The affidavit further notes that as a result of the recent derogatory online postings, the victim Company has suffered a significant loss of revenue, with the potential for additional loss of revenue so long as the postings remain online.
Stanley has been held in custody on the complaint filed on October 20, 2016, since he completed his previous BOP sentence on November 4, 2016. Following a detention hearing held on December 2, 2016, U.S. Magistrate Judge David L. Horan ordered that Stanley remain in custody. Judge Horan found there was no condition or combination of conditions that would reasonably assure Stanley’s appearance as required. He noted that Stanley has a house and family in Romania, and he has expressed an interest in returning there. A family member also told law enforcement that he would definitely flee the country if released from custody.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, Stanley faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered.
The FBI is investigating the case. Assistant U.S. Attorney C.S. Heath is in charge of the prosecution.
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Columbia Man Sentenced to 15 Years for Child Sex TraffickingRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for child sex trafficking.
Kenyata D. Miles, 35, of Columbia, was sentenced by U.S. District Judge Stephen R. Bough to 15 years and eight months in federal prison without parole.
Miles, who owned and operated Precision Commercial and Residential Cleaning, pleaded guilty on May 16, 2016. Miles admitted that he booked two rooms for two nights at the Quail’s Nest Motel in Osage Beach, Mo., in April 2013. Law enforcement officers found a 16-year-old female who had been reported as missing in one of the rooms; Miles and two women were in an adjacent room.
Advertisements had been posted on Backpage.com advertising the availability of the child victim and one of the women for sexual services. Miles arranged hotel reservations and provided transportation to hotels for their prostitution activities.
According to court documents, the minor victim also had traveled with Miles and a woman identified as “K.M.” to St. Louis, where they engaged in prostitution. When they returned to Columbia, the minor victim again engaged in prostitution. Miles became increasingly violent, according to K.M., and assaulted her and threatened her with a gun. Miles initially split the prostitution proceeds with her and the minor victim, K.M. told investigators, but had recently only been giving them money for necessities.
According to court documents, Miles has an extensive criminal history, including a history of violent criminal behavior and drug abuse. He has been incarcerated or under court supervision for much of his adult life.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Boone County, Mo., Sheriff’s Department and the Osage Beach, Mo., Police Department in conjunction with the Human Trafficking Rescue Project.
Chief Executive of Florida-Based Financial Firm Guilty of Fraud in $179 Million Sham Loan SchemeRead the Press Release
CHICAGO — The CEO of a Florida-based financial firm has pleaded guilty to fraud charges in connection with the sale of $179 million in sham loans to a Milwaukee investment company.
NIKESH A. PATEL was the Chief Executive Officer of First Farmers Financial LLC when the company sold three fabricated loans totaling approximately $20 million to a Tennessee-based investment firm, and 26 fabricated loans to a Milwaukee investment firm for $179 million. Between November 2012 and September 2014, Patel created and assisted in creating false documents sent to the investment firms in support of these loans. Patel submitted documents to the Milwaukee investment firm that falsely created the appearance that his company had lent money to borrowers in Florida and Georgia – in amounts ranging from $2.5 million to $10 million – and that a portion of the loans were guaranteed by the federal government under a program administered by the U.S. Department of Agriculture. All 26 loans were completely fabricated with no actual borrower, no pre-existing loan, and no government guarantee.
Patel, 33, of Windermere, Fla., pleaded guilty on Tuesday to five counts of wire fraud. The conviction carries a maximum sentence of 100 years in prison and a fine of $1,250,000. U.S. District Judge Charles P. Kocoras set sentencing for April 6, 2017, at 9:45 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration.
First Farmers’ president, TIMOTHY G. FISHER, was also convicted in connection with the fraud. Fisher, of Pasadena, Calif., pleaded guilty last month to one count of money laundering. Fisher faces up to ten years in prison when he is sentenced by Judge Kocoras on May 4, 2017, at 9:45 a.m.
Evidence in the case revealed that Patel created fictitious business names and false USDA loan identification numbers, and forged the signatures of USDA employees and purported borrowers. Patel also assisted in creating false financial documents, including what purported to be a certified audit by a fictitious accountant that he submitted to the investment firm to obtain the funds.
Based upon the false statements, the Milwaukee firm’s clients, which included community banks, retirement plans, municipalities and subdivisions in Illinois and elsewhere, suffered a loss of $179 million. Although a portion of the funds were used to make interest payments to the investors, the bulk of the funds were used to pay existing debts, acquire assets, pay personal expenses, invest in other unrelated businesses, and repurchase loans that Patel had previously sold to the Tennessee investment advisor.
The government is represented by Assistant U.S. Attorneys Patrick King and Rick Young.
Cedar Rapids Drug Dealer Sentenced to 30 Years ImprisonmentRead the Press Release
A Cedar Rapids man who was found in possession of marijuana and a firearm was sentenced today to 30 years in federal prison.
Anthony Steven Hall, Jr., 31, from Cedar Rapids, Iowa, received the prison term after a June 14, 2016, jury verdict finding him guilty of three crimes: possession of marijuana with intent to distribute, possession of a firearm by a felon and drug user, and possession of a firearm in furtherance of a drug trafficking crime.
Evidence at trial showed that on April 13, 2015, police conducted a routine traffic stop on a vehicle driven by Hall. Police searched the vehicle and located 63 individually wrapped bags of marijuana and a .40 caliber pistol in the vehicle’s center console. Police also seized a cell phone used by Hall. During the traffic stop, Hall provided police with a false name and date of birth. When police attempted to place Hall under arrest, Hall attempted to flee and physically assaulted one of the police officers. Investigators eventually searched the cell phone and located numerous text messages discussing the distribution of marijuana. Investigators also located cell phone video depicting Hall with a firearm on a previous occasion.
Hall was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hall was sentenced to 360 months imprisonment. A special assessment of $300 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Hall is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-55.
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California methamphetamine trafficker sentenced to 10 years in federal prisonRead the Press Release
CHARLESTON, W.Va. – A California man who traveled to West Virginia to facilitate methamphetamine trafficking was sentenced today to 10 years in federal prison for a drug crime, announced United States Attorney Carol Casto. Gary Liberty, 52, previously pleaded guilty to possession with intent to distribute methamphetamine.
Liberty admitted that in January 2012, he made arrangements with a confidential informant working with law enforcement to ship crystal methamphetamine from California to West Virginia. On January 5, 2012, Liberty traveled from California to West Virginia by airplane. The next day, Liberty provided the confidential informant with a U.S. Postal Service tracking number for a package containing crystal methamphetamine that Liberty had arranged to be sent from California to the informant’s residence in Sissonville. On January 7, 2012, officers intercepted the package and seized over 80 grams of methamphetamine. Officers then conducted a controlled delivery of the package to the confidential informant’s residence with a fake substance in the package. After the informant took delivery of the package, officers entered the informant’s home and found Liberty standing over the package with the package open and several items from inside the package on the table. Liberty then gave a statement to law enforcement and admitted his involvement with methamphetamine trafficking.
The Metropolitan Drug Enforcement Network Team and the United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Businessman Pleads Guilty to Bribery Charges Involving Government ContractsRead the Press Release
ALEXANDRIA, Va. – James C. Bedford, 50, of Dumfries, pleaded guilty today to charges of conspiracy to commit bribery and bribery of a public official.
According to the statement of facts filed with the plea agreement, in 2006, the computer systems of the Bureau of Industry and Security (BIS), a bureau within the Department of Commerce, were infected by a computer virus that required BIS to shut down internet access to its computer systems and to construct a new computer network that had not been infected by the virus. Because BIS employees needed access to files that resided on the old system, files needed to be migrated from the old, infected network to the new, uninfected network.
According to the statement of facts, from May 2010 through October 2011, Bedford conspired with Raushi J. Conrad, then a BIS employee, to pay bribes to ensure that Bedford’s companies were awarded and maintained a lucrative subcontract and contract to perform the data migration work. Conrad was then serving within the Office of the Chief Information Officer for BIS and had been designated to oversee the data migration project. Conrad has been indicted for his role in the conspiracy and bribery scheme.
According to the statement of facts, Bedford made $208,000 in payments through a construction company he owned to a restaurant business owned by Conrad, many payments were concealed through false and fictitious invoices created by Conrad. The fake invoices made it appear that Conrad’s restaurant business had performed various services for Bedford’s construction company, when in fact no such services ever had been provided. Bedford also paid for over $7,000 worth of renovation work performed at Conrad’s residence. In exchange, Bedford’s companies reaped over $1 million in profits from the data migration subcontract and contract.
Bedford faces a maximum penalty of 20 years in prison sentenced on March 31, 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; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Duane E. Townsend, Special Agent in Charge of the U.S. Department of Commerce, Office of Inspector General; and Robert Craig, Special Agent in Charge for Defense Criminal Investigative Service Mid-Atlantic Field Office made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorneys Matthew Burke and Jamar K. Walker 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. 1:16-cr-264 and 1:16-cr-169.
Buffalo Man Sentenced for Committing Multiple Bank RobberiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Casey Swain, 38, of Buffalo, NY, who was convicted of bank robbery, was sentenced to 57 months in prison by U.S. District Court Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that, on five different dates, the defendant robbed First Niagara Bank branches in Buffalo, Lackawanna, Niagara Falls, Kenmore, and Bellevue, Pennsylvania. During each of the robberies, Swain passed a note to a bank teller demanding United States currency. Some of the notes included the words “no sudden movements” or “eye contact” or things would turn bad.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction on the part of Adam S. Cohen, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lackawanna Police Department, under the direction of Chief James Michel, the Niagara Falls Police Department, under the direction Chief Bryan DalPorto, the Kenmore Police Department, under the direction of Chief Peter Breitnauer, and the Bellevue (PA) Police Department, under the direction of Chief Matthew Sentner.
Buffalo Gang Member Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Oscar Romero, 35, of Buffalo, NY, pleaded guilty to possession with intent to distribute and distribution of cocaine before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a $2,000,000 fine.Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that the defendant was a member of a gang known as the Loiza Boys which has been distributing cocaine and heroin on Buffalo’s West Side since at least 2006.
Romero was charged in 2013 along with nine other defendants following a long term investigation that involved the interception of telephone calls of the defendants and the use of undercover drug purchases from some of those charged. During the investigation, law enforcement officers seized over 450 grams of heroin, three firearms, and over $70,000 in U.S. currency.
Romero is the first to be convicted. The remaining defendants are scheduled to go to trial on January 3, 2017. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for March 15, 2017 at 2:00 p.m. before Judge Skretny.