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10 November 2016
York Man Indicted for Distributing Large QuantitiesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jeff Smith, age 29, of York, Pennsylvania, was indicted on November 9, 2016, by a federal grand jury on drug trafficking charges.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Smith possessed with the intent to distribute over 280 grams of crack cocaine from 2014 through his arrest on October 5, 2016. The distribution of 280 grams or more of crack cocaine carries a mandatory minimum sentence of 10 years in prison.
The case was investigated by the U.S. Drug Enforcement Administration (DEA) and the York City Police Department and is being prosecuted by Assistant U.S. Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is lifetime 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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Wheeling Island man pleads guilty to crack cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Clarence William Bertram, 24, of Wheeling, West Virginia, pled guilty to crack cocaine distribution in federal court today, United States Attorney William J. Ihlenfeld, II, announced.
Bertram pled guilty to one count of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location.” He admitted to selling crack cocaine near Madison Elementary School in Ohio County, West Virginia. He faces up to sixty years in prison and a fine of up to $2,000,000. 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 Randolph J. Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge James E. Seibert presided.
Warden, Washington Man Sentenced to 15 Years in Federal Prison for Production of Child Pornography and Firearm OffensesRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Alfredo Mendoza, age 34, of Warden, Washington, was sentenced today after having previously plead guilty on August 30, 2016, to Production of Child Pornography and to being a Felon in Possession of a Firearm. United States District Judge Salvador Mendoza, Jr. sentenced Mendoza to a 15-year term of imprisonment, to be followed by a ten-year term of court supervision after he is released from Federal prison. In addition, Mendoza will be required to register as a sex offender.
According to information disclosed during the court proceedings, in November 2015, Mendoza was under investigation for his potential involvement in a series of gang-related drive-by shootings that had occurred in Grant County, Washington. Law enforcement officers obtained a search warrant for Mendoza’s residence. Upon executing the warrant, they discovered a loaded 9mm revolver in Mendoza’s bedroom. The firearm was forensically examined and Mendoza’s thumb print was found on it. His cellular telephone was also seized from the bedroom, which telephone was thereafter examined pursuant to a court-authorized search warrant to look for evidence of the earlier gang-related shootings.
When law enforcement officers discovered images of child pornography while examining Mendoza’s phone, they obtained a second search warrant. The officers’ follow-on investigation revealed that Mendoza had directed an underage girl to take pornographic photos of herself and text them to him. He had also created videos of sexual acts with the girl. Some of the images were taken in Mendoza’s bedroom and, in one video, he can be seen setting up the camera. Mendoza knew the victim was a minor at the time. The girl was a friend of Mendoza’s daughter and lived with him for a time.
At the sentencing hearing today, the Judge emphasized that the victim “was a child” and that he was troubled by “the manner in which [Mendoza] manipulated” her. The Judge also stated that Mendoza “had an opportunity to right this ship” and step away from his long history of gang-related violence, telling him “you created this and now you have theability to change.”
Michael C. Ormsby said, “This case is a superb example of the excellent work that can be accomplished when state and federal law enforcement work together. I commend the Grant County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Today’s sentence should serve as a warning that child pornography and firearm offenses will be actively and aggressively pursued by federal and state law enforcement officers.”
This investigation was conducted by the Grant County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Alison L. Gregoire and Allyson Edwards, Assistant United States Attorneys for the Eastern District of Washington.
Utah Man Pleads Guilty in Manhattan Federal Court to Commodities Fraud in Connection with Foreign Exchange TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SCOTT A. BEATTY pled guilty in Manhattan federal court today to commodities fraud in connection with his scheme to defraud at least 49 investors of more than $825,000 through a scheme in which BEATTY solicited investments for off-exchange foreign currency contracts known as “forex.” BEATTY was arrested on April 21, 2016, and pled guilty today before United States Magistrate Judge Sarah Netburn.
U.S. Attorney Preet Bharara said: “Scott Beatty admitted today that he purposely cheated dozens of investors out of hundreds of thousands of dollars. He lied about his abilities to generate returns on foreign exchange investments, and then used investors’ money to pay his own bills and to pay back other investors.”
According to the Complaint, the Information, and other statements made in open court:
From January 2011 through June 2014, BEATTY, through his investment companies Peak Capital Management Group, Inc., and Peak Capital Group, Inc., engaged in a fraudulent scheme to obtain investments from individual investors purportedly for the purpose of trading in forex. In connection with the scheme, BEATTY made a series of false and misleading representations to investors, on a website he created and maintained (the “Website”) and through email, including: (a) that BEATTY was using investors’ funds to conduct forex trading when, in fact, BEATTY used just $125,000 of the $825,00 in investor funds for trading; (b); that BEATTY’s forex trading was generating consistently positive annualized returns as high as 43.9 percent when, in fact, his limited trading was consistently unsuccessful; and (c) that BEATTY had created individual accounts for each investor, in which BEATTY purported to execute forex trading when, in fact, BEATTY failed to create such individualized accounts. In addition to false and misleading representations made on the Website and over email, BEATTY generated wholly fictitious account statements that he provided to his clients through a client portal on the Website.
As a result of these misrepresentations, BEATTY obtained more than $825,000 in investments from more than 49 investors, the majority of whom were Japanese citizens who were not authorized to trade leveraged, margined, or financed forex in individually managed accounts under the Commodity Exchange Act. Of the money he did not lose in commodities trading, BEATTY routinely converted investor funds to his own use in the form of cash withdrawals and debit card purchases, including at least $517,000 for, among other things, BEATTY’s personal expenses such as restaurant bills and retail purchases. In addition, to hide his trading losses and continue to fund his personal lifestyle, BEATTY used new investor funds to pay back other investors in a Ponzi-like fashion. In total, BEATTY distributed approximately $184,000 back to investors.
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BEATTY, 41, of Roy, Utah, pled guilty to one count of commodities fraud, which carries a maximum sentence of 10 years in prison and a maximum fine of $1 million, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. The defendant will be sentenced at a future date by United States District Judge Paul G. Gardephe.
Mr. Bharara praised the work of the Federal Bureau of Investigation and thanked the U.S. Commodity Futures Trading Commission for their assistance with the investigation.
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 www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrea M. Griswold is in charge of the prosecution.
U.S. Attorney’s Office recognizes Western District of Louisiana veteransRead the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La.: United States Attorney Stephanie A. Finley would like to honor the men and women of the Western District of Louisiana and their family members who have served in the U.S. Armed Forces.
Western District of Louisiana employees being honored for their service are:
United States Army - Kevin Bodden, F. Michael Campbell, U.S. District Judge Dee D. Drell, Robert W. Gillespie Jr., U.S. District Judge Richard T. Haik (retired), David C. Joseph, Deborah Ritchey Mahony, C. Vincent Mangum, Joseph T. Mickel, Howard C. Parker, Edward Prokopf, U.S. District Judge Tom Stagg (deceased), Fifth Circuit Chief Judge Carl E. Stewart, Chris Turner and U.S. District Judge Donald E. Walter.
United States Navy - Joseph G. Jarzabek, Daniel J. McCoy and Ryan Turner.
United States Coast Guard - Dennis K. Austin and U.S. Magistrate Judge Patrick Hanna.
United States Marine Corps – Jerry Stanley Hayden and Angelo Iorio.
United Stated Air Force - Mitzie Cochrane, U.S. Attorney Stephanie A. Finley, Samuel W. Glass Sr., John S. Odom Jr., F. Michael O’Mara, Ryan Peck, Charlene Pullum, U.S. District Judge James T. Trimble Jr. and U.S. Marshal Henry L. Whitehorn Sr.
Immediate family members of the personnel in the Western District of Louisiana U.S. Attorney’s Office and U.S. District Court System being honored for their service are:
United States Army – Alan Carpenter, Steven Carpenter, Gerald Champagne, Andrea Doucet, Steven L. Dupont, Garnett L. Gilreath, Doyce Ray Hebert, Eddie Hutchens, Eric Iorio, Shelton Julian, Joseph LeJeune, David A. McBride, Joseph R. Nolan, Michael E. Schaff, Barney W. Skipper and Fritz L. G. Trappey.
United States Navy - Kyle Alwert, Thomas P. Cagney, David Cochrane, Leon Gordon Jones, Joseph R. Namie Jr. and John L. Witt.
United States Air Force - John T. Julian, Russell Pullum and Alan Williams.
United States Marine Corps - Stephen Box, Enoch L. Drost, Will L. Hayden and Richard L. Hayden.
Of those listed above, three have received Purple Hearts and other medals for their actions during various wars. Shelton Julian, the grandfather of Assistant U.S. Attorney Karen King, served in the U.S. Army during World War II. He was assigned to the 92nd Infantry, Buffalo Division. During his service, he received the Purple Heart and one Oak Leaf Cluster. United States District Court Judge Tom Stagg served in the U.S. Army during WWII in Europe from 1944-1946. During his service, he received the Combat Infantry Badge, the Bronze Star for Valor, the Bronze Star for Meritorious Service and two Purple Hearts. Judge Stagg died on June 23, 2015. Steven Dupont, son of FDA Investigator Charles Dupont, served in the U.S. Army from 2008 until 2010 and was stationed at Headquarters and Headquarters Company, 3d Squadron, 2d Stryker Cavalry Regiment at Rose Barracks in Vilseck, Germany. He was assigned to Ghostrider Company as a Forward Observer during Operation Enduring Freedom in Afghanistan. Dupont was killed in action on October 24, 2010, in Rangrizan, Afghanistan. Specialist Dupont was awarded the Bronze Star, the Purple Heart, the NATO Medal and the Combat Action Badge, posthumously. While on active duty, he received the National Defense Service Medal, Afghanistan Campaign Medal, Global War on Terrorism Service Medal, Army Service Ribbon and the Overseas Service Ribbon.
The Purple Heart is given to military members who are wounded or killed in action. The Bronze Star of Valor is awarded for acts of heroism, acts of merit or meritorious service in a combat zone and is the fourth highest combat decoration awarded to military members. The Oak Leaf Cluster denotes subsequent decorations and awards.
“There is no ceremony or monument that can ever show enough gratitude or tell the stories of every member of our military who has given so much in the service to our country,” Finley stated. “Rarely does anyone recount the struggle of the service member who leaves his or her family behind to serve overseas in support of a military operation, the sailor who risks his or her life traveling through dangerous waters for weeks, or the soldier or airman who works sun up to sun down to ensure our country’s safety. Their deeds of heroism will never be fully told, but today we can remember, then we can honor them, and celebrate those who continue to serve this nation with dedication, courage and sacrifice. It is their contributions of time, effort, emotion, patriotism and sometimes even their lives that we can live free. Today is about thank you!”
U.S. Attorney's Office and ATF Announce $500,000 PSN Federal Grant at Morning Press ConferenceRead the Press Release
FORT WORTH, Texas – John Parker, U.S. Attorney for the Northern District of Texas, and William Temple, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives Dallas Field Division, joined Ken Shetter, President of One Safe Place, and Joel Fitzgerald, Fort Worth Chief of Police, at a press conference this morning to announce a $500,000 federal grant that has been awarded to One Safe Place to implement the Project Safe Neighborhoods (PSN) initiative in two Fort Worth neighborhoods.
PSN is a nationwide commitment to reduce gang and gun crime in the U.S. by networking existing local programs that target gun and gang crime and providing these programs with additional tools for success. PSN’s strategic approach brings more “science” into criminal justice operations by leveraging innovative applications of analysis, technology and evidence-based practices to improve performance and effectiveness while containing costs.
The grant is one of only seven half-million dollar grants awarded by the Justice Department’s Office of Justice Programs Bureau of Justice Assistance and funded under the 2016 Violent Gang and Gun Crime Reduction/Project Safe Neighborhoods initiative. This grant also addresses domestic violence, which, according to many statistics, is a major contributing factor for the increase in gun and violent crimes.
The funds from this grant will be specifically used in the Stop Six/Poly and the Las Vegas Trail Corridor in Fort Worth. Following this morning’s press conference, volunteers and neighborhood police officers with the Fort Worth Police Department will distribute door hangers in those neighborhoods. Each “Not on My Block” door hanger provides resources for reporting criminal activity, to include the Crime Stoppers anonymous tip line phone number.
“My office is committed to working side by side with the people who live in these neighborhoods, our partners at One Safe Place, and our partners in law enforcement to stop the destructive cycle of gun and gang violence that terrorizes our communities,” said U.S. Attorney Parker. “This grant funding significantly enhances that effort in Fort Worth by providing additional tools for success.”
“With the additional grant funding for One Safe Place, another great step in the holistic approach in tackling the gun and gang problem that plagues many cities is taking place here in Fort Worth,” SAC Temple said. “It is through community based organizations working with law enforcement at every level that this problem can be addressed and make life better for our citizens.”
“As longstanding partners with One Safe Place in the effort to reduce violent crime in Tarrant County, we are extremely pleased the DOJ chose to fund their efforts to reduce gang and gun violence,” said Chief Fitzgerald. “We are steadfast in our commitment to meaningful partnerships in the community to make Fort Worth the safest large city in America. This grant award will certainly bring us closer to that reality.”
“PSN has helped ensure a very effective collaboration between local, federal and community based partners, which has reduced gun and gang violence in Fort Worth,” said Mr. Shetter. “Funding under the 2016 PSN Program will allow us to take this partnership to the next level, build on the knowledge and best practices that have already been developed, and target resources on hot spots for gun and gang violence. We are particularly excited that the One Safe Place strategy addresses domestic violence as a significant contributor to gun and gang violence in the community.”
One Safe Place, in collaboration with partner agencies, will use the new grant to focus on targeted enforcement, prevention, community outreach, and reentry programs, with an emphasis on interrupting the cycle of violence in order for communities to sustain crime reduction.
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U.S. Attorney StatementRead the Press Release
TOPEKA, KAN. – U. S. Attorney Tom Beall made the following statement:
Based on information known to the U.S. Attorney’s Office we have closed our inquiry into the Oct. 29, 2011, explosion of a grain elevator at 324 Riverfront Road in Atchison, Kan. We have determined there is not sufficient evidence to support criminal charges against the owner, Bartlett Grain Company. This announcement does not dismiss pending enforcement actions by the Occupational Safety and Health Administration.
U.S. Attorney General Honors Fata Prosecution TeamRead the Press Release
The team responsible for the investigation and prosecution of Dr. Farid Fata was among 376 employees recognized by Attorney General Loretta E. Lynch today for their distinguished public service at the 64th Annual Attorney General’s Awards Ceremony. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the mission of the Department of Justice.
Among the employees recognized were Linda Aouate, Sarah Resnick Cohen, John K. Neal and Wayne F. Pratt, Assistant United States Attorneys, and Sandy Palazzolo, Victim-Witness Coordinator, from the U.S. Attorney’s Office for the Eastern District of Michigan; Gejaa T. Gobena, former Deputy Chief, and Catherine K. Dick, Supervisory Trial Attorney, of the Fraud Section, Criminal Division; Joan E. Hartman, Trial Attorney, Fraud Section, Commercial Litigation Branch, Civil Division; Bryan Drake, William Brian Fairweather, Kevin J. Swanson, Special Agents, and LaFell D. Peoples, Forensic Accountant, Detroit Field Office, Federal Bureau of Investigation; Abhijit Dixit and Michael Fairbanks, Special Agents, Office of Inspector General, U.S. Department of Health and Human Services; and Kevin Nalu, Special Agent, Internal Revenue Service, Criminal Investigations, U.S. Department of Treasury.
The team was presented the Attorney General’s Award for Fraud Prevention. This award recognizes exceptional dedication and effort to prevent, investigate and prosecute fraud, white-collar crimes and official corruption. The team received this award for its work on the case of United States v. Farid Fata.
Fata was a licensed medical doctor who owned and operated a cancer treatment clinic, Michigan Hematology Oncology P.C. (MHO), which had locations in Rochester Hills, Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park, Michigan. He also owned a diagnostic testing facility, United Diagnostics PLLC, located in Rochester Hills.
Fata was sentenced to 45 years in prison for his role in a health care fraud scheme that included prescribing and administering unnecessary aggressive chemotherapy, cancer treatments, intravenous iron and other infusion therapies to 553 individual patients to increase his billings to Medicare and other insurance companies. Fata submitted fraudulent claims totaling approximately $34 million. The team was successful in seizing approximately $11.9 million and put together a team of specialists to assist former patients and family members of Dr. Fata in submitting claims for restitution.
“We are grateful for the work of the agents, prosecutors and victim coordinators who investigated and prosecuted the case against Dr. Fata.” McQuade said. “This group worked around the clock to investigate allegations promptly and thoroughly to stop Dr. Fata from harming patients and bring him to justice.”
“Dr. Fata prioritized greed for monetary gain over his oath to provide patients lifesaving care by deceitfully diagnosing cancer. He subsequently prescribed toxic treatments to hundreds of individuals who suffered catastrophic harm and loss which will impact them and their families for decades”, said David P. Gelios, Special Agent in Charge, Detroit Division of the Federal Bureau of Investigation. “I am so proud of the men and women of the Detroit FBI, Health and Human Services Office of the Inspector General, Department of Justice Medicare Fraud Strike Force and the U. S. Attorney’s Office for their recognition by Attorney General Lynch for the work they did to bring an end to this chapter of outrageous medical malpractice. While this case shocked the nation’s conscience, it is important for the public to know the FBI and our partners will remain vigilant in keeping the people of the state of Michigan safe from unethical health care providers.”
Two Nashville Men Plead Guilty to Gun and Drug CrimesRead the Press Release
George Ivory aka GI, 27, and Anthony Laquesha Coleman aka Scrappy, 30, both of Nashville, Tenn., pleaded guilty today to gun and drug offenses which they committed in the area of 16th Avenue North and Buchanan Street in North Nashville, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
George Ivory admitted that he was selling crack cocaine in that area on May 1, 2015, when he and another drug dealer got into a verbal dispute about who could sell drugs in that area. During that argument, a 62-year-old man tried to buy about $60 of crack cocaine from the other drug dealer. Ivory demanded that the man buy crack from him instead, but the man declined. Ivory then struck that man and his female companion with a gun and demanded the man’s money. Ivory then shot the man three times, with at least one shot striking him in the head. Ivory then fled the area and threw the firearm into the Cumberland River. The victim survived, but was blinded and suffers from other serious long term health effects.
Ivory was later arrested and charged federally with committing a robbery affecting interstate commerce, discharging a firearm during a violent or drug related felony, possessing ammunition as a felon, and possession of cocaine with intent to distribute. Ivory’s previous felony convictions include two state convictions in 2010 for facilitation of second degree murder and sexual battery without consent. Ivory has entered into a plea agreement which calls for a sentence of 25 years in prison. There is no parole from federal sentences.
An investigation into Ivory’s conduct led to federal charges against Anthony Laquesha Coleman aka Scrappy. Coleman pleaded guilty to being a felon in possession of a firearm and possession of cocaine with intent to distribute. According to the statement of facts, Coleman was selling crack cocaine near a residence located in the 16th Avenue North and Buchanan Street area of Nashville on March 23, 2015. The person who lived in that home asked Coleman not to sell drugs around her house. Coleman began arguing with that woman and one of her female friends. Coleman then obtained a loaded pistol from one of his friends and continued threatening the women. He eventually went into a rooming house across the street. One of the women called police for assistance and reported that children were in the area during this incident. Metro Nashville police officers responded and arrested Coleman, who had attempted to discard the gun and drugs.
Coleman has also entered into a plea agreement which calls for a sentence of 20 years in prison, since Coleman’s prior felony convictions make him a Career Offender under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department. The case is being prosecuted by Assistant United States Attorneys Sunny A.M. Koshy and Ahmed Safeeullah.
Two Arrested for Committing $295,000 Armed Bank RobberyRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces the filing of a criminal complaint charging Ricardo Rodriguez, Jr. (24) and Brandon Mojica (23), both of Deltona, with armed bank robbery. If convicted, each faces a maximum penalty of 25 years in federal prison.
According to the
complaint , on the morning of November 8, 2016, Rodriguez displayed a firearm and forced two bank employees, including Mojica, to provide access to the safe of a bank in Lake Mary, Florida. Rodriguez took approximately $295,000 from the safe and physically restrained both employees before fleeing the bank. Responding officers from the Lake Mary Police Department quickly located, pursued, and apprehended Rodriguez. They also recovered the cash that Rodriguez had stolen from the bank and the firearm used during the robbery. Further investigation revealed that Mojica had assisted Rodriguez in planning the robbery by providing information concerning the bank and its employees in advance.Rodriguez and Mojica made their initial appearances in federal court yesterday. Following a detention hearing, Rodriguez was ordered detained pending further proceedings. Mojica was ordered temporarily detained until his formal detention hearing, which has been scheduled for November 17, 2016.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Lake Mary Police Department and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Emily C.L. Chang.
Three Individuals in District of New Jersey Receive Attorney General AwardsRead the Press Release
NEWARK, N.J. – Attorney General Loretta E. Lynch recognized 376 department employees for their distinguished public service today at the 64th Annual Attorney General’s Awards Ceremony. Forty-seven other individuals outside of the department were also honored for their work. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice.
In the District of New Jersey, three individuals – Counsel to the U.S. Attorney John M. Fietkiewicz and Assistant U.S. Attorneys Dennis C. Carletta and Peter W. Gaeta – were honored with awards.
“The Attorney General’s Awards provide us with a rare opportunity to honor the efforts of outstanding department employees and our invaluable partners across the federal government and at the state and local levels,” Attorney General Lynch said. “Their work has made our nation – and our world – stronger, safer and more just, and I am proud of and inspired by each and every one of them.”
“I’m enormously proud of the three attorneys from our office who are being honored with these awards,” U.S. Attorney Paul J. Fishman, District of New Jersey, said. “John, Dennis and Peter exemplify the outstanding professionalism and commitment to justice we strive for every day. These awards honor them, but also all of the men and women in our office, who work so hard every day on behalf of the people of New Jersey and across the country.”
In the District of New Jersey, the following individuals were recognized for the following awards:
The Claudia J. Flynn Award for Professional Responsibility recognizes a department attorney who has made significant contributions in the area of professional responsibility by successfully handling a sensitive and challenging professional responsibility issue in an exemplary fashion and/or leading efforts to ensure that department attorneys carry out their duties in accordance with the rules of professional conduct.
Fietkiewicz is recognized for his sustained, outstanding leadership and invaluable contributions to ensure that department prosecutors carry out their duties in compliance with the highest ethical standards. With superior dedication and effort, he has gone to extraordinary lengths to advise and train innumerable department prosecutors, providing the tools and resources necessary to perform their work in the most ethical and professional way possible. With his considerable experience and exceptional judgment, he is leading the district in successfully addressing the overlap between the legal and ethical duty of disclosure, one of the most important professional responsibility issues facing federal prosecutors in decades. His unfailing commitment to upholding and inspiring others to the highest standards of professionalism has been a model to his peers within and outside the department. He worked closely with Claudia Flynn during her service at the department, and he embodies the integrity, professionalism and strength of character that marked Flynn’s life and work.
The Attorney General’s Award for Excellence in Law Enforcement recognizes outstanding professional achievements by law enforcement officers of the Department of Justice.
The award recognizes, from the U.S. Attorney’s Office of the District of New Jersey, Assistant U.S. Attorneys Carletta and Gaeta.
In December 2011, the FBI opened a five-year investigation into ABN Universal Inc. Early investigative techniques revealed the U.S.-based owner and operator of ABN was Alexander Brazhnikov. Through an exhaustive use of human sources, video surveillance, forensic reconstruction, grand jury subpoenas, search warrants, Title III surveillance of emails and computer analysis, the investigation revealed that ABN was procuring dual-use microelectronics from U.S.-based manufacturers on behalf of Russian companies directly associated with the Russian military and intelligence services. Moreover, employees of ABN were devaluing the price of exported products to Russia and using front company addresses in Moscow, an offshore virtual private network and an international network of shell companies to conceal the intended end-users from U.S. law enforcement. The investigative team worked diligently to overcome each of these obfuscation techniques to ultimately reveal the totality of Brazhnikov’s criminal offenses. As a result of the investigation, in June 2014, an arrest warrant for Brazhnikov was issued for his illegal smuggling of export controlled U.S.-sourced goods to Russia and for conducting $65 million in money laundering. In June 2015, Brazhnikov pleaded guilty to conspiracy to smuggle goods from the U.S., conspiracy to commit money laundering and conspiracy to violate the International Emergency Economic Powers Act. Brazhnikov also admitted to smuggling microelectronics to Russian defense contractors known to supply the Russian military and intelligence services, to include two Russian nuclear warhead design institutes. As a result of his guilty plea, the District Court of New Jersey issued a money judgment against Brazhnikov for $65 million.
Three Individuals Found Guilty of Violating the Rico Act, Drug Trafficking and MurderRead the Press Release
SAN JUAN, Puerto Rico – Yesterday evening, after a 17-day trial, a jury found three members of the violent drug trafficking organization known as La Rompe ONU guilty of drug trafficking and murder charges. Namely, the jury found defendants Rubén Cotto-Andino, a.k.a. “Rubén El Negro”, José D. Resto-Figueroa, a.k.a. “Tego”, and Carlos Velázquez-Fontánez guilty of violating the Racketeer Influenced and Corrupt Organizations Act (RICO), conspiracy to possess with intent to distribute controlled substances, carrying firearms during and in relation to a drug trafficking offense, drive-by shooting murders and related firearm offenses, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Judge Jay García Gregory presided over the trial.
Rubén Cotto-Andino was a leader of La Rompe ONU and oversaw the organization’s drug trafficking activities at the Jardines de Cupey and Brisas de Cupey Public Housing Projects. Jose Resto Figueroa, an enforcer for the organization, was found guilty of participating in a drive-by shooting that occurred on August 28, 2012, in which enforcers of La Rompe ONU shot and killed Luis Ojeda-Andino, a.k.a. “Pollo,” Luis Velázquez-Aquino, a.k.a. “Urraca,” and José Ayala-García. These murders are known as the “Jardines de Cupey Massacre.”
Carlos Velázquez-Fontánez, a San Juan Municipal Police Agent, who supplied members of La Rompe ONU with ammunition and engaged in drug trafficking, was also found guilty of a drive-by shooting murder. Namely, he participated in a drive-by shooting on June 25, 2011, during which enforcers of La Rompe ONU shot and killed Edwin Díaz-Cruz, Hervin Valcarcel-Martínez, a.k.a. “Prieto,” Javier Catala-Bermúdez, and Orlando Meléndez-Villegas. These murders are known as the “Tortuguero Massacre.”
During trial, the government presented the testimony of cooperating witnesses, law enforcement officials, forensic science technicians, experts and physical evidence such as firearms, ammunition, and narcotics seized, which proved that the defendants were guilty beyond a reasonable doubt.
“The Rompe ONU gang ruled certain neighborhoods in San Juan, spreading violence and fear in their communities,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “This extensive investigation has taken dangerous Rompe ONU leaders, members and associates off the streets and put them in prison, where they belong. Violent street gangs should take note, and know that we are determined to break their grip on our communities, and that they will face justice for their crimes.”
Assistant U.S. Attorneys Alberto López-Rocafort and Victor O. Acevedo-Hernández were in charge of the prosecution of the case. The defendants face sentences of up to life imprisonment.
Tennessee Couple Indicted for Veteran’s Unemployment Compensation Fraud and Money LaunderingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Tennessee couple were indicted by a federal grand jury on November 9, 2016, for fraudulently obtaining $98,165 in veterans’ unemployment compensation benefits.
According to United States Attorney Bruce D. Brandler, Earl Lafayete Hall, III, age 35, and his wife, Renita Blunt, age 31, both of Arlington, Tennessee, are charged in a second superseding indictment with mail fraud, money laundering, aggravated identity theft, and conspiracy to commit mail fraud.
According to the second superseding indictment, with Blunt’s assistance, Hall allegedly applied for veteran’s unemployment compensation benefits in three states under the false name and identity of 11 individuals (ten men and one women) between January 2013 and March 2015. One claim was submitted to the Hawaii Department of Labor and Industrial Relations, three claims were submitted to the Utah Department of Workforce Services, and seven claims were submitted to the Pennsylvania Department of Labor and Industry.
Hall and Blunt allegedly received the benefits under the Unemployment Compensation for Ex-Service Members Program, commonly known as “The UCX Program,” a federally-funded U.S. Department of Labor program administered by the individual states. Under this federal-state partnership, the states pay out unemployment insurance benefits to the veterans and are subsequently reimbursed by the various branches of the military. Benefits are based upon the military wages and pay grade of the serviceman at the time of his or her separation from military service.
Hall and Blunt were previously indicted by a Middle District of Pennsylvania grand jury on June 22, 2016. Today’s second superseding indictment adds Blunt as a defendant on the ten money laundering counts, adds a count of conspiracy to commit money laundering against both defendants, and alleges the three false Utah claims for UCX benefits, which paid out approximately $10,000 in benefits, were also part of the mail fraud scheme. No date has yet been scheduled for the defendants’ arraignment on the new charges.
The investigation is being conducted by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, U.S. Defense Criminal Investigative Service, U.S. Postal Inspection Service with assistance from Pennsylvania Department of Labor and Industry, Internal Audits Division, Pennsylvania Department of Labor and Industry, Office of Unemployment Compensation Benefits and Policy, and the Pennsylvania Department of the Treasury, Office of Unemployment Compensation Disbursements. The case is being prosecuted by Assistant U.S. Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each count is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Tax Defier and Member of Freedom Law School Sentenced to Prison for Tax EvasionRead the Press Release
Used Warehouse Bank, Prepaid Debit Cards, Cashier’s Checks, and Postal Money Orders to Conceal Income and Assets From IRS
A Point Richmond, California man was sentenced to serve 33 months in prison yesterday for tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Brian J. Stretch of the Northern District of California.
In June, Richard Thomas Grant, 63, was found guilty of three counts of tax evasion following a jury trial in Oakland, California. In 2001, Grant stopped filing individual income tax returns and paying income taxes despite the fact that he received significant income as a partner with Grant Engineering & Manufacturing, an engineering company in Richmond. In 2003, Grant stopped filing annual partnership returns for Grant Engineering, even though he continued to pay a CPA to prepare these returns. That same year, Grant became a member of Freedom Law School and paid thousands of dollars in yearly membership fees. While the Internal Revenue Service (IRS) attempted to collect unpaid taxes owed by Grant for 2001 and 2002, and attempted to examine Grant’s taxes for subsequent years, Grant, with the assistance of Freedom Law School and its founder, Peymon Mottahedeh, attempted to frustrate the IRS’s actions by, among other things, filing multiple and ultimately unsuccessful law suits in various jurisdictions.
For the charged years 2005 through 2009, Grant’s partnership income was $509,339, $566,741, $486,062, $598,977 and $604,706, respectively.
In an effort to conceal his assets and income, in 2005, Grant significantly curbed the use of his checking accounts and began depositing his partnership distributions at a warehouse bank known as MyICIS in Berryville, Arkansas. Warehouse banks can be used to conceal ownership of funds in part by commingling such funds with those of other individuals. Between April 2005 and October 2006, Grant wrote hundreds of checks drawn on the MyICIS account and funded multiple prepaid debit cards. Grant used the checks and debit cards to pay his mortgage and other personal expenses.
After the federal government shut down MyICIS, Grant used another bank to convert his partnership distributions to cashier’s checks and cash in order to avoid depositing the funds into a bank account and used the cashier’s checks to pay his mortgage and other high-dollar personal expenses. He also used cash to purchase dozens of U.S. Postal money orders to pay other bills and expenses, including utilities, taxes and expenses related to his classic aircraft.
In addition to the term of prison imposed, Grant was also ordered to serve three years of supervised release and pay restitution to the IRS in the amount of $402,457.39.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Stretch commended agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Colin Sampson and Trial Attorney Matthew Kluge of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tax Defier and Member of Freedom Law School Sentenced to Thirty-Three Months’ Imprisonment for Tax EvasionRead the Press Release
Oakland – A resident of Point Richmond, Calif. was sentenced late yesterday to serve 33 months in prison for tax evasion, announced U.S. Attorney Brian J. Stretch, Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and Special Agent in Charge of Internal Revenue Service-Criminal Investigation (IRS-CI) Michael T. Batdorf.
In June, Richard Thomas Grant, 63, was found guilty of three counts of tax evasion following a jury trial in Oakland, California.
According to evidence presented at trial, in 2001, Grant stopped filing individual income tax returns and paying income taxes despite the fact that he received significant income as a partner with Grant Engineering & Manufacturing, an engineering company in Richmond. In 2003, Grant stopped filing annual partnership returns for Grant Engineering, even though he continued to pay a CPA to prepare these returns. That same year, Grant became a member of Freedom Law School, and paid thousands of dollars in yearly membership fees. While the IRS attempted to collect unpaid taxes owed by Grant for 2001 and 2002, and attempted to examine Grant’s taxes for subsequent years, Grant, with the assistance of Freedom Law School, attempted to frustrate the IRS’s actions by, among other things, filing multiple law suits in various jurisdictions. These lawsuits were unsuccessful.
For the charged years 2005 through 2009, Grant’s partnership income was $509,339, $566,741, $486,062, $598,977, and $604,706, respectively.
In an effort to conceal his assets and income, in 2005, Grant significantly curbed the use of his checking accounts and began depositing his partnership distributions at a warehouse bank known as MyICIS in Berryville, Arkansas. Warehouse banks can be used to conceal ownership of funds in part by commingling such funds with those of other individuals. Between April 2005 and October 2006, Grant wrote hundreds of checks drawn on the MyICIS account and funded multiple prepaid debit cards. Grant used the checks and debit cards to pay his mortgage and other personal expenses.
After the federal government shut down MyICIS, Grant used another bank to convert his partnership distributions to cashier’s checks and cash in order to avoid depositing the funds into a bank account and used the cashier’s checks to pay his mortgage and other high-dollar personal expenses. He also used cash to purchase dozens of U.S. Postal money orders to pay other bills and expenses, including utilities, taxes, and expenses related to his classic aircraft.
“Mr. Grant spent years trying to devise and implement ways to avoid paying his taxes,” said U.S. Attorney Stretch. “In the end, his violations of the law equated to three years in jail and substantial monetary penalties. Similar results await those who cheat on their taxes.”
“This was not a case about someone who simply fell behind in a good faith effort to keep up with their taxes, rather someone who earned millions of dollars and paid no taxes,” said Special Agent in Charge Michael T. Batdorf. “Mr. Grant moved his funds out of the traditional banking system which enabled him conceal ownership and hide his income. Today’s sentencing sends a message that those who intentionally undermine our tax system will not go undetected and will be held accountable.”
In addition to the term of prison imposed, Grant was also ordered to serve three years of supervised release, as well as pay restitution to the IRS in the amount of $402,457.39, costs of prosecution of $4,400.90, and a fine of $7,500. Grant was ordered to appear to begin serving his sentence on January 9, 2016,
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Stretch commended agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Colin Sampson, and Trial Attorney Matthew Kluge of the Tax Division, who prosecuted the case.
Tampa Man Sentenced to More Than Six Years for Credit Card Fraud and Identity TheftRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Alberto Yuniel Garcia (31, Tampa) to six years and two months in federal prison for engaging in the manufacture and use of counterfeit credit cards and identity theft. He pleaded guilty on July 7, 2016.
According to court documents, from as early as 2013, and continuing through 2015, Garcia and others possessed and used counterfeit credit cards to purchase items, including gift cards, at retail stores throughout the Tampa Bay area. They obtained stolen credit and debit card numbers from unsuspecting account holders in a variety of ways, including from skimmers placed on gas station pumps. They then re-encoded gift cards with the stolen account numbers in order to create counterfeit credit cards, which they used to purchase merchandise and gift cards that they used for their own benefit or sold for cash. Garcia and those working with him used the stolen account numbers without the account holders’ knowledge or permission and shared in the proceeds of the fraud and identity theft.
On February 19, 2014, law enforcement officers removed four skimmers from gas pumps at a Hess Station in Brooksville. Members of the U.S. Secret Service’s Financial Investigation Strike Team determined that the Hess Station was a common point of compromise for credit card fraud victims. Once investigators obtained store surveillance videos and receipts for the fraudulent transactions, they discovered that Garcia and his co-conspirators were the individuals using the counterfeit credit cards that had been re-encoded with the stolen account information skimmed from customers at the Hess Station.
During yesterday’s sentencing hearing, the Court found that Garcia was involved in various conspiracies to commit credit card fraud and identity theft that affected more than 35 financial institutions and over 1,000 victims. The government estimates the actual loss to individuals as a result of these conspiracies was over $700,000.
This case was investigated by the Tampa Police Department, the United States Secret Service, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Eric Gerard.
Statement of U.S. Attorney Preet Bharara on the Presentment of Ahmad Khan Rahami on Terrorism Charges in Manhattan Federal CourtRead the Press Release
“Ahmad Khan Rahami, the alleged Chelsea bomber, was brought today to Manhattan to face terrorism charges. Allegedly driven by a commitment to violent jihad, Rahami planted bombs in the heart of Manhattan and in New Jersey. One of the bombs exploded on a Saturday evening in Chelsea, injuring over 30 people and shattering windows hundreds of yards away. For his alleged acts of terror, Rahami will now face justice in a federal courthouse just blocks south of where he allegedly planted his bombs. Rahami will be presented on his federal terrorism charges today in the Southern District of New York before United States Magistrate Judge Sarah Netburn.”
Statement from U.S. Attorney Regarding Fox School DistrictRead the Press Release
The United States Attorney’s Office has closed its investigation into certain spending issues regarding the Fox School District and former Fox Superintendent Dianne Critchlow. The investigation was triggered by a report issued by the Missouri State Auditor in May of this year. The investigation has concluded with the finding that there is no basis for criminal charges. The School District has been notified.
Springfield Man, Woman Sentenced for Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man and woman were sentenced in federal court today for their roles in a heroin trafficking conspiracy.
Donald D. Johnson, 27, and Dionne T. Ackerley, 39, both of Springfield, were sentenced in separate appearances before U.S. District Judge Roseann Ketchmark. Johnson was sentenced to 32 years in federal prison without parole. Ackerley was sentenced to 19 years and six months in federal prison without parole.
Johnson and Ackerley each pleaded guilty to their roles in the drug-trafficking conspiracy, which lasted from May 29, 2013, to Feb. 12, 2015.
Johnson admitted that he bought heroin in the Chicago, Ill., area and had it transported in vehicles to the Springfield area for distribution. Johnson also admitted that he bought heroin in the St. Louis, Mo., area. Johnson sold heroin to other co-conspirators.
Johnson admitted that he sold heroin to an undercover law enforcement officer and a confidential informant on three occasions. On March 13, 2014, he sold .7 grams of heroin for $275 in a transaction in Springfield. On March 18, 2014, he sold 2.2 grams of heroin for $500 in a transaction in Ozark, Mo. On Feb. 12, 2015, he sold .93 grams of heroin for $270 in a transaction in Springfield.
Ackerley was present when law enforcement officers executed a search warrant at a Springfield residence. She had 21 individual baggies of heroin weighing 1.47 grams in her purse, and two firearms – a Glock 9mm semi-automatic pistol and a Smith and Wesson revolver – inside a safe in the bedroom. Ackerley told law enforcement officers that she traded heroin for the firearms.
Law enforcement officers searched a unit rented by Johnson and Ackerley at Bradford Mini Storage in Springfield on May 29, 2014. Inside the storage unit they found a Bushmaster .223-caliber semi-automatic rifle.
Johnson and Ackerley are among five co-defendants who have been sentenced. Two co-defendants have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol and the Springfield, Mo., Police Department.
South Carolina Woman Sentenced to 51 Months in Tax Fraud SchemeRead the Press Release
Montgomery, Alabama – Willie May Ford, 62, of Lamar, South Carolina, was sentenced today to 51 months in prison following her conviction on federal access device fraud charges, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
On July 29, 2016, Ford pled guilty to one count of access device fraud. Evidence collected during the investigation established that on July 27, 2013, officers with the Auburn, Alabama, Police Department met with employees at a retail establishment in Opelika regarding counterfeit travelers checks that had been passed at the store. Ford and another individual used counterfeit travelers checks to purchase items at two separate stores, which led to their arrest.
After the arrest, numerous traveler’s checks, credit and debit cards, and pieces of personal identifying information were seized from the vehicle that Ford had traveled in to Alabama. A subsequent investigation revealed that the personal information of over 400 individuals was used to file fraudulent federal income tax returns.
“Willie Ford learned the hard way that IRS-Criminal Investigation has an unwavering pursuit to expose and investigate those who choose to commit identity theft and refund fraud,” stated Special Agent in Charge Veronica F. Hyman-Pillot. “The strategy will not change. Anyone that engages in similar schemes will face similar consequences.”
“Identity theft and tax fraud is costing the American taxpayers millions each year,” stated U.S Attorney beck. “I am proud of the work my office is doing with our partnering law enforcement agencies to seek out these criminals and protect our citizens.”
In addition to 51 months’ imprisonment, Ford was sentenced to a three-year term of supervised release following her period of imprisonment and restitution in the amount of $1,672,971.
The Internal Revenue Service-Criminal Investigation, United States Secret Service, and the Auburn, Alabama, Police Department investigated this case. Assistant United States Attorney Todd A. Brown prosecuted the case.
Slidell Man Sentenced for Sexual Exploitation of ChildrenRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BRIAN GRACO, age 36, of Slidell, was sentenced today after previously pleading guilty to receiving images and videos depicting the sexual exploitation of children.
U.S. District Judge Eldon E. Fallon sentenced GRACO to 97 months imprisonment, followed by 5 years of supervised release. Additionally, GRACO was also ordered to pay restitution in the amount of $2,000 and will be required to register as a sex offender under the Sex Offender Registration Notification Act.
According to court documents, on May 27, 2014, law enforcement officials executed a search warrant at GRACO’s residence, during which time they seized several electronic items, including three computers, one external digital storage device, and three removable digital storage devices. A preliminary review of the electronic devices determined that a desktop computer contained images and videos depicting the sexual victimization of children. A more intensive forensic examination of the device revealed that GRACO had used the desktop computer to access Internet websites and networks devoted to the advertisement and distribution of child pornography. Between June 4, 2013 and May 27, 2014, GRACO discussed matters pertinent to the sexual abuse of children to search for, download, and save images and videos of children as young as five (5)-years-old engaging in sexually explicit conduct. The forensic examination determined that GRACO possessed at least10,264 images and 130 videos of children engaging in sexually explicit conduct. After downloading the images and videos, GRACO stored them on special folders he created on his computer.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg and Special Assistant United States Attorney J. Ryan McLaren were in charge of the prosecution.
Sixth Conspirator in Treasure Valley Drug Distribution Ring SentencedRead the Press Release
BOISE – Isela Garza, 30, of Nampa, Idaho was sentenced today to 48 months in prison for conspiracy to distribute controlled substances in the Treasure Valley, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge ordered that Garza serve four years of supervised release following her release from prison. Garza was indicted on December 8, 2015, in a superseding indictment and entered her guilty plea on August 17, 2016.
The drug conspiracy was led by Stacy Duane Wilfong, 40, of Nampa, Idaho and involved 11 people. Wilfong was sentenced on October 4, 2016, to 220 months in prison for conspiracy to distribute controlled substances. Throughout the course of the investigation, law enforcement officers discovered that Wilfong and his co-conspirators bought and sold methamphetamine, heroin, pills including oxycodone, and a synthetic controlled substance called Alpha-pyrrolidinopentiophenone, known as "a-PVP," or “bath salts” to individuals throughout the Treasure Valley. Garza obtained methamphetamine from Wilfong and distributed it on his behalf.
In addition to Garza and Wilfong, four other co-conspirators have been sentenced. Anthony “Tony” Kitchen, 48, was sentenced to 71 months. Jocelin Jessica Gonzalez, 19, to 40 months and Elizabeth Ann Gaytan, 37, to 100 months. All three are from Nampa. Regina Wade, 50, of Boise was sentenced to 41 months.
Two co-defendants have entered guilty pleas and are awaiting sentencing. Breeannyn Nicole Pederson, 25, of Parma, is scheduled to be sentenced on November 15, 2016, and David Anthony Wales, 31, of Boise, is scheduled to be sentenced on February 22, 2017. Two other co-defendants are scheduled to enter guilty pleas. Adam William Dillon, 28, of Nampa is scheduled for a plea change on November 22, 2016, and Jason Lee Burgess is scheduled for a plea change on November 16. One co-defendant, John Matthew Caviness, Jr., 34, of Caldwell, is currently set for trial on December 13.
These cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Sentencings for November 4 - November 10, 2016Read the Press Release
Brian Dewayne Johnson, 38, of Evansville, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 10, 2016, for possession with intent to distribute methamphetamine. Johnson was arrested in Casper, Wyoming. He received 80 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $400.00 in restitution. This case was investigated by the Wyoming Highway Patrol, the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives
Steven Timothy Brown, 56, of Lead, South Dakota, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 10, 2016, for possession with intent to distribute methamphetamine. Brown was arrested in Casper, Wyoming. He received 120 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $500.00 in restitution. This case was investigated by the Natrona County Sheriff’s Office, the Wyoming Highway Patrol, the Wyoming Division of Criminal Investigation, and the U.S. Drug Enforcement Administration.
Jaimie Lynn High Horse, 26, of Kyle, South Dakota, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 10, 2016, for possession with intent to distribute methamphetamine, heroin, and marijuana. High Horse was arrested in Rawlins, Wyoming. She received 60 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by Rawlins Police Department and the Wyoming Division of Criminal Investigation.
Rick Olsen, 49, of Casper, Wyoming, was sentenced by Federal District Court Scott W. Skavdahl on November 10, 2016, for possession of child pornography. Olsen was arrested in Casper, Wyoming. He received 80 months of imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Federal Bureau of Investigation.
Christopher Edward Isgrigg, 53, of Wheatland, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 10, 2016, for being a felon in possession of firearms. Isgrigg was arrested in Cheyenne, Wyoming. He received time served and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Ashley Aloysius Addison, Sr., 41, of Riverton, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 8, 2016, for possession with intent to distribute methamphetamine. Addison, Sr., was arrested in Lander, Wyoming. He received 24 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $400.00 in restitution. This case was investigated by the Bureau of Indian Affairs with the assistance of the U.S. Marshals Service.
Candace April Roberts, 34, of Pryor, Montana, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 4, 2016, for being a felon in possession of a firearm and ammunition. Roberts was arrested in Casper, Wyoming. She received time served and was placed on three years of supervised release. Roberts was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Bureau of Indian Affairs.
Second Wichita Man Sentenced for Armed Robbery at Park City Liquor StoreRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced Thursday to 138 months in federal prison for attempting to rob a Park City liquor store, U.S. Attorney Tom Beall said.
Roland D. Ross, 28, Wichita, Kan., pleaded guilty to one count of brandishing a firearm during a commercial robbery. In his plea, he admitted that on May 24, 2016, he and a co-defendant, Michael Ray Phillips, both brandished firearms when they tried to rob the MGS Liquor Store at 6200 North Broadway in Park City.
An employee of the store produced a firearm and fired two rounds at the robbers. Ross surrendered and the store employee held him at gunpoint until police arrived.
Phillips was struck in the chest by the employee’s shots. Although he was injured, he fled the store before police arrived. He was arrested later when he sought treatment for the gunshot wound at a hospital in Kansas City. Phillips was sentenced earlier this month to seven years.
Beall commended the Park City Police Department, the Kansas City, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated and Assistant. U.S. Attorney Lanny Welch for their work on the case.
Sault Ste. Marie Man Sentenced for Habitual Domestic ViolenceRead the Press Release
MARQUETTE, MICHIGAN — Justin Ryan Wykoff, 28, of Sault Ste. Marie, Michigan was sentenced to 42 months in federal prison for domestic violence by a habitual offender, U.S. Attorney Patrick Miles announced today. In addition to the prison term, U.S. District Judge Paul L. Maloney ordered Wykoff to serve three years of supervised release following his prison term.
Wykoff pled guilty to the charge in August of this year. The charge stems from an incident last December in which Wykoff assaulted a woman in the parking lot of the Sault Ste. Marie Tribal Health Center. A passerby witnessed the assault and reported it to the Sault Ste. Marie Tribal Police. Wykoff had previously been convicted of domestic violence offenses against the same woman on May 22, 2015 and September 2, 2015, in the 91st District Court, Chippewa County, Michigan. In imposing the sentence for the December assault, Judge Maloney noted both the physical abuse and the insidious psychological abuse Wykoff had inflicted upon the victim.
Before the federal charges were brought, Wykoff pleaded no contest to a misdemeanor charge in tribal court for the same December incident. But a conviction in tribal court does not foreclose federal prosecution and, after consultation with tribal authorities, the U.S. Attorney’s Office pursued the federal charges as well.
The Sault Ste. Marie Tribal Police and the Federal Bureau of Investigation investigated the case. The case was prosecuted by Assistant U.S. Attorney Paul D. Lochner.
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Sault Ste Marie Man Sentenced to 168 Months for Assaulting Federal Officers with A KnifeRead the Press Release
MARQUETTE, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced today that Eric Michael Verwiebe, 37, of Sault Ste. Marie, Michigan, was sentenced in U.S. District Court to 168 months’ imprisonment for Assault on a Federal Officer with a Dangerous Weapon. He was also ordered to serve three years of supervised release following incarceration. While imposing sentence, Hon. Paul L. Maloney stated that assaulting federal law enforcement is a serious offense and Verwiebe’s sentence was needed not only to deter the defendant from future criminal conduct, but also to deter others who may consider assaulting law enforcement.
On July 27, 2016, Verwiebe pled guilty to assaulting two Bay Mills Tribal Officers who encountered him while on patrol in August of 2015. The officers received a notice that Verwiebe had committed an assault earlier in the day and was now armed with a knife. The officers found Verwiebe walking in the middle of the road. When the officers got out of their patrol vehicle and approached Verwiebe, he pulled a large kitchen knife, with a blade of approximately seven inches long, from the pocket of his sweatshirt. He then raised the knife and pointed it towards the officers. Officers ordered Verwiebe to put the knife down. Verwiebe responded by yelling obscenities, threatening to kill the officers, and raising the knife over his head (blade pointing towards officers) as he walked towards officers. When Verwiebe was approximately 7-10 feet from the officers, one of the officers deployed his Taser hitting Verwiebe in the chest. Verwiebe dropped the knife and fell to the ground. As officers approached, Verwiebe stood up, took a fighting stance, and attempted to punch the officers. Verwiebe continued to resist officers until he was handcuffed and secured in the patrol vehicle.
The Bay Mills Tribal Police and the FBI investigated the case. Assistant U.S. Attorney Hannah N. Bobee prosecuted the case.
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San Joaquin County Man Sentenced to 14 Years in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — Alejandro Munoz Galvan, 39, of Lathrop, was sentenced today by United States District Judge Troy L. Nunley to 14 years in prison for conspiracy to distribute and possess with intent to distribute methamphetamine, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between 2009 and March 2, 2012, Munoz Galvan was the leader of a group of individuals who distributed quarter-pound, half-pound and pound quantities of crystal methamphetamine in Solano County and elsewhere. Munoz Galvan received methamphetamine orders from smaller-scale drug traffickers and, to avoid personally possessing the drugs, employed multiple runners to deliver the drugs and stash house sitters to store the drugs. He hired lawyers for his runners and stash house sitters when they were arrested, so long as they refused to cooperate with law enforcement.
This case was the product of an investigation by the Federal Bureau of Investigation’s Violent Gang Task Force, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the police departments of Vacaville, Fairfield, Vallejo, Suisun City, Dixon, San Jose, and Manteca; the sheriff’s offices of Solano County and Nevada County, and the Solano County District Attorney’s Office of Investigations. Assistant U.S. Attorney Richard Bender prosecuted the case.
Co-defendants Alejandro Pantoja and Jose Miguel Cruz-Solario were each sentenced to seven years and three months in prison in 2015.
This case was the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Saint Paul Gang Members Indicted for Gun ConspiracyRead the Press Release
United States Attorney Andrew M. Luger, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jim Modzelewski and Saint Paul Police Chief Todd Axtell today announced a federal indictment charging five members of a criminal street gang known as the Hit Squad for conspiring to illegally possess firearms.
“This indictment is part of an innovative strategy to combat gang violence in our state,” said U.S. Attorney Luger. “Working with our partners at the ATF and Saint Paul Police Department, prosecutors from this office are going after the gang members and their illegal guns. Together, we are making communities safer, neighborhood by neighborhood.”
“Our goal is to significantly reduce or eliminate gang violence in St. Paul and other communities in our area of responsibility,” said James Modzelewski, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ St. Paul Field Division. “We are committed to protecting communities from gun violence and will pursue violent criminals to the fullest extent of the law. The ATF is proud to work alongside the men and women of the St. Paul Police Department who have made reducing gang violence a priority in their city. Additionally, we wouldn’t have had such a successful investigation without the assistance of the Washington County Sheriff’s Office who helped us out early on in the case. With the strong partnership between these agencies, more can be done to make Saint Paul a safer place for everyone.”
“Gang and gun violence is an insidious problem that rips at the fabric of our community,” said Axtell. “This indictment is a testament to a region-wide commitment to holding accountable those who put children, community members and others in danger with their careless disregard for the law, civility and safety of others. We are thankful for the other agencies who helped secure the indictment and look forward to continued efforts to keep our streets safe.”
According to the indictment and documents filed in court, the Hit Squad originated in 2010 in Saint Paul’s Westside neighborhood. The main purpose of the Hit Squad gang is to prevent rival gang members from entering or being within Hit Squad “territory.” Hit Squad members obtain money through the commission of crimes such as armed robbery, illegal drug distribution, burglary, theft, and other violent crimes. Hit Squad members often use the proceeds of these illegal activities to purchase firearms. They also steal firearms, trade drugs for guns, and share guns with one another.
According to the indictment and documents filed in court, the five Hit Squad members indicted today, including TYVION WAYNE BENSON, a/k/a “Tavi,” MICHAEL TREVINO, a/k/a “Mike Mike,” JOHN WELSEY EPPS, a/k/a “King Savage,” DAMARIUS DANTE GILBERT, a/k/a “Boss Sleep,” and KENDALL DVONTAE PRUITT, a/k/a “Tinki,” conspired together and with others to illegally obtain and jointly possess firearms.
According to the indictment and documents filed in court, between at least July 2014 and November 7, 2016, members of the Hit Squad were in a gang war with rival gangs including the “Ho’s and Money” (HAM) Crazy gang. This gang war has resulted in the shooting of several gang members of both sides of the conflict.
According to the indictment and documents filed in court, the indicted co-conspirators were involved in drive-by shootings and other shootouts in Saint Paul. They illegally possessed firearms near the Arlington Hills Recreation Center in Saint Paul, in common areas outside of residential apartment complexes and while driving around various neighborhoods in Saint Paul.
According to the indictment and documents filed in court, the indicted co-conspirators conspired to illegally possess at least 14 handguns during the indicted period.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Saint Paul Police Department, and the Washington County Sheriff’s Department.
Assistant U.S. Attorneys Jeffrey S. Paulsen and Benjamin Bejar are prosecuting the case.
Defendant Information:
DAMARIUS DANTE GILBERT, a/k/a “Boss Sleep,” 20
Charges:
- Conspiracy – Felon in possession of a firearm, 1 count
- Felon in possession of a firearm, 2 counts
TYVION WAYNE BENSON, a/k/a “Tavi,” 22
Charges:
- Conspiracy – Felon in possession of a firearm, 1 count
- Felon in possession of a firearm, 1 count
JOHN WELSEY EPPS, a/k/a “King Savage,” 21
Charges:
- Conspiracy – Felon in possession of a firearm, 1 count
- Felon in possession of a firearm, 1 count
KENDALL DVONTAE PRUITT, a/k/a “Tinki,” 19
Saint Paul, Minn.
Charges:
- Conspiracy – Felon in possession of a firearm, 1 count
- Felon in possession of a firearm, 1 count
MICHAEL TREVINO, a/k/a “Mike Mike,” 21
Charges:
- Conspiracy – Felon in Possession of a Firearm, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Ransomville Man Pleads Guilty to Drug ChargesRead 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 Timothy S. Woodean, 53, of Ransomville, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 100 kilograms or more of marijuana, was sentenced to 18 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that, between 2002 and April 2010, the defendant conspired with Edward C. Lynch and Bonnie R. Gordon and others to possess and distribute 100 kilograms or more of marijuana. Woodean and others arranged for bulk quantities of marijuana to be smuggled from Canada into the United States, often times using spare tires stuffed with marijuana. The vehicle used in the smuggling would then be driven to one of several locations in Niagara County, where the tire would be taken apart and the marijuana recovered for further distribution to suppliers. The suppliers purchased multiple kilogram quantities of the marijuana that had been smuggled into the United States and then sold the marijuana to other customers. Similarly, money was pooled by and between the defendant, Lynch, and others, which was secreted and transported to Canada from the United States for payment for the bulk quantities of marijuana referenced above.
Defendants Lynch and Gordon have been convicted and sentenced.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Philadelphia Man Charged with RobberyRead the Press Release
Armond Suber, 28, of Philadelphia, Pennsylvania, was charged today by indictment with committing a bank robbery, announced United States Attorney Zane David Memeger. According to the indictment, Suber robbed the Citizens Bank branch located at 4949 North Broad Street on October 8, 2016.
If convicted, he faces approximately 77 to 96 months’ imprisonment, a fine of up to $250,000, a special assessment of $100, and up to three years of supervised release.
The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney José R. Arteaga.
Pharmacist Kian Gohari Convicted in Manhattan Federal Court for Conspiring to Distribute Oxycodone and Conspiring to Commit Healthcare FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that pharmacist KIAN GOHARI was convicted yesterday of narcotics and healthcare fraud charges for his role in a conspiracy to distribute medically unnecessary oxycodone pills and fraudulently bill Medicaid for those oxycodone pills. The jury convicted GOHARI following an eight-day trial before U.S. District Judge Jed S. Rakoff.
Manhattan U.S. Attorney Preet Bharara said: “A unanimous jury found that Kian Gohari had turned his Brooklyn pharmacy into an illegal oxycodone distribution mill, unlawfully diverting tens of thousands of oxycodone pills for resale. This Office and our law enforcement partners are committed to stemming the illegal flow of oxycodone, a primary driver of opiate abuse in our country.”
According to court papers and evidence admitted at trial:
From 2012 to 2015, KIAN GOHARI, who owned Ekwunife Pharmacy in Brooklyn, New York, distributed over 25,000 medically unnecessary oxycodone pills and fraudulently billed the majority of those pills to Medicaid. GOHARI had an agreement with a co-conspirator, whereby GOHARI would distribute the oxycodone pills only if the co-conspirator brought GOHARI prescriptions for high-end medications – many of which were also medically unnecessary – such as HIV medications, psychiatric medications, and expensive pain gels. GOHARI then billed Medicaid for those prescriptions for hundreds of thousands of dollars. The co-conspirator subsequently sold the oxycodone pills in Brooklyn and Manhattan.
For these activities, GOHARI was convicted of one count of conspiracy to distribute narcotics and one count of conspiracy to commit healthcare fraud. GOHARI faces a maximum sentence of 30 years in prison. GOHARI is scheduled to be sentenced on March 9, 2016, before Judge Rakoff. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Bharara praised the outstanding investigative work of the Federal Bureau of Investigation’s New York Health Care Fraud Task Force, which includes investigators from the FBI, the NYPD, and other federal, state, and local law enforcement agencies.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Jordan Estes, Jason A. Richman, and Edward Diskant are in charge of the prosecution.
Owner of Debt Collection Company Sentenced in Manhattan Federal Court to Five Years in Prison for Massive Debt Collection FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOHN TODD WILLIAMS, a/k/a “JT,” a/k/a “Joe Steele,” was sentenced today to five years in prison for perpetrating a multi-year debt collection fraud scheme that defrauded more than 6,000 victims around the country out of millions of dollars. WILLIAMS owned and operated a debt collection company based in Norcross, Georgia, called WILLIAMS, SCOTT & ASSOCIATES, a/k/a “WSA,” a/k/a “Warrant Services Association,” (“WSA”). WILLIAMS and his co-conspirators, whom he employed as debt collectors at WSA, tricked and coerced victims into making payments to WSA by making false threats and telling a host of lies. These threats included falsely claiming that warrants had been issued for the victims’ arrest or that criminal charges were pending against them. A jury convicted WILLIAMS of conspiracy to commit wire fraud on July 12, 2016, after a five-day trial. WILLIAMS was sentenced today in Manhattan federal court by the Honorable Richard J. Sullivan, who also presided over WILLIAMS’s trial.
Manhattan U.S. Attorney Preet Bharara said: “As the jury found in convicting him, John Todd Williams was the ring-leader of a ruthless and predatory fraudulent debt collection operation that victimized thousands of people across the nation. His criminal network of collectors used lies and threats, including false claims of being law enforcement who would arrest them, to get vulnerable victims to pay up. For his callous crime, Williams himself now has been sentenced to prison.”
According to the evidence presented at trial:
Between approximately 2009 and May 2014, employees working for WSA, led by WILLIAMS, routinely attempted to trick and coerce thousands of victims throughout the United States into paying millions of dollars in consumer debts through a variety of false statements and false threats. Employees of WSA typically used aliases, sometimes referring to themselves as “Detective” or “Investigator,” falsely advised consumers they had committed purported crimes such as “check fraud” or “depository check fraud,” and told consumers that if they failed to make immediate payments to WSA to resolve the matters, warrants would be issued for their arrest. WSA employees also falsely claimed that WSA had contracts with, or was otherwise affiliated with, certain federal or local law enforcement agencies, including the Department of Justice and the Federal Bureau of Investigation.
Among other false statements, WSA employees also claimed that WSA was a law firm or otherwise worked with lawyers, and that they would have the victims’ driver’s licenses suspended if those victims did not make payment to WSA. To falsely create an appearance of legitimacy, and further trick their victims into making payments, WSA employees routinely used legal terminology to invent legitimate-sounding, but completely bogus, explanations for the supposed imminent arrest of the victims, including for example, that the “statute of limitations” on the victims’ “civil legal rights” had expired and therefore the matter was now a criminal matter that could be resolved only by voluntary payment to WSA, or arrest. WILLIAMS and WSA employees also attempted to collect debts from victims who had already paid off their loans. When victims told WSA employees that they had already paid their debts, they were told, at WILLIAMS’s instruction, that “you can’t pay a debt with a debt instrument,” i.e., a credit card.
* * *
In addition to the prison term, Judge Sullivan ordered WILLIAMS, 50, of Norcross, Georgia, to pay over $3.9 million in restitution to his victims.
Mr. Bharara praised the outstanding investigative work of the FBI. He also thanked the Consumer Financial Protection Bureau (“CFPB”) for referring this case to this Office, and the Federal Trade Commission (“FTC”) for its assistance in this investigation. Mr. Bharara also acknowledged with appreciation the extraordinary partnership between this Office and both the FTC and CFPB in the Office’s ongoing effort to combat consumer fraud.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to:
http://www.usdoj.gov/usao/nys/victimwitness.html
If you wish to report a crime by another debt collector, you may contact the FTC at 1-877-FTC-HELP. For guidance on coping with debt, and information about dealing with debt collection companies in particular, consider the following link to publications issued by the Federal Trade Commission:
http://www.consumer.ftc.gov/articles/0149-debt-collection
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sarah E. Paul and Benet J. Kearney represented the Government at trial and at sentencing.
Orlando Man Sentenced to 20 Years in Prison for Producing Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Luis Serrano (24, Orlando) to 20 years in federal prison, followed by 15 years of supervised release, for producing child pornography. The Court also ordered him to register as a sex offender upon his release. Serrano pleaded guilty on August 8, 2016.
According to court documents, Serrano enticed and persuaded a minor victim to engage in sexual activity for the purpose of producing visual depictions of the conduct beginning when the child was 14 years old. Serrano initially befriended the girl on a chat website when she was 13 and, during the next two years, he persuaded and directed her to engage in sexual activity during live video chats that he recorded. He also persuaded the child to record herself engaging in sex acts and to send the images to him over the Internet. When the victim was 16 years old, Serrano convinced her to meet him in person to engage in sex acts, and he took explicit photographs of the conduct. Serrano distributed the pornographic images of the victim to as many as 10 individuals.
On March 4, 2016, federal agents executed a search warrant at Serrano’s home and located the images of the victim on Serrano’s electronic devices. Agents also located 340 images and 175 videos depicting the sexual abuse and exploitation of other minors, many of which depicted the sexual abuse of infants and toddlers. Serrano told agents that he had obtained and shared these illicit images with others on the Internet through a file-sharing program.
“The most important thing a society can protect is our children,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI special agents utilized all of our investigative techniques and authorities to save a young child from further victimization and now this predator will be behind bars unable to harm other children.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Special Assistant United States Attorney Christina R. Downes and Assistant United States Attorney Karen L. Gable.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
One Individual Indicted in November Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the November 2016 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
NAAMAN JOE MCCOY, age 27, of Pocasset, Oklahoma
Theft in Indian Country
On or about September 13, 2016, in the Eastern District of Oklahoma, within Indian country, as defined in 18 U.S.C. § 1151, the defendant, an Indian, did take and carry away, with the intent to steal and purloin, the personal property of a non-Indian, with a value exceeding $1,000.00. The charge is in violation of Title 18, United States Code, Sections 661 and 1152, punishable by no more than 5 years imprisonment, a fine up to $250,000.00 or both.
The charge arose from an investigation by the Choctaw Tribal Police, and the Federal Bureau of Investigation.
Special Assistant United States Attorney Shelly Harrison
Nurse Who Operated Spa in Laguna Niguel Agrees to Plead Guilty to Illegally Dispensing Botox Not Approved for Use in United StatesRead the Press Release
SANTA ANA, California – A registered nurse who owned and operated a day spa in Laguna Niguel has agreed to plead guilty to a federal charge related to the illegal distribution of Botox that was not approved for use in the United States.
Bridget “Gigi” Goddard, 50, of Dana Point, who owned Pure Indulgence Skin Rejuvenation in Laguna Niguel, has agreed to plead guilty to one count of receipt and delivery of a misbranded drug, a crime that carries a statutory maximum penalty of three years in federal prison.
Federal prosecutors today filed a criminal information against Goddard, as well as a plea agreement in which she agrees to plead guilty to the felony offense.
“Drugs and medical devices are regulated to protect the American public,” said United States Attorney Eileen M. Decker. “Those who circumvent those regulations pose a very real risk to patients who could be subject to unsafe products that can do serious harm.”
All Botox products approved for distribution in the United States by the United States Food and Drug Administration are manufactured by Allergan and must be administered under the supervision of a licensed physician. Goddard admitted in her plea agreement that, over the course of several years, she ordered Botox over the internet from Canadian companies that sold unapproved drugs to customers in the United States. (One of those companies, SB Medical Inc., pleaded guilty in federal court in Alexandria, Virginia, and was ordered to pay a $45 million fine and to forfeit $30 million for smuggle misbranded pharmaceuticals into the United States.) The Botox that Goddard purchased had been manufactured for distribution in foreign nations such as Turkey and was not approved by the FDA for distribution in the United States.
In April 2016, Goddard offered to administer Botox to a person she thought was a Pure Indulgence customer, but who in fact was an undercover agent with the FDA. Goddard told the undercover agent that the undercover agent did not need to be examined by a physician before the Botox injections were administered, and Goddard knowingly misled the agent as to whether the Botox was approved for use in the United States.
“Consumers rely on FDA oversight to ensure that the drugs they take are safe and effective. When criminals attempt to distribute unapproved drugs in the U.S. marketplace, they put the public's health at risk,” said Lisa Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations. “Our office will continue to pursue and bring to justice those who would jeopardize the health and safety of the public.”
Goddard has agreed to make her first appearance in this case in United States District Court in Santa Ana on December 12.
The investigation into Goddard was conducted by FDA’s Office of Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Scott D. Tenley of the Santa Ana branch office.
Norwood Man Pleads Guilty to $120,000 Farm FraudRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Norwood, Mo., man has pleaded guilty in federal court to engaging in a scheme to sell livestock and farm equipment that was held as collateral by the Farm Service Agency.
Robert Keehner, 49, of Norwood, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Wednesday, Nov. 9, 2016, to a federal information that charges him with fraud using property mortgaged or pledged to farm credit agencies.
Keehner admitted that he engaged in a scheme from Oct. 20, 2011, to March 27, 2014, to sell mortgaged livestock, as well as dairy and farm equipment, that had been pledged to the Farm Service Agency (FSA, a farm credit agency) without notifying FSA of the sales. While selling the collateralized livestock and equipment, Keenher did not report a majority of the sales of collateralized property to the FSA. Keehner did not instruct purchasers to address proceeds checks to the FSA as well as to him, and he did not remit any of the proceeds of the sales to FSA, as was required by the terms of his loans.
Between Oct. 7, 2005, and July 18, 2007, Keehner and his wife applied for and received two operating loans from the U.S. Department of Agriculture, acting through the FSA, in the amounts of $65,000 and $120,000. The limited purpose of the loans was to buy livestock and dairy and farming equipment for the purpose of running a dairy farm.
In violation of the express terms of his loans, and with fraudulent intent, Keehner conducted livestock and equipment sales in the name of his sister, and sold farm equipment to private parties, to avoid detection while selling collateral signed over to the FSA from loans in his name. The sale of the livestock held as collateral by the FSA was conducted through Norwood Producers Auction Yards, Inc. Payments in the form of checks for the sale of the livestock and equipment were made by Norwood Producers Auction Yards, Inc., were then deposited into the joint bank accounts held by Keehner and his wife. Keehner did not instruct the purchasers to list FSA on the checks, as was required, nor were the proceeds submitted to the FSA. Instead, Keehner used the proceeds for his own personal enjoyment.
Keehner has since ceased making repayments on his FSA loans. The outstanding principal balance still owed to the USDA through the FSA is $120,543, without interest or penalties.
Under federal statutes, Keehner is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Department of Agriculture, Office of Inspector General.
North Country Man Admits Role in False Statement Made During Gun PurchaseRead the Press Release
ALBANY, NEW YORK – Jonathon P. Shappy, age 29, of Schuyler Falls, New York, pled guilty yesterday to aiding and abetting the making of a false statement during the purchase of a rifle.
The announcement was made by U.S. Attorney Richard S. Hartunian; Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and New York State Police Superintendent George P. Beach II.
During his plea, Jonathon Shappy admitted that on March 6, 2016, after being denied the purchase of a Henry Repeating Arms .22 caliber rifle from a store in Plattsburgh, he called his uncle, Donald J. Shappy, Jr., and asked Donald to purchase the gun for him. On March 7, 2016, Donald Shappy purchased the firearm and in so doing falsely certified he was the true purchaser of the firearm.
Donald Shappy pled guilty on August 4, 2016 to making a false statement during the purchase of a firearm. He is scheduled to be sentenced on December 1, 2016.
As a result of his conviction, Jonathon Shappy faces up to 10 years in prison, a fine of up to $250,000, and up to 3 years of post-imprisonment supervised release when he is sentenced by U.S. District Judge Mae D’Agostino on March 13, 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 ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Nineteen Individuals in the Southern District of Florida Receive Attorney General AwardsRead the Press Release
Attorney General Loretta E. Lynch recognized 376 department employees for their distinguished public service today at the 64th Annual Attorney General’s Awards Ceremony. Forty-seven other individuals outside of the department were also honored for their work. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice.
Nineteen individuals from the Southern District of Florida are honored with an award.
“The honorees from the Southern District of Florida represent federal prosecutors and their law enforcement partners whose steadfast commitment to public service has had an international impact on the illicit narcotics trade and resulted in justice for defrauded investors,” stated U.S. Attorney Wifredo A. Ferrer. “These award recipients have made invaluable contributions to the mission of the Department of Justice and their respective agencies. I am incredibly proud of their work and applaud their well-deserved recognition.”
“The Attorney General’s Awards provide us with a rare opportunity to honor the efforts of outstanding department employees and our invaluable partners across the federal government and at the state and local levels,” said Attorney General Lynch. “Their work has made our nation – and our world – stronger, safer and more just, and I am proud of and inspired by each and every one of them.”
The following individuals from the Southern District of Florida were recognized for the following awards:
The Attorney General’s Award for Excellence in Law Enforcement recognizes outstanding professional achievements by law enforcement officers of the Department of Justice. Two Awards for Excellence in Law Enforcement were presented this year.
One award recognized, from the U.S. Attorney’s Office of the Southern District of Florida, Assistant U.S. Attorney Marton Gyires; from the DEA’s Miami Field Office, Group Supervisor Jarod A. Forget, Special Agents John P. Garcia, Amber M. McKeone and Robert J. Roth and Intelligence Analyst Christine M. Galluccio; from the Fort Lauderdale Police Department, Detective Karin Alvarez; from the city of North Miami Beach Police Department, Sergeant William Beauparlant; from the Davie Police Department, Detective Lisa V. Choquette; from the Coconut Creek Police Department, Detective Angela L. Hofer; from the city of Coral Springs Police Department, Detective Chad L. Kuschel; and from the Miami-Dade Police Department, Detective Robert D. Love.
Operation Driving Dirty dismantled the Consolidated Priority Organization Target linked to transnational drug trafficking organizations, to include Los Urabeños, at an unprecedented rate. The recipients worked extensively with foreign DEA offices and host country counterparts in China, Hong Kong, Guatemala, Venezuela, Chile, Colombia, Mexico, Spain, Panama, Canada and the Netherlands. The international partnerships were unparalleled as Operation Driving Dirty led to significant worldwide seizures, arrests and prosecutions. As a result of leads provided to the DEA Caracas Country Office, Venezuelan counterparts seized $7 million, deemed one of the largest currency seizures in that country’s history. Additionally, while working with its partners at the U.S. Attorney’s Office, the team conducted a substantial financial investigation into the drug trafficking organization’s money laundering operations, which led to the civil forfeiture of numerous bank accounts. This cooperative effort with the U.S. Attorney’s Office led to the arrest and prosecution of over 50 high-level defendants to include the regional priority organization target, Ronen Nahmani, who was identified as one of the largest synthetic marijuana distributors in the United States. To this end, Operation Driving Dirty led to seizures totaling 6,349 kilograms of cocaine, 28 kilograms of heroin, 15 pounds of methamphetamine, 100 pounds of synthetic marijuana and precursor chemicals, 21 weapons and $30 million.
The Attorney General’s Award for Distinguished Service is the Justice Department’s second-highest award for employee performance. The recipients of this award exemplify the highest commitment to the department’s mission. Seventeen Distinguished Service Awards were presented this year to individuals or teams of people.
A Distinguished Service Award was presented to Assistant U.S. Attorneys Michelle B. Alvarez, Jeffrey N. Kaplan, Lawrence D. LaVecchio, Alison W. Lehr, Paul F. Schwartz, Evelyn B. Sheehan and Madeleine Shirley of the U.S. Attorney’s Office for the Southern District of Florida.
In October 2009, it was discovered that attorney Scott Rothstein was conducting one of the largest Ponzi schemes in American history through the operation of the Ft. Lauderdale, Florida, law firm of Rothstein Rosenfeldt & Adler P.A. (RRA). The basis of the scheme was the sale of securities in which investors purchased the rights to a stream of payments from corporate entities which ostensibly had reached confidential settlements with purported plaintiffs in sexual harassment, employment discrimination and whistleblower cases. Settlements were available for purchase in amounts ranging from hundreds of thousands to tens of millions of dollars. During the operation of the scheme, hundreds of investors remitted more than $1.2 billion to RRA, which funds were utilized to pay previous investors in the scheme to finance a lavish lifestyle for the participants, and to make political and charitable contributions which enhanced the prestige and visibility of RRA, thereby enhancing RRA’s ability to attract new investors. During the ensuing six years of litigation, 29 defendants, including attorneys and public officials, were convicted and sentenced on charges including racketeering, wire fraud, money laundering, income tax fraud, campaign finance violations, obstruction of justice, extortion and civil rights violations. Additionally, through forfeiture proceedings instituted by the government, coupled with proceedings in bankruptcy court and other ancillary civil proceedings, more than $400 million in assets were ultimately recovered, resulting in full restitution to the defrauded investors.
Nine South Florida Residents Charged with Stealing over $800,000 from the United States Department of Veterans AffairsRead the Press Release
Nine South Florida residents are charged with stealing more than $800,000 from the United States Department of Veterans Affairs.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Monty Stokes, Special Agent in Charge, United States Department of Veteran Affairs, Office of Inspector General, Criminal Investigations Division (VA OIG), made the announcement.
Mary Flynn, 67, of Miami; George Byrnes, 55, of Coral Springs; Marta Correa, 58, of Miami; Judy Jasiecki, 54, of Davie; Gregory Kramer, 64, of Fort Pierce; Leroy Weston, 58, of Pembroke Pines; Devorah Rosello, 52, of Miami; Beverly Anne Garcia, 62, of Lake Worth; and Peggy Karrh, 61, of Royal Palm Beach are each charged with theft of government funds, in violation of Title 18, United States Code, Section 641. If convicted, the defendants each face a statutory maximum penalty of up to 10 years in prison.
According to allegations in the Indictments, Mary Flynn, George Byrnes, Marta Correa, Judy Jasiecki, Gregory Kramer, Leroy Weston, Devorah Rosello, Beverly Anne Garcia, and Peggy Karrh obtained and utilized, for their own unauthorized personal use, federal government benefit funds of deceased veterans or their beneficiaries. All nine defendants failed to notify the U.S. Department of Veterans Affairs (VA) of the benefit recipients’ death; thereby, enabling continued payments for several years and in one case up to 14 years. In total, the VA made over $800,000 in fraudulently induced payments to the defendants.
Mr. Ferrer commended the investigative efforts of the VA OIG, Criminal Investigations Division. These cases are being prosecuted Assistant U.S. Attorneys Gera Peoples, Jonathan Stratton, Breezye Telfair, Rilwan Adeduntan, and Matthew Langley.
The charges contained in the Indictments are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
New Orleans Man Pleads Guilty to Use of an Interstate Facility to Promote ProstitutionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAVID MICHAEL WHITE, JR., a/k/a “Prince Loyalty,” age 33, of New Orleans pled guilty today to two counts of use of an interstate facility to promote prostitution.
According to court documents, WHITE operated a prostitution business based in New Orleans. To recruit costumers, WHITE used the internet website Backpage to post “escort” ads and market women for prostitution. In August 2015, WHITE arranged for a victim, a 19-year-old woman from Shreveport, whom he met over the internet, to visit him for a date. When WHITE picked up the victim from the bus station, WHITE told the victim he was a pimp. WHITE persuaded and enticed the victim to engage in commercial sex acts for his personal financial benefit, by posting advertisements of her for commercial sex services on Backpage. WHITE also pled guilty to advertising a 19-year-old female victim from New Orleans on Backpage in January 2013. WHITE received all the proceeds from the commercial sex acts both victims performed as result of WHITE’S Backpage postings.
For each count, WHITE faces up to five years imprisonment and/or a fine of not more than $250,000, up to three years of supervised release following imprisonment, plus a mandatory special assessment of $200. U.S. District Judge Eldon E. Fallon set sentencing for February 16, 2017.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and Homeland Security Investigations in investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
New Orleans Heroin Dealer SentencedRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HOMER GROSS, age 32, of New Orleans, was sentenced today after previously pleading guilty to conspiracy to distribute 100 grams or more of heroin and possession of a firearm in furtherance of a drug crime in violation of 21 U.S.C. § 846 and 18 U.S.C. § 924, respectively.
U.S. District Judge Eldon E. Fallon sentenced GROSS to 180 months in prison to be followed by eight years of supervised release, and a special assessment of $200.
According to court documents, GROSS pled guilty to distributing heroin to confidential informants working with ATF from 2011 to 2013. The court documents also indicated that GROSS admitted to using a .40 caliber Glock in furtherance of his heroin distribution business.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Monongalia County man sentenced for bank fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Lee Altmann, 67, of Morgantown, West Virginia, was sentenced to twelve months and one day in prison for bank fraud, United States Attorney William J. Ihlenfeld, II, announced.
Altmann, an insurance agent, fraudulently solicited his employer’s clients to buy cheaper insurance from him by using a fictitious company. Instead of purchasing an insurance policy, Altmann and used their money and the incoming premium payments for his own personal living expenses.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The West Virginia Insurance Commission Office of Inspector General investigated.
U.S. District Judge Irene M. Keeley presided.
Missouri Man Pleads Guilty to Robbing Two Illinois BanksRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on November 10, 2016, Brendon M. Collier, 39, of St. Louis, Missouri, pled guilty to an indictment charging him with two counts of Bank Robbery. Collier faces a term of imprisonment of up to twenty years, a fine of up to $250,000, or both, and a term of supervised release of not more than five years on each count. The defendant’s sentencing has been scheduled for February 24, 2017, in East St. Louis, Illinois. Collier has been held without bond since his arraignment on July 16, 2015.
The offense charged in Count One arose when, on January 28, 2015, Collier, aided and abetted by another individual, who has already pled guilty and been sentenced, went to a U.S. Bank branch located inside of a Schnuck’s grocery store in Edwardsville, Illinois. Collier approached the teller claiming that he needed to make a withdrawal but handed the teller a note that demanded loose bills that were $20s or over, and said "no alarm."
The offense charged in Count Two arose when, on February 10, 2015, Collier and his accomplice went to a second U.S. Bank branch located inside of a Schnuck’s grocery store in Fairview Heights, Illinois. During the second robbery, Collier again told a teller that he needed to make a withdrawal. On this occasion, Collier handed the teller a note demanding money quickly and that no one would get hurt.
Collier was apprehended after he and his accomplice robbed a third U.S. Bank branch located inside of a Schnuck’s grocery store in St. Peters, Missouri. Collier confessed to the St. Peters robbery as well as the two bank robberies in Illinois, claiming that the robberies were motivated by his need to buy heroin and pay for hotel rooms and food.
The case was investigated by the Edwardsville Police Department, the Fairview Heights Police Department, the Illinois State Police Metro-East Forensic Laboratory, the St. Peters, Missouri, Police Department, and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Angela Scott.
Melton Sentenced to Life for Kidnapping Case of Wake Forest ManRead the Press Release
RALEIGH – The United States Attorney’s Office announced that today, KELVIN MELTON, a/k/a Dizzy, a/k/a Old Man, 51, was sentenced by Chief United States District Judge James C. Dever, III, to life plus 84 months consecutive imprisonment. Judge Dever further recommended that MELTON serve both his federal sentence and the remainder of his North Carolina life sentence at the ADX Super Max Federal Penitentiary in Florence, Colorado in the most secure part of that facility.
On June 21, 2016, MELTON was found guilty in a jury trial of Conspiracy to Commit Kidnapping, Attempted Kidnapping and Aiding and Abetting, Kidnapping and Aiding and Abetting, and Using, Carrying, and Brandishing a Firearm During and in Relation to, and Possessing a Firearm in Furtherance of, a Crime of Violence, that being Kidnapping and Aiding and Abetting.
Frank Janssen was taken from his home against his will on April 5, 2014. One Eight Trey Blood member MELTON, used a cell phone that he illegally possessed while serving a life sentence in North Carolina’s Polk Correctional Institution in Butner, North Carolina, to transmit instructions to co-conspirators in the plot who then sent threats to Janssen’s wife. Specifically, MELTON gave instructions on how to kill Mr. Janssen, dispose of his body and sanitize the crime scene.
Through a coordinated effort involving many federal, state, and local law enforcement agencies, the FBI’s Hostage Rescue Team rescued Mr. Janssen at 11:55 pm on April 9, 2014, at a residence in Southeast Atlanta.
United States Attorney John Stuart Bruce stated, “The federal prosecution of Kelvin Melton is now complete, and justice has been served. The credit for this successful prosecution goes to the hard-working prosecutors in our office, the dedicated agents of the FBI, and scores of officers from state and local agencies who worked together to rescue the victim and solve the case.”
The case was investigated by the FBI Charlotte, FBI Atlanta, the Wake Forest Police Department, the North Carolina State Bureau of Investigation with assistance by the Durham County Sheriff’s Office, Raleigh Police Department, Durham Police Department, North Carolina Alcohol Law Enforcement, Garner Police Department, North Carolina Highway Patrol, RDU Police, City County Bureau of Investigation, the Cobb County Police Department, Alpharetta Police Department, Atlanta Police Department, and the Georgia Bureau of Investigation. The United States Attorney’s Office for the Eastern District of North Carolina is handling the prosecution of these cases.
Maryland Man Found Guilty of Assaulting Five Women at Knifepoint in Attacks Near Metro StationsRead the Press Release
WASHINGTON - Demetrius Banks, 32, of Riverdale, Md., has been found guilty of 23 felony counts for assaulting five women at knifepoint who were walking home alone from the Fort Totten and Brookland Metro stations, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD). Two of the victims were sexually assaulted.
The verdicts were delivered yesterday and today and followed a four-week trial in the Superior Court of the District of Columbia. Banks was found guilty of three counts of first-degree sexual abuse while armed with aggravating circumstances; one count of attempted first-degree sexual abuse with aggravating circumstances; one count of third-degree sexual abuse with aggravating circumstances; five counts of robbery while armed; four counts of kidnapping while armed; four counts of assault with a dangerous weapon; four counts of threats, and one count of credit card fraud. The Honorable José M. Lopez scheduled sentencing for Jan. 27, 2017. Banks remains in custody pending sentencing.
According to the government’s evidence, the assaults occurred over a one-month period, from July 28 to Aug. 28, 2015, and included this series of attacks:
July 28, 2015: The defendant’s first victim, a 21-year-old cashier, was walking home alone after work, headed from the Fort Totten Metro station at about 10:30 p.m. The victim encountered Banks, a stranger to her, standing in the unit block of Riggs Road NE. As she passed him, he suddenly grabbed her from behind, pressed a knife to her side, and threatened to kill her. He forced her at knifepoint into a dark driveway behind a school. He then raped her and robbed her. The victim was taken to Washington Hospital Center, where she underwent a sexual assault examination, which included collection of forensic evidence.
July 31, 2015: The second victim, a 26-year-old bartender, was walking home from the Fort Totten Metro station at about midnight, in the 800 block of Gallatin Street NE. Banks pretended to be leaving a house on the block, then grabbed the victim from behind and forced her at knifepoint into a dark alleyway, where he robbed her.
Aug. 4, 2015: The third victim, a 26-year-old government employee, was walking home from the Fort Totten Metro station at approximately 10:30 p.m., taking the same route as the first victim. In the unit block of Riggs Road NE - across the street from where the defendant had committed a sexual assault exactly one week earlier - Banks grabbed this victim from behind, threatened her with a knife, and began dragging her by her hair into a nearby wooded area. When a passerby saw the assault and intervened, Banks grabbed the victim’s purse and fled.
Aug. 23, 2015: The fourth victim, a 41-year-old server, was walking home from the Fort Totten Metro station at about 3:30 a.m. when Banks approached her and demanded she give him her property. He was again armed with a knife. This robbery occurred in the 600 block of Gallatin Street NE, a couple of blocks from the July 31, 2015 attack.
Aug. 28, 2015: The fifth victim, a 22-year-old waitress, was walking home from the Brookland Metro station, one stop from the Fort Totten station, at about midnight. Banks pretended to arrive at a house, and when the victim passed him by, he grabbed her from behind and forced her at knifepoint into a dark driveway. In the driveway, he raped and robbed her. The victim was able to escape and ran naked into the middle of the street, where police officers happened to drive by and find her. She was also taken to Washington Hospital Center and underwent a sexual assault examination, which included collection of forensic evidence.
Detectives with the Metropolitan Police Department obtained surveillance footage of the defendant using the fifth victim’s credit card shortly after sexually assaulting and robbing her. This footage was broadcast by the news media, and tips led to the identification of Banks as a suspect. In subsequent forensic testing, the defendant’s DNA was found on evidence collected during the sexual assault examinations of the two victims. The police investigation also uncovered that Banks had used the credit cards of the third and fifth victims at convenience stores shortly after those assaults. In addition, investigation by the Metro Transit Police Department revealed that Banks had been using the Metro cards of both sexual assault victims to travel around the city. When search warrants were executed for the defendant’s home and property with the assistance of the Prince George’s County Police Department, police recovered numerous items of property belonging to the third and fifth victims, as well as victims from unrelated cases. Banks was arrested on Sept. 4, 2015.
In announcing the verdicts, U.S. Attorney Phillips and Interim Chief Newsham commended the work of detectives from the Metropolitan Police Department’s Sexual Assault Unit and Fourth Police District, as well as the Metro Transit Police Department. They also commended those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Patricia A. Riley, Chrisellen Kolb, and Deborah Sines; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Paralegal Specialists D’Yvonne Key, Angelina Slagle, Michelle Wicker, Kathryn Hoey, and Benjamin Kagan-Guthrie; Victim/Witness Advocates Lezlie Richardson, Tracey Hawkins, and Veronica Vaughan; Litigation Technology Specialists Leif Hickling and Anisha Bhatia; David Foster, Katina Adams-Washington, and La June Thames, all of the Victim/Witness Assistance Unit; Criminal Investigators Durand Odom and Mark Crawford; Investigative Analysts William Hamann and Sharon Johnson, and Computer Forensic Examiner John Marsh. Finally, they acknowledged the efforts of Assistant U.S. Attorneys Jason Park and Julianne Johnston, who investigated and are prosecuting the case.
Manhattan United States Attorney Announces Charges Against Turkish and Iranian Nationals for Conspiring to Evade U.S. Sanctions Against Iran and Other OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging HABIBOLLAH ZAREI, a/k/a “Adasi Habik,” a/k/a “Emre Polatkan,” BORA DENIZ, NESTEREN ZAREI DENIZ, and ABDULLAH EVREN ERDEM with using the U.S. financial system to conduct hundreds of millions of dollars’ worth of transactions on behalf of the Government of Iran and other Iranian entities, which were barred by United States sanctions; laundering funds in connection with those illegal transactions; and defrauding several financial institutions by concealing the true nature of these transactions. The four defendants are alleged to have orchestrated fraudulent transactions that were intended to hide the fact that the transactions were for the benefit of Iranian entities and to have laundered funds in connection with that illegal activity. The case is assigned to United States District Judge Crotty.
All four defendants currently remain at large.
Manhattan U.S. Attorney Preet Bharara stated: “As alleged, these defendants conspired and schemed to hide millions of dollars’ of financial transactions specifically to evade U.S. sanctions laws. These alleged transactions were criminal violations of long-standing economic sanctions against the government of Iran, and warrant strong legal action. This Office and its law enforcement partners are committed to policing sanctions laws designed to protect the security of the United States.”
Assistant Director-in-Charge William F. Sweeney Jr. stated: “The United States has stringent laws against dealings with Iran because of the threat posed to our national security. The subjects named in this case allegedly concealed how they were aiding entities in Iran, and knowingly evaded sanctions. Our job in the FBI is to make sure entities with ties to the Iranian government can’t use our banking and businesses communities to unwittingly harm our country by hiding their origin and intent.”
According to the allegations contained in the Indictment,[1] unsealed today in Manhattan federal court:
Beginning in 1979, the President has repeatedly found that the situation in Iran constitutes an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States and declared a national emergency to deal with the threat. Pursuant to these Presidential declarations, the United States has instituted a host of economic sanctions against Iran and Iranian entities pursuant to the International Emergency Economic Powers Act (the “IEEPA”). This sanctions regime prohibits, among other things, financial transactions involving the United States or United States persons that were intended for the Government or Iran or Iranian entities.
Between at 2014 and 2016, HABIBOLLAH ZAREI, BORA DENIZ, NESTEREN ZAREI DENIZ, and ERDEM conspired to conduct international financial transactions on behalf of and for the benefit of Iranian businesses. As part of the scheme, the defendants caused U.S. banks to conduct at least $100,000,000 in international financial transfers in furtherance of Iranian steel and copper transactions. Specifically, the defendants facilitated the export of thousands of tons of copper and steel from Iran, routing the financial transactions linked to these exports through U.S. financial institutions. Using shell companies, the defendants concealed from the U.S. banks, however, the fact that these transactions were related to metal exports from Iran.
* * *
HABIBOLLAH ZAREI, 67, is a resident of Turkey and dual citizen of Turkey and Iran. BORA DENIZ, 44, is a resident and citizen of Turkey. NESTEREN ZAREI DENIZ, 39, is HABIBOLLAH ZAREI’s daughter and BORA DENIZ’s wife, and is a resident of Turkey and dual citizen of Turkey and Iran. ERDEM, 32, is HABIBOLLAH ZAREI’s son-in-law and a resident and citizen of Turkey. Each defendant is charged with conspiracy to defraud the United States, which carries a maximum sentence of five years in prison; conspiracy to violate the IEEPA, which carries a maximum sentence of 20 years in prison; conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison; and conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and the Department of Justice, National Security Division, Counterintelligence and Export Control Section.
The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael D. Lockard and Sidhardha Kamaraju are in charge of the prosecution, with assistance from Elizabeth Cannon of the Counterintelligence and Export Control Section. Assistant United States Attorney Jaimie Nawaday is principally responsible for the forfeiture aspects of the case.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man who Oversaw Drug Trafficking Operations of Crips Street Gang Sentenced to 20 Years in Federal Racketeering CaseRead the Press Release
LOS ANGELES – A leading figure in the Five Deuce Broadway Gangster Crips (BGC) street gang has been sentenced to 20 years in federal prison after pleading guilty to racketeering and drug trafficking charges stemming from his role as the primary narcotics supplier to the gang.
Roosevelt Sumpter, also known as “TuTu,” 43, of Los Angeles, was sentenced on Monday to 240 months in prison by United States District Judge S. James Otero. After completing his prison term, Sumpter will be on supervised release for 10 years, and during that time he will be barred from residing in the gang’s claimed South Los Angeles territory.
Sumpter pleaded guilty in July to participating in a racketeering conspiracy, conspiring to distribute crack cocaine, illegally possessing a firearm, and selling crack cocaine near schools.
Sumpter acted as a “central drug supplier” to BGC, managed the operation of the gang’s “stash houses,” and supplied these locations with crack cocaine that was given to other BGC members for street-level sales, according to a sentencing memorandum filed by prosecutors. When he pleaded guilty, Sumpter admitted unlawfully possessing firearms, including a sawed-off shotgun, in connection with his drug trafficking on three separate occasions.
“In addition to being a prolific supplier of narcotics himself, this defendant employed other BGC gang members to run stash houses and directed them to transport drugs to other sellers,” said United States Attorney Eileen M. Decker. “Given his longtime involvement with the gang, his strong presence in the gang’s drug activities and because he was often armed, justice has been served with the imposition of the two-decade prison sentence.”
Sumpter was among 72 defendants charged in a federal racketeering indictment that targeted BGC, a street gang that claims territory in South Los Angeles and controls drug sales in an area just west of the “Skid Row” district of Los Angeles. The indictment outlined two decades of criminal conduct, including murders, robberies, extortion, illegal firearms possession, witness intimidation and narcotics trafficking.
Seventy-one of the defendants named in the indictment have now appeared in federal court to face charges in the indictment (the final defendant is in state custody), which include conspiracy to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO), violent crimes in aid of racketeering, a series of robberies that targeted bank customers, weapons offenses and various drug trafficking charges. Four other top defendants in the case are scheduled to go on trial January 3.
The two lead defendants in the RICO case – Tyrine Martinez and Tracy Harris – pleaded guilty this past summer to federal charges. Martinez and Harris are scheduled to be sentenced by Judge Otero on December 19, at which time both defendants will face potential life sentences and mandatory minimum prison terms of 15 and 10 years, respectively.
The investigation into BGC was conducted by agents and officers with the Federal Bureau of Investigation and the Los Angeles Police Department. Considerable assistance was provided during this investigation by the California Department of Corrections and Rehabilitation, the Torrance Police Department, the Buena Park Police Department, the El Segundo Police Department, the San Bernardino Police Department and the Los Angeles City Attorney’s Office.
The investigation into BGC, which was called Operation “Gremlin Riderz,” was jointly conducted by the FBI and the LAPD under the auspices of the FBI’s Task Force on Violent Crime in the City of Los Angeles.
This case is being prosecuted by Assistant United States Attorney Mack Jenkins of the Public Corruption and Civil Rights Section, and Assistant United States Attorneys Max Shiner and Wilson Park of the Violent and Organized Crime Section.
Louisville Convicted Felon Sentenced to 84 Months in Prison for Impersonating an Officer and Unlawful Transport of FirearmsRead the Press Release
Possessed a fake badge and several firearms when arrested
LOUISVILLE, Ky. – A Louisville convicted felon was sentenced in United States District Court today, by District Court Judge David J. Hale, to seven years in prison for impersonating an officer, on more than one occasion, and for unlawfully transporting firearms, announced United States Attorney John E. Kuhn, Jr.
“Connard impersonated a federal officer to accost, then assault people,” stated U.S. Attorney John Kuhn. “This false assertion of police power is exceedingly dangerous and creates a risk of undermining the good work of legitimate law enforcement. We are pleased the Court has dealt with this serious crime sternly and appropriately.”
Michael A. Connard, 28, was charged in a three-count federal grand jury indictment on November 11, 2015. He pleaded guilty to the charges on August 8, 2016 and has remained in federal custody.
According to the plea agreement, Connard admitted that on two separate occasions, on June 22, 2015, in Metro Louisville, he impersonated a police officer and on one occasion referred to himself as a “Federal Agent.” Further, Connard admitted that on both occasions he unlawfully possessed a firearm while being a convicted felon.
Connard, along with a second man, not charged in the federal Indictment, approached D.J. and ordered him out of his car near Hancock and East Gray Streets in Louisville. Connard was dressed in outwardly visible body armor, displayed a badge on a chain hanging from his neck, and identified himself as “police.” Connard brandished a firearm and struck D.J. causing a bruise on his forehead. Later in the same day, Connard repeated the activity with another victim, J.S., and in this instance, identified himself as a “Federal Agent.” Connard forced J.S. from his vehicle in the 500 block of South Clay Street in Louisville and in doing so, brandished a firearm and struck J.S. in the forehead.
Louisville Metro Police Officers were alerted to these activities and arrested Connard in the 800 block of East Chestnut Street. Officers found the defendant armed with a Taurus PT 24/7, 40 caliber handgun and a Kel-Tec, .380 and a fake badge that was carried by Connard.
In addition to the firearms which were in Connard’s possession at the time of his arrest, Connard possessed three additional firearms at his home including a .38 caliber snub nose revolver, a Bushmaster AR-15 type assault rifle, and a Savage Arms, Model 320, 12 gauge shotgun.
Further, Connard was a two time convicted felon. In 2006, he was convicted in Christian County Circuit Court of Burglary I and Possession of Burglary tools. Later in 2008, Connard was convicted in a separate case of Burglary II. Connard has pending charges in Jefferson County Circuit related to a similar incident on June 2, 2015.
This case was prosecuted by Assistant United States Attorney Randy R. Ream and was investigated by Louisville Metro Police and the with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Lexington Resident Sentenced to 78 Months for Receiving Thousands of Images of Child PornographyRead the Press Release
LEXINGTON, Ky. — A Lexington man, who was convicted earlier this year of receiving thousands of child pornography images, has been sentenced to 78 months in federal prison.
Today, Chief U.S. District Judge Karen K. Caldwell sentenced Xiang Wang, 32, for receipt of child pornography, and ordered him to serve 10 years of supervised release following the completion of his sentence. Under federal law, Wang will have to serve at least 85 percent of his prison sentence.
Wang previously admitted to possessing a computer that contained approximately 7,900 images depicting children engaged in sexually explicit conduct.
The investigation started in September of 2015, when an Internet Crimes Against Children (ICAC) Task Force Officer identified an internet user who was making child pornography pictures and videos available for download on the internet. The detective discovered the user was Wang. In December of 2015, law enforcement officers executed a search warrant at Wang’s residence and seized a computer and two external hard drives that contained the child pornography.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky; James M. Gibbons, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations; and Richard W. Sanders, Kentucky State Police Commissioner, jointly made the announcement.
The investigation was conducted by the Department of Homeland Security (DHS and the Kentucky State Police’s Electronic Crime Branch. Assistant U.S. Attorney David Marye prosecuted this case on behalf of the federal government.
Lead Methamphetamine Trafficker Sentenced to 23 Years in PrisonRead the Press Release
GREENEVILLE, Tenn. -- On Nov. 9, 2016, Richard Alan Davis, 44, of Atlanta, was sentenced to serve 23 years in federal prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, Davis will be supervised for five years by the U.S. Probation Office.
Davis pleaded guilty to a federal indictment charging him with conspiring to distribute methamphetamine (meth). He was a leader of a drug distribution network that trafficked high purity meth obtained in Atlanta into northeast Tennessee and southwest Virginia, operating out of several high-end hotel rooms in the Atlanta area and supplying dozens of conspirators with large quantities of meth.
The investigation into Davis and his associates resulted in a series of nine federal cases in the Eastern District of Tennessee and dozens of individuals prosecuted by the state of Tennessee in the Third Judicial District. Related cases were also brought in the U.S. District Court for the Western District of Virginia and by the Tennessee First Judicial District Attorney General. Davis was the primary source of supply of the dozens of individuals prosecuted in these related cases. The operation has also resulted in the seizure of approximately five kilograms of meth and 20 firearms.
This investigation was a multi-year collaborative effort of numerous law enforcement agencies including the Greene County Sheriff’s Office, Greeneville Police Department, Hawkins County Sheriff’s Office, Third Judicial Drug Task Force, First Judicial Drug Task Force, Sandy Springs (Georgia) Police Department, Hall County (Georgia) Sheriff’s Office, Tennessee Bureau of Investigation, U.S. Department of Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Drug Enforcement Administration. The Third and First Judicial District Attorney’s Offices in Tennessee actively partnered with the U.S. Attorney’s Office in a coordinated effort to advance this operation. The Rabun County, Georgia District Attorney’s Office provided critical early assistance. The U.S. Attorney’s Office for the Western District of Virginia also provided assistance in the shared efforts to combat Davis’ drug trafficking operations. Assistant U.S. Attorney Zachary Lee represented the United States in the Western District of Virginia. Assistant U.S. Attorney J. Christian Lampe represented the United States in the Eastern District of Tennessee.
This prosecution was brought as a part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.