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9 November 2016
Two Chicago Men Charged with Federal Drug and Firearm Violations in Connection with the Sale of Heroin on West SideRead the Press Release
CHICAGO — Two Chicago men have been charged with federal drug and firearm violations for allegedly selling heroin out of a backyard in the North Lawndale neighborhood.
DIANTE DAVIS and MARKIEASE COUSINS were arrested on Oct. 17, 2016, after they sold four zip-lock bags of heroin to an undercover law enforcement officer in the backyard of a residence in the 3400 block of West Lexington Avenue in Chicago, according to a criminal complaint filed in U.S. District Court. After purchasing the heroin, the undercover officer turned to leave, but Davis called him back and pointed a handgun in the officer’s face, the complaint states. Davis accused the officer of working for law enforcement, saying “You’re probably recording me right now,” according to the complaint.
As it turned out, the drug deal was indeed surreptitiously videotaped by law enforcement, according to the complaint. Davis and Cousins were placed under arrest shortly thereafter, the complaint states. The undercover officer was not harmed.
Davis, 27, and Cousins, 19, are each charged with one count of conspiracy to distribute a controlled substance and one count of carrying a firearm during a drug trafficking crime. Davis is scheduled to make an initial appearance on Nov. 10, 2016, before U.S. Magistrate Judge Susan Cox. Cousins is scheduled to appear for a detention hearing on Nov. 14, 2016, before Judge Cox.
The complaint was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; and Chicago Police Superintendent Eddie Johnson. The Illinois State Police assisted in the investigation, which was conducted with the U.S. Organized Crime Drug Enforcement Task Force (OCDETF) Chicago Strike Force and the Chicago High Intensity Drug Trafficking Task Force (HIDTA).
According to the complaint, when Davis was taken into custody he was found to be in possession of a second firearm and additional zip-lock bags of narcotics. Some of the drugs contained a mix of heroin and fentanyl, while some was cocaine, the complaint states.
The drug conspiracy charge carries a maximum sentence of 20 years in prison, while the firearm count is punishable by a minimum sentence of five years and a maximum of life. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Erik Hogstrom.
Twenty-Nine People Indicted in Multi-Agency Law Enforcement Operation Centered in Pompano BeachRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Carlos M. Gonzalez, Public Information Officer, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Amos Rojas, Jr., United States Marshal, United States Marshals Service Fugitive Task Force, announce the filing of federal charges against 29 defendants in 23 separate cases for their alleged participation in criminal conduct, including a narcotics trafficking conspiracy, narcotics trafficking offenses and firearms-related violations.
During the course of the law enforcement operation, the defendants, as charged, sold a total of 285 firearms to undercover officers, including AR-15s, AKs, pistols, revolvers, a short barrel rifle and a police sniper rifle. The charged defendants also collectively sold heroin, flakka, cocaine, oxycodone and marijuana to undercover law enforcement officers.
United States Attorney Wifredo A. Ferrer stated, “It is because of the collective law enforcement efforts of our federal and local partners that 285 unlawfully possessed firearms were taken off of Broward County streets. Today’s announcement should serve as a reminder to those who contaminate the communities we live in with criminal activity that we will continue to work tirelessly to prosecute these important cases.”
“The streets are safer, and the good people of Pompano Beach can sleep a little easier knowing that these drug dealers and firearms traffickers are off the street. Their days of dealing drugs and selling firearms, perpetuating violence in our community, are over. ATF works extensively with local law enforcement to investigate, apprehend and prosecute those who use firearms to commit acts of violent crime in our communities. This investigation is a perfect example of how local and federal agencies working together can remove criminals from the streets of our communities. ATF commends our federal and local law enforcement partners, especially the leadership of U.S. Attorney Wifredo A. Ferrer and his office in the relentless prosecution of armed, violent and dangerous offenders,” said Carlos M. Gonzalez, Public Information Officer ATF Miami Field Division.
“This is a prime example of how one crime is almost always related to and/or leads to another type of criminal activity. Where there is drug trafficking, often times there are guns associated with the activity and when combined; there is a definite danger to innocent people. DEA remains committed and dedicated to stopping criminals in their tracks, and getting them off the streets through joint efforts with our law enforcement partners,” stated DEA Special Agent in Charge Adolphus P. Wright.
“Through diligent efforts, this successful partnership identified, investigated and secured prosecution for more than two dozen dangerous individuals responsible for narcotics and firearms trafficking, throughout South Florida,” said Broward Sheriff Scott Israel. “We’ll never know how many crimes we prevented with these arrests, but our residents and visitors are safer with these criminals off the street.”
“Locating and arresting individuals who engage in criminal activity is the primary day to day mission of our fugitive task force in the Southern District of Florida, as well as working with law enforcement officers from a variety of different agencies,” stated U.S. Marshal Amos Rojas Jr. “There is no doubt taking these alleged criminals off our streets “saves lives.” The men and women of the U.S. Marshals Service in South Florida take great pride in accomplishing this dangerous mission.”
The Indictments announced today relate to law enforcement’s collective efforts to combat unlawful firearms offenses and narcotics trafficking in the Pompano Beach area.
Charged in firearms-related Indictments are Francisco Lazaro Acosta, a/k/a “Chino,” 31, of Fort Lauderdale, James Rodney Baker, a/k/a “Bake,” a/k/a "Bubba,” 32, of Pompano Beach, Terrance Roshaud Demps, a/k/a “J.R.,” 28, of Pompano Beach, Rashaun Gaskin, a/k/a “Shaun,” 19, of Fort Lauderdale, Davon Gilbert, a/k/a “Von,” 19, of Plantation, Edwin Nathan Oliver, a/k/a Edwin Olivert,” 35, of Deerfield Beach, Adrian Stephens, 24, of Tamarac, and Otis Thomas, a/k/a “Fat,” 25, of Pompano Beach.
Acosta, Baker, Demps and Thomas are also charged with narcotics-related offenses.
Charged in narcotics-related Indictments are Alex Bernadin, a/k/a “Ace,” 33, of Deerfield Beach, Jamise Bozeman, a//k/a “J,” 25, of Pompano Beach, Antonio Brown, a/k/a “Big T,” 38 of Pompano Beach, Marcus Depre, 28, of Pompano Beach, Ronald Dutervil, a/k/a “Chris,” 30, of Pompano Beach, Kurt Edward Hanford, 52, of Pompano Beach, Frantz Jacques, a/k/a “Tim,” 34, of Lauderdale Lakes, Terrance Jacsaint, a/k/a “TJ,” 26, of Lantana, Dieuphen Joseph, 28, of Pompano Beach, Vila Desir Jozama, a/k/a “V,” 25, of Pompano Beach, Awince Lasseur, a/k/a “Snowman,” 28, of Pompano Beach, Seaton Letts, Jr., 30, of Pompano Beach, Anthony Tavaris Morris, a/k/a “Amp,” 33, of Pompano Beach, Rodney Levon Newkirk, 20, of Lauderhill, Denny Prenelus, a/k/a “DC,” 25, of Pompano Beach, Wisley Prenelus, a/k/a “Wis,” 33, of Pompano Beach, Walson Prophilis, a/k/a “Wat Wat,” 32, of Pompano Beach, Douglas Tavaris Russell, a/k/a/ “T,” 31, of Pompano Beach, Henry D. Smith, a/k/a “Boss,” 36, of Fort Lauderdale, Michel-Ange Silien, 29, of Pompano Beach, and Jason Howard Tripp, a/k/a “Gucci Guch,” 31, of Boynton Beach.
Mr. Ferrer commended the investigative efforts of ATF, DEA, BSO and the U.S. Marshals Service Fugitive Task Force. This case is being prosecuted by Assistant U.S. Attorneys Bruce Brown, Corey Steinberg, Lawrence D. LaVecchio, Terry Lindsey, William T. Shockley.
An Indictment is only an accusation 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.
Tuscaloosa Men Sentenced to Prison for Conspiracy to Distribute Marijuana through the U.S. MailRead the Press Release
BIRMINGHAM – A federal judge today sentenced two Tuscaloosa men to prison for conspiring to distribute marijuana through the U.S. mail and bribing U.S. Postal Service employees to deliver the drug, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, U.S. Postal Inspector in Charge Adrian Gonzalez and West Alabama Narcotics Squad Capt. Wayne Robertson.
U.S. District Judge L. Scott Coogler sentenced MANUEL JOHNSON Jr., 36, to nearly five years in prison for the drug conspiracy, plus three years in prison for violating federal probation, which he was on for a 2001 conviction for conspiracy to distribute cocaine. The judge ordered that those sentences be served consecutively, for a total sentence of seven years and 10 months. Johnson must serve three years of supervised release following his prison term.
Judge Coogler sentenced QUINCY TERRELL DOSS, also 36, to four years and three months in prison, to be followed by 10 years of supervised release. Both Johnson and Doss remain in custody.
“Employees of the U.S. Postal Service cannot be allowed to compromise our faith in the integrity of the U.S. mail,” Vance said. “My office is committed to prosecuting anyone who would attempt to bribe postal workers to help them carry out criminal deeds, as well as prosecuting corrupt postal workers.”
“This case is another example of the FBI’s commitment to addressing bribery and corruption at every level,” Stanton said. “I applaud the sentences handed down today and trust it will send a clear message to others who may be considering engaging in similar conduct.”
“The Postal Service is in the business of moving the U.S. mail. It has no interest in being an unwitting accomplice to anyone using the U.S. mail to distribute illegal drugs, and is committed to root out such conspiracies,” Gonzalez said.
“Our team is focused on stopping illegal drugs from coming onto Tuscaloosa County streets, whether those drugs come here by traditional means, or through mail and package services,” Robertson said. “We will continue to work with our law enforcement partners to stem that flow.”
Both Johnson and Doss pleaded guilty in July to conspiracy to distribute marijuana and conspiracy to bribe public officials. The two men recruited three Tuscaloosa postal employees to deliver drugs – Lenard Pompey, 39, a supervisor, and two mail carriers, Lyle Jones, 36, and Jocelin Latrice Betts, 28. All three postal employees pleaded guilty to the bribery and conspiracy to distribute marijuana charges. Pompey and Jones acknowledged that they accepted money from Doss to deliver packages containing marijuana. Betts acknowledged that she provided addresses where packages of marijuana could be delivered and that she accepted money from Johnson to retrieve the packages and take them to Johnson or to a man Johnson had introduced her to, who turned out to be an FBI informant.
According to court records, Johnson and Doss ran the conspiracy in Tuscaloosa County between August 2014 and July 30, 2015.
The FBI, U.S. Postal Inspection Service and West Alabama Narcotics Squad investigated the case, which Assistant U.S. Attorney Brad Felton prosecuted.
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Toledo man pleads guilty to hate crime for beating African-American strangerRead the Press Release
Charles Butler, 33, of Toledo, pleaded guilty today to a federal hate crime for beating an African-American stranger he saw on the street.
The plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
According to his guilty plea, on May 18, 2016, Butler and Robert Paschalis drove past the victim, A.W., on the street while A.W. was unloading items from his truck. The two men circled back, got out of their own truck and began attacking A.W. while yelling racial slurs. Butler grabbed a broom from the back of A.W.’s truck and struck A.W. with it multiple times. Butler admitted during his plea to singling out and beating A.W. because he is African American.
The beating stopped only when two off-duty Ohio state police officers happened on the scene and pulled Butler and Paschalis away. A.W. suffered an orbital fracture and damage to his right eye. Butler later posted on Facebook that the attack was “in the name of the White Race.”
“Race-motivated violence violates the law and offends human decency,” said Principal Deputy Assistant Attorney General Gupta. “The Justice Department will always vigorously prosecute those who carry out violence against individuals because of the color of their skin – crimes which threaten the very fabric and core values of our country.”
“Northern Ohio is a mosaic of different races, ethnicities and backgrounds,” said U.S. Attorney Rendon. “This defendant tried to strike at the diversity we cherish by participating in an unprovoked attack based solely on the victim’s race. He is now likely headed to prison, while we will continue to work together to ensure that everyone’s civil rights are protected.”
“These individuals engaged in a violent assault against another person based on his race and are now being held accountable,” said Special Agent in Charge Anthony. “The FBI will continue to work with our law enforcement partners to ensure hate crimes are thoroughly investigated and prosecuted to the greatest extent of the law.”
Paschalis has also been charged with a hate crime. His charges are still pending. An indictment is merely an accusation and defendants are presumed innocent unless proven guilty.
This case is being investigated by the FBI Cleveland Division’s Toledo Resident Agency, in cooperation with the Toledo Police Department and the Lucas County Prosecutor’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael Freeman of the Northern District of Ohio and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Three Sentenced in Oxycodone CaseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WALLACE STOGNER, age 61, of Bogalusa; DANIELLE MEISNER, age 31, of Mandeville; and KAREN SMITH, of Slidell, were each sentenced today in connection with an investigation into the illegal diversion of Oxycodone pills through a clinic formerly operating in Bogalusa and New Orleans East. Oxycodone is a prescription-only Schedule II controlled substance and a highly addictive and abused opioid drug.
U.S. District Judge Kurt D. Engelhardt sentenced STOGNER, who had previously pled guilty to two counts of illegal distribution of Oxycodone, to 25 months’ imprisonment, 4 years of supervised release, and a $200 special assessment. MEISNER, who had previously pled guilty to conspiracy to obtain Oxycodone through misrepresentation and subterfuge, was sentenced to 20 months’ imprisonment, 1 year of supervised release, a $1,000 fine, and a $100 special assessment. SMITH, who had also pled guilty to the conspiracy charge, was sentenced to 4 years of probation and a $1,000 fine.
U.S. Attorney Polite praised the work of the DEA Tactical Diversion Squad in investigating this matter. Assistant United States Attorney Michael B. Redmann was in charge of the prosecution
Three Columbia Men Sentenced for Distributing Synthetic Heroin, Resulting in DeathRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three Columbia, Mo., men have been sentenced in federal court for their roles in distributing synthetic heroin, which resulted in the death of an 18-year-old man.
Marquette Deandre Murrell, 26, Nick Connor Burris, 22, and Nathaniel Dean Rodgers, 23, all of Columbia, were sentenced in separate appearances before U.S. District Judge Stephen R. Bough on Tuesday, Nov. 8,2016. Murrell was sentenced to five years in federal prison without parole. Burris was sentenced to three years in federal prison without parole. Rodgers was sentenced to five years of probation.
Murrell and Burris each pleaded guilty to participating in a conspiracy to distribute acetyl fentanyl (synthetic heroin) in August 2015. Rodgers pleaded guilty to maintaining a place for the purpose of distributing and using acetyl fentanyl.
Columbia Police Department officers were dispatched to an apartment in the 2400 block of West Broadway in reference to a drug overdose at approximately 12:33 a.m. on Aug. 9, 2015. Upon arrival, officers located an 18-year-old deceased white male. Burris admitted that he supplied the drug which the deceased man had taken immediately prior to overdosing. The toxicology report from the autopsy of the deceased male identified the cause of death as an overdose by the combination of acetyl fentanyl and cocaine that was ruled an accident.
Officers located a bag containing the synthetic heroin on Burris. Burris admitted to purchasing the heroin the deceased man took from Murrell, and bringing it to the apartment where the overdose occurred. Burris also commented that Murrell told him the heroin was 95 percent pure, and that efforts should be made to dilute the purity by adding a cutting agent. Burris mixed the synthetic heroin with Benadryl before distributing it to the victim.
Rodgers stated that he allowed Burris, who brought what Rodgers believed to be heroin, to come to his apartment. On the previous morning, Aug. 8, 2015, Burris had distributed a “speedball” to Rodgers. Rodgers believed the “speedball” contained heroin and cocaine. Rodgers reported that he overdosed but lived. Thereafter, Rodgers helped Burris cut the purity of the drug by adding Benadryl to the substance.
The deceased male used the substance mixed by Burris and Rodgers. Others at Rodgers’ apartment attempted to revive the deceased male by placing him in cold water and then attempting to have him vomit. Rodgers estimated that 10 minutes passed before emergency responders arrived at his apartment.
At approximately 7 p.m. the same day, Murrell was located near downtown Columbia and taken into custody. Murrell was in possession of a bag containing numerous suspected Alprazolam pills and approximately four grams of synthetic heroin. Murrell admitted that he supplied the drug that Burris mixed with Benadryl and distributed to the deceased male.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Columbia, Mo., Police Department and the Drug Enforcement Administration.
Telly Hankton and Three Gang Associates Receive Life SentencesRead the Press Release
U.S. Attorney Kenneth A. Polite announced today the sentencing of Telly Hankton and three members of the Hankton Organization.
According to the court documents, members of this organization and their associates ran a violent drug ring in and around the City of New Orleans dating back to 1996. During the course of this organization’s life, its members and associates killed rival drug dealers, intimidated witnesses who dared to cooperate with law enforcement, attempted to obstruct the state criminal justice system by having associates provide false alibi testimony in state court, and killed witnesses, along with a witness’ family member, in an effort to obstruct justice. Each defendant listed below was convicted by a federal jury on June 29, 2016, following a three-week jury trial.
U.S. District Judge Martin L.C. Feldman sentenced the defendants as follows:
TELLY HANKTON, age 40, was sentenced to life imprisonment. TELLY HANKTON was convicted of:
- one count of Racketeer Influenced and Corrupt Organizations Act (RICO);
- one count of conspiracy to distribute controlled substances;
- one count of conspiracy to possess firearms;
- three counts of murder in aid of racketeering (Darvin Bessie, Darnell Stewart Jesse Reed); and,
- three counts of causing death through the use of a firearm.
WALTER PORTER, age 40, was sentenced to life imprisonment. PORTER was convicted of:
- one count of Racketeer Influenced and Corrupt Organizations Act (RICO);
- one count of conspiracy to obstruct justice;
- three counts of murder in aid of racketeering (Jesse Reed, Hasan Williams, and Darnell Stewart);
- three counts of causing death through the use of a firearm; and,
- three counts of felon in possession of a firearm;
- one count of assault with a dangerous weapon in aid of racketeering;
- one count of use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime.
ANDRE HANKTON, age 38, was sentenced to life imprisonment. ANDRE HANKTON was convicted of:
- one count of conspiracy to possess firearms;
- one count of causing death through the use of a firearm; and,
- one count of possession of a short-barreled shotgun.
KEVIN JACKSON, age 43, was sentenced to life imprisonment. JACKSON was convicted of:
- one count of Racketeer Influenced and Corrupt Organizations Act (RICO); and
- one count of murder in aid of racketeering (Jesse Reed).
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Elizabeth Privitera, William J. Quinlan, Jr., David Haller, and Brittany Reed were in charge of the prosecution.
Statement of U.S. Attorney John A. Horn, Northern District of Georgia Before the Georgia Senate Opioid Abuse Study CommitteeRead the Press Release
Senator Unterman and distinguished members of the Opioid Abuse Study Committee, thank you for the opportunity to discuss the Department of Justice’s efforts aimed at combatting the growing problems we face with heroin and opioid abuse in our state. During my fourteen years with the United States Attorney’s Office for the Northern District of Georgia, I have witnessed firsthand the crippling effects that heroin and opioid addiction and overdoses have on all our communities. As the U.S. Attorney, I am proud that my district has been working aggressively on this problem and I’m pleased to be able to offer our perspective regarding the threats to our state.
The United States is experiencing a crisis in the abuse of, and overdose deaths caused by, heroin and its more potent analogue, fentanyl. This epidemic is ravaging countless communities, whether large or small, urban or rural. Heroin overdose deaths quadrupled from 2000 to 2013, with most of the increase occurring after 2010. As a result, heroin and fentanyl abuse is the number one public health issue for cities such as Cleveland, Baltimore, Philadelphia, as well as more rural communities in West Virginia and New England.
Outlook for the Atlanta Region: Background and Causal Factors
Georgia fortunately has not experienced the exponential increases that are ravaging the Midwest and Northeast, but our situation is precarious. We began seeing disturbing spikes in heroin distribution and overdoses in the Atlanta region several years ago, and our statistics remain dramatically higher than anything we’ve seen in the last 20 years. And, our region appears to be tracking the progression of the worst-hit communities, where those addicted to prescription painkillers transition to cheaper and more deadly substitutes, heroin and fentanyl. The CDC estimates that 75 percent of heroin abusers today begin their descent into addiction with prescription drugs, and five years ago Georgia’s illicit opioid market skyrocketed, with overdose deaths from prescription drugs exceeding the combined overdose deaths from cocaine, methamphetamine, and marijuana. Georgia therefore offered a broad base of opioid abusers who were at greatest risk to turn to $5 doses of heroin instead of illicit pills that cost $25 or more.
At the same time, the Atlanta region’s marketplace shifted, as for many years heroin sales were largely limited to specific neighborhoods in downtown Atlanta. Unfortunately, Atlanta has long served as a distribution hub for Mexican drug cartels, which noticed the increased demand for heroin and immediately began manufacturing and importing higher-quality heroin to service the growing U.S. customer base. Consequently, heroin has become readily available through these existing distribution channels throughout the region but especially in counties north of Atlanta, giving addicts access to much purer, cheaper, and more potent heroin. It also is now available in powder form that need not be injected intravenously, removing a barrier for use for some. A helpful and thorough summary of this narrative is presented in a report published by the Fulton County District Attorney’s Office, and can be accessed at http://www.atlantada.org/Fulton_County_Heroin_Project___Final_Report.pdf.
Outlook for the Atlanta Region: Recent Statistics
The statistics for the Atlanta region may not be as shocking as in the country’s hardest hit communities, but they are nonetheless stunning. For example,
- Cobb County experienced a growth from 8 heroin overdose deaths in 2010 to 53 in 2014. Through the first half of 2015, half of the county’s overdose deaths involved heroin.
- DeKalb County had only 9 heroin overdose deaths in 2013, and jumped to 27 in the first 11 months of 2015, with 21 of those involving fentanyl.
- Fulton County recorded 4 heroin overdose deaths in 2010, and jumped to 31 in 2013 and 77 in 2014.
- Gwinnett County experienced a rash of 17 heroin overdose deaths in a several month period during the fall of 2015.
These statistics are consistent with seizures and interdictions by law enforcement. On March 1, 2016, agents recorded the largest seizure of fentanyl on record in Georgia, and one of the largest in the United States, during a traffic stop conducted in Bartow County, yielding a total of 40 kilograms of fentanyl. This seizure is even more staggering when considering that fentanyl is dosed in micrograms.
Creation of the Heroin Working Group
After we noticed the increased heroin activity in our cases about three years ago, the U.S Attorney’s Office convened a Heroin Summit in June 2015, gathering nearly 200 law enforcement and other multidisciplinary participants to take note of these trends, hear from experts in our sister cities, and begin planning our response. Those who participated expressed interest in continuing the collaborative momentum from the summit, and consequently the Heroin Working Group (HWG) was born.
The purpose of the Heroin Working Group is to employ a broad, multidisciplinary approach to understand and address the growing abuse of heroin, fentanyl, and prescription opioids in our community. Several state agencies are active participants in the HWG. Certainly, law enforcement has a critical role in interdicting and prosecuting the importers and distributors of these deadly substances, as well as a broader responsibility in deterring and preventing drug abuse. However, we recognize that a truly impactful solution to this problem cannot be achieved by arrests and prosecutions alone, and instead requires involvement and contributions from the medical, education, public health, emergency response, public policy, addiction treatment, mental health, and other communities. The HWG fills this need, bringing together participants from all these constituencies to share information and break down the walls that separate these disciplines and allow us to solve these problems together.
The HWG meets every other month, and has created subcommittees for members to focus on research and data collection; medical and treatment issues; education, prevention, and family intervention; law enforcement and criminal justice; and legislative and public policy initiatives. After meeting for almost a year and a half, the HWG has gained a deeper understanding of the current landscape as well as several strategies and initiatives that will reduce the threats from opioid addiction and abuse.
Working Group Initiatives
While our region certainly is suffering from substantial growth in heroin and fentanyl abuse, Georgia and the south in general have not seen the exponential increases that have simply devastated the Midwest and Northeast. However, we fear this crisis is creeping further south. Helpfully, Georgia already has enacted good Samaritan laws and sanctions the use of opioid antagonists such as naloxone to revive those who have overdosed, both of which are critical tools to fighting this epidemic.
There is much more to be done, and the HWG presently is focusing on several initiatives, including:
- The creation of a centralized database to collect cause of death reports from all coroners and medical examiners, as well as medical reports of overdoses from emergency rooms, paramedics, and peace officers. The lack of such a database prevents us from accurately identifying the scope of the problem and directing the necessary resources to it. An informal collaborative effort has yielded the bones of a database that contains drug overdose deaths only. This has provided many of the preliminary (and alarming) statistics quoted above and confirmed our anecdotal information about this problem. But the reporting is incomplete and often months late, as currently there is no mandatory reporting in the State.
- The creation of a card that will be provided to people who are revived after overdosing from heroin, urging them to seek treatment and providing them with a list of resources to do so.
- The dissemination of a law enforcement protocol that peace officers can use when responding to an overdose, so that critical investigative facts can be collected and shared among jurisdictions to aggressively identify and prosecute the distributors of these dangerous substances.
- Supporting a strong and effective prescription drug monitoring plan (PDMP) that has been shown in other states to dramatically reduce the availability and abuse of illicit prescription drugs.
- The encouragement of educational and prevention events in schools, universities, and communities. The HWG has sponsored two community forums, one of which was livestreamed by WSB-TV and via our office’s Facebook page and Twitter.
- The identification of a comprehensive listing of addiction treatment providers to help direct those in need of services and evaluate whether the inventory of service providers is sufficient to address the current needs.
The list of people who are actively involved with the HWG is quite impressive. What is even more impressive is that these members have contributed time and resources voluntarily, with no funding. The dedication of these individuals and agencies to address this public health crisis has been extraordinary, and they have accomplished much as noted above. However, several of the initiatives taken on by the HWG certainly could be much more impactful if they were operated or implemented by a funded entity or by a public policy entity. There is certainly much more that can be done, and we must stay ahead of the problem before it becomes as pervasive and dire as experienced in the Midwest and Northeast.
The U.S. Attorney’s Office will aggressively combat the abuse of heroin, fentanyl, and illicit opioids in our communities, and we will continue our ongoing partnerships with federal, state, and local law enforcement agencies to arrest and prosecute those responsible for perpetuating this crisis. We also are committed to supporting the HWG in a broader, multidisciplinary approach to solving this problem, and welcome and encourage any and all support to achieve this outcome. <END>
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
St. Albans woman pleads guilty to conspiracy to obtain pain pills by fraudRead the Press Release
CHARLESTON, W.Va. – A St. Albans woman pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Luci Jane McCormick, 39, entered her guilty plea to conspiracy to obtain controlled substances by misrepresentation, fraud, forgery, deception, and subterfuge.
McCormick admitted that between April 12, 2015, and May 7, 2015, she and a codefendant recruited other individuals to fraudulently obtain pain pills. The recruited individuals were directed by McCormick or the codefendant to go to pharmacies in the Kanawha County area to obtain oxycodone and Xanax by presenting fraudulent and forged prescriptions to the pharmacies. The recruited individuals would be paid cash to fill the fraudulent prescription or allowed to keep a small amount of the pain pills fraudulently obtained. The remaining pills were returned to McCormick and the codefendant.
McCormick faces up to four years in federal prison when she is sentenced on February 16, 2017.
The case against McCormick was investigated by the Dunbar Police Department, the South Charleston Police Department, and the Drug Enforcement Administration. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Springfield, Columbia Men Sentenced for Drug-trafficking ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three co-defendants were sentenced in federal court today for their roles in a conspiracy to distribute crack cocaine and powder cocaine in Boone County, Mo.
Ryan D. Wright, 39, of Springfield, and Marcus Dion Jordan, 36, and Kenneth Scott, Jr., 27, both of Columbia, were sentenced in separate appearances before U.S. District Judge Stephen R. Bough. Wright was sentenced to four years and two months in federal prison without parole. Jordan was sentenced to four years in federal prison without parole. Scott was sentenced to five years of probation.
Wright pleaded guilty on March 2, 2015, to his role in the drug-trafficking conspiracy. Wright also pleaded guilty to using a telephone to promote the conspiracy and to being a felon in possession of firearms.
Wright admitted that, in the spring of 2014, he traveled to Columbia to meet with co-defendant Malcolm Desean Redmon, also known as “Harp,” 33, of Columbia. They had each agreed to show the other parts of his business. Redmon explained the drug-trafficking business to Wright, and asked Wright to supply him with a prostitute for his own business. Prior to that time, Wright had purchased quantities of cocaine from Redmon and knew that Redmon sold and distributed cocaine to others. Redmon knew that Wright supplemented his regular income with revenue from female prostitutes.
Wright admitted that, over the time charged, he received approximately half a pound of cocaine powder from Redmon, and that he had it converted into at least 112 grams of crack cocaine, which he distributed. When Wright was arrested on Nov. 13, 2014, he was in possession of a Taurus .357-caliber revolver, a Ruger .38-caliber revolver and ammunition.
Jordan pleaded guilty on April 5, 2016, to his role in the drug-trafficking conspiracy. Jordan admitted that his residence, where he lived with his mother, was used as a meeting place, and a location from which crack cocaine, powder cocaine and marijuana were distributed. Conspirators also cooked cocaine into crack at that location. On at least one occasion, Redmon gave Jordan’s mother money for utilities in return for use of the premises. Jordan was also given some cocaine for allowing the use of his home, which he either used or distributed.
When law enforcement officers executed a search warrant at Jordan’s residence they found bags of marijuana and drug paraphernalia. In the garage, officers found two handguns, a Jennings .22-caliber pistol and a Phoenix Arms .25-caliber pistol.
Scott pleaded guilty on April 26, 2016, to using a telephone to facilitate a drug-trafficking crime. Scott’s father and co-defendant Kenneth Scott, Sr., 48, of Fulton, Mo., was in the business of distributing cocaine. Scott, Jr., was not a significant distributor but was a trusted member of the drug-trafficking conspiracy who admitted that he assisted his father with acts that facilitated the conspiracy.
One of the ways which Scott, Sr. would get cocaine to his customers was to arrange to have a key left in a car or truck, and once the customer had ordered and paid for the cocaine, the customer was told where the key was located. The customer could then use the key on the car or truck they were directed to, and pick up the cocaine. On June 13, 2014, Scott Sr. agreed to sell a person powder cocaine and told the person he would have Scott, Jr., take a key to him so that he could have access to what he was purchasing. Immediately afterward, Scott Sr. called his son on the phone and instructed him to go and get a key and hide it in the back of a truck so that a person could pick it up and use it. Once Scott, Jr., had complied with his father’s request to hide the key, he called him and told him that he had hidden the key in the truck in a gum box.
Wright, Jordan and Scott, Jr., are among 17 defendants in this case who have been sentenced; nine defendants have pleaded guilty and await sentencing.
Scott was sentenced on Sept. 29, 2016, to 10 years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy, to being a felon in possession of firearms and to money laundering. Scott admitted that he was a major distributor of cocaine to various persons in the mid-Missouri area, including Columbia and Fulton. Scott was responsible for distributing more than six kilograms of cocaine, some of which had been converted into many pounds of crack cocaine.
Redmon was sentenced on Sept. 29, 2016, to 24 years and four months in federal prison without parole. Redmon pleaded guilty to participating in a conspiracy to distribute five kilograms or more of powder cocaine and crack cocaine in Boone County from November 2011 to August 2014.
According to court documents, Redmon – the leader of the criminal conspiracy – and those working for him received a total of four kilograms of powder cocaine over the course of the conspiracy. During the investigation, law enforcement purchased 216.78 grams of crack cocaine and 46.04 grams of powder cocaine from members of the conspiracy. Law enforcement also seized 55.5 grams of crack cocaine and 93.63 grams of powder cocaine. The interception of telephone calls and statements made by co-defendants reflected a substantial number of additional transactions between members of the conspiracy. Court documents also cite Redmon’s involvement in numerous shooting incidents and his history of criminal activity, including violent crimes and drug use.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation, the Columbia, Mo., Police Department, the Boone County, Mo., Sheriff’s Department, the U.S. Marshal’s Service, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group), the Drug Enforcement Administration and the Boone County, Mo., Prosecuting Attorney’s Office.
Serial Robber Sentenced to 7 Years in PrisonRead the Press Release
RICHMOND, Va. – Richard Charles Frey, 41, of East Moriches, New York, was sentenced yesterday to 84 months in prison for bank robbery. Frey was ordered to pay restitution of $4,785 to four bank victims.
Frey pleaded guilty on August 5. According to court documents, on March 9, Frey walked into a Wells Fargo Bank branch in Chesterfield, and passed a note to a teller demanding money. Understanding Frey’s intent to rob the bank, the teller turned over to him $780. As part of the statement of facts in support of his plea, Frey also acknowledged he robbed a Capital One Bank in Shirley, New York of $2,600 on February 24; a JP Morgan Chase Bank in, Holbrook, New York of $700 on February 29; and a BB&T Bank in Mount Airy, Maryland of $705 on March 14. He further admitted that he unsuccessfully attempted to rob a PNC Bank in Frederick, Maryland, on March 13.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Stephen W. Miller prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-62.
Saratoga Man Convicted of Wire Fraud and Making Misstatements to A Bank After Twelve-Day TrialRead the Press Release
SAN JOSE— A federal jury convicted Sanjiv Kakkar of wire fraud and making misstatements to a bank announced U.S. Attorney Brian J. Stretch and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The verdict, issued late yesterday, followed a twelve-day trial before the Honorable Edward J. Davila, U.S. District Judge.
The evidence presented at trial demonstrated that Kakkar, 55, of Saratoga, presented false information to a bank in connection with refinancing a hotel property he owned in Boulder Creek, Calif. In November of 2008, Kakkar sought to secure a $6 million loan to refinance the Brookdale Inn and Spa. In connection with the loan, he submitted to a bank falsified income information and tax returns that overstated his business income. Further, in the months that followed, Kakkar did not comply with his continuing obligation under the terms of the loan to provide the bank with updated financial records and further tax documents. In addition, the evidence at trial demonstrated that between January and June 2009, Kakkar fraudulently induced an escrow company to send hundreds of thousands of dollars to him in connection with construction costs. About $1.5 million of the loan Kakkar secured with the bank was earmarked for construction on the property. The bank retained an escrow company to disburse portions of the loan when reimbursement for construction costs was appropriate. Kakker submitted false and fraudulent documents to induce the escrow company to wire six progress payments totaling $509,875.
A grand jury issued a superseding indictment against Kakkar on June 2, 2016, charging him with one count of making misstatements to a bank, in violation of 18 U.S.C. § 1014, and six counts of wire fraud, in violation of 18 U.S.C. § 1343. Kakkar was found guilty of all the charges presented in the superseding indictment.
Kakkar is scheduled to appear before Judge Davila on February 13, 2016, for sentencing. The maximum statutory penalty for making misstatements to a bank is 30 years’ imprisonment, a $1 million fine, and five years of supervised release. The maximum statutory penalty for each count of wire fraud is 20 years’ imprisonment, a $250,000 fine, and 5 years of supervised release. However, any sentence would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Amie Rooney and Maia Perez are prosecuting the case with assistance from Nina Burney and Elise Etter. The case is the result of an investigation by the ATF.
Rochester Man Pleads Guilty to Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Henry Joseph Williams, 51, of Rochester, NY, who was convicted of bank fraud, was sentenced to 18 months in prison and ordered to pay restitution to the victim banks in the amount of $6,139.84. by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Williams opened accounts at two area banks. Between May 2015 and August 2015, the defendant used his ATM cards to incur approximately $8,100 in charges which he then fraudulently disputed by falsely claiming that his ATM cards had been stolen. At the time of the offense, Williams was on federal supervised release for a 2012 wire fraud conviction.
The sentencing is the result of an investigation by the United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski, and the United States Probation Department, under the direction of Anthony San Giacomo.
Raton Woman Sentenced to 66 Months for Federal Drug Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Sara Marie Martinez, 36, of Raton, N.M., was sentenced today in federal court in Albuquerque, N.M., to 66 months in prison for her conviction on heroin and methamphetamine trafficking charges. Martinez will be on supervised release for six years after completing her prison sentence. The sentence was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division.
Martinez and her co-defendant Ernest Cordova, 45, of Albuquerque, were indicted on March 8, 2016. The three-count indictment charged Cordova with participating in a drug trafficking conspiracy, and Cordova and Martinez with possessing heroin and methamphetamine with intent to distribute. According to the indictment, Cordova and Martinez committed the three crimes in Bernalillo County, N.M.
Cordova, who has six prior felony convictions, was arrested in Feb. 2016, on a criminal complaint charging him with trafficking in heroin and methamphetamine from Jan. 22, 2016 through Feb. 18, 2016. According to the criminal complaint, DEA agents observed Cordova engage in several drug deals in the Albuquerque-area during this period. During the execution of a search warrant at Cordova’s residence on Feb. 18, 2016, the DEA found 134 grams of heroin and 82 grams of methamphetamine.
Martinez entered a guilty plea Aug. 9, 2016, to heroin and methamphetamine trafficking charges without the benefit of a plea agreement.
Cordova pled guilty to the indictment on March 14, 2016, without the benefit of a plea agreement. Cordova was sentenced on Aug. 18, 2016, to 96 months in prison followed by four years of supervised release.
This case was investigated by the Albuquerque office of the DEA and was prosecuted by Assistant U.S. Attorney Alexander M. Uballez as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. In recognition that New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community has come together to is collaborating the initiative is significantly exceed the national average.
The case was also prosecuted as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Operation Leaving Las Vegas Results in Drug Distribution Charges Against 32 IndividualsRead the Press Release
ABINGDON, VIRGINIA – United States Attorney John Fishwick announced today that Operation Leaving Las Vegas, a joint investigation conducted by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, has resulted in thirty-two arrest warrants being issued for individuals charged with conspiring to distribute methamphetamine in Southwest Virginia, Las Vegas, Nevada, Eastern Kentucky, and elsewhere. In addition to the arrest warrants being issued, law enforcement agents executed three search warrants today in furtherance of the investigation. The following individuals were charged:
- Brandon Lee Stone
- Richard Henry Kayian
- Stephen Anthony Cino, Jr.
- Kevin Thomas Siegler
- Misael Reyes-Tajimaroa
- Tracy Allan Callihan
- Gary Allen Ginn
- John E. Williams
- Kaitlynn Elizabeth Kayian
- Bradley Allen Chapman
- Alex Michael Kayian
- John Dewayne Farmer
- Steven Michael Salyer
- Lola Virginia Farmer, aka Jenny Farmer
- Lamar Allen Skipper
- Brian Edward Widener, aka “Bubba”
- Rebecca Lynn Williams
- Daniel Cory Cantrell
- Shauna Nicole Chafin, aka Shauna ABRAMS
- Austin Obranovic Boardwine
- Brandon Gary Childress
- Tanner Morris Curd
- Caleb Newman Dean
- Ralph Stewart Dingus
- William Wesley Fleenor
- Jeffrey Nathaniel Gobble
- Charlene Renee Hale
- Preston Kyle Lawson
- Justin Michael Lowe
- Amy Lorene Moser aka Amy Arcaro
- Heather Michelle Sullins
- Brandon Cody Trivett
The investigation of the case was conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Internal Revenue Service Criminal Investigations, United States Marshals Service, Virginia State Police, Washington County, Virginia Sheriff’s Office, Abingdon Police Department, Marion Police Department, and Smyth County, Virginia Sheriff’s Office. Assistant United States Attorney Zachary T. Lee will prosecute the case for the United States.
An arrest warrant is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Ohio Man Pleads Guilty to Hate Crime for Beating African-American StrangerRead the Press Release
Charles Butler, 33, of Toledo, Ohio, pleaded guilty today to a federal hate crime for beating an African-American stranger he saw on the street.
The plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
According to his guilty plea, on May 18, 2016, Butler and Robert Paschalis drove past the victim, A.W., on the street while A.W. was unloading items from his truck. The two men circled back, got out of their own truck and began attacking A.W. while yelling racial slurs. Butler grabbed a broom from the back of A.W.’s truck and struck A.W. with it multiple times. Butler admitted during his plea to singling out and beating A.W. because he is African American.
The beating stopped only when two off-duty Ohio state police officers happened on the scene and pulled Butler and Paschalis away. A.W. suffered an orbital fracture and damage to his right eye. Butler later posted on Facebook that the attack was “in the name of the White Race.”
“Race-motivated violence violates the law and offends human decency,” said Principal Deputy Assistant Attorney General Gupta. “The Justice Department will always vigorously prosecute those who carry out violence against individuals because of the color of their skin – crimes which threaten the very fabric and core values of our country.”
“Northern Ohio is a mosaic of different races, ethnicities and backgrounds,” said U.S. Attorney Rendon. “This defendant tried to strike at the diversity we cherish by participating in an unprovoked attack based solely on the victim’s race. He is now likely headed to prison, while we will continue to work together to ensure that everyone’s civil rights are protected.”
“These individuals engaged in a violent assault against another person based on his race and are now being held accountable,” said Special Agent in Charge Anthony. “The FBI will continue to work with our law enforcement partners to ensure hate crimes are thoroughly investigated and prosecuted to the greatest extent of the law.”
Paschalis has also been charged with a hate crime. His charges are still pending. An indictment is merely an accusation and defendants are presumed innocent unless proven guilty.
This case is being investigated by the FBI Cleveland Division’s Toledo Resident Agency, in cooperation with the Toledo Police Department and the Lucas County Prosecutor’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael Freeman of the Northern District of Ohio and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
North Tonawanda Business Owner Pleads Guilty to Tax FraudRead 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 David B. Schmitt, 64, of North Tonawanda, NY, pleaded guilty to tax evasion before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that the defendant owned and operated delivery businesses known as Three Kids Trucking Inc., and 1553 Harlem Road Inc. Between February 2010 and June 2013, while Schmitt owned and operated these businesses, he willfully attempted to evade and defeat the payment of a large part of federal employment taxes owed by 1553 Harlem Road Inc. The defendant did so by filing false forms with the IRS, having nominees open bank accounts to conduct business for the corporation and created a fraudulent trust for one of the corporations. The total loss to the IRS exceeded $500,000.
The plea is the result of an investigation by Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.
Sentencing is scheduled for February 8, 2017 at 10:30 a.m. before Judge Wolford.
Nine Members of Eastern European Organized Crime Syndicate Charged with Racketeering, Extortion, Loansharking, Illegal Gambling, and Drug TraffickingRead the Press Release
Earlier today, an indictment was unsealed in the United States District Court for the Eastern District of New York charging nine defendants with crimes including racketeering, extortion, loansharking, illegal gambling, and drug trafficking. Eight of the defendants are under arrest, and one remains at large.
The defendants’ initial appearances and arraignments are scheduled this afternoon before United States Magistrate Judge Steven L. Tiscione at the federal courthouse in Brooklyn, New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA); James P. O’Neil, Commissioner, New York City Police Department (NYPD); Angel M. Melendez, Special Agent-in-Charge, Immigration and Customs Enforcement, Homeland Security Investigations (HSI); George Beach, Superintendent, New York State Police (NYSP); and Shantelle P. Kitchen, Special Agent-in-Charge, Criminal Investigation Division, Internal Revenue Service (IRS). The arrests resulted from a long-term investigation by the DEA’s New York Organized Crime Drug Enforcement Strike Force.[1]
As alleged in the indictment and other court documents filed by the government, the defendants were members of an Eastern European organized crime syndicate that operated extensively in the Brighton Beach and Coney Island neighborhoods of Brooklyn as well as overseas. Syndicate members in Brooklyn reported directly to members of organized crime — known as “thieves in law” or “Thieves”— based in various former states of the Soviet Union. The Thieves would, in turn, help the defendants extort money from individuals living abroad and authorize the use of physical force by the defendants in the United States.
All but two of the defendants are naturalized U.S. citizens who immigrated to the United States from Eastern European countries. Librado Rivera is a U.S. citizen by birth, and Aleksey Tsvetkov is a Ukrainian citizen. The defendants presently reside in New York City, predominantly in Coney Island and Brighton Beach.
Since as early as March 2016, the defendants allegedly generated profits through their criminal acts. To collect outstanding debts, worth in the aggregate millions of dollars, they regularly used threats of violence. The syndicate’s reach was international and included extorting payments in the United States and threatening victims and their family members living abroad. For example, wiretap recordings reveal that the defendants tracked down the father of an extortion victim in Russia in order to determine where his son was living. After locating the victim — whom defendants claimed owed syndicate members nearly $200,000 — defendant Gershman announced, the “Thieves have found him . . . in Israel,” and “they were at [his] place today.” Another extortion victim who struggled to repay his debt was ominously reminded that, “the person who is going to work with you [to repay the debt] … is a boxer with cauliflower ears.” The interest rate being charged this particular victim was 100% per year.
The government’s investigation revealed that the syndicate members ran high-stakes illegal poker games in various locations in Brooklyn, where a single game could involve wagers totaling as much as $150,000.
Another of the syndicate’s profitable schemes was the trafficking of a substantial quantity of marijuana, at least 100 kilograms as charged in the indictment.
Despite the fact that many of the defendants do not have legitimate employment, the government’s investigation revealed thousands of dollars flowing into their bank accounts, and the defendants were observed driving high-end luxury automobiles.
In addition to court authorized wiretaps, the government’s investigation included surveillance, confidential sources, and the controlled purchase of narcotics.
“The United States remains the land of opportunity,” stated United States Attorney Capers. “But that does not include an opportunity for international organized criminal groups to profit by victimizing individuals residing here or abroad. In keeping with my Office’s long-standing practice, we will aggressively investigate such organizations, whether they are domestic or, as in this case, have tentacles reaching to Eastern European Thieves, and we will ensure that their activities are detected and stopped at the earliest possible juncture.”
DEA Special Agent-in-Charge Hunt stated, “This drug investigation’s path uncovered an alleged Russian organized crime syndicate operating in Brighton Beach and Coney Island, NY. As history often repeats itself, racketeering, loansharking, extortion, and illegal gambling are just some of crimes the defendants are charged with committing here in Brooklyn, similar to crimes committed by the Thieves in Law in the former Soviet states. Today’s arrests exemplify the effectiveness of the DEA’s Strike Force which comprises federal, state, and local law enforcement from 15 agencies.”
“The NYPD worked diligently with its law enforcement partners to take down this alleged criminal enterprise, whose Brooklyn operation had significant ties overseas,” said Police Commissioner James P. O'Neill. “These defendants operated with impunity, threatening loansharking victims with physical violence, trafficking large quantities of narcotics and hosting high stakes poker games. I want to commend the investigators working this case for their dedication in taking down these persistent criminals.”
“The alleged members of this criminal organization operate out of Brighton Beach and Coney Island, among other neighborhoods right here in New York,” said Melendez, Special Agent-in-Charge of HSI, New York. “HSI will stay committed to these joint enforcement efforts to ensure that these criminal groups do not continue to abuse our communities with their drug trafficking, loansharking or illegal gambling.”
NYSP Superintendent Beach II stated “We simply will not tolerate this type of criminal activity in New York State. I want to thank our federal and local partners for their hard work and collaboration on this case, which has resulted in nine dangerous criminals being taken off our streets.”
IRS Criminal Investigation Special Agent-in-Charge Kitchen stated, “IRS Criminal Investigation is a dedicated partner on DEA’s New York Organized Crime Drug Enforcement Strike Force and as such, remains fully committed to its mission. This investigation provides another example of how agencies with different investigative missions can pool their respective skills toward reaching a common objective. Today, as a result of the Strike Force partnership, an ongoing criminal enterprise has been derailed.”
The charges contained in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of all counts, defendants Leonid Gershman, Vyacheslav Malkeyev, and Librado Rivera face mandatory minimum sentences of five years and maximum sentences of 40 years, while defendants Aleksey Tsvetkov, Renat Yusufov, Igor Krugly, and Isok Aronov face maximum sentences of 20 years.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Matthew J. Jacobs and Andrey Spektor are in charge of the prosecution.
The Defendants:
LEOIND GERSHMAN, also known as “Lenny,” “Lenny G.,” “Lyonchik” and “Lyonya”
Age: 33ALEKSEY TSVETKOV, also known as “Pelmin,” “Lesha” and “Lyosha”
Age: 38RENAT YUSUFOV, also known as “Ronnie” and “Ronik”
Age: 38IGOR KRUGLY
Age: 37VYACHESLAV MALKEYEV, also known as “Steve Bart”
Age: 32ISOK ARONOV
Age: 32YUSIF PARDILOV, also known as “Yosik”
Age: 52LIBRADO RIVERA, also known as “Macho” and “Max”
Age: 36E.D.N.Y. Docket No. 16-CR-553 (BMC)
[1] The Strike Force comprises agents and officers of the DEA, the NYPD, Immigration and Customs Enforcement, HSI, the NYSP, the IRS Criminal Investigation Division, the Federal Bureau of Investigation, the U.S. Secret Service, the U.S. Marshal Service, the New York National Guard, the New York Department of Taxation and Finance, the Clarkstown Police Department, the Port Washington Police Department, and New York State Department of Corrections and Community Supervision. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area, which is a federally funded crime fighting initiative.
New York Man Sentenced on Cocaine ChargeRead the Press Release
ROANOKE, VIRGINIA – A Brooklyn man, who previously pled guilty to a federal cocaine charge, was sentenced today in the United States District Court for the Western District of Virginia, announced United States Attorney John P. Fishwick Jr.
James Christopher Davis, 47, of Brooklyn, New York, previously pled guilty to one possessing with the intent to distribute cocaine. Today in District Court, Davis was sentenced to 27 months in federal prison.
“The distribution of illegal drugs continues to a problem in our communities that must be addressed through a combined approach of enforcement, treatment and prevention,” United States Attorney Fishwick said today.
According to evidence presented at previous hearings by Assistant United States Attorney Andrew Bassford, police conducted a search warrant at an apartment in Roanoke on January 27, 2016. When Police entered the home, the first person the observed was Davis, who ran to the bathroom and slammed the door. Police entered the bathroom, arrested Davis and recovered a large, black plastic back containing a substance later determined to be cocaine.
Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
New York Man Admits Distribution Conspiracy Involving More Than 10 Kilograms of Synthetic Designer DrugsRead the Press Release
NEWARK, N.J. – A Queens, New York, man today admitted his role in a scheme to distribute controlled substance analogues, which are designer drugs that have chemical structures and hallucinogenic effects similar to Schedule I controlled substances, U.S. Attorney Paul J. Fishman announced.
Elmostafa Charif, 37, pleaded guilty before U.S. District Judge Kevin McNulty to a two-count indictment charging him with conspiracy to distribute, and possessing with intent to distribute, the controlled substance analogues NM2201 and 5F-AMB. NM2201 and 5F-AMB are most closely related to synthetic Tetrahydrocannabinol, or THC.
According to documents filed in this case and statements made in court:
Since February 2011, the Drug Enforcement Administration (DEA) has been investigating the importation, distribution, and use of designer drugs popularly known as synthetic cannabinoids. “K2” and “Spice” are common examples of synthetic cannabinoids.
Synthetic cannaboids are created when damiana leaves – an inert, plant-like substance – are sprayed with controlled substance analogues and treated with synthetic flavoring. The flavored and treated damiana leaves are then smoked by users.
Charif admitted that, on April 13, 2015, he conspired with others to purchase and distribute approximately 10 kilograms of synthetic cannabinoids, including approximately five kilograms of NM2201 and approximately five kilograms of 5F-AMB. Charif also admitted that he purchased liquid flavoring and damiana leaves with the controlled substance analogues, knowing that they would be used to create a product that was smoked or otherwise consumed by users.
NM2201 and 5F-AMB are each controlled substance analogues as defined under the Analogue Act due to the fact that both NM2201 and 5F-AMB have chemical structures and hallucinogenic properties similar to the Schedule I controlled substances 5F-PB-22 and ADB-PINACA, respectively.
Both counts of the indictment to which Charif pleaded guilty carry a maximum potential penalty of 20 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Feb. 22, 2017.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Organized Crime Drug Enforcement Task Force Unit in Newark.
Defense counsel: Aaron Wallenstein, Esq.
Navajo Man Sentenced to Prison for Federal Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Rob Begay, 24, an enrolled member of the Navajo Nation who resides in Twin Lakes, N.M., was sentenced yesterday in federal court in Albuquerque, N.M., to 30 months in prison followed by three years of supervised release for his involuntary manslaughter conviction.
Begay was arrested on Dec. 2, 2015, on a criminal complaint charging him with involuntary manslaughter. Begay was indicted on Dec. 17, 2015, and was charged with killing a Navajo woman on Nov. 28, 2015, while driving under the influence of alcohol. According to the indictment, Begay committed the crime on the Navajo Indian Reservation in McKinley County, N.M.
On July 26, 2016, Begay pled guilty to the indictment and admitted killing the victim by driving recklessly while under the influence of alcohol. Begay admitted that because of his intoxication he was incapable of exercising clear judgment and a steady hand in operating a vehicle.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Jack Burkhead.
Mount Pleasant Man Sentenced to Prison for Enticement of a MinorRead the Press Release
DAVENPORT, IA – On November 9, 2016, Kevin Dwane Carpenter, 51, of Mount Pleasant, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 240 months in prison for enticement of a minor, announced United States Attorney Kevin E. VanderSchel. Carpenter was ordered to serve fifteen years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund.
Carpenter pleaded guilty to enticement of a minor on May 10, 2016. According to the plea agreement, in July 2014, an agent with the Iowa Division of Criminal Investigations responded to a Craigslist advertisement posted by Carpenter entitled, "Looking for young boy." The agent responded to the advertisement purporting to be a 15-year-old male and Carpenter initiated conversations about performing sexual acts. On August 28, 2014, Carpenter arranged to meet the "child" at a location in Mount Pleasant. At the meet location, agents confronted Carpenter and he admitted he was there to meet a 15-year-old boy with plans to go back to his residence to engage in sexual acts. A forensic examination of Carpenter’s electronic devices showed Carpenter had been communicating with other minors.
This matter was investigated by the Burlington Police Department and the Iowa Division of Criminal Investigations. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Childhood initiative.
Montgomery Man Sentenced to Prison for Participation in Stolen Identity Refund Fraud SchemeRead the Press Release
Montgomery, Alabama – A Montgomery, Alabama resident was sentenced to 28 months in prison today for his role in a stolen identity refund fraud scheme, announced U.S. Attorney George L. Beck Jr. of the Middle District of Alabama, and Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
Lambert Derran Smothers aka Main or Mane, 25, admitted that he participated in a conspiracy which used stolen personal identifying information including names, dates of birth and social security numbers to file more than 100 fraudulent income tax returns relating to tax years 2010, 2011 and 2012. On the returns, Smothers and his co-conspirators fraudulently claimed at least $157,292 in income tax refunds.
“Stolen identity refund crimes cause untold damage and hardship to the individual victims and drain the U.S. Treasury,” said Principal Deputy Assistant Attorney General Ciraolo. “Individuals who engage in this criminal conduct will be prosecuted, and will face prison terms and monetary penalties.”
“Protecting tax payer dollars is a priority for my office,” said U.S. Attorney Beck. “Identity theft and tax fraud affects too many people in our communities and we must use all available resources under the law to destroy it. I want to thank IRS Criminal Investigations and the U.S. Secret Service for identifying and shutting down this criminal scheme.”
“Stealing from the government is not a way to earn a living,” said Special Agent in Charge Veronica Hyman-Pillot for the Internal Revenue Service-Criminal Investigation (IRS-CI). “Lambert Smothers and his associates victimized many taxpayers in their attempt to make quick money. Today’s sentencing should emphasize the message that IRS-CI will continue to put forth every effort to identify, investigate, and recommend prosecution on individuals who commit refund fraud.”
Smothers pleaded guilty in July to conspiring to defraud the United States, theft of government money and aggravated identity theft. In addition to the term of prison imposed, Smothers was also ordered to serve three years of supervised release and to pay $81,792.41 in restitution to the IRS.
U.S. Attorney Beck and Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-CI and the U.S. Secret Service, who conducted the investigation, and Trial Attorneys Gregory P. Bailey and Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who prosecuted this case.
Monroe County Man Pleads Guilty to Heroin and Sex Trafficking Charges; Co-Defendant Admits to Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man pleaded guilty today before U.S. District Court Judge Malachy E. Mannion in Scranton, to participating in a heroin trafficking conspiracy that stretched from Stroudsburg to New York to the state of Maine, and to a forcing or coercing women into engaging in prostitution in northeastern Pennsylvania.
According to United States Attorney Bruce D. Brandler, the defendant, Jose Velazquez, age 26, who used the street name “Sev,” admitted to conspiring with others to distribute more than 100 grams of heroin (which is approximately equivalent to 4,000 retail bags of heroin) and to sex trafficking an adult female between 2012 and 2014.
Velazquez was indicted along with six other people by a federal grand jury in Scranton in September 2015, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, Maine State Police, the Monroe County District Attorney’s Office, and local police in Monroe County. In October 2016, Velazquez was charged in a superseding indictment with drug trafficking and sex trafficking crimes.
The superseding indictment alleges that Velazquez participated in a street gang known as the Black P-Stones; that male gang members were “beaten-in” to the gang and female members were “sexed-in” to the gang. The superseding indictment further alleged that members of the Black P-Stones obtained heroin in New York and distributed the heroin in Stroudsburg and locations in the state of Maine. According to the superseding indictment, couriers were used to transport heroin from New York to Maine.
The superseding indictment alleges that females were “sexed-in” to the gang by being forced to engage in sex with male gang members; recruited and coerced to engage in prostitution; advertised as adult escorts on a website; provided with heroin and other drugs; and placed in various area hotels/motels to work as prostitutes. It is alleged that the sex trafficking defendants used threats, force, and intimidation to coerce females to engage in prostitution.
In today’s proceeding, Velazquez pleaded guilty to conspiracy to distribute in excess of 100 grams of heroin, and one count of sex trafficking by force or coercion. He faces a mandatory minimum five-year prison sentence and a potential 40-year prison sentence for the drug conspiracy charge; and a mandatory minimum 15-year prison sentence and a potential life sentence for the sex trafficking charge
One of Velazquez’s co-defendants, Sean Griffin, age 22, who used the street name “Kritical,” also pleaded guilty today before Judge Mannion to participating in the same drug trafficking conspiracy. He admitted to being a sub-distributor of between 100 grams and 400 grams of heroin for the Black P-Stones. He faces a potential maximum sentence of 20 years in prison.
Judge Mannion ordered pre-sentence investigations to be completed. Sentencing for both defendants will be scheduled at a later date.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also 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."
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
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 these offenses is life 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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Missouri Man Sentenced for Child ExploitationRead the Press Release
SHERMAN, Texas — A 30-year-old Missouri man has been sentenced to federal prison for child exploitation in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Nathan Oliva pleaded guilty on January 28, 2016, to sex trafficking of children and was sentenced to 365 months in federal prison today by U.S. District Judge Amos Mazzant.
According to information presented in court, an unidentified person called in a tip to the Denton Police Department that a child was being trafficked by Oliva and was at a hotel in Denton, Texas. Denton Police officers located a classified ad on Backpage.com that offered the child for sexual activity. Officers went to the hotel, where they located the victim and the defendant. The victim, who had injuries sustained from an assault by Oliva, told the officers that she was in fear for her life because Oliva had injured her and had threatened her with greater harm. Moreover, Oliva had taken control of her cell phone, driver’s license, and social security card. Oliva had also threated to harm the parents of the victim. As part of his plea, Oliva admitted to posting ads on Backpage.com that offered the victim, who was younger than 18-years-old, for commercial sex. Oliva was indicted by a federal grand jury on August 13, 2015.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Homeland Security Investigations and the Denton Police Department and prosecuted by Assistant U.S. Marisa J. Miller.
Milwaukee Man Sentenced to More Than 21 Years in Federal Prison for Transporting a Minor to Illinois to Engage in ProstitutionRead the Press Release
CHICAGO — A Milwaukee man was sentenced today to more than 21 years in federal prison for transporting an underage girl to the Chicago area from Wisconsin to engage in prostitution.
DAJUAN KEY, 31, brought the girl to the Chicago area from Madison, Wisc., in September 2013. At the time, the victim was 15 years old. Once in the Chicago area, Key forced the girl to engage in commercial sex acts, with Key keeping all of the money.
A jury in February convicted Key on one count of knowingly transporting a minor from Wisconsin to Illinois to engage in prostitution. U.S. District Judge Virginia M. Kendall imposed the 262-month sentence in federal court in Chicago.
“All of the defendant’s reprehensible conduct in this case evidences a person driven by greed, willing to engage in manipulation, deception, and psychological abuse, solely for his own personal profit,” Assistant U.S. Attorney Katherine Sawyer argued in the government’s sentencing memorandum.
Evidence at Key’s trial revealed that Key encountered a minor online and travelled to Madison to pick her up and bring her to southwest suburban Romeoville. Key took photographs of the girl, provided her with lingerie to wear, and posted advertisements on the website Backpage.com. Key rented multiple hotel rooms that were used for encounters with individuals who responded to the advertisements. Key then collected all of the money earned by the minor victim.
The victim was rescued by officers of the Romeoville Police Department on Sept. 10, 2013, and Key was arrested.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation. The Romeoville Police Department and the Madison, Wisc., Police Department assisted in the case.
The investigation was conducted by the FBI’s Child Exploitation Task Force. The CETF is part of a nationwide effort known as the Innocence Lost National Initiative targeting the commercial sexual exploitation of children in the United States. In Chicago, the CETF is composed of FBI special agents and investigators from the Chicago Police Department, the Cook County Sheriff’s Office, and the Cook County State’s Attorney’s Office.
The government is represented by Ms. Sawyer and Assistant U.S. Attorney Christopher V. Parente.
Miami-Dade Resident Pleads Guilty to Filing False Tax Return with the Internal Revenue ServiceRead the Press Release
Miguel Rosenfeld, an agent for several of the most prominent telenovela writers throughout Latin America, pled guilty today before United States District Judge Jose E. Martinez in Miami, Florida to filing a false individual income tax return with the Internal Revenue Service (“IRS”), which substantially underreported his income for the tax year 2007.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation (“IRS-CI”), made the announcement.
Rosenfeld was charged in September 2016, by a criminal information, with one count of filing a false federal income tax return, in violation of Title 26, United States Code, Section 7206(1). According to court documents, Rosenfeld failed to report all of his income on his 2007 Form 1040, U.S. Individual Income Tax Return. Specifically, Rosenfeld reported a total income of approximately $1,032,584 on his tax return, while knowingly underreporting his income by approximately $217,974.
Rosenfeld is scheduled to be sentenced on February 27, 2017 at 1:30 p.m. before Judge Martinez. At sentencing, Rosenfeld faces up to three years in prison and a fine of up to $250,000.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael R. Sherwin.
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.
Mexican National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAVIER DE JESUS PEREZ-JIMENEZ age 30, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of removed alien.
U.S. District Judge Jane Triche Milazzo sentenced PEREZ-JIMENEZ to time served and a $100 special assessment. PEREZ-JIMENEZ will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about August 23, 2010, JAVIER DE JESUS PEREZ-JIMENEZ was found in the United States after having been officially deported. He was ordered removed and deported on or about August 4, 2010.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement, in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Manhattan U.S. Attorney Announces Charges Against Film Producer and General Counsel of Investment Adviser for Multimillion-Dollar Investment SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Anthony J. Orlando, the Acting Special-Agent-in-Charge of the Los Angeles Office of the Internal Revenue Service, Criminal Investigations (“IRS-CI”), announced today that DAVID BERGSTEIN, a film producer and entrepreneur, and KEITH WELLNER, the former General Counsel, Chief Operating Officer, and Chief Compliance Officer of Weston Capital Asset Management (“Weston”), a registered investment adviser, were arrested this morning and charged with defrauding investors of more than $26 million. BERGSTEIN was arrested in Hidden Hills, California, and will be presented later today before a Magistrate Judge in Los Angeles. WELLNER was arrested this morning in Manhattan, and will be presented later today before United States Magistrate Judge Sarah Netburn in Manhattan federal court. The case is assigned to U.S. District Judge P. Kevin Castel.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, David Bergstein and Keith Wellner defrauded investors out of more than $26 million. They allegedly withheld material information, transferred funds without disclosing conflicts of interest, and misappropriated funds for their own use. For their web of alleged deception and self-dealing, Bergstein and Wellner now face federal criminal charges.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Bergstein and Wellner allegedly tricked their victims into thinking their money would be invested responsibly, but they essentially used these investments to fund their own lifestyle to the tune of several million dollars. People have the right to trade in an uncorrupted market, and today’s charges are proof of the FBI’s continued determination to root out those who unlawfully interfere with this process.”
IRS-CI Acting Special Agent in Charge Anthony J. Orlando said: “Many investors feel comfortable entrusting their hard-earned dollars with well-known movie financiers and attorneys, but this case brings to light that investors need to perform their due diligence before turning over their money to others. IRS Criminal investigation is proud to work with our federal law enforcement partners in identifying and investigating those who seek to dupe investors with false promises.”
According to the Indictment unsealed in Manhattan federal court,[1] from 2011 through 2012, the defendants engaged in a scheme to defraud by (i) concealing material information from Weston investors about financial transactions involving their money; (ii) transferring funds from one pool of Weston’s investors to make payments to, provide a security interest for, or otherwise benefit, another pool of Weston’s investors, without the required disclosures to investors concerning conflicts of interest; and (iii) misappropriating a portion of funds transferred from investor accounts for their own and others’ benefit. BERGSTEIN and WELLNER orchestrated this scheme in part through two transactions involving Weston investors’ assets: first, a loan from a Weston fund called the Partners 2 (or “P2”) Fund, and, second, a swap agreement with a Weston fund called the Wimbledon TT Portfolio (the “TT Portfolio”).
The Partners 2 Loan Scheme
In 2010, Weston agreed to a transaction with an entity named Gerova Financial Corporation (“Gerova”), an international reinsurance company, in which Weston sent assets from one of its hedge funds (the Wimbledon Financing Fund, or “WFF”) to Gerova in exchange for restricted shares of Gerova stock. This exchange was intended to replace illiquid hedge fund assets with stock, which could be bought and sold more easily. In 2011, however, Gerova’s stock price plummeted. Weston subsequently sought to unwind the transaction, and Weston’s president was introduced to BERGSTEIN for this purpose. Weston’s president, WELLNER, and BERGSTEIN subsequently formulated the outlines of a structure in which Weston would return its Gerova stock, receive its assets back from Gerova, and place those assets into another entity called Arius Libra Inc. (“Arius Libra”) as part of an investment in a separate business. Certain payments would be made along the way to facilitate the transfers.
In order to complete this transaction, BERGSTEIN, WELLNER, and others agreed to loan money from the P2 Fund, another Fund operated and managed by Weston, to Arius Libra. The purpose of this loan (the “P2 Loan”) was purportedly (i) to pay certain debts associated with Gerova, and (ii) to fund Arius Libra’s purported medical billing businesses. WELLNER arranged for the P2 Loan to be secured by certain of the assets of WFF. Thus, in the event the P2 Loan was not repaid, the P2 Fund had the ability to liquidate WFF assets to make P2 investors whole, to the detriment of investors in WFF. In total, approximately $9 million in investor money was disbursed from the P2 Fund pursuant to the P2 Loan.
As WELLNER and BERGSTEIN well knew, however, P2 Fund investors were neither informed of the existence of the P2 Loan nor given any information about Arius Libra. And no disclosures were made to inform either P2 Fund or WFF investors of the conflict of interest arising from the P2 Fund’s security interest in WFF assets, as WELLNER and BERGSTEIN also knew. And although BERGSTEIN had represented to Weston that disbursements made pursuant to the P2 Loan would be used both to pay off Gerova creditors and to fund Arius Libra’s medical billing businesses, in fact, BERGSTEIN misappropriated a substantial portion of the P2 Loan proceeds and used them to pay for, among other things, his own personal expenses, including credit card bills and attorney’s fees.
The TT Portfolio Swap Agreement Scheme
In late 2011, BERGSTEIN and WELLNER secretly arranged for Weston’s TT Portfolio to enter into a swap agreement with an entity controlled by BERSTEIN known as Swartz IP Services (“Swartz IP”), a transaction that was not disclosed to TT Portfolio investors. As part of this swap agreement, WELLNER and others transferred approximately $17.7 million from the TT Portfolio to Swartz IP. In exchange, BERGSTEIN agreed to provide certain investment returns and to meet investor redemption requests.
This transaction was completed without disclosure to investors, even though, for other swap agreements, Weston had amended the TT Portfolio offering memorandum to reflect the particular swap agreement at issue. Of the money that was transferred to Swartz IP, moreover, BERGSTEIN and WELLNER directed that approximately $3 million be transferred to the P2 Fund to pay back part of the P2 Loan. BERGSTEIN and WELLNER thus directed that money from one set of Weston’s investors (the TT Portfolio investors) be used to pay back part of a debt owed to another set of Weston’s investors (the P2 Fund investors) – another conflict of interest that was not disclosed to P2 or TT Portfolio investors.
In addition to diverting TT Portfolio money for unauthorized and improper investments, WELLNER and other Weston officers improperly paid themselves with TT Portfolio investor money, which was not disclosed to investors. As a further part of the scheme, moreover, BERGSTEIN made false representations about Swartz IP’s assets and ability to meet redemption requests and secretly diverted TT Portfolio investor proceeds to pay BERGSTEIN’s personal expenses, among other things.
BERGSTEIN and WELLNER also gave a false and misleading investor presentation, made false investment disclosures, and distributed a fake loan note concealing the origin of the P2 Loan in order to attempt to conceal their criminal conduct.
* * *
BERGSTEIN, 54, of Hidden Hills, California, and WELLNER, 49, of Manhattan, are charged with the offenses set forth in the chart attached to this release. The statutory maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Bharara praised the investigative work of the FBI, IRS-CI, and the Office’s Criminal Investigators. He also thanked the Securities and Exchange Commission, which has filed civil charges against BERGSTEIN in a separate action.
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. Attorneys Edward A. Imperatore and Robert W. Allen are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAXIMUM PENALTIES
1
Conspiracy to Commit Investment Adviser Fraud and Securities Fraud (18 U.S.C. § 371)
DAVID BERGSTEIN
KEITH WELLNER
Five years in prison and a $250,000 fine or twice the gross gain or loss from the offense
2
Investment Adviser Fraud (15 U.S.C. §§ 80b-6 & 80b-17; 18 U.S.C. § 2)
DAVID BERGSTEIN
KEITH WELLNER
Five years in prison and a fine of $10,000
3
Investment Adviser Fraud (15 U.S.C. §§ 80b-6 & 80b-17; 18 U.S.C. § 2)
DAVID BERGSTEIN
KEITH WELLNER
Five years in prison and a fine of $10,000
4
Securities Fraud (15 U.S.C. §§ 78j(b) & 78ff; 17 C.F.R. § 240.10b-5; 18 U.S.C. § 2)
DAVID BERGSTEIN
KEITH WELLNER
20 years in prison and a $5,000,000 fine or twice the gross gain or loss from the offense
5
Securities Fraud (15 U.S.C. §§ 78j(b) & 78ff; 17 C.F.R. § 240.10b-5; 18 U.S.C. § 2)
DAVID BERGSTEIN
KEITH WELLNER
20 years in prison and a $5,000,000 fine or twice the gross gain or loss from the offense
6
Wire Fraud (18 U.S.C. §§ 1343 and 2)
DAVID BERGSTEIN
KEITH WELLNER
20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense
7
Conspiracy to Commit Wire Fraud (18 U.S.C. § 1349)
DAVID BERGSTEIN
20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Majority Owner of NECC and Husband Sentenced for Illegal Cash Withdrawals Following OutbreakRead the Press Release
BOSTON – The majority owner of New England Compounding Center (NECC) and her husband were sentenced today in U.S. District Court in Boston in connection with illegally withdrawing cash following the 2012 fungal meningitis outbreak.
Carla Conigliaro, 53, of Dedham, Mass., the majority owner of NECC was sentenced by U.S. District Court Judge Richard G. Stearns to one year of probation and ordered to forfeit $4,600 and to pay a fine of $4,500. Her husband, Douglas Conigliaro, 55, also of Dedham, Mass., was sentenced by Judge Stearns to two years of probation and ordered to forfeit $119,647 and to pay a fine of $55,000. In July 2016, they each pleaded guilty to withdrawing cash from their bank accounts in a manner intended to defeat financial reporting requirements.
In September 2012, a nationwide outbreak of fungal meningitis was traced back to contaminated vials of preservative-free methylprednisolone acetate (MPA) manufactured by NECC, a compounding pharmacy located in Framingham, Mass. Beginning on Oct. 31, 2012, the day a search warrant was executed at NECC, Carla and Douglas Conigliaro began withdrawing unusual sums of cash from their personal bank accounts. The cash transactions were structured by the Conigliaros in a manner so as to evade the $10,000 reporting requirement for the filing of a currency transaction report. The Conigliaros admitted to withdrawing $124,000 in cash in this manner.
In December 2014, following a two-year investigation, the Conigliaros and 12 other employees and associates of NECC were charged in a federal indictment. The indictment did not charge the Conigliaros with having an active role in the operations or management of NECC, but did charge them with transferring assets following the fungal meningitis outbreak.
NECC’s owner and head pharmacist Barry J. Cadden and supervisory pharmacist Glenn A. Chin were charged with 25 racketeering acts of second-degree murder in seven states. Ten other defendants, including six pharmacists, the director of operations, the national sales director, an unlicensed pharmacy technician, and another owner, were charged with additional crimes including racketeering, mail fraud, conspiracy, and violations of the Food, Drug and Cosmetic Act. Cadden and Chin are scheduled to stand trial on Jan. 5, 2017.
United States Attorney Carmen M. Ortiz; Jeffrey J. Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Donna Nieves, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Craig Rupert, Special Agent in Charge of the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Ortiz’s Health Care Fraud Unit and John W.M. Claud of the Justice Department’s Consumer Protection Branch.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Major Drug Courier Sentenced to 20 Years in PrisonRead the Press Release
NEWPORT NEWS, Va. – Juan Guzman, 43, of El Paso, Texas, was sentenced today to 240 months in prison for conspiracy to distribute more than five kilograms of cocaine and more than 100 kilograms of marijuana. The defendant was also sentenced to 120 months of supervised release following his term of imprisonment.
Guzman was found guilty on April 14, 2016. According to court documents and information presented at trial, Guzman was responsible for using tractor-trailers to transport multi-kilo loads of cocaine and marijuana from Texas and New Mexico to locations along the East Coast, including Georgia, Rhode Island and Virginia.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Eric M. Hurt and Special Assistant U.S. Attorney Matthew Hoff of the Organized Crime and Gang Section of the Department of Justice prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15-cr-34.
Longtime fugitive Eric Bartoli sentenced to 20 years in prison for defrauding hundreds of peopleRead the Press Release
Eric V. Bartoli, who a fugitive for more than a decade, was sentenced to 20 years in prison for defrauding hundreds of investors out of millions of dollars in the 1990s, law enforcement officials said.
Bartoli pleaded guilty earlier this year to eight counts, including conspiracy, securities fraud, sale of unregistered securities, wire fraud, mail fraud and attempted income tax evasion.
Bartoli operated a large-scale Ponzi scheme from 1995 through 1999. He created and operated a company by the name of Cyprus Funds, Inc., which was based in Doylestown, Ohio and incorporated in Central America. Bartoli and his co-conspirators operated Cyprus to sell certificates of deposit and unregistered mutual funds. Cyprus raised approximately $65 million from an estimated 800 investors in Latin America and the United States. Some of Cyprus’s victims included retirees, according to court records.
Bartoli was sued in 1999 by the Securities and Exchange Commission on charges involving the Cyprus Funds, Inc. Bartoli did not appear at a scheduled hearing regarding the SEC charges. He was subsequently found in contempt of court and a civil arrest warrant was issued. Bartoli had fled Ohio and was arrested in New Hampshire. Bartoli was not detained at that time and became a fugitive.
An indictment was filed against Bartoli in the U.S. District Court for the Northern District of Ohio in October 2003.
Bartoli was taken into custody by the Peruvian National Police in Lima, Peru, in 2013. The operation was a joint effort between the FBI, Diplomatic Security Service, and the Peruvian National Police. He was returned to the United States last year.
“Mr. Bartoli spent years stealing millions of dollars from hard-working people, then more than a decade on the run,” said U.S. Attorney Carole S. Rendon. “Sometimes the wheels of justice grind slowly, but today Mr. Bartoli was finally held accountable for his crimes. The fact that he will spend the foreseeable future in prison is a testament to the efforts of everyone who worked on this case.”
“After years of living on the run, Mr. Bartoli will now serve time behind bars for swindling individuals out of large sums of money, including entire life savings,” said FBI Special Agent in Charge Stephen D. Anthony. “The FBI will continue to investigate fraudsters, like Eric Bartoli, and will hold them accountable for their criminal behavior, no matter how long it takes and no matter where they try to hide."
“More than a decade has passed since Mr. Bartoli’s criminal actions were brought to light in an indictment. Well, today marks the end of a long successful investigation that uncovered a multi-million dollar Ponzi scheme laced with a web of financial lies that left 800 investors in financial peril,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The IRS, FBI, and the U.S. Attorney’s Office never stopped pursuing Mr. Bartoli, proving that you can run, but you cannot hide from the federal government.”
This case is being prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Christos M. Georgalis following an investigation by the Federal Bureau of Investigation, Internal Revenue Service and the Securities and Exchange Commission.
Lee's Summit Business Owner Sentenced for Underpaying EmployeesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., business owner was sentenced in federal court today for underpaying his employees in violation of the Fair Labor Standards Act.
Gary L. Walker, 51, of Lee’s Summit, was sentenced by U.S. Magistrate Judge Robert E. Larsen to five years of probation. The court also ordered Walker to pay $196,484 in restitution to his former employees.
“This company’s former employees will not only receive the wages they rightfully earned, but will be paid restitution of twice the amount they were unfairly denied,” Dickinson said. “I will uphold the rights of employees and prosecute employers who violate federal laws designed to protect workers.”
Walker, who pleaded guilty to the misdemeanor charge on April 7, 2016, was the owner of Magic Touch Cleaning, Inc., a commercial janitorial business providing services to banks and health care companies.
“Gary Walker provided falsified records to the U.S. Department of Labor in order to conceal his failure to pay nearly $100,000 in wages to his employees. We will continue to work with our departmental and other law enforcement partners to ensure that employers do not victimize American workers by denying them the wages they have earned,” stated Steven Grell, Special Agent-in-Charge, of the Dallas Regional Office of the U.S. Department of Labor, Office of Inspector General.
Walker’s employees were entitled to a minimum wage of $7.25 per hour and overtime pay at a rate of at least one and half times the regular rate of pay after 40 hours of work in a work-week. From 2010 through Aug. 3, 2013, Magic Touch Cleaning underpaid its employees approximately $98,242 in unpaid minimum wages and overtime. The amount of victim restitution ordered by the court today represents these unpaid wages and overtime, which is doubled in a violation of the wage and hour laws and regulations. Walker will make payments of a minimum of $50,000 each year until the full amount of restitution is paid.
Under the terms of Walker’s plea agreement, the government will dismiss the civil action filed against him and his company in Perez v. Magic Touch Cleaning, Inc. et al (Case No. 15-CV-00174-SWH).
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Department of Labor, Office of Inspector General.
Lafayette man pleads guilty to felony possession of firearm, ammunitionRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Lafayette man pleaded guilty Tuesday to illegally possessing a revolver and bullets after being convicted of a felony.
Shawn D’Anthony Brown, 20, of Lafayette, pleaded guilty before U.S. Magistrate Judge Carol B. Whitehurst to one count of felon in possession of a firearm. The plea will become final when accepted by U.S. District Judge Patricia Minaldi. According to the guilty plea, Lafayette police stopped a black four-door vehicle not using headlights on September 27, 2015 on Celeste Street. Brown was searched, and a loaded .32 caliber revolver spray-painted gold was found in his front right pocket. At the time of the offense, Brown had two previous felony convictions.
Brown faces up to 10 years in prison, three years of supervised release, forfeiture of the seized items and a $250,000 fine. A sentencing date of February 23, 2017 was set.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF and Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
Jury Convicts Wichita Man on Federal Drug, Gun ChargesRead the Press Release
WICHITA, KAN. – A jury today convicted a Wichita man on federal drug and firearm charges, U.S. Attorney Tom Beall said.
Jesus Reyes, 42, Wichita, was convicted on one count of possession of with intent to distribute methamphetamine and two counts of unlawful possession of a firearm following a felony conviction.
During trial, prosecutors presented evidence that Wichita police stopped Reyes May 20, 2015, near 11th and Perry for a traffic violation. They found two loaded firearms and two plastic bags containing methamphetamine in the car. He was prohibited from possessing firearms due to a prior felony conviction.
Sentencing is set for Jan. 30. He faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on the drug charge, and a maximum penalty of 10 years and a fine up to $250,000 on each of the firearm charges. Beall commended the Wichita Police Department, Special Assistant U.S. Attorney Kimberley Rodebaugh and Special Assistant U.S. Attorney Michelle Jacobs for their work on the case.
Jury Convicts Man of Coercion and Enticement of A MinorRead the Press Release
LAS VEGAS, Nev. –A Henderson, Nev., man was convicted Tuesday of coercion and enticement of a minor to engage in illegal sexual activity, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Following a two-day jury trial, Kenneth Gordon Wescott, 54, was convicted of one count of coercion and enticement of a minor. He was indicted by a grand jury on March 11, 2014. United States District Judge Andrew P. Gordon presided over the jury trial. A sentencing date has been scheduled for Feb. 16, 2017.
“The defendant engaged in sexually explicit communications and grooming behavior with someone whom he believed to be a 13-year-old girl. Fortunately, he was communicating with an undercover officer,” said U.S. Attorney Bogden. “We will continue to work with our law enforcement partners to protect children from sexual predators.”
According to court records and evidence presented at trial, on or about Dec. 12, 2013 and Jan. 4, 2014, Wescott engaged in a series of emails and text messages with someone whom he believed to be a 13-year-old girl. Wescott posted a provocative ad on mymojovillage.com. An undercover officer with the Henderson Police Department posed as an underage girl and responded to Westcott’s ad. Westcott used the email exchanges to build a relationship with the girl and continued to engage in sexually explicit language. Wescott asked for a face to face meeting with the girl and was arrested at the meeting place.
The case was investigated by the FBI and the Henderson Police Department. The case was prosecuted by Assistant U.S. Attorneys Kilby C. Macfadden and Cristina D. Silva.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Jefferson County man pleads guilty to unlawful possession of firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – Norman Charles Hilbert, 48, of Harpers Ferry, West Virginia, pled guilty in federal court today to illegally possessing a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Hilbert, who was previously convicted of a felony in Connecticut, was discovered in possession of a .45 caliber pistol in Jefferson County, West Virginia. He pled guilty to one count of “Felon in Possession of Firearm,” and he now faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Charles Town Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Jefferson City Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Charles Allen Roark, 38, of Jefferson City, was sentenced by U.S. District Judge Stephen R. Bough to 12 years in federal prison without parole – 10 years, which is the statutory maximum penalty for the offense, plus a consecutive sentence of two years for his supervised release revocation (Roark was on supervised release as part of a federal sentence for a prior conviction of distributing crack cocaine and being a felon in possession of a firearm).
On July 18, 2016, a jury found Roark guilty of being a felon in possession of a firearm. Evidence introduced during the trial indicated that Roark was in possession of a loaded Smith and Wesson .40-caliber pistol on July 18, 2015.
On that date, Jefferson City police officers activated their emergency lights to pull over Roark for having expired license plates. Roark, however, refused to stop and continued driving to the 300 block of Washington Street, where he pulled into a parking lot, got out of his vehicle and fled on foot. Officers pursued Roark on foot. During the pursuit, Roark pulled a pistol from his waistband and threw it on the ground. Roark scaled a fence and continued to flee.
An officer was able to grab Roark and take him to the ground. Roark continued to resist, but officers were able to gain control and was forcibly taken into custody at gunpoint. During the pursuit, one of the officers broke his ankle.
Officers found the loaded pistol lying on the ground during a search of the area. Roark was in possession of $20,131, of which $8,151 was recovered from underneath the soles of his shoes.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Roark has prior federal felony convictions for distributing controlled substances and being a felon in possession of a firearm. Roark also has two prior state felony convictions for possession of controlled substances, two prior state felony convictions for assault, and prior state felony convictions for driving while intoxicated and unlawful use of a weapon.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson City, Mo., Police Department.
Jefferson City Man Sentenced for Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was sentenced in federal court today for possessing and receiving child pornography over the Internet.
Ryan Michael Moberg, 37, of Jefferson City, was sentenced by U.S. District Judge Stephen R. Bough to five years in federal prison without parole.
Moberg was convicted at trial on July 12, 2016. Evidence introduced during the trial indicated that Moberg utilized a peer-to-peer file-sharing program to access child pornography over the Internet. In November 2012, a Boone County, Mo., Sheriff’s Department detective identified Moberg’s computer as sharing files online. One of the video files on Moberg’s computer depicted a young girl engaged in sexual activity with a dog.
Law enforcement officers executed a search warrant at Moberg’s residence in April 2013 and seized an Acer tower computer. Moberg was not home at the time the warrant was executed; investigators went to his workplace and interviewed him. Moberg admitted to investigators that he searched for child pornography online and downloaded it to his computer.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Boone County, Mo., Sheriff’s Department and the Jefferson City, Mo., Police Department.
Project Safe Childhood
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."
Heroin Dealer Sentenced to 30 Years in Prison for Overdose DeathRead the Press Release
NORFOLK, Va. – Carlos A. Brown, 46, of Suffolk, was sentenced today to 360 months in prison for distribution of heroin resulting in death.
According to court documents, Brown sold heroin from his Portsmouth residence from June 2015 to November 2015. On Nov. 18, 2015, Brown contacted one buyer describing the potency of his heroin as a “missile.” He was aware that several of his customers had overdosed, yet sought to obtain more of that same batch of heroin. Shortly thereafter, Brown distributed that heroin and in the early morning hours of Nov. 21, 2015, Ryan Wilson, 27, of Chesapeake, was found dead having used Brown’s heroin. Even after learning of the death of Ryan Wilson, Carlos Brown continued to sell heroin. The law enforcement team made four controlled purchases of heroin and fentanyl from Brown before they arrested him on April 21.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Martin Culbreath, Special Agent in Charge of the FBI’s Norfolk Field Office, Kelvin L. Wright, Chief of the Chesapeake Police Department; and Colonel W. Steven Flaherty, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorneys Andrew C. Bosse and Joseph E. DePadilla prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-67.
Harrison County man sentenced for unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – David Keith Stover, Jr., 37, of Stonewood, West Virginia, was sentenced to 36 months in prison for unlawfully possessing a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Stover, who had previously been convicted of a felony offense in Harrison County, West Virginia, was discovered in possession of three rifles in May 2015. He pled guilty to one count of “Felon in Possession of a Firearm” in August 2016.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Stonewood Police Department investigated.
U.S. District Judge Irene M. Keeley presided.
Grand Jury Indicts Former Erie Man for Violating Federal Firearms LawsRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal firearm laws, United States Attorney David J. Hickton announced today.
The two-count indictment named Ezra Eugene Davis, 32, as the sole defendant.
According to the indictment presented to the court, on October 21, 2016, Davis possessed seven firearms while released on bond awaiting trial on local gun and drug charges. Davis was also charged with the knowing possession of stolen firearms and with possession of firearms while a current user of controlled substances.
The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
This case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Millcreek Township Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Futures Trader Pleads Guilty to Illegally Manipulating the Futures Market in Connection with 2010 “Flash Crash”Read the Press Release
A British futures trader pleaded guilty today to U.S. fraud and spoofing charges in connection with an over five-year scheme to defraud, which included his role in the May 6, 2010, “Flash Crash,” when the Dow Jones Industrial Average plunged 600 points in five minutes, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Michael J. Anderson of the FBI’s Chicago Field Office and Director Aitan Goelman of the U.S. Commodity Futures Trading Commission (CFTC) Division of Enforcement.
Navinder Singh Sarao, 37, of Hounslow, United Kingdom, pleaded guilty to one count of wire fraud and one count of spoofing before U.S. District Judge Virginia Kendall of the Northern District of Illinois. Saro was extradited to the United States on Nov. 7 and made his first court appearance today.
“Navinder Sarao abused sophisticated technology to make a quick profit, and jeopardized the integrity of U.S. financial markets,” said Assistant Attorney General Caldwell. “By flooding the marketplace with bogus orders, his scheme victimized countless individuals. Our success in bringing Sarao to justice in the United States shows that the Criminal Division will root out complex financial fraud and manipulation of the financial markets no matter where the perpetrators are located.”
“This case shows just how seriously we take threats to the integrity of our markets, from wherever they emanate,” said Director Goelman. “The CFTC appreciates Department of Justice's doggedness in ensuring that Sarao faces justice for the harm he caused to the U.S. futures market, despite his being situated an ocean away from American shores, as well as for the assistance of our other law enforcement partners, the FBI and Scotland Yard.”
As part of his guilty plea, Sarao admitted that he used an automated trading program, along with other techniques, to manipulate the market for E-mini Standard & Poor’s (S&P) 500 futures contracts (E-minis), stock market index futures contracts based on the S&P 500 index, through the Chicago Mercantile Exchange (CME). The E-mini S&P 500 is considered among the most widely traded financial products in the world. Sarao admitted that he placed thousands of orders that he did not intend to trade, or “spoof orders,” to create the appearance of substantial false supply and demand and to induce other market participants to trade E-minis at prices and quantities they normally would not have traded. In thousands of instances, Sarao admitted, he was able to induce other market participants into buying or selling E-minis by placing the spoof orders, which had the additional purpose and effect of artificially depressing or artificially inflating the price of E-minis. On the day of the “Flash Crash,” Sarao entered at least 85 spoof orders to sell E-minis, which, at various times throughout that day, represented well over 20 percent of all E-mini sell orders visible to the market, he admitted.According to the plea agreement, in instances when a market reaction occurred, Sarao frequently executed real, genuine orders to buy (typically at artificially low prices) or sell (typically at artificially high prices) E-minis. He admitted that he frequently was able to generate significant trading profits from buying and selling his genuine orders close in time with the placement of the spoof orders. As a result of his scheme, Sarao admitted that he was able to make at least $12.8 million in illicit gains.
The FBI’s Chicago Division is investigating the case. Assistant Chief Robert Zink and Trial Attorney Michael T. O’Neill of the Criminal Division’s Fraud Section are prosecuting the case with assistance from the U.S. Attorney’s Office for the Northern District of Illinois, the Criminal Division’s Office of International Affairs and the International Assistance Unit of the Metropolitan Police Service of London. The CFTC’s Division of Enforcement provided substantial assistance in this case and referred this matter to the department.Former Officer with U.S. Citizenship and Immigration Services Sentenced to nearly 3 Years in Federal Prison in Bribery CaseRead the Press Release
LOS ANGELES – A former immigration services officer with U.S. Citizenship and Immigration Services (USCIS) who had the power to approve applications for citizenship has been sentenced to 33 months in federal prison for taking tens of thousands of dollars in bribes.
Daniel Espejo Amos, 68, of Lakewood, was sentenced late Friday afternoon by United States District Judge Michael W. Fitzgerald.
Amos pleaded guilty in April to one count of conspiracy and one count of being a public official who accepted cash bribes. When he pleaded guilty, Amos admitted that he accepted more than $53,000 in bribes from immigration consultants on behalf of immigrants who were not eligible to become naturalized United States citizens.
“This defendant violated his oath to the United States by accepting more than $53,000 in cash bribes in exchange for helping at least 60 aliens to obtain U.S. citizenship – even though he knew the immigrants did not qualify for this benefit,” said United States Attorney Eileen M. Decker. “This defendant’s corruption also undermined our naturalization system and damaged the public’s faith in government, warranting the sentence imposed by the court.”
In a plea agreement filed in this case, Amos admitted accepting bribes in exchange for committing official acts, including falsely certifying that immigrants had met requirements for citizenship that include “passing” the English competency and civics portions of the naturalization interview and examination administered by USCIS. In at least one case, the immigrant’s English-language skills were so poor that Amos gave him copies of test answers so the immigrant could memorize them prior to his naturalization interview.
The case against Amos is part of an investigation by the U.S. Department of Homeland Security’s Homeland Security Investigations (HSI); the U.S. Department of Homeland Security, Office of the Inspector General; and the Federal Bureau of Investigation.
“As the largest investigative arm of the Department of Homeland Security, one of HSI’s top enforcement priorities is targeting the criminals and criminal organizations that undermine the integrity of our nation’s legal immigration system,” said Joseph Macias, special agent in charge for HSI Los Angeles. “We will continue to work with our counterparts to investigate those who misuse their positions of authority to manipulate and exploit that system for their own personal financial gain."
John Roth, Department of Homeland Security Inspector General, stated that “The Office of Inspector General is committed to working with our law enforcement partners to aggressively investigate all allegations of corruption by DHS employees, ensuring the integrity of DHS programs, personnel, and operations.”
This case was prosecuted by Assistant United States Attorney Elisa Fernandez of the Public Corruption and Civil Rights Section.
Former New York City Building Inspector and the Owner of A Demolition Company Indicted for ExtortionRead the Press Release
A one-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Massimo Dabusco, also known as “Max,” and Vito Menadi with conspiracy to commit extortion. The indictment was returned under seal by a federal grand jury sitting in Brooklyn on November 1, 2016, and relates to Dabusco’s alleged activities as an Inspector with the New York City Department of Buildings (DOB) and his silent partnership with Menadi in A&G Contracting Group Corp. (A&G), a demolition and excavation company. Dabusco resigned from his job as a DOB Inspector in August 2015.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Mark G. Peters, Commissioner New York City Department of Investigation.
The indictment alleges that Dabusco served as a silent partner to Menadi in A&G in violation of the New York City law. Further, Dabusco used his official position to influence property owners and contractors, over whom Dabusco had regulatory authority, to hire A&G and Menadi to perform excavation and demolition jobs. As part of his efforts to secure business for A&G, Dabusco illegally warned contractors about impending DOB inspections. In exchange for his conduct, Dabusco received a share of A&G’s profits.
Additionally, Dabusco allegedly abused his position as a DOB Inspector by threatening punitive action against contractors and property owners in an effort to benefit Menadi and A&G. For instance, Dabusco threatened to use his authority as a DOB Inspector to shut down all of a contractor’s existing jobs if the contractor did not pay outstanding fines owed by Menadi and A&G.
“New York City’s Building Inspectors are entrusted with a vitally important public safety mission. Today’s indictment makes clear that public officials who place personal gain above this public trust and those who assist those officials in such corrupt practices, will be aggressively prosecuted. Maintaining safe buildings and safeguarding the health and wellbeing of New Yorkers demands no less,” stated United States Attorney.
“Public officials, whether elected, appointed, or employed, have a duty to maintain honest and faithful public service. Using your position to influence the decisions of others, and receiving something of value in return, is a direct violation of the law. As alleged, Dabusco may have tried to build up his business by engaging in corrupt activity, but now he’ll have to answer for his actions,” stated FBI Assistant Director-in-Charge Sweeney.
DOI Commissioner Peters said, “Once again, DOI, along with its law enforcement partners, has found a City building inspector corruptly abusing his power and authority, conspiring with his co-defendant to shakedown property owners by threatening them with DOB violations, and pressuring them to steer business to a preferred contracting company, according to the charges. This investigation demonstrates the importance of coordination between the United States Attorney’s Office for the Eastern District of New York and the Federal Bureau of Investigation and the need for DOI to continue its enforcement efforts in the building and construction industry.”
The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Steven L. Tiscione at the federal courthouse in Brooklyn. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorney Martin Coffey.
The Defendants:
MASSIMO DABUSCO
Age: 54
Yorktown Heights, New YorkVito Menadi
Age: 43
Brooklyn, New York,E.D.N.Y. Docket No.16 Cr 0559(ILG)
Former Navy Recruiter Sentenced to 17 Years on Child Coercion and Enticement ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. District Court Judge Max O. Cogburn, Jr. sentenced yesterday a Weaverville, N.C. man to 204 months in prison on child coercion and enticement charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Cogburn also ordered Benjamin Ernest Johnson, 39, to serve a lifetime of supervised release and to register as a sex offender after he is released from prison. Johnson pleaded guilty in May 2016 to one count of Coercion and Enticement of a minor.
John A. Strong, Special Agent in Charge of the FBI in North Carolina, and Sheriff Van Duncan of the Buncombe County Sheriff’s Office join U.S. Attorney Rose in making today’s announcement.
“Johnson was a wolf among sheep, a predator who took advantage of his access to high school students and used his position of trust to sexually exploit impressionable young victims. His conduct is not only a disgrace to all military personnel, it is also criminal. And for that, he will deservedly serve time in federal prison,” said U.S. Attorney Rose.
“Benjamin Johnson was trusted to advise young people about the benefits of a military career. Instead, he used that access to manipulate children for his own vile sexual gratification. The FBI has zero tolerance for those who prey on our children,” said Special Agent in Charge Strong.
“No form of sexual misconduct is ever acceptable anywhere in the Department of the Navy. Ensuring the safety of our Navy applicants and members of the communities we work in is our top priority. Upon notice of the allegations of misconduct with a minor, the former service member was immediately removed from all recruiting duties and subsequently discharged from the Navy. We will continue to train our Navy recruiters on appropriate behavior when working with Navy applicants and we will continue to enforce high standards and professional conduct,” said
Commander Stan Dickerson, Commanding Officer Naval Recruiting District Raleigh.According to filed court documents and yesterday’s sentencing hearing, in February 2014 Johnson was a United States Navy Petty Officer First Class on active duty stationed in Asheville. Johnson’s duties were to conduct recruiting of high school students in Western North Carolina. According to court records, sometime in the fall of 2013, Johnson was assigned as a recruiter at a high school in Buncombe County. Over the course of his official duties as a recruiter, Johnson met child victim one (CV1), a 15-year-old female high school student who was enrolled in the school’s Naval Junior Reserve Officer Training Corps (NJROTC). Court records indicate that Johnson began to communicate with CV1 via instant messaging, and over the course of their exchanges Johnson solicited and received sexually explicit images of CV1. Johnson also sent the minor sexually explicit images of himself.
According to court records, Johnson also solicited sexually explicit photos from another child victim (CV2) Johnson met in 2011 when the victim was a freshman in high school. Johnson maintained a relationship with CV2 until March 2014. Court records indicate that Johnson met the victim when he was a recruiter at CV2’s high school, where the victim was a NJROTC student. According to court records, CV2 and Johnson became friends on social media after the victim enrolled in a different high school in the area. Court records show that Johnson induced CV2 to send him multiple sexually explicit images of herself via instant messaging. Johnson also sent CV2 multiple sexually explicit images of himself. According to court records, CV2 indicated that she and Johnson had scheduled an upcoming trip to a military testing location and Johnson was going to use it as an opportunity to have physical contact with the victim.
In announcing today’s sentence Judge Cogburn said, “This is a serious crime with a serious punishment.”
Johnson has been in custody since May 11, 2016. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentencings are served without the possibility of parole.
The FBI and the Buncombe County Sheriff’s Office led the investigation and were assisted by the Asheville Police Department. In making today’s announcement, U.S. Attorney Rose also thanked the Department of the Navy for their cooperation and assistance with the investigation.
Assistant United States Attorney David A. Thorneloe of the U.S. Attorney’s Office in Asheville prosecuted the case.
Former Boston Police Officer Sentenced for Access Device FraudRead the Press Release
BOSTON – A former Boston Police Officer was sentenced yesterday in connection with purchasing and using gift cards obtained from the return of stolen merchandise.
Eddie Odney, 38, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to 36 months of probation, a fine of $10,000 and forfeiture of $1,600.
In August 2016, Odney pleaded guilty to one count of access device fraud and, as part of his plea agreement, resigned as a Boston Police Officer.
Over the course of over a year and a half, including all of 2015, Odney purchased approximately $5,000 worth of gift cards that he knew were obtained from the return of stolen merchandise at stores including T.J. Maxx, Macy’s, and HomeGoods. Odney paid cash for the cards and used them to make over $1,600 in purchases in 2015.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation; and Superintendent Frank Mancini of the Boston Police Department’s Anti-Corruption Division; made the announcement. The case was prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Former Background Investigator for Federal Government Sentenced for Making a False StatementRead the Press Release
WASHINGTON – Edward J. Kincade, 63, a former background investigator who did work under contract for the U.S. Office of Personnel Management (OPM), was sentenced today to 60 days of incarceration for his falsification of work on background investigations of federal employees and contractors, announced U.S. Attorney Channing D. Phillips and Norbert E. Vint, Deputy Inspector General for the Office of Personnel Management (OPM).
Kincade, of Guyton, Ga., pled guilty in August 2016, in the U.S. District Court for the District of Columbia, to making a false statement. He was sentenced by the Honorable Randolph D. Moss. Following the period of incarceration, Kincade will be placed on three years of supervised release; the first six months of that time must be spent on home detention. Kincade also must perform 100 hours of community service and pay $264,312 in restitution to the federal government.
According to a statement of offense submitted to the Court, Kincade was employed by USIS, formerly known as U.S. Investigations Services Inc. In that role, Kincade was an investigator under contract to conduct background investigations on behalf of OPM’s Federal Investigative Services, which now is known as the National Background Investigations Bureau.
Between August 2011 and September 2012, in more than 30 Reports of Investigations on background investigations, Kincade represented that he had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, he had not conducted the interviews or obtained the records of interest. These reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, for receiving or retaining security clearances, or for positions of public trust.
Kincade’s false representations have required Federal Investigative Services to reopen and rework numerous background investigations that were assigned to him during the time period of his falsifications, at an estimated cost of at least $264,312 to the U.S. government.
Federal Investigative Services has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. In addition to Kincade, 22 other background investigators and two record checkers have been convicted of charges.
Federal Investigative Services, through its workforce of approximately 5,400 field investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. Federal Investigative Services conducted more than 2.4 million investigations during the 2015 fiscal year. More than 600,000 of these investigations involved applicants for access or continued access to classified information.
In performing background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation. After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individual’s eligibility for employment or a security clearance.
In announcing the sentence, U.S. Attorney Phillips and Deputy Inspector General Vint praised the efforts of Special Agent Shantel Robinson, OPM, Office of the Inspector General, and Philip Kroop, Kevin Cassidy, and Jeffrey Addicks, OPM, Federal Investigative Services. They also acknowledged the work of Paralegal Specialist Jessica Mundi of the U.S. Attorney’s Office, as well as Assistant U.S. Attorney Ellen Chubin Epstein, who investigated and prosecuted this matter.
Federal Racketeering Indictment Targets Wilmington Street GangRead the Press Release
LOS ANGELES – Authorities have arrested 17 members and associates of the Wilmas street gang who are named in a federal racketeering indictment that alleges acts of murder, attempted murder, narcotics trafficking, robbery and witness intimidation – as well as a series of armed attacks on law enforcement officers dating back to 2008.
The 17 people arrested this morning and late Tuesday are among 29 defendants named in a 111-page indictment that alleges violations of the federal Racketeer Influenced and Corrupt Organizations (RICO) Act. The arrests were made by officers with the Los Angeles Police Department, special agents with the Drug Enforcement Administration and other law enforcement authorities, including the United States Marshals Service and the FBI.
In addition to those arrested during the Operation “Tidal Wave,” 10 defendants were already in custody on unrelated charges. Authorities are continuing to search for two defendants.
During the course of the investigation, law enforcement seized nearly eight pounds of methamphetamine and 10 firearms, including one linked to a shooting.
“This federal indictment seeks to dismantle the leadership of the Wilmas street gang, a particularly violent street gang that regularly targets members of the community and law enforcement officers for murder,” said United States Attorney Eileen M. Decker. “The devastating impact that this gang has had on the community cannot be overstated, but today’s takedown will help to restore order across Wilmington and ensure that those responsible for the violence and other criminal acts will be taken off the streets for years.”
Operation Tidal Wave targeted the Wilmas gang, which has operated in the Wilmington District of Los Angeles since the 1950s and is affiliated with the Mexican Mafia. As a “surenos” gang, the Wilmas gang “is loyal to, supports and contributes to the Mexican Mafia,” according to the indictment, which outlines how leaders of the prison gang issues orders to kill rival gang members and members of law enforcement.
The federal indictment unsealed this morning outlines a criminal enterprise that controls the drug trade in Wilmington, collects “taxes” from drug dealers for the benefit of Mexican Mafia members, maintains a supply of often-illegal firearms, and takes retribution against people who may be cooperating with law enforcement. Wilmas gang members murdered two 16-year-old victims on February 26, 2012, according to the indictment.
“The Wilmas gang is also a racist organization and has been historically antagonistic to the presence of African-Americans in Wilmas gang territory,” the indictment alleges. “Wilmas gang members have frequently targeted African-Americans who enter or attempt to reside within the area claimed by the Wilmas gang.”
Operation Tidal Wave was conducted under the auspices of the Los Angeles High Intensity Drug Trafficking Area (HIDTA) Task Force, which is coordinated by the Drug Enforcement Administration.
“This joint investigation targeted a very violent and ruthless criminal gang that has terrorized the citizens of Wilmington for too long,” said DEA Special Agent in Charge Steve Comer. “The HIDTA Task Force is dedicated to dismantling the most prolific, local area drug trafficking organizations and today’s actions demonstrate that commitment – we’re allied with our law enforcement partners to make our communities safer.”
The 31-count indictment alleges a conspiracy to violate RICO; numerous criminal offenses that violated the RICO statute, including murder, distribution of methamphetamine, extortion, and witness tampering; violent crimes in aid of racketeering, conspiracy to trafficking narcotics, possession with the intent to distribute methamphetamine and one defendant is accused of being a felon in possession of a shotgun.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Most of the 29 defendants named in the indictment face potential life sentences if they are convicted, and most potentially face mandatory minimum sentences of 10 years in federal prison.
This case is being prosecuted by Assistant United States Attorney Christopher Brunwin of the Violent and Organized Crime Section.
Executive Office for Immigration Review Expands Legal Orientation Program SitesRead the Press Release
FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced the expansion of the Office of Legal Access Programs’ Legal Orientation Program (LOP) to three additional detention sites: Irwin County Detention Center in Ocilla, Ga.; Polk County Detention Center (IAH Secure) in Livingston, Texas; and Rolling Plains Detention Center in Haskell, Texas. Through the LOP, EOIR contracts with representatives from non-profit organizations to provide explanations about immigration court policies and procedures to groups of detained individuals. This new expansion brings the number of LOP sites to 41.
Since 2002, EOIR has carried out the LOP to improve judicial efficiency in the immigration courts, and to assist detained individuals and others involved in removal proceedings to make timely and informed decisions. Under the LOP, EOIR’s contractors provide group and individual orientations, self-help workshops, and pro bono referral services for individuals in removal proceedings.
Please see EOIR’s Office of Legal Access Programs Fact Sheet for more information on the LOP and EOIR's additional legal access programs.
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals – whom the Department of Homeland Security charges with violating immigration law – should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.