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6 December 2016
Maine Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A Maine man pleaded guilty yesterday in U.S. District Court in Boston in connection with enticing minors to engage in illicit sexual conduct.
Dillan Letellier, 32, of Saco, Maine, pleaded guilty to two counts of coercion and enticement of a minor, one count of attempted coercion and enticement of a minor, three counts of travel with intent to engage in illicit sexual conduct, and one count of possession of child pornography. U.S. District Court Judge George A. O’Toole, Jr., scheduled sentencing for March 27, 2017.
Letellier admitted to pretending to be a seventeen-year-old when he met two fourteen-year-old victims over the internet, coercing and enticing each victim to meet with him. On separate occasions, Letellier traveled from Maine to each of the victims’ Massachusetts towns, met each minor victim, and brought the victims to locations in Massachusetts where they engaged in sexual intercourse. Following an investigation by law enforcement officers, Letellier was charged by criminal complaint and arrested on Oct. 3, 2013. A forensic exam of the electronic devices seized from defendant’s residence revealed thousands of child pornographic images and videos.
The charges of coercion and enticement and attempted coercion and enticement each provide for a mandatory minimum of 10 years in prison and no greater than life, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charge of traveling with intent to engage in illicit sexual conduct provides for a sentence of no greater than 30 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of no greater than 20 years in prison; a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. He will also be required to register as a sex offender. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. The Saco Police Department and municipal police departments where the victims reside assisted with the investigation. Assistant U.S. Attorneys Suzanne Sullivan Jacobus and Anne Paruti of Ortiz's Major Crimes Unit are prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Louisville Woman Pleads Guilty to Defrauding the Social Security AdministrationRead the Press Release
Failed to disclose the death of her husband for eleven years
Benefit totaled $268,396
LOUISVILLE, Ky. – A Louisville woman pleaded guilty this week in United States District Court before Chief Judge Joseph H. McKinley Jr., to several charges involving the fraudulent receipt of Old-Age, Survivors and Disability Insurance (OASDI) benefits by the Social Security Administration (SSA), for an eleven-year period, totaling $268,396 announced United States Attorney John E. Kuhn, Jr.
In court, Janice M. Arnow, age 69, admitted that she failed to disclose the death of her husband and continued to receive and spend OASDI payments made by the SSA between October 2003 and October 2014. Further, Arnow admitted to theft of government property. Arnow embezzled, stole, and purloined money of the Social Security Administration (SSA), a department and agency of the United States, namely, Old-Age, Survivors and Disability Insurance program (OASDI) payments made to her deceased husband, to which she knew she was not entitled.
Also, on or about July 17, 2012, Arnow admitted to making her own false Social Security Application. Arnow willfully and knowingly made a materially false, fictitious, and fraudulent statement, by submitting an application for her own OASDI payments to the SSA. In doing so, Arnow falsely omitted the identity of her late husband (Paul Adams), the receipt of income from her late husband’s OASDI payments, the date of his death, and falsely indicated that she had no other marriages than to M.H.
According to information presented in court, when Arnow was questioned by agents with SSA at her Louisville home, Arnow reportedly stated that she thought she could spend the money because she was his widow, offered to pay the money back, could not remember to whom she had mailed her late husband’s death certificate, and that she had used the money for social work in Rwanda and the Congo.
In a separate case, on November 19, 2012, Arnow pleaded guilty in the Commonwealth of Kentucky, Jefferson County, to wanton exploitation of an adult over $300, theft of identity, fraudulent use of a credit card over $500, and theft by unlawful taking of over $500. The court sentenced Arnow to four years on each count. Arnow entered into a five-year diversion. The Commonwealth moved to revoke that diversion based on the federal charges.
Arnow is scheduled for sentencing in Louisville on March 6, 2016 at 11:30 a.m.
The case is being prosecuted by Assistant United States Attorney Joshua Judd, and results from an investigation conducted by the Social Security Administration –Office of the Inspector General.
Louisville Man Sentenced to 37 Years in Prison for His Role in A String of Armed Robberies in Metro LouisvilleRead the Press Release
Federal prosecution resulted from “Project Recoil”
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the 37-year sentence of a violent convicted felon for his role in a string of armed robberies in Metro Louisville. The federal charges stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies, developed by the U.S. Attorney’s Office for the Western District of Kentucky, to maximize penalties for the most violent offenders and to reduce violent crime in our community.
“Project Recoil, a collaborative initiative between federal and local law enforcement, is working to identify and successfully prosecute the most dangerous offenders in our community,” stated United States Attorney John Kuhn. “This sentence is an example of how well our partnership is working,”
Jescell Whittle was convicted of obstruction of interstate commerce through robbery of two businesses, and using a firearm in connection with the two robberies following a six-day trial on August 30, 2016, in Louisville. Whittle was found guilty of attempting to rob the Cricket Wireless store, located at 3125 W. Broadway, and using a firearm in the commission of the attempted robbery that occurred on October 23, 2012. A surveillance video showed Whittle brandishing a firearm and attempting to vault the counter before running out of the store without any money. Whittle was also found guilty of aiding and abetting in the robbery of a Speedway, located on 3030 Taylor Boulevard on October 31, 2012, and discharging a firearm in the commission of that robbery.
This successful prosecution has resulted in the sentencing of three other co-defendants, to lengthy prison sentences, for their roles in the armed robberies of two Cricket Wirelesses and three convenience stores in Metro Louisville. Whittle was sentenced yesterday, December 5, 2016, in United States District Court by Chief Judge Joseph H. McKinley Jr.
For their roles in the armed robberies of three businesses located in Jefferson County, Kentucky, co-defendant James Gore, Jr., was sentenced to serve 72 months in prison followed by a three-year period of supervised release, while co-defendant Tony Trumbo, Jr., was sentenced to serve 255 months in prison followed by a three-year period of supervised release. Both men were sentenced on July 9, 2015.
Gore previously pleaded guilty to aiding and abetting the obstruction of interstate commerce through robbery of two businesses. Trumbo previously pleaded guilty to aiding and abetting the obstruction of interstate commerce through robbery, attempted robbery of three businesses, and aiding and abetting the discharge of a firearm during a robbery.
According to the plea agreement, Gore admitted to robbing a Thorntons, with several other individuals, located at 4516 Poplar Level Road on October 30, 2012, and to robbing a Speedway, with several other individuals, located on 3030 Taylor Boulevard on October 31, 2012. Surveillance video taken from the Thorntons robbery shows Gore brandishing two firearms during the robbery.
In a separate plea agreement, defendant Trumbo admitted to attempting to rob the Cricket Wireless store, located at 3125 W. Broadway, along with other individuals, on October 23, 2012. Surveillance video taken from the store shows Trumbo along with an accomplice who was brandishing a firearm, attempting to rob the store. Trumbo also admitted to being one of several people to rob the Thorntons located at 4516 Poplar Level Road, on October 30, 2012. Trumbo further admitted to being one of several people to rob the Speedway located at 3030 Taylor Boulevard on October 31, 2012. During the course of that robbery, Whittle shot a Speedway customer in the back causing serious bodily injury.
Co-defendant Dahntel Newsome pleaded guilty to multiple charges on September 9, 2015, and was sentenced to 243 months in prison. Newsome admitted to being the getaway driver during the commission of the robbery of the Crickett Wireless store on Cane Run Road. He further admitted to being the getaway driver during the robbery of the Cricket Wireless Store on West Broadway in Louisville, and admitted to using a handgun and threatening to shoot the clerk in the foot during the robbery of a JC Cigarette Outlet located on Crums Lane and to driving the getaway vehicle.
This case was prosecuted by Assistant United States Attorneys A. Spencer McKiness and Rob Bonar, and was investigated by the Louisville Metro Police Department.
Local Tax Preparer Convicted of Using Aliases to Continue False Tax Return Preparation after Pleading GuiltyRead the Press Release
HOUSTON – A local tax return preparer has entered a guilty plea to preparing false tax returns and obstructing the IRS in the enforcement of federal income tax laws, announced U.S. Attorney Kenneth Magidson along with D. Richard Goss, special agent in charge of Internal Revenue Service-Criminal Investigation (CI).
According to the factual basis in support of the plea, Oliphant was previously charged and convicted of preparing dozens of false 2006-08 client tax returns though Oliphant Tax Services in Huntsville. He was released on bond in that case under a condition that he have no involvement in the preparation of tax returns other than his own. However, Oliphant resumed tax return preparation and continued to claim the same false deductions for unsuspecting clients while awaiting sentencing in the earlier case.
As part of his continuation of the scheme, Oliphant changed the name of his business to “Tax Services” to make it appear he had stopped preparing client tax returns and that someone else was the owner of his tax preparation business. Oliphant allegedly attributed the fees to the nominal owner of his tax office but manipulated those tax returns to make it appear the tax office had produced almost no taxable income.
Oliphant established a series of bank accounts in the names of others - including minors with custodians other than himself - so the fees could first be deposited to accounts in the names of the nominal owner of his tax office and others. He then transferred those fees through these intermediate accounts to accounts in his own name. This scheme enabled Oliphant to conceal his personal use of the fees generated by the business during the course of the prosecution on the first case according to the plea agreement.
While operating his tax preparation business under other names, Oliphant generated $2 million in fees and a total loss to the IRS of another $400,000. The losses from the false tax returns prosecuted in the earlier case exceeded $325,000.
U.S. District Judge Keith Ellison, who accepted the guilty plea, has set a sentencing date of Feb. 22, 2017, at which time Oliphant faces up to three years in federal prison and a possible $250,000 fine as a result of today’s conviction.
Oliphant was sentenced to 33 months on the earlier case and was released Aug. 26, 2016. He was denied bond upon his arrest in the current case on Sept. 2, 2016, and remains in custody until his sentencing hearing.
Oliphant’s plea agreement requires that he surrender more than $200,000 in bank accounts linked to the scheme, his personal residence and two Mercedes Benz automobiles as restitution to the IRS in both cases.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. has prosecuted both cases.
Lenoir County Drug Trafficker Sentenced for Cocaine and Marijuana ConspiracyRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on December 6, 2016, United States District Judge Louise W. Flanagan sentenced HUBERTO ESPINDOLA-SOTO, 37, from La Grange, N.C., to 146 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and 500 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. ESPINDOLA-SOTO pled guilty to these charges on June 14, 2016.
On November 12, 2014, after a lengthy investigation, DEA Task Force Officers arrested ESPIDOLA-SOTO after he left his residence in La Grange, N.C. During a search of the residence, officers found approximately 3 kilograms of crystal methamphetamine, 5 kilograms of cocaine, two assault rifles and a .22 caliber rifle. Officers arrested a co-conspirator, AUGUSTO ESPINDOLA-PINEDA, on the same day. The investigation revealed that the conspiracy involved 335 kilograms of cocaine, 3 kilograms of crystal methamphetamine and 500 pounds of marijuana. AUGUSTO ESPINDOLA-SOTO pled guilty to the same charges in May 2016 and is scheduled to be sentenced in February 2017.
This case was part of OCDETF Operation “Smokin’ Aces”. Operation “Smokin’ Aces” was designed to attack the infrastructure of Mexican Drug Trafficking Organizations operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These organizations are responsible for the importation of large quantities of cocaine, marijuana, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The case was investigated by the Drug Enforcement Administration, the Lenoir County Sheriff’s Office, the Greenville Police Department, the Johnston County Sheriff’s Office, the Wayne County Sheriff’s Office, the Wilson Police Department, the Rocky Mount Police Department, the Nash County Sheriff’s Office, the Goldsboro Police Department, the Raleigh Police Department, and the Person County Sheriff’s Office. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office, pursuant to funding provided by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
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News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.
Last of Three Defendants Convicted for Role in Murder of Southlake, Texas, Man is SentencedRead the Press Release
FORT WORTH, Texas —The last of three defendants convicted for their respective roles in the May 2013 murder of Juan Jesus Guerrero Chapa in Southlake, Texas, Jesus Gerardo Ledezma-Cepeda, a/k/a “Chuy” and “Juan Ramos,” was sentenced this morning by Senior U.S. District Judge Terry R. Means to two life sentences to be run concurrently in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Ledezma-Cepeda, 60, was convicted at trial in May 2016 on one count of interstate stalking and one count of conspiracy to commit murder for hire.
Last week, co-defendant Jose Luis Cepeda-Cortes, 60, was sentenced by Judge Means to serve two life sentences plus 240 months to run concurrently. He was convicted at the May 2016 trial on one count of interstate stalking, one count of conspiracy to commit murder for hire, and one count of tampering with documents or proceedings.
Ledezma-Cepeda’s son, co-defendant Jesus Gerardo Ledezma-Campano, 33, was sentenced in August 2016 to 240 months in federal prison. He pleaded guilty earlier this year to one count of interstate stalking and testified for the government at trial.
All three defendants are Mexican citizens; Cepeda-Cortes was legally in the U.S.
“The sentences in this case reflect the horrific and heinous nature of the defendants’ crimes,” said U.S. Attorney Parker. “These three men methodically hunted down their intended victim through several states, in and out of Mexico, and over several months for the sole purpose of facilitating his execution. On the day of the murder, once they ensured the gunman knew the victim’s location, Ledezma-Cepeda and Ledezma-Campano stood callously by while the victim was shot multiple times in broad daylight, with the victim’s wife and dozens of shoppers nearby.”
“The successful investigation and prosecution of this violent crime is an example of the great relationship between the Southlake Police Department and our federal partners,” said Southlake Police Chief James Brandon. “Our residents and the residents of North Texas should take comfort in the fact that we will utilize every resource at our disposal to bring criminals to justice.”
“The FBI is committed to fighting cartel violence in North Texas,” said Dallas FBI Special Agent in Charge Thomas M. Class, Sr. “The exhaustive investigative work by law enforcement in this case was reflected by the lengthy prison sentences handed down to the defendants.”
“The sentencing of this defendant, as well as the other two defendants in this sophisticated organization, demonstrates the partnership between local, state, and federal law enforcement,” said the DEA Dallas Field Division’s Special Agent in Charge Clyde E. Shelley, Jr. “We will not tolerate cartel violence in our community, and we will fight until justice is served for the victims of such heinous crimes.”
On May 22, 2013, at approximately 6:47 p.m., Juan Jesus Guerrero Chapa was ambushed and shot multiple times with a 9mm pistol while seated in his Range Rover that was parked at Southlake Town Square. A Toyota Sequoia pulled up behind the Range Rover, a gunman got out of that vehicle, walked up to the Range Rover, and fired several times through the window at Mr. Chapa, who died at the scene. Nearby, Mr. Chapa’s wife was not harmed.
According to evidence presented at trial and documents filed in the case, from approximately March 1, 2011, until May 22, 2013, the three defendants traveled in interstate and foreign commerce from Mexico to Southlake, and elsewhere, with the intent to kill, injure, harass and intimidate Mr. Chapa, and as a result of that travel, Mr. Chapa was killed. In addition, from approximately May 23, 2013, until September 5, 2014, Cepeda-Cortes took steps to destroy evidence on his computer related to the investigation.
The defendants were acting on orders from a man in Mexico, Rodolfo Villarreal Hernandez, known as “El Gato,” or “the Cat,” who wanted Mr. Chapa killed as revenge for his father’s murder. Over the course of the conspiracy, Ledezma-Campano and Ledezma-Cortes received money from Ledezma-Cepeda to pay for their expenses. Ledezma-Cepeda was paid by “El Gato.”
Ledezma-Cepeda asked his son, Ledezma-Campano, to assist in the search. Ledezma-Campano used his skill with electronic devices to assist in the search, and he created email accounts for Ledezma-Cepeda and “El Gato” to communicate with each other.
The defendants exchanged information via email to locate Mr. Chapa – exchanging personal information about Mr. Chapa and his family as well as information regarding vehicles associated with them and photographs of the Chapa residence in Southlake.
The defendants used various means to locate and track Mr. Chapa and members of his family. Cepeda-Cortes purchased surveillance cameras that were placed in various locations in Mr. Chapa’s neighborhood. In addition, while in the area, the defendants purchased and rented several vehicles that allowed them to frequently change vehicles and use non-descript rental vehicles to avoid detection by Mr. Chapa and his family. They placed automobile tracking devices not only on their own vehicles, but on vehicles owned and operated by Mr. Chapa and his relatives, including the Range Rover Mr. Chapa was in when he was murdered.
After the defendants located Mr. Chapa, “El Gato” sent two assassins from Mexico to Southlake to kill him. Ledezma-Campano met the two, whom he identified as “Clorox” and “Captain,” and concluded they were sent to kill Mr. Chapa. One of the men was, in fact, the gunman who killed the victim on May 22, 2013, and the other drove the Toyota Sequoia.
On the day of the murder, Ledezma-Campano and Ledezma-Cepeda followed the victim around Southlake, and that afternoon, while the victim’s Range Rover was parked in a Walmart parking lot, Ledezma-Campano and Ledezma-Cepeda switched the tracking device on the Range Rover.
At approximately 6:00 p.m. on May 22, 2013, Mr. Chapa and his wife drove to Southlake Town Square. Ledezma-Campano and Ledezma-Cepeda, who had been parked near Chapa’s home, followed them. Mr. Chapa parked in his regular parking spot near a yogurt store, and Ledezma-Campano and Ledezma-Cepeda parked directly across from them and used binoculars to watch them.
As they waited, Ledezma-Cepeda was in regular contact, via Blackberry Messenger, with “El Gato.” Ledezma-Campano saw “Clorox” and “Captain” drive by in a Toyota Sequoia. Ledezma-Campano went into a coffee shop in Town Square and while inside he heard a commotion outside. He returned to Ledezma-Cepeda who told him “they shot him”
Ledezma-Campano and Ledezma-Cepeda waited several minutes as law enforcement responded before leaving the scene. “El Gato” told both of them to stop using the tracking device they carried in their vehicle. The next morning, they returned the rental car and drove directly into Mexico, along the way destroying the phones they had used.
The investigation was led by the FBI and the Drug Enforcement Administration, with assistance from the Southlake Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, US. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), U.S. Customs and Border Protection, Texas Department of Public Safety, Tarrant County Sheriff’s Office, Tarrant County District Attorney’s Office, Fort Worth Police Department and Grapevine Police Department.
Assistant U.S. Attorneys Joshua Burgess and Aisha Saleem prosecuted the case.
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Last Defendant Sentenced in Brazen UH Armored Car RobberyRead the Press Release
HOUSTON – The final defendant in the notable armored car robbery that occurred on the University of Houston (UH) Central Campus exactly three years ago today has been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. Allen Bernard Roundtree, 31, of Houston, pleaded guilty Aug. 6, 2014, to one count of conspiracy to interfere with commerce by robbery and one count of aiding and abetting interference with commerce by robbery.
Today, U.S. District Judge Keith P. Ellison sentenced Roundtree to a total of 108 months in federal prison to be immediately followed by three years of supervised release. He was also ordered to pay a $17,500 fine.
Also convicted were James Van-Gerald Johnson, 33, and Ronald Dean Richards, 26, both of Houston, who pleaded guilty in February and August 2014, respectively. Dezmond Lacraig Edwards, 26, also of Houston, proceeded to trial and was convicted Dec. 11, 2015. All were sentenced earlier this month. Johnson received a sentence of 125 months for his two counts of conviction - aiding and abetting interference with commerce by robbery and brandishing a firearm during and in relation to a crime of violence, while Richards had pleaded to one count of aiding and abetting interference with commerce by robbery and was ordered to serve 60 months in federal prison. Judge Ellison sentenced Edwards to a 130-month-term for conspiracy to interfere with commerce by robbery and one count of aiding and abetting interference with commerce by robbery.
Edwards was a Loomis guard who previously had driven the UH route and had provided inside information about the armored car and the route to Johnson, Richards and Roundtree. Some of the information included the facts that the side door of the armored car was broken and unlatched, making it easy to enter and that the driver was pregnant and would be unarmed.
The robbery occurred exactly three years ago – Dec. 6, 2013 - while students were attending completing final exams. On that day, Roundtree had dropped Johnson off at the campus. While the armored car’s courier was servicing an ATM machine, Johnson entered the armored car, stuck his pistol into the driver’s side and ordered her out of the vehicle. He then jumped in the driver’s seat and drove away. Roundtree followed in a truck. The driver had yelled and alerted the courier who then responded by pursuing the armored car on foot. The courier discharged his weapon, aiming for the armored car’s tire in an attempt to disable it. The armored car did not slow down and was driven to a UH parking garage on campus, where Richards met them in another vehicle to transfer the stolen money. The armored car was abandoned in the UH garage.
The FBI conducted the investigation along with UH police, Texas Rangers and the Houston Police Department.
Assistant U.S. Attorneys Joe Porto, Jennie Basile and Andrew Gould prosecuted the case.
Laredo Judge Sentences Lake Jackson Man for Sexual Enticement of a MinorRead the Press Release
LAREDO, Texas – A 40-year-old man has been ordered to federal prison following his conviction of attempting to entice a minor to engage in unlawful sexual activity, announced U.S. Attorney Kenneth Magidson. Michael James Corsten, of Lake Jackson, pleaded guilty Dec. 15, 2015.
Today, U.S. District Judge Marina Garcia-Marmolejo ordered he serve 180 months in prison. Corsten will also serve 20 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
Corsten had posted a Craigslist ad for individuals interested in “family fun.” Soon after, he began a conversation with someone he thought had a 14-year-old daughter. Numerous times, Corsten mentioned sexual acts he wanted to perform on the fictional daughter. He also sent sexually explicit pictures of his private parts asking for them to be shown to the girl and stated he wanted the child to help him groom other children so that he could sexually assault them.
He soon made arrangements to travel to Laredo for the purposes of having sex with the 14-year-old child. He was arrested Oct. 9, 2015, upon his arrival.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) conducted the investigation. Assistant U.S. Attorney Alfredo De La Rosa prosecuted the case.
Justice Department Requires Alaska Airlines to Significantly Scale Back Codeshare Agreement with American Airlines in Order to Proceed with Virgin America AcquisitionRead the Press Release
Settlement Ensures that Alaska Will Have Incentive and Ability to Vigorously Compete with Larger Airlines
The Department of Justice announced today that it will require Alaska Air Group Inc. to significantly reduce the scope of its codeshare agreement with American Airlines, the world’s largest airline, in order for Alaska to complete its $4 billion acquisition of Virgin America Inc. The department said that these modifications will ensure that Alaska will have the incentive to vigorously compete with American as Virgin does today.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the merger, along with a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit. The merger of Alaska and Virgin would combine the nation’s sixth- and ninth-largest airlines, respectively, to create the fifth-largest U.S. carrier.
“Smaller airlines, such as Alaska and Virgin, provide a critical competitive check on the larger carriers,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “Although this merger offers hope that a strengthened Alaska can be an even stronger competitor than before, because of Alaska’s extensive codeshare agreement with the world’s largest airline, the merger threatened to blunt important competition and reduce choices for consumers. Today’s settlement ensures that Alaska has the incentive to take the fight to American and use Virgin’s assets to grow its network in ways that benefit competition and consumers.”
Alaska and Virgin have both tended to offer lower prices and better service than the larger airlines. However, the complaint alleges that the codeshare agreement, which currently allows Alaska to market American flights on over 250 routes, creates incentives for Alaska to compete less aggressively on routes both carriers serve and to forgo launching new service in competition with American. As a result of these incentives, the complaint alleges that Alaska and American often behave more like partners than competitors.
In contrast to Alaska, Virgin – which has a network that extensively overlaps with American’s network – has competed aggressively with American. In particular, Virgin has vigorously competed with American on 20 nonstop routes served by both airlines. This competition has forced American to offer consumers lower prices and better service on some of the most traveled routes in the country. According to the complaint, the significant head-to-head competition between Virgin and American on these routes is due in part to the fact that Virgin holds essential and scarce assets, including airport gates and takeoff and landing rights known as “slots,” at key American strongholds. Virgin acquired some of these assets, including gates at Dallas Love Field Airport and slots at Washington Reagan National Airport and New York’s LaGuardia Airport, as part of the settlement of the department’s lawsuit challenging the 2013 merger of American and US Airways. The complaint alleges that the extensive codeshare relationship between Alaska and American would cause Alaska to compete less vigorously with American than does Virgin today, resulting in lower quality service and/or higher prices on the routes where Virgin and American currently compete. The complaint also alleges that the codeshare would make Alaska less likely than Virgin to launch new service in direct competition with American.
To address the transaction’s likely competitive harm, the proposed settlement requires Alaska to significantly reduce the scope of the codeshare agreement. Specifically, in order to reduce Alaska’s overall dependence on the codeshare and limit Alaska’s incentives to cooperate with American, the proposed settlement prohibits Alaska and American from codesharing on routes where Virgin and American compete today and on routes where Alaska would otherwise be likely to launch new service in competition with American following the merger. At the same time, the settlement permits Alaska and American to continue codesharing in limited circumstances where it is unlikely to lead to competitive harm and may offer some benefits to consumers. For example, the settlement would permit either airline to rely on the codeshare to serve destinations it would otherwise be unlikely to serve on its own in the near term. The department explained that this last type of codesharing can potentially benefit consumers by extending each carrier’s network and is less likely to lead to anticompetitive harm.
To preserve the competitive benefits brought about by the divestures to Virgin as part of the American-US Airways settlement, the proposed settlement requires Alaska to obtain the department’s approval before selling or leasing any of the gates or slots that were divested to Virgin and expressly prohibits Alaska from transferring any interest in the assets to American. This requirement ensures that American does not directly or indirectly regain control of the assets it divested to Virgin to settle the department’s challenge to the American-US Airways merger.
Alaska is a Delaware corporation headquartered in Seattle. Last year, Alaska flew over 31 million passengers to approximately 112 locations worldwide, taking in more than $5.5 billion in revenue.
Virgin is a Delaware corporation headquartered in Burlingame, California. Last year, Virgin flew over 7 million passengers to approximately 24 locations worldwide, taking in more than $1.5 billion in revenue. Virgin is one of several entities bearing the “Virgin” name pursuant to a licensing agreement with the Virgin Group, which owns approximately 18 percent of Virgin’s outstanding voting common stock. Although other airlines, such as Virgin Atlantic Airways, bear the Virgin name, they operate separately from Virgin America.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Kathleen O’Neill, Chief, Transportation, Energy, and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Alaska-Virgin CIS
Alaska-Virgin Complaint
Alaska-Virgin Explanation
Alaska-Virgin PFJ
Alaska-Virgin Stipulation
Justice Department Releases Videos Highlighting Work of Community Relations ServiceRead the Press Release
The Justice Department’s Community Relations Service (CRS) released three videos today highlighting the impact of their work in Sanford, Florida; Duluth, Minnesota; and Jackson, Mississippi. These videos provide a sample of the successful services provided by CRS and the lasting impact made on communities.
“As the department’s ‘peacemaker’ for community conflicts and tensions, the Community Relations Service has one of the most demanding and critical jobs in the Department of Justice,” said Attorney General Loretta E. Lynch. “By bringing together stakeholders from all walks of life for peaceful dialogue and meaningful cooperation, CRS helps give divided communities a chance to embark on a more hopeful and united path. For over 50 years, they have met the needs of communities across the country with unfailing skill and unflagging dedication. Our nation is a more just and peaceful place because of their efforts, and I want to thank CRS for its outstanding contributions throughout this administration.”
CRS’ involvement in Sanford followed the death of Trayvon Martin in 2012 and focused on building a relationship between faith leaders in the community and the city’s law enforcement. The video features interviews with Sanford’s Mayor, City Manager, the County Sherriff and members of the faith community who highlight CRS’ effort to institute regular meetings to discuss the legal proceedings which ensured open dialogue between law enforcement and local clergy. CRS also negotiated courtroom seating access for faith leaders so that they could gain firsthand knowledge of the trial and disseminate that information – free of misleading rumors – to their congregations and the community at large. In the video, Sanford’s City Manager, Norton Bonaparte, stressed that CRS was there to assist, but remained neutral while working to strengthen trust and facilitate discussions between law enforcement and the community.
CRS went to Duluth in response to a race-related cyber bullying incident involving the dissemination via social media of an offensive image at Denfeld High School. In response, CRS conducted a Student Problem Identification and Resolution of Issues Together (SPIRIT) program. The SPIRIT program brought together more than 100 students, faculty, administrators and community leaders to discuss the inflammatory image as well as larger issues of race and class. In the video, the Principal of Denfeld High School Tonya Sconiers described CRS as a “catalyst for real change,” and encouraged other communities to reach out to CRS before, during and after times of crisis to ease tensions and build trust.
In Jackson, CRS facilitated a training for local law enforcement to help foster a stronger relationship with and better serve the transgender community. Unlike in Sanford or Duluth, CRS’ involvement was not prompted by a particular incident. Rather, leaders in Jackson raised concerns about the relationship between law enforcement and the transgender community, and proactively requested the training to improve understanding and avoid future issues. CRS led the training alongside local transgender community partners, who are shown in the video leading portions of the session. In the video, the local transgender trainers discuss the importance of their inclusion in the training, highlighting that it gave them the chance to speak for themselves and gave law enforcement the opportunity to engage in open dialogue with their community.
CRS was established under Title X of the Civil Rights Act of 1964 to resolve “disputes, disagreements or difficulties relating to discriminatory practices based on race, color or national origin.” It is not an investigatory or prosecutorial agency, and it does not have any law enforcement authority. Rather, CRS works with all parties, including state and local governments, private and public organizations, civil rights groups and local community leaders to uncover the underlying interests of all of those involved in the conflict and facilitate solutions to the community's challenges. Under the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act of 2009, CRS assists communities in developing local mechanisms and community capacity to prevent tension and violent hate crimes from occurring in the future. CRS works in all 50 states and the U.S. territories, and in communities large and small, rural, urban and suburban.
Illegal Alien Charged with Possession of A FirearmRead the Press Release
Federico Sanchez-Bello, 36, of Norristown, PA, was charged today by Indictment[1] with being an illegal alien in possession of a firearm, announced United States Attorney Zane David Memeger. The indictment alleges that on or about September 4, 2016, Sanchez-Bello, a native and citizen of Mexico unlawfully in the United States, possessed a .45 caliber semi-automatic pistol.
If convicted the defendant faces a maximum possible, sentence of ten years imprisonment.
The case was investigated by Homeland Security Investigations (“HSI”) and the Norristown Police Department, and is being prosecuted by Special Assistant United States Attorney Josh A. Davison.
[1]An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Harrisburg Man Convicted of Possession of Crack and of A Firearm in Furtherance of Drug TraffickingRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jwane Johnson, age 28, of Harrisburg, was convicted by a federal jury of possession with intent to distribute crack, possession of a handgun by a convicted felon, and possession of a firearm in furtherance of drug trafficking. The two-day trial was held before United States District Court Judge William W. Caldwell in Harrisburg.
According to United States Attorney Bruce D. Brandler, the jury returned the verdict after approximately two hours of deliberation. The jury found that Johnson attempted to distribute crack near the Allison Hill section of Harrisburg on December 8, 2015 and when the sale was interrupted by Harrisburg Police, he fled leaving behind a 9mm semi-automatic handgun. He was later arrested near the same area on January 2, 2016, while in possession of crack cocaine that the jury found he intended to distribute.
The matter was investigated by the Harrisburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorneys Scott R. Ford and Joseph J. Terz.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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 for this offense is up to life in prison, 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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Former Treasurer of Labor Union Sentenced for Embezzling Union Dues and Filing False Report with Department of LaborRead the Press Release
Jeffrey Magelitz, 44, of Chester, Illinois, was sentenced to two years of probation, six months of home detention and 100 hours of community service as a result of his convictions in a two-count Indictment that charged embezzlement and theft from a labor union and for filing a false report with the Department of Labor, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Magelitz made complete restitution prior to being sentenced. Magelitz was the former treasurer of the American Federation of State, County and Municipal Employees, Local 415 in Vienna, Illinois from January of 2012 through June of 2013. AFSCME Local 415 represents employees at the Vienna Correction Center, located in Vienna, Illinois. Magelitz embezzled approximately $30,000 and prepared and cashed unauthorized checks for himself and forged the signatures of the president and vice-president of the union on the checks. Magelitz also submitted a false annual report for the union which contained the forged signature of the president and falsely reported the amount of money that he received during the year.
The prosecution is the result of an investigation by the U.S. Department of Labor, Office of Labor Management Standards, with the assistance of the labor union. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Former CEO of Coupon Clearinghouse Convicted of Fraud & Conspiracy to Obstruct JusticeRead the Press Release
United States Attorney Gregory J. Haanstad has announced that on December 5, 2016, Thomas C. Balsiger (63) of El Paso, Texas, was convicted of 12 felony offenses relating to his role in devising and executing a wide-ranging fraud scheme involving retail coupons.
In December 2007, a federal grand jury indicted International Outsourcing Services (IOS), which at the time was the nation’s largest clearinghouse for retail coupons, as well as eleven individuals, including Mr. Balsiger, IOS’s Chief Executive Officer and one of its owners, for allegedly executing a scheme to defraud manufacturers who issued “cents off” coupons for use by consumers as well as to defraud IOS’s own retail clients. The grand jury also alleged that Mr. Balsiger and his codefendants conspired to defraud these entities and further conspired to obstruct the investigation into their activities by: (1) providing false information to federal law enforcement; (2) providing false information to retail clients who had received grand jury subpoenas; (3) attempting to persuade individuals to provide false information if contacted by law enforcement; (4) suing and threatening to financially harm IOS employees who cooperated with law enforcement; and (5) concealing and destroying records to prevent their discovery by law enforcement.
Following the trial, which lasted over a month, United States District Judge Charles N. Clevert, Jr. convicted Mr. Balsiger of 10 counts of wire fraud and one count of wire fraud conspiracy, each of which carries a maximum penalty of up to 20 years in prison. Mr. Balsiger also was convicted of conspiring to obstruct justice, which carries a maximum penalty of 5 years in prison. Mr. Balsiger also faces a potential restitution order.
Judge Clevert has set Mr. Balsiger’s sentencing for March 6, 2017.
The case was assigned to Assistant United States Attorneys Richard G. Frohling, Kelly B. Watzka, Stephen A. Ingraham, and Zachary J. Corey for prosecution. The case was investigated by the Federal Bureau of Investigation.
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Florida Woman Guilty of Interstate Stolen Credit Card SchemeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carol Watts, age 44, of Ft. Lauderdale, Florida, pleaded guilty today before United States District Court Judge John E. Jones, III, to conspiring to use stolen credit cards.
According to United States Attorney Bruce D. Brandler, Watts conspired with others to use stolen credit cards to purchase electronic merchandise and gift cards from stores in central Pennsylvania, such as Target and Best Buy. The co-conspirators engaged in this conduct for approximately eight months from 2014 to 2015. Miller and her co-conspirators travelled from Florida to Pennsylvania breaking into cars to steal credit cards and identification documents in order to buy iPads, iPods, MacBooks and other electronic merchandise and gift cards. The total loss as a result of the scheme is estimated to be $179,500.
The case was investigated by the Harrisburg Resident Office of the United States Secret Service, the Lower Paxton Township Police Department, and numerous other law enforcement agencies. Assistant United States Attorney William A. Behe is prosecuting the case.
The maximum penalty under federal law for this offense is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Five Plead Guilty to Kidnapping, Cocaine and Heroin Distribution, and/or Firearm Offenses in Case Where Numerous Shots Were Fired at Ennis Police Officer During High Speed PursuitRead the Press Release
DALLAS — Five defendants have pleaded guilty to kidnapping, cocaine and heroin distribution, and/or firearm offenses in a case related to the attempted kidnapping of an individual because of an unpaid drug debt. Today, Melissa Trevino, 23, pleaded guilty before U.S. Magistrate Judge Paul D. Stickney to one count of conspiracy to commit kidnapping. She is the last of five defendants to enter guilty pleas in the case. Today’s announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
Trevino, faces a maximum statutory penalty of life in federal prison and a $250,000 fine. Sentencing is set for March 23, 2017.
Four other defendants charged in the case also recently pleaded guilty. One remaining defendant charged in the case, Jonathan Benitez, remains a fugitive.
Javier Martinez, 24, of Lancaster, Texas, pleaded guilty on November 15, 2016, to several felony offenses: one count each of conspiracy to commit kidnapping; possession with intent to distribute cocaine; possession with intent to distribute heroin; using, carrying, and brandishing a firearm during or in relation to a crime of violence; and possession of a firearm in furtherance of a drug trafficking crime. While Martinez faces a statutory maximum sentence of life in federal prison and a $2.75 million fine, if the Court accepts the plea agreement between the government and the defendant, Martinez should receive a total sentence of 40 years in federal prison. Sentencing is set for March 2, 2017.
Maria Guadalupe Bello, 22, pleaded guilty on November 1, 2016, to one count of conspiracy to possesses heroin with the intent to distribute it. She faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Sentencing is set for February 16, 2017.
Jose Cardenas Aguirre, 25, pleaded guilty on October 25, 2016, to one count of conspiracy to commit kidnapping. He faces a maximum statutory penalty of life in federal prison and a $250,000 fine. Sentencing is set for February 9, 2017.
Indolfo Martinez, 47, who is Javier Martinez’s father, pleaded guilty on October 18, 2016, to one count of possession of cocaine with the intent to distribute. He faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Sentencing is set for February 2, 2017.
According to documents filed in the case, on July 12, 2016, Javier Martinez, along with co-defendants Jose Cardenas Aguirre and Melissa Trevino, planned to kidnap another individual because of an unpaid drug debt involving cocaine. During the planned kidnapping, Javier Martinez and Aguirre wore ballistic vests and black camouflage clothing. The kidnapping was unsuccessful, and as Javier Martinez, Aguirre, and Trevino fled the scene, they were engaged in a high-speed chase with officers with the Ennis Police Department. During this pursuit, Javier Martinez, using an AR-156 style rifle, fired numerous shots at a police officer. Javier Martinez led, supervised, and organized this planned kidnapping. Trevino also worked with Javier Martinez in selling illegal narcotics.
Between December 2015, and continuing to July 2016, Javier Martinez conspired to possess with intent to distribute cocaine and heroin. On February 5, 2016, Javier Martinez possessed a firearm in furtherance of these drug trafficking crimes.
Indolfo Martinez was his son’s cocaine supplier. In July 2016, Indolfo Martinez met with an individual and offered to sell that individual a kilogram of cocaine for $28,300. In the same conversation, Indolfo Martinez offered to sell three kilogram of cocaine to that individual for a reduced price of $28,000 per kilogram. During that conversation, Indolfo Martinez instructed this other individual, the purported cocaine purchaser, to use the code phrase, “horses with saddles,” when referencing cocaine.
In addition, according to the factual resume, on January 7, 2016, Javier Martinez sold another individual one ounce of heroin and offered to sell that same individual one kilogram of heroin for $40,000. During that same conversation, Javier Martinez offered to sell the same individual an AK-47 for $7,000 and an AR-15 rifle for $1,500. On April 11, 2016, Javier Martinez and Bello, who were involved in a romantic relationship since October 2015 and had lived together since January 2016, sold three ounces of heroin and two AR-15’s to another individual; these drug and gun sales took place at Javier Martinez’s residence.
The case was investigated by the Ennis Police Department and the FBI’s Violent Gang Taskforce. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Five Methamphetamine Traffickers Sentenced to PrisonRead the Press Release
STATESVILLE, N.C. – Late yesterday, U.S. District Judge Richard L. Voorhees handed down lengthy prison terms ranging from 106 to 135 months to five methamphetamine traffickers, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
The five defendants were sentenced are:
- Juan Ernesto Ortiz-Rodriguez, 30, of Statesville, N.C., was sentenced to 135 months, followed by five years of supervised release. (5:15-cr-73)
- Paul William Miles, 31, of Conover, N.C., was sentenced to 120 months, followed by five years of supervised release. (5:15-cr-77)
- Daniel Verbsky Vandervelde, 41, of Conover, was sentenced to 120 months, followed by five years of supervised release. (5:16-cr-37)
- Jerrod Michael Benfield, 35, of Hiddenite, N.C., was sentenced to 120 months, followed by five years of supervised release. (5:15-cr-73)
- Jonathan Daniel Hatfield, 38, of Lenoir, N.C., was sentenced to 106 months, followed by five years of supervised release. (5:16-cr-3)
All of the defendants were charged as part of the Western District’s ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation, “Dixie Crystal.” According to court documents, since the beginning of the investigation in 2015, 123 individuals have been prosecuted federally as a result of this investigation. Court records show that the drug trafficking organizations involved, have trafficked methamphetamine worth millions of dollars. Over the course of the investigation, law enforcement seized far in excess of 20 kilograms of crystal methamphetamine, $100,000 in U.S. currency and other assets, and dozens of firearms.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Rose thanked ICE’s Homeland Security Investigations (HSI); the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; the North Carolina State Bureau of Investigation; the North Carolina State Highway Patrol; the Alexander County Sheriff’s Office; the Alleghany County Sheriff’s Office, the Ashe County Sheriff’s Office, the Boone Police Department, the Burke County Task Force, the Caldwell County Sheriff’s Office, the Catawba County Sheriff’s Office, the Hickory Police Department, the Iredell County Sheriff’s Office, the Lenoir Police Department, the Lincoln County Sheriff’s Office, the Mooresville Police Department, the Pineville Police Department, the Statesville Police Department, the Wilkes County Sheriff’s Office, and other law enforcement agencies throughout North Carolina and Texas, Georgia, and Tennessee for their assistance in this investigation.
The prosecution is being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Essex County, New Jersey, Man Charged with Bank Robbery Spree in Essex and Hudson CountiesRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man was charged today with robbing five banks from late October 2016 through November 2016, U.S. Attorney Paul J. Fishman announced.
Jermaine Mason, a/k/a “Asim Harris,” 39, is charged by criminal complaint with five counts of bank robbery. Prior to his arrest, Mason was on federal supervised release for a federal bank robbery conviction after he robbed several banks in 2006 and 2007. His initial appearance will be scheduled at a later date.
According to the complaint filed today, Mason robbed the following New Jersey banks:
Bank
Location
Date
Kearny Bank
Harrison
Oct. 21, 2016
PNC Bank
Jersey City
Nov. 3, 2016
Popular Community Bank
Newark
Nov. 17, 2016
Provident Bank
Jersey City
Nov. 18, 2016
Provident Bank
Kearny
Nov. 29, 2016
At each bank, Mason either presented a note demanding cash from bank tellers or verbally demanded money. For example, during the Nov. 3, 2016 robbery, Mason handed the teller a note which read: “I’m not going play [sic] with you. You get one chance. $100 [and] $50 bills pass to me – stack!” Likewise, during the Nov. 17, 2016 robbery, he handed the teller a note reading: “Hand me the money. $100 bills or we [are] going [to] have a problem!”
Mason was apprehended on Nov. 30, 2016, by officers of the Jersey City Police Department, agents from the FBI, and the U.S Marshals.
Each bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI’s Violent Crimes/Interstate Theft Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked the U.S. Marshals, the Kearny, Jersey City, Harrison, and Newark police departments, as well as the Hudson County and Essex County Prosecutor’s Offices for their efforts in the investigation and apprehension of Mason.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Elkins man pleads guilty to unlawful possession of a firearmRead the Press Release
ELKINS, WEST VIRGINIA – Anthony Blackburn, 26, of Elkins, West Virginia, pled guilty today to unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Blackburn, who was previously convicted of a misdemeanor offense of “Domestic Battery” in Randolph County, admitted to possessing a .9mm pistol and a .380 caliber pistol in April 2016. He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Detroit One Collaboration Leads to Indictment of Nine Additional Gang Members on Racketeering and Murder ChargesRead the Press Release
The collaboration of local, state and federal law enforcement under the Detroit One initiative has resulted in the indictment of nine more members of the 6 Mile Chedda Grove street gang from Detroit’s east side, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement was Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division, and Chief James Craig, Detroit Police Department.
The initial indictment in June charged Edwin Mills and Carlo Wilson with murder in aid of racketeering for the mid-afternoon shootings that occurred at the Troester Market on December 1, 2015, that resulted in two deaths and serious injuries to children. The superseding indictment unsealed today adds nine more defendants and charges racketeering conspiracy, additional murders in aid of racketeering and related offenses. Two additional murders charged in the superseding indictment also occurred in broad daylight on February 7, 2015, and August 20, 2015.
According to the superseding indictment, “6 Mile Chedda Grove” is a street gang that operates primarily within an area bordered roughly by East McNichols Road to the north, Kelly Road to the east, Houston-Whittier Street to the south, and Chalmers Street to the west. The superseding indictment alleges that 6 Mile Chedda Grove is a violent organization responsible for murders, assaults, robberies, and firearms and narcotics trafficking in the Detroit metropolitan area and in other states. The gang allegedly uses violence to retaliate against rivals, to intimidate witnesses and to advance members’ positions within the gang.
Under the Detroit One initiative, and through the lead efforts of the FBI’s Violent Gang Task Force and the Detroit Police Gang Intelligence Unit, law enforcement identified several members of this gang who have been charged in the superseding indictment in federal court. The Task Force includes representatives of the Detroit Police Department, Michigan Department of Corrections and the U.S. Border Patrol.
Four defendants were taken into custody over the last two days on this indictment:
- Mario Leico Jackson, a/k/a “Ugg,” 23, of Detroit, charged with racketeering conspiracy;
- Phillip Glen-Earl Peaks, a/k/a “Peezy,” 28, of Detroit, charged with racketeering conspiracy;
- Michael Richardson, a/k/a “Mikey Made,” 28, of Detroit, charged with racketeering conspiracy, felon in possession of a firearm, possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime;
- Devontae Aaron Russell, a/k/a “Tae,” 23, of Knoxville, Tennessee, charged with racketeering conspiracy.
Seven other defendants are already in federal or state custody based upon other charges, including:
- Edwin Lamont Mills, a/k/a “Ed Boy,” 26, of Detroit, charged with racketeering conspiracy, and two counts each of murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, and using and carrying a firearm during a crime of violence causing death;
- Carlo Dajuan Wilson, a/k/a “Los,” 23, of Warren, charged with racketeering conspiracy, and two counts each of murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering and using and carrying a firearm during a crime of violence causing death;
- Donell Christopher Thompson, a/k/a “Dnell,” 26, of Detroit, charged with racketeering conspiracy, and one count each of murder in aid of racketeering and using and carrying a firearm during a crime of violence causing death;
- Lomnil Bookies Jackson, a/k/a “Lomo,” 23, of Detroit, charged with racketeering conspiracy, and one count each of murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering and using and carrying a firearm during a crime of violence causing death;
- Patrick Jeffrey Johnson, a/k/a “Cane,” 22, of Detroit, charged with racketeering conspiracy;
- Corey Alexander Mills, 22, of Detroit, charged with racketeering conspiracy;
- Robert Wayne Baytops, a/k/a “R.B.,” 41, of Detroit, charged with racketeering conspiracy and felon in possession of firearms.
"The Detroit One strategy to dismantle violent gangs has two key components -- enforcement operations like this one and intervention through the Ceasefire call-in program, stated U.S. Attorney McQuade. “The Detroit One enforcement efforts target street gangs that are responsible for violence in our neighborhoods. We have seen encouraging results, including a 35 percent reduction in shootings in Detroit’s 9th Precinct, where this gang operates."
“We are extremely proud of the outstanding work done today by our agents and law enforcement partners, which is the result of long-term efforts to counter violent crime, illegal drugs, and organized criminal activity,” said David P. Gelios, Special Agent in Charge of the Detroit Field Office. "The continued success and impact of the Detroit One Initiative is persuasive evidence of how interagency collaboration results in tangible public safety benefits to the citizens we serve in the Detroit metropolitan area."
"The people of Detroit deserve a safe city in which they may thrive," said Chief James E. Craig. "The Detroit One partnership is rooted in the belief that all citizens and neighborhoods deserve to be free of crime and our joint efforts to make that a reality will continue."
Detroit One is a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working collaboratively, local, state, and federal law enforcement is striving to maximize its ability to identify and arrest the individuals and groups initiating the violence in Detroit. This indictment is the latest in a string of charges from the U.S. Attorney’s Office and Wayne County Prosecutor’s Office during the last four years involving violent street gangs in the city of Detroit, including:
- 17 members of the Seven Mile Blood street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- Nine members of the Bounty Hunter Bloods street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- 13 members of the Latin Counts street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- 14 members of the Phantom Outlaw Motorcycle Club / Vice Lords street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- Four Vice Lord members in state court for armed robbery and a Vice Lord leader charged under the federal street gang statute for his role in that armed robbery;
- Nine Vice Lords members for racketeering charges stemming from the shooting of four individuals at their family residence on Detroit’s northwest side;
- Three members of the Band Crew street gang charged under the state of Michigan gang felony statute for violent acts in furtherance of their gang activities and eight members of the Band crew for federal racketeering conspiracy and other violent acts in furtherance of racketeering; and
- 10 members of the RTM street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- 24 individuals on drug conspiracy charges for their use of sixteen different houses in the east side Ravendale neighborhood of Detroit, many of them abandoned homes, for distributing heroin, cocaine, and crack cocaine between 2013 – 2015
- 14 individuals on criminal enterprise, drug distribution or weapons offense for drug distribution in the west side Warrendale neighborhood of Detroit
Most significantly, Detroit has seen a reduction in the overall violent crime rate every year since the Detroit One collaboration began in 2013.
Mario Jackson and Michael Richardson will appear in federal court in Detroit this afternoon. The other defendants will appear in federal court on later dates.
A superseding indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Delaware Man Sentenced to Ten Years for Passing Forged Oxycodone PrescriptionsRead the Press Release
Yesterday, a federal judge sentenced Khar Abdulah, 40, of New Castle, Delaware to ten years in prison for his role in schemes to distribute oxycodone, commit health care fraud and commit aggravated identity theft, announced United States Attorney Zane David Memeger. The Honorable Paul S. Diamond, United States District Judge, also ordered Abdulah to pay full restitution to the health care benefit programs that the defendant and his co-conspirators had defrauded, and further ordered Abdulah to serve three years of supervised release upon his release from prison.
On March 18, 2016, a grand jury in Philadelphia returned a second superseding indictment charging Abdulah and a codefendant with conspiring to distribute oxycodone, a Schedule II controlled substance, conspiracy to commit health care fraud and aggravated identity theft. From March 2012 until August 2013, Abdulah forged prescriptions for oxycodone, filled them at pharmacies using stolen health insurance information, then sold the pills on the street. On August 16, 2016, Abdulah pleaded guilty to all charges against him in the indictment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Mary E. Crawley.
Cross Lanes carjacker sentenced to 10 years in prison for crime spree resulting in multiple federal chargesRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man was sentenced today to a total of 10 years in federal prison for carjacking and a drug crime, announced United States Attorney Carol Casto. David Allen Young, 24, previously pleaded guilty to two counts of carjacking and one count of conspiracy to distribute methamphetamine. Young was sentenced to 10 years on each count and the sentences will be served concurrently.
Young admitted that from summer 2014 through January 2016, he was part of a large-scale methamphetamine trafficking network. During that time period, he received at least 40 pounds of crystal methamphetamine from his sources and distributed it to individuals in and around Kanawha County.
Young further admitted that on January 24, 2016, he stole a Ford Expedition in Putnam County and fired a shot at an occupied vehicle in St. Albans. Later that same day, Young approached a Ford Edge SUV on foot near the intersection of Big Tyler Road and Waycross Drive in Cross Lanes. Young pointed a 9 mm handgun at a man occupying the SUV and ordered him to get out of the vehicle. The man complied and Young got into the Ford Edge and drove away. Young drove until he approached a Chevrolet S-10 truck in Cross Lanes occupied by another man and his juvenile son. Young pointed the same handgun at those individuals and ordered them out of the truck. Young then got into the truck and drove to the Dalewood Trailer Park in Cross Lanes. He shot through the glass door of a residence in the trailer park and stole a television, which he intended to trade for drugs. Young was arrested on January 26, 2016.
The investigation into the drug conspiracy was handled by the FBI and the Charleston Police Department’s Special Enforcement Unit. The carjackings were investigated by the Kanawha County Sheriff’s Department. Assistant United States Attorney Haley Bunn is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat 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. This case was also brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Crip Gang Members Sentenced in Gas Station Robbery SpreeRead the Press Release
Montgomery, Alabama – Tremane Darnell Carthen (37), Kevin Levarius Martin (27), and Scottie Jeroma Groce (26), all from Montgomery have been sentenced for their participation in a series of armed convenience store robberies, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. Yesterday, U.S. District Judge Kristi K. Dubose, sentenced Martin to 13 years incarceration, followed by five years of supervised release. Groce and Carthen each received a sentence of 57 years and one month in jail, followed by five years of supervised release.
Carthen, Martin and Groce were all either members of, or associated themselves with, the Crip street gang and in July of 2014, went on a crime spree in North Elmore County, Wetumpka, and Autauga County.
Carthen, Martin, and Groce were indicted in November of 2015 for conspiracy, robbery, and gun charges. These charges arose out of the three robbing the Chevron Service Station on U.S. Highway 31 North in Prattville, the Chevron Service Gas Station located on Alabama Highway 143, in Elmore County, and the Marathon Service Gas Station located on Coosa River Parkway in Wetumpka. In August of 2016, Kevin Martin pleaded guilty to conspiracy, robbery, and pointing a gun at the victims during the robbery. In September of 2016, Groce and Carthen, were tried and found guilty by a jury of conspiring with Martin to rob the three convenience stores, robbing the convenience stores, and pointing firearms at the victims while committing the robberies.
“People should be free from the fear of violence in their homes and businesses,” stated U.S. Attorney Beck. “One goal of my office has been and will continue to be vigorously prosecuting those violent criminals who victimize our citizens and to remove those illegal gun toters from the streets. These lengthy sentences should give pause to those hoodlums who dare invade our homes and businesses.”
“This investigation will have a lasting impact on reducing firearms-related gang violence in the tri-county area,” stated ATF Montgomery Resident Agent in Charge Jennifer Rudden Conway. “The ATF Montgomery Field Office will continue to work closely with our counterparts in combating violent crime in the Middle District of Alabama,”
The case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Elmore County Sheriff’s Office, the Autauga County Sheriff’s Office, the Alabama Department of Forensic Sciences, the Montgomery County Sheriff’s Office, the Wetumpka Police Department, and the Alabama Department of Corrections. This case was prosecuted by Assistant United States Attorneys Susan R. Redmond and Steven Lee.
Clarkdale Man Sentenced to Federal Prison for Sexual AbuseRead the Press Release
PHOENIX – Yesterday, Derek Anson Beecher, 33, of Clarkdale, Ariz., a member of the Yavapai-Apache Nation, was sentenced by U.S. District Judge G. Murray Snow to 87 months in federal prison, followed by a term of lifetime supervised release. Beecher had previously pleaded guilty to sexual abuse.
In early 2016, Beecher caused a minor victim to engage in a sexual act. The incident occurred on the Yavapai-Apache Nation Indian Reservation.
The investigation in this case was conducted by the Yavapai-Apache Nation Police Department and the Federal Bureau of Investigation. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-8106-GMS
RELEASE NUMBER: 2016-099_Beecher
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Canton man faces child pornography chargesRead the Press Release
Matthew Ungashick, 39, of Canton, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
The indictment charges that on or about July 25, 2016, Ungashick knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. The indictment also charges that on or about November 3, 2016, Ungashick possessed a two external computer hard drives and numerous computer disks, each of which contained child pornography.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum. This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan.
The case was investigated by the Canton office of the Federal Bureau of Investigation and the Canton Police Department. An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Canadian Deputy Health Minister Impersonator Sentenced to 60 Months’ Imprisonment in $26 Million Fraud SchemeRead the Press Release
BROOKLYN, NY – Earlier today, Howard Leventhal, the President, Chief Executive Officer and Chief Technology Officer of mHealth Technologies Corp., formerly named Neovision USA, Inc. (Neovision), was sentenced by United States District Judge Brian M. Cogan to 60 months’ imprisonment. In December 2013, Leventhal had pleaded guilty to wire fraud and aggravated identity theft for defrauding and attempting to defraud a number of individuals and entities of millions of dollars by falsely claiming that Neovision had a lucrative contract with Canada’s Department of Health (Health Canada) and for stealing the identity of Glenda Yeates, Health Canada’s former Deputy Minister of Health. As part of the sentence, Leventhal was also sentenced to 3 years’ supervised release and ordered to pay $1,350,819.78 in forfeiture and restitution.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Leventhal used his considerable imagination, non-existent technology, and stolen identities to deceive a number of entities and individuals. Fortunately for investors, his alternate reality, propped up by fabricated bank documents, unraveled and collapsed when he attempted to defraud an undercover FBI agent. Today’s sentence sends a strong message to those who use lies and deceit to defraud investors that they will be held accountable for their crimes,” stated United States Attorney Capers. Mr. Capers expressed his appreciation to the FBI for their hard work and dedication over the course of this investigation and prosecution and thanked the Royal Canadian Mounted Police (RCMP) and Health Canada for their significant cooperation and assistance in the investigation.
“Stranger than fiction truly applies in this case with the subject using a popular sci-fi movie as the inspiration to scam millions of dollars from people. He also forged the signature of the Canadian deputy health minister, which not many people would question as legitimate. The FBI and our law enforcement partners do all we can every day to stop these fraudsters, but we can’t do it alone. This investigation serves as a warning to anyone thinking about investing any of their money, do the research and if everything doesn’t add up, we need them to call us,” stated FBI Assistant Director-in-Charge Sweeney.
According to court filings and facts presented at the sentencing hearings, Leventhal told potential investors that Neovision had written agreements with Health Canada, whereby Neovision would provide Health Canada with “Heltheo’s McCoy Home Health Tablet,” a device ostensibly named after the fictional Dr. Leonard McCoy of TV’s Star Trek series.[1] The written agreement provided by Leventhal to potential investors was purportedly signed by Glenda Yeates, Canada’s former Deputy Health Minister, on behalf of the government of Canada. For example, in May 2012, Leventhal used this agreement and entered into a factoring agreement with Paragon Financial Group, Inc. (Paragon”, a Florida company, whereby Paragon advanced Neovision $800,000 in exchange for Paragon’s right to collect a larger sum of money purportedly owed to Neovision by Health Canada. Leventhal also used the purported agreement with Health Canada to solicit more than $26 million from other potential investors, including an undercover law enforcement agent posing as a high net worth individual.
Contrary to Leventhal’s representations, (1) there was no agreement between Health Canada and Neovision, (2) Health Canada did not owe Neovision any money, and (3) Deputy Health Minister Glenda Yeates’ signature on the agreement was a forgery. To conceal his scheme, Leventhal assumed the identities of Health Canada representatives, including that of former Deputy Health Minister Glenda Yeates. Further, Leventhal created and used domain names, telephone numbers, and email addresses that closely resembled those actually used by Health Canada. For example, Leventhal created and used healthcanada.com.co and hc-sg-gc.ca in place of Health Canada’s true domain name hc-sc.gc.ca.
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The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Winston M. Paes is in charge of the prosecution.
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The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit ww.StopFraud.gov.
The Defendant:
HOWARD LEVENTHAL
Age: 60
Grayslake, IllinoisE.D.N.Y. Docket No. 13-CR-695 (BMC)
[1] Leventhal claimed that Heltheo’s McCoy Home Health Tablet can instantaneously and effectively deliver detailed patient data to physicians and other licensed medical care providers.
Canadian Couple Sentenced to Federal Prison in ‘Secret Shopper’ Mass Marketing Scam that Bilked Victims Across United StatesRead the Press Release
LOS ANGELES – A Toronto couple who were extradited earlier this year to the United States have been sentenced for their roles in a mass marketing scheme that targeted hundreds of victims across the United States with counterfeit checks that accompanied bogus claims they had been selected to become “secret shoppers” at MoneyGram counters inside Walmart stores.
Idris Nuradin 35, was sentenced yesterday afternoon to 27 months in federal prison by United States District Judge Philip S. Gutierrez. In addition to the prison term, Judge Gutierrez ordered Nuradin to pay $110,109 in restitution to 33 victims.
Nuradin’s wife, 34-year-old Habone Gayad, 34, yesterday received a “time served” sentence, which is approximately eight months in custody.
The couple and others mailed out hundreds of letters from Toronto to people across the United States that falsely stated they had been selected to act as secret shoppers at Walmart and MoneyGram, according to court documents. The letters included bogus checks that the victims were instructed to deposit to their own bank accounts. The victims were told to immediately wire most of the proceeds of the checks at MoneyGram counters located inside Walmart stores. The balance of the checks would serve as the payment for the secret shoppers.
However, the solicitations and the checks sent out by Nuradin and his wife were bogus. Since the checks were counterfeit – including checks supposedly issued by Warner Brothers and AEG Live – banks held victims responsible for funds that victims withdrew and wired to the scammers in Canada. In his plea agreement, Nuradin, who pleaded guilty to one count of mail fraud, admitted that he targeted more than 500 victims and intended to cause losses of approximately $1.9 million. The actual losses suffered by identified victims totaled $110,109.
“This case demonstrates that criminals cannot hide in foreign countries and take advantage of Americans without repercussions,” said United States Attorney Eileen M. Decker. “This cruel scheme had a devastating financial impact on many victims who never intended to participate in a crime.”
“The defendants in this case were among an endless amount of criminals operating worldwide who target Americans with fraud schemes disguised as money-making opportunities,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI collaborates with domestic and international law enforcement partners to investigate criminals who exploit the vulnerabilities – and empty the bank accounts – of U.S. victims with convincing schemes."
Robert Wemyss, Inspector in Charge, U.S. Postal Inspection Service - Los Angeles Division, stated: “The U.S. Postal Inspection Service will continue to work with our partners in law enforcement to ensure that the U.S. Postal Service isn’t used as a conduit to defrauding the American consumer. The protection of our citizens is at the cornerstone of our mission.”
This case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, Toronto Police Service in Canada and the Federal Trade Commission.
Nuradin and Gayad were indicted in 2010 and were extradited by Canada in April at the request of the United States Department of Justice.
This case was prosecuted by Assistant United States Attorney Monica E. Tait of the Major Frauds Section.
The FBI has compiled a list of some of the most common scams, as well as tips to help prevent you from being victimized, which is available here: https://www.fbi.gov/scams-and-safety/common-fraud-schemes
Buffalo Woman Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Latifah Donaldson, 24, of Buffalo, NY, who was convicted of maintaining a drug involved premises, was sentenced to time served and two years of supervised release to include six months of home detention by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the prosecution, stated that between January 2013 and April 3, 2013, the defendant allowed her co-defendants to utilize her apartment, which was located on the grounds of the Perry Housing Projects, to manufacture, possess and distribute crack cocaine. As part of this conspiracy, a co-defendant maintained several locations on the grounds of the Perry Housing Projects in Buffalo, including Donaldson’s apartment.
On April 3, 2013, law enforcement officers executed search warrants at 124 Fulton Street and 305 Perry Street during which they recovered over 300 grams of cocaine base and 700 grams of powered cocaine as well as a firearm.
Donaldson was arrested in April 2013 along with 10 others. All defendants have been convicted.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Adam S. Cohen, Special Agent-in-Charge, the New York State Police, under the direction of Major Steven Nigrelli, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Buffalo Man Convicted of 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 Laverne Palmer, a/k/a Poogaloo, 26, of Buffalo, NY, pleaded guilty before Chief U.S. District Court Judge Frank P. Geraci to committing multiple bank robberies. The charges carry a maximum sentence of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that, on six different dates, the defendant robbed or assisted in the robbery of First Niagara and Key Bank branches located in Lancaster, Depew, and Buffalo. During each of the six bank robberies, Palmer, or someone else, passed a hand-written note to the victim tellers which demanded United States currency and, for example, “no sudden movements” or “eye contact.”
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction on the part of Adam S. Cohen, Special Agent-in-Charge, the Lancaster Police Department, under the direction of Chief Gerald Gill, the Depew Police Department, under the direction of Chief Stan Carwile, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
The defendant is scheduled to be sentenced on March 10, 2017, before Judge Geraci.
Blackfoot Man Pleads Guilty to Possession of Homemade BombsRead the Press Release
POCATELLO – Matthew Gage Burgett, 25, of Blackfoot, Idaho, pleaded guilty yesterday in United States District Court to unlawful possession of destructive devices which Burgett designed for use as a weapon, U.S. Attorney Wendy J. Olson announced. Burgett was indicted by a Pocatello grand jury on October 27, 2015.
On September 24, 2015, law enforcement officers served search warrants at Burgett’s residence and found several explosive devices, including four assembled devices with a main charge container and a fuzing system, as well as three partially-assembled devices and explosive material. Burgett admitted that the explosive devices were designed for use as a weapon. Additionally, at the time of the execution of the search warrant, Burgett had previously been involuntary committed to a mental institution and could not possess firearms. Two firearms were also located at Burgett’s residence.
The charge of unlawful possession of destructive devices is punishable by up to 10 years of imprisonment, up to a $250,000 fine, and up to three years of supervised release.
Burgett is scheduled to be sentenced on February 28, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Bingham County Sheriff’s Office, the Blackfoot Police Department, and the United States Department of Homeland Security Investigations, the Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Beaver County Man Charged with Escaping from Renewal CenterRead the Press Release
PITTSBURGH - A former resident of Beaver, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of escape from federal custody, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Jaemere Scott, age 21, currently detained in the Allegheny County Jail, as the sole defendant.
According to the indictment presented to the Court, the defendant was serving part of his federal sentence for theft of firearms from a Federally Licensed Firearms Dealer at the Renewal Center, which is a half-way house. The defendant left the Renewal Center on Aug. 15, 2016, and failed to return.
The law provides for a maximum total sentence of up to five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Marshal Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Barbour County man charged with illegal possession of a firearmsRead the Press Release
ELKINS, WEST VIRGINIA – A Barbour County man has been indicted for possessing firearms while being subject to a domestic violence protective order, United States Attorney William J. Ihlenfeld, II, announced.
Roy Thomas Schroeder, age 46 of Volga, West Virginia, was charged today by a federal grand jury for possessing two.22 caliber revolvers and a .22 caliber rifle after a protective order had issued against him by the Barbour County Magistrate Court. The crime is alleged to have occurred on October 22, 2016.
Schroeder faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The West Virginia State Police, Barbour County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Bahamas Man Sentenced to 5 Years in Prison for Cyber Hacking Scheme to Steal Celebrities’ Personal and Copyrighted InformationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALONZO KNOWLES, a/k/a “Jeff Moxey,” was sentenced today to five years in prison for criminal copyright infringement of scripts of movies and television shows that had not yet aired, as well as theft of personally identifiable information, all of which KNOWLES obtained by hacking into the email accounts of numerous individuals in the entertainment, sports, and media industries. KNOWLES pled guilty on May 9, 2016, before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Alonzo Knowles hacked into the private emails of entertainment and sports celebrities, stole personal information and property, including unreleased movie and television scripts, and attempted to sell them to the highest bidder. For his frightful violation of privacy, Knowles has been sentenced to substantial term of imprisonment.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including the guilty plea:
KNOWLES unlawfully accessed the personal email accounts of numerous individuals in the entertainment, sports, and media industries (the “Victims”). As a result of this hacking scheme, KNOWLES obtained Victims’ copyrighted and confidential documents, including scripts of movies and television shows that had not yet been publicly released, personal identifying information such as Social Security numbers, and private sexually explicit photographs and videos.
Over the course of two weeks in December 2015, KNOWLES and an undercover law enforcement agent (the “UC”) communicated about the stolen materials KNOWLES sought to sell to the UC. KNOWLES claimed to the UC that he had “exclusive content” that was “really profitable” and worth “hundreds of thousands of dollars.” KNOWLES stated that he obtained the material directly from the Victims without their knowledge, and claimed to be able to acquire such material from at least some of the approximately 130 Victims whose email addresses and phone numbers he had in his possession.
On December 21, 2015, KNOWLES met with the UC in New York, New York. During their meeting, KNOWLES described two methods he used to hack each Victim’s email account. The easier method involved sending a virus to the Victim’s computer that would enable KNOWLES to access it. The more difficult method involved KNOWLES sending a false hacking notification to the Victim and asking the Victim for his passcodes. Once KNOWLES had used the Victim’s passcodes to successfully access the Victim’s email account, KNOWLES, unbeknownst to the Victim, would change the settings in the Victim’s email account in order to continue to access to the email account. In order to avoid detection from the Victim, KNOWLES would delete notifications from the email service provider regarding changes to the settings of the Victim’s email account. On December 21, 2015, KNOWLES attempted to sell numerous movie and television scripts and personally identifiable information that he had unlawfully obtained from the Victims to the UC in exchange for thousands of dollars, whereupon KNOWLES was arrested.
KNOWLES possessed a laptop computer in the Bahamas (the “Computer”), which he did not bring to New York in December 2015. According to KNOWLES, the Computer contained confidential information, which he obtained via hacking, relating to various celebrities. KNOWLES intended to sell this confidential information after serving a prison term for the instant offense. After his arrest in December 2015 and before his sentencing, KNOWLES stated in his prison correspondence that he was willing to serve additional time in prison in order to retain the Computer. Pursuant to a Consent Preliminary Order of Forfeiture issued by Judge Engelmayer, KNOWLES produced a laptop computer to a court-appointed receiver, which the receiver concluded was the Computer containing stolen materials at issue in this case. Pursuant to Judge Engelmayer’s order, KNOWLES’s laptop has been subsequently destroyed.
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In addition to the prison term, KNOWLES, 24, of Freeport, Bahamas, was ordered to pay a $200 special assessment. A money judgment in the amount of $1,982.71 was also entered, and the defendant’s right, title, and interest in specific property seized by the Department of Homeland Security – including copyrighted materials, personally identifiable information of others, sexually explicit content of others, an iPad, and a phone – were ordered to be forfeited to the United States.
Mr. Bharara praised the investigative work of the Department of Homeland Security.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Kristy J. Greenberg is in charge of the prosecution.
Authorities Make Multiple Arrests on Grenade ChargesRead the Press Release
McALLEN, Texas – A total of six individuals are in custody following the filing of a criminal complaint alleging the illegal receipt or possession of destructive devices that were not registered in the National Firearms Registration and Transfer Record, annouced U.S. Attorney Kenneth Magidson.
Those arrested include Celin Javier Montoya, 23, Anthony Ozuna, 20, Alfredo Rivera, 24, and Pedro Vega, 40, all of Edinburg; Noe Gonzalez, 19, of San Juan; and Jonathan Sanchez-Torres, 19, a Mexican undocumented alien who was residing in Pharr.
Vega made his initial appearance today, at which time he was ordered into custody pending detention hearing set for Dec. 9. Montoya, who was arrested in Ingleside, will appear before U.S. Magistrate B. Janice Ellington in Corpus Christi, while the remaining defendants are expected in court tomorrow morning before U.S. Magistrate Judge Peter E. Ormsby.
The criminal complaint, filed Dec. 5, 2016, and unsealed today upon the arrests, alleges Ozuna and Rivera were attempting to broker the sale of improvised hand grenades or improvised explosive devices (IEDs). The two men were allegedly acting on behalf of Montoya and Vega. According to the charges, from Nov. 5-11, 2016, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) conducted undercover operations and bought all of the hand grenades Montoya and Vega had available.
During the course of the investigation, ATF and HSI agents discovered Montoya and Vega allegedly obtained the grenades from Gonzalez and Sanchez-Torres. The complaint also alleges that for approximately six months, Gonzalez purchased all of the components necessary to construct dozens of improvised hand grenades, including grenade hulls, spring kits, fuses and black powder, from a combination of online merchants and local stores. The assembled “live” hand grenades were then turned over to Sanchez-Torres to be distributed, according to the allegations.
Each of the defendants is charged with the illegal receipt or possession of a destructive device that is not registered in the National Firearms Registration and Transfer Record. If convicted, they each face up to 10 years in federal prison and a possible $250,000 maximum fine.
ATF and HSI investigated with the assistance of Texas Department of Public Safety, police departments in McAllen and Mission, Customs and Border Protection and Drug Enforcement Administration. Assistant U.S. Attorneys David Paxton and Linda Requenez 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.
Ansonia Man Sentenced to 5 Years in Prison for Illegally Possessing Firearm, Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MARCOS BOYD, 26, of Ansonia, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by three years of supervised release, for being an armed drug dealer.
According to court documents and statements made in court, in January 2015, BOYD absconded from state parole supervision. On November 10, 2015, when members of the U.S. Marshals Service Violent Fugitive Task Force, Ansonia Police and Connecticut Department of Correction parole officers encountered BOYD at a residence on High Street in Ansonia, BOYD climbed out of his second floor bedroom holding a firearm. He then returned inside the house and barricaded himself in a bathroom. A six-year-old child was in the house at the time.
After BOYD surrendered, officers seized a loaded .45 caliber semi-automatic pistol. A search of BOYD’s bedroom also revealed 18.6 grams of heroin, drug packaging materials and $6,763 in cash.
On September 12, 2016, BOYD pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.
BOYD, who has been detained since his arrest, will begin serving his federal sentence after he completes his state sentence in June 2017.
BOYD’s criminal history includes four drug-related felony convictions
This case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Anchorage Insurance Sales Woman Pleads Guilty to Bank Fraud and Aggravated Identity TheftRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman pleaded guilty to federal charges for using personal information from former insurance clients to obtain money from banks under false pretenses.
Kara Hayden, Jr., 51, of Anchorage, pleaded guilty before U.S. District Court Judge Sharon L. Gleason to one count of bank fraud and one count of aggravated identity theft. Hayden is scheduled to be sentenced on March 3, 2017.
According to the plea agreement, from at least October 2014, to December 2015, Hayden applied for seventeen credit cards using the names, social security numbers, and dates of birth of nine different victims without their knowledge or authorization. Hayden successfully obtained two credit cards before the investigation of this case interrupted her scheme. The two credit cards were obtained using the personal identifying information of three of her former insurance clients. Hayden obtained approximately $14,500 in cash and retail goods prior to the discovery of her scheme.
Haden faces a statutory maximum sentence of 30 years in prison and a $1 million fine or both.
Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
U.S. Attorney Loeffler commends the U.S. Postal Inspection Service, and the assistance from the Alaska State Troopers, for the investigation of this case.
Alabama Resident Pleads Guilty to Bank RobberyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on December 6, 2016, George David Treece, 38, Alabama, pled guilty to an indictment charging him with Bank Robbery. Treece faces a term of imprisonment of not more than twenty (20) years, a fine up to $250,000, or both, and a term of supervised release of not more than five (5) years. Treece will also have to pay restitution to the bank for its loss. Treece’s sentencing has been scheduled for March 21, 2017, in Benton, Illinois. Treece has been held without bond since his arrest on a Criminal Complaint on August 29, 2016.
The charge arose when, on August 26, 2016, Treece entered the Farmers State Bank in Central City, Illinois, and demanded money from a bank teller. After the teller removed the money from her drawer and placed it on the counter, Treece took the money and left. Later that day, after being Mirandized, Treece admitted robbing the bank.
The case was investigated by the Central City Police Department, Centralia Police Department, Wamac Police Department, and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Angela Scott.
5 December 2016
Wheeling Island man sentenced for heroin distributionRead the Press Release
WHEELING, WEST VIRGINIA – Justin Thomas Mann, 28, of Wheeling Island, was sentenced to 23 months in prison for distributing heroin, United States Attorney William J. Ihlenfeld, II, announced.
Mann sold heroin in Ohio County, West Virginia in February 2016. He pled guilty in September 2016 to one count of “Distribution of Heroin.”
Assistant U.S. Attorney Randolph J. Bernard and Special Assistant U.S. Attorney Anthony Martin, also of the West Virginia Attorney General’s Office, prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Washington County Man Sentenced to 5 Years for Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Tristan Shaw, age 31, of Granville, New York, was sentenced today to 5 years in prison for receiving child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his August 9 guilty plea, Shaw admitted that between November 26, 2009 and November 26, 2013, he used the Internet and a peer-to-peer file-sharing program to receive approximately 200 still image files containing child pornography.
Senior United States District Judge Gary L. Sharpe also imposed a 25-year term of supervised release, which will start after Shaw is released from prison. As a result of his conviction, Shaw will be required to register as a sex offender after leaving prison.
This case was investigated by HSI and was prosecuted by Assistant U.S. Attorney Rick Belliss.
United States Settles Civil Forfeiture ActionRead the Press Release
U.S. Attorney Christopher "Kip" Crofts announced today that Scott Lewis of Englewood, Colorado, has agreed to forfeit $234,717 to the United States to settle a civil forfeiture action where the United States alleged that the money was drug money earned from the illegal sale of drugs or intended to illegally purchase drugs. As part of the settlement, Lewis did not dispute that the United States had reasonable cause to seize the money. The United States agreed to return $25,000 to Lewis. On November 28, 2016, United States District Court Judge Alan Johnson issued a judgement of forfeiture based on the settlement agreement.
The money and a Cessna airplane were seized from Lewis and Gilbert Wiles, Jr., in Cody, Wyoming, on February 28, 2014, following an investigation of suspected drug trafficking by the Cody Police Department with assistance from the Powell Police Department and the Wyoming Division of Criminal Investigation. The seizures were made under authority of search warrants issued by a Wyoming state court judge.
Following additional investigation by the U.S. Department of Homeland Security and the Drug Enforcement Administration, the United States filed a civil forfeiture complaint on August 1, 2014. The complaint alleged that Wiles and Lewis had purchased the airplane in May 2013 for $130,000 in cash. On February 27, 2014, Lewis and Wiles landed the plane at Yellowstone Regional Airport. After landing, Lewis and Wiles covered the plane’s windows to conceal its interior, paid for fuel and other services with cash, and used a phony name at the airport and to check-in at a local Holiday Inn. As part of the police investigation, a drug detection canine alerted to the odor of controlled substances emanating from the plane. During the later search of the hotel room, police found a blue duffel bag containing $258,520 packaged in 12 vacuum-sealed bags. Officers also found $1,467 in cash in a jacket lying on a dresser. In addition to the money, officers found a number of fake driver’s licenses bearing Lewis’s picture. A review of Lewis’s criminal history showed that he had been convicted of a misdemeanor drug violation in November 2010 in California after Lewis was arrested outside a residence containing 185 pounds of marijuana and over $250,000 in cash. Lewis, who was represented by an attorney from California, responded to the civil forfeiture complaint by filing claims to the plane and money.
The federal investigation also revealed that the airplane had not been registered with the Federal Aviation Administration as required by law following its purchase by Wiles and Lewis in 2013. In a separate criminal prosecution, on January 14, 2016, the grand jury for the District of Wyoming indicted Lewis and Wiles for conspiracy and operating an unregistered aircraft in violation of federal law. Lewis and Wiles pled guilty to the felony crime of operating an unregistered aircraft and were sentenced to probation in June, 2016. As part of these sentences, the district court forfeited the Cessna airplane to the United States. The airplane was then dismissed from the civil forfeiture action.
The settlement agreement which resulted in the forfeiture of $234,717 in drug money ended the civil forfeiture.
U.S. Attorney Tom Beall to Host Diversity Dialogue with Law EnforcementRead the Press Release
WICHITA, KAN. – U.S. Attorney Tom Beall will open a discussion Tuesday in Wichita with local law enforcement agencies on recruiting, hiring and retaining law enforcement officers to better reflect the broad diversity of the communities they serve.
The Diversity Dialogue in Wichita will be part of a national initiative by the Justice Department’s Civil Rights Division and the U.S. Equal Employment Commission (EEOC). The objectives are outlined in an October report called, “Advancing Diversity in Law Enforcement. “The report, which can be accessed here, examines barriers as well as promising practices for advancing diversity in law enforcement.
“We must continue to review our efforts to promote diversity and share what we have learned so far,” Beall said. “Identifying the barriers we face and generating new ideas for cultivating diversity among law enforcement will help strengthen trust and improve policing.”
Michael Birzer, Professor of Criminal Justice and Director of the School of Community Affairs at Wichita State University, will serve as moderator. Topics will include: Barriers to diversity, recruitment, hiring and retention.
Members of the media are invited to talk to key participants starting a half hour before the session and to cover opening remarks. The rest of the meeting will be open only to registered participants.
Event: Diversity Dialogue
Opening Remarks: 1 p.m. Tuesday, Dec. 6, 2016.
Where: Room 180, Eugene Hughes Metropolitan Complex. 5015 E. 29th North, Wichita, Kan.
Two Stanford Residents Admit to Conspiring to Distribute Large Quantities of FentanylRead the Press Release
LEXINGTON, Ky. — Travis B. Preston, 28, and Tiffany L. Griffith, 25, both of Stanford, Ky., pleaded guilty today to conspiring to distribute large quantities of fentanyl.
Preston admitted to conspiring to distribute 40 grams or more of a mixture or substance containing a detectable amount of fentanyl. Griffith admitted to aiding and abetting the distribution of 40 grams or more of fentanyl.
In the course of their guilty pleas, Preston and Griffith admitted possessing approximately 121 grams of fentanyl. The fentanyl was discovered in Griffith’s purse, during a traffic stop that occurred on April 5, 2016, in Lancaster. Fentanyl can be lethal in the two milligram range.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky; Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration; Richard W. Sanders, Commissioner, Kentucky State Police; and Tim Davis, Garrard County Sheriff, jointly made the announcement.
The investigation was conducted by the Drug Enforcement Administration, the Kentucky State Police, and the Garrard County Sheriff’s Office. The United States was represented in the case by Assistant United States Attorney Robert M. Duncan, Jr.
Preston and Griffith are currently scheduled to appear for sentencing before United States Senior District Judge Joseph M. Hood on March 6,2016. Because of a prior felony drug conviction, Preston faces a minimum sentence of imprisonment of 10 years, and maximum sentence of Life imprisonment. Griffith faces a mandatory minimum sentence of not less than 5 years and not more than 40 years imprisonment. However, any sentence imposed by the court would come after consideration of the United States Sentencing Guidelines and the applicable federal statutes.
Two Huntington dealers headed to federal prison for drug crimesRead the Press Release
HUNTINGTON, W.Va. – Two Huntington dealers were sentenced today to federal prison for drug crimes, announced United States Attorney Carol Casto. Jerrell Leon Johnson, 53, was sentenced to five years in federal prison for possession with intent to distribute 28 grams or more of crack. In a separate prosecution, Ashley Nicole Farley, 25, was sentenced to three and a half years in federal prison for possession with intent to distribute heroin.
On January 20, 2016, members of the Drug Enforcement Administration conducted a search of Johnson’s residence located at 709 Rear 9th Avenue in Huntington. During that search, agents located approximately 48 grams of crack inside a kitchen drawer. Johnson admitted that he intended to sell the crack seized by law enforcement.
In a separate drug prosecution, on August 27, 2015, Farley was arrested on a warrant for distribution of heroin. In a search of Farley incident to her arrest, officers located a gray tan powder and cash. The cash contained marked currency from a previous undercover heroin buy from Farley.
The Drug Enforcement Administration conducted the investigation of Jerrell Johnson. The investigation of Farley was conducted by the Huntington FBI Drug Task Force. Assistant United States Attorney Gregory McVey is handling the prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentences.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including heroin and crack. 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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Two Columbus, Ohio men sentenced for transporting stolen items across state linesRead the Press Release
WHEELING, WEST VIRGINIA – Two men from Columbus, Ohio were sentenced today for transporting stolen goods across state lines, United States Attorney William J. Ihlenfeld, II, announced.
Maurice L. Whyte, II, 23, and Kionte Whatley, 19, were each sentenced to 34 months in prison. Whyte and Whatley conspired to steal smart phones, tablets, head phones, game stations, and computers from Walmart, Target, and Meijer stores in eight different states, including West Virginia and Ohio. The value of the stolen goods are estimated to be in excess of $500,000. They each pled guilty to one count of “Conspiracy to Transport Stolen Goods in Interstate Commerce” in October 2016.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Columbus Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Tribal Firefighter Pleads Guilty to Setting Fires on Indian LandsRead the Press Release
ASHEVILLE, N.C. – Raymond Neal Swayney, 31, of Cherokee, N.C., appeared in federal court in Asheville today and pleaded guilty to intentionally setting fires on Indian lands, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. Magistrate Judge Dennis Howell presided over today’s plea hearing.
According to information contained in filed court documents, the Bureau of Indian Affairs (BIA) has the authority to hire temporary Administratively Determined (AD) Firefighters for emergencies in progress within the boundaries of the Eastern Band of Cherokee Indians (EBCI), including to cope with unexpected emergencies caused by fire or extreme fire potential. The hiring of an AD Firefighter is of uncertain, temporary duration.
Once a fire is assigned a fire code, AD firefighters are paid based upon the number of hours they worked in support of that fire code, which includes not only payment for actual firefighting but also post-fire maintenance of equipment, cleaning trucks, etc.
According to court documents, because AD firefighters are only compensated when they are called in for an active fire code, Swayney and others willfully set several wildland fires on the EBCI reservation, and received compensation for fighting the fires. According to court documents, between March 5, 2010 and February 25, 2014, Swayney and others intentionally set seven fires, which destroyed more than 420 acres of tribal lands and cost over $106,661.98 in BIA funds to extinguish.
Swayney pleaded guilty to one count of conspiracy to set timber afire and to defraud the United States. The charge carries a maximum prison term of five years and a $250,000 fine. Swayney is being held pending sentencing. A sentencing date has not been set yet.
In making today’s announcement, U.S. Attorney Rose thanked the United States Department of the Interior, Office of the Inspector General, for leading the investigation and the Cherokee Indian Police Department, the Swain County Sheriff’s Office, and the Bureau of Indian Affairs for their assistance with the case.
Assistant United States Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, is prosecuting the case.
Three Convicted in Alien Smuggling Case that Resulted in a DeathRead the Press Release
McALLEN, Texas – Three individuals have entered guilty pleas for their roles in a conspiracy to transport illegal aliens within the United States, announced U.S. Attorney Kenneth Magidson.
Antonio Arredondo Jr.,41, of Alamo; and Carlos Valentin Avendano-Lucio, 35, and Nancy Yadira Moreno-Ruiz, 34, both of Mexico, knew that individuals had illegally come to the U.S. and conspired to transport them further within the country. During and in relation to the crime, a female undocumented alien was killed.
The investigation revealed the female victim had been smuggled with a group of undocumented aliens discovered near the Pharr port of entry on Aug. 4, 2014. A foot guide had provided instructions to the group as to how to walk along the bridge and then scale down the bridge. In the process of crossing the bridge, the woman fell off the bridge and sustained severe injuries before being left behind by the group. On Aug. 5, 2014, authorities located a deceased female on the levee near the same port of entry and identified her as the woman who fell off the bridge.
The foot guide, Victor Moreno-Ruiz, 33, of Mexico, previously pleaded guilty and was sentenced on Nov. 23, 2015, to 150 months in prison.
During his guilty plea, Arredondo admitted that on Aug. 4, 2014, he was involved in the conspiracy. His role was to coordinate the smuggling arrangements for at least two of those undocumented aliens, including the deceased woman. Avendano-Lucio admitted he participated in the conspiracy by driving a van loaded with the group of undocumented aliens from Reynosa, Mexico, into Pharr. Nancy Yadira Moreno-Ruiz admitted to participating in the conspiracy by recruiting her husband, Avendano-Lucio, to drive the group of undocumented aliens from Mexico and into the United States.
U.S. District Judge Ricardo Hinojosa accepted the pleas and set sentencing for Feb. 23, 2017. At that time, each faces up to life in prison and a possible $250,000 fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance by Border Patrol, Pharr Police Department and Hidalgo County Sheriff’s Office. Assistant U.S. Attorney Alex Benavides is prosecuting the case.
Tehachapi Resident Pleads Guilty to Bank RobberyRead the Press Release
FRESNO, Calif. — Michael Brian Taylor, 60, of Tehachapi, pleaded guilty today to bank robbery, United States Attorney Phillip A. Talbert announced.
According to his plea agreement and other court documents, on May 24, 2016, at approximately 11:45 a.m., Taylor entered and robbed the Bank of the Sierra in Tehachapi, of approximately $34,000. Taylor entered the bank wearing a ski mask pulled down over his face and yelled loudly, “Hands in the air!” He approached the bank teller, demanded $200,000, and placed a black bag on the counter. Ultimately, he took approximately $34,000 given to him by the teller.
This case is the product of an investigation by the Tehachapi Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Angela L. Scott is prosecuting the case.
Taylor is scheduled to be sentenced by Judge Lawrence J. O’Neill on March 20, 2017. Taylor faces a maximum statutory penalty of 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Plattsburgh Man Admits Illegally Possessing FirearmRead the Press Release
SYRACUSE, NEW YORK – Marc T. Woodley, age 32, of Plattsburgh, New York, pled guilty today to illegally possessing a firearm.
The announcement was made by United States Attorney Richard S. Hartunian; Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) New York Field Division; and Plattsburgh Police Chief Desmond Racicot.
Woodley admitted that he illegally possessed a Mossberg shotgun on June 22, 2015 after he called police to report a burglary at his apartment in Plattsburgh. Responding Plattsburgh Police officers found nearly a pound of marijuana and the shotgun in Woodley’s bedroom. A further search of Woodley’s apartment revealed multiple smoking devices and a digital scale. As a user of a controlled substance, Woodley was prohibited from possessing the Mossberg shotgun.
As a result of his conviction, Woodley faces up to 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when he is sentenced by Chief U.S. District Judge Glenn T. Suddaby on April 6, 2017. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the Plattsburgh Police Department and the ATF, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Pennsylvania Man Sentenced to 30 Months in Prison for Stealing More Than $480,000 as Part of Interstate Burglary SchemeRead the Press Release
TRENTON, N.J. – A Lancaster, Pennsylvania, man was sentenced today to 30 months in prison for his role in a string of commercial burglaries in New Jersey, New York, and Pennsylvania, U.S. Attorney Paul Fishman announced.
Jose Medina, 40, previously pleaded guilty before U.S. District Judge Mary L. Cooper to a superseding information charging him with one count of conspiracy to transport stolen goods in interstate commerce and one count of transportation of stolen goods in interstate commerce. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Jose Medina admitted that from October 2012 through August 2014, he conspired with his brother, Eliezer Medina, 38, of Ronks, Pennsylvania, and others to steal money by burglarizing stores in New Jersey, New York, Pennsylvania, and elsewhere, and thereafter transporting the stolen money across state lines.
The conspiracy involved at least 22 burglaries and caused over $480,000 in losses. When committing the burglaries, the conspirators would typically scout the target store in advance, disable the alarm system, and use pry-bars, electrical saws, and other tools to gain access to the stores and safes.
In addition to the prison term, Judge Cooper sentenced Jose Medina to two years of supervised release. He must also forfeit $487,364.44.
Eliezer Medina previously pleaded guilty to his role in the scheme and was sentenced on Oct. 28, 2015 to 30 months in prison.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Timothy Gallagher, and special agents of the FBI in Philadelphia, under the direction of Special Agent in Charge Michael Harpster, with the investigation leading to today’s sentencing. He also thanked the Paramus, New Jersey; Wayne, New Jersey; and Pennsauken Township, New Jersey, police departments; the N.J. State Police; and the Lancaster City, Pennsylvania; East Lampert, Pennsylvania; Manor Township, Pennsylvania; Manheim Township, Pennsylvania; and East Hempfield, Pennsylvania, police departments for their work on the case.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Criminal Division in Newark.
Defense counsel: Angelo Servidio, Esq.
Ouray Resident Arrested by Federal and State Law Enforcement on Federal Firearm ChargesRead the Press Release
DENVER – Jerome Andre Kimble, age 32, of Ouray, Colorado, was arrested late last week on charges of being a felon in possession of a firearm and ammunition, Acting U.S. Attorney Bob Troyer and ATF Denver Division Acting Special Agent in Charge Ron Humphries announced. The defendant, who is considered a serious threat to law enforcement, was arrested at a Montrose fast food restaurant during the middle of the day.
Kimble was charged by Criminal Complaint on December 1, 2016. He was arrested by federal agents and state and local officers on December 2, 2016. He appeared in U.S. District Court in Grand Junction today, where he was advised of his rights and the charges pending against him. He is scheduled to appear for a detention hearing, also in Grand Junction, on December 8, 2016 at 2:00 p.m.
According to the Affidavit in support of the Criminal Complaint, on July 29, 2016, an Ouray Police Officer received information that Jerome Kimble had taken a firearm to his place of employment. Kimble was showing the firearm to other employees while at work. He also offered it for sale. The officer also learned that Kimble carries the firearm to his second job. During that same time period, Kimble was terminated from his first job. He then made threatening comments toward the businesses’ customers, as well as toward an employee.
On August 1, 2016, the Ouray officer learned Kimble sold the firearm to a male juvenile. On October 31, 2016, the juvenile and his father brought the weapon to the Ouray Police Department and provided written and verbal statements regarding from whom the minor obtained the firearm. Kimble told the minor that he needed money. The firearm was ultimately sold for $180 in cash. The officer also learned that Kimble walked around town wearing an open carry holster with a large black handle pistol.
During the course of the investigation it was determined that Kimble was convicted of two counts of Felony Second Degree Burglary in Santa Clara County, California Superior Court, thus making him a felon in possession of a firearm. Kimble had a previous confrontation with Ouray Police Officers when he was arrested for a motor vehicle charge on October 18, 2016. He then made multiple threats against the investigating officer and other Ouray officers, to include statements that Kimble knew where their spouses work. He then said he would come back as an enemy of the State and would get even with every one of them for putting him in jail again. Kimble was released on a $750 bond.
Due to the multiple serious threats to law enforcement, and the fact the defendant had access to firearms, law enforcement treated his arrest as high risk, utilizing agents and officers from multiple jurisdictions throughout the area. The arrest was executed without incident.
If convicted, Kimble faces not more than 10 years in federal prison, and up to a $250,000 fine.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assisting ATF with the arrest of Kimble included the FBI, U.S. Marshals Service, Colorado Bureau of Investigation, the Ouray Police Department and the Montrose Police Department.
The defendant is being prosecuted by Assistant U.S. Attorney and Grand Junction Branch Office Chief Peter Hautzinger.
The charges contained in the Criminal Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. A Criminal Complaint is a probable cause charging document. Anyone accused of committing a felony violation of federal law has a Constitutional right to be indicted by a federal grand jury.