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31 October 2016
Oak Park Man Sentenced for Defrauding Cisco SystemsRead the Press Release
An Oak Park engineer was sentenced yesterday to 21 months in prison for illegally obtaining $400,000 in computer equipment in a wire fraud scheme, U.S. Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
U.S. District Judge Robert H. Cleland imposed sentence on Lahai Charles, 36, former employee of Federal-Mogul Corporation. Judge Cleland also imposed a two-year term of supervised release and ordered Charles to pay $414,000 in restitution to Cisco Systems, Inc. and $3,100 to Federal-Mogul. Charles pleaded guilty to one count of wire fraud in June.
According to court records, Charles was employed in Southfield by Federal-Mogul Corporation as an IT networking engineer. Federal-Mogul is a supplier of parts to businesses in the automotive industry and other sectors. Charles managed network switches for a number of Federal-Mogul offices in North America and South America. Cisco Systems, Inc., a computer technology company based in San Jose, California, provided computer equipment and support services to Federal-Mogul’s IT operations. During a 15-month period, Charles used his position at Federal-Mogul to exploit Cisco’s programs to provide IT support services to its large corporate customers. He obtained Cisco IT equipment through a series of false statements to Cisco and then sold the equipment to third parties through a secondary market broker. He did this to enrich himself, spending some of the funds on several personal trips to South America.
The case was investigated by the FBI, with assistance from Cisco Systems and Federal-Mogul, and prosecuted by Assistant U.S. Attorney Stephen Hiyama.
Northern Floridians May Report 2016 Election Violations to U.S. Attorney's OfficeRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Christopher P. Canova will lead the efforts of the United States Attorney's Office, Northern District of Florida, in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. As the United States Attorney and District Election Officer, United States Attorney Canova is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses, in consultation with Justice Department Headquarters.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls. The Department’s long-standing Election Day Program seeks to ensure public confidence in the integrity of the election process by providing local points of contact for the public to report election violations while the polls are open on Election Day. This program deters election fraud and discrimination by increasing the Department’s ability to prosecute these offenses when they occur.
United States Attorney Christopher P. Canova said, “The ability to exercise the right to vote is the centerpiece of American democracy. The Department of Justice will act aggressively to ensure that those who are entitled to vote may do so and that those who seek to corrupt the integrity of the process are brought to justice. It is imperative that anyone with specific information about voting abuses or election fraud share the information with my office, the FBI, or the Department of Justice, so that we may ensure an open and fair election process.”
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also protects voters from intimidation and harassment. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
To respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, District Election Officer Christopher P. Canova will be on duty in this District while the polls are open. He can be reached at (850) 942-8430.
The FBI will also have Special Agents available in each field office and resident agency in the Northern District of Florida to receive and respond to allegations of election fraud, voter intimidation, voter suppression, and other election abuses. The FBI can be reached by the public at (904) 248-7000.
Complaints about possible violations of federal voting rights laws can be made directly to the Civil Rights Division's Voting Section in Washington at (800) 253-3931 or (202) 307-2767, by fax at (202) 307-3961, by e-mail to [email protected], or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php. The DOJ 2016 Election press release also contains additional information.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]North Dakota Man Found Guilty of Several Charges Related to Child PornographyRead the Press Release
BISMARCK - US Attorney Christopher C. Myers announced that on October 31, 2016, Calvin Bernhardt, 54, Tuttle ND, was found guilty following nearly four days of trial on charges of Attempted Sexual Exploitation of a Minor, Attempted Receipt of Materials Depicting the Sexual Exploitation of a Minor, Counterfeit Currency, Tampering with Witness or Evidence, and Attempted Travel with Intent to Engage in Sexual Acts with a Minor.
From approximately September 2015 to approximately March 2016, Bernhardt induced and enticed a 14-year-old minor from the Philippines to engage in and produce images of sexually explicit conduct via the internet; Bernhardt further induced the minor to send him the sexually explicit or sadistic and masochistic images. Once Bernhardt became aware of an investigation into his illegal conduct, he contacted the mother of the victim in the Philippines and instructed her to delete any images of himself and the minor on the minor’s cellphone and further instructed her to not talk to United States federal law enforcement officials in the Philippines. Communications between Bernhardt and the victim revealed that Bernhardt was attempting to arrange a meeting with the minor in a Philippines hotel with the intent of engaging in sexual acts with her.
Assistant United States Attorney Gary Delorme stated, "The United States and the District of North Dakota will not tolerate this kind of conduct and victimization of children over the internet regardless of where the victim is located. People engaging in this kind of conduct should expect to be vigorously prosecuted in this District."
This case was investigated by the Department of Homeland Security-Homeland Security Investigations in Bismarck; Homeland Security Investigations-Manila, Philippines; and the North Dakota Bureau of Criminal Investigation.
Assistant US Attorneys Gary Delorme and Jon O’Konek prosecuted the case.
North Carolina Businessman Pleads Guilty to Misappropriating Approximately $2.9 Million in Funds from NFL PlayersRead the Press Release
Failed to Report More Than $1.4 Million in Embezzled Funds on Tax Returns
A North Carolina businessman, who provided financial services to professional athletes, pleaded guilty today to wire fraud and filing a false 2011 income tax return, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Ripley Rand for the Middle District of North Carolina.
Michael Rowan, 46, a resident of High Point, North Carolina, operated Capital Management Wealth Advisors Inc. (CMG) and APS Management LLC (APS), along with his business partner. Through CMG and APS, Rowan provided financial and investment services to professional athletes, including players in the National Football League (NFL). From May 2008 through August 2014, Rowan converted and misappropriated approximately $2.9 million from his clients’ bank accounts. For 2009 through 2013, Rowan failed to report the misappropriated funds on his federal income tax returns.
According to documents filed with the court, Rowan, through CMG and APS, contacted prospective NFL Players in college to offer them financial and wealth management services, including bill payment, investment services and financial guidance. Once a player was drafted by the NFL, Rowan would enter into a verbal agreement with the player to provide financial services for an annual fee of between $15,000 and $50,000. Rowan directed his clients to execute an agency agreement that allowed Rowan access to the clients’ bank accounts. Rowan represented to his clients that he would only make transactions that were authorized by the clients and for the clients’ benefit. However, Rowan used his access to his clients’ bank accounts to transfer over $2.9 million for his own personal benefit and without his clients’ authorization or knowledge.
Sentencing is scheduled for Jan. 31, 2017. Rowan faces a statutory maximum sentence of 20 years in prison for the wire fraud count and three years in prison for the false tax return count, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of Internal Revenue Service-Criminal Investigation and U.S. Postal Inspection Service, who conducted the investigation, and Assistant U.S. Attorney Frank Chut and Trial Attorney Mara Strier of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York meth dealer sentenced to over seven years in federal prisonRead the Press Release
HUNTINGTON, W.Va. – A New York City drug dealer was sentenced to seven years and three months in federal prison for a methamphetamine crime, announced United States Attorney Carol Casto. Jamel Proctor, 31, previously pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine.
On May 13, 2016, a suspicious parcel was searched by an inspector with the United States Postal Service. The parcel was addressed to Jamel Proctor’s residence at 515 Flora Court in Huntington. The package contained over 900 grams of methamphetamine. Agents then conducted a controlled delivery of the package to 515 Flora Court, and Proctor’s girlfriend accepted the package. In a search of the residence immediately following the controlled delivery, the package was recovered and the agents located Proctor inside the residence. Agents also discovered a loaded firearm inside the residence. In a subsequent search of Proctor’s vehicle, agents located four additional firearms and an additional 173 grams of methamphetamine in two separate duffel bags. A surveillance team had seen Proctor place the bags in his vehicle earlier that day.
The Huntington FBI Drug Task Force, the United States Postal Inspection Service, and the Cabell County Sheriff’s Department conducted the investigation. Assistant United States Attorney Gregory McVey is in charge of the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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New York City Police Officer Merlin Alston Convicted in Manhattan Federal Court for Participating in A Drug Distribution ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), announced that New York City Police Officer MERLIN ALSTON, 33, was convicted today of narcotics and firearms charges for his role in a long-running conspiracy to distribute large amounts of cocaine and molly in the Bronx. The jury convicted ALSTON on both counts in the controlling indictment following a two-week trial before U.S. District Judge Colleen McMahon.
U.S. Attorney Preet Bharara stated: “Rather than use his police badge and gun to serve and protect the citizens of New York City, Merlin Alston instead chose to protect and serve major Bronx drug dealers. Today’s unanimous jury verdict demonstrates that no one is above the law.”
DEA Special Agent in Charge James J. Hunt said: “Merlin Alston’s crimes were an about-face to law enforcement. As members of the New York Drug Enforcement Task Force worked to rid our communities of drugs, he was pushing drugs into them. I applaud our law enforcement partners and the U.S. Attorney’s Office Southern District of New York for their efforts in this investigation.”
According to court papers and evidence admitted at trial:
From 2010 to 2014, MERLIN ALSTON, who at the time was an active NYPD police officer, conspired with others to distribute large quantities of narcotics. ALSTON personally delivered approximately 40 kilograms of cocaine during that time. In addition, ALSTON provided armed security to a cocaine trafficker, using a shotgun and his NYPD service weapon to do so. ALSTON also provided confidential information about law enforcement operations, including arrests and surveillance, to several Bronx drug dealers.
For these activities, ALSTON was convicted of one count of conspiracy to distribute narcotics and one count of possession of firearms in furtherance of the narcotics conspiracy. ALSTON faces a mandatory minimum of 15 years in prison and a maximum sentence of life in prison. ALSTON is scheduled to be sentenced on February 2, 2017, before Chief Judge McMahon. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Bharara thanked the Office of the Special Narcotics Prosecutor for the City of New York for its invaluable assistance, and praised the DEA, the FBI, and the NYPD for their outstanding work in this investigation. The DEA New York Drug Enforcement Task Force comprises agents and officers of the DEA, the NYPD, and the New York State Police.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Jared Lenow and Thomas McKay are in charge of the prosecution.
National Institute of Justice Awards Funding to Study Elder AbuseRead the Press Release
WASHINGTON, DC – The Department of Justice’s (DOJ’s) National Institute of Justice (NIJ) awarded nearly $800,000 to the Urban Institute and the University of Southern California to develop and test prevention programs addressing elder abuse, neglect and financial exploitation. The awards, which were also supported by DOJ’s Elder Justice Initiative, underscore NIJ’s work to identify evidence-based solutions to elder mistreatment and evaluate their effectiveness in prevention, detection and intervention. The awards establish an initial planning phase for an Elder Abuse Prevention Demonstration Project. Following the planning phase, NIJ will fund multi-year demonstration evaluations.
“There is no age limit on victimization,” said NIJ Director Nancy Rodriguez. “These awards are another step toward enabling evidence-based approaches to protect our elderly from abuse and neglect, while also holding accountable those who exploit and victimize our seniors.”
The Urban Institute was awarded $399,970 to design and implement an elder abuse prevention pilot project with at-risk adults 60 and older in Maricopa County, Ariz. This 18-month study will result in a published manual, including information for implementing and replicating the program in other locations. Following completion, the institute will perform a multi-year demonstration of the program.
The University of Southern California was awarded $400,000 to develop an innovative elder mistreatment intervention based upon lessons learned from preventing other forms of family violence, such as child maltreatment and intimate partner violence. The award will support the first phase of a three-part project led by the university in partnership with health professionals and stakeholders. Adults 65 and older will have the opportunity to take part in the first phase. Following completion, the university will perform a multi-year demonstration of the program.
More information on NIJ’s elder abuse projects is located here: http://nij.gov/topics/crime/elder-abuse/Pages/welcome.aspx
More information on DOJ’s Elder Justice Initiative can be found at www.elderjustice.gov.
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About the Office of Justice Programs: OJP, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.
Massachusetts Man Pleads Guilty to Failure to Register ChargeRead the Press Release
CONCORD, N.H. – United States Attorney, Emily Gray Rice announced today that Beau Shields, 29, of Barre, Massachusetts, pleaded guilty to one count of failing to register as a sex offender as required by the federal Sexual Offender Registration and Notification Act (SORNA).
According to court documents and statements made in court, Shields moved from New Hampshire to Massachusetts sometime before April 2016. Shields never registered in Massachusetts until after he was charged by the grand jury in New Hampshire. On two occasions, in April 2016 and July 2016, Shields reported his address as a residence located in Barre, Massachusetts. Shields was not registered as a sex offender in Massachusetts at the time he reported that he was living at the residence in Barre.
SORNA mandates that a person who is required to register must register in each jurisdiction where he resides, is employed or is going to school. SORNA gives an individual three days in which to register.
A sentencing hearing is scheduled for February 13, 2017.
The case was investigated by the United States Marshals Service and was prosecuted by Assistant U.S. Attorney Donald Feith.
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Manhattan U.S. Attorney Announces Charges Against Six Individuals for Their Role in International Money Laundering Scheme Involving over $100 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William J. Cotter, Special Agent-in-Charge of the San Antonio Field Office of the Internal Revenue Service, Criminal Investigations (“IRS-CI”), and Terence S. Opiola, Special Agent in Charge of the Newark Field Office of the Department of Homeland Security, Homeland Security Investigations (“HSI”), announced today a complaint charging CARLOS DJEMAL, ISIDORO HAIAT, BRAULIO LOPEZ, MAX FRAENKEL, DANIEL BLITZER, and ROBERT MORENO with international money laundering and wire fraud as well as conspiracies to commit these same offenses. DJEMAL was arrested in Chicago, Illinois; MORENO was arrested in Dallas, Texas; FRAENKEL was arrested in Austin, Texas. BLITZER will be presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Andrew J. Peck. HAIAT and LOPEZ have not been apprehended.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Carlos Djemal, Isidoro Haiat, and their co-defendants used the U.S. banking system to commit an international fraud scheme that deprived the Mexican government of substantial tax revenue and involved the laundering of over $100 million. Thanks to the outstanding investigative work of HSI and the IRS, these alleged criminals will now face charges in an American court.”
IRS-CI Special Agent-in-Charge William J. Cotter said: “This investigation took law enforcement above and beyond its traditional role in financial crimes. In effect, it put us squarely in the middle of the high-tech world of banking and the sophisticated electronic movement of money. This investigation serves to remind us that there is no such thing as free money and there are no awards or incentives for creativity when it comes to crime.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
Beginning in or about June 2011 through in or about at least May 2016, CARLOS DJEMAL, ISIDORO HAIAT, BRAULIO LOPEZ, MAX FRAENKEL, DANIEL BLITZER, and ROBERT MORENO were engaged in a scheme to defraud the Mexican government of tax revenue relating to Mexico’s value added tax (“VAT”) and then launder the proceeds of the scheme throughout the United States and Mexico. The Mexican government imposes VAT on goods sold from one Mexican company to another; however, when certain goods (such as cellular phones) are exported from Mexico, the previously-paid VAT is refunded to the exporter. DJEMAL, HAIAT, LOPEZ, MORENO, FRAENKEL, and BLITZER created and controlled dozens of companies (the “Front Companies”) purportedly doing business as importers and exporters of cellular phones in order to fraudulently obtain VAT refunds from the Mexican government.
In order to carry out the scheme, DJEMAL and HAIAT caused Front Companies in Mexico to purchase outdated cellular phones from other companies seeking to sell outdated inventory. DJEMAL and HAIAT then caused these phones to be exported to Front Companies in the United States owned and operated by others involved in the scheme. During the export process, DJEMAL and HAIAT obtained fraudulent invoices and created export documents that each falsely inflated the value of the phones being exported, thereby enabling them to fraudulently seek inflated VAT refunds from the Mexican tax authority.
Once the phones were shipped to the United States, they were transferred to one or more Front Companies in the United States created by LOPEZ, MORENO, FRAENKEL, or BLITZER, and then shipped back to a different Front Company in Mexico. Through this process, the phones were shipped repeatedly in a circular fashion between Front Companies controlled by the defendants and their co-conspirators in Mexico and the United States, enabling DJEMAL and HAIAT, to obtain multiple fraudulent VAT refunds for the same phones.
In order to create the appearance of legitimate cell phone sales, each transfer of phones was generally accompanied by a transfer of funds to and from accounts held in the name of the relevant Front Companies and owned and controlled by the defendants or their co-conspirators. As part of the scheme, each defendant or co-conspirator who controlled a Front Company receiving funds as part of the scheme retained approximately 1% for his participation in the scheme.
Between approximately June 2011 to approximately May 2016, DJEMAL, HAIAT, LOPEZ, MORENO, FRAENKEL, and BLITZER moved more than $100 million dollars through dozens of accounts maintained by Front Companies in this fashion, including through accounts maintained at a financial institution in the Southern District of New York.
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Mr. Bharara praised the outstanding work of HSI and IRS-CI for their investigative efforts and ongoing support and assistance with the case. Mr. Bharara also thanked the Government of Mexico, and in particular the Secretaría de Hacienda y Crédito Público, for their assistance and collaboration in this investigation.
The prosecution of this case is being overseen by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Jaimie L. Nawaday is in charge of the case.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man Who Embezzled $125,000 from Connecticut Nonprofit is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that THOMAS RECCK, 52, of Cincinnati, Ohio, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to five years of probation, the first six months of which RECCK must serve in home confinement, for embezzling from a Connecticut-based nonprofit organization. Judge Meyer also ordered RECCK to perform 600 hours of community service while on probation.
According to court documents and statements made in court, RECCK, a former resident of New Britain, was the Treasurer for Connecticut Canine Search and Rescue, Inc. (“CCSAR”) in Kensington, a volunteer-based nonprofit organization dedicated to the search and rescue of missing and lost persons in the United States by using trained search and rescue dogs. In his capacity as the treasurer, RECCK had access to the bank accounts of CCSAR. From approximately January 2008 to August 2012, RECCK transferred more than $125,000 from CCSAR accounts into a separate account that he controlled and used the funds to gamble and for other personal expenses.
RECCK also failed to report the stolen funds on his federal tax returns.
On February 4, 2015, RECCK pleaded guilty to one count of wire fraud and one count of filing a false tax return.
RECCK was ordered to pay restitution in the amount of $125,649.77, as well as back taxes, penalties and interest for the 2008 through 2012 tax years.
This investigation was conducted by the Connecticut Financial Crimes Task Force, the Internal Revenue Service – Criminal Investigation Division and the Greenwich Police Department. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Lake County Resident Sentenced to over Five Years in Prison for Armed Bank RobberyRead the Press Release
SAN FRANCISCO – Samuel Campbell was sentenced to 70 months in prison for armed bank robbery, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence, handed down last Friday, October 28, 2016, by the Honorable Susan Illston, U.S. District Judge, follows a guilty plea entered earlier this year.
Campbell, 26, formerly of Lake County, pleaded guilty on May 13, 2016, to a single count of armed bank robbery, in violation of 18 U.S.C. §§ 2113(a) and (d). According to the plea agreement, Campbell admitted that on the morning of July 8, 2015, he drove to a bank branch in Clearlake, Calif., and robbed it. During the robbery, he held what appeared to be a handgun while shouting commands to the bank employees. He stole more than $3,000 in cash from the bank and $120 from a bank customer.
In addition to the prison term, Judge Illston also ordered Campbell to serve a 5-year term of supervised release and ordered him to pay restitution in the amount of $3,137. Campbell currently is in custody and will begin serving his sentence immediately.
Special Assistant U.S. Attorney Philip Kopczynski is prosecuting the case with the assistance of MK Swartsfager. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Clearlake Police Department.
Laguna Pueblo Man Sentenced to Prison for Federal Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Benjamin Shiosee, 38, a member and resident of Laguna Pueblo, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 36 months in prison followed by 25 years of supervised release. Shiosee will also be required to register as a sex offender after he completes his prison sentence.
Shiosee, a former certified nursing assistant, was arrested on March 1, 2016, on a criminal complaint alleging that he sexually abused a patient on Sept. 4, 2015, on the Laguna Pueblo in Cibola County, N.M.
On April 21, 2016, Shiosee pled guilty to an information charging him with abusive sexual contact. In entering the guilty plea, Shiosee admitted that on Sept. 4, 2015, he sexually abused the victim within the Laguna Pueblo.
This case was investigated by the Albuquerque office of the FBI and the Laguna Pueblo Tribal Police Department. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
La Oficina De La Fiscalía Federal Le Recuerda A Los Votantes De Nueva Jersey Que Pueden Usar La Línea Telefónica De Ayuda Electoral El Día De Las Elecciones Para Reportar Irregularidades O Abusos ElectoralesRead the Press Release
NEWARK, N.J. – El Fiscal Federal para el distrito de Nueva Jersey, Paul J. Fishman, le está recordando a los votantes de Nueva Jersey que la Oficina de la Fiscalía Federal para el distrito de Nueva Jersey estará dispuesta a recibir y a responder a reportes de irregularidades electorales, intimidación a los votantes y cualquieras otras actividades que puedan interferir con los derechos electorales de los ciudadanos el 8 de noviembre del 2016. La línea telefónica de ayuda electoral – (888) 636-6596 – estará activa desde el 7 de noviembre del 2016 hasta el 9 de noviembre del 2016 y será atendida en vivo el día de las elecciones en inglés y en español.
Cada año, la Oficina de la Fiscalía Federal para el distrito de Nueva Jersey, y otras agencias federales del orden público, encabezadas por el FBI, trabajan conjuntamente con la Oficina del Fiscal General de Nueva Jersey y las juntas electorales de los condados para responder a quejas electorales y dirigir las quejas a las autoridades apropriadas.
El Departamento de Justicia tiene por objeto garantizar que todos los votantes calificados tengan la oportunidad de emitir su voto y que sus votos cuenten, sin discriminación, intimidación o fraude. Fundada en el año 2010, esta iniciativa anual tiene como meta fomentar la confianza pública en la integridad del proceso electoral al proporcionar puntos de contacto locales dentro del Departamento de Justicia para que el público pueda reportar posibles violaciones de los derechos electorales y fraude electoral, mientras que las urnas estén abiertas el día de las elecciones.
La ley federal proteje a los cuidadanos contra crímenes electorales tales como la intimidación y el soborno de los votantes, la suplantación de votantes, la alteración de los lotes de votos, el relleno de las urnas electorales, y el marcar a las boletas para los votantes en contra de los deseos de los votantes y sin la participación de estos.
La ley también contiene protecciones especiales para los votantes para asegurar que estos puedan votar libre de intimidación o acoso. Por ejemplo, las acciones destinadas a interrumpir o intimidar a los votantes en los centros electorales, tal como cuestionando, desafiando, fotografiando o grabando los votantes, usando como pretexto que tales acciones son para descubrir actividades ilegales electorales, pueden en sí violar las leyes federales que protegen los derechos electorales. Además, la ley federal protégé el derecho de los votantes a marcar sus propias boletas o a ser asistidos para marcar sus boletas por una persona elegida por el votante.
El personal de la División de Derechos Civiles del Departamento de Justicia en Washington también estará disponible por teléfono para recibir denuncias relacionadas a los derechos electorales (1-800-253-3931 peaje gratis o 202-307-2767) o por TTY (202-514-0716). Además, las personas también pueden reportar quejas, problemas o inquietudes relacionadas con la votación por fax al 202-307-3961 , por correo electrónico a [email protected], y usando formularios de reclamaciones que puedan presentarse a través de un enlace en la página web del Departamento http://www.justice.gov/crt/complaint/votintake/index.php.
Justice Department’s Nationwide Election Day ProgramRead the Press Release
ATLANTA – U.S. Attorney John Horn announced that Assistant U.S. Attorney (AUSA) William Toliver will lead the efforts of the Northern District of Georgia Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections.
AUSA Tolliver has been appointed to serve as the District Election Officer (DEO) for the Northern District of Georgia, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” said U.S. Attorney Horn. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney Horn stated that AUSA/DEO Toliver will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (404)581-6001.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (404) 679-9000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
“Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division,” said U.S. Attorney Horn.
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.
Justice Department Files Suit Alleging Disability-Based Discrimination at Housing Complex in Ellensburg, WashingtonRead the Press Release
The Justice Department announced today that it has filed a lawsuit against the owners, builder and designer of the Ashlynn Estates in Ellensburg, Washington, alleging that the property was designed and constructed without complying with the Fair Housing Act’s (FHA) accessibility requirements. Situated near Central Washington University, each of the three buildings on the property have nine individually keyed units with their own bathroom and desk as well as a shared living space, a communal kitchen and two communal laundry rooms.
“When constructing new multifamily housing, including dormitory style residences like Ashlynn Estates, builders must make these facilities accessible to persons with disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Building multifamily housing that is not accessible denies people with disabilities their legal right to equal housing opportunity.”
“The Fair Housing Act was originally enacted in 1968 and was amended in 1988 to prohibit discrimination on any protected basis, including disability,” said U.S. Attorney Michael C. Ormsby of the Eastern District of Washington. “This statute and other legislation guarantees safe and reasonable access for persons with disabilities to ensure full participation in all aspects of life, including housing. The DOJ’s Civil Rights Division, HUD and the U.S. Attorney’s Office take serious allegations of disability-based discrimination through access violations and we join our colleagues in seeking enforcement of those rights guaranteed by this historic legislation.”
The suit, filed in the U.S. District Court for the Eastern District of Washington, alleges that various barriers at the Ashlynn Estates deny persons with disabilities equal access to 12 ground-floor units and the associated public and common-use areas at the property that are covered by the FHA. Such barriers include: inaccessible building entrances on an inaccessible exterior route; inaccessible knob hardware throughout the buildings, including on the building entrances and unit entrances; inaccessible electrical outlets; inaccessible laundry facilities; inaccessible bathrooms and inaccessible walk-in closet entrances.
The lawsuit arises from a complaint filed with the U.S. Department of Housing and Urban Development (HUD) by the Northwest Fair Housing Alliance (NWFHA), a private, nonprofit corporation whose mission is to provide education regarding fair housing laws and to ensure compliance with those laws in Washington. NWFHA inspected the Ashlynn Estates and observed accessibility barriers. After conducting an investigation, HUD issued a charge of discrimination and referred the case to the Justice Department.
“The Fair Housing Act’s design and construction requirements are clear,” said Gustavo Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “Not complying not only violates the law, it also reduces the availability of the type of housing persons with disabilities depend on. HUD applauds the action the Justice Department took today, and we look forward to continuing to work together to send a clear message to property owners and developers that they will be held accountable for not meeting their legal obligations.”
The suit names the owners of the property, Keith and Tamra Riexinger, and Riexinger Enterprises Inc., also known as Crossroads Construction, the firm that designed and constructed the property. The suit seeks a court order requiring the defendants to retrofit the Ashlynn Estates property to bring it into compliance with the FHA, as well as monetary damages for NWFHA and for persons harmed by the lack of accessibility at the complex.
The FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status and disability. Among other things, the FHA requires all multifamily housing constructed after March 12, 1991, to have basic accessibility features, including accessible routes without steps to all ground-floor units. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
Riexinger ComplaintJames P. Kennedy, Jr. Named Acting United States AttorneyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - James P. Kennedy, Jr. has been named Acting United States Attorney for the Western District of New York following the departure of William J. Hochul, Jr.
“I am honored to be named Acting United States Attorney for the Western District of New York,” said Kennedy. “As a native of Western New York, I look forward to working with our outstanding law enforcement partners at the local, state and federal levels and serving the people of the community in which I was born and raised.”
A Phi Beta Kappa and magna cum laude graduate of Hamilton College, Mr. Kennedy attended the Buffalo Law School where he graduated cum laude in 1988, having served as editor of the Buffalo Law Review.
Following law school, Kennedy worked as the Confidential Law Assistant to the late Honorable Michael F. Dillon and Honorable M. Dolores Denman, Presiding Justices, New York States Supreme Court, Appellate Division, Fourth Department. In 1992, he was hired by then United States Attorney Dennis Vacco to serve as an Assistant United States Attorney. Starting first in the civil division, AUSA Kennedy, in 1993, became an OCDETF (Organized Crime Drug Enforcement Task Force) Attorney where he prosecuted a number of high profile narcotics, violent crime, and police corruption cases. In 2004, AUSA Kennedy was picked by then United States Attorney Michael Battle to serve as the District’s first full-time Appellate Chief. In that capacity, he briefed and argued a number of cases before the United States Court of Appeals for the Second Circuit in New York City. In 2006, he became the Chief of the White Collar General Crimes unit, and in 2007, he was promoted to Criminal Chief for the Western District of New York. In April of 2010, he was selected by William Hochul to be First Assistant U.S. Attorney. During his tenure in the United States Attorney’s Office, Kennedy has received numerous awards and honors including the Attorney’s General’s John Marshall Award, one of the Department of Justice’s highest awards.
Kennedy further stated, “Our Office has a tradition of excellence. I intend on preserving that tradition and bringing to justice those who detract from the safety and quality of life in our District. From corrupt public servants to child predators, from violent gangsters to fraudsters, and from those who contribute to overdose deaths to those who engage in under-handed business practices, I pledge to work tirelessly with the many hard-working and talented attorneys and support staff who serve in this Office not only to continue our crime-fighting efforts but to develop creative and innovative solutions to the problems with which we are confronted.”
Kennedy lives on Grand Island with his wife Stephanie, who works in the Amherst School District. They have two children, a daughter, Bridget, who attends the United States Naval Academy, in Annapolis, Maryland, and a son, Jack, who attends Davidson College, in Davidson, North Carolina.
Innovative Public-Private Agreement Will Convert Drug Properties to Renovated Housing Stock in Rutland, VTRead the Press Release
The United States Attorney’s Office announced today that the government and its public and private partners have completed an agreement to convert forfeited Rutland drug houses to safe, renovated housing. The government had previously filed suit to forfeit the drug houses, located at 114, 116 and 117 Park Avenue in Rutland, because those properties were used to distribute crack and heroin. The settlement of that lawsuit, announced today, was made possible by an innovative partnership among the federal government, the City of Rutland, Neighbor Works of Western Vermont (“NWWVT”), and other private parties. The settlement agreement will result in the conversion of the blighted properties to high-quality, renovated, owner-occupied single-family residences, duplexes or condominium residential units that will benefit the residents of Rutland.
The United States’ forfeiture lawsuit was brought pursuant to 21 U.S.C. § 881(a)(7), which, under certain circumstances, allows for forfeiture of property used to commit or facilitate the commission of felony drug offenses. The federal forfeiture law also requires owners of such rental properties to take reasonable and safe steps to discourage or prevent drug dealing on the property, such as contacting law enforcement and seeking to evict the tenants involved. In its lawsuit, the government alleged the owners of the Park Avenue properties had failed to take such reasonable steps.
The settlement was made possible by the cooperation of multiple governmental, non-profit, and for-profit parties, including: (1) the United States, which is the plaintiff in the lawsuit; (2) Ericob Vermont Realty Corp, the former owner of the property; (3) the City of Rutland, which was owed property taxes and other fees on the properties; (4) the mortgagee for the property; and (5) NWWVT, which will renovate and resell the properties.
Under the terms of the settlement, the owners of the properties agreed to forfeit them to the United States. After forfeiture to the United States, the United States Marshals Service (“USMS”) agreed to transfer the properties to the City of Rutland. The City of Rutland, in turn, agreed to cancel all of its outstanding taxes, fines, and fees and transfer the properties to NWWVT. NWWVT agreed to rehabilitate the properties and sell them for owner-occupied housing. Under the terms of the City of Rutland’s deed to NWWVT, the three properties may only be used for owner-occupied, single family residences, duplexes, or condominium residential units. Finally, NWWVT agreed to pay $82,500 (minus the USMS’ costs) to the mortgage holder on the properties in return for the mortgage holder discharging its mortgage liens. The USMS agreed to cap its costs at $5,000 and, in fact, kept its costs to approximately $750.
Describing the settlement agreement, United States Attorney Eric Miller said, "This innovative agreement is a 'Win-Win-Win.' Law enforcement has stopped the pervasive drug dealing that once plagued these properties; Rutland has taken yet another step toward reclaiming a beautiful neighborhood; and the non-profit housing community has increased the stock of safe and refreshed housing available to the community it serves."
NWWVT Executive Director Ludy Biddle stated “NeighborWorks is thrilled to have a part in turning these beautiful historic houses into family homes so more children can carve pumpkins and watch movies outdoors together and ride bikes along the creek as part of living in this wonderful neighborhood.”
The forfeited properties are located in the northwest neighborhood of the City of Rutland, where a 2014 housing study found that only about 32% of the residences were owner-occupied. The settlement ensures that these three residential properties will be transformed from ownership by an absentee landlord into owner-occupied, single family residence, duplexes, or condominium residential units, thereby reducing the risk that the properties will again provide shelter for drug dealers. U.S. Attorney Eric Miller noted that this forfeiture case, and the related criminal prosecutions, represent a concerted effort by the federal, state, and local governments to improve the quality of life in this neighborhood and to make it safer for families. U.S. Attorney Miller also praised NWWVT for investing in the renovation and resale of the properties and the U.S. Marshals for their contributions to the resolution of this matter.
The original complaint and the accompanying affidavit show that there were multiple heroin and crack cocaine dealers living in and using the apartments in the Park Avenue buildings starting at least in 2011 and 2012 and continuing into 2015. The documents also show that law enforcement searched several of the apartments in 2013. Law enforcement made six controlled drug purchases from dealers in the apartments and arrested several persons who had been living there. Many former tenants have been convicted and sentenced to significant time in federal prison. They include, among others: Eric Dixon, now serving 87 months in federal prison; Ernest Murray, now serving 60 months in federal prison; Andrew Harris, now serving 60 months in federal prison; Terrance Chenault, now serving 87 months in federal prison; and Joshua Minix, now serving 87 months in federal prison.
The United States Attorney’s Office’s efforts to combat drug trafficking in Rutland have been made possible by the enforcement work of the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rutland Police Department.
The United States is represented in this matter by Assistant U.S. Attorneys James Gelber and Joseph Perella. The former owners of the property are represented by Matthew Shagam, Esq., of Burlington. NWWVT is represented by Gary Kupferer, Esq., and the City of Rutland is represented by City Attorney Charles Romeo.
Holden Woman Sentenced to 32 Months for Heroin ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Sara Monroe, 30, of Holden, Maine, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 32 months in prison and three years of supervised release for conspiracy to possess with the intent to distribute and distribute heroin. Monroe pleaded guilty on May 17, 2016.
According to court records, between February and September 2015, Monroe conspired with Mario Lee, a/k/a “Moe” and others to distribute heroin in the Bangor area and elsewhere. Monroe drove Lee to heroin customers and also obtained heroin from him for distribution.
The case was investigated by the Maine Drug Enforcement Agency and the U.S. Drug Enforcement Administration.
Heroin Dealer Connected to the Overdose Death of a Young Woman in Farmers Branch, Texas, is Arrested on Federal Drug ChargeRead the Press Release
DALLAS — Nancy Pineda, 27, of Farmers Branch, Texas, remains in federal custody today following her arrest late Friday evening by investigators with the Farmers Branch Police Department and special agents with the Drug Enforcement Administration on a federal criminal complaint stemming from her selling the heroin that caused a young woman’s overdose death at a McDonald’s restaurant in Farmers Branch in June 2016. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
“This is yet another tragic example of a young life cut short by heroin,” said U.S. Attorney Parker. “You have my word that every time someone dies from a drug overdose in this district, my office will do everything in our power, working with our law enforcement partners, to identify and prosecute those who sold the drugs. We’re going to hit this problem, and we’re going to hit it hard.”
Specifically, the complaint charges Pineda with conspiracy to distribute heroin. Pineda made her initial appearance in federal court this afternoon before U.S. Magistrate Judge Irma C. Ramirez, who ordered that she remain in custody pending a detention hearing set for Thursday, November 3, 2016, at 2:00 p.m.
According to the affidavit filed with the complaint, on June 8, 2016, at approximately 9:43 p.m., a female victim was found dead in the bathroom of a McDonald’s restaurant located on Valley View Lane in Farmers Branch. Based on observations of the scene, law enforcement suspected the victim’s death was the result of a heroin overdose. This was confirmed by the Office of the Medical Investigator that determined the victim’s cause of death was due to the toxic effects of heroin and ethanol.
The investigation revealed that on June 8, 2016, at 7:00 p.m., the victim negotiated, in text messages, to buy a “dub” and a “point” from an individual, later identified as “A.J.” A “dub” is slang for .20 grams of narcotics, and a “point” is slang for a syringe. The text conversation concluded at 7:45 p.m. when the victim texted, “we down the street.”
A search warrant of A.J.’s cell phone revealed text conversations between A.J. and an individual listed in his phone as “Nina,” who was later identified as defendant Nancy Pineda, a known heroin dealer with whom law enforcement was familiar because of previous narcotics investigations.
The text conversations between Pineda and A.J. began on June 8, 2016, at 7:08 p.m. and concluded at 7:25 p.m. During the text conversation, A.J. negotiated with Pineda to obtain a “piece” at Taqueria El Paisano on Lombardy Drive in Dallas. “Piece” is slang for narcotics. A.J. then used the victim’s phone to text Pineda at 7:59 p.m. to advise her they were almost at Paisano’s.
The investigation further revealed that A.J. and the victim drove together to Paisano’s to meet Pineda. Surveillance video showed A.J. exiting the car and talking on the phone. A.J. then handed the telephone to the victim and ran to a nearby Sonic restaurant. At approximately 8:13 p.m., A.J. walked up to a silver Ford sedan parked at the Sonic restaurant and made a hand-to-hand transaction with the front seat passenger, Pineda, and then walked away. A few minutes later, A.J. returned to the car at Paisano’s, and he and the victim departed. A.J. purchased the heroin directly from Pineda at the Sonic restaurant and gave it to the victim immediately afterwards.
Law enforcement confirmed that Pineda knew the victim and had sold heroin to her on a regular basis in the past.
A federal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a federal grand jury for indictment. The statutory maximum penalty for the charged offense is 20 years in federal prison and a $1 million fine.
The Farmers Branch Police Department and the Drug Enforcement Administration are investigating the case. Assistant U.S. Attorney Myria Boehm is in charge of the prosecution.
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Haymarket Woman Arrested for Alleged Identity Theft and Financial FraudRead the Press Release
ALEXANDRIA, Va. – Karen Holtz, 50, of Haymarket, was arrested today on charges related to her role in a financial fraud and identity theft scheme while working for JMS Ventures, Inc.
Holtz, who was indicted on October 26, is charged with wire fraud, aggravated identity theft, and filing false tax returns. The indictment was unsealed this morning after Holtz was arrested.
According to court documents and court proceedings, Holtz worked for JMS Ventures, Inc. (JMS), which does business as the Kenyan Collection, is a small business that imports and distributes handmade Kenyan goods. Between 2008 and 2013, Holtz allegedly fraudulently diverted funds from JMS, by writing herself unauthorized checks from the JMS bank account and using PayPal to transfer customer payments directly to her personal bank account. The indictment further alleges that Holtz defrauded JMS’s customers by using their personal identifying information, including names and credit card numbers, to make fraudulent charges to their credit cards. Holtz is alleged to have obtained at least $350,000 from the fraud scheme. Holtz is alleged to have filed false federal individual income tax returns for tax years 2010 through 2013, which failed to report all the income that Holtz received in those years. In an attempt to conceal the fraud, Holtz also allegedly altered and destroyed records, including evidence of the fraud.
Holtz faces a maximum penalty of 20 years in prison for each count of wire fraud, three years in prison for each count of filing false returns and a mandatory sentence of two years in prison for each count of aggravated identity theft, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Caroline D. Ciraolo, Principal Deputy Assistant Attorney General, head of the Justice Department’s Tax Division; Michael L. Chapman, Loudoun County Sheriff; Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office; and Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after Holtz’s initial appearance before U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Katherine L. Wong and Trial Attorney Kimberly G. Ang of the Tax Division are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 16-cr-244.
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.
Georgia Man Facing Federal Drug Trafficking Charge in New Mexico Following Seizure of Ten Pounds of MethRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support a criminal complaint charging Timothy Wayne McGahee, 21, of Flowery Branch, Ga., with a methamphetamine trafficking offense. McGahee was released pending trial under pretrial supervision and other conditions of release.
McGahee was arrested on Oct. 23, 2016, on a criminal complaint alleging that he possessed approximately ten pounds of methamphetamine in Dona Ana County, N.M. According to the complaint, McGahee was arrested on Oct. 23, 2016, after U.S. Border Patrol agents at the U.S. Border Patrol checkpoint west of Alamogordo, N.M., allegedly seized the methamphetamine from McGahee’s vehicle.
If convicted of the charge in the criminal complaint, McGahee faces a statutory minimum of ten years and a maximum of life in prison. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the U.S. Border Patrol and the Las Cruces office of the DEA. Assistant U.S. Attorney Clara Nevarez Cobos of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Former director of Ohio County Schools Credit Union pleads guilty to embezzlementRead the Press Release
WHEELING, WEST VIRGINIA – Kathleen Gramlich, 65, of Valley Grove, West Virginia, pled guilty in federal court today to embezzlement, United States Attorney William J. Ihlenfeld, II, announced.
Gramlich was the executive director of the Ohio County Schools Public Credit Union when she stole more than $156,000 from the Credit Union and used the funds to pay personal debts. She pled guilty to one count of “Theft from a Credit Union.”
Gramlich faces up to thirty years in prison. 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 Jarod J. Douglas prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the West Virginia State Police investigated.
U.S. Magistrate Judge James E. Seibert presided.
Former Amherst Woman Pleads Guilty for Her Role in Plot to Murder Ex-Husband; Co-Defendant Also Pleads GuiltyRead 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 Debra Arno, 57, formerly of Amherst, NY, pleaded guilty to solicitation of interstate murder for hire before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of five years in prison and a $125,000 fine. In addition, Lauren Frye, 57, of Buffalo, NY, pleaded guilty to being a felon-in-possession of a firearm which carries a maximum penalty of 10 years in prison and a $250,000.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that on May 26, 2015, the Kenmore Police Department received a tip about a murder for hire plan. On May 27, 2015, Kenmore Police, with the assistance of the East Aurora Police Department, identified the victims, who included Arno’s ex-husband and his current wife, and made them aware of the potential murder-for-hire plot.
On May 28, 2015, a search warrant was executed at the residence of co-defendant Lauren Frye, the person solicited by Arno to carry out the murders. Officers seized a number of items including multiple letters from Arno to Frye, photos of the intended victims, a diagram of their residence and a schedule of their activities. In one letter written by Arno to Frye, Arno stated “I am enclosing $6000. I will give you an additional $14,000 upon completion. A total of $20,000. A man, his description and address enclosed, is to be eliminated or hurt. He lives with 2 other people. Both expendable (if there is an accident).”
During the search of Frye’s residence, officers also seized two cellular telephones and three shotguns. The cellular telephones revealed extensive text messaging between Arno and Frye. Arno repeatedly implored Frye to get the murder done. In a series of text messages exchanged on May 24, 2015, Arno, using cryptic texts, inquired as to when Frye’s “friends” were going to commit the murder. Frye responded: “There suppose to get a hold of me today I want it done no bullshit.” Arno, using the nickname “Chickie,” responded: “Last day before everything changes! I need it done or else I am going to talk to them myself.” Frye responded: “That’s fine I told them today was the deadline or its gonna get harder.” Arno responded: “What is the big deal! 8 MONTHS! Today! Do it yourself I don’t give a (expletive).”
The pleas are the result of an investigation by the Village of Kenmore Police Department, under the direction of Chief Peter Breitnauer, the East Aurora Police Department, under the direction of Chief Ronald Krowka, and the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen.
Arno is scheduled to be sentenced on March 8, 2017, at 1:00 p.m. before Judge Arcara. Frye will be sentenced on March 9, 2017, at 12:30 p.m., also before Judge Arcara.
First of Five Sentenced to Federal Prison in Large Fraud SchemeRead the Press Release
HOUSTON – The first of five people from three different states has been ordered to federal prison following their convictions related to a $23 million nonexistent commercial accounts receivable scheme, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Rick Goss of IRS-Criminal Investigation (CI).
Stefano Guido Vitale, 40, of Scottsdale, Arizona, pleaded guilty March 21, 2016, while Alan Leschyshyn, 53, of Cave Creek, Arizona; Bree Ann Davis, 40, of Lakewood, Colorado, and Tammie Roth Hanania, 59, and Edward Peter Hanania, 64, both of Folsom, California, all had previously entered their respective pleas. All were convicted of conspiring to engage a scheme to defraud and conspiracy to commit money laundering. Vitale and Leschyshyn were also convicted of eight additional counts of wire fraud.
Today, U.S. District Judge Vanessa Gilmore ordered Leschyshyn to serve a total of 235 months in federal prison to be followed by five years of supervised release. He was also ordered to pay restitution in the amount of $6,477,451.85.
Tammie and Edward Hanania are set for sentencing later this month, while Davis and Vitale will be sentenced in January 2017.
“Today’s sentencing of Leschyshyn for his role in a $6 million fraud scheme is well deserved,” said Goss. “Leschyshyn abused his training and expertise by creating convincing false documents and information to support this massive fraud. The jail time handed down to Leschyshyn attests that no matter how sophisticated the fraud is, IRS-CI Agents will uncover the crimes and pursue those responsible.”
The scheme produced approximately $6.4 million in fraudulently obtained proceeds which the defendants agreed to launder through various bank accounts. They executed the scheme to defraud by using and establishing various business entities to sell, at a discount, nonexistent commercial accounts receivable. The defendants would approach factoring companies as sellers of customized gaming vault bundles and present fabricated invoices as evidence the defendants were owed a certain amount of money for goods provided to another one of their business entities. To establish creditworthiness of these companies and to convince the factoring company the credit risk was minimal, the defendants fabricated and/or altered documents and provided them to the factoring company.
The fraud conspiracy also proved that Vitale and Leschyshyn defrauded BOKF, NA, doing business as Bank of Arizona, when they applied for and received a $1 million line of credit secured by the Export Import Bank of the United States.
Leschyshyn was previously released on bond but ordered into custody following the hearing today. Vitale has been and remains in custody, while the remaining defendants are on bond pending their sentencing hearings.
The investigation leading to the charges was conducted by IRS - CI. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Federal Grand Jury Adds Conspiracy Charge in Guatemala-To-Vermont Heroin Distribution CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that last week the Grand Jury in Rutland returned a Second Superseding Indictment adding a charge of conspiracy against Marco Antonio Lam Peralta and Diego Walther Anibal Mejia Paredes. The Second Superseding Indictment re-alleged the two previous counts from the First Superseding Indictment, which charged Lam Peralta and Mejia Paredes with possession with intent to distribute more than a kilogram of heroin, and Lam Peralta with harboring an illegal alien. The new conspiracy count alleges that Lam Peralta and Mejia Paredes conspired from July to October 2015 to distribute more than a kilogram of heroin.
If convicted on either heroin-related count, the defendants would face a minimum sentence of 10 years in prison, and a maximum sentence of life in prison. The Second Superseding Indictment is an accusation only; the defendants are presumed innocent until and unless proven guilty.
Court records show that this case arose from an October 2015 shipment from Guatemala destined for the address of a Mexican restaurant in Manchester Center, Vermont. Customs officials determined the shipment contained a large quantity of heroin (more than 40 kilograms, or 88 pounds) hidden in Guatemalan nutritional supplement packaging. Agents from the Department of Homeland Security, working with the Drug Enforcement Administration and the Vermont State Police, arranged for a controlled delivery of this package to the restaurant, where Mejia Paredes was waiting to take delivery.
Court filings indicate that while Mejia Paredes waited for the shipment to be delivered, he was in telephone contact with Lam Peralta, and that while Mejia Paredes waited at the restaurant Lam Peralta contacted the shipping company twice. Additional investigation identified seven previous shipments, similar in size, weight, and customs declarations to the heroin-containing intercepted package, that were sent to addresses associated with Lam Peralta in the Manchester area from Guatemala in the three months preceding the October 2015 arrest. Upon his arrest Mejia Paredes possessed a cell phone which appears to contain messages between him and Lam Peralta discussing one of the earlier shipments, as well as to where the intercepted-package should be addressed.
No trial date has been set. Both Mejia Paredes and Lam Peralta have been ordered detained in the custody of the United States Marshal pending trial. Last week Lam Peralta filed motions with the United States District Court for the District of Vermont, seeking to sever his case from Mejia Paredes’ and the suppression of his post-arrest statements to law enforcement. He also filed a motion asking the Court to reconsider its previous decision that he be detained.
AUSA Michael Drescher is handling the prosecution. Lam Peralta is represented by Ernest M. Allen, III, of Burlington, and Mejia Paredes is represented by Steven Barth, of Burlington.
Farmington Man Receives Enhanced Sentence of 90 Months for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Allen Goossen, 30, of Farmington, N.M., was sentenced today in federal court in Albuquerque, N.M., to 90 months in prison for his conviction on heroin trafficking charges. Goossen will be on supervised release for three years following his prison sentence.
Goossen, whose crimes of conviction in this case involved only 12 grams of heroin, received an enhanced sentence based on judicial findings that a significant sentence was required to protect the public from Goossen and to promote deterrence. During sentencing proceedings, the court found clear and convincing evidence that Goossen caused the death of a 26-old-man by injecting him with heroin in Nov. 2013, that the victim’s death was a reasonably foreseeable effect of Goossen’s actions, and that Goossen continued to distribute heroin thereafter. Goossen has entered a not guilty plea to related state charges arising out of this event, and he is presumed innocent of those charges unless found guilty beyond a reasonable doubt.
Goossen was arrested in Feb. 2016, on a criminal complaint charging him with trafficking heroin in San Juan County, N.M. According to the complaint, Goossen sold approximately 6.03 grams of heroin to an undercover agent of the HIDTA Region II Narcotics Taskforce on Dec. 17, 2014. The complaint further alleges that on Jan. 5, 2015, Goossen was in possession of 5.95 grams of heroin packaged in six-single gram packages when he was arrested on a felony arrest warrant.
Goossen was subsequently indicted on March 8, 2016, and charged with distribution of heroin on Dec. 17, 2014, and possession of heroin with intent to distribute on Jan. 5, 2015. On April 15, 2016, Goossen pled guilty to both counts of the indictment without the benefit of a plea agreement.
The case was investigated by the Albuquerque office of Homeland Security Investigations and the HIDTA Region II Task Force. The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Area (HIDTA) program that was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
The case is being prosecuted by Assistant U.S. Attorney Alexander M. Uballez 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.
Dunbar heroin dealer sentenced to federal prison for drug crimeRead the Press Release
CHARLESTON, W.Va. – A Dunbar drug dealer was sentenced to two years and nine months in federal prison for a heroin crime, announced United States Attorney Carol Casto. Jamario Dobbs, 36, previously pleaded guilty to distribution of heroin.
Dobbs admitted that on three occasions in February and March of 2016, he sold heroin to a confidential informant cooperating with law enforcement. On April 27, 2016, law enforcement executed a search warrant on the residence where Dobbs was staying and seized a handgun, over $7,000 in cash, and approximately 48 grams of crack. Dobbs was arrested immediately prior to the search and he informed officers that he had swallowed several bags of heroin. Officers took Dobbs to the hospital for treatment and recovered over two grams of heroin.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Monica D. Coleman is handling the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This prosecution is 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 pills and heroin in communities across the Southern District.
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Department of Justice Election Day ProgramRead the Press Release
WHEELING, WEST VIRGINIA – United States Attorney William J. Ihlenfeld, II announced today that Assistant United States Attorney (AUSA) Stephen Warner will lead the efforts of his office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Warner has been appointed to serve as the District Election Officer (DEO) for the Northern District of West Virginia, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
According to Ihlenfeld, the Department of Justice plays an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
Complaints about federal election law violations can be made by calling the FBI at (412) 432-4000. The FBI will have extra personnel available to receive election day complaints, and FBI Special Agents will be available in every field office in West Virginia. AUSA Warner will be available while the polls are open to work with the FBI regarding complaints that affect the Northern District of West Virginia.
United States Attorney Ihlenfeld encourages anyone with specific information about discrimination or election fraud to share the information immediately with the U.S. Attorney's Office or to the FBI.Cuba Man Sentenced on Marijuana ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Randy Wade Kenyon, 58, of Cuba, NY, who was convicted of manufacturing 50 or more marijuana plants, was sentenced to 24 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that on August 4, 2015, during an aerial operation, the Southern Tier Regional Drug Task Force observed what appeared to be multiple marijuana plants. A ground search determined that the defendant was cultivating a total of 677 plants on his property at the time on Five Mile Road in Ischua, NY.
The sentencing is the result of an investigation by the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division. Additional assistance was provided by the National Guard Aviation unit.
Criminal Division’s Computer Crime and Intellectual Property Section Celebrates 20 YearsRead the Press Release
This October marks the 20th year for the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), which is responsible for implementing the Justice Department’s national strategies in combating computer and intellectual property crimes worldwide.
“CCIPS is the cornerstone of the department’s anti-cybercrime efforts, and has been involved in one capacity or another in practically every significant cybercrime and intellectual property case that has been in the public eye,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “And CCIPS has been performing that role for 20 years, long before terms like ‘data breach’ or the ‘darknet’ became common references.”
CCIPS was established on Oct. 13, 1996, from an earlier five-attorney “Computer Crime Unit” formed in 1991 within the division’s General Litigation and Legal Advice Section. In 20 years, CCIPS’s membership has grown to more than 40 attorneys, in addition to nine digital investigative analysts who comprise the CCIPS Cybercrime Lab. Section attorneys regularly run complex investigations; resolve unique legal and investigative issues raised by emerging computer and telecommunications technologies; litigate cases; provide litigation support to other prosecutors; train federal, state and local law enforcement personnel; comment on and propose legislation; promote cybersecurity; and initiate and participate in international efforts to combat computer and intellectual property crime.
Since 1996, the section has prosecuted cases involving hundreds of millions of pieces of stolen information, including credit card and debit card numbers, email addresses, social security numbers and other personally identifying information; hundreds of millions of dollars of trade secrets, including highly sensitive technologies and agricultural products; tens of millions of counterfeit products and copyrighted works, ranging from pharmaceutical products and military supplies to digital media; and millions of compromised computers victimized by botnets and ransomware.
CCIPS’s litigation accomplishments, in partnership with prosecutors in U.S. Attorneys’ Offices across the country, include prosecutions of sophisticated hackers, such as the conviction of hacker Albert Gonzalez who, along with co-conspirators, infiltrated the computer networks of major retailers around the country and stole in excess of 40 million credit/debit card numbers; the disruption of the Gameover Zeus botnet and Cryptolocker ransomware scheme in connection with the indictment of Russian alleged cybercriminal Evgeniy Bogachev; and the takedown of Megaupload.com and indictment of its operator, Kim Dotcom, for allegedly running the largest worldwide online digital piracy conspiracy in history. In cooperation with U.S. Attorneys’ Offices and international partners, the section has played a central role in cutting-edge international operations against “dark market” websites hosted on the Tor network.
CCIPS has also worked to protect the privacy of Americans by prosecuting privacy invasions by criminals such as hackers, cyberstalkers, sextortionists and purveyors of mobile spyware. In addition, CCIPS works diligently to assure the fair and appropriate use of law enforcement investigative authorities. CCIPS has regularly updated its search and seizure manual to educate investigators and prosecutors about the legal issues surrounding search and seizure of computers and gathering of electronic evidence. Over the years, CCIPS has contributed to Department of Justice policies promoting the effective and responsible use of evolving technologies, such as cell site simulators and drones.
Over its 20 years, CCIPS has played a transformative role in addressing the increasingly international nature of computer crime and digital evidence. In 1997, the section helped form the G8 24/7 High Tech Crime Network, which created formal points of contact in participating countries for urgent assistance with international investigations involving electronic evidence. CCIPS has served as the 24/7 Network point of contact for the United States since that time, assisting in emergency responses to criminal and terrorist incidents abroad. From 1999 to 2001, CCIPS was part of the team that negotiated the Convention on Cybercrime, also known as the Budapest Convention, the world’s first international treaty governing cross-border cybercrime and electronic evidence, which now boasts 50 member countries.
CCIPS also acts as a focal point for national and global networks of trained computer and intellectual property crime prosecutors. The section coordinates the nationwide Computer Hacking and Intellectual Property prosecutor network, which is made up of dedicated computer and IP crime prosecutors in every U.S Attorney’s Office. In cooperation with the Office of Overseas Prosecutorial Development and Training, CCIPS also manages regional Intellectual Property Law Enforcement Coordinator placements around the world.
New initiatives like the Cybersecurity Unit represent CCIPS’s continued dedication to its role as a central hub for expert advice and legal guidance in a variety of areas, including best practices for victim response and reporting of cyber incidents, analysis of the implications of emerging technological changes like the Internet of Things, and white papers on topics such as information sharing and reports on active defense.
“The section has shown a truly remarkable ability to respond to emerging threats and rapid technological change,” said Assistant Attorney General Caldwell. “In the next 20 years, I expect that CCIPS will continue to be a leader for the department.”
Clay County Man Who Buried His Mother in Her Yard Pleads Guilty to Stealing Government Property and Aggravated Identity TheftRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Brian Lee Adams (56, Green Cove Springs) today pleaded guilty to theft of government property and aggravated identity theft. He faces a maximum penalty of 12 years in federal prison, including a mandatory two-year sentence for aggravated identity theft. A sentencing date has not yet been set.
According to the plea agreement, Adams admitted to authorities that his mother had died of natural causes in July 2014 and, instead of notifying anyone, Adams buried her in the backyard of her home. Adams confessed to investigators that he had buried his mother after she died in order to continue collecting both her Social Security payments and a pension payment that she received monthly. As part of the theft, Adams used his mother’s name on checks that he would write to transfer money between her accounts. He would then use the funds on himself. The total amount Adams stole was $35,345.
This case was investigated by the Clay County Sheriff’s Office, the Florida Department of Law Enforcement, the Social Security Administration - Office of Inspector General, and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Mac D. Heavener, III.
California Man Charged with Possessing with Intent to Distribute 27 Kilograms of MethamphetamineRead the Press Release
NEWARK, N.J. – A South Gate, California, man appeared in federal court today to face a drug distribution charge after he was arrested and found with 27 kilograms of methamphetamine hidden in a tractor trailer he was driving, U.S. Attorney Paul J. Fishman announced.
Tomas Lopez Beltran, 45, is charged by complaint with one count of possession with intent to distribute 500 grams or more of methamphetamine. He appeared before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained. He was arrested Oct. 28, 2016 by agents of the Drug Enforcement Administration (DEA).
According to the complaint:
On Oct. 28, 2016, law enforcement performed a traffic stop of a tractor trailer in Woodbridge, New Jersey. The tractor trailer was driven by Beltran. During a lawful search, law enforcement recovered approximately 27 kilograms of methamphetamine from a concealed compartment inside the cab of the trailer.
The possession with intent to distribute charge carries a minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $10 million fine.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Karen D. Stringer and Mary Toscano, Chief of the General Crimes Unit of the U.S. Attorney’s Office in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newar
Bulgarian National Pleads Guilty to Possession of a Device to Make Fraudulent Credit and Debit CardsRead the Press Release
Baltimore, Maryland – Martin Aleksandrov Enev, age 27, a Bulgarian national residing in Randallstown, Maryland, pleaded guilty today to possession of device-making equipment with the intent to defraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, on July 20, 2016, Bulgarian Customs Officers contacted U.S. Secret Service agents after they identified what they believed to be an illegal “ATM skimming device” concealed within a black and green nylon pouch, which is capable of reading the encrypted information contained in the magnetic strip on the back of a credit or debit card. The pouch had been discovered during a routine screening of international shipments scheduled to depart from the airport. The pouch was enclosed inside a shipper’s plastic delivery envelope with a packing slip attached addressed to “Marin Penev” at an address in Randallstown. Bulgarian authorities sent photographs of the device and envelope to the Secret Service.
On July 21, 2016, members of the USSS Maryland Electronic Crimes Task Force arranged a controlled delivery of the envelope and its contents once it arrived in the United States. On July 26, 2016, Enev picked up the package, providing a Maryland driver’s license in his name as identification. Special Agents of the USSS and Baltimore County Detectives followed Enev to a residence in Randallstown. The owner of the residence advised agents that Enev rented a room on the first floor of the residence and provided agents with Enev’s telephone number. A Secret Service agent called the phone number and spoke to Enev who agreed to exit the residence. Enev came out of the house and was taken into custody.
Search warrants were executed at Enev’s residence and his vehicle. From the vehicle, law enforcement recovered the opened shipping envelope, which was empty; one box containing 15 pre-paid gift and credit cards capable of being recoded with fraudulently obtained financial proceeds, along with various business cards; and three paper receipts indicating the reloading of a pre-paid gift card in the amount of $270. The search of Enev’s living area recovered: the black and green nylon pouch containing an ATM skimming, which matched the photographs of the device sent by Bulgarian authorities; two other ATM skimming devices inside the hall closet, along with a magnetic card re-encoder and 40 blank white credit cards; a desktop computer and cellular phone; and prepaid credit cards found in a desk and in Enev’s wallet. Also located in the wallet was a Maryland driver’s license bearing his name and photograph, and a Bulgarian identification card bearing Enev’s photograph. His Republic of Bulgaria driver’s license and European Union identification card were also seized during search.
A preliminary review of the prepaid gift cards and credit cards seized during the search revealed that some of them had been recoded with other people’s personal identifying information (PII), including their names and financial account numbers, creating a counterfeit access device capable of accessing those persons’ bank accounts and/or credit card balances through an ATM machine. The USSS confirmed that money had already been withdrawn from some of those financial accounts. PII contained on some of the other cards in Enev’s possession was obtained from financial accounts or credit cards created and issued in Europe. The government believes that Enev played a key role in an ongoing identity theft ring with ties to a criminal association based in Europe.
Enev and the government have agreed that if the Court accepts the plea agreement Enev will be sentenced to 33 months in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for January 9, 2017 at 3:00 p.m. Enev remains detained.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Martin J. Clarke, who is prosecuting the case.
Buffalo Man Pleads Guilty to Being A Felon in Possession of A GunRead 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 Casidus Carr, 31, of Buffalo, NY, pleaded guilty to being a felon-in-possession of a gun before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that during the execution of a search warrant on January 16, 2015, at Carr’s residence on Dunlop Avenue in Buffalo, law enforcement officers discovered a loaded firearm and ammunition. The defendant was previously convicted in 2005 on a New York State charge of Manslaughter 1st preventing him from legally possessing a firearm.
The plea is the result of an investigation on the part of law enforcement officers of the Federal Bureau of Investigation Safe Street Task Force, under the direction of Special Agent in Charge Adam S. Cohen and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
Sentencing is scheduled for March 8, 2017, at 12:30 p.m. before Judge Arcara.
Bismarck Man Sentenced for Felon in Possession of a Firearm and AmmunitionRead the Press Release
BISMARCK - US Attorney Christopher C. Myers announced that on October 31, 2016, Travis Gene Clark Jr. 27, Bismarck ND, was sentenced before US District Judge Daniel L Hovland to serve eight (8) years in prison. Judge Hovland also ordered the sentence to run consecutively to Clark’s five (5) year state sentence, followed by three (3) years of supervised release and to pay a $100 special assessment to the Crime Victim’s Fund.
On January 31, 2016, Bismarck patrol officers were looking for Clark to serve him with a warrant for violation of a protection order. Law enforcement had received a tip that Clark was seen in the area of University Drive and saw him walk out of a mobile home and ordered him to stop and get on the ground. As he was trying to enter a vehicle, law enforcement interpreted his movements as reaching for a pistol. After Clark was arrested, law enforcement identified a pistol within plain sight of the incident.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives and North Dakota BCI.
Special Assistant US Attorney Dawn Deitz prosecuted the case.
Bangor Residents Sentenced for Maintaining a Drug Involved PremisesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Daniel Lyons, 42, and Laura Lyons, 31, of Bangor were sentenced today in U.S. District Court by Chief Judge Nancy Torresen. Daniel was sentenced to three years in prison, Laura was sentenced to two years in prison, and both were ordered to serve three years of supervised release for maintaining a drug involved premises. Daniel pleaded guilty on March 28, 2016; Laura pleaded guilty on April 12, 2016.
According to Court records, between January and December 2014, the defendants maintained a residence on Essex Street in Bangor and allowed drug dealers to use it to store heroin and to sell heroin to area customers. The defendants were compensated with heroin.
The case was investigated by the U.S Drug Enforcement Administration and the Maine Drug Enforcement Agency.
Bangor Resident Pleads Guilty to Heroin Conspiracy ChargeRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Mario Lee, a/k/a “Moe”, 33, of Bangor, and formerly of the Bronx, New York, pleaded guilty today in U.S. District Court to conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin.
According to court records, between August 2013 and September 2015, Lee conspired with others to distribute heroin in the Bangor area and elsewhere. Lee supplied heroin to dealers in the Bangor area and surrounding communities. Co-conspirators introduced customers to Lee, drove him to heroin transactions and allowed him to use their residences to distribute heroin. Lee paid them with heroin.
As a result of a prior drug trafficking conviction in New York, Lee faces enhanced penalties of between ten years and life in prison, up to eight years of supervised release and an $8,000,000 fine.
The case was investigated by the Maine Drug Enforcement Agency and the U.S. Drug Enforcement Administration.
Bakersfield Man Indicted for Receiving and Possessing Child PornographyRead the Press Release
FRESNO, Calif. — Colin Lovette Bosby, 49, of Bakersfield, was arraigned today on a three-count indictment charging him with receipt and distribution of child pornography and possession of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Bosby used a computer to receive and distribute child pornography using a peer-to-peer file-sharing program. In addition, he possessed child pornography on two thumb drives. This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Megan A. S. Richards is prosecuting the case.
If convicted, Bosby faces a mandatory minimum sentence of 15 years in prison and a statutory maximum of 40 years, and a $250,000 fine for receipt and distribution of child pornography. He also faces a minimum 10-year and maximum 20-year sentence for each count of possession of child pornography. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Australian Man Who Traveled to U.S. to Have Sex with 6-Year-Old Boy Sentenced to 12 Years in Federal PrisonRead the Press Release
LOS ANGELES – An Australian geneticist who pleaded guilty to a federal charge of traveling to Los Angeles to engage in criminal sexual conduct with a 6-year-old boy was sentenced today to 144 months in prison.
Michael Quinn, 33, of Melbourne, was sentenced today by United States District Judge John F. Walter.
“This defendant appeared to be a successful, well-liked professional – but he had a secret, online life in which he made clear his sexual interest in children,” said United States Attorney Eileen M. Decker. “This defendant thought he had arranged to rape a young child, but the vigilance of law enforcement spared any potential victims from being sexual abused.”
Quinn was arrested on May 21 by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) when he arrived at a Los Angeles-area hotel to buy a 6-year-old boy for sex.
According to documents filed in the case, the investigation began in May 2016 after undercover agents observed Quinn on a social networking site that caters to individuals with a sexual interest in children. Quinn admitted that he told undercover agents he was traveling to Los Angeles and wanted to “meet up with a dad who shares his young ones.” Specifically, Quinn told the agents, whom he believed were like-minded people, that he was hoping to meet “other pervs” in the U.S.
Quinn ultimately agreed to pay a human trafficker $250 to provide him with a young boy with whom he could engage in illicit sex. Once Quinn arrived in Los Angeles, he was arrested after paying another undercover agent $260. According to the plea agreement filed in this case, “a dominant purpose of his travel was to anally sodomize someone he knew was a 6-year-old boy.”
“This sentence should serve as a powerful deterrent to online child predators who mistakenly believe the internet and a plane ticket will enable them to act on their dark desires with impunity,” said Joseph Macias, special agent in charge of HSI Los Angeles. “Pedophiles should be on notice, HSI and its law enforcement partners are using all of the resources at our disposal to combat this reprehensible behavior and hold the perpetrators responsible for their crimes.”
This case is a product of Project Safe Childhood, a Department of Justice initiative launched in 2006 to combat the growing epidemic of child sexual exploitation and abuse, and HSI’s Operation Predator, an international initiative to protect children from sexual predators.
The case against Quinn is being prosecuted by Assistant United States Attorney Joey Blanch of the Violent and Organized Crime Section.
Arizona Man Sentenced for Heroin Trafficking Conviction Arising Out of Four-Pound Heroin Seizure in New MexicoRead the Press Release
ALBUQUERQUE –Sergio Marin Ambriz, 21, of Phoenix, Ariz., was sentenced today in federal court in Albuquerque, N.M., to 46 months in prison followed by three years of supervised release for his conviction on a heroin trafficking charge arising out of a DEA seizure of more than four pounds of heroin in Jan. 2016.
Ambriz was arrested on Jan. 20, 2016, and was charged in a criminal complaint with a heroin trafficking offense after the DEA seized approximately 1.90 kilograms (4.18 pounds) of heroin from him during an interdiction investigation at the Greyhound Bus Station in Albuquerque. The heroin was contained in three bundles that were concealed inside a pair of jeans in Ambriz’s luggage.
Ambriz was subsequently indicted on Feb. 9, 2016, and charged with possession of heroin with intent to distribute on Jan. 20, 2016, in Bernalillo County, N.M.
On May 13, 2016, Ambriz pled guilty to a felony information charging him with possession of heroin with intent to distribute. In entering the guilty plea, Ambriz admitted transporting heroin from Phoenix, Ariz., to New Mexico on a Greyhound bus by concealing the heroin in his luggage. Ambriz further admitted that he had intended to deliver the heroin to Tulsa, Okla.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Paul H. Spiers prosecuted this case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Albany Man Pleads Guilty to Synthetic Cannabinoid ChargesRead the Press Release
ALBANY, NEW YORK – Shukri Abdullah, age 44, of Albany, New York, pled guilty today to possessing synthetic cannabinoids with the intent to distribute them.
The announcement was made by U.S. Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
As part of his guilty plea, Abdullah, a proprietor of the Grand Deli in Albany, New York, admitted that he possessed two garbage bags filled with hundreds of packets of synthetic cannabinoids, also known as “Spice” or “K2,” and that he sold the packets to customers of the Grand Deli so they could smoke the contents, which mimic the effects of marijuana. Abdullah also admitted that he routinely purchased large quantities of the substances from a New York City supplier, paying between $7,000 and $9,000 in cash for each shipment.
Abdullah faces up to 20 years in prison and 3 years of post-imprisonment supervised release when he is sentenced on February 13, 2017 by Senior U.S. District Judge Thomas J. McAvoy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The case was investigated by the DEA and is being prosecuted by Assistant United States Attorney Wayne A. Myers.
Akron man sentenced to nearly 10 years in prison for extortion plotRead the Press Release
An Akron man was sentenced to nearly 10 years in prison threatening a man with death unless he was given money or introduced to a source with drugs, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Franklin D. Conley, 28, was convicted earlier this year of one count of violating the Hobbs Act, three counts of use of a communication facility to facilitate a drug offense and one count of interstate communication with intent to extort. He was sentenced to 115 months in prison.
Conley and Patrick Griffin repeatedly threatened the victim and his family, beginning in February 2015, with serious physical harm or death if they were not given money or introduced to a source of illegal drugs, according to court documents and trial testimony.
Griffin, 29, also of Akron, has pleaded guilty to his role in the crime.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The matter was prosecuted by Assistant United States Attorneys Teresa Riley and Robert Bulford.
28 October 2016
Vestal Man Arrested for Possession and Distribution of Child PornographyRead the Press Release
BINGHAMTON, NEW YORK – Nathan E. Boguhn, 50, of Vestal, New York, was arrested today in connection with a criminal complaint charging him with possession and distribution of child pornography, announced United States Attorney Richard S. Hartunian. The criminal complaint unsealed today in federal court alleges that the execution of a search warrant and other information showed that Boguhn used a personal computer in his residence to possess and distribute child pornography videos.
If convicted, Nathan E. Boguhn faces a mandatory minimum sentence of five (5) years and a maximum sentence of twenty (20) years imprisonment, as well as a term of supervised release of at least five (5) years and up to life, and registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
The Defendant appeared today before United States Magistrate Judge David E. Peebles and was ordered detained pending a bail hearing scheduled for November 2, 2016 in Syracuse.
This case is being investigated by the Federal Bureau of Investigation (FBI), the New York State Police and the Town of Vestal Police Department, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric, as a part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
United States Attorney's Office Establishes Election Day HotlineRead the Press Release
CONCORD, N.H. –United States Attorney Emily Gray Rice announces the establishment of an Election Day hotline in coordination with the U.S. Justice Department’s nationwide Election Day program for the general election on November 8, 2016. The hotline number is (603) 230-2503.
United States Attorney Rice said: “The freedom to vote without interference, discrimination, or hindrance is a fundamental civil right enjoyed by United States citizens. The Department of Justice will act promptly and aggressively to protect the integrity of the election process and to ensure that every vote is counted and that no vote is stolen by fraud.”
United States Attorney Rice has appointed Assistant United States Attorney Mark S. Zuckerman to serve as the District Election Officer for the District of New Hampshire. In that capacity, AUSA Zuckerman is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington. He is also responsible for monitoring the Election Day hotline, which may be reached by calling (603) 230-2503.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of our American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses regarding the November 8, 2016 general election, and to ensure that such complaints are directed to the appropriate authorities, AUSA Zuckerman will be on duty in this District while the polls are open. He can be reached by the public at the following dedicated Election Day hotline: (603) 230-2503.
In addition, the FBI will have Special Agents available in each Field Office and Resident Agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The FBI can be reached by the public at (603) 472-2224.
Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected], or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Rice said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
A Federal Election Fraud Fact Sheet that explains what triggers federal criminal jurisdiction in connection with elections and voting rights is posted on the United States Attorney’s website: www.usdoj.gov/usao/nh.
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Two St. Lawrence County Residents Charged with the Sexual Exploitation of ChildrenRead the Press Release
SYRACUSE, NEW YORK – Stacey J. LaPorte, Jr, 26, and Mackenzie Bailey, 20, both of Massena, New York, appeared today in federal court following their arrest on an Indictment alleging they conspired to, and did engage in the sexual exploitation of minors, announced United States Attorney Richard S. Hartunian. The Indictment unsealed today charges Bailey and LaPorte with conspiracy to sexually exploit a minor child born in 2014, and two counts of sexually exploiting that child on two specific dates in 2016. In addition, LaPorte is charged with a fourth count relating to his exploitation of two children, one born in 2003, the other in 1999, on a specific date in 2016.
Each of the charges filed against LaPorte and Bailey carries a mandatory minimum sentence of 15 years, a maximum sentence of 30 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life, and registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty
The defendants were arraigned today in Syracuse, New York, before United States Magistrate Judge David E. Peebles. Stacey J. LaPorte was ordered detained. Mackenzie Bailey was ordered detained pending a detention hearing, scheduled for Wednesday November 2, 2016.
This case is being investigated by the New York State Police, the Massena Police Department, and Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorneys Lisa M. Fletcher and Sahar Amandolare, as a part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
Two Plead Guilty to Methamphetamine Manufacturing ConspiracyRead the Press Release
CONCORD, N.H. – Samantha Renehan, 29, of Lebanon, New Hampshire and Jamie Smith, 28, of Raleigh, North Carolina pleaded guilty in United States District Court for the District of New Hampshire to possession of materials to manufacture methamphetamine and conspiracy to manufacture methamphetamine, announced United States Attorney Emily Gray Rice.
According to court documents and statements made in court, on or about January 29, 2016, Renehan and other individuals picked up Jamie Smith from a bus station in Vermont. During the drive from Vermont to Lebanon, New Hampshire, Smith and Renehan made various stops to purchase ingredients used for making methamphetamine. Surveillance videos and pharmacy records indicate that defendant Renehan used her driver’s license to purchase pseudoephedrine at one pharmacy. After purchasing the necessary ingredients, the defendants returned to a residence in Lebanon, New Hampshire where Smith began the process of making methamphetamine. A search warrant executed at the residence uncovered materials that a New Hampshire State police forensic laboratory chemist determined are collectively consistent with methamphetamine manufacturing. The chemist also determined that two samples taken from the apartment indicated the presence of methamphetamine.
Smith will be sentenced on January 24, 2017. Renehan will be sentenced on February 2, 2017.
The case was investigated by the Drug Enforcement Administration and the Lebanon, New Hampshire Police Department and is being prosecuted by Assistant United States Attorney Georgiana L. Konesky.
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Two Los Angeles-Area Men Among Those Charged in Scheme to Smuggle $3 Million in Military Aircraft Parts and Defense Items to IranRead the Press Release
LOS ANGELES – Two Los Angeles-area men have been arrested on federal charges for their alleged role in a scheme to smuggle military aircraft parts and other potential defense items to Iran in violation of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).
Zavik Zargarian, 52, of Glendale, and Vache Nayirian, 57, of Lakeview Terrace, were taken into custody Wednesday morning by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The men are among five defendants charged in a nine-count federal indictment unsealed Wednesday that details a conspiracy to purchase and ship jet fighter aircraft parts worth more than $3 million to Iran.
Additionally, several of the defendants are accused of buying and illegally exporting fluorocarbon rubber O-rings to Iran. The O-rings in question have a variety of possible military applications including use in aircraft hydraulic systems and landing gear.
Also named in the indictment are Zargarian’s Glendale-based company, ZNC Engineering, and two Iranian nationals, Hanri Terminassian, 55, and Hormoz Nowrouz, 56, both of whom are believed to be in Iran.
The charges stem from a lengthy undercover probe spearheaded by HSI, with substantial assistance provided by the Defense Criminal Investigative Service (DCIS) and U.S. Customs and Border Protection (CBP).
“The crimes charged in this indictment are very serious threats to our national security,” said United States Attorney Eileen M. Decker. “As a nation it is vital that we protect our military technology and prevent it from getting into the hands of other countries without proper authorization.”
“Our commitment to prosecuting individuals who engage in the unlawful proliferation and export of items with military applications remains steadfast,” said Acting Assistant Attorney General for National Security Mary B. McCord. “The actions announced today are part of our ongoing effort to enforce export laws that continue to play a critical role in maintaining and protecting U.S. national security.”
According to the indictment, Terminassian originally contacted Zargarian from Iran for assistance with obtaining military aircraft parts from U.S.-based suppliers. Subsequently, Zargarian negotiated on Terminassian’s behalf to purchase the desired items from an undercover HSI special agent who was posing as a parts supplier. The items included parts used in F-14, F-15, F-16 and F-18 fighter jets. Eventually, Terminassian traveled to the U.S. to meet with Zargarian and the undercover special agent to discuss the transaction. The indictment alleges the two men sought to purchase between 10 and 30 units of each item, with the total cost potentially exceeding $3.6 million.
“One of HSI’s top enforcement priorities is preventing sensitive articles like those in this case from falling into the hands of individuals or nations that might seek to harm America or its interests,” said Joseph Macias, special agent in charge for HSI Los Angeles. “The illicit trade of these kinds of items to countries that have repeatedly violated our export laws must be controlled. Given what’s at stake, HSI will continue to work closely with our law enforcement partners to combat this threat and hold the perpetrators accountable for putting the U.S. at risk.”
The indictment also accuses Zargarian and Nayirian of conspiring with Terminassian and Nowrouz to export fluorocarbon rubber O-rings to Iran. The indictment alleges Terminassian contacted Nayirian and Zargarian on behalf of Nowrouz and sought their help to obtain the parts. Terminassian transferred funds for the purchase to Nayirian, who later provided the money to Zargarian. Through his company ZNC Engineering, Zargarian bought the O-rings from a California vendor and provided them to Nayirian. Nayirian then exported the O-rings to addresses in the United Arab Emirates and Kuwait provided by Terminassian, who subsequently arranged for them to be transshipped to Iran. According to the indictment, the defendants exported more than 7,000 O-rings to Iran over the course of the conspiracy.
To reduce the likelihood of detection, the defendants falsely claimed on shipping documents that the O-rings were destined for countries other than Iran and substantially undervalued them to avoid having to file export forms that might prompt further inspection by CBP. As part of the investigation, authorities obtained evidence that the O-rings were delivered to the Iranian Air Force.
Zargarian and Nayirian were arraigned on the indictment in federal court on Wednesday afternoon. Both men entered not guilty pleas and were freed on bond. A trial in this case was set for December 20 before United States District Judge S. James Otero.
If convicted of the charges in the indictment, Zargarian would face a statutory maximum sentence of 115 years in federal prison and a $4,770,000 fine. Nayirian, if he is found guilty of all counts, would face a statutory maximum sentence of 95 years in federal prison and a $3,770,000 fine.
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.
The U.S. embargo on Iran, which is enforced through the IEEPA and the ITSR, prohibits the export of goods, technology and services to Iran with very limited exceptions.
The prosecution is being handled by Assistant United States Attorney Mark Takla of the Terrorism and Export Crimes Section and DOJ Trial Attorney Christian Ford from the Counterintelligence and Export Control Section of the National Security Division.
Two Individuals to Federal Prison for Meth ConspiracyRead the Press Release
A man and woman who conspired to distribute methamphetamine were each sentenced to 10 years in federal prison.
Beatriz Roman-Luna, 33, from Paulina, Iowa, received the prison term after a June 22, 2016, guilty plea. Jose Gomez-Trujillo, 30, from Mexico, received the prison term after a July 6, 2016, guilty plea. Both pled guilty to one count of conspiracy to distribute 50 grams or more of actual (pure) methamphetamine and two counts of distribution and aiding and abetting another in the distribution of 5 grams or more of actual (pure) methamphetamine. Gomez-Trujillo also pled guilty to illegally being in the United States.
At the guilty pleas, Roman-Luna and Gomez-Trujillo admitted that from the beginning of 2016 through February 2016, they conspired together to distribute methamphetamine to others in Iowa. On two occasions in February 2016, they distributed approximately ¾ of a pound of methamphetamine to individuals cooperating with law enforcement.
Both were sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Each were sentenced to 120 months’ imprisonment. Special assessments of $300 were imposed for Roman-Luna and $400 for Gomez-Trujillo. They must each also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Each are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-4036.
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Two California Men Among Those Charged in Scheme to Smuggle Military Aircraft Parts and Defense Items to IranRead the Press Release
Zavik Zargarian, 52, of Glendale, California, and Vache Nayirian, 57, of Lakeview Terrace, California, were arrested Wednesday morning on federal charges for their alleged role in a scheme to smuggle millions of dollars’ worth of military aircraft parts and other potential defense items to Iran in violation of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).
Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Eileen M. Decker for the Central District of California and Special Agent in Charge Joseph Macias for Homeland Security Investigations (HSI) in Los Angeles made the announcement
The defendants were taken into custody by special agents of U.S. Immigration and Customs Enforcement’s HSI. The men are among five defendants charged in a nine-count federal indictment unsealed Wednesday that alleges a conspiracy to purchase and ship more than $3 million dollars’ worth of jet fighter aircraft parts to Iran. Additionally, several of the defendants are accused of buying and illegally exporting fluorocarbon rubber O-rings to Iran. The O-rings in question have a variety of possible military applications, including use in aircraft hydraulic systems and landing gear. Also named in the indictment are Zargarian’s Glendale-based company, ZNC Engineering, and two Iranian nationals, Hanri Terminassian, 55, and Hormoz Nowrouz, 56, both of whom are believed to be in Iran.
The charges stem from a lengthy undercover probe spearheaded by HSI, with substantial assistance provided by the Defense Criminal Investigative Service and U.S. Customs and Border Protection (CBP).
“Our commitment to prosecuting individuals who engage in the unlawful proliferation and export of items with military applications remains steadfast,” said Acting Assistant Attorney General McCord. “The actions announced today are part of our ongoing effort to enforce export laws that continue to play a critical role in maintaining and protecting U.S. national security.”
"The crimes charged in this indictment are very serious threats to our national security," said U.S. Attorney Decker. "As a nation it is vital that we protect our military technology and prevent it from getting into the hands of other countries without proper authorization."
According to the indictment, Terminassian originally contacted Zargarian from Iran for assistance with obtaining military aircraft parts from U.S.-based suppliers. Subsequently, Zargarian negotiated on Terminassian’s behalf to purchase the desired items from an undercover HSI special agent who was posing as a parts supplier. The items included parts used in F-14, F-15, F-16 and F-18 fighter jets. Eventually, Terminassian traveled to the U.S. to meet with Zargarian and the undercover special agent to discuss the transaction. The indictment alleges the two men sought to purchase between 10 and 30 units of each item, with the total cost potentially exceeding $3.6 million.
“One of HSI’s top enforcement priorities is preventing sensitive articles like those in this case from falling into the hands of individuals or nations that might seek to harm America or its interests,” said Special Agent in Charge Macias. “The illicit trade of these kinds of items to countries that have repeatedly violated our export laws must be controlled. Given what’s at stake, HSI will continue to work closely with our law enforcement partners to combat this threat and hold the perpetrators accountable for putting the U.S. at risk.”
The indictment also accuses Zargarian and Nayirian of conspiring with Terminassian and Nowrouz to export fluorocarbon rubber O-rings to Iran. The indictment alleges Terminassian contacted Nayirian and Zargarian on behalf of Nowrouz and sought their help to obtain the parts. Terminassian transferred funds for the purchase to Nayirian, who later provided the money to Zargarian. Through his company ZNC Engineering, Zargarian bought the O-rings from a California vendor and provided them to Nayirian. Nayirian then exported the O-rings to addresses in the United Arab Emirates and Kuwait provided by Terminassian, who subsequently arranged for them to be transshipped to Iran. According to the indictment, the defendants exported more than 7,000 O-rings to Iran over the course of the conspiracy.
To reduce the likelihood of detection, the defendants falsely claimed on shipping documents that the O-rings were destined for countries other than Iran and substantially undervalued them to avoid having to file export forms that might prompt further inspection by CBP. As part of their probe, investigators obtained evidence that the O-rings were intended for the Iranian Air Force.
Zargarian and Nayirian were arraigned on the indictment in federal court on Wednesday afternoon. Both men entered not guilty pleas, and a trial was set for December 20 before U.S. District Judge S. James Otero.
Defendant Zargarian faces a statutory maximum sentence of 115 years in federal prison and a $4,770,000 fine. Defendant Nayirian faces a statutory maximum sentence of 95 years in federal prison and a $3,770,000 fine. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. 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.
The U.S. embargo on Iran, which is enforced through the IEEPA and the ITSR, prohibits the export of goods, technology, and services to Iran with very limited exceptions.
The prosecution is being handled by Assistant U.S. Attorney Mark Takla for the Central District of California and Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Export Control Section.
Tumwater, Washington Man Sentenced to 4 Years in Prison for Dealing Drugs on Dark WebRead the Press Release
A 22-year-old Tumwater, Washington man was sentenced today in U.S. District Court in Seattle to four years in prison for his scheme to distribute drugs via the dark web, announced U.S. Attorney Annette L. Hayes. TRISTAN SIMPSON BRENNAND was arrested in December 2015, following an investigation that revealed he was distributing ecstasy on hidden websites such as “Agora” and “Evolution.” Those websites were modeled after the Silk Road website which was a marketplace for illegal substances. U. S. District Judge Robert S. Lasnik imposed three years of supervised release to follow the prison term.
“The dark web provides drug dealers and other criminals with the 21st century equivalent of hidden corners and back alleys,” said U.S. Attorney Annette L. Hayes. “Drug dealers think they can use the dark web to hide their tracks and make a living off the misery of others. What this case demonstrates is that the dark net isn’t really “dark” to law enforcement. I commend the federal and state agencies involved in this investigation for developing the evidence that resulted in this defendant being held to account for his crimes.”
According to records filed in the case, BRENNAND came to the attention of law enforcement in January 2015 with reports he was dealing drugs on various websites. In March 2015, law enforcement executed a court authorized search warrant on BRENNAND’s residence and seized MDMA (Ecstasy), more than $33,000 in cash, scales and other drug dealing paraphernalia. Law enforcement also recovered various electronic devices which contained evidence of BRENNAND’s online drug dealing.
Following BRENNAND’s arrest in December 2015, he admitted ongoing drug use and was referred for treatment. When BRENNAND reported to the treatment facility he had Xanax MDMA, and Suboxone strips that he apparently planned to sell to others seeking treatment at the facility. Even after BRENNAND was removed from the treatment facility and taken to the Federal Detention Center at SeaTac, he continued to direct a woman outside the prison to collect his drug debts and attempt to smuggle illegal drugs into the facility.
The case was investigated by the U.S. Postal Inspection Service (USPIS), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA) and the Washington State Patrol.
The case was prosecuted by Assistant United States Attorney Thomas Woods.