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Friday 2 September 2016
Three Plead Guilty to Tampering with Witness by Physical ForceRead the Press Release
Three Flint residents pleaded guilty to tampering with a witness by physical force to prevent the witness from testifying in a federal criminal case, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by David P. Gelios, Special Agent in Charge of the Federal Bureau of Investigation.
Pleading guilty were Christopher Blackwell, 27, Lawrence Christopher Davis, 22, and Lezlye Taylor, 22. The defendants entered their pleas before U.S. District Judge Terrence G. Berg in Flint.
According to court documents, in July 2014, Blackwell received a telephone call from an incarcerated man facing trial who stated that witnesses were cooperating against him. During their telephone conversation, Blackwell promised to prevent one of the witnesses from cooperating. On July 26, 2014, Taylor met up with the witness and informed Blackwell of the witness’s location as the two were leaving a building together. When the victim left the building, Blackwell and Davis shot him in both legs. Sixteen days after the shooting, law enforcement officers recovered one of the firearms used to shoot at the victim when Davis discarded it from his vehicle.
“Intimidation and harm to witnesses contribute to the ‘no snitch’ philosophy, which prevents people from reporting crimes,” McQuade said. “We will do all we can to protect witnesses in criminal cases, including prosecuting anyone who attempts to harm a witness.”
“Attempting to obstruct justice through threats or actual violence, especially when a witness to a crime is involved, is a very serious offense” said David P. Gelios, Special Agent in Charge, FBI Detroit Division, “The FBI places a premium on ensuring the personal safety and protection of all witnesses of crimes.”
Sentencing for Davis is scheduled for December 1. Sentencing for Taylor is set for December 15 and sentencing for Blackwell is scheduled for January 19, 2017. Each face a statutory maximum penalty of 30 years in prison.
The case was investigated by special agents of the FBI. The case is being prosecuted by an Assistant United States Attorney from the Flint Branch of the United States Attorney’s Office.
Three Milwaukee Men Charged with Elm Grove Bank RobberyRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that three Milwaukee men were charged with armed bank robbery and brandishing a firearm during and in relation to a crime of violence. The men are identified as: Elijah McGee, (age: 20), London Johnson, (age: 20), and Robert R. Crumble, Jr., (age: 20).
The indictment alleges that on February 2, 2016, the TCF bank located in Elm Grove, WI, was robbed by at least three subjects. If convicted, the three defendants face a maximum of 25 years’ imprisonment for the armed bank robbery charge, and a minimum mandatory of seven years’ imprisonment with a maximum of life imprisonment on the firearms charge.
The case was investigated by the Elm Grove Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Lisa A. Wesley.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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Tennessee Man Arrested on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that David E. Rhoades, 36, of Goodlettsville, Tennessee, was arrested and charged by criminal complaint with possession of a firearm as an unlawful user of a controlled substance. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the complaint, on August 28, 2016, the defendant attempted to enter Canada at the Peace Bridge Port of Entry. Rhoades was refused entry for possessing a loaded gun. The defendant was escorted by the Canada Border Services Agency (BEST) back into the United States to U.S. Customs and Border Protection. The gun was a 9mm pistol for which Rhoades did not have a permit to carry. Drug paraphernalia, including a pill bottle with cocaine residue, a pipe, rolling papers with marijuana residue, and a scale, was also found in the car and seized by officers.
The criminal complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Customs and Border Protection, under the direction of Rose Hilmey, Acting Director of Field Operations, and by the Canada Border Services Agency.The fact that the defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Statement by U.S. Attorney Damon P. Martinez on Fatal Shooting of Alamogordo Police Officer Clint CorvinusRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez issued the following statement upon learning of the fatal shooting of Officer Clint Corvinus, 33, of the Alamogordo Police Department:
“On behalf of the U.S. Attorney’s Office and the entire federal law enforcement community, I want to express our deepest condolences to the family of Officer Clint Corvinus and the men and women of the Alamogordo Police Department.
“Today Officer Clint Corvinus joined the list of law enforcement officer-heroes who sacrificed themselves while safeguarding their communities, and protecting their fellow citizens. Since March of 2015, New Mexico’s list of fallen officer-heroes has grown to include Officer Alex Yazzie of the Navajo Nation Division of Public Safety, Officer Gregg Benner of the Rio Rancho Police Department, Officer Daniel Webster of the Albuquerque Police Department and Officer Jose Chavez of the Hatch Police Department.
“When even a list of one is too long and at a time when the list of fallen officer-heroes is growing far too quickly, we, as a community, are grieving. Each of these losses is a tragedy. Each breaks our hearts. And each leaves a void that can never be filled. Beyond the profound losses suffered by loved ones they leave behind wound, our fallen officer-heroes leave behind comrades, deeply affected with unseen wounds, who carry forward with their work.
“Although words cannot relieve the pain or ease the sorrow Officer Corvinus’s family is experiencing today, I hope they can take comfort in knowing that their community and law enforcement officers throughout New Mexico and the country will always remember Officer Corvinus’s sacrifice.”
St. Francis Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Traelyn Lashae McCloskey, age 18, was indicted on August 16, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 25, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 7, 2016, McCloskey forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with an officer from the Rosebud Sioux Tribe, while said officer was performing his official duties.
The charge is merely an accusation and McCloskey is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
McCloskey was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
St. Francis Man Charged with Repeated Harassing Communications and StalkingRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Obscene Telephone Call, Anonymous Telephone Call, Repeated Telephone Call, Repeated Harassing Communications, and Stalking.
Calvin Richard Spotted Tail, age 36, was indicted on May 17, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 25, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund for each count. Restitution may also be ordered.
The Indictment alleges that between June 9, 2011, and July 16, 2014, Spotted Tail made numerous obscene telephone calls, anonymous telephone calls, and repeated telephone calls to several women and businesses.
The charges are merely accusations and Spotted Tail is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, Rosebud Sioux Tribe Law Enforcement Services, Rapid City Police Department, and the Cherry County Police Department. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Spotted Tail was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rochester Man Sentenced on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Tremmell Brown, 31, of Rochester, NY, who was convicted of being a felon in possession of a firearm and ammunition, was sentenced to 12 months in prison by U.S. District Court Judge David G. Larimer.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that on July 11, 2015, at about 4:30 a.m., officers from the Rochester Police Department responded to 100 Green Knolls Drive in Rochester, for a report of a man in the parking lot of an apartment complex with a shotgun. As officers arrived, they could hear music coming from a car in the parking lot. As they approached, Brown got out of the car holding a shotgun, walked around the car, and got back in. This pattern of behavior, which also included Brown pumping the shotgun, went on for several minutes before the defendant finally sat in his car with the shotgun and drove away.
Shortly after, Brown, who had left the apartment complex, re-entered the parking area and parked at 143 Green Knolls Drive in a handicapped parking spot. Officers approached Brown as he got out of his car and took him into custody. In the car, officers could see the shotgun in the back seat. A further search of the car uncovered a small amount of loose marijuana, a shotgun case and ammunition.
Brown told officers that he had the shotgun because he was going hunting but denied sitting in the parking lot and racking the shotgun. In addition, the defendant said that he knew, given that he was a convicted felon, it was illegal to possess a handgun but thought he could possess a shotgun.The sentencing is the result of an investigation on the part of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Charlie J. Patterson, New York Field Division, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Richmond Man Sentenced to Ten Years in Prison for Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE: Robert Brunk, 25, of Richmond, New Hampshire, was sentenced in the United States District Court for the District of New Hampshire for possessing child pornography, announced United States Attorney Emily Gray Rice. United States District Judge Steven J. McAuliffe sentenced Brunk to 120 months’ incarceration followed by supervised release for life.
According to court documents and statements in court, on November 7, 2014, law enforcement officers executed a search warrant at the residence of Robert Brunk. Pursuant to the search warrant, officers seized computers and an external hard drive. Officers conducted a full forensic review of the external hard drive and located images and videos of children under the age of 18 engaged in sexual acts. The defendant, when interviewed, admitted that the external hard drive was his, and stated that he knew it contained images of children under the age of 18 engaged in sexual conduct. Some of those images were produced by the defendant and therefore also possessed by the defendant and those images depicted at least one minor under the age of 12.
The investigation in this case was led by the Police Departments of Richmond, Hinsdale, Manchester, and Concord, New Hampshire as well as the New Hampshire State Police, the New Hampshire Attorney General’s Office, the New Hampshire Internet Crimes Against Children Task Force, Homeland Security Investigations, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
President of O.C.-based Bulk Mail Company Pays $3 Million to Resolve Investigation into Scheme to Defraud U.S. Postal ServiceRead the Press Release
LOS ANGELES – The president of an Anaheim-based bulk mailing company this week paid the United States $3 million to resolve a federal investigation into allegations that the mailer systematically misclassified postage and defrauded the U.S. Postal Service (USPS) out of millions of dollars in postage fees.
The payment, which was made on Wednesday and announced today, resolves a civil investigation into Advantage Mailing, LLC, which handles bulk mailings and provides design, printing and mailing services for a broad range of customers. An investigation by Postal authorities determined that Advantage had submitted to the USPS false postage statements that misrepresented, among other things, the type and amount of postage affixed to millions of pieces of mail handled by the company. As a result, Advantage paid less to the USPS – millions of dollars less – than was actually due in postal fees.
“By misclassifying postage and submitting false statements to the Postal Service, this company avoided paying millions of dollars,” said United States Attorney Eileen M. Decker. “The settlement and the resulting multi-million dollar payment to the government puts others on notice that postal violations will not be tolerated and every entity that attempts to defraud the United States will be held accountable.”
Under USPS regulations, mailers must complete and submit a postage statement to the Postal Service that identifies the particulars of each mailing, such as type of postage used, the amount of pre-paid postage and number of pieces mailed. The USPS relies upon these postage statements to determine the amount of postage fees due, so mailers such as Advantage are required to truthfully and accurately complete the statements.
“A theft from the Postal Service is a theft from the American public,” said Postal Inspector in Charge Robert Wemyss. “Postal Inspectors will vigorously pursue and bring to justice anyone who cheats the Postal Service out of revenue. The Postal Inspection Service appreciates the strong stance the United States Attorney’s Office has taken against those who seek to take advantage of the Postal Service by underpaying postage.”
Advantage agreed to the civil settlement without admitting any wrongdoing. Advantage’s president, Thomas C. Ling, paid the settlement on August 31.
The government’s investigation was conducted by the U.S. Postal Inspection Service and the U.S. Postal Service Office of Inspector General.
The settlement was handled by Assistant United States Attorney Deborah Yim of the Civil Division’s Civil Fraud Section.
New York Man Pleads Guilty to Transporting Women for ProstitutionRead the Press Release
CONCORD, NEW HAMPSHIRE: Neptali De La Cruz Hernandez, 32, of New York, New York, appeared in United States District Court in Concord, New Hampshire on Friday and pled guilty to transporting two women in interstate commerce for prostitution, announced United States Attorney Emily Gray Rice.
According to court records and statements in court, on April 6, 2016, detectives with the Salem, New Hampshire Police Department responded to a tip regarding possible prostitution activity at a Salem hotel. Upon arriving at the hotel, the detectives conducted an undercover operation, during which they identified two women engaging in prostitution from adjacent hotel rooms. While interviewing the suspects, the detectives observed the defendant, De La Cruz Hernandez, driving erratically in the parking lot before he attempted to flee. They stopped the defendant’s vehicle, and during a subsequent interview, the defendant admitted that he had driven the two women from New York to New Hampshire for the purpose of engaging in prostitution.
De La Cruz Hernandez faces a sentence of up to ten years in prison, and a maximum fine of $250,000. He is scheduled for sentencing on December 19, 2016.
The case was investigated by the Salem, New Hampshire Police Department, in conjunction with Homeland Security Investigations in Manchester.
The case is being prosecuted by Assistant United States Attorneys Nick Abramson and Georgiana Konesky.
Multi-Jurisdictional Investigation into Drug Trafficking Culminates in Coordinated Law Enforcement Action in Four States and U.S. Virgin IslandRead the Press Release
PITTSBURGH – Following a multi-jurisdictional investigation into drug trafficking in Pittsburgh, Penn., 14 individuals have been indicted in the Western District of Pennsylvania for violating federal narcotics laws. The multi-agency Organized Crime Drug Enforcement Task Force investigation revealed a cocaine trafficking distribution network operating from the Virgin Islands to Detroit, Michigan, and a heroin trafficking scheme originating in Detroit and distributing to Pittsburgh. Coordinated law enforcement action occurred Thursday in multiple locations, with arrest warrants and search warrants being executed in Georgia, Michigan, Ohio, Pennsylvania and the U.S. Virgin Islands.
“This investigation, which utilized Title III wiretap intercepts, controlled drug purchases and other investigative techniques, established the existence of several overlapping and interrelated drug distribution networks with tentacles in the Western District of Pennsylvania, Northern District of Ohio, Eastern District of Michigan, Northern District of Georgia and the District of the Virgin Islands.” stated U.S. Attorney David J. Hickton. “While our focus began in early 2015 on the Clinton Robinson drug trafficking organization operating on Pittsburgh’s North Side, we have since been able to track the drug suppliers beyond the borders of our own district and across the Caribbean Sea.”
“The arrests demonstrate, once again, the continued successful partnership of federal, state and local law enforcement in Western Pennsylvania,” said Special Agent in Charge Robert Johnson of the FBI’s Pittsburgh Field Office. “We are committed to stopping the flow of illegal drugs into our community from wherever they originate and grateful to our law enforcement partners on the FBI Greater Pittsburgh Safe Streets Task Force who worked tirelessly with us throughout this investigation and who are equally committed to keeping our neighborhoods safe.”
THE INDICTMENTS
The Western District of Pennsylvania charges are contained in four separate, but related, indictments returned on Aug. 23, 2016, and unsealed yesterday.
- Clinton Robinson, 31, of Pittsburgh, PA;
- Ronelle Lane, 35, of Pittsburgh, PA;
- Vanier Murraine, 33, of Ferndale, MI;
- Victor Burnett, Jr., 36, of Oak Park, MI;
- Christopher Butler, 29, of Twinsburg, OH;
- Frank Williams, 27, of Detroit, MI; and
- Drue Williams, III, 35, of Cleveland, OH.
The two-count indictment alleges that from in and around January 2016 and continuing until around September 2016 Clinton Robinson, Ronelle Lane, Vanier Murraine, Victor Burnett, Jr., Christopher Butler, Frank Williams and Drue Williams, III, conspired to distribute and possession with intent to distribute one kilogram or more of heroin. In addition, the indictment alleges that on or about August 22, 2016, Robinson, Lane and Murraine attempted to distribute and possessed with intent to distribute 100 grams or more of heroin.- Derrein Robinson, 33, of Pittsburgh, PA;
- Dion Robinson, 27, of Pittsburgh, PA; and
- Todd Kenney, 27, of Pittsburgh, PA.
The one-count indictment alleges that from in and around April 2016 and continuing to in and around June 2016 Derrein Robinson, his brother Dion Robinson and Todd Kenney conspired to distribute and possess with intent to distribute a quantity of heroin.- Raheem Buchanan, 32, of Pittsburgh, PA; and
- Lamont Butler, 45, of Munhall, PA.
The one-count indictment alleges that from in and around February 2016 to in and around July 2016 Raheem Buchanan and Lamont Butler conspired to distribute and possess with intent to distribute a quantity of heroin.- Kelvin Ferguson, 29, formerly of Pittsburgh, PA; and
- Regina Brown, 28, of Pittsburgh, PA.
The two-count indictment alleges that in and around May 2015, Kelvin Ferguson and Regina Brown conspired to distribute and possess with intent to distribute a quantity of heroin. The indictment further alleges that on May 14, 2015, Ferguson and Brown possessed with intent to distribute a quantity of heroin.Clinton Robinson, Ronelle Lane, Derrien Robinson, Dion Robinson, Raheem Buchanan, Lamont Butler and Regina Brown were arrested yesterday morning and made their initial appearances in U.S. District Court in Pittsburgh. Vanier Murraine, Victor Burnett, Jr., and Frank Williams were arrested yesterday morning and made their initial appearances in U.S. District Court in the Eastern District of Michigan. Christopher Butler and Drue Williams, III, were arrested yesterday in Ohio and will make their initial appearances in U.S. District Court in Pittsburgh today. Kelvin Ferguson is presently detained on state charges at SCI Somerset.
Todd Kenney is a fugitive. Anyone with information is asked to call the FBI at 412-432-4000.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston of the Western District of Pennsylvania is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the indictment in this case. The Western Pennsylvania OCDETF is headed by the Federal Bureau of Investigation and is comprised of members drawn from the FBI Greater Pittsburgh Safe Streets Task Force including the Pittsburgh Bureau of Police, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, and Allegheny County Police Department. Substantial assistance was provided by FBI San Juan, Puerto Rico (St. Thomas Resident Agency, U.S. Virgin Islands) and the United States Postal Inspection Service. Numerous other FBI field offices, including Detroit, Cleveland, New York, and Atlanta, in addition to the Bureau of Alcohol, Tobacco, and Firearms, also assisted with this investigation. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mission Man Charged with AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by an Habitual Offender and Assaulting, Opposing, Resisting, and Impeding a Federal Officer.
Charles Black Spotted Horse, age 24, was indicted on August 16, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 25, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund for each count. Restitution may also be ordered.
The Indictment alleges that on April 29, 2016, Black Spotted Horse unlawfully assaulted his spouse when, at the time of the domestic assault, Black Spotted Horse had a final conviction on at least two prior occasions for offenses that have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner. The Indictment also alleges that on or about April 29, 2016, Black Spotted Horse forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with an officer from the Rosebud Sioux Tribe, while that officer was engaged in the performance of his official duties.
The charges are merely an accusation and Black Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Black Spotted Horse was released on bond pending trial. A trial date has not been set.
Mellette County Man Sentenced to 33 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mellette County, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 4, 2016, by U.S. District Judge Roberto A. Lange.
Ty Wesley Clifford, age 23, was sentenced to 33 months in custody, followed by 3 years of supervised release, a $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund. Clifford was also ordered to forfeit U.S. currency and two handguns seized by law enforcement in September 2015.
Clifford was indicted for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person by a federal grand jury on January 21, 2016. He pled guilty to Conspiracy to Distribute a Controlled Substance on June 1, 2016.
From May 2014 through September 2015, Clifford received and distributed methamphetamine in South Dakota. The individuals who provided Clifford with large amounts of methamphetamine knew he intended to engage in further distribution. It was reasonably foreseeable to Clifford that more than 50 grams of methamphetamine would be distributed during the course of this conspiracy.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Clifford was immediately turned over to the custody of the U.S. Marshals Service.
Massachusetts Man Sentenced on Federal Gun ChargesRead the Press Release
CONCORD, N.H. – John Wachaga, 22, of Lowell, Massachusetts, was sentenced on Friday in United States District Court in Concord, New Hampshire, for aiding and abetting the straw purchase of a firearm, and possessing a firearm as a convicted felon. According to United States Attorney Emily Gray Rice, Wachaga was sentenced to 18 months’ imprisonment, to be served consecutively to a sentence Wachaga is currently serving on state charges in Massachusetts. The defendant faces possible deportation proceedings following the completion of his sentence.
According to court records and statements in court, on May 4, 2014, officers from the Lowell, Massachusetts Police Department stopped a vehicle being driven by Wachaga, and seized a handgun secreted underneath Wachaga’s seat. Upon further investigation, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that Wachaga had persuaded another individual to purchase the firearm for him in New Hampshire, because a prior felony conviction precluded him from purchasing the firearm himself.
This prosecution arose from an investigation conducted by the Bureau of Alcohol, Tobacco, and Firearms (Boston and New Hampshire), in conjunction with the Lowell, Massachusetts Police Department.
The case was prosecuted by Assistant United States Attorney Nick Abramson.
Man Pleads Guilty to Possession of Cocaine with Intent to DistributeRead the Press Release
St. Thomas, USVI – Estanislao De Jesus, 47, of the Dominican Republic, pleaded guilty Thursday in District Court on St. Thomas to possession of cocaine with intent to distribute, United States Attorney Ronald W. Sharpe announced. Sentencing is scheduled for January 5, 2017.
According to the plea agreement filed with the court, on May 7, 2016, agents from the U.S. Drug Enforcement Administration arrested De Jesus and Tomas Liriano-Castillo after Liriano-Castillo traveled by boat from Tortola to Hull Bay, St. Thomas, with six kilograms of cocaine. De Jesus admitted that he knew Liriano-Castillo went to Tortola to bring back cocaine to sell in St. Thomas.
De Jesus faces a minimum sentence of not less than five years, and a maximum sentence of 40 years in prison. He also faces a $5 million fine.
The case was investigated by the DEA and the U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Sigrid Tejo-Sprotte.
Louisiana Man Sentenced to 20 Years in Prison for Engaging in Child Exploitation Enterprise and Production of Child PornographyRead the Press Release
A Greenwell Springs, Louisiana, man was sentenced today to serve 240 months in prison for engaging in a child exploitation enterprise and production of child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney James A. Lewis of the Central District of Illinois and Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois, Division.
Dakota K. Martin, 21, was sentenced by U.S. District Judge Colin S. Bruce of the Central District of Illinois, who also ordered him to serve a 25-year term of supervised release and to forfeit all of his computer equipment. Martin pleaded guilty on Aug. 5, 2015. He has remained in the custody of the U.S. Marshals since his arrest on Nov. 19, 2014.
Martin admitted upon entering his guilty plea to engaging in a child exploitation enterprise and to producing child pornography. According to the second superseding indictment, the enterprise involved an Internet-based, members-only bulletin board the purpose of which was, among other things, the advertisement and distribution of child pornography. Also according to the second superseding indictment, the rules of the website required prospective members to register an account and post child pornography to the satisfaction of board members in order to become a member, and to continue to post images of child pornography to remain in good standing and avoid removal from the site. The website’s rules also required members to upload encrypted child pornography images or videos to an approved website, along with necessary passwords needed to download such images or videos, according to the second superseding indictment. According to a criminal information, in February 2014, Martin also produced child pornography involving a minor victim.
On July 15, 2016, Martin’s co-conspirator Jason Gmoser, 36, of Hamilton, Ohio, was sentenced to serve life in prison for engaging in a child exploitation enterprise. Gmoser was also sentenced to 30 years and 20 years to be served concurrent to the life sentence for conspiring to advertise and conspiring to distribute child pornography, respectively.
The FBI’s Springfield Field Office and the FBI’s Violent Crimes Against Children Section, Major Case Coordination Unit and Digital Analysis and Research Center led the investigation of this case. Acting Assistant Deputy Chief Keith Becker and Trial Attorney Elly Peirson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Local Teacher Charged after Attempting to Engage in Sexual Conduct with a MinorRead the Press Release
HOUSTON – A 30-year-old teacher has been arrested on multiple charges surrounding his travel across state lines to engage in sexaul activity with a minor male, announced U.S. Attorney Kenneth Magidson. Drew Dillon Watson is a Physics teacher at a local school serving approximately 1,000 students in grades 6-12.
Watson, of Houston, was taken into custody yesterday upon the filing of a criminal complaint. He is expected to make his initial appearance before U.S. Magistrate Judge Stephen Wm. Smith at 2:00 p.m., at which time the government intends to request his detention pending further criminal proceedings.
The criminal complaint alleges Watson had been communicating with a 15-year-old male via text messaging, telephone calls, Skype and social media such as Kik and Snapchat beginning on or about April 16, 2016. During those conversations, Watson allegedly engaged in extremely explicit sexual conversations which eventually led to plans for Watson to travel to Illinois to meet with the boy. According to the criminal complaint, the minor male believed Watson’s intentions to be sexual in nature and that they had discussed engaging in various sex acts once they were alone.
The complaint further indicates that Watson was aware the male was under the age of 18. During those online communications, which allegedly occurred every day, Watson had stated he was approximately 30 years old and had formerly been employed as a physics teacher at a Texas area high school. The male informed Watson that he was a 16-year old high school student. As the communications progressed, Watson also allegedly sent the minor full body nude images of himself.
The criminal complaint charges that on May 13, 2016, Watson flew from Houston to Chicago with plans to meet with the boy for the purpose of engaging in illicit conduct. The victim’s mother had dropped her son off at a friend’s residence, thinking he was spending the weekend there. According to the charges, she was about to leave, when she felt something amiss and circled back around to the home. There, she witnessed her son entering a vehicle driven by an approximately 30-year-old male, according to the complaint. She confronted him, at which time her son exited the vehicle and they alerted authorities.
Watson is charged with coercion and enticement as well as transportation with intent to engage in criminal sexual activity. Both counts carry a minimum of 10 years and up to life in federal prison. He is also charged with travel with intent to engage in illicit sexual conduct which carries another 30-year-maximum term.
The FBI Violent Crime Task Force investigated the case with assistance from FBI in Chicago and the Lansing, Illinois, Police Department.
This case, being prosecuted by Assistant U.S. Attorney Sherri Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Local Tax Preparer Charged with Using Aliases to Continue False Tax Return Preparation after Pleading GuiltyRead the Press Release
HOUSTON – A local tax return preparer has been arrested on new charges of illegally preparing 39 false tax returns, announced U.S. Attorney Kenneth Magidson along with D. Richard Goss, special agent in charge of Internal Revenue Service-Criminal Investigation (IRS-CI).
Cedric Keith Oliphant was sentenced to 33 months after pleading guilty in 2013 to filing a false tax return. He was released from prison Aug. 26, 2016, and arrested on the new charges today.
The 40-count indictment was returned under seal Aug. 29, 2016, and unsealed upon his arrest this morning. He is expected to make his initial appearance before U.S. Magistrate Judge Stephen W. Smith at 2:00 p.m. today.
Oliphant had been previously charged and later convicted of preparing dozens of false 2006-08 client tax returns as part of his business - Oliphant Tax Services. He had been permitted to remain on bond during that time under a condition that he have no involvement in the preparation of tax returns other than his own. However, according to the new indictment, Oliphant continued to claim the same false deductions for unsuspecting clients while awaiting sentencing on the previous case.
As part of the scheme, the indictment alleges he changed the name of business to “Tax Services” to allegedly make it appear he had stopped preparing client tax returns and that someone else was the owner of his tax preparation business. Oliphant allegedly attributed the fees to the nominal owner of his tax office but manipulated those tax returns to make it appear the tax office had produced almost no taxable income.
The indictment also alleges Oliphant established a series of bank accounts in the names of others - including minors with custodians other than himself - so the fees could first be deposited to accounts in the names of the nominal owner of his tax office and others. He then allegedly transferred those fees through these intermediate accounts to accounts in his own name. This scheme enabled Oliphant to conceal his personal use of the fees generated by the business during the course of the prosecution on the first case, according to the charges.
The business allegedly generated $2 million in fees and a total loss to the IRS of another $400,000 or more as charged in the new indictment. As part of the his plea agreement in the earlier case, the losses from those false tax returns exceeded $325,000.
If convicted, he faces another three years in federal prison and a possible $250,000 fine on each count of conviction.
IRS-CI conducted the investigation. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the cases.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Lexington Man Sentenced to More Than 30 Years for Distributing Fentanyl and Heroin Resulting in DeathRead the Press Release
LEXINGTON — A Lexington man has been sentenced to 365 months in federal prison, for distributing heroin and fentanyl that resulted in the death of a 29 year-old woman, who had given birth just two weeks before her death.
On Thursday, U.S. District Judge Danny Reeves sentenced 44 year-old Christopher Allen for distributing a controlled substance resulting in death. Under federal law, Allen must serve at least 85 percent of his prison sentence.
In May of this year, a jury convicted Allen of distributing heroin and fentanyl resulting in death, conspiracy to distribute heroin and fentanyl, and possession with intent to distribute heroin and fentanyl.
“It’s hard to imagine a greater issue facing our commonwealth than this opiate crisis that continues to take lives and devastate families,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “The people responsible for these tragedies, like Mr. Allen, have a heavy price to pay for their decision to pedal these poisons. This is a crisis that requires us to use every available tool to fight back. One such tool is our federal law that imposes a prison sentence of 20 years to life, with no parole, on those professional drug dealers and suppliers that sell heroin, fentanyl or other opiates, which result in death or serious bodily injury. We are working closely with our law enforcement partners to find those dealers we consider to be the worst the worst, and apply this law when necessary.”
According to trial testimony, in September of 2015, Allen distributed heroin and fentanyl to Nicole Alvarez, who had given birth to a baby two weeks before her overdose. Alvarez was found by her boyfriend in her home.
Authorities were able to verify that Allen supplied the drugs to Alvarez. A toxicologist testified that Alvarez died as a result of the toxic effects of the heroin and fentanyl and that the level of fentanyl in her system was three times the therapeutic range.
U.S. Attorney Harvey; Timothy J. Plancon, Special Agent in Charge of the Detroit Field Division of the Drug Enforcement Administration; and Mark Barnard, Chief of Lexington Police, jointly made the announcement.
The investigation was conducted by the Lexington Police and DEA. Assistant U.S. Attorneys Todd Bradbury and Cindy Rieker prosecuted this case on behalf of the federal government.
La Joya Man Convicted of Pointing Laser at CBP HelicopterRead the Press Release
McALLEN, Texas – A 57-year old La Joya man has entered a guilty plea to pointing a laser at a Customs and Border Protection (CBP) helicopter, announced U.S. Attorney Kenneth Magidson.
Juan Peralez was arrested June 20, 2016. On that date, CBP agents in a helicopter were assisting Border Patrol (BP) agents in an area south of La Joya when they noticed the light of a green laser in the cabin. The pilot took evasive action and turned away in order to avoid being blinded by the laser.
Another member of the flight crew then guided agents on the ground to the source of the laser where a BP agent encountered Peralez, aiming the laser at the helicopter.
According to agents with CBP Air and Marine, lasers are particularly hazardous when directed at aircraft. At a minimum, they create distractions for crews who routinely operate in the vicinity of power lines and towers. Lasers can also create temporary or permanent blindness. Further, since lasers can also be attached to weaponry, pilots will often take immediate evasive action which can also put them in harm’s way.
U.S. District Judge Randy Crane accepted the plea today and has set sentencing for Nov. 17, 2016. Peralez was permitted to remain on bond pending that hearing, at which time he faces up to five years imprisonment and a possible $250,000 maximum fine.
The arrest is the result of a joint investigation between Homeland Security Investigations and the FBI with the assistance of Texas Department of Public Safety and Border Patrol. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Justice Department Requires Divestitures in Order for Nexstar to Proceed with Media General AcquisitionRead the Press Release
Nexstar Must Divest Seven Broadcast Television Stations in Six Markets to Upfront Buyers Approved by the Department
The Department of Justice announced today that it will require Nexstar Broadcasting Group to divest seven broadcast television stations in order to proceed with its $4.6 billion acquisition of Media General Corporation. The department said that without the required divestitures, the prices for broadcast television spot advertising and the fees charged to multichannel video programming distributors (MVPDs) – such as cable and satellite providers – for the retransmission of broadcast television programming to MVPD subscribers would likely increase in six designated market areas (DMAs) located across the United States.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court of the District of Columbia to block the proposed transaction and simultaneously filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
“As originally structured, this transaction would have given Nexstar the power to impose higher prices on local and national advertisers and to demand higher retransmission fees from cable and satellite companies in six markets,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “Today’s settlement will protect advertisers, MVPDs and consumers – who ultimately would have borne many of these increased costs – by ensuring that Nexstar does not obtain undue bargaining leverage when negotiating broadcast television spot advertising prices and retransmission fees.”
The department’s complaint alleges that the proposed transaction would lessen competition in the sale of broadcast television spot advertising and the licensing of broadcast television programming to MVPDs for retransmission to MVPD subscribers in the following DMAs: Roanoke-Lynchburg, Virginia; Terre Haute, Indiana; Fort Wayne, Indiana; Green Bay-Appleton, Wisconsin; Lafayette, Louisiana; and Davenport, Iowa/Rock Island-Moline, Illinois (“Quad Cities”). As a result of the acquisition, Nexstar would control between 41 and 100 percent of the broadcast television station gross advertising revenues in these six DMAs and at least two broadcast television stations affiliated with the four major national television networks.
Under the terms of the proposed settlement, Nexstar must divest the following television stations to the following acquirers or other acquirers approved by the United States: WBAY-TV, in Green Bay, to Gray Television Inc.; WSLS-TV, in Roanoke-Lynchburg, to Graham Holdings Company; KADN-TV and KLAF-LD, in Lafayette, to Bayou City Broadcasting Lafayette Inc.; WTHI-TV, in Terre Haute, to USA Television MidAmerica Holdings Inc.; WFFT-TV, in Fort Wayne, to USA Television; and KWQC-TV, in Quad Cities, to Gray Television.
Nexstar is a Delaware corporation with its headquarters in Irving, Texas. Nexstar owns, operates or services broadcast television stations in 62 metropolitan areas. Nexstar reported net operating revenues of over $890 million in 2015.
Media General is a Virginia corporation with its headquarters in Richmond, Virginia. Media General owns, operates or services broadcast television stations in 48 metropolitan areas. Media General reported net operating revenues of $1.3 billion in 2015.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Owen Kendler, Assistant Chief, Litigation III Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Fourth Floor, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Nexstar-Media General CIS
Nexstar-Media General Complaint
Nexstar-Media General Explanation
Nexstar-Media General Hold Separate
Nexstar-Media General PFJ
Jury Convicts Merced County Man of Possessing Child PornographyRead the Press Release
FRESNO, Calif. — After an eight-day trial in Fresno, a federal jury found Roger Cha, 30, of Atwater, guilty today of one count of possession of child pornography, Acting United States Attorney Phillip A. Talbert announced.
According to evidence presented at trial, on April 18, 2012, federal agents served a search warrant at Cha’s residence in Atwater to search for evidence of child pornography. Cha admitted to agents during the search that any child pornography found on the computer belonged to him, describing details of what they would find. A later forensics examination of the computer confirmed his admissions. The child pornography found on the computer included videos of children as young as four years old.
This case is the product of an investigation by the U.S. Secret Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Office, and the Fresno Internet Crimes Against Children (ICAC) task force. ICAC is a federally and state-funded task force with agents from federal, state, and local agencies. The Fresno ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorneys Mark J. McKeon and Jeffrey A. Spivak are prosecuting the case.
Cha is scheduled to be sentenced by United States District Judge Anthony W. Ishii on December 12, 2016. Cha faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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.
Jury Convicts Kern County Man of Illegally Possessing Firearms, Explosives and AmmunitionRead the Press Release
FRESNO, Calif. — Today, after a three-day trial, a federal jury found Kenneth William Kirkland, 48, of California City, guilty of being a felon in possession of firearms, being a felon in possession of a destructive device, being a felon in possession of explosives, and possession of a destructive device not registered in the National Firearms Registry, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents and evidence produced at trial, on October 11, 2015, officers from the California City Police Department executed a search warrant at Kirkland’s house and found a 5.56-caliber assault rifle that was loaded with a high-capacity magazine and one round in the chamber and a 7.62 x 54R-caliber rifle. When officers discovered detonators in a yellow metal container, they requested the assistance of the Kern County Sheriff’s bomb squad.
In addition to the detonators, several sticks of dynamite were found and a partially constructed improvised explosive device (IED) was found in a shoebox under Kirkland’s bed. Electrical components in a separate shoebox were also found. It was later determined that with either the insertion of batteries into a battery pack or the connecting of its wires directly to a battery, the partially constructed improvised explosive device could be readily assembled into a fully functional IED.
According to the indictment, on June 17, 1993, Kirkland was convicted in Kern County of burglary and was prohibited from possessing firearms or ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the California City Police Department, and the Kern County Sheriff’s Office. Assistant U.S. Attorneys Angela L. Scott and Christopher Baker are prosecuting the case.
Kirkland is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on December 5, 2016. Kirkland faces a maximum statutory sentence of 10 years in prison and a $250,000 fine for being a felon in possession of firearms or a destructive device, and a maximum of 10 years in prison and a $10,000 fine for possession of a firearm not registered in the National Firearms Registry. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
International Fugitive Extradited to United States to Face Charges Regarding Alleged Cedar Funding Investment Fraud SchemeRead the Press Release
SAN JOSE - A former Monterey-area man, Manoel Antonio Errico, was extradited to the United States from Argentina on August 23, 2016, to face fraud charges brought against him in September 2009, announced United States Attorney Brian J. Stretch, Monterey County District Attorney Dean D. Flippo, United States Postal Inspection Service Inspector in Charge Rafael Nuñez, and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
In a federal indictment returned on September 8, 2009, Errico, 62, is accused of defrauding investors in Cedar Funding, a Monterey-based “hard money” lender. Errico allegedly induced victims to invest in loans purportedly secured by deeds of trust and in a fund that invested in those same loans. According to the thirty-one count indictment, Cedar Funding had more than 1,000 investors while in existence.
The indictment describes various ways in which Errico allegedly defrauded investors by inducing them to purchase fractional interests in loans secured by deeds of trusts, and shares of Cedar Funding Mortgage Fund, LLC. According to the indictment, Errico engaged in a scheme, plan and artifice to defraud his targets, failed to disclose material facts, and made materially false statements. Specifically, the indictment alleges that, among other things, by using documents provided to investors, advertisements, interest payments and verbal communications, Errico participated in creating the false and misleading appearance that the investors’ funds were invested in sound, secured real estate loans, which offered high returns and safety of principal. In truth, by in or about 2004 and increasingly thereafter, most of the loans were not performing, and the investors’ funds were not secure. Moreover, as borrowers increasingly failed to pay off loans, Errico, without the investors’ prior knowledge or consent, allegedly participated in extending the loan maturity dates and advanced more investor funds, which caused the loan balances to balloon beyond the initial loan amounts, diluted the investors’ fractional interests in the loans and increased the likelihood that they would lose some or all of their principal.
The indictment also alleges that, unknown to investors, the source of a substantial part of the interest that Errico caused Cedar Funding to pay to existing investors came from new investors’ funds rather than from performing borrowers.
Errico was arrested in April 2016 when he traveled from his home country of Brazil to Argentina. He was arrested by Argentine authorities based on an Interpol “Red Notice” that had been submitted by the United States. The United States thereafter made a formal extradition request to Argentina, and on August 1, 2016, the Argentine authorities ordered Errico extradited to the United States.
After being extradited, Errico made his initial appearance in federal court in San Jose on September 1, 2016, before U.S. Magistrate Judge Howard R. Lloyd. On that date, Judge Lloyd conducted a bail hearing and ordered that Errico be detained pending trial. The defendant’s next scheduled appearance is September 19, 2016, before U.S. District Judge Edward J. Davila.
Errico is named in each of the thirty-one counts alleged in the indictment. The charges and maximum statutory penalties for each count in the indictment are as follows:
- Count 1, conspiracy, in violation of 18 U.S.C. § 1349: twenty years’ imprisonment, a fine of $250,000 or twice the amount of gain or loss, whichever is greater, three years supervised release.
- Counts 2 through 12, mail fraud, in violation of 18 U.S.C. § 1341: twenty years’ imprisonment, a fine of $250,000 or twice the amount of gain or loss, whichever is greater, three years supervised release.
- Counts 13 through 20, wire fraud, in violation of 18 U.S.C. § 1343: twenty years’ imprisonment, a fine of $250,000 or twice the amount of gain or loss, whichever is greater, three years supervised release.
- Counts 21 through 31, securities fraud and aiding and abetting, in violation of 15 U.S.C. §§ 78j(b) and 78ff; 17 C.F.R. §§ 240.10b-5 and 240.10b5-2; and 18 U.S.C. § 2: twenty years’ imprisonment, a fine of $5,000,000 or twice the amount of gain or loss, whichever is greater, three years supervised release.
The court may also order that the defendant pay restitution, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Mr. Errico must be presumed innocent unless and until proven guilty.
Assistant U.S. Attorney Kyle F. Waldinger is prosecuting the case with the assistance of paralegal Beth Margen and legal assistant Stephanie Mitchell. The prosecution is the result of a sixteen-month joint investigation by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Monterey County District Attorney’s Office. The U.S. Attorney’s Office recognizes the substantial assistance provided by the Monterey County District Attorney’s Office in this case.
Houston Woman Found Guilty on Charges of Sex Trafficking of MinorsRead the Press Release
HOUSTON – A jury sitting in Houston has returned guilty verdicts against a Houston woman for conspiracy to commit sex trafficking of minors and sex trafficking of minors, announced U.S. Attorney Kenneth Magidson. The jury convicted Jazsmine Arielle Joseph, 27 , this morning following a week-long trial and approximately six hours of deliberation.
Co-defendant Xavier Cooper, 31, previously pleaded guilty.
The jury found Joseph engaged in a conspiracy with Cooper between October 2014 through March 2015, in which they engaged in conspiracy to entice, transport and harbor a minor female to engage in commercial sex. Joseph paid for and directed the posting of prostitution ads online. Joseph also rented hotel rooms where the minor engaged in commercial sex acts.
The jury heard that the the minor engaged in numerous commercial sex acts over the course of the conspiracy culminating with her recovery during a highly publicized sting operation on March 31, 2015. At trial, Joseph claimed she was “just helping a friend” in regard to her renting the hotel room and assisting with the posting of the prostitution ads. The jury also heard about and viewed text messages between Joseph and Cooper discussing the minor victim. The texts discussed making sure the victim was ready to receive customers and when customers were on their way.
Joseph attempted to convey her innocence by testifying she was trying to help the victim and protect her from Cooper. The jury was not convinced and found her guilty on both counts.
U.S. District Judge David Hittner presided over the trial and set sentencing for Nov. 28, 2016. At that time, Joseph faces up to life in prison. Previously released on bond, she was ordered into custody following the return of the verdicts today.
The Texas Department of Public Safety investigated with the assistance of the FBI. Assistant U.S. Attorneys Kimberly A. Leo and Sherri L. Zack prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Greenville Couple Pleads Guilty to Mail Theft ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Cary L. Wright, age 38, and Tanya A. Wright, age 29, both of Greenville, pled guilty yesterday in federal court in Greenville, to a conspiracy to commit mail theft, a violation of Title 18, United States Code, Section 371. United States District Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the defendants stole mail in and around Greenville County in an effort to obtain bank account numbers, routing numbers, and identification information. Once in possession of this material they would create counterfeit checks and negotiate them to obtain money for methamphetamine. On June 10, 2016, a search warrant was executed at the home of the Wrights in Greenville. Items recovered from the residence included, but was not limited to, numerous pieces of mail belonging to others, checks stolen from the mail, financial transaction cards, blank check stock, counterfeit checks, and a computer used for check counterfeiting.
Ms. Drake stated the maximum penalty defendants can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the Greenville City Police Department and the United States Postal Inspection Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Founders of Not for Profit Organization Convicted of Stealing United Nations Grant FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that following a five week trial, a federal jury has convicted Steve S. Jabar, of Tonawanda, NY, and Deborah Bowers, of Clarence, NY, of conspiracy to commit wire fraud, wire fraud and making false statements. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine."As established by today's verdicts, these defendants stole UN Funds intended to promote good works in a part of the world that desperately needed assistance, said U.S. Attorney Hochul. "The facts that the defendants took such money to pay personal bills makes these convictions particularly noteworthy."
IRS-Criminal Investigation Special Agent in Charge Shantelle P. Kitchen said: “At the very least, as citizens living in a charitable society, we expect that money intended for humanitarian causes actually helps the people it was intended to help and not those who divert it for their own purposes. A jury has now found that Mr. Jabar and Ms. Bowers took money that was supposed to promote women’s rights in Iraq, used it for their personal benefit, and lied to law enforcement in order to keep their crimes hidden. They are now held accountable.”
Assistant U.S. Attorneys Marie P. Grisanti and MaryEllen Kresse, who prosecuted the case, stated that the defendants founded a not for profit organization OKI, Opportunities for Kids International, Inc. In June 2004, Jabar and Bowers, through OKI, applied for and received a $500,000 grant from United Nations to create, maintain and operate a radio station in Iraq. The mission of the radio station was to further women’s rights issues in Iraq.
Within 24 hours of receiving a portion of the grant money, the defendants began to divert some of the funding for their own personal use. Jabar and Bowers diverted more than $65,000 for their own personal use. Jabar used some of the funding to pay off personal debts, including the payment of property taxes owed on his residence and business, as well as mortgage, utility, credit card payments and personal loan payments. Bowers also utilized some of the funding to pay personal credit card debt and make mortgage payments.
During the investigation, the defendants made false statement to investigator with the Internal Revenue Service in order to conceal with criminal behavior.
The verdict is the result of an investigation by the Internal Revenue Service, Criminal Investigations, under the direction of Shantelle Kitchen and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Jabar and Bowers will be sentenced on December 12, 2016 at 10:00 a.m. before U.S. District Judge Lawrence J. Vilardo who presided over the trial.
Fort Worth Man Sentenced to 16 Months in Federal Prison for Making a False Statement in a Bankruptcy CaseRead the Press Release
DALLAS — A Fort Worth man, Alton Alexis, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 16 months in federal prison, following his guilty plea in May 2016 to an Information charging one count of making a false statement under penalty of perjury, announced U.S. Attorney John Parker of the Northern District of Texas.
Alexis, 58, must surrender to the Bureau of Prisons on October 18, 2016.
According to documents filed in the case, in January 2010, Alexis, on behalf of borrower NSAA Investment Group, signed a promissory note with One World Bank for a loan of approximately $3,744,050 to finance the construction of a movie theatre restaurant. From early 2010 through early 2011, Alexis caused more than $2 million in loan proceeds to be disbursed from One World Bank to accounts in the name of BBA Construction Company and/or NSAA Investment Group. Alexis later submitted three fictitious invoices to One World Bank which caused at least $245,000 of those loan proceeds to be fraudulently diverted to bank accounts he controlled. Alexis then used these diverted loan proceeds to pay his personal debts.
In May 2011, Alexis made a material false statement in a bankruptcy case, In re Alton Alexis and Althea Lynette Alexis, filed in the Northern District of Texas, when he filed an Amended Statement of Financial Affairs that falsely represented he had truthfully disclosed all income received in the two years immediately preceding the commencement of the case. Instead of truthfully disclosing all income, Alexis fraudulently concealed the $245,000 of income, in the form of fraudulently diverted loan proceeds, he received in 2010.
According to testimony presented at today’s hearing, Alexis was involved in additional relevant conduct, to include: he concealed a prior felony conviction when he applied for the One World Bank loan; he fraudulently diverted a total of $480,423 of One World Bank loan proceeds and used these loan proceeds for his mortgage payments, college and private school tuition, property taxes, and trips to England and Mexico, among other things; and he submitted two false IRS forms to One World Bank to conceal his receipt of these loan proceeds for his personal use and benefit.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. This defendant is the 16th defendant convicted since August 2013 as part of that initiative.
Internal Revenue Service Criminal Investigation investigated the case. Assistant U.S. Attorney David Jarvis was in charge of the prosecution.
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Fort Smith, Arkansas Woman Found Guilty of Embezzlement and Theft from Tribal OrganizationRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that NICKOLLE DENISE DIXON, age 24, of Fort Smith Arkansas, was found guilty, by a federal jury, for EMBEZZLEMENT AND THEFT FROM INDIAN TRIBAL ORGANIZATIONS, in violation of Title 18, United States Code, Section 1163. The jury trial began with testimony on Tuesday, August 30, 2016 and concluded the same day with the guilty verdict.
Evidence at trial proved that from in or about January 2013 to on or about January 5, 2014, in the Eastern District of Oklahoma, the defendant, NIKOLLE DENISE DIXON, did steal, embezzle and knowingly and willfully convert to her own use monies in excess of $1,000.00 which had been entrusted to her custody and care as an employee of the Choctaw Nation of Oklahoma, an Indian tribal organization.
The investigation revealed that DIXON, an employee of the Choctaw Travel Plaza, was voiding out sales from customers who had paid for and left with their purchases and would then take the money for her own use.
The verdict obtained was the result of an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is no more than 5 years imprisonment, up to $250,000.00 or both.
Assistant United States Attorney Edward Snow represented the United States.
Former Thornton Woman Sentenced for Defrauding Health Care ClientsRead the Press Release
DENVER – Kimberly S. Cileno, age 47, formerly of Thornton, Colorado, was sentenced on August 29, 2016 by U.S. District Court Judge Raymond P. Moore to serve 24 months in federal prison for health care fraud, Acting United States Attorney Bob Troyer, James Purcell, Regional Director of the Kansas City Regional Office for the U.S. Department of Labor, Employee Benefits Security Administration and Abel Salinas, Special Agent in Charge of the Los Angeles Regional Office of the United States Department of Labor, Office of Inspector General announced. Following her prison sentence, Cileno was ordered to serve 3 years on supervised release. Cileno was also ordered by Judge Moore to pay $230,831.14 in restitution to the victims.
According to the facts contained in the indictment and plea agreement, Cileno was the owner and operator of EZ Flex, Inc. EZ Flex was a third-party administrator of cafeteria plans, also known as flexible spending plans.
Approximately 36 employers hired the defendant to administer the cafeteria plans they offered to a total of over 500 employees. The employers forwarded the designated deductions to the defendant, and the participants submitted claims for reimbursement of eligible expenses directly to the defendant. The defendant paid these claims by check, made direct deposits into the respective participant’s bank account, or provided reimbursement of claims through debit cards.
Amcheck, a payroll and human resources administrator located in Denver, recommended the services of EZ Flex to its clients looking to establish flexible spending plans for their employees. Amcheck itself contracted with EZ Flex for administration of its own flexible spending plan.
On September 28, 2012, Amcheck contacted the Department of Labor’s Employee Benefits Security Administration (EBSA), to report erratic claims administration by EZ Flex, Inc. Examples of this erratic behavior included reimbursements that were either paid in incorrect amounts or not paid at all, and a lack of responsiveness to clients via telephone or email.
Investigation revealed that between January 12, 2011, and December 10, 2012, the defendant spent over $230,000 in EZ Flex client’s funds on personal purchases, such as home renovations, a vacation, payments to Nutrisystem, and to a knife manufacturer. The defendant also withdrew cash from the flexible spending account, wrote checks from that account for home improvements, and transferred money from that account to a relative’s bank account.
“The people of Colorado should be heartened to hear that our elite prosecutors and Department of Labor investigators keep a close eye on these practices and ensure we punish this kind of rank theft,” said Acting U.S. Attorney Bob Troyer.
“This criminal action demonstrates the Labor Department’s resolve to vigorously enforce the laws to ensure that those who scheme, misappropriate, misrepresent and deceive employee benefit plans for their own financial gain are brought to justice,” said James Purcell, Regional Director of the Kansas City Regional Office for the U.S. Department of Labor, Employee Benefits Security Administration.
“Kimberly Cileno embezzled over $200,000 from participants’ health care funds. Cileno’s conduct deprived plan participants of money they set aside to pay for their health and dependent care expenses. We will continue to work with the Employee Benefits Security Administration and our other law enforcement partners to safeguard health care benefit programs for America’s workforce,” said Abel Salinas, Special Agent in Charge of the Los Angeles Regional Office of the United States Department of Labor, Office of Inspector General.
This case was investigated by agents with the Department of Labor, Employee Benefits Security Administration and Department of Labor, Office of Inspector General.
The case was prosecuted by Assistant United States Attorney Martha Paluch.
Former LCN Members Indicted in Murder of Club OwnerRead the Press Release
BOSTON – Frank “Cadillac” Salemme, a former boss of the New England Family of La Cosa Nostra (NELCN), and former NELCN associate Paul Weadick, were charged in an indictment unsealed today in connection with the 1993 murder of Steven A. DiSarro.
Francis P. Salemme, 83, and Paul Weadick, 61, of Burlington, were indicted on one count of murder of a federal witness. On Aug. 10, 2016, Salemme was arrested pursuant to a criminal complaint. Weadick was arrested this morning by the FBI and Massachusetts State Police and will appear in before U.S. District Court Magistrate Judge Donald. L. Cabell in Boston at 12:45 p.m.
The indictment alleges that, on or about May 10, 1993, Salemme and Weadick murdered DiSarro to prevent DiSarro from communicating with federal law enforcement officials about violations of federal laws by Salemme and others. Shortly after the murder, Salemme transported DiSarro’s body to Providence, R.I., where his associates arranged to have it buried in the vicinity of 715 Branch Avenue. In March 2016, DiSarro’s remains were recovered by federal authorities behind a mill in Providence, R.I.
DiSarro was murdered after his relationship with Salemme and Salemme’s son, Francis P. Salemme, Jr., became the subject of federal investigation. Part of that investigation revolved around the operation of a South Boston night club known as “The Channel.” Weadick was a close associate of Salemme, Jr.
Salemme was the boss of the New England La Cosa Nostra during the early 1990’s until his indictment for racketeering in 1995 and conviction in 1999. He was subsequently convicted of obstruction of justice in 2008 for lying to federal authorities about the murder of DiSarro.
The charge of murder of a federal witness provides for a sentence of death or life in prison, five years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz for the District of Massachusetts; United States Attorney Peter F. Neronha for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Richard D. McKeon, Superintendent of the Massachusetts State Police; and Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Chief Michael Kent of the Burlington Police Department made the announcement today. Assistance was provided by the Norfolk County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys Fred M. Wyshak, Jr. of Ortiz’s Office and William J. Ferland of Neronha’s Office.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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Former LCN Members Indicted in Connection with Murder of South Boston Club OwnerRead the Press Release
BOSTON – Frank “Cadillac” Salemme, a former boss of the New England Family of La Cosa Nostra (NELCN), and former NELCN associate Paul Weadick, were charged in an indictment unsealed today in connection with the 1993 murder of Steven A. DiSarro.
Francis P. Salemme, 83, and Paul Weadick, 61, of Burlington, were indicted on one count of murder of a federal witness. On Aug. 10, 2016, Salemme was arrested pursuant to a criminal complaint. Weadick was arrested this morning and will appear before U.S. District Court Magistrate Judge Donald. L. Cabell in Boston at 12:45 p.m.
The indictment alleges that, on or about May 10, 1993, Salemme and Weadick murdered DiSarro to prevent DiSarro from communicating with federal law enforcement officials about violations of federal laws by Salemme and others. Shortly after the murder, Salemme transported DiSarro’s body to Providence, R.I., where his associates arranged to have it buried in the vicinity of 715 Branch Avenue. In March 2016, DiSarro’s remains were recovered by federal authorities behind a mill in Providence, R.I.
DiSarro was murdered after his relationship with Salemme and Salemme’s son, Francis P. Salemme, Jr., became the subject of federal investigation. Part of that investigation revolved around the operation of a South Boston night club known as “The Channel.” Weadick was a close associate of Salemme, Jr.
Salemme was the boss of the New England La Cosa Nostra during the early 1990’s until his indictment for racketeering in 1995 and conviction in 1999. He was subsequently convicted of obstruction of justice in 2008 for lying to federal authorities about the murder of DiSarro.
The charge of murder of a federal witness provides for a sentence of death or life in prison, five years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz for the District of Massachusetts; United States Attorney Peter F. Neronha for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Richard D. McKeon, Superintendent of the Massachusetts State Police; Steven G. O’Donnell, Superintendent of the Rhode Island State Police; and Chief Michael Kent of the Burlington Police Department, made the announcement today. Assistance was provided by the Norfolk County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys Fred M. Wyshak, Jr. of Ortiz’s Office and William J. Ferland of Neronha’s Office.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Executive of Stamford Company Sentenced to Prison for Insider TradingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DENNIS W. HAMILTON, 46, of Norwalk, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to eight months of imprisonment, followed by one year of supervised release, for insider trading. Judge Thompson also
According to court documents and statements made in court, HAMILTON was employed as Vice President of Tax at Harman International Industries, Incorporated (“Harman”) in Stamford. Harman is a publicly-held company whose shares trade on the New York Stock Exchange under the ticker symbol “HAR.” Beginning in 2009, Harman allowed directors, members of its executive committee and certain other insiders to buy or sell Harman securities in the public market only during a declared trading window period. In August 2013, HAMILTON was included on Harman’s insider trading list, and he was subsequently notified when the window in which he could engage in open market purchases of Harman securities was open, and that all trades must be cleared in advance with Harman’s general counsel. On September 27, 2013, HAMILTON and other Harman employees were advised via email that the “window period” within which they may engage in open market purchases or sales of Harman securities had closed.
In October 2013, HAMILTON received material, non-public information about Harman’s financial results for the first quarter for the fiscal year ending 2014, including drafts of Harman’s Form 10-Q filing and an earnings press release. He and other Harman executives also participated in a conference call with Harman’s Audit Committee, during which a draft resolution declaring a quarterly cash dividend on Harman’s common stock was discussed.
On October 30, 2013, HAMILTON, an insider in possession of material, non-public information, purchased 17,000 shares of HAR for between $72.07 and $72.67 per share, through a Charles Schwab account in the name of HAMILTON and his wife. On October 30, 2013, the closing price of HAR was $72.02. On October 31, 2013, Harman announced positive first quarter earnings for fiscal year 2014. On that date, the closing price of HAR was $81.02.
Between October 31, 2013 and November 5, 2013, through his Charles Schwab account, HAMILTON wrote at least 200 covered calls on HAR at a strike price of $70.00 with an expiration date of November 16, 2013 for a premium of $203,366. Through the use of some of these covered calls, HAMILTON realized a gain of $131,958 on the 17,000 shares of HAR he had purchased on October 30, 2013.
HAMILTON was arrested on a criminal complaint on February 5, 2016. On March 28, 2016, he waived his right to indictment and pleaded guilty to one count of securities fraud.
In a parallel action, the Securities and Exchange Commission has filed related civil charges against HAMILTON. (Securities and Exchange Commission v. Dennis Wayne Hamilton, 3:16-cv-00192)
This investigation was conducted by the Federal Bureau of Investigation with valuable assistance from Harman International Industries. The case was prosecuted by Assistant U.S. Attorney Heather Cherry.
Former DPW Employee Sentenced to Federal Prison for Two Separate Schemes to Defraud the City of BaltimoreRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Charles Dennis Bolden, Sr., age 69, of Baltimore, a former employee at the Quarantine Road Landfill (Landfill), today to 15 months in federal prison, followed by three years of supervised release for conspiring to commit two separate criminal schemes: one in which Department of Public Works (DPW) employees sought and accepted cash payments from commercial haulers in return for allowing the haulers to deposit trash at the Landfill without paying the required disposal fees (extortion scheme); and a second scheme in which DPW employees stole scrap metal from the Landfill for personal gain (the junking scheme).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
Extortion Scheme
Baltimore City residents can deposit small amounts of trash and/or recyclables in dumpsters at the Convenience Center located near the main entrance of the Landfill, free of charge. Individuals or companies commercially hauling trash that have registered their vehicles with Baltimore City and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located within the Landfill. Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill. DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, which is recorded on a computerized point-of-sale system. The scale house operators reweigh each truck as it leaves the Landfill. The net weight of the deposited trash and the required disposal fee is then calculated and printed on a receipt that is handed to the driver.
According to the statement of facts presented by the government to the court, Bolden, who was employed by DPW as a laborer at the Landfill, and other DPW employees sought and accepted cash payments from commercial haulers in return for allowing the commercial haulers to deposit trash at the Landfill without paying the required disposal fees.
On August 28, 2013, an FBI confidential source (CS) went to the Convenience Center and spoke with Bolden about the cost of dumping a truckload of trash at the Landfill. Bolden told the CS that he and his “girls” at the scale house would have to be paid a “fair” amount of money in order for the CS to avoid paying the required disposal fee assessed at the scale house. When the CS agreed to make the payment, Bolden said that the scale house “girl gonna wave you thru.”
The next day, Latonya Drinkard, a scale house operator, waved the CS past the scale house and allowed him to dump his truckload of trash without paying the required fee. Afterwards, the CS paid Bolden $70 in cash, which Bolden explained was a lot less than what he and the scale house “girls” have charged others. On September 12, 2013 and October 9, 2013, Drinkard allowed the CS to dump two more truckloads of trash without paying the required disposal fee. Bolden charged the CS $200 for each truckload.
During a recorded conversation on October 17, 2013, Drinkard asked the CS how much Bolden was charging the CS. Upon learning that it was $200 per trip, the scale house operator agreed to waive the disposal fee for less money without Bolden’s involvement and stated, “Just call and let me know whenever you want to come in and I got you.”
Illegal Junking Scheme
In addition to the revenue generated by the collection of disposal fees, Baltimore City’s waste management system generates revenue by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities, including household appliances, steel cables, copper wires, car parts, computer parts, door and window frames. The City awards contracts to private salvage companies to purchase and remove such scrap metal from its trash collection facilities.
DPW employees at the Landfill and other trash collection sites are required to segregate the recyclable scrap metal from general refuse and place it in separate bins provided by the salvage companies. The companies regularly pick up the scrap metal, weigh it and send a tonnage report to the City. Based on predetermined prices per ton, the City sends an invoice to the companies requesting payment for the value of the scrap metal the companies removed during a given period of time. Salvaging by employees, also referred to as “junking,” was strictly prohibited and employees were put on notice that any salvaging of metal constituted theft of City property.
According to the statement of facts presented by the government to the court, from 2005 to May 2015, Bolden and other Landfill employees falsely represented to the DPW that they were performing the jobs for which they were hired when, in fact, they used their paid positions during work hours to unlawfully collect, remove and sell scrap metal for personal gain.
For most of the period, Bolden oversaw operations at the Convenience Center where residential trash was dumped. Video recordings documented Bolden’s use of a front-end loader to separate salvageable metal from the general trash bins. After setting aside a sufficient amount of such metal, Bolden would use his cell phone to contact other laborers, including Jarrod Hazelton and Michael Bennett, to pick up what he had collected. Video footage showed Bolden helping to load the salvageable metals onto other employees’ pick-up trucks as well as his own. Those employees, in turn, would sell the metal to salvage companies and share the proceeds of the sales with Bolden. Sometimes the other laborers would meet with Bolden after hours to pick up his stolen metal and pay him.
The scrap metal that Bolden, Hazelton, Bennett and others stole and sold to private salvage companies resulted in a loss of revenue to the City totaling hundreds of thousands of dollars.
In addition, video footage established that Bolden and other employees spent a significant part of almost every workday coordinating the search and collection of salvageable metals to steal. Nonetheless, Bolden and other employees regularly signed and submitted daily time and attendance sheets falsely reflecting that they had fulfilled the hourly requirements of their respective paid positions when, in fact, they were routinely engaged in unauthorized “junking.” As a result, Bolden received hourly wages every pay period for work he did not perform on behalf of the City. More specifically, for calendar years 2013 and 2014, Bolden stole and conspired to steal salvageable metals and unearned wages from Baltimore City totaling more than $5,000 per year.
Former DPW employees William Charles Nemec, Sr., age 56; Tamara Oliver Washington age 56; and Michael Theodore Bennett, age 47, all of Baltimore, pleaded guilty to their roles in the scheme and were sentenced to 78 months, 18 months, and 46 months in prison, respectively. Judge Garbis also entered orders requiring Nemec and Washington to pay restitution of $6 million. Jarrod Terrell Hazelton, age 33, of Parkville, Maryland, also pleaded guilty and was sentenced to two years in prison. Judge Garbis ordered Bennett and Hazelton each to pay restitution of $400,000. Latonya Drinkard, age 39, of Baltimore, also pleaded guilty and is scheduled to be sentenced on October 13, 2016.
Commercial trash hauler, John Howard Brady, age 74, was convicted by a federal jury in the bribery scheme, and sentenced to three years in prison. The five remaining commercial trash haulers pleaded guilty to their participation in the bribery scheme. Quentin Turgot Glenn, age 50, of Hanover, Maryland, who owned and operated Glenn Services, LLC, a trash hauling business, was sentenced to three years in prison. Jessie Lee Wilson, Jr., age 41, of Baltimore, who was employed by Glenn Services as a truck driver, was sentenced to three years of probation, with the first year to be spent in community confinement. Adam Williams, Jr., age 53, of Randallstown, was sentenced to one year in prison; and Larry Lowry, age 61, of Orchard Beach, Maryland, to 30 months in prison. Judge Garbis also ordered that Glenn pay restitution of $306,000; Williams pay restitution of $900,000; and Lowry pay restitution of $180,000. Mustafa Sharif, age 64, of Baltimore, awaits sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Martin J. Clarke and Leo J. Wise, who are prosecuting the cases.
Former Brockport Fireman Sentenced for Mail Fraud, Forging Treasury Checks and Obstruction of JusticeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Steven Ray, 51 of Brockport, NY, who was convicted of mail fraud, forging treasury checks, and obstructing an official proceeding, was sentenced to 84 months in prison by U.S. District Court Judge David G. Larimer. The defendant was also ordered to pay $309,511 in restitution to the United States.Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that federal law enforcement agents first encountered Ray related to his role in a mail fraud scheme involving stolen United States Treasury checks. In that case, Ray cashed more than 120 forged checks worth more than $400,000 over an 18-month period of time. The checks were stolen from residents in the New York City Area as well as from people in other parts of the United States. The stolen checks were mailed to Ray via the United States Postal Service at his Brockport home.
During that investigation, federal agents identified at least 13 area bank accounts controlled by the defendant under various names, including his own as well as a company he owned named Steray of Rochester. Ray took the stolen checks he received by mail and deposited them across multiple accounts. Many of the checks belonged to people who received Social Security payments, tax refunds, and other money drawn from the United States Treasury to help the intended recipients. As a result of the defendant’s scheme to defraud, Ray obtained more than $400,000, however, the United States was able to recover almost $100,000 from the banks during the investigation.
While out of custody awaiting sentencing on that case, the defendant filed a sentencing statement with the Court in May 2015. Among the items submitted to the Court in support of a downward departure sentence were several claims about Ray’s alleged heroic service as a Brockport Fireman. Specifically, the defendant claimed that he dove into a Brockport swimming pool and pulled a three-year-old unconscious child from the water and then performed CPR until help arrived. Ray also claimed that he was the first on the scene of an incident at SUNY Brockport in which a student fell down a stairwell. In that incident, the defendant claimed to have performed an emergency tracheotomy on the victim using only his penknife. However, the facts showed that his statements were all lies, and that Ray actually did none of these things.
In that same request for a downward departure sentence, the defendant also submitted a letter from a local resident attesting to Ray’s character and truthfulness. However, it turned out the letter was actually a forgery. Federal agents met with the witness who confirmed that he never wrote a letter in support of Ray, did not say the things in the letter, and pointed out that many of the things in the letter, including the spelling of the witness’ own name was wrong. Based on this, the Government filed a notice with the Court pointing out that the defendant submitted false material to the Court for sentencing. Ray received a copy of that statement the day it was filed.
Within hours of receiving that statement, the defendant went to the home of that witness, who is wheelchair bound, and coerced and intimidated him into submitting a false affidavit saying that he had actually written the letter to the Court. Ray did this late at night while the witness was already in bed. The defendant then had the false affidavit notarized and submitted to the Court.
Ray was an Officer with the Brockport Fire Department for the entire time he was engaged in the fraudulent scheme to defraud the United States. He was fired in March of 2015 following his felony plea to mail fraud but retained his Fire Department Badge and ID, which he continued to use after his termination.
The sentencing is the culmination of an investigation on the part of Inspectors from the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector In Charge of the Boston Division, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the Direction of Special Agent in Charge of the New York Field Office, Shantelle P. Kitchen.
Federal Jury Finds Man Guilty of Conspiracy and Possession with Intent to Distribute Three Kilograms of CocaineRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that Wednesday, a federal jury in New Bern found RAMON SANMARTIN, JR. guilty of conspiracy to possess and possession with the intent to distribute three kilograms of cocaine.
SANMARTIN was named in an Indictment originally filed on November 3, 2015. SANMARTIN was arrested on August 26, 2015 when he picked up a package sent to him via the United States Postal Service from San Juan, Puerto Rico to a Days Inn hotel in Morrisville, NC. The package was intercepted by Inspectors with the United States Postal Inspection Service, who were able to open the package and find three bricks of cocaine, totaling approximately three kilograms.
At sentencing, SANMARTIN faces a mandatory minimum sentence of 5 years imprisonment and a maximum of 40 years imprisonment.
Investigation of this case was conducted by the United States Postal Inspection Service, the Wake County Sheriff’s Office, and the Raleigh Police Department. Assistant United States Attorneys Laura Howard and Edward Gray represented the government.
East Durham Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Gregory Kurzajczyk, age 69, of East Durham, New York, pled guilty today to distributing and receiving child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge for Immigration and Customs Enforcement, Homeland Security Investigations (HSI).
Kurzajczyk faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of at least 5 years and up to life, when he is sentenced on January 4, 2017 by United States District Judge Mae A. D’Agostino. 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. Kurzajczyk would also have to register as a sex offender upon his release from prison.
As part of his plea, Kurzajczyk admitted that between July 16, 2014 and January 19, 2015, an undercover law enforcement officer using an Internet file-sharing application downloaded child pornography images and videos from Kurzajczyk’s computer. Kurzajczyk also admitted to using the file-sharing application to download child pornography.
This case was investigated by Homeland Security Investigations (HSI) and the Colonie Police Department, with the assistance of the U.S. Secret Service, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Eagle Butte Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on August 29, 2016, by U.S. District Judge Roberto A. Lange.
Carlin Brings Horse, Jr., age 38, was sentenced to 6 months in custody, 6 months in home confinement, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Brings Horse was indicted by a federal grand jury on November 10, 2015. He pled guilty on May 31, 2016.
The conviction stemmed from an incident in the late evening on June 21, 2015, when Carlin Brings Horse, Jr., went to the Indian Health Services emergency room with his mom and sister, after taking “new meth” claiming he was hallucinating. He was checked out medically and offered a shot of Ativan but refused it, as well as a transfer to behavioral health. Brings Horse was then released from the emergency room. A few hours later, in the early morning hours of June 22, 2015, Brings Horse and his family arrived back at the emergency room, claiming his chest hurt and his heart was racing again from the “new meth.” Brings Horse also admitted to drinking alcohol and using marijuana that night. He again refused treatment.
Law enforcement arrived at the emergency room and took Brings Horse into tribal protective custody. Once at the detention center, Brings Horse was booked into a holding cell with another inmate.
Brings Horse began to splash urine water on the other inmate in his cell. Correctional officers entered the cell and told Brings Horse to stop splashing urine water on his cellmate. Brings Horse refused to follow commands and instead splashed urine water on the officers. He was directed to stop and get on the ground. Brings Horse refused and got into a fighting stance. He was told again to get on the ground but refused. The officers approached Brings Horse and a physical altercation began. Brings Horse swung at and hit both officers. One of the officer was able to get Brings Horse around the waist and partially over his shoulder. Brings Horse then bit the officer twice on the back through his shirt. Also during the struggle, the second officer was kicked in the groin area and sustained scrapes to his hand. The officers were finally able to secure Brings Horse in leg and wrist restrains.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Brings Horse was immediately turned over to the custody of the U.S. Marshals Service.
District Man Pleads Guilty to Series of Sexual Attacks Against Women in Southeast WashingtonRead the Press Release
WASHINGTON - Darius Nelson, 28, of Washington, D.C., pled guilty today to charges involving a series of sexual assaults in Southeast Washington, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Nelson pled guilty in the Superior Court of the District of Columbia to three counts of first-degree sexual abuse with aggravating circumstances. The plea, which is contingent upon the Court’s approval, calls for a prison term of 40 years. This term will run consecutively to the 22-year sentence he is currently serving for sexual assault convictions previously prosecuted by this office. Upon release, Nelson would be required to register as a sex offender for the remainder of his life. The Honorable José M. López scheduled sentencing for Nov. 18, 2016.
In the earlier case, Nelson pled guilty in 2014 to sexually assaulting two women in separate attacks that took place in Southeast Washington in October of 2013. Today, Nelson pled guilty to assaulting three other women in separate incidents in 2012 and 2013.
During today’s proceedings, Nelson admitted that late in the evening on April 11, 2012, he was walking with the first victim when he put her into a chokehold and dragged her to the rear of a residence in the 1600 block of 21st Place SE. He threw her to the ground, punched her in the face, and sexually assaulted her. After the sexual assault, he again physically assaulted her.
Nelson further admitted that in the early morning hours of Aug. 18, 2012, the second victim was walking on Minnesota Avenue SE, near Pennsylvania Avenue, when he started a conversation with her. During that conversation, Nelson hit her in the face and put what he told the victim was a knife to her back. He then forced her to the rear of a gas station where he sexually assaulted her. Afterward, he ordered her to stay on the ground and not get up, and he fled.
Finally, Nelson admitted that late in the evening on Sept. 18, 2013, he grabbed the third victim from behind in a chokehold and forced her into an alley in the rear of the 2200 block of Nicholson Street SE. In the alley, he robbed her, then pushed her to the ground and sexually assaulted her. When finished, he told her to stay down and remain still, and he fled the scene.
The victims were all taken to Washington Hospital Center, where they each received a sexual assault examination. Swabs taken from two of the victims during their examinations were sent to Bode Technology for DNA testing. A male DNA profile found on the swabs was entered into the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes that is used as an investigative tool. Nelson was identified as a suspect through a CODIS search and DNA “cold hit.” His DNA profile had been loaded into the CODIS database following his 2014 convictions for sexually assaulting the other two women. During an interview with detectives from the MPD’s Sexual Assault Unit in November 2014, Nelson admitted to committing his crimes against the three women in the case that led to the plea today.
In announcing the plea, U.S. Attorney Phillips and Chief Lanier commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Unit. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson and Paralegal Specialists Tierra Nanches, Angelina Slagle, and Wanda Trice. Finally, they acknowledged the efforts of Assistant U.S. Attorneys Julianne Johnston, Jodi Lazarus, and Lindsay Suttenberg, who prosecuted the case.
Detroit-Area Drug Trafficking Organization Charged for Overdose Deaths from FentanylRead the Press Release
A superseding indictment was returned yesterday adding new criminal charges against 13 Detroit-area men accused of conspiring to distribute heroin, crack cocaine and other drugs, U.S. Attorney Barbara L. McQuade announced today. Nine of the defendants were charged with distributing fentanyl and heroin resulting in overdose death and serious bodily injury.
Joining McQuade in the announcement were Special Agent in Charge Timothy J. Plancon, Drug Enforcement Administration, Detroit Division, and Police Commissioner Jere Green, Warren Police Department and Mayor James R. Fouts, City of Warren.
The drug-trafficking organization, known as the ”Polo” organization, became the focus of investigation beginning in March, when heroin distributed by the group was connected to a spike in overdose deaths.
Charged were Demarco Tempo, 27 (also known as “Polo”) of Warren; Haratio Heard, 25; Juwan Allen, 22; Darius Gordon, 25; Alvin Coates, 21; Javon Brown, 25; Greg Howard, 20; Dennis Jones, 21; Amacio Alexander, 39; Marcus Gilbert, 22; Kenneth Sadler, 28; Darreyl Coneal, 28; and Randy Stewart, 25, all from Detroit. All were charged with conspiracy to distribute and to possess with intent to distribute controlled substances, including heroin, crack cocaine, powder cocaine and fentanyl. Defendants Tempo, Heard, Allen, Gordon, Coates, Brown, Howard, Jones and Gilbert were charged in the conspiracy with distribution of heroin and fentanyl where death and serious bodily harm occurred to multiple victims. Some of the defendants were also charged with substantive counts of drug distribution. Tempo was charged with distribution of heroin and fentanyl resulting in the death of one victim. Tempo, Gordon and Coats were also charged with distributions of heroin and fentanyl resulting in serious bodily injury to three other victims. The law defines serious bodily injury as an injury that involves a substantial risk of death. The charges of distribution causing death or serious bodily injury, or the conspiracy to commit the offence each carry a mandatory minimum penalty of 20 years’ imprisonment.
Tempo, Heard, Allen, Gordon, Brown, Howard, Jones, and Alexander were also charged with conspiring to possess firearms in furtherance of the drug-trafficking conspiracy. Sadler was charged with being a felon in possession of a firearm.
"Overdose deaths from heroin and fentanyl are becoming a national epidemic, including here in Michigan, as people addicted to prescription pills become desperate to feed their addictions," McQuade said. "Law enforcement agencies are banding together to prosecute traffickers who are exploiting these addictions and risking lives for profit."
DEA Special Agent in Charge Plancon said, “It is a priority of DEA to identify and investigate those who distribute drugs that result in overdose and death. The charges announced today should make it clear to all drug dealers that they will face consequences, for the harm that they inflict on the user and on society. The Warren Police Department deserves significant credit for devoting the time and effort needed to successfully investigate and bring these individuals to prosecution.
Mayor Fouts stated, “I would like to highly commend both the Warren Police Special Investigations Unit and the DEA for their hard work and dedication in this investigation which led to the grand jury indictment charging the leader of a drug trafficking organization with the death and overdoses of four victims. This initiative was started by the Warren Police from my request to Commissioner Jere Green to institute a massive drug bust against this drug trafficking organization following the OD deaths of seven Warren residents earlier this year.”
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This investigation was led by the Warren Police Department’s Special Investigations Division, in partnership with the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Benjamin Coats.
Des Arc Couple Pleads Guilty to Bank Fraud and Money LaunderingRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, Tracey D. Montaño, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation Division, and Wanda C. Merritt, Field Office Director of the U.S. Department of Housing and Urban Development (HUD) announced today that Rhonda Williams, 50, and her husband, Gary Williams, 59, both of Des Arc, Arkansas, appeared before Chief United States District Judge Brian S. Miller and pleaded guilty to a 2-count felony information, charging them with conspiracy to commit bank fraud and money laundering. In addition, they have also agreed to forfeit the proceeds of the fraud.
Rhonda Williams was the Executive Director of the Cotton Plant Housing Authority. Gary Williams was the Housing Authority’s Maintenance Supervisor. The Housing Authority received its annual operating funds from HUD in the form of an annual distribution into its account at Signature Bank of Arkansas.
From January 31, 2001 to December 31, 2014, the Williams conspired to execute a scheme to obtain money and property under the custody and control of Signature Bank of Arkansas by means of false and fraudulent pretenses. As part of the scheme to defraud, they made material misrepresentations concerning the reasons for the payment of money intended for use by the Housing Authority, solicited and accepted bribes and kickbacks from Housing Authority contractors, caused the Housing Authority to pay their personal expenses on their Housing Authority credit cards, and took Housing Authority equipment and materials and used them in the construction of their personal residence.
As part of their plea agreements, the defendants agreed that they received more than $52,000.00 from this conspiracy. The full extent of the loss will be litigated at sentencing. The Court has not yet set a date for the sentencing hearing.
This investigation was conducted by IRS-Criminal Investigation Division and the U.S. Department of Housing and Urban Development. Assistant United States Attorney Cameron McCree prosecuted the case for the United States.
Coffee County Methamphetamine Trafficker SentencedRead the Press Release
G. F. Peterman, III, United States Attorney for the Middle District of Georgia, announces that Jose Alberto Sandoval Moya, of Douglas, Georgia was sentenced to serve 240 months in Federal prison for conspiracy to possess with the intent to distribute methamphetamine weighing more than 50 grams. The sentence was handed down by Senior United States District Judge W. Louis Sands, Sr. on September 1, 2016 in Albany.
Mr. Moya was convicted of the charge on April 8, 2016 following a five-day jury trial. Evidence presented during trial showed that Mr. Moya conspired together with Raymond Riviera Cortez, also of Douglas, Georgia, and Corrinne Gillis, of Fitzgerald, Georgia, to possess with the intent to distribute methamphetamine. The evidence further revealed that Mr. Moya arranged for Ms. Gillis to travel to Mexico on three occasions to bring methamphetamine to South Georgia for distribution. The conspiracy concluded when Ms. Gillis was arrested at the US/Mexico Border at the Matamoros, Mexico/Brownsville, Texas crossing. When arrested, Ms. Gillis was in possession of over 17 kilograms (over 43 pounds) of 100% pure methamphetamine, the largest seizure ever made at that point of entry into this country. The drugs had been hidden in the tires of the vehicle in order to smuggle it past authorities at the border. Each tire contained between 10 and 12 pounds of methamphetamine.
“There is no way to determine how many lives would have been ruined or lost had Mr. Moya succeeded in his scheme to smuggle this record setting load of methamphetamine into this country from Mexico. He earned and richly deserves the sentence imposed upon him today,” said United States Attorney Peterman.
The case was investigated by the Georgia Bureau of Investigation, Sylvester Regional Office, the Sheriff’s Offices of Ben Hill and Coffee County, Georgia and by Department of Homeland Security. Assistant United States Attorney Leah McEwen prosecuted on behalf of the Government.
Inquiries regarding the case should be directed to Pamela Lightsey, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2603.
Cedar Rapids Recidivist Felon Sentenced to Maximum Prison TermRead the Press Release
A Cedar Rapids man with an extensive criminal history who fired shots into the air in a residential neighborhood using a stolen handgun was sentenced yesterday to 10 years in federal prison.
Tiamo Blackcloud, 38, from Cedar Rapids, received the prison term after a January 25, 2016, guilty plea to being a prohibited person in possession of a firearm and ammunition. He was prohibited from possessing the firearm and ammunition because he was a felon.
At the guilty plea hearing, Blackcloud admitted to firing a weapon into the air in a Cedar Rapids neighborhood on August 18, 2015. He had been drinking at the time. Blackcloud’s criminal history included two felony convictions and, in total, he had 56 criminal convictions. His criminal activities began at age 18 and continued up to his arrest last August, and included numerous assaultive encounters with both women and the police. The sentencing judge ordered a non-guideline sentence to the statutory maximum sentence based on his criminal history, risk to the public and nature and circumstances of the offense.
Blackcloud was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. Blackcloud must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Steve Young and investigated by the CRPD and the FBI’s Safe Streets Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-00099.
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Brewer Man Pleads Guilty to Illegally Possessing FirearmsRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Walter Botelho, 52, of Brewer, Maine pleaded guilty today in U.S. District Court to being a felon in possession of firearms.
According to court records, on May 2, 2016, law enforcement officers executed a search warrant at the defendant’s Brewer residence and recovered, among other things, two rifles and two shotguns. The defendant was prohibited from possessing firearms because of prior felony convictions for first degree manslaughter (New York), receiving stolen goods (Rhode Island), and assault and battery (Massachusetts).
Botelho faces up to 10 years in prison, three years of supervised release and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Brewer Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Bar Owner Sentenced for Tax EvasionRead the Press Release
An Atkins man who committed tax evasion by not reporting all his income from the businesses he owned was sentenced earlier this week to 18 months in federal prison.
Bradley Tischer, age 51, from Atkins, IA, received the prison term after a guilty plea was entered for one count of tax evasion in March 2016.
In a plea agreement, Tischer admitted he owned and operated three bars and grills known as Brogan’s, Miguel’s and Bobby T’s. He also had a corporation known as JGT, Inc., which was used to operate Miguel’s and Bobby T’s. Tischer underpaid his taxes from 2009-2013 and the resulting tax loss was over $250,000.00. Each tax return contained a written declaration that it was signed under the penalty of perjury. Tischer knew he had not reported all of his income.
Tischer was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Tischer was sentenced to 18 months’ imprisonment and fined $5,000.00. A special assessment of $100.00 was imposed, and he was ordered to make $2,961.88 in restitution to the United States for costs of prosecution. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Tischer was released on the bond previously set and is to surrender to the United States Marshal on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Matthew J. Cole and was investigated by Internal Revenue Service-Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-cr-16.
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Aryan Brotherhood of Texas Members/Associates Convicted in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Following a four-day trial before U.S. District Judge John McBryde, late yesterday a federal jury convicted seven defendants, including members and associates of the Aryan Brotherhood of Texas prison gang, for their roles in a methamphetamine distribution conspiracy that operated in north Texas from approximately January 2014 to April 2016. In addition, between April and August 2016, 80 defendants charged in drug conspiracy cases related to this one have pleaded guilty. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Each of the below-listed defendants was convicted on one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine.
Charles Ben Bounds, a/k/a “Pretty Boy,” 31, of Fort Worth, Texas
Billy Fred Gentry, a/k/a “Fred Gentry,” 30, of Fort Worth, Texas
Kevin Kyle Killough, a/k/a “Kilo,” 29, of Fort Worth, Texas
Billy Ray Skaggs, 48, of Brownwood, Texas
Michael Clay Heaslet, a/k/a “Whisper,” 38, of Fort Worth, Texas
Nicole Cynthia Herrera, a/k/a “Nikki Single,” 21, of Dallas, Texas
Trae Short, a/k/a “Twig,” 31, of Dallas, TexasOne defendant, James Marcus Laxson, was acquitted.
The penalty for the offense is not less than five years or more than 40 years in federal prison and a $5 million fine. The defendants are scheduled be sentenced by Judge McBryde in February 2017.
The government presented evidence at trial that some of the defendants were members, including ranking members, or associates, of the Aryan Brotherhood of Texas. The government presented further evidence identifying the defendants and the role of each in the conspiracy. Text messages from some defendants’ phones, and recordings of phone calls from jail were introduced that detailed their methamphetamine trafficking.
The Drug Enforcement Administration, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Fort Worth Police Department investigated. Assistant U.S. Attorneys Shawn Smith and Frank Gatto are prosecuting the case.
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Anderson Women Plead Guilty to Mail Theft ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Karissa L. Miller, age 25, and Ruby A. Adams, age 54, both of Anderson, pled guilty yesterday in federal court in Greenville, to a conspiracy to commit mail theft, a violation of Title 18, United States Code, Section 371. United States District Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the defendants stole mail in and around Anderson County in an effort to obtain blank checks that are often sent to bank customers along with their statements. Once in possession of the checks, they would open bank accounts, forge the checks, and deposit the checks into the accounts. Defendants would withdraw money from the accounts before their fraud was discovered.
Ms. Drake stated the maximum penalty defendants can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the Anderson Police Department and the United States Postal Inspection Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Alleged Getaway Driver in Robbery of Hawthorne, New Jersey, TD Bank Charged in Federal CourtRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man is scheduled to appear in federal court today in connection with the robbery of a TD Bank in Hawthorne, New Jersey, on Feb. 17, 2016, U.S. Attorney Paul J. Fishman announced.
Alejandro Ortiz, 20, of Haskell, New Jersey, is charged by complaint with one count of bank robbery. He is expected to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.
Robert Somers 44, of Little Falls, New Jersey, is charged in the same complaint. He was arrested and appeared in court before U.S. Magistrate Judge Leda Dunn Wettre on Aug. 26, 2016. He remains in federal custody.
According to the complaint:
On Feb.17, 2016, the TD Bank was robbed by a man, later identified as Somers, who was wearing a hooded sweatshirt, hat with red stripe, dark pants, and gloves. Somers was also holding a newspaper, which covered the bottom portion of his face. After Somers entered the bank, he allegedly handed a teller a note that read, in sum and substance, “this is a hold up,” and made similar verbal statements.
The teller handed Somers cash. Somers demanded more money and a second teller handed him additional cash. Afterwards, Somers fled the bank in a car allegedly driven by Ortiz. Later that evening, Ortiz was pulled over by law enforcement and arrested. The clothes that Somers had worn during the robbery were recovered from Ortiz’s vehicle.
The charge of bank robbery carries a maximum penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited Special Agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Hawthorne Police Department, under the direction of Chief Richard McAuliffe; the Pennsylvania State Police, under the direction of Colonel Tyree C. Blocker; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes with the investigation leading to the charges.
The charge and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Karen D. Stringer of the U.S. Attorney’s Office in Newark.
Alexandria Man Sentenced to Prison for Health Care Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Delvin Macarthy, aka “Brian Macarthy,” 37, of Alexandria, was sentenced today to 46 months in prison for conspiracy to commit health care fraud. Macarthy was also sentenced to three years of supervised release and ordered to pay $734,458 in restitution.
Macarthy pleaded guilty on July 6. According to court documents, Macarthy established Individual Care Home Health Services, Inc. (Individual Care), which he owned together with his wife, Beatrice Macarthy. Individual Care purported to provide home health care services to individuals in the Alexandria area. In or around January 2006, Individual Care was terminated from its contract to provide home health care services to C.J., a totally disabled individual. Individual Care has not provided any care to C.J. since its termination. Nevertheless, from approximately March 2009 through March 2014, Delvin and Beatrice Macarthy, d/b/a Individual Care, submitted invoices to health care providers for $847,632 in home health care services, purportedly for patient C.J., that were never actually provided by Individual Care. Delvin Macarthy was the leader and organizer of the fraud scheme. His wife Beatrice has separately pleaded guilty to conspiracy to commit health care fraud and will be sentenced in a related case on September 23.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Grace L. Hill prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-151.
Thursday 1 September 2016
“YGz” Gang Member Pleads Guilty to Attempted Murder and Other Crimes in Connection with Racketeering ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TERRANCE WILLIAMS, a/k/a “TA,” pled guilty yesterday before U.S. District Judge Valerie E. Caproni to his involvement in a racketeering conspiracy for which he participated in an attempted murder, a robbery, and crack cocaine trafficking in connection with his membership in the “Young Gunnaz” (“YGz”) violent street gang, which operated in and around several housing developments in the South Bronx.
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
WILLIAMS was a member of the Bronx-based street gang known as the YGz, a leading member of a set of the YGz based in Maria Lopez Plaza in the Bronx, and committed acts of violence with other YGz gang members to further the interests of the gang. From 2005 to 2016, members and associates of the YGz enriched themselves by committing robberies and by selling drugs, such as crack cocaine, heroin, and marijuana, and committed acts of violence, including murder and attempted murder, against various people, including rival gang members, rival drug traffickers, and innocent bystanders. As part of this enterprise, members and associates of the YGz killed and attempted to kill other individuals.
As part of his involvement in the YGz gang, WILLIAMS participated in acts of violence and crack cocaine trafficking with other YGz members. First, on November 22, 2010, WILLIAMS and other YGz members participated in a shootout with members of a rival gang, the Courtlandt Avenue Crew, near East 163rd Street and Park Avenue in the Bronx. During the shootout, WILLIAMS fired gunshots at and tried to kill the rival gang members, a rival Courtlandt Avenue Crew member was shot and nearly killed, and two others were shot and injured. Second, on January 24, 2011, WILLIAMS and other YGz members robbed and assaulted a rival Courtlandt Avenue Crew associate inside a bodega on Courtlandt Avenue in the Bronx. Third, WILLIAMS sold crack cocaine with other YGz members near Maria Lopez Plaza in the Bronx during his participation in the gang.
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WILLIAMS, 24, of the Bronx, New York, pled guilty to one count of racketeering conspiracy, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. WILLIAMS will be sentenced before U.S. District Judge Valerie E. Caproni on November 29, 2016.
Mr. Bharara praised the work of ATF, the DEA, and the NYPD in the investigation of this case. He also thanked the Bronx County District Attorney’s Office for their support in this case.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, James McDonald, Andrew Adams, and Dina McLeod are in charge of the prosecution.
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