Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
7 October 2016
U.S. Attorney Announces Video Campaign to Educate Parents, Kids and Community Leaders on Growing Opiate EpidemicRead the Press Release
Video links will be sent to hundreds of school administrators,
in more than 60 counties in Kentucky Videos have potential to reach 1.7 million people on Facebook Videos include perspectives from parents, a federal prison inmate,
a recovering addict, medical and health professionals, and more.LEXINGTON, Ky. — The U.S. Attorney’s Office for the Eastern District of Kentucky is announcing the launch of a video campaign to better educate communities on the opioid and heroin epidemic and address misperceptions about the problem. The office has created four videos that are now available on its website: justice.gov/usao-edky/heat. The videos will be promoted using social media, and links to the videos will be sent to over a thousand school and community leaders, including mayors, county judge executives, and school resource officers, across the 67 counties comprising the eastern half of the state.
The videos include a wide variety of perspectives on the opiate issue – including that of a federal prison inmate, an addict in recovery, parents who have lost a child to an overdose, a nurse-manager of a hospital Emergency Department, one of the nation’s top physician addiction specialists, a public health official, a federal prosecutor, the head of the DEA in Kentucky, and U.S. Attorney Harvey.
The videos will address topics such as the origin and escalation of the opiate epidemic; why a person turns to opiates; the nature of opiate addiction; what parents need to know to educate their children concerning the danger of opiate abuse, and law enforcement efforts to combat the problem.
"To win this fight, we must clearly understand what we’re up against," said U.S. Attorney Harvey. "We must acknowledge that the opioid epidemic threatens every segment of our community and we must eliminate the false stereotypes and misperceptions that hamper our efforts. These videos provide important insights from those who, in one way or another, have been deeply affected by this epidemic. These videos will compliment what our families from the USA HEAT program are already doing in their presentations to community."
The campaign includes a social media strategy that has the potential to reach 1.7 million people in the eastern half of Kentucky using Facebook.
Below is a list and description of the videos:
Heroin’s Hold (22:30): A history and current state of the opioid epidemic. Medical, public health, and law enforcement professionals explore the relationship between widespread use of prescription opioids and the heroin epidemic. Addicts tell their stories of the power of addiction. Families share their stories and advice after overdose deaths.
Heroin is Here (4:09): Federal prosecutor and DEA Special Agent explore the history and current state of the opioid epidemic, including the prevalence of heroin and fentanyl, and the federal government’s drug enforcement response.
Heroin is Hell (4:09): Recovering addicts and their families share their stories of the path and power of opioid addiction and the struggle to overcome addiction.
Heroin Hurts (4:19): Families tell about the struggle of opioid addiction and tragedy of heroin and fentanyl overdose deaths.
To learn more about the United States Attorney’s fight against Kentucky’s heroin epidemic, please visit USA HEAT at justice.gov/usao-edky/heat, or Google "U.S. Attorney’s HEAT."
Two men charged with distribution of controlled substances in Eastern PanhandleRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury returned indictments this week charging two men from the Eastern Panhandle with distributing various controlled substances, United States Attorney William J. Ihlenfeld, II, announced.
Michael Ernest Marshall, 33, of Bunker Hill, West Virginia, allegedly distributed oxycodone, methadone, and carisoprodol and Clark Corbin, 40, of Ranson, West Virginia, allegedly distributed cocaine hydrochloride and heroin. Marshall and Corbin both allegedly distributed the substances earlier this year in Jefferson County, West Virginia.
Marshall has been charged with two counts of “Possession with Intent to Distribute Oxycodone,” two counts of “Possession with Intent to Distribute Methadone,” one count of “Possession with Intent to Distribute Carisoprodol,” and one count of “Distribution of Oxycodone.” He faces up to twenty years in prison and a fine up to $1,000,000 for each of the oxycodone and methadone possession charges; up to five years in prison and a fine up to $250,000 for the carisoprodol possession charge; and up to twenty years in prison and a fine up to $1,000,000 for the oxycodone distribution charge.
Corbin has been charged with one count of “Possession with Intent to Distribute Cocaine Hydrochloride” and one count of “Possession with Intent to Distribute Heroin.” He faces up to twenty years in prison and a fine up to $1,000,000 for each charge.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul T. Camilletti and Special Assistant U.S. Attorney Lara Omps-Botteicher, also of the West Virginia Assistant Attorney General’s Office, are handling the cases on behalf of the government. The Drug Enforcement Administration and the Jefferson County Sheriff’s Office are investigating the cases.Two Sentenced for Stealing Identities to Obtain Fraudulent Student LoansRead the Press Release
ALEXANDRIA, Va. – Ernest Xavier Taylor, Jr., 31, and Tracie Laverne Mixon, 34, both of Hammond, Louisiana, were sentenced today to 51 and 45 months in prison, respectively, for charges relating to stealing the identities of four people to fraudulently obtain federal student loans from Northern Virginia Community College (NVCC) and other schools.
Taylor Jr. and Mixon pleaded guilty to conspiracy to commit mail, wire, and financial aid fraud in addition to aggravated identity theft. According to court documents, Taylor Jr. and Mixon engaged in a conspiracy to use the identity of four different people to fraudulently obtain federal student aid from NVCC and other schools. The four different people included three who were in prison at the time their identities were used, and the fourth person was recovering in a military hospital after suffering injuries while deployed as a member of the U.S. Army in Afghanistan.
Taylor Jr. and Mixon would use the names, dates of birth, and social security numbers of these four different people on various submissions, but Taylor Jr. and Mixon would supply their own addresses, emails, and telephone numbers to ensure that communications from the Department of Education, NVCC, and the other schools would be directed to Taylor Jr. and Mixon. The indictment also alleges that recorded telephone calls captured Taylor Jr. pretending to be the four different identities when calling to check on the status of financial aid from NVCC. Taylor Jr. and Mixon’s fraudulent actions allegedly caused NVCC and other schools to offer approximately $67,000 in federal student aid to the various identities used by Taylor Jr. and Mixon.
In addition to NVCC, the other schools targeted by Taylor Jr. and Mixon are: Front Range Community College; Community College of Denver; Portland Community College; and Black Hills State University.
Special Assistant U.S. Attorneys Brian D. Harrison and Edward P. Sullivan prosecuted the case. The case was investigated by the Department of Education, Office of Inspector General and the FBI’s Washington Field Office. The investigation received assistance from the Northern Virginia Community College Police Department.
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-118.
Two Members of Mexican Drug Trafficking Organization Convicted on Drug Trafficking and Money Laundering ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict yesterday finding Amado Acevedo-Gonzalez, 36, a Mexican national, and Yolanda Rodriguez, 50, a U.S. citizen who formerly resided in Mexico, guilty on drug trafficking offenses and money laundering charges after a four-day trial. The jury’s guilty verdict was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, Ismael Nevarez Jr., Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation, and Chief Patrol Agent Jeffrey D. Self of the U.S. Border Patrol El Paso Sector.
Acevedo-Gonzalez and Rodriguez were convicted on multiple charges contained in a 45-count indictment that was filed in Oct. 2015. The indictment charged Acevedo-Gonzalez, Rodriguez and 18 others with participating in a major drug trafficking organization (DTO) that imported large amounts of cocaine, marijuana and heroin from Mexico into the United States. The indictment alleged that members of the DTO distributed the cocaine, marijuana and heroin in Albuquerque and other places in the United States, and smuggled drug proceeds from the United States to Mexico. According to the indictment, the conspiracy operated in Doña Ana, Luna and Bernalillo Counties from Oct. 2014 through Oct. 2015.
The indictment was the result of an investigation by the DEA, FBI, IRS and U.S. Border Patrol that was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies and their local counterparts in a coordinated effort to disrupt and dismantle major drug trafficking organizations. During the investigation, federal agents seized and purchased 6.2 kilograms of cocaine, 2.9 kilograms of methamphetamine, 1039.9 kilograms of marijuana, and 351 grams of heroin. They also seized $267,030.00 in drug proceeds and other assets valued at approximately $153,000.00.
Of the 20 defendants charged in the indictment, 12 have been arrested, including ten who entered guilty pleas, and the remaining eight are fugitives. Acevedo-Gonzalez, who was charged with participating in the drug trafficking conspiracy, possession of marijuana with intent to distribute, and using a communication device to facilitate drug trafficking crimes, and Rodriguez, who was charged with participating in the drug trafficking and money laundering conspiracies and international money laundering, entered not guilty pleas, and elected to proceed to trial.
The trial of Acevedo-Gonzalez and Rodriguez began on Oct. 3, 2016. The trial concluded yesterday when the jury returned verdicts finding Acevedo–Gonzalez and Rodriguez guilty on all of the charges against them. The evidence at trial established that Acevedo-Gonzalez and Rodriguez were part of a Mexican DTO that imported cocaine and marijuana into the United States, and exported the drug proceeds back to Mexico. More specifically, the evidence established that Acevedo-Gonzalez, distributed marijuana for the DTO, and that Rodriguez was a courier who transported drugs and drug proceeds from Albuquerque to Mexico for the DTO.
During the trial, the jury learned about the ten-month investigation into the DTO during which court-authorized wiretaps were used to gather evidence that permitted federal agents to learn about shipments of cocaine and marijuana that were transported in tractor-trailers from Mexico to an auto body shop in Albuquerque. From the auto body shop, a member of the DTO coordinated with bosses in Mexico to distribute the drugs, and to collect drug proceeds and transport them back to Mexico. Federal agents testified about this pattern – drugs going north in tractor-trailers and drug proceeds going south – occurred numerous times. Based on their knowledge of this pattern, federal agents were able to seize more than $250,000 in drug proceeds from couriers and a tractor-trailer containing marijuana.
The jury deliberated for a little over an hour before returning their guilty verdicts against Acevedo-Gonzalez and Rodriguez. Both remain in federal custody pending sentencing hearings, which have yet to be scheduled. At sentencing, Acevedo-Gonzalez faces a statutory maximum penalty of five years in prison, and Rodriguez faces a statutory maximum penalty of 20 years in prison.
The following defendants have entered guilty pleas in this case and, except as noted, are awaiting sentencing:
- Rene Amaya-Rivas, 27, a Mexican national who was residing in Odessa, Texas, pled guilty on April 27, 2016, to conspiracy, possession of cocaine with intent to distribute and money laundering charges.
- Pablo Alberto Arana-Delgado, 35, a Mexican national who was residing in El Paso, Texas, pled guilty on June 8, 2016, to conspiracy and possession of cocaine and marijuana with intent to distribute charges.
- Elier Gabriel Jaime-Castillo, 35, a Mexican national illegally present in the United States, pled guilty on Aug. 30, 2016, to conspiracy, money laundering, possession of marijuana with intent to distribute and use of a communication device to facilitate a drug trafficking crime charges.
- Mauricio Ledezma, 23, of Albuquerque, N.M., pled guilty on Dec. 8, 2015, to misprision of a felony, and was sentenced on April 6, 2016, to 24 months of probation.
- Cerbando Carbajal, 20, of Columbus, N.M., pled guilty on March 29, 2016, to conspiracy and money laundering charges.
- Emilia Quezada, 31, a U.S. citizen who was residing in Chihuahua, Mexico, pled guilty on April 1, 2016, to conspiracy and money laundering charges.
- George A. Taylor, 55, of Deming, N.M., pled guilty on April 20, 2016, to conspiracy, possession of marijuana with intent to distribute and money laundering charges.
- Grisel H. Majalca, 32 of Columbus, N.M., pled guilty on Aug. 3, 2016, to conspiracy, use of a communication device to facilitate a drug trafficking crime and money laundering charges.
- Leonardo Martinez-Olivas, 49, a Mexican national, pled guilty on May 11, 2016, to conspiracy and money laundering charges.
- Neftali Garcia-Torres, 20, a Mexican national, pled guilty on Sept. 14, 2016, to misprision of a felony.
The following defendants, all Mexican nationals, have yet to be arrested and are considered fugitives: Edgar Estopellan-Torres, Ignacio Villalobos-Salinas, 30, Angel Daniel Silva-Silva, 31, Rigoberto Estopellan-Torres, 35, Jesus Muñoz-Lechuga, 36, Emilio Delgado-Olivas, 43, Jesus Gilberto Varela-Sanchez, 28, and Carlos Adrian Ortega-Acevedes, 25. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The case was investigated by the Las Cruces offices of the DEA, FBI, IRS and the U.S. Border Patrol. Assistant U.S. Attorneys Selesia L. Winston and Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Turkish National Sentenced for Arms Export Control Act OffensesRead the Press Release
ALEXANDRIA, Va. – Hamza Kolsuz, 43, a Turkish national, was sentenced today to 30 months in prison for his attempted exportation of weapons parts to the Republic of Turkey in violation of the Arms Export Control Act.
Kolsuz was found guilty after a bench trial by the Senior U.S. District Judge T.S. Ellis III on March 2. According to court records and evidence presented at trial, Kolsuz has on at least three occasions since 2012 attempted to smuggle various weapons parts to Turkey. Kolsuz, who engaged in this unlawful conduct for profit along with other individuals, purchased weapons and weapons parts in the United States and then traveled with them to Turkey, where they would be reassembled and sold. In an attempt to circumvent U.S. weapons exportation laws, Kolsuz would either pack the weapons parts in luggage and check the bags in connection with flights to the Republic of Turkey, or he would send weapons parts through the mail.
According to evidence presented at trial, on Dec. 2, 2012, Kolsuz checked in for a flight at JFK International Airport in New York with a final destination of Istanbul, Republic of Turkey. His checked luggage included: 40 upper receivers for semi-automatic pistols; 20 grip modules for Sig Sauer pistols; 16 barrels for semi-automatic pistols; 26 firearms magazines for firearms; and one pistol grip.
On Jan. 8, 2013, Kolsuz checked in for a flight at JFK International Airport with a final destination of Istanbul. Despite having been specifically informed on Dec. 2, 2012, that it was illegal to export weapons parts without an export license, his checked luggage contained one Beretta slide, one firearm barrel, one Beretta recoil spring, and one Beretta guide rod.
On Feb. 2, 2016, Kolsuz began his return trip to Istanbul by checking in at Miami International Airport for a flight that took him to Cleveland Hopkins International Airport. He then checked in for a flight that was to take him and his checked luggage from Cleveland through Washington Dulles International Airport before embarking for Istanbul. In Cleveland, Kolsuz checked luggage containing four 9mm Glock 31-round magazines; four 9mm Glock 17-round magazines; four 9mm Glock 15-round magazines; eight 9mm Glock 10-round magazines; one 9mm Smith & Wesson 32-round magazine; four 9mm Sig Sauer handgun barrels; and five 9mm threaded Glock 19 barrels, in addition to various other weapons parts.
All of the weapons parts found in Kolsuz’s checked luggage on Dec. 2, 2012; Jan 8, 2013; and Feb 2, 2016, are and were defense articles controlled on the United States Munitions List and therefore required a license or other written authorization from the U.S. Department of State’s Directorate of Defense Trade Controls (DDTC) in order to be lawfully exported from the United States. Kolsuz has never applied for and has never received any licenses or other written authorization from the DDTC to export defense articles from the United States. Accordingly, on each occasion when weapons parts were found in Kolsuz’s checked luggage, all of the parts were seized by law enforcement and were never returned to Kolsuz.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after the sentence was announced. The case was prosecuted by Special Assistant U.S. Attorney Heather N. Alpino and Assistant U.S. Attorney Dennis M. Fitzpatrick.
HSI Washington, D.C., received assistance with this investigation from HSI New York and U.S. Customs and Border Protection’s Office of Field Operations.
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-53.
Tohono O’odham Police Detective Receives Award from U.S. Attorney General for Distinguished Service in Community PolicingRead the Press Release
TUCSON, Ariz. – Jessie Gonzales, a detective with the Tohono O’odham Police Department in Arizona, has received the U.S. Attorney General’s Award for Distinguished Service in Community Policing for criminal investigations.
“I am proud of Detective Gonzales and very pleased that he was recognized by the Attorney General for his efforts and accomplishments in combatting crime and enhancing public safety in the Tohono O’odham community,” said U.S. Attorney John S. Leonardo. “This is a very prestigious national award and Detective Gonzales is a deserving recipient.”
Detective Gonzales was recognized for his work in criminal investigations. Assigned to crimes against children and sex crimes, Detective Gonzales was sometimes the only detective investigating these cases on the Tohono O’odham reservation, which covers three counties. He consistently went above and beyond the call of duty when conducting investigations. He solved two rape cases during his time in the Criminal Investigations Division, one involving a 10-year-old victim and the other involving a domestic violence-related stabbing.
The Attorney General’s Award for Distinguished Service in Community Policing recognizes individual state, local, or tribal sworn police officers and deputies for exceptional efforts in community policing.
RELEASE NUMBER: 2016-087_AG_Award-Gonzales
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Charged in Cape Cod Drug and Gun Trafficking RingRead the Press Release
BOSTON – Three Cape Cod men were charged in a second superseding indictment in connection with the “Nauti-Block” drug trafficking ring. This brings the total number of defendants charged in federal court in this, and related cases, to 19.
The second superseding indictment charges three additional defendants and adds new charges to existing defendants. Christian Chapman, 26, of Yarmouth, was charged with conspiracy to distribute and possess with the intent to distribute heroin. Browning Mejia, 26, of Yarmouth, was charged with use of a telephone to facilitate a felony drug trafficking offense, namely, conspiracy to distribute and possess with the intent to distribute Suboxone, a Schedule III controlled substance. Aaron Mott-Frye, 27, of Wareham, was charged with conspiracy to distribute and possess with the intent to distribute cocaine.
The second superseding indictment stems from the April 2016 takedown of the “Nauti-Block” drug trafficking organization that charged Denzel Chisholm, Christopher Wilkins, and others in connection with the sale of significant amounts of heroin on Cape Cod.
The second superseding indictment also added the following charges against existing defendants:
- Denzel Chisholm and Christopher Wilkins were charged with conspiring to distribute one kilogram or more of heroin;
- Tyrone Gomes was charged with conspiring to distribute 100 grams or more of heroin;
- Shaun Miller was charged with possession of two firearms by a convicted felon;
- Denzel Chisholm and Browning Mejia were charged with use of a telephone to facilitate a drug trafficking offense;
- Christopher Wilkins and Mott-Frye were charged with conspiracy and possession with the intent to distribute and distribution of cocaine; and
- Bethanne Hutchings was charged with maintaining a place for drug purposes.
Aaron Mott-Frye was arrested this morning and appeared in U.S. District Court in Boston. Chapman is currently awaiting trial in Barnstable County for charges related to a recent shooting at Pufferbelly’s nightclub. Mejia is currently serving a state prison sentence for his role in a 2009 Cape Cod shooting. Mejia and Chapman will appear in federal court after they are transferred from state custody.
This case was brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. Barnstable County, which includes Cape Cod and associated islands, has been particularly hard hit. With a population of just over 200,000 people, it saw 66 fatal overdoses in 2015 – a 65% increase from 2013 – according to the Massachusetts Department of Public Health.
The charge of conspiracy to distribute and possess with intent to distribute heroin and cocaine and possession with the intent to distribute heroin and cocaine provide for a sentence of no greater than 20 years in prison, a lifetime of supervised release and a fine of $1 million. The charge of conspiracy involving greater than 100 grams of heroin provides for a sentence of five years to life in prison, four years of supervised release and a fine of $5 million. The charge of conspiracy involving one kilogram of heroin provides for a sentence of 10 years to life in prison, five years of supervised release and a fine of $10 million. The charge of conspiracy to possess a firearm in furtherance of a drug trafficking offense provides for a sentence of no greater than 20 years in prison, three 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; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Barnstable County District Attorney Michael O’Keefe; Barnstable County Sheriff James M. Cummings; Bristol County Sheriff Thomas Hodgson; Chief Paul MacDonald of the Barnstable Police Department; and Chief Frank Frederickson of the Yarmouth Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eric Rosen of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Stash House Guard Pleads GuiltyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Jesus A. Barrera Guerrero (18, La Porte, Texas) today pleaded guilty to conspiracy to possess with intent to distribute 5 kilograms or more of cocaine and 500 grams or more of methamphetamine. He faces a minimum mandatory penalty of 10 years, up to life, in federal prison.
According to the plea agreement, in August 2016, at the direction of members of a large drug trafficking organization (DTO), Barrera Guerrero delivered approximately 11 kilograms of methamphetamine to an undercover DEA agent at a gas station in Gibsonton. Barrera Guerrero was arrested following the transaction, and he later led law enforcement investigators to a nearby drug stash house where he had been staying. Inside the house, DEA agents found nearly 13 additional kilograms of methamphetamine and approximately 11 kilograms of cocaine.
This case was the result of a comprehensive and dedicated effort by the Drug Enforcement Administration and the Bradenton Police Department, as part of an on-going Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
St. George Man Sentenced to 108 Months in Federal Prison After Convictions for Fraud, Money LaunderingRead the Press Release
SALT LAKE CITY – Edmund Edward Wilson, age 72, of St. George, Utah, who pleaded guilty to wire fraud and money laundering in connection with a real estate fraud scheme, will serve 108 months in federal prison followed by 36 months of supervised release. U.S. District Judge Dee Benson imposed the sentence Thursday afternoon in federal court. Wilson also must pay $12,227,920 in restitution to victims of the fraud scheme.
According to a sentencing memorandum filed by federal prosecutors, Wilson ran a real estate investment scheme from approximately 2005 until 2012. His fraud accelerated in 2009 when businesses were in desperate need for financing, and the economic collapse made such loans more difficult to obtain through traditional means. Wilson sought out individuals all over the country who were developing real estate projects, such as shopping malls or resorts.
Wilson represented to investors that his company could provide financing for real estate development projects for an advance fee of either $80,000 or $150,000 through a “substitution of collateral program.” Through this program, individuals would provide the fee, obtain financing for their projects within 30-60 days (in some cases hundreds of millions of dollars), and not have to repay the loan. In return, these individuals Wilson called “investors” would give Mr. Wilson a 30 percent stake in the development project.
When investors called Wilson to ask why they had not received funding for their projects within the time promised, Wilson falsely represented to investors that he needed additional money to cover various unforeseen fees and expenses, and that once these costs were paid, funds would be released for the development projects. Wilson failed to disclose to investors that he never provided any funding for any development project through his substitution of collateral program and that he used a significant portion of the advanced fees for his personal benefit.
Later in the scheme, Wilson falsely represented to investors who had already invested in his program and to new potential investors that he could arrange financing of their development projects through his wealthy partner in Asia known as “the General.” In exchange for an investment of $80,000 to $150,000, investors would receive a forgivable loan for their real estate development project. The loan would come from “the General” who had access to millions of dollars in U.S. currency set aside for investment projects in the United States.
Again, Wilson failed to disclose to investors that he had never provided any funding for any development project through his foreign investment program and that he used a significant portion of the advanced fees for his personal benefit.
For example, in the wire fraud count he pleaded guilty to, Wilson admitted that around September 2008, he told an investor identified as M.B.K. that if M.B.K. paid $150,000 into his foreign investment program, Wilson could obtain and provide $96,080,000 in financing within 30 days for M.B.K.’s real estate development project of a hotel and spa in Greenville, N.C. As a result of Wilson’s representations, M.B.K. wired $150,000 to Wilson. Wilson admitted he used a portion of the advanced fees M.B.K. paid for his own personal benefit, transferring $100,000 to another account that had nothing to do with his substitution of collateral program or foreign investment program.
“Mr. Wilson never funded a single real estate project. Every iteration of the story Mr. Wilson told was pure fabrication. The majority of funds received by Mr. Wilson were used to cover his personal expenses and expenses of his other businesses which operated at a significant loss. No funds were ever put in escrow as the loan agreements specified,” federal prosecutors wrote in the sentencing memorandum. Wilson declared bankruptcy in August 2012.
The case was prosecuted by the U.S. Attorney’s Office in Utah and investigated by special agents of the FBI and IRS Criminal Investigation.
Springfield Man Charged with Failing to Register as a Sex OffenderRead the Press Release
BOSTON – Luis Cirilo, 45, of Springfield was charged in U.S. District Court in Springfield yesterday with failing to register as a sex offender.
As alleged in court documents, Cirilo as convicted in 1997 of sodomy in the first degree. In violation of court orders, he traveled from Pennsylvania to Springfield, Mass. and failed to register as a sex offender from June 2014 to Nov. 12, 2015, when he was arrested on state charges of indecent assault and battery on a child under 14.
The charging statute provides for a sentence of no greater than 10 years in prison, a lifetime 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 and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Office.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Sioux Falls Man Found Guilty of Drugs and Weapons ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that Shawn Russell Sorensen, age 54, of Sioux Falls, South Dakota, was found guilty of drugs and weapons charges as a result of a federal jury trial in Sioux Falls, South Dakota.
Sorensen was charged by indictment with Conspiracy to Distribute a Controlled Substance (500 grams or more of a mixture containing methamphetamine), and Possession of Firearms by a Convicted Felon.
Because Sorensen has two prior felony drug convictions, his methamphetamine charge carries a mandatory sentence of life in custody and/or a $20 million fine. The gun charge carries a maximum sentence of 10 years in custody and/or a $250,000 fine, and 3 years of supervised release. Each offense also has a $100 special assessment to the Federal Crime Victims Fund.
The investigation of Sorensen began when a package containing a half-pound of cocaine and 10 pounds of methamphetamine was intercepted by the United States Postal Service. The package was subsequently linked to Sorensen. The evidence established Sorensen had received multiple packages in this manner. When Sorensen’s vehicle was stopped by law enforcement, he had in his possession three firearms and ammunition.
This case was investigated by the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Drug Enforcement Administration, the Rock County, Minnesota Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorneys Jennifer D. Mammenga and John E. Haak prosecuted the case.
A presentence investigation was ordered, but a sentencing date has not yet been set. The defendant was remanded to the custody of the U.S. Marshals Service.
San Francisco Police Officer Receives U.S. Attorney General’s Award for Distinguished Service in Community PolicingRead the Press Release
SAN FRANCISCO – Yesterday, JoAnn Walker with the San Francisco Police Department received the U.S. Attorney General’s Award for Distinguished Service in Community Policing for field operations.
Officer Walker was recognized for her work in field operations. She has volunteered for extensive training on hostage negotiation, crisis counseling, and suicide prevention, dedicating her own time and resources to advance her expertise and educate her colleagues in crisis service support. Thanks to her initiative and advocacy, crisis counselors are better equipped to respond to people in need, and the relationship between law enforcement and the local community has improved.
The Attorney General’s Award for Distinguished Service in Community Policing recognizes individual state, local, or tribal sworn police officers and deputies for exceptional efforts in community policing. U.S. Attorney Brian J. Stretch attended the ceremony in Washington D.C. with Officer Walker.
Earlier this week, United States Attorney Stretch launched National Community Policing Week in the Northern District of California by visiting the training academies of the Alameda County Sheriff’s Department, the Contra Costa County Sheriff’s Department, and the San Francisco Police Department. Attorney General Loretta E. Lynch marked the occasion on Monday by traveling to Dallas, Texas, to hold a 21st Century Community Policing Youth Forum with students, officer cadets, and some athletes from the Dallas Cowboys known for their work to bring communities and law enforcement together.
As part of the Obama Administration's commitment to building stronger relationships between law enforcement and the communities they serve, the Department of Justice led nearly 400 events in support of community policing efforts around the country. To further that effort, President Obama designated the week of Oct. 2-8, 2016, as Community Policing Week. The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual trust and respect between law enforcement and citizens. National Community Policing Week builds on President Obama’s efforts to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report.
“The Department of Justice recognizes the critical importance of the relationship between local law enforcement officers and the communities they serve,” said US Attorney Stretch. “During Community Policing Week and beyond, we are committed to strengthening and promoting the collaborative programs and policing practices that are designed to strengthen such relationships. We are very proud of Officer Walker for all that she continues to do, and applaud all officers and organizations that have created and used innovative methods to promote collaborative reforms.”
Riverside County Man Indicted on Federal Charges of Producing Child Pornography by Filming Sexual Molestation of Young BoyRead the Press Release
RIVERSIDE, California – A federal grand jury has indicted a San Jacinto man on charges of producing child pornography for allegedly making videos while he sexually molested a 5-year-old boy.
Steve Alonso Marquez, 31, of San Jacinto, was named in a four-count indictment returned by the grand jury Wednesday. The indictment alleges two counts of producing child pornography videos that were distributed to other people.
In addition to the production of child pornography, Marquez is charged with possessing child pornography at his residence and using the Internet in an attempt to have illegal sexual conduct with a young girl.
Marquez was arrested in the Southern District of California on August 12 after he arrived at a hotel in Fallbrook, allegedly for the purpose of engaging in sexual activity with the girl. Marquez was subsequently indicted by a federal grand jury in San Diego, where he is currently being held without bond.
The child pornography charges contained in this week’s indictment stem from a search warrant executed at Marquez’s residence on August 23. At that time, FBI agents recovered digital devices that contained the alleged child pornography, which included videos Marquez is charged with making while molesting a young boy at a location investigators believe is in Hemet.
“This defendant is charged with filming and sharing heinous acts against a child,” said United States Attorney Eileen M. Decker. “This type of behavior has unimaginable impacts on young victims, and the distribution of images documenting child abuse only seeks to inspire additional abuse of children. This criminal behavior cannot be tolerated and will be subject to the most aggressive prosecution available.”
“The disturbing allegations against Mr. Marquez remind us of the predatory threat targeting the most vulnerable members of our society and the need to remain vigilant,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The federal government takes the production of child pornography very seriously. In addition to the horrific abuse suffered by the minor victim, the further distribution of images leads to the continued suffering of that victim and supplies the global demand for such images.”
The indictment charges Marquez with two counts of production of child pornography, possession of child pornography, and attempted enticement of a minor to engage in criminal sexual activity. Each count of producing child pornography carries a mandatory minimum sentence of 15 years in federal prison and a statutory maximum penalty of 30 years. The charge of possessing child pornography carries a maximum penalty of 20 years in prison because the images allegedly depict children under the age of 12. The charge of attempted enticement of a minor carries a mandatory minimum sentence of 10 years and a maximum possible penalty of life without parole. Therefore, if he is convicted of all four counts in the indictment, Marquez would face a sentence of at least 40 years in federal prison and could be sentence to as much as life in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The case against Marquez is the product of an investigation by the Federal Bureau of Investigation. This case is being prosecuted by Special Assistant United States Attorney Teresa K.B. Beecham.
Registered Sex Offender Sentenced for Possession of Child PornographyRead the Press Release
HOUSTON – A 45-year old Spring man has been ordered to federal prison for his conviction of possessing child pornography, announced U.S. Attorney Kenneth Magidson.
Gregg Carl Baird had been convicted of state charges in March 2010 of possession of child pornography and ordered to register as a sex offender upon his release in 2014. He pleaded guilty to the new federal charge on Jan. 8, 2016.
Today, U.S. District Judge David Hittner handed Baird a sentence of 121 months in prison. He was further ordered to serve the remainder of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. Baird will also again be ordered to register as a sex offender.
Baird was identified as part of a nationwide investigation known as Operation Pacifier. The FBI obtained a search warrant based on information that led investigators to believe Baird was accessing files from a website known to contain child pornography. Forensic analysis on the items seized during the search resulted in the discovery of child pornography images/videos, to include more than 450 videos and 2300 images of child pornography. Several of the videos depicted the penetration of a minor under the age of five and bondage of a child.
Baird will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant U.S. Attorney Sherri L. 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. Led by 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, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Prosecutors Secure Guilty Pleas and File Asset Forfeiture Actions in International Money Laundering and Identity Theft Scheme involving Fraudulent Tax Returns that Sought $38 Million in RefundsRead the Press Release
SANTA ANA, California – Federal prosecutors have secured guilty pleas from seven defendants who participated in a large-scale international identity theft scheme that laundered more than $14 million in fraudulently obtained tax refunds by using bogus Republic of Armenia passports.
This week, special agents with IRS Criminal Investigation posted a forfeiture notice on a Woodland Hills residence that prosecutors are seeking to forfeit based on allegations that it was purchased with illegally obtained money. Last month, the United States Attorney’s Office filed a civil asset forfeiture lawsuit against three Van Nuys properties and alleged criminal forfeiture against the Woodland Hills property, which cumulatively have more than $1 million in equity. According to the civil complaint, some of those properties were purchased with cash with fraudulent Armenian passports used as identification.
And, in a third development stemming from the investigation, a federal grand jury in Santa Ana last month returned an indictment charging an eleventh defendant with mortgage fraud, bank fraud, and aggravated identity theft. While not directly related to the stolen identity refund fraud (SIRF) case, Aramais Airapetian, 24, of Woodland Hills, was charged as a result of the same investigation with using fraudulent documents, including fake pay stubs and altered bank statements, to obtain a mortgage from loanDepot.com. Criminal forfeiture is also alleged against the Woodland Hills house that Airapetian allegedly purchased using the mortgage proceeds he fraudulently obtained. If he is convicted, Airapetian could face decades in federal prison.
With the indictment of Airapetian, 11 defendants now have been charged as a result of the investigation. Seven defendants have pleaded guilty, one is a fugitive, and three (including Airapetian) are pending trial.
“Stolen identity refund fraud schemes have become a significant, nationwide problem that victimize the United States government, individuals who are identity theft victims and all taxpayers who end up paying for these fraudulent schemes,” said United States Attorney Eileen M. Decker. “These defendants created a complex, international scheme in an effort to conceal their fraud, but it was not sufficient to shield them from discovery and prosecution.”
Authorities initially announced this case in April when nine of the 10 defendants accused of being part of a money laundering ring were arrested. According to court documents, those defendants used hundreds of bank accounts that had been opened with stolen identities to launder millions of dollars in fraudulently obtained tax refunds. The IRS has identified approximately 7,000 fraudulent tax returns related to this scheme that cumulatively sought about $38 million in refunds. The IRS issued about $14 million in refunds, which were deposited into and laundered through bank accounts used in this scheme. The fraudulent tax returns were filed and the bank accounts were opened with personal identifying information (PII) that had been stolen from thousands of victims.
“Identity theft and tax refund fraud were the lifeblood that these defendants used to further their massive money laundering fraud scheme,” stated Acting Anthony J. Orlando, Special Agent in Charge for IRS Criminal Investigation. “IRS Criminal Investigation will not rest until this investigation has been fully adjudicated and those responsible for these felonious crimes are held accountable.”
The 10 defendants initially charged, each of whom was named in a separate criminal complaint, allegedly used fraudulent foreign passports to commit identity theft by opening numerous bank accounts and mailbox addresses with the stolen identities. According to the criminal complaints, they used fraudulent passports from the Republic of Armenia, Georgia, and the Czech Republic that had the names of identity theft victims but the defendants’ photographs. The mailboxes and bank accounts were opened across Los Angeles and Orange counties.
“The complexity and audacity of this scheme were truly astounding and illustrate the lengths to which fraudsters will go to game the system for financial gain,” said Joseph Macias, special agent in charge of HSI Los Angeles. “Identity theft and tax fraud result in billions of dollars in losses every year in this country and cause tremendous heartache and financial harm to law-abiding consumers. We owe it to them to pursue these cases aggressively, making it clear that those who brazenly enrich themselves on the back of the American taxpayer, as these defendants allegedly did, will be held accountable for their crimes.”
The seven defendants who have pleaded guilty before United States District Judge Andrew J. Guilford are:
-
Konstantin Galstyan, 23, of Lake View Terrace, who pleaded guilty on September 30 to bank fraud and identity theft and is scheduled to be sentenced on December 5;
-
Artash Stepanyan, 31, of Glendale, who pleaded guilty in June to identity theft, admitted causing losses of more than $1 million and is scheduled to be sentenced on January 27;
-
Sargis “Sergio” Tabadzhyan, 54, of West Hollywood, who pleaded guilty in June to identity theft and is scheduled to be sentenced on November 7;
-
Arman Galstyan, aka “Mkhitar Mkrtchyan,” 43, of Sylmar, who pleaded guilty in June to identity theft and is scheduled to be sentenced on November 14;
-
Armen Khachkalyan, 48, of Glendale, who pleaded guilty in July to identity theft and is scheduled to be sentenced on October 24;
-
Eduard Astvatsatryan, 34, of Glendale, who pleaded guilty to identity theft in August and is scheduled to be sentenced on December 12; and
-
Hripsime Avagyan, 24, of Burbank, who pleaded guilty to identity theft in June and is scheduled to be sentenced on January 30.
The identity theft charges to which the seven defendants have pleaded guilty carry a statutory maximum sentence of 15 years in federal prison and a $250,000 fine.
The civil asset forfeiture action filed last month seeks forfeiture of three Van Nuys condominiums and alleges that the purchases of those real properties facilitated the concealment of the proceeds from the SIRF scheme in a process that included purchases and sales of gold.
The ongoing investigation into money laundering involving fraudulently obtained tax refunds and related frauds is being conducted by IRS Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Charles Pell of the Santa Ana Branch Office. Assistant United States Attorney Frank Kortum represents the United States in the civil forfeiture action.
-
President of Maryland Tax and Financial Management Companies Pleads Guilty to Defrauding a Client of at Least $526,000Read the Press Release
Baltimore, Maryland – Paul Randolph Beeks, Jr., age 58, of Mt. Airy, Maryland, pleaded guilty today to wire fraud arising from a scheme to defraud one of his clients of at least $526,000.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, from January 2008 to the present, Beeks was the President of various Maryland tax and financial management companies including PRB Tax & Accounting Services, Inc. (hereafter “PRB”) and Elite Financial Services, LLC (hereafter “Elite Financial”). In 2008, at the request of the physician who owned and operated Mid Atlantic Radiology Services, LLC (MARS), Beeks incorporated MARS in Maryland, and was entrusted with all of MARS’ accounting, tax, and financial responsibilities. Beeks also conducted payroll on behalf of MARS, paid MARS’ vendors and paid malpractice insurance for MARS’ physicians.
Starting in November 2009 and continuing to August 2015, Beeks, in his capacity as MARS’ accountant and financial planner, caused approximately 24 wire transfers from MARS accounts to bank accounts associated with Beeks’ various companies. In order to disguise the theft of funds, Beeks falsely claimed that some of these wire transfers were for management fees and bonuses. However, no management fees or bonuses were authorized by any MARS representative and the remaining wire transfers were not for legitimate purposes.
As part of his plea agreement, Beeks will be required to forfeit all property involved in the offense, including, but not limited to a money judgment of at least $336,077.
Beeks faces a maximum sentence of 20 years in prison for the conspiracy. U.S. District Judge George L. Russell III has scheduled Beeks’ sentencing for January 19, 2017, at 9:30 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Philip A. Selden, who is prosecuting the case.
Postal Union Stewards Steal Bargaining Agreement MoneyRead the Press Release
Defendants worked at Traverse City Postal Facility
GRAND RAPIDS, MICHIGAN — Jeffrey D. Velfling, the former Union Steward for Local #307 of the National Postal Mail Handlers Union, and John L. Crosby, the former deputy Union Steward, were sentenced today for their role in stealing approximately $14,500 in overtime payments which should have been given to their co-workers at the Traverse City Mail Facility. Theft of union funds by union officers is a federal felony offense. Each defendant was sentenced to two years of probation, a $1,000 fine, full restitution and a Special Assessment penalty of $100.
"The United States will continue to pursue financial crimes, great or small, that involve a federal interest and negatively impact the quality of life in Western Michigan. We cannot allow persons who hold positions of trust to line their pockets with payments owed to coworkers," said U.S. Attorney Patrick Miles
The stolen money in this case came from two postal grievances in which mail handlers were not given the opportunity to perform "craft work" as defined under a collective bargaining agreement. Velfling and Crosby, on behalf of the union had filed successful grievances, which resulted in payment of approximately $7,000 to their custody and control. An internal review by the Union uncovered the theft of the funds. Velfling and Crosby destroyed the grievance file when they learned of the investigation. The matter was then referred to federal law enforcement.
"The actions of these two union stewards directly violated the Labor-Management Reporting and Disclosure Act and the commitment they made to their co-workers to handle the funds of the union solely for the benefit of the union and its members," said Ian Burg, district director for the Detroit-Milwaukee District Office of the U.S. Department of Labor’s Office of Labor-Management Standards. "OLMS is committed to ensuring financial integrity in labor organizations and protecting the rights of union members to fair representation and treatment by their union leadership."
"As union stewards, Jeffrey Velfling and John Crosby violated the trust placed in them when they stole settlement money intended for their fellow union members. The OIG will continue to work with our law enforcement partners to hold corrupt union officials accountable for defrauding the members they are entrusted to serve", stated James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General.
"Mr. Crosby and Mr. Velfling used their union positions to take financial advantage of the very colleagues they were charged with representing. The U.S. Postal Service Office of Inspector General together with the U.S Attorney's Office and our law enforcement partners will pursue those individuals who would use their positions of public trust within the Postal Service to victimize or steal from others for personal gain," said Special Agent in Charge L. Scott Caspall. Great Lakes Area Office of Inspector General for the U.S. Postal Service.
END
Postal Employee Arrested, Charged with Stealing MailRead 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 Richard D’Arcy, Jr., 37, of Buffalo, NY, was arrested and charged by criminal complaint with theft of mail. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that according to the complaint, on August 2, 2016, a U.S. Postal Service mail carrier discovered 52 pieces of mail, in delivery order, in a blue collection box McKinley Parkway in Buffalo. It was determined that each of these pieces of mail were never delivered to Fisher Road (Route 53) in West Seneca, NY. Some of the mail was postmarked July 30, 2016 and was supposed to be delivered on August 1, 2016. The complaint further states that the defendant delivered Route 53 on August 1, 2016 and that he also lives approximately a half of a mile from the blue mailbox where the undelivered mail was discovered.
A review of the Global Positioning System (GPS) used to track the delivery of mail parcels showed that on August 1, 2016, D’Arcy drove through the portion of Route 53 on Fisher Road where the mail was supposed to be delivered. A comparison of the GPS data from the day before and the day after showed the postal carrier made many more stops and took much longer to deliver the same portion of Fisher Road.
A subsequent of the defendant’s car uncovered multiple bundles of undelivered advertisements, placards, and undelivered First Class mail. According to the complaint, D’Arcy opened some of the mail and took the contents which included solicitations from various veterans groups, children's cancer foundations, and animal protection groups, which contained a $1 bill or other coin currency, seeking additional contributions from patrons.
The complaint is the culmination of an investigation on the part of the United States Postal Service, Office of the Inspector General, under the direction of Special Agent in Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Owner of Florida Home Health Agency Convicted in Multimillion-Dollar Health Care Fraud SchemeRead the Press Release
The owner of a Tampa, Florida, home health agency was convicted by a federal jury for her participation in a multimillion-dollar health care fraud and money laundering scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.
Pilar Garcia Lorenzo (Garcia), 38, of Tampa, the owner of Gold Care Home Health Services Inc. (Gold Care), was convicted late yesterday of one count each of conspiracy to commit health care fraud and wire fraud, conspiracy to commit money laundering and money laundering following a jury trial before U.S. District Judge Charlene Edwards Honeywell of the Middle District of Florida. Sentencing has been scheduled for Jan. 5, 2017.
According to evidence presented at trial, in late summer 2014 Gold Care submitted millions of dollars’ worth of false and fraudulent claims to Medicare. The claims were for home health services that had never been provided and had not been legitimately prescribed by a physician. As a result of those false and fraudulent claims, Medicare reimbursed Gold Care approximately $2.5 million. Garcia used a “straw” or nominee owner in an effort to execute and conceal the fraudulent scheme, the evidence showed. Approximately $2 million of the fraud proceeds her company received were laundered in cash transactions through fictitious shell companies located in Hialeah, Florida.
HHS-OIG and FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office of the Middle District of Florida. This case is being prosecuted by Senior Trial Attorney Christopher J. Hunter and Trial Attorney Angela Adams of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,900 defendants who collectively have billed the Medicare program for over $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
New Orleans Man Pleads Guilty in Conspiracy to Traffic HeroinRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EARL BROWN, age 31, of New Orleans, pled guilty today to conspiracy to distribute and to possess with intent to distribute heroin.
BROWN was one of eight defendants charged in a 21-count Superseding Indictment on September 18, 2015. According to court documents, this Superseding Indictment resulted from an FBI investigation into a heroin-trafficking organization operating primarily around Loyola Avenue and Harmony Street in Central City. The sources of heroin for this organization traveled via Megabus from Houston to New Orleans, carrying half-kilogram quantities of heroin for distribution in the New Orleans area.
BROWN is facing a maximum sentence of 20 years’ imprisonment, as well as a possible fine of up to $1,000,000. U.S. District Judge Carl J. Barbier will sentence BROWN on January 12, 2017.
U.S. Attorney Polite praised the work of the FBI New Orleans Gang Task Force (NOGTF), Saint Tammany Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorney Brandon S. Long is in charge of the prosecution.
National Center for Disaster Fraud Combats Fraud Related to Historic Flooding in Baton Rouge AreaRead the Press Release
BATON ROUGE, LA – The National Center for Disaster Fraud (“NCDF”) announced today its efforts to combat disaster fraud related to the historic flooding event in the Baton Rouge region in August 2016.
The NCDF – which includes over 30 federal, state, and local law enforcement agencies - was established by the U.S. Department of Justice following Hurricane Katrina and is led by United States Attorney Walt Green who serves as its Executive Director.
The NCDF provides a nationwide call center for members of the public to report all types of disaster fraud, as well as a team of law enforcement agents who review those reports and make referrals to the appropriate investigative agencies. It provides de-confliction, coordination, and expertise in handling disaster fraud matters and is focused on protecting disaster victims and any funds dedicated to disaster victims. The Disaster Fraud Hotline is 1-866-720-5721.
The NCDF has received more than 68,000 complaints involving over 40 different disasters, resulting in over 50,000 referrals to law enforcement agencies. With regard to the flooding in Baton Rouge specifically, the NCDF has already received over 1200 complaints.
U.S. Attorney and NCDF Executive Director Green stated: “The NCDF and its partners are united in the common belief that those who fraudulently exploit tragedy and disaster for personal gain must be aggressively investigated and prosecuted. I am proud of the vast coalition of law enforcement agencies for every level that have come together under the NCDF umbrella to combat those fraudsters who invariably seek to take advantage of communities suffering from disasters.”
Louisiana Attorney General Jeff Landry stated: “Our office will continue to do all we can to assist those impacted by the flooding. From receiving and investigating consumer complaints to educating victims of potential scams, the Louisiana Department of Justice remains dedicated to serving the people of our State and their precious tax dollars. We stand united with our partners to ensure the storm’s victims receive the help they need and do not fall prey to those who want to exploit the system.”
FBI New Orleans Division Special Agent in Charge Jeffrey Sallet stated: “Unfortunately, not only has our state witnessed yet another catastrophic disaster, but along with these floods comes the possibility for fraud and abuse regarding disaster relief funding. While Louisiana residents are attempting to rebuild and repair their lives and homes, there are those who will try to take advantage of the situation and attempt to illegally acquire funds they are not entitled to. The FBI New Orleans Division will continue to seamlessly work with our federal, state and local partners in order to investigate fraudulent claims and contractor abuse.”
“It is disheartening that in the aftermath of a natural disaster, criminal elements attempt to steal funds intended to provide relief to victims,” said Michael Breslin, Special Agent in Charge of the U.S. Secret Service’s Criminal Investigative Division. “Disaster related fraud is not only detrimental to our nation’s financial infrastructure, it slows the process of providing much needed resources to those who have lost so much. For this reason, the Secret Service remains a committed partner of the National Center for Disaster Fraud and will relentlessly protect the process to provide financial relief to the victims.”
“The DHS Office of Inspector General has been an enthusiastic participant in the National Center for Disaster Fraud Task Force since its inception,” said Inspector General John Roth. “We continue to work with our Task Force partners to address and combat waste, fraud, and abuse arising out of the recent flooding in Louisiana, ensuring that FEMA emergency assistance is going to the disaster survivors that need it. Suspected fraud or scams should be reported toll-free to the Disaster Fraud Hotline at 1-866-720-5721.”
District Attorney Ricky Babin of the 23rd Judicial District Court stated: “The flood of 2016 has brought unprecedented human and financial loss to our communities. The 23rd Judicial District Attorney’s office is proud to join our Federal and State law enforcement partners to hold accountable any person who engages in fraud or attempts to take advantage of the victims of this natural disaster. The victims of this event have already suffered staggering devastation. This joint effort will pool our resources to focus on predatory practices that may cause further losses.”
Ascension Parish Sheriff Jeffrey Wiley stated: “The last thing that victims of flood damage need is to be victimized again. This task force will involve all levels of law enforcement and will serve an important mission, to protect those that need it the most.”
Federal Agencies
- U.S. Attorney’s Office for the Middle District of Louisiana
- U.S. Department of Justice, Criminal Division
- U.S. Department of Justice, Antitrust Division
- U.S. Department of Justice, Civil Division
- U.S. Secret Service
- U.S. Department of Homeland Security, Office of Inspector General
- Federal Bureau of Investigation
- NOAA Office of Law Enforcement
- U.S. Coast Guard, Inspective Service
- U.S. Postal Inspection Service
- U.S. Department of Defense, Criminal Investigative Service
- U.S. Environmental Protection Agency, Office of Inspector General
- U.S. Federal Housing Finance Agency, Office of Investigations
- U.S. General Services Administration, Office of Inspector General
- U.S. Department of Health and Human Services, Office of Inspector General
- U.S. Department of Housing and Urban Development, Office of Inspector General
- U.S. Department of Labor, Office of Inspector General
- U.S. Small Business Administration, Office of Inspector General
- U.S. Social Security Administration, Office of Inspector General
- U.S. Postal Service, Office of Inspector General
- U.S. Department of Labor, Wage and Hour Division
State Agencies
- Louisiana Attorney General’s Office
- District Attorney’s Office for the 19th Judicial District
- District Attorney’s Office for the 23rd Judicial District
- District Attorney’s Office for the 21st Judicial District
- Louisiana State Police
- Louisiana Department of Wildlife and Fisheries
- Baton Rouge Police Department
- Ascension Parish Sheriff’s Office
- Livingston Parish Sheriff’s Office
- East Baton Rouge Parish Sheriff’s Office
Michigan Woman Sentenced to Six Months for Drug TraffickingRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez on Thursday sentenced Deangelia D. Quintana, 30, of Flint, Michigan, to six months in prison for possession of marijuana with intent to distribute, United States Attorney Ronald W. Sharpe announced. Judge Gomez also sentenced Quintana to three years of supervised release, and ordered her to pay a special assessment of $100 and perform 200 hours of community service.
On June 6, 2016, Quintana pleaded guilty to possession of 19.5 kilograms of marijuana with intent to distribute. According to court records, on Wednesday March 2, 2016, Quintana arrived at the Cyril E. King Airport on St. Thomas from Atlanta, Georgia, on a Delta flight. Based on information received, U.S. Customs and Border Protection (CBP) officers made contact with Quintana as she approached the carousel in the baggage claim area and removed two bags. Quintana was taken to secondary inspection where CBP officers searched her bags and discovered a large bundle of plastic in each bag. CBP discovered approximately 19.5 kilograms of marijuana in the plastic. Quintana admitted that the bags were hers.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and prosecuted by Assistant United States Attorney Everard E. Potter.
Michigan Business Owner Pleads Guilty to Concealing Swiss Bank AccountRead the Press Release
Used Hong Kong Shell Company to Hide More Than $2.6 Million
A Michigan man pleaded guilty today to charges of filing a false tax return, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan.
“Today’s plea is yet another example of the department’s commitment to identifying, investigating and prosecuting those individuals who seek to conceal funds in foreign jurisdictions and evade their tax obligations,” said Principal Deputy Assistant Attorney General Ciraolo. “The days when a shell company created in Hong Kong or other jurisdictions could be used successfully to hide funds in foreign financial accounts are over, and those who continue to engage in this conduct will be held accountable.”
“For Americans who follow the rules and pay their taxes, it is important to see that those who go to great lengths to avoid paying taxes are held accountable,” said U.S. Attorney McQuade.
“There are no safe havens for hiding money in secret bank accounts around the globe,” said Chief Richard Weber of Internal Revenue Service (IRS) Criminal Investigation (CI). “Wealthy individuals hiding assets abroad should know that IRS criminal investigators will find them. You can no longer hide behind a veil of secrecy, sham companies or offshore bank accounts.”
Bernhard Rumbold, a resident of Clarkston, Michigan, and owner of several mining-related businesses in Michigan and Ontario, Canada, pleaded guilty to filing a false amended 2008 individual income tax return. According to the information and the plea agreement, in approximately November 2004, Rumbold transferred more than approximately $2.6 million from his parents’ trust account, which he managed, into a bank account at Credit Suisse Bank AG in Switzerland. Rumbold arranged for the Credit Suisse bank account to be in the name of Wisdom City Limited, a Hong Kong company whose sole purpose was to be the named account holder on foreign bank accounts. Rumbold, who was the beneficial owner of the account, transferred control of the account to a relative in December 2008.
On his 2006 through 2008 individual income tax returns, Rumbold falsely stated that he had no interest in a foreign financial account, and failed to report the interest, dividends and capital gains generated by the Swiss bank account as income. In October 2010, Rumbold signed and filed an amended 2008 individual income tax return in which he again failed to report the interest, dividends and capital gains generated by the Swiss bank account as income.
U.S. District Court Judge Sean Cox for the Eastern District of Michigan scheduled Rumbold’s sentencing for Feb. 8, 2017. Rumbold faces a statutory maximum sentence of three years in prison as well as a period of supervised release and monetary penalties. The plea agreement requires Rumbold to pay restitution for his unpaid tax liabilities for the years 2006 through 2008.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney McQuade commended the special agents of IRS-CI, who conducted the investigation, and Assistant U.S. Attorney Ross MacKenzie and Trial Attorney Kenneth Vert of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Memphis Man Sentenced to 170 Years for Producing Child PornographyRead the Press Release
Memphis, TN – A man who created child pornography and engaged in sexually explicit conduct with two prepubescent female minors has been sentenced to more than a century in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Terrence Milam, 37, of Memphis, Tennessee, produced photographs and videos of himself sexually abusing two female minors between October 2013 and late January 2015. He used a smartphone to record the videos and take the images.
The abuse of the two victims came to light when a Memphis Police Department (MPD) officer on routine patrol discovered Milam and one of the children parked in a deserted school parking lot. When the officer approached the vehicle, he saw Milam struggling to put on his pants. Law enforcement obtained search warrants to review the contents of two cell phones found in the vehicle. This led to discovery of sexually explicit images and the identification of a second victim.
Milam’s abuse of the two children began when one of the victims was approximately nine years old and the other was 11.
In July 2016, Milam entered an Alford plea before U.S. District Judge Samuel H. Mays to five counts of production of child pornography and one count of possession of child pornography.
On Friday, October 7, 2016, Judge Mays sentenced Milam to 170 years in federal prison.
This case was investigated by the FBI’s Child Exploitation Task Force and the MPD.
Assistant U.S. Attorney Deb Ireland prosecuted this case on the government’s behalf.
Marion County man sentenced for unlawful possession of firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Joshua Cline, 23, of Fairmont, West Virginia, was sentenced to 60 months in prison for possessing a firearm during a drug trafficking crime, United States Attorney William J. Ihlenfeld, II, announced.Cline was found in possession of a 9mm caliber pistol in Marion County, West Virginia, which he used in in furtherance of his marijuana distribution operation. He pled guilty to one count of “Possession of Firearm in Furtherance of Drug Trafficking Crime” in June 2016.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Three Rivers Drug Task Force investigated.
U.S. District Judge Irene M. Keeley presided.
Man Charged in Conspiracy to Defraud Regions Bank, Other Financial Institutions Remains a FugitiveRead the Press Release
Memphis, TN – A man who allegedly executed a scheme that defrauded Regions Bank and other financial institutions of more than $200,000 has been indicted on federal charges. He is considered a fugitive at this time. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, Ocho Edi Monso, 52, of Memphis, Tennessee, conspired with Dasse Romain Yobo and others to execute a scheme to defraud Regions Bank and other financial institutions between July 2013 and January 2014.
The conspirators unlawfully obtained money and customer account information from Regions and other financial institutions. The conspirators used the information to call and/or fax the financial institution where the customer maintained their account and falsely represented that they were the customer. Funds were subsequently transferred from the customer’s account to accounts controlled by the conspirators.
As part of the scheme, the conspirators also deposited altered or counterfeit checks to accounts they opened at financial institutions. They then withdrew or transferred funds from the account of deposit to accounts they controlled at other financial institutions.
For example, in December 2013, Monso provided Yobo with fraudulent information to open an account at Regions Bank under the name KEM Construction. That same month, a check payable in the amount of $130,949.96 with an altered payee name was deposited to the account.
In January 2014, the conspirators requested that $77,023.83 be wire-transferred from the KEM Construction account to an account styled "Peniel Energy" in Lawrenceville, GA.
In July 2016, Monso also possessed at least 15 counterfeit and unauthorized access devices and device-making equipment with intent to defraud.
The indictment against Monso was returned under seal last month. The U.S. Attorney's Office filed a motion to unseal the indictment earlier this week due to the belief that Monso is aware that law enforcement officers are looking for him. Thus far, Monso has avoided apprehension.
Monso is being charged with one count of conspiracy to commit bank fraud; one count of possession of 15 or more counterfeit access devices with intent to defraud; and one count of possession of device-making equipment with intent to defraud.
The bank fraud charge carries a penalty of up to 30 years and a fine of up to $1 million. The possession of counterfeit access devices charge carries a penalty of up to 10 years and a fine of up to $250,000. And the possession of device-making equipment charge carries a penalty of up to 15 years and a fine of up to $250,000.
This case is being investigated by the U.S. Secret Service, U.S. Immigration and Customs Enforcement, and U.S. Postal Inspection Service.
Assistant U.S. Attorney Carroll Andre is prosecuting this case on the government’s behalf.
Monso is also facing charges in Baton Rouge, Louisiana. A bench warrant was issued for his arrest after he failed to attend a scheduled court appearance in Baton Rouge on October 4, 2016.
Anyone with information about Monso's whereabouts is asked to contact Sgt. Brad Less with the U.S. Secret Service Economic Crimes Task Force at (901) 544-0333, or U.S. Postal Inspector Kyle W. Parker at (901) 746-1024.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Last of five sentenced to 24 months in prison for role in equipment theft ringRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that the last of five Calcasieu Parish residents was sentenced Thursday to 24 months in prison for conspiring to steal yard equipment worth more than $190,000 from owners living in south central and southwest Louisiana.
Kevin Henry, 44, of Lake Charles, was sentenced by U.S. District Judge Patricia Minaldi on one count of conspiracy to commit transportation of stolen motor vehicles. He was sentenced to three years of supervised release and also ordered to pay $78,513 restitution.
The other defendants were also previously sentenced on one count of conspiracy to commit transportation of stolen motor vehicles. They are:
Melvin Simien III, 34, of Iowa, La., was sentenced April 4, 2013 to 33 months in prison with three years of supervised release. He was ordered to pay $78,513 restitution and complete 50 hours of community service.
Robert Jordan Handy, 26, of Lake Charles, was sentenced April 4, 2013 to 30 months in prison with three years of supervised release. He was also ordered to pay $78,513 restitution.
Donald James Odia Ellis, 25, of Lake Charles, was sentenced April 4, 2013 to six months in prison with three years of supervised release. He was also ordered to complete 50 hours of community service.
Paula Garrick, 46, of Iowa, was sentenced March 7, 2013 to one year of unsupervised probation.
According to the January 3, 2013 guilty plea, Henry initiated the illegal operation by asking Handy to steal lawn mowers and other types of yard equipment. Handy would then ask others to help him steal equipment. Handy would pay those involved for their help and then sell the equipment to Henry who later sold the equipment in Louisiana and Texas. Henry bought newspapers ads in Dallas and Baton Rouge to sell the stolen items.
In one instance, a Louisiana state trooper stopped a GMC Yukon sports utility vehicle(SUV) Sept. 29, 2009 on Interstate 49 in St. Landry Parish that had been pulling a utility trailer containing three zero-turn radius lawn mowers. A car, driven by Garrick, was observed following the trailer and had flashed its headlights as the trooper approached. After stopping the SUV and trailer, the trooper found Simien and Ellis. During the examination of the SUV and trailer, Simien and Ellis fled the scene. They were later apprehended.
Law enforcement determined that two lawn mowers in the trailer were stolen from a dealership in Opelousas, La., and one was stolen from a private residence in Duson, La. The trailer holding the lawn mowers was stolen from a dealership in Duson.
The FBI and Louisiana State Police investigated the case. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
Justice Department Announces ‘Safer Families, Safer Communities’ Website to Enforce Domestic Violence Firearm ProhibitionRead the Press Release
Today, the Justice Department’s Office on Violence Against Women (OVW) announced the launch of the National Domestic Violence and Firearms Resource Center’s Safer Families, Safer Communities website. The website is a project of the newly-established resource center, designed to support the implementation and enforcement of domestic violence firearm prohibitions to reduce firearm-involved domestic violence and homicide.
In order to address the challenges that communities face in responding to firearm-involved domestic violence, Safer Families, Safer Communities provides a comprehensive approach for attorneys, prosecutors, court personnel, judges, domestic violence service providers, law enforcement and communities at large. The website highlights the importance of an approach focused on addressing five key areas: criminal, civil, federal, purchase prevention and resources. All five areas are implicated in successfully enforcing firearms prohibitions and disarming domestic violence offenders who illegally possess firearms.
The federal Gun Control Act prohibits people who are subject to certain orders of protection and those who have been convicted of misdemeanor crimes against select individuals, among other classes of individuals, from purchasing, possessing and/or receiving firearms and ammunition. There are also tribal and state laws that have been enacted to keep guns out of the hands of dangerous domestic violence offenders, but due to the complexity of the laws and lack of guidance, these laws can be under-utilized and under-enforced. Through the assistance available on this website, OVW hopes to help agencies and organizations work together to prioritize victim safety so that communities are able to rise to meet these challenges.
* * *
OVW provides leadership in developing the nation’s capacity to reduce violence against women through the implementation of the Violence Against Women Act (VAWA) and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing 21 federal grant programs, OVW often undertakes initiatives in response to special needs identified by communities facing acute challenges.
Jury Finds Sioux City Man Guilty of Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was convicted by a jury on October 7, 2016, after a 2 ½-day trial in federal court in Sioux City.
Kevin Babb, 55, from Sioux City, Iowa, was convicted of one count of conspiracy distribute 50 grams or more of actual (pure) methamphetamine and three counts of distribution of methamphetamine. The verdict was returned this afternoon following about one hour of jury deliberations.
The evidence at trial showed that Babb was involved in a conspiracy that distributed methamphetamine in the Sioux City area from 2012 through 2014. On three separate occasions between April and July 2014, evidence showed that Babb sold methamphetamine to individuals cooperating with law enforcement.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Babb remains in custody of the United States Marshal pending sentencing. Babb faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, $400 in special assessments, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Special Assistant United States Attorney Nathan W. Nelson and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 16-4041. Follow us on Twitter @USAO_NDIA.
Jury Convicts Buffalo Man on A Cocaine 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 a federal jury has convicted Alexis Javier Centeno-Baez, 22, of Buffalo, NY, of conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine and attempt to possess with intent to distribute 500 grams or more of cocaine. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorneys Wei Xiang and Brendan T. Cullinane, who are handling the case, stated that on August 24, 2015, the U.S. Postal Inspection Service intercepted a package shipped from Puerto Rico to an address in Buffalo. A search warrant was executed and revealed two individually wrapped kilograms of cocaine stuffed inside a LEGO box. During a controlled delivery, Centeno Baez went to the address and retrieved the package. When Drug Enforcement Administration Agents approached to arrest him, the defendant left the package in his car and fled on foot. Agents pursued Centeno Baez and apprehended him about three blocks away.
The conviction is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
Sentencing is scheduled for February 9, 2016 at 12:30 p.m. before U.S. District Judge Richard J. Arcara, who presided over the trial of the case.
Iranian Citizen Pleads Guilty to Conspiracy to Commit Identity Theft and Access Device FraudRead the Press Release
Gulfport, Miss –Milad Kalantari, 31, an Iranian citizen, pleaded guilty on October 6, 2016 before U.S. District Judge Louis Guirola, Jr. to conspiracy to commit identity theft and access device fraud, as well as substantive access device fraud, announced Assistant Attorney General Leslie R. Caldwell, U.S. Attorney Gregory K. Davis of the Southern District of Mississippi and Raymond R. Parmer, Special Agent in Charge of Homeland Security Investigations (HSI).
In June, 2014, HSI Gulfport began an investigation into Milad Kalantari. HSI Gulfport had identified Kalantari as the main facilitator in an international financial fraud organization. Through the course of the investigation, HSI Gulfport identified Kalantari as the owner/operator of numerous websites dedicated to the distribution and sale of stolen/compromised credit card information from victims all over the world, including citizens and banks located in the United States.
Kalantari was ultimately arrested as he made entry into the United States in December 2015, at John F. Kennedy International Airport.
To date, HSI Gulfport has identified approximately 2.5 million credit cards that were sold on Kalantari's websites. The intended loss amount attributable to Kalantari and his organization is currently valued at over $1.2 billion. HSI Gulfport is currently working with Visa, Master Card, American Express, and Discover to assess the damage and loss amount suffered by U.S. victims and banks, attributable to Kalantari's organization.
Kalantari will be sentenced by U.S. District Judge Louis Guirola, Jr. on January 4, 2017. He faces a maximum penalty of 15 years’ imprisonment and a fine of $250,000.00.
This case was investigated by Homeland Security Investigations. Senior Counsel Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Mary Helen Wall are prosecuting the case.
Illegal Alien Sentenced to 15 Months in Prison for Possessing a FirearmRead the Press Release
United States Attorney Deborah R. Gilg announced that David Arriaga, age 23 of Omaha, Nebraska, was sentenced on October 7, 2016, by the Honorable Joseph F. Bataillon. After a trial in July, Judge Bataillon found Arriaga guilty of being an illegal alien in possession of a firearm. Arriaga was sentenced to 15 months’ imprisonment to be followed by two years of supervised release when his incarceration ends, if he isn’t deported.
On October 13, 2015, at approximately 1:38 in the morning, officers of the Omaha Police Department were in the area of 21st and I Streets when they heard three to four gunshots. They were able to see the shots had come from a nearby vehicle. The officers conducted a traffic stop of the vehicle and had the three occupants get out of the car. Arriaga was a backseat passenger. In the car the officers found a Mossberg 12-gauge shotgun in the back seat and three spent shells loose in the car. Arriaga admitted to having fired the gun. Arriaga is in the United States illegally and that status prevents him from legally possessing a firearm.
The case was investigated by the Omaha Police Department, the Department of Homeland Security and the Bureau of Alcohol, Tobacco & Firearms.
INTERPOL Washington Celebrates Coffee with a Cop Day!Read the Press Release
Every day, INTERPOL Washington—U.S. National Central Bureau (USNCB) serves as the national point of contact for coordinating international investigative efforts among INTERPOL member countries, and more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States. We’d like to extend our sincere appreciation to these dedicated public servants—especially to our state and local liaisons in the Washington, D.C., Maryland, and Virginia in the DMV—by Celebrating Coffee with a Cop day.
Coffee with a Cop was started by the Hawthorne, California, Police Department (HPD) in 2011 as a response to tensions between the police and the community. In order to facilitate discussion and forge alliances, the HPD invited residents to join them for coffee. Thus, the first Coffee with a Cop day was born. The program continues to spread with the participation of more than 2,000 law enforcement agencies and the communities they serve. The Department of Justice (Office of Community Oriented Policing Services) has provided funding for the Coffee with a Cop program, helping to spur the growth of the program throughout the United States and abroad, including Canada, Australia, Europe and Africa. Additionally, the President’s Task Force on 21st Century Policy highlighted this program as a way to build community trust and confidence.
Coffee with a Cop is also a partnership initiative. Partnership is a core value of INTERPOL Washington and we continue to grow our global police network by maintaining partnerships with federal and local law enforcement agencies and international organizations. INTERPOL Washington utilizes a blended workforce of permanent Department of Justice employees and detailed personnel. These detailed employees are able to apply investigative techniques from their home agencies to INTERPOL Washington cases. Upon return to their home agencies, the detailed employees are able to leverage INTERPOL’s tools, which strengthens our partnerships initiative.
Currently, we have approximately 70 law enforcement professionals detailed to USNCB. They represent organizations as diverse as the Federal Bureau of Investigation, to our state and local police representatives. Assistant Commander Micah Andersen (Sheriff’s Office in Story County, Iowa) and Sergeant William Heggs (Maryland Police Department, Prince Georges County) are standout examples of the detailees’ teamwork between the USNCB and U.S. law enforcement. They both support our state and local outreach mission, promoting programs that help police departments to accomplish their jobs.
One example of the partnership that we celebrate on Coffee with a Cop day, and one that both Micah and William promote, is called Federation. Under federation, U.S. law enforcement agencies can query both domestic and INTERPOL indices in a single search. This enables officers to find out in real-time whether the subject of an investigation poses a known transnational and or terrorist criminal threat. These combined searches can be conducted from both fixed and mobile platforms, including vehicle-mounted and hand-held devices. Currently, 12 states and the District of Columbia participate in federation.
Each state, and an increasing number of major cities across the United States, also host INTERPOL liaison offices to coordinate international criminal investigative requests for assistance from INTERPOL Washington. At INTERPOL Washington, we are committed to supporting U.S. law enforcement and we are constantly improving our processes and programs. So, today we tip our (coffee) cups to all of our law enforcement partners and wish you a great day!
Domestic Focus . . . International Reach
INTERPOL Washington Sergeant William Heggs (Prince George's County, Maryland) (left) and Assistant Commander Micah Andersen (Story County, Iowa) support critical partnerships between INTERPOL Washington and law enforcement agencies across the nation. INTERPOL Washington As part of Coffee with a Cop day, police officers from the Metropolitan Police Department in Washington, D.C., spent a few minutes with our staff discussing various resources available to law enforcement through the U.S. National Central Bureau.Requests for international criminal assistance by a local, state, or tribal law enforcement office may be sent through the appropriate liaison office or directly to INTERPOL Washington (24/7). These INTERPOL Washington services are available to law enforcement only. Private citizens and non-law enforcement entities should always contact their local law enforcement agencies or other appropriate state, local or federal authorities for assistance.
Houston Doctor Sentenced in Conspiracy to Defraud MedicareRead the Press Release
HOUSTON - A Houston doctor has been ordered to federal prison for engaging in a conspiracy to defraud Medicare of more than $6.6 million, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Dr. Leonard Kibert, 65, and his medical clinic administrator, Tsolak Gevorgyan, 30, of all 41 and 44 counts as charged, respectively, following a three-week trial in February 2016.
Today, U.S. District Judge Keith P. Ellison, who presided over the trial, sentenced Kibert to 63 months in prison to be followed by three years of supervised release. He was further ordered to pay restitution in the amount of $2.89 million. Gevorgyan will be sentenced on Nov. 8, 2016. Another defendant - Robert Manning, 61, of Houston – had pleaded guilty for his role and was sentenced earlier this week to 12 months and one day in prison. Two others are also pending sentencing.
The evidence at trial established that all of the Medicare billing for alleged diagnostic testing at the New Life Sleeping & Allergy Disorder Center, located at 2117 Chenevert Street in Houston, was fraudulent because the testing either was never performed or was not medically necessary. Kibert owned New Life and Gevorgyan was the manager. Kibert and Gevorgyan filed false claims with Medicare for medical procedures which either were never performed or were not medically necessary.
Kibert was the only doctor working at the New Life Center. The patients were brought to the clinics by recruiters/marketers like Manning who Gevorgyan paid by for bringing the patients.
Kibert was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Texas Medical Board suspended Kibert’s license to practice medicine on Aug. 12, 2016 based on his convictions.
The criminal charges are the result of a joint investigation conducted by agents of the FBI, U.S. Department of Health and Human Services - Office of Inspector General, Internal Revenue Service - Criminal Investigation and the Medicaid Fraud Control Unit of the Texas Attorney General's Office. Assistant U.S. Attorney (AUSA) Al Balboni and Special AUSA Rodolfo Ramirez prosecuted the case.
Heroin, Cocaine Trafficker Pleads GuiltyRead the Press Release
PROVIDENCE, R.I. – Tomas Martinez, 27, of Pawtucket, pleaded guilty on Thursday to federal heroin and cocaine trafficking charges. Appearing before U.S. District Court Chief Judge William E. Smith, Martinez pleaded guilty to two counts of possession of heroin with the intent to distribute and one count of cocaine with the intent to distribute.
Martinez’s guilty plea is announced by United States Attorney Peter F. Neronha, Michael J. Ferguson, Special Agent in Charge of the DEA’s New England Field Division, and Pawtucket Police Chief Paul King.
According to court documents and information presented to the court, in early January 2016, based on information developed by DEA agents, the Rhode Island DEA Drug Task Force launched an investigation into Martinez’s drug trafficking activities. The investigation included several undercover purchases of heroin from Martinez. Law enforcement surveillance of Martinez included seeing Martinez make several visits to a Weeden Street, Pawtucket residence.
In March 2016, members of the Pawtucket Police Department’s Special Squad developed information that a drug stash house was being operated out of a first floor apartment at 603 Weeden Street, the same location Martinez was seen by law enforcement visiting on several occasions. On March 3, 2016, DEA Drug Task Force agents and Pawtucket Police Department detectives executed a court authorized search warrant at the apartment, and seized in excess of 100 grams of heroin, cutting agents, and other items used in the packaging and distribution of heroin and cocaine.
While law enforcement was conducting a search of the residence, Martinez arrived by vehicle and was immediately detained by law enforcement. A search of Martinez’s person and vehicle resulted in the seizure of 3.6 grams of heroin, 1.2 grams of cocaine, and $8,370 in cash.
Martinez has been detained since his arrest. He is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on January 3, 2017.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Gulfport Resident Pleads Guilty to Using Internet to Entice a MinorRead the Press Release
Gulfport, Mississippi. – Greg L. Dodd, 54, of Gulfport, pled guilty in U.S. District Court on October 6, 2016 to using the internet to entice a minor to engage in illegal sexual activity, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Raymond Parmer of Homeland Security Investigations.
From February, 2015, to April, 2016, Dodd attempted to initiate the transmission of the email address information of a child under the age of 16 years old with the intent to entice, encourage, offer, or solicit the minor child to engage in a sexual activity for which he could be criminally prosecuted for sexual battery under Miss. Code Annotated Sec. 97-3-95(1)(d).
Dodd will be sentenced on January 5, 2017, at 10:00 a.m. by Chief U. S. District Judge Louis Guirola, Jr., and faces a maximum sentence of 5 years in prison and a $250,000 fine.
This case was investigated by the Gulf Coast Cyber Crimes Task Force and Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Andrea Jones
Greenfield Restaurant Owner Sentenced for Cooking the BooksRead the Press Release
BOSTON – A Montague man was sentenced today in U.S. District Court in Springfield in connection with filing false income taxes associated with his restaurant.
Ioanis Dimitriou, 49, was sentenced by U.S. District Court Judge Mark G. Mastroianni to three months in prison, one year of supervised release and ordered to pay a fine of $219,960. In April 2016, Dimitriou pleaded guilty to five counts of filing false tax returns from 2008 to 2012.
Dimitriou was the owner of a restaurant in Greenfield, Mass. that generated a substantial amount of cash sales, which he took from the business and did not declare as income. Dimitriou systematically deleted records from his computer system and kept two sets of books that depicted the actual sales of the business and the sales disclosed on his tax returns. As a result, Dimitriou paid only five percent of the more than $232,000 in taxes that he owed.
United States Attorney Carmen M. Ortiz and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Unit prosecuted the case.
Green Bay Man Sentenced for Social Security Disability FraudRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that Randall J. Frisque (age: 58) of Green Bay, Wisconsin, was sentenced to federal prison by Chief United States District Judge William C. Griesbach. Frisque had previously entered a guilty plea to a charge of theft of government property in violation of Title 18, United States Code Section 641.
According to the plea agreement and other documents filed with the court, Frisque was a dump truck operator on state road projects working between 50 and 60 hours a week while continuing to collect Social Security Disability payments. Witnesses told authorities that Frisque often bragged about his receipt of the fraudulent payments, telling them “this was his payback.”
In pronouncing sentence, Chief Judge Griesbach noted the very serious nature of the fraud and noted Frisque’s dismissive attitude toward his criminal actions. Ultimately, Frisque was sentenced to 16 months in prison followed by 2 years of Supervised Release. He was also ordered to pay approximately $130,000 in restitution to the Social Security Administration and Medicare.
This case was investigated by the U.S. Social Security Administration and the U.S. Department of Health and Human Services, Office of the Inspector General. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
# # # # #
Four Individuals Guilty of Conspiracy to Commit Federal Programs Bribery, Honest Services Wire Fraud and ExtortionRead the Press Release
SAN JUAN, Puerto Rico– Today, after a 25-day trial before U.S. District Court Judge Pedro A. Delgado-Hernández, three women and one man were found guilty of wire fraud, bribery and extortion charges, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The four defendants participated in several schemes to corruptly give things of value to public officials within the government of the Commonwealth of Puerto Rico in exchange for favorable treatment and awarding of government contracts to various corporations. The 25-count indictment filed on December of 2015, included charges of conspiracy to commit federal programs bribery and honest services wire fraud, wire fraud, federal program bribery, extortion through fear of economic harm, money laundering, false declarations before a grand jury, and obstruction of justice.
The defendants who were found guilty today are:
- Sally López Martínez, Administrator of the Commonwealth of Puerto Rico’s “Administración de Desarrollo Laboral” (Workforce Development Administration) (hereinafter “ADL”). She was found guilty of Count One, Conspiracy to Commit Federal Programs Fraud and Wire Fraud; Count Two, Conspiracy to Commit Honest Services Wire Fraud; Counts Three to Five, Honest Services Wire Fraud; and Count Eleven, Receipt of a Bribe by Agent of an Organization Receiving Federal Funds.
- Ivonne M. Falcón Nieves, Vice President of the Puerto Rico Aqueduct and Sewer Authority (“AAA”), and former Treasurer of AAA. She was found guilty of Count One, Conspiracy to Commit Federal Programs Fraud and Wire Fraud; Count six, Conspiracy to Commit Honest Services Wire Fraud; Counts Seven to Nine, Honest Services Wire Fraud; Count Thirteen, Receipt of a Bribe by Agent of an Organization Receiving Federal Funds; and Count Seventeen, Extortion Through Fear of Economic Harm.
- Marielis Falcón Nieves, sister of Ivonne M. Falcón Nieves. She was found guilty of Count Seventeen, Extortion Through Fear of Economic Harm.
- Glenn O. Rivera Pizarro, Special Assistant for Administration at the House of Representatives of Puerto Rico. He was found guilty of Count Twenty-Four, Conspiracy to Commit Wire Fraud; and Count Twenty-Five, Intentional Misapplication of Property by Agent of an Organization Receiving Federal Funds.
Their sentences were scheduled for February 6, 2017.
The other defendants are:
5. Anaudi Hernández Pérez, businessman and political fund raiser. Although not named in official corporate records, he exercised de facto control over numerous companies doing business with agencies and public corporations of the Commonwealth of Puerto Rico. He plead guilty on February 18, 2016.
6. Sonia M. Barreto Colón, Purchasing Director of the Commonwealth of Puerto Rico’s Aqueduct and Sewer Authority. She plead guilty on May 31, 2016.
7. Javier A. Muñiz Álvarez, businessman. Utilized the Company JM Profesional (sic) & Training Group, Inc. to secure contracts from the Commonwealth of Puerto Rico. He plead guilty on June 29, 2016.
8. Carlos F. Luna Cruz, businessman. He worked for JM Profesional (sic) & Training Group, Inc., and plead guilty on April 28, 2016.
9. Xavier González Calderón, Administrator for the House of Representatives of the Commonwealth of Puerto Rico. He plead guilty on August 9, 2016.
10. Victor R. Burgos Cotto, Director of Technology for the House of Representatives. He plead guilty on July 13, 2016.
According to the evidence presented at trial, Hernández Pérez utilized his political and personal connections with high ranking members of the current government in order to have “his people” appointed in critical government positions within the new administration which took over after the November 2012 elections. He also provided those individuals with things of value in exchange for government contracts, benefits and preferential treatment for several of his corporations. The indictment focused on benefits Hernández Pérez, his co-conspirators, and corporate entities, obtained from the Commonwealth of Puerto Rico’s “Administración de Desarrollo Laboral” (Workforce Development Administration) (hereinafter “ADL”), the Commonwealth of Puerto Rico’s Aqueduct and Sewer Authority, and the Puerto Rico House of Representatives.
Hernández Pérez and his co-conspirators utilized their government influence to receive an unfair competitive advantage over their competitors, in that they: a) received preferred opportunities on certain government “request for proposals” (“RFPs”); b) received guidance from agency employees on the proper format and content of proposals and bids for government contracts; c) had access to speak and meet with critical employees in decision making positions within the agencies, departments and government corporations; d) received guidance on how to structure bids and proposals in order to avoid the formal bidding process required by law; e) demanded and were provided with explanations from agency employees when their proposals or bids were not selected.
Once awarded the government contracts, Hernández Pérez and his co-conspirators would utilize, often without proper contractual authority, subcontractors who would perform the work defined in the contracts. On many occasions, Hernández Pérez and his co-conspirators provided substandard work on their contractual obligations in that they: a) failed to make the required payments to suppliers, subcontractors and creditors; b) failed to abide by the terms of the contract regarding performance results/follow up as required under the contract; c) failed to competently provide the services they were contracted to perform.
Defendants Ivonne Falcón and Marielis Falcón, were also charged with Hobbs Act extortion under fear of economic harm. Hernández Pérez and unindicted co-conspirators would utilize their contacts and influence within at least one government dependency (the AAA) to secure, for a fee, the release of legitimate payments due to other corporations, which lacked the current connections within the government. In particular, Hernández Pérez and his associates, obtained property not due to them, specifically, $100,000.00 from Contractor A, in exchange for utilizing his connections within AAA in order to secure a portion of the money owed (approximately $1,000,000) to Contractor A, with Contractor A’s consent, induced through the wrongful use of a fear of economic loss. Moreover, the Falcón sisters, aided and abetted each other to commit extortion. Defendant Ivonne M. Falcón Nieves utilized her position at AAA in order to enable her sister, defendant Marielis Falcón Nieves, to obtain property not due to her, specifically, cash payments, check payments, payments to contractors, and the performance of residential tree trimming, from Contractor A, with Contractor A’s consent, induced through the wrongful use of a fear of economic loss.
The case was investigated by the FBI’s San Juan Division. The case is being prosecuted by First Assistant U.S. Attorney Timothy Henwood and José Capó Iriarte, Chief of the Criminal Division. If found guilty, the defendants are facing possible sentences of up to five years for the conspiracy to commit federal programs fraud and wire fraud, up to 10 years for honest services fraud, up to 20 years for money laundering, Hobbs Act, obstruction of justice, and conspiracy to commit honest services fraud.
Fort Worth, Texas, Man Sentenced to 30 Years in Federal Prison for Federal Child Pornography OffensesRead the Press Release
FORT WORTH, Texas — A Fort Worth, Texas, man was sentenced this morning by U.S. District Judge John McBryde to 30 years in federal prison and 8 years of supervised release for child pornography offenses, announced John Parker, U.S. Attorney for the Northern District of Texas.
Ronald Sweatt, 48, pleaded guilty, in May 2016 to one count of production of child pornography.
According to the indictment, in June 2015 Sweatt persuaded a minor to engage in sexually explicit conduct outside of the United States for the purpose of producing a video.
Officers with the Fort Worth Police Department executed a search warrant at Sweatt’s home on December 2, 2015 and seized numerous computer media items, including a laptop computer and external hard drive. A forensic examination revealed the video previously described. Sweatt agreed to be interviewed and admitting to living in Mexico for the last 15 years and that he moved back in June 2015. Sweatt also admitted to knowing the video that he produced and transported into the United States depicted a minor engaging in sexually explicit conduct.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fort Worth Police Department investigated. Assistant U.S. Attorney A. Saleem prosecuted.
# # #
Former Stamford Resident Sentenced to 10 Years in Prison for Orchestrating Murder for Hire SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LARRY TALLEDO-TORREJON, 30, a citizen of Peru last residing in Stamford, was sentenced today by U.S. District Judge Vanessa L. Bryant to 120 months of imprisonment, followed by three years of supervised release, for orchestrating a murder for hire scheme. TALLEDO-TORREJON also was ordered to pay a $150,000 fine.
According to court documents and statements made in court, in early December 2015, TALLEDO-TORREJON, as part of a contract to purchase a restaurant in Stamford for $300,000, provided the seller of the restaurant with $150,000 in cashier checks and an additional $150,000 in checks drawn on bank accounts with insufficient funds. On December 5, TALLEDO-TORREJON directed an individual who owed him $5,000 to follow the manager of the restaurant (“G.R.”) to his home in New York and to murder him. In exchange for doing so, TALLEDO-TORREJON agreed to forgive the $5,000 debt and to pay the individual an additional $5,000 in cash. The individual subsequently contacted law enforcement to report the incident, and then contacted TALLEDO-TORREJON to tell him that he had kidnapped G.R. and was holding him.
On December 7, 2015, TALLEDO-TORREJON provided the individual with a manila folder containing two copies of a receipt that falsely stated that TALLEDO-TORREJON had provided G.R. with $150,000. TALLEDO-TORREJON directed the individual to provide the receipts to G.R., coerce G.R. into signing them, and then kill him. TALLEDO-TORREJON told the individual that his pre-existing debt had been cancelled, and also suggested that they could start a business kidnapping and extorting money from persons.
On December 8, TALLEDO-TORREJON made a complaint with the Stamford Police Department falsely claiming that G.R. had stolen $150,000 that TALLEDO-TORREJON had provided G.R. to complete the purchase of the restaurant.
TALLEDO-TORREJON was arrested on December 8, 2015, after the individual provided him with the receipts signed by G.R., and TALLEDO-TORREJON provided the individual with $500 in partial payment for the murder.
TALLEDO-TORREJON has been detained since his arrest. He pleaded guilty to the offense on June 15, 2016.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant U.S. Attorney Rahul Kale.
Former President of the Costa Rican Soccer Federation and Member-Elect of the FIFA Executive Committee Pleads Guilty to Racketeering and Corruption ChargesRead the Press Release
Earlier today in federal court in Brooklyn, Eduardo Li pleaded guilty to racketeering conspiracy, wire fraud, and wire fraud conspiracy in connection with his receipt of bribes in exchange for his awarding contracts for the media and marketing rights to FIFA World Cup qualifier matches and his authorization of international friendly matches played by the Costa Rican national soccer team, among other conduct. Li, the president of the Costa Rican soccer federation (FEDEDUT) from 2007 to 2015, was a member-elect of the FIFA executive committee at the time of his arrest in Zurich on May 27, 2015 and a member of the CONCACAF executive committee from 2013 to 2015. As part of his plea, Li agreed to forfeit $668,000. At sentencing, Li faces a maximum sentence of 20 years for each count. Today’s plea proceeding took place before United States District Judge Pamela K. Chen.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director in Charge, FBI, New York Field Office; and Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation, Los Angeles Field Office.
According to court filings and facts presented during the plea proceeding, Li negotiated and accepted bribes totaling hundreds of thousands of dollars in exchange for exercising his influence as the president of FEDEFUT to award a Florida sports marketing company a contract for the media and marketing rights to the Costa Rican national soccer team’s home World Cup qualifier matches for the 2022 edition of the World Cup. These bribes were transmitted from U.S. bank accounts to Li using intermediaries in the United States and Costa Rica. Li also accepted tens of thousands of dollars in bribes, which were also transmitted from bank accounts in the United States, in exchange for exercising his influence as president of FEDEFUT to authorize friendly matches played by the Costa Rican national soccer team.
In addition, Li agreed to accept a $500,000 bribe from intermediaries in Panama in exchange for exercising his influence as president of FEDEFUT to award an American company the contract to serve as the uniform sponsor for the Costa Rican national soccer team. The intermediaries told Li not to tell anyone at the uniform sponsor about the bribe. Li received approximately $230,000 of the bribe money from the intermediaries in cash United States currency in 2014 and 2015 but was arrested before he could receive the balance.
Finally, Li embezzled for his own use over $90,000 of funds that FIFA sent to FEDEFUT to support the 2014 Under 17 FIFA Women’s World Cup soccer tournament, which was held in Costa Rica. Li diverted these funds through a scheme involving bogus invoices.
The guilty plea announced today is part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section, and the Fraud Section, as well as from INTERPOL Washington.
Assistant U.S. Attorneys Evan M. Norris, Amanda Hector, Paul Tuchmann, Nadia Shihata, Keith D. Edelman, and Brian D. Morris of the Eastern District of New York are in charge of today’s prosecution.
The government’s investigation is ongoing.
The Defendant:
EDUARDO LI
Age: 57
Nationality: Costa RicaE.D.N.Y. Docket No. 15 CR 252 (S-1)
Former New York City Human Resources Administration Supervisor Sentenced to 23 Months in Prison for Defrauding Two Public Assistance Programs of More Than $1.8 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that CHERRISE WATSON-JACKSON, a/k/a “Reesie,” a former supervisor with the New York City Human Resources Administration (“HRA”), was sentenced in Manhattan federal court today to 23 months in prison for defrauding two public assistance programs, which she helped to administer, of more than $1.8 million. WATSON-JACKSON, who pleaded guilty in early May 2016 to one count of conspiracy to commit mail fraud and one count of conspiracy to commit wire fraud, was sentenced by U.S. District Judge John G. Koeltl.
U.S. Attorney Bharara stated: “In schemes that netted more than $1.8 million, Cherrise Watson-Jackson looted the very public assistance programs that she was responsible to administer. Not only did Watson-Jackson siphon money meant to assist those less fortunate, by doing so, she committed federal crimes that now leads her to prison.”
According to the Complaint, Superseding Indictment, sentencing submissions, other information in the public record, and today’s proceeding:
HRA is an agency of the City of New York responsible for administering various public assistance programs. Among other things, HRA provides temporary help to individuals and families with social service and economic needs to assist them in reaching self-sufficiency. Its services include, among other things, administering the federally-funded Supplemental Nutrition Assistance Program (“SNAP”) (more commonly known as “food stamps”), and providing rental assistance to low-income families and individuals.
Starting in 1993, WATSON-JACKSON worked at HRA, most recently as a supervisor in a job center in Queens, New York. In that capacity, she supervised a group of other supervisors who in turn were responsible for teams of employees who review and determine eligibility for public assistance clients. Since early 2012, and continuing until December 2013, WATSON-JACKSON abused her position by engaging in a scheme to defraud two of the public assistance programs that she was charged to help administer. The first of the two schemes involved WATSON-JACKSON fraudulently loading electronic benefit transfer (“EBT”) cards
with funds from SNAP, and the cards were then used by co-conspirators throughout the New York City area. The second scheme involved WATSON-JACKSON fraudulently causing rental assistance checks to be mailed to co-conspirators who posed as “landlords” of low-income tenants. Co-conspirators then cashed and/or assisted others to cash the fraudulently obtained checks. The two schemes resulted in the loss of more than $1.8 million in public funds.
* * *
In addition to her 23-month prison term, WATSON-JACKSON, 45, of Queens, New York, was sentenced to three years of supervise release, and ordered to forfeit $1,809,811.75 and to pay restitution in the same amount.
WATSON-JACKSON was arrested in early December 2015, along with Maurice Cromwell, a/k/a “Reese,” 40, of Staten Island, New York; Derrick Williams, a/k/a “Blood,” 35, of Queens, New York; Isaac Allen, 40, of Brooklyn, New York; Corey Brock, a/k/a “Cee,” 36, of Queens, New York; Vernecka Petersen-Fowler, 44, of Brooklyn, New York; Kevin Williams, 38, of Queens, New York; Jaron Annuziata, 36, of Brooklyn, New York; Beverly Franklin, 38, of Queens, New York; Beverly Lord, 54, of Queens, New York; Yesenia Depena, 25, of Brooklyn, New York; and Gerard Stokes, 32, of Queens, New York. To date, all defendants except Lord, Depena, and Stokes have pleaded guilty to their participation in one or both fraudulent schemes, and Cromwell, Derrick Williams, Allen, Brock, Petersen-Fowler, Annuziata, and Franklin have been sentenced. Cromwell and Derrick Williams, who served in managerial roles in both schemes, were sentenced to 27 months in prison and 37 months in prison, respectively; Allen was sentenced to 18 months in prison; Brock was sentenced to five years of probation with special conditions of nine months of home confinement and 200 hours of community service; Petersen-Fowler was sentenced to three years of probation with a special condition of eight months of home confinement; Annuziata was sentenced to three years of probation with a special condition of eight months of home confinement; and Franklin was sentenced to three years of probation. All of the defendants that have been sentenced were also ordered to forfeit proceeds of the fraud and to pay restitution.
U.S. Attorney Bharara praised the work of the New York City Department of Investigation, the New York State Inspector General Catherine Leahy Scott, and the Federal Bureau of Investigation.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Daniel C. Richenthal and Andrew D. Beaty are in charge of the prosecution.
The pending charges against Beverly Lord, Yesenia Depena, and Gerard Stokes are merely accusations, and these defendants are presumed innocent.
Former District of Columbia Attorney Indicted on $2 Million Investment Fraud SchemeRead the Press Release
A federal grand jury sitting in the District of Columbia returned an indictment yesterday against a former attorney, charging her with conspiracy, securities fraud, obstruction of justice and failure to timely file tax returns and pay taxes, all federal offenses, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division. She also was charged with first-degree fraud, a District of Columbia offense.
The indictment alleges that Brynee Baylor, a former partner in the District of Columbia firm of Baylor & Jackson, conspired with a Pennsylvania man and his company known as Milan Group to recruit investors to a purported trading program that promised extremely large profits in a short period of time with little or no risk. The purported trading program was sometimes called a private placement and involved the use of trading platforms and monetizing and leasing foreign bank instruments.
According to the indictment, in 2010 and 2011, Baylor caused more than $2 million of investor funds to pass through the Baylor & Jackson trust account. More than half of the investor funds went for the benefit of Baylor, the Pennsylvania man, Milan Group and Baylor & Jackson. Baylor falsely assured investors that the purported trading program was legitimate, that it had little, if any, risk and that she had observed investors successfully complete transactions with Milan Group. In reality, Milan Group failed to complete any such transactions and failed to return any of the money invested.
In 2011, the Securities and Exchange Commission (SEC) sued Baylor and others for fraud in connection with the purported trading program. The indictment alleges that Baylor endeavored to obstruct justice in the SEC case by making false statements in depositions and in an affidavit.
If convicted, Baylor faces a statutory maximum sentence of five years in prison on the conspiracy count, 20 years in prison on the securities fraud count, 10 years in prison on each of the six counts of first degree fraud, 10 years in prison for the obstruction of justice count, and one year in prison on each of two counts of failing to timely file tax returns and pay taxes. Baylor will also face a term of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo thanked the SEC for its invaluable assistance and commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorneys Kenneth Vert and Jeffrey McLellan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Five Individuals Arrested for Bank FraudRead the Press Release
SAN JUAN, P.R. – On October 5, 2016, a Federal grand jury returned a nineteen count indictment against five individuals for conspiracy to commit bank fraud, bank fraud, unlawful transfer, possession, and use of means of identification during and in relation to an enumerated felony, and access device fraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the United States Secret Service.
The indictment alleges that from on or about May, 2012, through on or about March, 2015, Frankie Ortiz-Jaime, Wilfredo Reyes-Hiche, Cesar Quiles-Perez, Linda Rivera-Ortiz and Javier Torres-Garay knowingly and willfully combined, conspired and agreed with each other, to execute a scheme and artifice to defraud and to obtain money from Banco Popular de Puerto Rico, First Bank, and Oriental Bank which are federally insured financial institutions and to obtain monies and funds owned by and under the custody and control of the financial institutions.
As part of the conspiracy the defendants conspired to engage in deceptive conduct designed to fraudulently obtain monies and credit from federally insured financial institutions for the purchase of goods and the distribution of monies to the members of the conspiracy. The indictment alleges that the defendants would contact Telebanco Popular to request loans using the name and personal identification information of a recruit and proceed to provide false employment and income information. The recruits, aided and abetted by the other members of the conspiracy, would submit false documentation regarding employment and income in order to obtain loans, lines of credit, and credit cards from the financial institutions.
According to the indictment, the defendants would receive electronic transfers or official checks for the loan proceeds and divide the proceeds with other members of the conspiracy. In some instances, loan proceeds and credit cards were used to purchase vehicles, such as a BMW, a Raptor and Polaris. They would also utilize the credit cards to obtain cash and make other retail purchases.
The indictment includes a forfeiture allegation of any property, constituting, or derived from, proceeds obtained, directly or indirectly, as a result of the violations such as U.S. Currency totaling $285, 270, and three vehicles.
“Sophisticated financial crimes such as this one cause painful long lasting loss to law abiding businesses thereby affecting our fragile economy. Prevention and prosecution of crimes of this nature will remain a top priority for the U.S. Attorney’s Office.” said United States Attorney, Rosa Emilia Rodríguez-Vélez.
The case is being prosecuted by Assistant U.S. Attorney Seth A. Erbe. The case was investigated by the United States Secret Service.
If convicted on charges of bank fraud, the defendants face a sentence of up to thirty (30) years of imprisonment. Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Finds Albuquerque Man Guilty on Commercial Sex Trafficking ChargeRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict this morning finding Shane Roach, 27, guilty on a commercial sex trafficking charge, announced U.S. Attorney Damon P. Martinez, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Gorden G. Eden, Jr., of the Albuquerque Police Department (APD).
Roach, an Albuquerque resident, was arrested on July 1, 2015, on a criminal complaint charging him with commercial sex trafficking. Roach subsequently was indicted and charged with using force, threats of threats, and coercion to force a victim to engage in commercial sex acts. The indictment alleged that Roach committed the offense between May and June of 2015 in Bernalillo County, N.M.
Trial of Roach on the commercial sex trafficking charge began on Oct. 4, 2016 and concluded this morning when the jury returned a guilty verdict against Roach.
The victim, who testified at trial, told the jury that in early 2015 she was a heroin addict who turned to prostitution to support her heroin habit. The victim met Roach in late April 2015, and turned to him for help shortly thereafter when she fell on hard times. For the next month and a half, Roach was the victim’s pimp and forced her to engage in prostitution. The victim said that, during that time, Roach forced her to engage in sex with men four or five times a day, and that Roach kept all her earnings, amounting to $400.00 to $500.00 a day. The victim also testified that Roach beat her on a number of occasions, brandished a firearm at her, and threatened to harm her family if she left him. During the month and a half during which she was sex trafficked by Roach, the victim had only three or four days off.
An APD detective testified that on May 27, 2015, while acting in an undercover capacity, he arranged to meet the victim at an Albuquerque-area hotel after getting her contact information from an online prostitution advertisement. The meeting was brief because the victim recognized the detective’s partner, who was outside, as a police officer, and told the undercover officer that there were officers outside. The undercover officer testified that, on June 10, 2015, APD received a call for help from the victim and he was one of the officers who responded. During that meeting, the victim told APD that she was being sex trafficked by Roach, and the investigation leading to Roach’s conviction began that day.
Roach testified in his own defense. While generally acknowledging that he was the victim’s pimp, Roach denied using threats of force, force or coercion to force to the victim to engage in commercial sex acts.
The jury deliberated about three hours before returning a guilty verdict.
The judge ordered Roach to surrender himself to the U.S. Marshals Service by 3:00 p.m. today. Roach is to be detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Roach faces a statutory mandatory minimum of 15 years and a maximum of life in prison.
This case was investigated by the HSI office in Albuquerque and APD’s Vice Unit. Assistant U.S. Attorneys Norman Cairns and Kimberly A. Brawley are prosecuting the case.
Federal Indictment Charges Two for Domestic Violence Resulting in Maryland MurderRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Maliek Kearney, age 35, and Dolores Delgado, age 31, both of San Antonio, Texas, for interstate travel to commit domestic violence resulting in death, in connection with the death of Karlyn Ramirez. The indictment was returned on October 4, 2016, and unsealed upon the arrest of the defendants in San Antonio on October 6, 2016.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Commanding General Mark S. Inch of the U.S. Army Criminal Investigation Command; and Anne Arundel County Police Chief Tim Altomare.
“The indictment alleges that Maliek Kearney and Dolores Delgado conspired to murder Karlyn Ramirez, a U.S. Army private first class based at Fort Meade, Maryland,” said U.S. Attorney Rod J. Rosenstein. “I am grateful to the police and prosecutors who have been working tirelessly to pursue justice in this case.”
According to the indictment, on August 24, 2015, Kearney and Delgado traveled from South Carolina to Maryland with the intent to kill Karlyn Ramirez, the spouse of Maliek Kearney, and used a firearm to murder Ramirez.
Both defendants face a maximum sentence of life in prison. The defendants each had an initial appearance on October 6, 2016 in U.S. District Court for the Western District of Texas in San Antonio. Both were ordered to be detained pending detention hearings. Kearney’s detention hearing is scheduled for October 13, 2016 at 10 a.m. and Delgado’s detention hearing is scheduled for October 18, 2016 at 9:00 a.m., both in U.S. District Court in San Antonio.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI Baltimore, Army CID, and Anne Arundel County Police Department for their work in the investigation, and thanked the U.S. Attorney’s Office for the Western District of Texas and FBI San Antonio for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick, Kenneth S. Clark and John F. Purcell, Jr., who are prosecuting the case.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.— The results of the October 2016 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Jaime Centeno-Martinez. Reentry of Removed Alien. Centeno-Martinez, 39, is charged with having returned to the United States unlawfully after being deported in December 2006 from Douglas, Arizona. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Thomas Heath Davis. Possession of LSD with Intent to Distribute, Using a Drug-Involved Premise, and Possession of Firearms in Furtherance of Drug Trafficking Crimes. Davis, 36, of Tulsa, is charged with possession with intent to distribute 10 grams or more of LSD and for maintaining a place for the purpose of distributing LSD, ecstasy, marijuana, and psychedelic mushrooms. In addition, he is charged with possession of a .223 caliber semi-automatic rifle, an IMI Uzi 9mm semi-automatic rifle, and two .45 caliber semi-automatic pistols in furtherance of drug trafficking crimes. If convicted, Davis faces the statutory minimum penalty of 10 years in prison and a $10,000,000 fine for possession of LSD with intent to distribute; a statutory maximum penalty of 20 years in prison and a $500,000 fine for using a drug-involved premise; and a statutory minimum penalty of five years up to life in prison and a $250,000 fine for possession of firearms in furtherance of drug trafficking crimes. The Drug Enforcement Administration is the investigating agency.
Marco Alberto Lara. Possession of an Unregistered Firearm and Alien Unlawfully in the United States in Possession of Firearms. Lara, 34, is charged with possession of a 20 gauge weapon made from a shotgun not registered to him in the National Firearms Registration and Transfer Record. In addition, he is charged with being in the United States unlawfully and in possession of a 20 gauge weapon made from a shotgun and a .308 caliber semi-automatic rifle. If convicted, Lara faces a statutory maximum penalty of 10 years in prison and a $10,000 fine for possession of an unregistered firearm and a statutory maximum penalty of 10 years in prison and a $250,000 fine for being unlawfully in the United States in possession of firearms. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Chantz Brandon Lucas. Drug Conspiracy, Attempted Possession with Intent to Distribute Cocaine, and Use of a Communication Facility in Committing, Causing, and Facilitating the Commission of a Drug Trafficking Felony. Lucas, 41, of Owasso, is charged with conspiring to distribute and possess with intent to distribute 500 grams or more of cocaine, and attempting to possess with the intent to distribute 500 grams or more of cocaine. In addition, he faces four counts of using a telephone in committing, causing and facilitating the commission of a drug trafficking felony. The Federal Bureau of Investigation is the investigating agency.
Irma Marquez-Negrete. Reentry of Removed Alien. Marquez-Negrete, 23, is charged with having returned to the United States unlawfully after being deported in November 2015 from El Paso, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Daniel Mejia. Reentry of Removed Alien; Alien Unlawfully in the United States in Possession of a Firearm and Ammunition; and Felon in Possession of a Firearm and Ammunition. Mejia, 28, is charged with having returned to the United States unlawfully after being deported in September 2007 from Calexico, California. In addition, he is charged with possession of a 9mm x 19 caliber pistol and ammunition and for being a felon in possession of a firearm and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine for unlawful reentry into the United States; and a statutory maximum penalty of 10 years in prison and a $250,000 fine for the remaining charges. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Gustavo Armando Monreal-Rodriguez. Reentry of Removed Alien. Monreal-Rodriguez, 23, is charged with having returned to the United States unlawfully after being deported in June 2015 from Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Jennifer Kathryn Steffen and Cory Blake Ackley. Theft of Mail, Possession of Stolen Mail, and Possession of Fifteen or More Unauthorized Access Devices. Steffen, 32, and Ackley, 26, are each charged with three counts of stealing mail from apartment complex cluster mail boxes; possession of stolen mail to include over 100 credit cards, credit card applications and other documents; and possession of 18 unauthorized access devices ie. credit and debit cards. If convicted, Steffen and Ackley each face the statutory maximum penalty of five years in prison and a $250,000 fine for the theft of mail and possession of stolen mail charges; and a statutory maximum penalty of 10 years in prison and a $250,000 fine for possession of unauthorized access devices. The United States Postal Inspector is the investigating agency.
###
El Paso Man Sentenced to 5 Years in Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that CHRISTOPHER CHAVEZ, 40, of El Paso, Texas, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 60 months of imprisonment, followed by four years of supervised release, for his role in a cocaine trafficking organization that transported large amounts of cocaine into Connecticut. CHAVEZ also was ordered to pay a $25,000 fine.
According to court documents and statements made in court, CHAVEZ’s father, Raul Chavez, headed a cocaine trafficking operation that smuggled cocaine from Mexico into El Paso and then transported the drug to Connecticut and elsewhere. CHRISTOPHER CHAVEZ’s role in the conspiracy typically involved transporting the cocaine from locations in El Paso to a warehouse where it was secreted within the cargo of tractor trailers bound for Connecticut. He also received and delivered hundreds of thousands of dollars to the Sinaloa cartel.
In 2014, the Chavez organization attempted to find an additional source of supply for its Hartford area cocaine customers. In July 2014, a DEA confidential source met Andrew Duron in North Carolina. During the meeting, Duron told the confidential source that he wanted to purchase up to 50 kilograms of cocaine for $28,000 per kilogram. On August 14, 2014, Duron, the confidential source and an undercover DEA agent met in New Jersey where Duron agreed to purchase 25 kilograms of cocaine. In subsequent conversations with the confidential source, Duron stated that he wanted an extra $1000 per kilogram as a side deal. They agreed on a total price of $725,000 for 25 kilograms of cocaine.
On August 23, 2014, Duron met the undercover DEA agent at a location in Wethersfield. Duron told the undercover agent that his associates were in Connecticut and that Duron and the undercover agent would need to travel to a store parking lot near Bradley International Airport to verify that the money was in place. Duron and the undercover agent then drove in separate vehicles to a store parking lot on Kennedy Road in Windsor. Duron met with Raul Chavez and another associate in the store. A short time later, a third associate arrived in a Jeep Wrangler, met the undercover agent in the parking lot, showed him a duffel bag and said it contained “half” of the money. Shortly thereafter, investigators arrived at the scene and arrested Duron, Raul Chavez and his associates. Investigators also recovered from the Jeep a duffel bag containing approximately $284,000 in cash, and a loaded .38 caliber revolver.
After word reached CHRISTOPHER CHAVEZ that his father and others had been arrested, he coordinated the diversion of a shipment of 34 kilograms of cocaine that was en route to Connecticut to a high-level drug distributor in Cleveland, Ohio.
CHRISTOPHER CHAVEZ was arrested in El Paso on August 27, 2015. He has been detained since his arrest. On March 11, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine.
Raul Chavez and Duron also pleaded guilty. On September 22, 2015, Duron, also of El Paso, was sentenced to 84 months of imprisonment. Raul Chavez awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration’s Hartford Task Force, including personnel from the DEA Hartford Resident Office and the Bristol, Hartford, Manchester, New Britain, Newington, and Wethersfield Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Department of Justice Designates National Community Policing WeekRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that representatives from the U.S. Marshals Service, the U.S. Attorney’s Office, FBI, DEA, and ATF jointly held three events in Anchorage this week as part of National Community Policing Week.
As part of the Obama Administration’s commitment to building stronger relationships between law enforcement and the communities they serve, the Department of Justice will lead nearly 400 events in support of community policing efforts around the country. To further that effort, President Obama has designated the week of Oct. 2-8, 2016, as National Community Policing Week. The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual trust and respect between law enforcement and citizens. National Community Policing Week builds on President Obama’s efforts to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report.
Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.
Representatives from the U.S. Marshals Service, the U.S. Attorney’s Office, FBI, DEA, and ATF jointly held the following community policing events in Anchorage:
Presentations at FBI Citizens Academy
On Tuesday, Oct. 4, representatives from each law enforcement agency gave a 30-minute presentation at the FBI Citizens Academy. The presentations included an overview of each agency’s mission, work, and how the Department of Justice law enforcement agencies work together, specifically in the District of Alaska. Following the presentations, there was a Q&A session.
Child ID Event and Presentations
On Wednesday, Oct. 5, the U.S. Marshals Service, DEA, ATF, and FBI gave presentations at Northwood ABC Elementary to roughly 90 students about drug and firearm safety, as well as personal safety via the KidSmartz child safety program that educates families about preventing abductions and empowers kids to make safe choices. Following the presentations, the students were fingerprinted under the Child ID program through the National Center for Missing and Exploited Children. The fingerprinted cards were then sent home with the students, along with educational and awareness pamphlets about personal and internet safety, for their parents.
Kids Kitchen Event
On Thursday, Oct. 6, representatives from each law enforcement agency volunteered at Kids Kitchen, located at the Fairview Recreation Center, helping to set up, serve food, and clean up, while mentoring and interacting with over 65 children. Kids Kitchen is a nonprofit organization in Anchorage dedicated to providing nutritional meals at no cost for children. In addition to volunteering, the group donated food based off Kids Kitchen’s monthly food needs list online.
“This week and these events highlight our continuing work to further connect our citizens and law enforcement in our joint efforts to provide a safe and healthy environment in our communities,” said U.S. Attorney Loeffler.
Additional information can be found on www.kidsmartz.org and www.kidskitchen.wixsite.com/alaska. For more information on National Community Policing Week or the Community Policing Tour, please visit https://www.justice.gov/ag/community-policing-tour.