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6 October 2016
Bergen County, New Jersey, Man Indicted on New Tax ChargesRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man who was charged in a scheme to defraud two international companies out of $3 million by fraudulently billing them for services that were never completed was indicted today on additional tax charges, U.S. Attorney Paul J. Fishman announced.
Philip Charles de Gruchy, 63, and Barbara Brown, 66, both of Park Ridge, New Jersey, were originally charged in February 2016 in a nine-count indictment with one count of conspiracy to commit mail fraud and eight counts of substantive mail fraud. The indictment handed up today adds six counts against de Gruchy, charging him with subscribing to false individual and corporate tax returns in 2009 and 2010, resulting in more than $800,000 taxes owed to the United States.
According to documents filed in this case and statements made in court:
From August 2007 through April 2, 2010, Brown was employed by “Company A,” a toy and juvenile products retailer headquartered in Wayne, New Jersey, first as director of customer relationship management and then as director of global customer relations management. She had authority to hire and pay contractors. Brown caused Company A to enter into a business relationship with CEM Inc., a company that Brown and de Gruchy secretly controlled. From Nov. 5, 2007, through March 4, 2010, CEM submitted approximately 170 invoices to Company A totalling more than $3 million for alleged marketing consulting work. The purported work was unnecessary, worthless, or never completed. Brown failed to disclose that she and De Gruchy had a financial interest in those invoice payments.
Although the checks that Company A issued to CEM were mailed to various Canadian addresses, the checks were ultimately deposited at bank branches located in Park Ridge, New Jersey. Checks were written out of the CEM account payable directly to either de Gruchy, Brown or two companies affiliated with de Gruchy: Silk Farm Inc. and Ontario LLC. Money obtained from the scheme was used for personal purposes, including home renovations, mortgage payments on the Park Ridge residence that Brown and de Gruchy shared, and credit card expenses.
From July 2010 through Nov. 11, 2011, de Gruchy was employed as the director of global relations management by “Company B,” an international manufacturer and retailer of luxury suitcases and accessories, headquartered in South Plainfield, New Jersey. He was responsible for a data migration project designed to assist Company B with identifying customer purchasing patterns. De Gruchy obtained verbal approval from Company B to hire Brown to assist him on the migration project. At no time did de Gruchy reveal his personal and financial relationship with Brown.
From November 2010 until November 2011, Brown submitted invoices in her own name or the name of her company, BI Insights, totaling more than $300,000 for purported work related to the data migration project. De Gruchy approved all of the invoices submitted by Brown and BI Insights. The work was alleged to be unnecessary, worthless, or never completed. Checks from Company B totaling $216,825 were sent to one of the Canadian addresses used to receive checks from Company A and were then deposited into a National Bank of Canada account held by Brown and De Gruchy.
Counts 10 and 11 of the superseding indictment charge de Gruchy with subscribing to false individual joint income tax returns for tax years 2009 and 2010. He allegedly intentionally overstated expenses and understated gross receipts, including receipts from the fraudulent conduct charged regarding Company A and Company B for those tax years, causing those returns to understate his total income for those years by $1.6 million.
De Gruchy is charged in Counts 12 and 13 of the superseding indictment with subscribing to false corporation tax returns for CEM for tax years 2009 and 2010. He allegedly falsely claimed certain business expenses payments, including payments made to “Individual 1,” which were then kicked back to de Gruchy, causing those business returns to understate CEM’s taxable income by $649,465 for those tax years.
De Gruchy is charged in Counts 14 and 15 of the superseding indictment with subscribing to false corporation tax returns for Silk Farm for tax years 2009 and 2010. He allegedly falsely claimed certain business expense payments, including payments made to Individual 1, which were then kicked back to de Gruchy, causing those business returns to understate Silk Farm’s taxable income by $377,578 for those tax years.
The counts of conspiracy to commit mail fraud and substantive mail fraud each carry a maximum potential penalty of 20 years in prison. The charges of subscribing to a false tax return each carry a maximum potential penalty of three years in prison. Each count of the indictment is punishable by a fine of $250,000 or twice the amount of the pecuniary gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher and IRS-Criminal Investigations, Newark Field Office, under the direction of Special Agent Jonathan D. Larsen, with the investigation leading to the charges.
The government is represented by Senior Litigation Counsel Leslie F. Schwartz of the U.S. Attorney’s Office in Newark.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
Defense counsel:
De Gruchy: Wanda Akin Esq., Newark
Brown: David B. Glazer Esq., Livingston, New Jersey
Benjamin Joseph Shook Sentenced to Serve Life in Federal Prison for Federal Crimes Including Kidnapping Fourteen-Year Old GirlRead the Press Release
GREENEVILLE, Tenn. – Benjamin Joseph Shook, 43, originally of Hall County, Ga., was sentenced on Oct. 6, 2016 by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve life plus five years in federal prison.
Shook pleaded guilty in June 2016 to five federal crimes, including kidnapping, using a means of interstate commerce to entice a minor to engage in illegal sexual activity, transporting a minor in interstate commerce for illegal sexual activity, traveling interstate to engage in illegal sexual activity, and failing to register as required by the Sex Offender Registration and Notification Act while traveling interstate.
During the summer of 2015, Shook, who was recently released from Georgia prison for prior sex offenses, convinced a 14-year-old girl residing in Surgoinsville, Tenn., to drive a truck and meet him in Morristown, Tenn. Shook drove the truck from Morristown to North Carolina and then to Virginia. After a nationwide Amber Alert and search, he and the minor victim were found in rural Smyth County, Va. The victim was returned safely to her family.
Nancy Stallard Harr, U.S. Attorney for the Eastern District of Tennessee noted the commitment of the U.S. Attorney’s office to the safety of children and the extensive collaborative effort which resulted in Shook’s arrest and life sentence. “This positive outcome would not have been possible without assistance from the public and the media together with the joint effort of more than 15 law enforcement agencies. Nearly 200 law enforcement officers worked around the clock over a three-state area for 14 days to rescue this minor female victim from a convicted child sex predator,” said U.S. Attorney Harr.
Agencies involved in this investigation included: the Surgoinsville Police Department; Hawkins County Sheriff’s Office; Tennessee Bureau of Investigation; U.S. Marshals Service; Federal Bureau of Investigation; National Center for Missing and Exploited Children; Virginia State Police; Tennessee Highway Patrol; U.S. Forrest Service; Virginia Department of Game and Inland Fisheries; Carroll, Smyth, Washington, and Wythe County Sheriff’s Offices in Virginia; and Damascus, Virginia Police Department. Assistant U.S. Attorney Helen Smith represented the United States.
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Attorney General Recognizes Seattle Police Department Deputy Chief and Chair of East African Advisory Council During Community Policing Week Awards CeremonyRead the Press Release
WASHINGTON, D.C. - Attorney General Loretta Lynch today met with Deputy Chief Carmen Best and Mergitu Argo, chair of SPD's East African Advisory Council, as part of National Community Policing Week and the Obama Administration's commitment to building stronger relationships between law enforcement and the communities they serve.
At a ceremony presenting the first-ever Attorney General's Awards for Distinguished Service in Community Policing, Seattle was recognized for hosting the Attorney General on her 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 the people they serve.
Annette L. Hayes, U.S. Attorney for the Western District of Washington, accompanied Best and Argo to Washington, D.C.
When in Seattle last fall, the Attorney General met with line officers and leadership at SPD's West Precinct; traveled to El Centro de la Raza to meet with the inaugural class of students from the Seattle Youth Employment Program SYEP, an internship program established by the Mayor's office for teenage students enrolled in Seattle public schools; and held a Community Policing Roundtable at the Northwest African American Museum where she solicited feedback from community members about their perception of and interactions with SPD, what they hoped to see as police reform continued, and the lessons they had learned from the consent decree process to date.
As the Attorney General stated when in Seattle: "Sweeping progress will not occur overnight. But as Seattle's recent experience can attest, real progress is possible-when we engage with one another, when we summon our goodwill and good faith, and when we work collaboratively as partners with a mutual and shared interest in ensuring the safety and security of the communities we call home."Attorney General Lynch Announces Inaugural Attorney General’s Awards for Distinguished Service in Community PolicingRead the Press Release
Attorney General Loretta E. Lynch today announced the recipients of the inaugural Attorney General’s Awards for Distinguished Services in Community Policing, acknowledging the exceptional work of 12 law enforcements officers from nine jurisdictions across the country.
“These inspiring men and women have been nominated for these awards by their colleagues and their communities,” said Attorney General Lynch at today’s ceremony. “Each of them embodies the very best of their profession. They understand that their role is not just to enforce the law, but to secure justice. They recognize that the badge they wear represents a sacred trust – one that they strive to fulfill each and every day. And they view the citizens they serve not as adversaries or potential opponents, but as partners, allies and neighbors. Everything that they do – whether it is an effort as large as running a youth outreach program, or a gesture as small as learning a neighbor’s name – makes a real difference in their communities and we are here to share our admiration and our gratitude.”
Each of the officers honored has demonstrated exceptional commitment to the principles of community policing in the cities, towns and localities where they serve. Through their excellent service and dedication to professional, impartial and effective policing, these individuals are having a transformational impact on their agencies by embracing 21st Century Policing strategies that build and strengthen trust and mutual cooperation between law enforcement officers and the communities they serve.
The Attorney General’s Award for Distinguished Service in Community Policing recognizes individual state, local or tribal sworn police officers and deputies who exemplify remarkable achievements in innovative community policing strategies, criminal investigations and field operations. In the more than 18,000 law enforcement agencies throughout the country, the everyday work of individual officers often goes unsung. To remedy this, Attorney General Lynch announced the creation of this award to honor the outstanding work of rank-and-file officers like those recognized today.
The individuals recognized today are listed below:
INNOVATIONS IN COMMUNITY POLICING CATEGORY
Officers Andy Dobbins and Curt Vajgrt of the Urbandale Police Department, Iowa:
Officers Dobbins and Vajgrt helped develop and implement an education program for their local high school focused on the social issues and pressures young people face. The Culture of Integrity program teaches the importance of character, integrity and community and focuses on issues related to bullying, social media, personal safety and achieving success. The officers managed all the details, getting approval of the curriculum and teaching schedule, organizing the content of the workbooks, and co-teaching the classes. The program was so successful that two other schools requested it.
Sergeant Audrey Mazzuca of the Gainesville Police Department, Florida:
After a disproportionate number of minority youth were being arrested in the community, Sgt. Mazzuca worked with local stakeholders to develop programs that encourage officers and school administrators to replace student arrests with alternatives such as counseling, life skills training, and other services. Through Sgt. Mazzuca’s leadership, the kids developed trusting relationships with law enforcement resulting in a 79 percent decline in on-campus arrests in 2015.
Community Liaison Officers Lawrence E. Geis and Scott B. Clinger of the Columbus Division of Police, Ohio:
Community Liaison Officers Clinger and Geis have worked diligently to address residents’ and business owners’ concerns regarding a rash of criminal activity and their success has led to an examination of several problem hotels and businesses in Columbus. The officers were instrumental in the adoption of a new city ordinance establishing safety rules for hotels and motels. As a result, crime and calls for service at hotels and motels have decreased significantly.
CRIMINAL INVESTIGATIONS CATEGORY
Detective Jessie Gonzales of the Tohono O’odham Police Department, Arizona:
Assigned to crimes against children and sex crimes, Detective Gonzales is sometimes the only detective investigating these cases on the Tohono O’odham reservation, which covers three counties. He consistently goes above and beyond the call of duty when conducting investigations. He recently solved two rape cases, one involving a 10-year-old victim, and another involving a domestic violence stabbing case. In these and all of his other cases, he consistently goes beyond the call of duty when conducting investigations to make the victims feel heard and believed.
Detectives Adam Beha and Joseph Milewczik of the Chesapeake Police Department, Virginia:
Detectives Beha and Milewczik conducted a long-term investigation involving a heroin distribution organization that funneled large amounts of heroin to the streets of Hampton Roads. Due to the organization’s affiliation with a high-level street gang, the case became an Organized Crime Drug Enforcement Task Force investigation involving local and federal law enforcement partners. Their work led to the arrest of all the federal targets, and the detectives continue to work the case, which will likely lead to more dangerous narcotics distributors being identified, investigated and arrested.
Senior Officer Kimberly Miller of the Houston Police Department, Texas:
In April of 2015, a woman was beaten, sexually assaulted, and robbed. Senior Police Officer Kim Miller dissected the incident with skills gained in her 30 years of investigative work, leading to the arrest of three individuals suspected of involvement in the incident and additional assaults. Miller’s dedication led these cases to successful conclusions. Tireless in pursuit of the predators, she treated the victims with compassion and is a leader in her department.
FIELD OPERATIONS CATEGORY
Detective Greg Felton of the Glenn County Sheriff's Office, California:
Detective Felton works with multiple agencies to strengthen collaboration and integrate services while handling complex criminal investigations. During the past year, Detective Felton has been a driving force and team leader in the creation of the Glenn County System-wide Mental Health Assessment and Response Team, a collaborative multiagency team that responds to incidents such as school or community threats, suicidal behavior, and bullying. His ability to remain calm in any situation helps to quickly resolve a crisis situation.
Officer Bennie L. Evans of the Alexandria Police Department, Virginia:
Officer Evans embraces community policing during field operations and through voluntary participation in projects for the police department and local nonprofit organizations. A lead instructor in the department’s crisis intervention team, he provides officer training in suicide intervention, substance abuse, and other issues. He also serves as the department’s homeless outreach liaison. He works to help residents in need and has helped build trust in the communities he serves. Officer Evans has successfully de-escalated numerous violent and attempt suicide calls for service.
Officer JoAnn Walker of the San Francisco Police Department, California:
Officer JoAnn Walker 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.
Arizona Indian Tribes and Agencies Awarded over $6.8 Million in Federal Grants to Assist Victims, Promote Public and Officer SafetyRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that over $6.8 million in federal grant funds have been awarded to a variety of Arizona-based Indian tribes and associatedagencies. The federal grant awards, which are individually summarized below, are intended to combat crime, assist victims of crime, and promote public and officer safety:
- Pascua Yaqui Tribe: Awarded a total of $1,609,919, through four awards, to support the Comprehensive Tribal Victim Assistance Program and other federal programs and to improve services to victims of domestic violence, sexual assault/trafficking, and stalking. (Grant Nos. 2016-VR-GX-K009, 2016-AC-BX-0004, 2016-VI-GX-K006, 2016-TW-AX-0011.)
- Tohono O’odham Nation: Awarded $1,362,142, through three awards, to support the Comprehensive Tribal Victim Assistance Program and other federal programs. (Grant Nos. 2016-TW-AW-0009, 2016-VR-GX-K008, 2016-DJ-BX-0985.)
• Colorado River Indian Tribes: Awarded $991,092 to support the hiring of three officers and the purchase of additional equipment and training. (2016-CTAS-COPS.)
- Hopi Tribe: Awarded $679,065 to ensure crimes against women and girls are aggressively prosecuted. (Grant No. 2015-TW-AX-0037)
- Unified Solutions Tribal Community Development Group, Inc.: Awarded $500,000 to enhance tribal communities’ ability to provide comprehensive and culturally appropriate services to victims of crime, their families, and their communities. (Grant No. 2015-MU-GX-K074.)
- Salt River Pima-Maricopa Indian Community: Awarded $450,000 to support the Comprehensive Tribal Victim Assistance Program. (Grant No. 2016-VR-GX-K006.)
- Hopi-Tewa Women’s Coalition to End Abuse: Awarded $336,976 to implement certain provisions of the Violence Against Women Act of 2000, the Justice Act of 2004, and Public Law No. 108-4-5. (Grant No. 2016-IW-AX-0015.)
- Southwest Indigenous Women’s Coalition: Awarded $336,976 to implement certain provisions of the Violence Against Women Act of 2000, the Justice Act of 2004, and Public Law No. 108-4-5. (Grant No. 2016-IW-AX-0012.)
- Yavapai-Apache Nation: Awarded $184,680 to support Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking and the Sex Offender Registration and Notification Act. (Grant No. 2016AW-BX-0024.)
- White Mountain Apache Tribe: Awarded $150,000 to support Sex Offender, Sentencing, Monitoring, Apprehending, Registering, and Tracking and the Sex Offender Registration and Notification Act. (Grant No. 2016-AW-BX-0025.)
- Salt River Police Department: Awarded a total of $141,032, through two awards, to support the Sex Offender Registration and Notification Act and the Comprehensive Tribal Victim Assistance Program. (Grant Nos. 2016-AW-BX-0012, 2016-VR-GX-K006.)
- Navajo Nation: Awarded $48,831 to implement Moral Reconation Therapy in its probation and parole services. (2016-DJ-BX-0919.)
- San Carlos Apache Tribe Police Department: Awarded $22,246 for the purchase of ammunition, approved firearms, and training. (2016-DJ-BX-1000.)
- Gila River Indian Community: Awarded $20,150 to improve officer safety by purchasing ballistic vests. (2016-DJ-BX-0510.)
“These funds support the basic operational needs of each of the Arizona-based tribes and agencies named in this release,” said U.S. Attorney John S. Leonardo. “These grants will enhance our efforts to reduce crime and increase public safety in Indian Country. We encourage all agencies to be proactive and apply for future law enforcement grant funding through our Office of Justice Programs.”
The grant funds identified above were supplied by a variety of federal awarding agencies, all of which are components of the Department of Justice’s Office of Justice Programs (“OJP”).
Information about Office of Justice Programs and its components can be found at:
http://www.ojp.usdoj.gov
Information about Bureau of Justice Assistance and its programs can be found at: https://www.bja.gov/Default.aspx
Information on the Office on Violence against Women can be found at:
https://www.justice.gov/ovw/grant-programs
Information on the Office of Juvenile Justice and Delinquency can be found at:
http://www.ojjdp.gov/
Tribal training and technical assistance
https://www.justice.gov/tribal/training-and-technical-assistance
Additional tribal training and technical assistance:
- Unified Solutions: http://www.unified-solutions.org/
- U.S. Dept. of the Interior, Indian Affairs: www.bia.gov
RELEASE NUMBER: 2016-090_IC GRANTS
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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.
Albuquerque Man Sentenced to 71 Months in Prison for Being a Lookout During Armed Robbery of Convenience StoreRead the Press Release
ALBUQUERQUE – Johnny Ramirez, 33, of Albuquerque, N.M., was sentenced today in federal court to 71 months in prison for violating the Hobbs Act by robbing a business engaged in interstate commerce. Ramirez will be on supervised release for three years following his prison sentence.
Ramirez and five other Albuquerque residents were charged in Jan. 2015, with violating the Hobbs Act and federal firearms laws in a five-count indictment. Count 1 charged Raymond Castillo, 27, Reyes Lujan, 27, Daniel Maestas, 36, Frank Gallegos, 31, and Henry Lujan, 23, with conspiring to violate the Hobbs Act. Count 2 charged the six men with violating the Hobbs Act by robbing a Walmart Store in Bernalillo County, N.M., on Oct. 29, 2014. Count 3 charged Castillo with brandishing a firearm during the robbery of the Walmart store, and Count 4 charges Maestas with using and carrying a firearm during the robbery. Count 5 charged Ramirez, Gallegos, Reyes Lujan and Henry Lujan with aiding and abetting the use of firearms during the robbery.
A seven-count superseding indictment was filed on May 28, 2015, charging the original six defendants and adding Reynaldo Marquez, 26, as a new defendant and two new counts. The two new charges in the superseding indictment charged Marquez and Castillo with interfering with interstate commerce by robbing a 7-11 convenience store located in Bernalillo County, N.M., on Dec. 7, 2014, and Marquez with discharging a firearm during the robbery of the 7-11 convenience store on Dec. 7, 2015.
On June 16, 2016, Ramirez pled guilty to Count 2 of the superseding indictment charging him with aiding and abetting an interference with interstate commerce. In entering the guilty plea, Ramirez admitted that on Oct. 29, 2014, he acted as a lookout for the armed robbery of the Walmart located at 400 Eubank NE in Albuquerque.
Ramirez’ six co-defendants previously have entered guilty pleas. Reyes Lujan was sentenced on March 8, 2016, to 71 months in prison followed by three years of supervised release and Gallegos was sentenced on Sept. 8, 2016, to 71 months in prison followed by three years of supervised release. The four remaining co-defendants are in custody pending their sentencing hearings.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorneys Norman Cairns and Samuel A. Hurtado are prosecuting this case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. In recognition that New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community has come together to is collaborating the initiative is significantly exceed the national average.
5 October 2016
Westcliffe Man with Interest in Successful Structural Steel Company Ordered to Pay Creditors, Including the United StatesRead the Press Release
DENVER -- U.S. District Judge Christine M. Arguello recently found that Michael D. Wilhite, of Westcliffe, Colorado, concealed his membership interest in Advance Floor Concepts, LLC (“AFC”), a successful multi-million dollar structural steel company for the purpose of hindering, delaying and defrauding his creditors, Acting U.S. Attorney Bob Troyer announced.
In January 2001, Wilhite pled guilty to one count of wire fraud and aiding and abetting, stemming from his involvement in the 1990’s in a sophisticated scheme to defraud the Bank of New Zeland of approximately $5.18 million. The court sentenced Wilhite to three months’ imprisonment, three years’ supervised release, and ordered him to pay restitution in the amount of $1,741,700. Wilhite stopped making restitution payments in 2004, when his term of supervised release ended. Wilhite presently owes approximately $1,719,078.98.
After conducting a thorough investigation into Wilhite’s financial condition, the United States filed a writ of execution, seeking to sell Wilhite’s membership interest in AFC. Wilhite denied having any interest in AFC and his wife, Mrs. Darla Wilhite, claimed to be AFC’s only member.
According to court documents, and the evidence introduced at trial, Wilhite and Mrs. Wilhite created AFC solely in her name in 1997 to avoid and defraud his creditors, including the United States. Indeed, the court found that Wilhite avoided putting a single asset in his name for over two decades, and expressly admitted at trial that he decided not to co-own AFC with his wife, at least in part because doing so “could have” jeopardized “[his] family’s assets.” The court also found that Wilhite exercised sufficient control over AFC to be deemed an owner. The evidence revealed that Wilhite could hire and fire employees and direct their duties; could adjust AFC’s inventory; authored and implemented memos and policies; “has knowledge of and participates in [AFC’s] financial structure”; and even participated in negotiations to sell the company in 2013.
“Due to the tenacious work of our Asset Recovery Division, victims of Wilhite’s crime will now see justice in the form of additional restitution payments,” said Acting U.S. Attorney Bob Troyer. “We have the ‘Seal Team 6’ of Asset Recovery, and these folks work tirelessly on behalf of victims and the taxpayers every day.”
This matter was handled by the U.S. Attorney’s Office for the District of Colorado’s Asset Recovery Division.
West Hollywood Store and Owner Sentenced for Violating Endangered Species Act by Illegally Importing SeahorsesRead the Press Release
LOS ANGELES – Necromance, a West Hollywood shop that sells novelty wildlife items, and its owner were sentenced today in federal court for violating the Endangered Species Act by unlawfully importing seahorses.
Necromance and Nancy Delap Smith, 56, of Studio City pleaded guilty in July to misdemeanor violations of the Endangered Species Act. Both defendants illegally imported items that were protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
During today’s sentencing hearing, Necromance was ordered to pay a $20,000 fine and was placed on probation for two years.
Smith was placed on probation for a period of one year and ordered to serve 200 hours of community service.
Both defendants were sentenced by United States Magistrate Judge John E. McDermott.
“The defendant and her store participated in illegal wildlife trafficking, which is prohibited by the United States, international treaties and nearly every nation on the planet,” said United States Attorney Eileen M. Decker. “These laws and international agreements are designed to protect species that are subject to senseless killing and poaching simply to meet the demands of individuals who want to possess unusual animals.”
In plea agreements filed in court, Necromance and Smith admitted to unlawfully importing seahorses, as well as bat skulls, that had been imported from Indonesia in 2011. Smith and Necromance also unlawfully imported other wildlife, such as scorpions and tree frogs, without declaring those items to the U.S. Fish and Wildlife Service, which was responsible for the investigation in this case.
“Illegal trafficking in protected wildlife species will not be tolerated in this country,” said Jill Birchell, special agent in charge of the Pacific Southwest Region of the U.S. Fish and Wildlife Service. “This case demonstrates that officers of the U.S. Fish and Wildlife Service will continue their diligent efforts to investigate and prosecute those who seek to profit by illegally exploiting the world’s wildlife resources.”
This case was prosecuted by Dennis Mitchell of the Environmental and Community Safety Crimes Section.
Waterbury Man Pleads Guilty to Heroin Distribution ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that RONALD WEAVER, 38, of Waterbury, pleaded guilty today in Bridgeport federal court to one count of possession with intent to distribute, and distribution of, heroin. The charge stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on March 11, 2016, Newtown Police and emergency medical personnel responded to a residence in Newtown on the report of a 30-year-old female who was in cardiac arrest. The victim was transported to the hospital where she subsequently died. Medical records and witness interviews revealed that the victim had a history of substance abuse, and the family of the victim turned over to law enforcement several wax folds of heroin, several empty folds and other drug paraphernalia.
The investigation revealed that the victim purchased heroin and other drugs from at least two sources in the days leading up to her death. One of the sources worked as a “runner” who conducted drug transactions for WEAVER.
Between June and August 2016, law enforcement made four controlled purchases of heroin from WEAVER.
WEAVER has been detained since his arrest on August 9, 2016. He is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on December 28, 2016, at which time he faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the DEA’s New Haven Tactical Diversion Squad and the Newtown, Waterbury and Torrington Police Departments. The Task Force includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Washington County Sheriff Receives Award for Community PolicingRead the Press Release
ALBANY, NEW YORK – Washington County Sheriff Jeffrey J. Murphy was recognized today for the achievements of his department in community policing, as part of the United States Department of Justice National Community Policing Week, announced United States Attorney Richard S. Hartunian.
“I am pleased to recognize the excellent work of Sheriff Jeffrey J. Murphy and the Washington County Sheriff’s Department for their commitment to strengthening and enhancing the ties between his department and the community it serves through community policing. These successful efforts promote trust and confidence between the Sheriff’s Department and the people of Washington County. In the challenging times in which we live, these bonds are essential to a society that is both free and safe. National Community Policing Week, October 3rd through 7th, provides an opportunity for the United States Department of Justice to acknowledge those who promote law enforcement engagement with communities, and I am very happy to do so for Sheriff Murphy, whose motto is emblazoned on each Washington County Sheriff’s Department Patrol car, ‘Community First.’
Upon becoming Sheriff of Washington County in upstate New York in 2012, Sheriff Murphy instituted numerous programs to emphasize the Department’s engagement with the community. These include:
-Active-shooter awareness for school faculties
-Bicycle safety rodeos
-Career-day events at schools
-Child safety seat installation and inspection service
-Cyber safety/online predator awareness for students
-EMS and fire police in-service regarding MVA investigation
-Prom crash drills
-Rape aggression defense training
-Safe-drive program
-Scam-avoidance for senior citizen groups
-School safety and lock-down training
-Community Roll Call Video Web Series
-Law Enforcement Explorer Post for Teens
-Internet Safe Transaction Zone
-Town Supervisor/Deputy Liaison Program
In a ceremony at the Washington County Law Enforcement Center in Fort Edward, New York today, United States Attorney Hartunian presented Sheriff Murphy with a plaque to recognize the Washington County Sheriff’s Department for its Community Policing programs.
The Washington County Sheriff’s Department includes criminal, civil, jail and administrative divisions, and serves the people of Washington County in northeastern New York State. It is part of the Northern District of New York, the thirty-two county federal district in which the United States Attorney’s Office, a part of the United States Department of Justice, prosecutes civil and criminal cases in federal court.
Wallingford Man Charged with Stealing Bitcoins in Dark Web Phishing SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that MICHAEL RICHO, 34, of Wallingford, was arrested today on a criminal complaint charging him with access device fraud, computer fraud, wire fraud, identity theft and money laundering offenses in connection with a scheme to steal bitcoins in an online phishing scheme.
According to the criminal complaint, RICHO engaged in an online phishing scheme to steal bitcoins from individuals on the dark web. Bitcoins are a form of electronic currency and online marketplaces on the dark web typically accept them as a payment method.
The complaint alleges that RICHO posted fake links to online marketplaces on dark web forums. The links directed individuals to a fake login page that looked like the real login pages for the various online marketplaces. When individuals attempted to log in, RICHO stole his or her username and password. Once he had an individual’s username and password, RICHO monitored the individual’s bitcoin balance at the real marketplace. If the individual later deposited bitcoins with the real marketplace, RICHO withdrew the bitcoins before the individual could spend them and caused the stolen bitcoins to be deposited into his own bitcoin wallet. RICHO then sold the stolen bitcoins to others in exchange for U.S. currency, which was deposited into a bank account that RICHO controlled.
The complaint alleges that RICHO had over 10,000 stolen usernames and passwords saved on his computer.
RICHO appeared this afternoon before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $100,000 bond.
Money laundering carries a maximum term of imprisonment of 20 years, wire fraud carries a maximum term of imprisonment of 20 years, access device fraud carries a maximum term of imprisonment of 10 years, computer fraud carries a maximum term of imprisonment of five years, and aggravated identity theft carries a mandatory term of imprisonment of two years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Virginia man sentenced to prison for defrauding the Greenbrier through cancer schemeRead the Press Release
CHARLESTON, W.Va. – A Virginia man was sentenced today to a year and two months in federal prison for defrauding The Greenbrier, announced United States Attorney Carol Casto. Carmelo “Carmine” Carrozza, 57, of Charlottesville, previously pleaded guilty to wire fraud. Carrozza was also ordered to pay $48,355.73 in restitution to The Greenbrier.
In the spring of 2013, Carrozza began working at the resort as the Director of Fine Dining. In June 2013, he told senior management that he had cancer. However, Carrozza did not have cancer. Carrozza then left the resort, purportedly to receive cancer treatment, and kept collecting his salary. He continued to receive a salary during his purported cancer diagnosis and treatments from June through mid-December 2013. During this period, Carrozza falsely informed employees of the resort about his supposed cancer prognosis and treatments.
Instead of spending time getting cancer treatment, Carrozza obtained a position with the University of Virginia Darden School Foundation beginning in August 2013.
The investigation was conducted by the FBI. Assistant United States Attorney Meredith George Thomas is in charge the prosecution. United States District Judge Irene C. Berger imposed the sentence.
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Virginia Man Pleads Guilty to Firearms Charge in Connection with Armed Robbery of Econo Lodge in ScrantonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Virginia man pleaded guilty on October 4, 2016 in United States District Court in Scranton, before United States District Judge Malachy E. Mannion, to a firearms charge filed in connection with the armed robbery of the Econo Lodge in Scranton on February 13, 2016.
According to United States Attorney Bruce D. Brandler, Kelvin Robinson, age 24, of Newport News, Virginia, admitted to the charge of brandishing a firearm in furtherance of a crime of violence. Robinson was one of four individuals, including Tracy Whiting, age 24, of Newport News, Virginia, Kwa’shon Roane, age 24, of Gloucester, Virginia, and Rodney Whiting, age 23, of Scranton, who were indicted by a grand jury in March 2016 for the armed robbery of the Econo Lodge.
The charges against the remaining defendants are currently still pending.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Scranton Police Department, the Pennsylvania State Police, the Lackawanna County District Attorney’s Office and numerous local law enforcement agencies, including the Taylor Borough and Moosic Borough Police Departments. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Kelvin Robinson faces a mandatory penalty of at least seven years in prison for the charge of brandishing a firearm in furtherance of a crime of violence.
The maximum penalty under federal law is up to life in prison, a term of supervised release following imprisonment and a fine. According to the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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University of Pittsburgh Institute of Politics Issues Western Pennsylvania Opioid Response Report and RecommendationsRead the Press Release
PITTSBURGH – The University of Pittsburgh’s Institute of Politics today released a 64-page report of the work undertaken by a regional working group convened and led by David J. Hickton, United States Attorney for the Western District of Pennsylvania. The report sets forth a community-based continuum of care model that demonstrates how Western Pennsylvania has implemented the recommendations of the National Heroin Task Force Report on a regional level and describes a framework for moving forward.
A Continuum of Care Approach: Western Pennsylvania’s Response to the Opioid Epidemic was released by United States Attorney Hickton, Mark Nordenberg, Chancellor Emeritus of the University of Pittsburgh and Chair of the University’s Institute of Politics, and Terry Miller, Director of the University of Pittsburgh Institute of Politics, at a news conference at the Joseph F. Weis Jr. United States Courthouse in Pittsburgh, Pennsylvania.
U.S. Attorney Hickton stated, “As of 2016, we have established a fusion center to receive reports of heroin overdoses and drug seizures from first responders, enhanced coordination with county District Attorneys on prosecution, continuing education for prescribers, pharmacists, medical students, first responders and the public, prevention efforts aimed at middle and high school students, increased access to naloxone, and additional take-back programs and drop box locations. The next frontier in successfully addressing the opioid crisis is to integrate public health and public safety responses. In this report, we show all that is being accomplished in our region; yet, we are transparent about what still needs to be done. The Institute of Politics has provided an effective and sustainable model that can be replicated across the country – in both urban and rural settings.”
In commenting on this initiative, Chancellor Emeritus Nordenberg said, “Partnering with U.S. Attorney Hickton to help advance the important work that he initiated has provided a special opportunity for the Institute of Politics to help this region meet the challenges of an epidemic that is taking lives, destroying families and damaging communities. More than sixty years ago, a team led by Pitt Professor Jonas Salk developed the vaccine that brought an end to this country’s polio epidemic. The opioid epidemic is the critical public health challenge of our time, and it will take a broad-based, well-organized and committed effort to meet that challenge.”
Institute of Politics Director Miller, who founded and was the first executive director of POWER (Pennsylvania Organization for Women in Early Recovery), stated, “Western Pennsylvania has been extremely hard-hit by this epidemic, but we also have the resources to effectively address the problem. Those resources include engaged and enlightened law enforcement officers, some of the world’s most accomplished scientists and public health professionals and a regional culture that is committed to cooperating to advance the public good.”
The plan underscores the importance of integrating public health and public safety to reduce overdoses; catalogs regional efforts, highlights existing best practices so that they can be deployed in other settings; exposes gaps; identifies next steps; and creates a continuum of care model to maximize interventions.
The report is organized into three sections:
- A Prevention section, which describes initiatives directed toward three groups with different vulnerabilities: the general public; those with a higher than average risk of developing a Substance Use Disorder (SUD) and their families; and individuals with an SUD at critical intercept points, including interactions with the health care system and law enforcement;
- A Treatment section, which identifies two stages of treatment strategies – case identification, which focuses on the screening process for identifying individuals suffering from an SUD, and Standard Treatment for Known Disorders, which uses SUD professionals to evaluate and determine where a person suffering from an SUD should be placed; and
- A Maintenance/Recovery section, which details strategies that are designed to help SUD patients manage the symptoms of their disease over the long term following treatment. This may include Medication Assisted Treatment (MAT) at least at the start of maintenance/recovery.
The Institute’s report contains targeted recommendations including:
- Improved access to overdose survivor data (data from EMS and hospital emergency services providers on overdoses that do not result in death);
- A uniform tracking system for open beds and outpatient slots that operates in real time, eventually showing availability throughout the state;
- The establishment of rapid response teams of first responders, law enforcement, public health professionals, health care professionals, forensic laboratory analysts and coroners, to respond to overdose spikes;
- Improved “warm handoff” processes for transitioning an SUD patient from an intercept point, such as an interaction with a physician or law enforcement officer, directly to a treatment provider through an immediate in-person transition;
- Implementation of “hard handoffs,” which are court-ordered commitments to treatment that are only used when the substance user appears to be putting his or her own life in imminent danger or is posing a risk to others;
- Establishing family support centers to provide social, emotional and financial support to families of substance users;
- Ensuring that prescribers are adopting the best practices in order to reduce the number of people who develop SUD as a result of prescription opioids; and
- Increased access to naloxone and take-back boxes.
The report reiterates the National Heroin Task Force report’s three main findings: that public safety and public health strategies for opioids must be integrated and complementary; that policies regarding opioid and heroin use must be grounded in the scientific understanding that substance use disorders are a chronic brain disease that can be prevented and treated leading; and that visible community-based recovery supports must be available, affordable and accessible.
Pennsylvania has been particularly hard hit by the opioid epidemic. In 2015, the number of drug-related overdose deaths reported in Pennsylvania increased 23.4 percent to 3,383. In the most recent data for 2015, more than 81 percent of those who died from drug-related overdoses were found to have either heroin or other opioids in their system. Several counties in southwestern Pennsylvania outpaced the state average in the number of deaths per 100,000 people. The problem affects rural, urban and suburban jurisdictions.
Pitt’s Institute of Politics serves as a neutral, non-partisan convener that facilitates the consideration of policy issues of particular importance to Western Pennsylvania. It regularly brings together federal, state, county, and municipal government officials, in association with academics and foundation, civic, and business leaders and is committed to processes that are characterized by civil discussion and evidence-based decision-making.
A Continuum of Care Approach: Western Pennsylvania’s Response to the Opioid Epidemic is available for download at http://iop.pitt.edu/sites/default/files/Reports/Status_Reports/A Continuum of Care Approach - Western Pennsylvania%27s Response to the Opioid Epidemic.pdf.
U.S. Department of Justice Funds Seattle Area Programs Providing Services for Abused and Exploited ChildrenRead the Press Release
The U.S. Department of Justice has awarded more than $2 million to government and non-profit entities aimed at protecting and assisting children and youth who are at risk of violence, exploitation and abuse, announced U.S. Attorney Annette L. Hayes. The grants from the Office of Justice programs will continue some of the good work already underway and provide new services in some key areas.
“These grants from the Department of Justice provide services to some of the most vulnerable victims in our city and helps law enforcement do important work investigating those who prey on children,” said U.S. Attorney Annette L. Hayes. “These federal dollars flow to programs that have a track record of addressing critical needs in our community.”
More than $1 million of the funding goes to two non-profit organizations to assist victims of human trafficking. Youthcare in Seattle will receive $588,115 to support shelter, education and employment training for sex trafficked youth and young adults ages 12-24. The grant will also pay for training and partnerships to expand community awareness about human trafficking. The Seattle Indian Center was awarded $450,000 to assist Native American victims of sex trafficking and increase public awareness and understanding of the damage caused by human trafficking.
In the area of youth violence prevention, both the City of Seattle and the non-profit Children and Youth Justice Center received grant funding totaling nearly $600,000. The City of Seattle Youth Violence Prevention Initiative received a $258,000 grant to enhance current efforts to prevent youth violence. The additional funding expands the program with youth suicide prevention as an important new component. The Children and Youth Justice Center was awarded $327,729 to continue and enhance its work combatting youth gangs and violent crime throughout King County.
Finally, the Seattle Police Department’s Internet Crimes Against Children (ICAC) Task Force received $453,540 to continue its work investigating a growing number of technology facilitated crimes against children. In addition to personnel, the funding will pay for technology upgrades and training for investigators. The ICAC is a clearing house for tips regarding a variety of child sexual abuse and exploitation crimes throughout western Washington.
For more information of DOJ grants please go to the website of the Office of Justice Programs http://ojp.gov/
U.S. Attorney Urges Police Officers to Reach Out to CommunitiesRead the Press Release
WICHITA, KAN. - Law enforcement alone can’t solve all the crime problems in our communities, Acting U.S. Attorney Tom Beall said Wednesday at a statewide meeting of police officers.
“We need to reach out to community leaders, property owners, churches, private businesses and schools – to anyone who is willing to work with us to make the community safer,” he said.
Beall spoke before more than 100 officers at the Kansas Peace Officers Association’s fall conference in Wichita. He urged them to join with the Justice Department and law enforcement agencies nationwide in observing Community Policing Week.
“We need to build our public safety efforts on a foundation of mutual trust and respect between police officers and the communities they serve,” he said.
Beall praised Wichita Police Chief Gordon Ramsay for working to build community ties by inviting protesters to join police officers for a cookout in the park. He also cited the Kansas Law Enforcement Training Center’s courses for officers on fair and impartial policing.
Beall had a personal message for officers, too.
“To all of you who continue to risk your lives day in and day out to keep us safe and protect our freedoms, thank you,” he said. “You have one of the hardest jobs in the world.”
U.S. Attorney Hochul Announces Departure; Will End 30 Year Department of Justice Career October 28Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, NY—William J. Hochul, Jr., announced today that he will leave his position as United States Attorney, and retire from public service after nearly 30 years in the Department of Justice. U.S. Attorney Hochul will leave his position October 28.
“While the threat to Americans and Western New Yorkers has changed over the decades of my service, it has been my experience that certain fundamental truths have remained constant,” said U.S. Attorney Hochul. “First, the commitment of law enforcement to protect and serve the public has never wavered, and it has been an honor to work with these heroes. Second, the system in which we operate is truly the best the world has ever seen. Finally, it has been a great privilege to be able to achieve justice for those who have been targeted or hurt by vicious predators, unscrupulous fraudsters, and criminals of every type.”
President Barack Obama nominated Mr. Hochul to serve as the United States Attorney for the Western District of New York in 2009. Following unanimous confirmation by the United States Senate in 2010, he oversaw the prosecution of all federal criminal cases brought within the 17 counties of Western New York. Mr. Hochul also directed and supervised all other matters occurring in the District in which the United States was a party, including affirmative and defensive civil litigation, appellate matters, forfeiture, and more.
Under Mr. Hochul’s leadership, the United States Attorney’s Office successfully implemented numerous strategies, organizational initiatives, and public outreach programs designed to keep the community safe. Criminal prosecution of terrorism, intellectual property, white collar, environmental, narcotics, identity theft, and cyber-related offenses resulted in some of the most significant cases in District history. Civil litigation returned hundreds of millions of dollars to the United States taxpayers, while simultaneously protecting against frivolous lawsuits.
While Mr. Hochul began serving as United States Attorney over six years ago, his career in the Department of Justice began decades earlier. Upon concluding work as a law clerk to a Maryland Court of Appeal Judge and as an associate at a large international law firm based in Washington, Mr. Hochul joined the Department of Justice in 1987 as an Assistant United States Attorney for the District of Columbia. In this role, he prosecuted an extensive array of violent and white collar criminal cases, and later specialized in the prosecution of first-degree and gang-related murder cases.Mr. Hochul returned to his hometown of Buffalo when he became an Assistant United States Attorney for the Western District of New York in 1991. He prosecuted a large number of notorious violent and white collar criminals, fraud, racketeering and intellectual property offenses, and emerging international organized crime groups. Among his many accomplishments, Mr. Hochul became one of the first federal prosecutors to utilize the federal racketeering laws to dismantle an entire street gang. The prosecution of the “LA Boys” resulted in the murder rate in the City of Buffalo decreasing by nearly 50%. Other significant prosecutions undertaken by Mr. Hochul early in his Buffalo career involved 20 members of a Niagara County based labor union which used violence against non-union employees and others; a massive food stamp fraud scheme encompassing multiple States; a multi-defendant cigarette trafficking ring, in which the States of Michigan and New York were defrauded of over fifty million dollars; and an international intellectual property trafficking ring, where millions of dollars of proceeds were transmitted to China and the Middle East.
Mr. Hochul became Chief of the Office’s Anti-Terrorism Unit following September 11, 2001, and Chief of the National Security Division in 2006. While in these positions, Mr. Hochul served as lead prosecutor in several high-profile international terrorism cases, including the highly successful prosecution of the internationally known Lackawanna Six, the first known instance of Americans traveling to train with al Qaeda.
For his role in the Lackawanna Six case, Mr. Hochul and others who worked with him received the Attorney General’s Award for Exceptional Service – the highest award conferred by the Department of Justice, as well as a Service to America Award, presented by the Partnership for Public Service.
ENR Magazine (McGraw Hill publication) named Mr. Hochul to its Top 25 Newsmaker Award, “for having purged Niagara County, New York of decades of construction industry violence and intimidation.” In total, Mr. Hochul received over three dozen awards and honors for his work in the Department of Justice.
Mr. Hochul’s work as United States Attorney spanned virtually every type of federal criminal and civil case. Some of the noteworthy criminal cases in this time period included:
• Prosecution of over 200 gang members from 14 gangs. Two such cases, involving all of the members of the 7th and 10th Street Gangs, brought peace to the West Side of Buffalo. Other gang cases involved the East Side of Buffalo, Rochester, Lackawanna, Niagara Falls, and various public housing projects. Most recently, the Office charged members of the Kingsmen Motorcycle Club, including the leadership and officers located in Western New York, Florida and elsewhere, and concluded a successful prosecution of the Hells Angels Motorcycle Club, whose members operated in California, Rochester, and Batavia.
• Multiple terrorism and threat cases, including the successful prosecution of the first known ISIL recruiter, and a Rochester man who planned to kidnap and behead victims on New Year’s Eve.
• Some of the largest environmental cases ever brought, including the highly successful prosecution of the Tonawanda Coke Corporation. This case, involving decades of deliberate release of harmful chemicals, resulted in criminal convictions and a judgment against the company of $25 million, a significant portion of which will remain in Western New York to fund health studies. Cases involving the Kensington Towers, asbestos remediation projects in Rochester, and a massive ivory smuggling case were also successfully concluded.
• In the realm of public corruption, Mr. Hochul’s Office charged or convicted numerous public officials including an elected legislator, mayors, a Federal Highway Safety Official, State and City regulatory and administrative professionals, letter carriers, and police officers. One successful case, involving the prosecution of parking meter attendants, resulted in the City of Buffalo obtaining over $700,000 in additional parking fees the year after the defendants were charged. The prosecution of two police officers for abusing Injured on Duty Status, meanwhile, resulted in over one hundred police officers returning to active duty and no longer claiming IOD.
• Regarding the opiate/heroin crisis - the leading cause of death in the area - Mr. Hochul’s tenure saw the prosecution of numerous doctors and health care professionals, along with the dismantling of some of the largest cocaine and heroin trafficking rings ever to operate in the District.
• In the area of military safety, Mr. Hochul’s Office prosecuted cases involving defective helmet screws placed within service members helmets, and non-conforming magnesium used in the manufacture of aircraft counter-measures deployed in aircraft to save pilots and crew from incoming missiles.
• Mr. Hochul’s Office protected children and the most vulnerable through several significant human trafficking and pornography production cases.
• Mr. Hochul authorized federal prosecution of cases traditionally prosecuted in local courts, including the Epps insurance fraud prosecution, the prosecution of Rico Vendetti and others for their roles in a massive shoplifting ring which led to the death of 78 year old Homer Marciniak, the prosecution of off-duty police officers for excessive force or wrongful arrest, and several cold case prosecutions.As for civil litigation, Mr. Hochul oversaw the conclusion of the Erie County Jail litigation, and numerous cases involving the health care industry. The Office’s Asset Forfeiture Section, meanwhile, successfully transferred properties to not for profit entities, demolished decrepit buildings, and returned millions of dollars to taxpayers and victims of crime.
Along with his duties as United States Attorney, the Government frequently deployed Mr. Hochul to instruct, domestically and abroad, a wide variety of law enforcement groups, attorneys, and judges on matters relating to investigating and prosecuting organized crime, gang, terrorism, intellectual property, public corruption and money laundering offenses, as well as on police leadership. His most recent international travels took Mr. Hochul to Europe and Africa, where he consulted with judges, prosecutors and investigators from Burkina Faso, Togo, Benin, Botswana, Ghana, Nigeria, Serbia, Hungary, Bosnia and Herzegovina, and Ukraine.
Mr. Hochul made outreach to the community a priority for his Office. The initiatives conducted by Mr. Hochul and his Office included:
• Three Heroin/Opioid Drug Summits, with the first occurring in 2011
• Youth Engagement – Houghton Law 101; Teen Dating; Anti-Bullying
• Anti-Violence Pledge in all Buffalo Public Schools
• Fraud Awareness - How to Not Be a Victim; Identity Theft
• Protecting Children on-line
• The Justice Report
• Bridges
• How to Run a Business – provided to newly arrived refuges and others
• Annual Newsletters to Schools
• Intelligence meetings with area police
• Active Shooter Training for area businesses
• Intellectual Property Training for businesses
• Cyber Threats Training; Cyber Monday
• Hospital Compliance
• Sexual Assaults on Campus
• Church Safety
• First in the Nation Veteran’s Court
• Education to Parents on Use of Social Media Applications (Apps)
• Cultural Sensitivity Training for federal law enforcementFinally, Mr. Hochul hired 20 Assistant United States Attorneys during his time as United States Attorney, representing almost 40% of the attorney staff. These attorneys bring widely diverse backgrounds, talents and experiences to the Office, and will no doubt carry on the important work of protecting the public and the Constitution for decades to come.
Two felons from Warren indicted for stealing 30 firearms from gun storeRead the Press Release
Two felons from Warren were indicted for stealing 30 firearms, as well as related charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Laval Jackson, 43, and Tyrone Thomas, 42, were indicted on charges of stealing firearms, being in possession of stolen firearms and being felons illegally in possession of firearms.
Kristi Coxson, 33, also of Warren, was indicted on one count of possession of stolen firearms.
According to the indictment, Jackson and Thomas On or March 29 stole from J & D Firearms, located in Warren, the following firearms:
- Ruger, model SR1911, .45 caliber pistol, serial number 672-39025;
- Glock, model 17, 9mm pistol, serial number BBDR194;
- Stag Arms, 5.56mm rifle, serial number 330360;
- JLD Enterprises, model PTR91, .308 caliber rifle, serial number B0074;
- Vulcan Arms, model V15, .223 caliber rifle, serial number P006848;
- Bersa, model Thunder 9, 9mm pistol, serial number F87740;
- Glock, model 23, .40 caliber pistol, serial number AANN915;
- Bersa, model Thunder 40, .40 caliber pistol, serial number F37068;
- Bersa, model Thunder 45, .45 caliber pistol, serial number F87203;
- Springfield, model XDS, 9mm pistol, serial number S3841064;
- Squires Bingham, model 1911, .45 caliber pistol, serial number RIA1749616;
- Taurus, model PT917, 9mm pistol, serial number TDO68413;
- Sarsilmaz, 9mm pistol, serial number T1102-14G00678;
- Bersa, model Thunder 380, .380 caliber pistol, serial number 716090;
- Smith and Wesson, model M&P 40, .40 caliber pistol, serial number HSJ5404;
- Grand Power SRO, 9mm pistol, serial number GBA0938;
- Bersa, model BP9CC, 9mm pistol, serial number E28908;
- Glock, model 19, 9mm pistol, serial number BBEF141;
- FNH, model FNS9, 9mm pistol, serial number CSU0013415;
- Ruger, model GP100, .357 caliber revolver, serial number 177-90494;
- Springfield, 9mm pistol, serial number GM970936;
- Springfield, model XDM, 9mm pistol, serial number MG420979;
- Ruger, model Police Service Six, .357 caliber revolver, serial number 153-28202;
- Ruger, model SR45, .45 caliber pistol, serial number 380-66127;
- Smith and Wesson, model M&P 9, 9mm pistol, serial number HKK9077;
- Glock, model 23, .40 caliber pistol, serial number BAEC028;
- Browning, model Hi Power, 9mm pistol, serial number 419584;
- MKE, model Kirikkale, .380 caliber pistol, serial number 7340746;
- Taurus, model PT1911, .38 caliber pistol, serial number LBX04929; and
- Smith and Wesson, model M&P 9, 9mm pistol, serial number HUS1418
The indictment alleges that on March 29, 2016, Jackson, Thomas and Coxson knowingly possessed the above listed stolen firearms.
Jackson is charged with being a felon in possession of the above stolen firearms after he was previously convicted of failure to comply with the order or signal of a police officer in the Trumbull County Court of Common Pleas in 1996.
Thomas is charged with being a felon in possession of the above stolen firearms after he was previously convicted of aggravated assault in 1995 and of robbery in 2001, both in the Trumbull County Court of Common Pleas.
“These are people forbidden by law from having firearms who went out and stole them,” Rendon said. “They will hold them accountable for their actions and we will continue to do all we can to keep firearms from illegally getting to our neighborhoods.”
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Warren Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Colombian Nationals Extradited to Los Angeles on Charges of Leading Multi-Ton Cocaine Conspiracy via Clandestine Air ShipmentsRead the Press Release
LOS ANGELES – Two Colombian drug kingpins have been extradited to Los Angeles on federal charges of overseeing shipments of thousands of pounds of cocaine from Colombian laboratories to Central American distribution hubs, ultimately destined for sale in Los Angeles and elsewhere in the United States, including more than $70 million in cocaine recovered by international law enforcement.
In an indictment that was unsealed late yesterday, Dicson Penagos-Casanova, 36, and Juan Gabriel Rios Sierra, 34, are charged with spearheading the conspiracy to “coordinate aerial shipments of ton-quantities of cocaine” for sale to “cocaine-trafficking syndicates” in Central America.
Specifically, Penagos and Rios would “transport the cocaine via overland routes from production laboratories outside Meta, Colombia, to underground storage facilities near clandestine airstrips in the western Apure Department of Venezuela.” They would “arrange for bribes to be paid to Venezuelan military and government officials” in an effort to ensure that aircraft carrying cocaine loads “enjoyed safe passage through Venezuelan airspace.” Using jets that they acquired “through straw purchasers in the United States,” Penagos and Rios would hire pilots to fly the cocaine to the “Central American distribution hubs,” where the drugs would be offloaded “for further distribution” in Los Angeles and elsewhere in the United States and Mexico.
"By taking key players out of commission, we are disrupting the drug cartels’ ability to import their dangerous narcotics into our country,” said United States Attorney Eileen M. Decker. “These defendants’ arrival in the U.S. for prosecution marks a significant victory for law enforcement here and in Central and South America, which have worked in concert to ensure justice is achieved in this case.”
The indictment focuses on two air shipments in January and May of 2015 with a combined 2,880 kilograms (approximately 3.2 tons) of cocaine, which has a black market wholesale value of approximately $72 million. Both shipments were ultimately recovered by international law enforcement after two aircraft crashed. The January 2015 cocaine shipment was shot down by the Venezuelan Air Force shortly after takeoff. Soon thereafter, Dutch law enforcement recovered kilogram-sized packages of cocaine that were floating in the Caribbean Sea near Aruba. The May 2015 aircraft crashed into the Caribbean Sea near the Colombian port of Barranquilla after its engine failed.
The indictment also outlines intercepted communications in which Penagos and Rios coordinated the cocaine shipments and discuss the two downed aircraft, including sharing an article from a Honduran newspaper reporting on the January 2015 shoot-down and speculating on whether the May 2015 crash was also the product of “intervention by the Venezuelan military.”
“The vast majority of cocaine imported to the U.S. originates in Colombia, and a substantial amount of it transits the Los Angeles area,” said DEA Special Agent in Charge Steve Comer. “This investigation penetrated the highest levels of multiple drug cartels and disrupted the entire cocaine supply chain, from the production in Colombia to the distribution in the U.S. Continued collaboration between DEA and our foreign and domestic law enforcement partners will deliver similar blows to the cocaine industry, which is already being forced to rethink its logistics.”
Penagos and Rios were delivered to United States custody yesterday after Colombian courts approved the extradition request. They are expected to be arraigned on the indictment this afternoon in United States District Court in Los Angeles. If convicted of the charges in the indictment, Penagos and Rios each face a statutory maximum prison term of life in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The investigation in this case was conducted by the Drug Enforcement Administration, both in Los Angeles and Colombia; the Los Angeles High Intensity Drug Trafficking Area Task Force; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The Colombian, Aruban and Dutch governments provided substantial assistance.
The case is being prosecuted by Assistant United States Attorneys Benjamin Barron, Carol Alexis Chen and Ryan Weinstein of the Organized Crime Drug Enforcement Task Force Section.
Twenty-Two Members of Bronx Drug Trafficking Organization Charged in Manhattan Federal Court with Narcotics Trafficking and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging 22 members of the “Flybridge” drug trafficking organization with narcotics trafficking and firearms offenses. The case has been assigned to United States District Judge Gregory H. Woods. The defendants will be presented before United States Magistrate Judge Ronald L. Ellis later this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “With the indictment of 22 alleged members of a violent drug trafficking group, we seek to stem the flow of drugs and the cycle of violence in the Highbridge neighborhood of the Bronx. As alleged, these defendants trafficked in all types of drugs – heroin, crack cocaine, cocaine, oxycodone, and marijuana – peddling it from restaurants, convenience stores, and apartment buildings and protecting their illegal trade with guns and violence. I thank our partners at the FBI and NYPD for their work in this investigation and for their commitment to making our city safer and drug-free.”
FBI Assistant Director in Charge William F. Sweeney Jr. said: “As alleged, the ‘Flybridge’ crew conspired to sell narcotics including crack cocaine, cocaine, heroin, oxycodone and marijuana in the Highbridge neighborhood out of the Bronx. Selling out of restaurants, convenience stores and apartment buildings, the Flybridge crew brought in violence too. The FBI New York Metro Safe Streets Task Force will continue to go after gangs to clear our communities of violence and drugs.”
Police Commissioner James P. O’Neill said: “These defendants treated a segment of the Highbridge section of the Bronx as their own supermarket for illegal drugs, including marijuana, pills, heroin and cocaine without any regard for the adverse impact on the residents and businesses in the area. As is usually the case, this drug activity went hand-in-hand with illegal firearms and associated violence. Exceptional investigative and case development work went into building the case against these defendants. Once again, the combined efforts of our law enforcement and prosecution partners have paid off with the indictment of those responsible for infecting this Bronx community with the poison of drugs and violence.”
As alleged in the Indictment and in other court papers[1]:
The “Flybridge” drug trafficking organization (the “Flybridge DTO”) is a group of individuals who are engaged in narcotics trafficking and violence in the vicinity of 165th Street and Woodycrest Avenue, in the Highbridge neighborhood of the Bronx. From at least in or about 2014, up to and including in or about September 2016, in the Southern District of New York and elsewhere, MARC BENVENUTTI, JONATHAN PEREZ, a/k/a “G,” KENNETH LACEN, a/k/a “Montana,” VERDELL PICKNEY, a/k/a “Verdell Davis,” a/k/a “V-12,” PAUL GIST, a/k/a “Peewee,” a/k/a “Sweet Pea,” ROBERT GIST, a/k/a “G-Baby,” CICERO WILLIAMS, a/k/a “Tubes,” a/k/a “Boobie,” JOSEPH ENCARNACION, a/k/a “Cabeza,” KELVIN POLANCO, a/k/a “Psycho,” a/k/a “Fresh,” JABARI ADAMS, a/k/a “Flea,” a/k/a “Bari,” BRANDON SMITH, a/k/a “B Skillz,” JOSEPH RIVERA, a/k/a “Jojo,” LANCE WRIGHT, CYNTHIA WOODS, a/k/a “Brooklyn,” JUNIOR GRIFFIN, KEITH NESBITT, a/k/a “Baldy,” GREGORY HERNANDEZ, a/k/a “Kane,” EDUARDO ROSA, a/k/a “Lil Bro Ed,” LUIS CABAN, a/k/a “Jay,” DANIEL RENVILL, a/k/a “D,” AMANDA LOPEZ, and MADELINE OLIVARES conspired to distribute significant amounts of narcotics, including crack cocaine, cocaine, heroin, oxycodone, and marijuana, in and around, among other places, the Highbridge neighborhood of the Bronx, on a daily basis. The Flybridge DTO controlled narcotics sales between 164th Street and 165th Street, between Ogden Avenue and Anderson Avenue, including by selling out of restaurants, convenience stores, and in and around apartment buildings in that area.
In addition, members of the Flybridge DTO protected and maintained their drug business through firearms and acts of violence. For example, in or about March 2016, KENNETH LACEN, a/k/a “Montana,” the defendant, bragged about an incident in which he had attempted to shoot at another individual because of a drug debt. In or about March 2014, JONATHAN PEREZ, a/k/a “G,” the defendant, engaged in a dispute with rival drug dealers that culminated in a shootout on the Major Deegan Expressway, during the course of which PEREZ was himself shot. Other members of the Flybridge DTO, such as VERDELL PICKNEY, a/k/a “Verdell Davis,” a/k/a “V-12,” ROBERT GIST, a/k/a “G-Baby,” PAUL GIST, a/k/a “Sweet Pea,” a/k/a “Peewee,” and AMANDA LOPEZ, stored firearms in the area in which the Flybridge DTO operated, in order to, among other things, protect their drug turf.
Count One of the Indictment charges MARC BENVENUTTI, JONATHAN PEREZ, a/k/a “G,” KENNETH LACEN, a/k/a “Montana,” VERDELL PICKNEY, a/k/a “Verdell Davis,” a/k/a “V-12,” PAUL GIST, a/k/a “Peewee,” a/k/a “Sweet Pea,” ROBERT GIST, a/k/a “G-Baby,” CICERO WILLIAMS, a/k/a “Tubes,” a/k/a “Boobie,” JOSEPH ENCARNACION, a/k/a “Cabeza,” KELVIN POLANCO, a/k/a “Psycho,” a/k/a “Fresh,” JABARI ADAMS, a/k/a “Flea,” a/k/a “Bari,” BRANDON SMITH, a/k/a “B Skillz,” JOSEPH RIVERA, a/k/a “Jojo,” LANCE WRIGHT, CYNTHIA WOODS, a/k/a “Brooklyn,” JUNIOR GRIFFIN, KEITH NESBITT, a/k/a “Baldy,” GREGORY HERNANDEZ, a/k/a “Kane,” EDUARDO ROSA, a/k/a “Lil Bro Ed,” LUIS CABAN, a/k/a “Jay,” DANIEL RENVILL, a/k/a “D,” AMANDA LOPEZ, and MADELINE OLIVARES with participating in a conspiracy to distribute narcotics, including crack cocaine, cocaine, heroin, oxycodone, and marijuana.
Count Two of the Indictment charges KENNETH LACEN, a/k/a “Montana,” VERDELL PICKNEY, a/k/a “Verdell Davis” a/k/a “V-12,” and CICERO WILLIAMS, a/k/a “Tubes,” a/k/a “Boobie,” with possessing firearms in furtherance of the narcotics conspiracy charged in Count One, which were discharged.
Count Three of the Indictment charges JONATHAN PEREZ, a/k/a “G,” ROBERT GIST, a/k/a “G-Baby,” PAUL GIST, a/k/a “Sweet Pea,” a/k/a “Peewee,” and AMANDA LOPEZ with possessing firearms in furtherance of the narcotics conspiracy charged in Count One.
* * *
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentences imposed on the defendants will be determined by the Court.
A chart containing the names of the defendants, and the charges and maximum penalties they face, is attached.
Mr. Bharara thanked the FBI and the NYPD, in particular, the New York Metro Safe Streets Task Force, as well as the Criminal Investigators at the United States Attorney’s Office, for their work on the investigation.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Rebekah Donaleski, Kimberly J. Ravener, and Jilan J. Kamal are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Marc Benvenutti, et al., 16 Cr. 656 (GHW)
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Conspiracy to Distribute Narcotics
21 U.S.C. § 846
MARC BENVENUTTI JONATHAN PEREZ KENNETH LACEN VERDELL PICKNEY PAUL GIST
ROBERT GIST
CICERO WILLIAMS
JOSEPH ENCARNACION
KELVIN POLANCO
JABARI ADAMS
BRANDON SMITH
JOSEPH RIVERA
LANCE WRIGHT CYNTHIA WOODS
JUNIOR GRIFFIN
KEITH NESBITT
GREGORY HERNANDEZ
EDUARDO ROSA
LUIS CABAN
DANIEL RENVILL
AMANDA LOPEZ MADELINE OLIVARES
Life in prison
2
Discharge of Firearms in Furtherance of Narcotics Trafficking
18 U.S.C. 924(c)(1)(A)(iii)
KENNETH LACEN
VERDELL DAVIS
CICERO WILLIAMS
Life in prison
3
Possession of Firearms in Furtherance of Narcotics Trafficking
18 U.S.C. 924(c)(1)(A)(i)
JONATHAN PEREZ
ROBERT GIST
PAUL GIST
AMANDA LOPEZ
Life in prison
DEFENDANT
AGE
RESIDENCE
MARC BENVENUTTI
22
Bronx, New York
JONATHAN PEREZ,
a/k/a “G”
24
Bronx, New York
KENNETH LACEN,
a/k/a “Montana”
21
Bronx, New York
VERDELL PICKNEY,
a/k/a “Verdell Davis”
a/k/a “V-12”
20
Bronx, New York
PAUL GIST,
a/k/a “Peewee”
a/k/a “Sweet Pea”
22
Bronx, New York
ROBERT GIST,
a/k/a “G-Baby”
25
Bronx, New York
CICERO WILLIAMS,
a/k/a “Tubes”
a/k/a “Boobie”
35
Bronx, New York
JOSEPH ENCARNACION,
a/k/a “Cabeza”
39
Bronx, New York
KELVIN POLANCO,
a/k/a “Psycho”
a/k/a “Fresh”
23
Bronx, New York
JABARI ADAMS,
a/k/a “Flea”
a/k/a “Bari”
24
Bronx, New York
BRANDON SMITH,
a/k/a “B Skillz”
19
Bronx, New York
JOSEPH RIVERA,
a/k/a “Jojo”
22
Bronx, New York
LANCE WRIGHT
46
Bronx, New York
CYNTHIA WOODS,
a/k/a “Brooklyn”
54
Bronx, New York
JUNIOR GRIFFIN
41
Bronx, New York
KEITH NESBITT,
a/k/a “Baldy”
52
Bronx, New York
GREGORY HERNANDEZ,
a/k/a “Kane”
40
Bronx, New York
EDUARDO ROSA,
a/k/a “Lil Bro Ed”
21
Bronx, New York
LUIS CABAN,
a/k/a “Jay”
37
Bronx, New York
DANIEL RENVILL,
a/k/a “D”
23
Bronx, New York
AMANDA LOPEZ
21
Bronx, New York
MADELINE OLIVARES
36
Bronx, New York
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described should be treated as an allegation.
Treasure Valley Drug Dealers Sentenced to Federal PrisonRead the Press Release
BOISE – Stacy Duane Wilfong, 40, of Nampa, Idaho, was sentenced yesterday to 220 months in prison for his role in organizing and directing a drug conspiracy involving ten other individuals in the Treasure Valley, U.S. Attorney Wendy J. Olson announced. Wilfong was indicted by a federal grand jury on December 8, 2015 and entered his guilty plea on June 2, 2016.
Wilfong came to the attention of investigators in January of 2015 when a co-conspirator, Elizabeth Gaytan, who sold methamphetamine to undercover officers, referred to Wilfong as her source of supply. Investigators applied for and received a court order authorizing the interception of Wilfong’s telephone communications. During the course of approximately twenty days, Wilfong made hundreds of calls dealing with drug distribution. The investigation revealed that Wilfong and his co-conspirators bought and sold methamphetamine, heroin, pills including oxycodone, and a synthetic controlled substance called Alpha-pyrrolidinopentiophenone, known as "a-PVP," or “bath salts” to individuals throughout the Treasure Valley.
In addition to Wilfong, four other co-defendants have been sentenced. Anthony “Tony” Kitchen was sentenced for his role in the conspiracy today and will be serving 71 months in federal prison. Jocelin Jessica Gonzalez, 19, and Elizabeth Ann Gaytan, 37, both from Nampa, were sentenced on July 28, 2016. Gonzalez was sentenced to 40 months imprisonment. Gaytan was sentenced to 100 months of imprisonment. Regina Wade, 50, of Boise was sentenced on August 9 to 41 months in prison.
Two co-defendants are awaiting sentencing. Breeannyn Nicole Pederson, 25, of Parma, and Isela F. Garza, 36, of Nampa, are scheduled to be sentenced on November 9th and 10th respectively. Co-defendant, David Anthony Wales, 31, of Boise, is scheduled to enter a guilty plea on October 6, 2016. Three other co-defendants, John Matthew Caviness, Jr., 34, of Caldwell, Adam William Dillon, 28, of Nampa, and Jason Lee Burgess, 44, of Garden City are currently set for trial.
The crime of conspiracy to distribute a controlled substance is punishable by up to twenty years in prison, a maximum fine of $1,000,000 and three years of supervised release.
These cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Tohono O’odham Man to Serve 46 Months in Prison for Stabbing Another Tribal MemberRead the Press Release
TUCSON, Ariz. – Yesterday, Lauterio Keanu Ace Valenzuela, 24, of Tucson, Ariz, a member of the Tohono O’odham Nation, was sentenced by U.S. District Judge Jennifer G. Zipps to 46 months in prison. Valenzuela had previously pleaded guilty to an assault resulting in serious bodily injury.
On Oct. 18, 2015, Valenzuela stabbed another Tohono O’odham Nation member following an argument. The incident occurred in the San Xavier District within the Tohono O’odham reservation. The victim was stabbed several times in the arm and suffered a laceration to the ear. The injuries were not life-threatening. Valenzuela was on federal supervision at the time of the assault. He absconded following the assault and was arrested two months later.
The investigation in this case was conducted by the Tohono O’odham Police Department and the Federal Bureau of Investigation. The prosecution was handled by Raquel Arellano, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-15-2147-TUC-JGZ
RELEASE NUMBER: 2016-089_Valenzuela
# # #
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 and updates.
Three Texas Sources of ICE Methamphetamine and Local Distributor Plead GuiltyRead the Press Release
ABINGDON, VIRGINIA – Three sources of ICE methamphetamine—who supplied a local conspiracy with large quantities of the drug for multiple years—have pled guilty in federal court, along with a local man who was part of the drug distribution network, United States Attorney John P. Fishwick Jr. announced today.
Recently in separate hearings before the District Court, Angel Soliz Jr., 37, Angel Soliz Sr., 56, and Ysidro Juarez III, 53, all of Houston, Texas, pled guilty to a lesser-included count of conspiring to distribute and possess with the intent to distribute methamphetamine. As part of his guilty plea, Soliz Jr. agreed to forfeit more than $800,000 which was seized from his home in Texas.
According to evidence presented by prosecutors, the Texas-trio admitted to being the source of much of the ICE methamphetamine that was sold in a multi-defendant conspiracy and which has resulted in more than a dozen federal convictions in U.S. District Court in Abingdon. Soliz Sr. and Soliz Jr. coordinated the supply of methamphetamine from Texas, while Juaerz worked under them to help distribute the drug. During the course of the conspiracy, various persons from Eastern Kentucky and Southwest Virginia would travel to Texas to purchase methamphetamine and subsequently transport it back via interstate highways, avoiding law enforcement detection along the way. Once the ICE methamphetamine had arrived in Kentucky and Virginia, it would be distributed to others.
Also in District Court, Ronald Sizemore, 56, of Kentucky, pled guilty to one count of conspiracy to distribute and possess with the intent to distribute ICE methamphetamine. Sizemore acted as one of the local distributors of the drug.
“This case is a prime example of law enforcement working together to not only stop a conspiracy at the distribution level but following the chain to the source and prosecuting those folks as well,” U.S. Attorney Fishwick said today. “Methamphetamine abuse is still a major problem in our area and there is still work to be done, but the community should feel good about the amount of drugs that have been taken off their streets with this prosecution.”
The investigation of the case was conducted by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives; United States Drug Enforcement Administration; Virginia State Police; Kentucky State Police; Harris County, Texas Sherriff’s Office; and Russell County, Virginia Commonwealth’s Attorney’s Office. Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
Three Ohio men indicted for conspiring to transport explosives that could be used to crack safesRead the Press Release
Three Ohio men were indicted for conspiring to transport explosives that could be used to crack safes, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Indicted are: Frank Michael Susany, Jr., 52, of Boardman, Ohio; Robert Thomas Courtney, Jr., 44, of North Jackson; and James Patrick Quinn, 51, of Youngstown.
They are charged with with receipt and transportation of explosive materials, conspiracy and operation of an apparatus to interfere with the transmission of communications and signals.
Susany, Courtney and Quinn, from February through April 2013, conspired to receive and transport explosive materials that could be used to crack safes at jewelry stores and coin shops, according to the indictment.
It was part of the conspiracy that Susany, Quinn and Courtney would break into jewelry stores and coin stores to steal valuable items; that the money obtained by selling the stolen items would be used to buy explosive materials; and that once they obtained the explosive materials, they would use the materials to crack safes at other jewelry stores and coin shops, according to the indictment.
On April 19, 2013, Susany possessed and used a device that jammed cellular telephone communications and store alarm systems connected to cellular back-ups to disable a coin store’s alarm system, according to the indictment.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Individuals Sentenced for Methamphetamine Distribution and Money LaunderingRead the Press Release
POCATELLO – Edgar Amador-Carrillo, age 23, and Atenedoro Hernandez-Gomez, age 28, both of Malta, Idaho, were sentenced yesterday for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Hernandez-Gomez was also sentenced for unlawful possession of a firearm. Chief U.S. District Judge B. Lynn Winmill sentenced Amador-Carrillo to 135 months in prison and Hernandez-Gomez to 150 months in prison. Yesterday, Judge Winmill sentenced co-defendant Sheyla Aguilar, age 25, of Ventura, California to 18 months in prison for money laundering related to the drug offense. Amador-Carrillo and Hernandez-Gomez pleaded guilty on June 21, 2016, and Aguilar pleaded guilty on June 29, 2016.
According to the plea agreements, on January 21, 2016, Amador-Carrillo agreed to provide an undercover officer with one pound of methamphetamine. While traveling to the location of the meeting, Amador-Carrillo and Hernandez-Gomez were stopped by law enforcement in Bonneville County, Idaho. A search of the vehicle uncovered 454 grams of actual methamphetamine. Additionally, a search of the vehicle recovered a Star Arms .45 ACP handgun, serial number 2060457, in the glove compartment of the car. A fingerprint of Amador-Carrillo’s was found on the handgun. Prior to that, Aguilar received $1,000 from Amador-Carrillo in Idaho Falls, Idaho. Aguilar knew this money represented the proceeds from the sale of methamphetamine. At Amador-Carrillo’s direction, Aguilar wired this money via Money-Gram to a person out of state.
The case was investigated by the Idaho Falls Police Department, the Bonneville County Sheriff’s Office, Idaho State Police, United States Department of Homeland Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney in cooperation with the Bonneville Prosecutor’s Office.
Thousand Oaks Man Sentenced to Nearly 5 Years in Federal Prison for Illegal Gun Sales Months After Firearm Conviction in State CourtRead the Press Release
LOS ANGELES – A Ventura County man who illegally sold five firearms in less than a month and agreed to sell three more during an undercover operation last year has been sentenced to nearly five years in federal prison.
Joshua Pineda, 24, of Thousand Oaks, was sentenced on Monday to 57 months in prison after admitting that he illegally sold five rifles during transactions in October and November of 2015 that took place in parking lots in Simi Valley and Thousand Oaks. After selling the rifles for thousands of dollars, Pineda agreed to sell three more to an undercover law enforcement officer.
Most of the eight firearms in this case were AR-15-type assault rifles, several of which did not have serial numbers. According to court documents, Pineda also sold more than 1,000 rounds of ammunition to the undercover agent.
“Parking lot sales of untraceable assault rifles by a convicted felon pose a serious danger to the community,” said United States Attorney Eileen M. Decker. “Transactions like these supply an illegal market for firearms that endangers law-abiding citizens when the deadly weapons make their way into the hands of criminals.”
Pineda pleaded guilty in February to federal offenses of selling firearms without a license and being a felon in possession of a firearm. Pineda previously pleaded guilty in Los Angeles Superior Court in February 2015 to a felony offense involve an assault rifle.
Pineda was sentenced this week by United States District Judge Dale S. Fischer.
“Illegal acquisition and disposition of untraceable firearms presents a significant challenge and a major concern to our community” said ATF Special Agent in Charge Eric D. Harden. “These offenses circumvent regulations in place intended to thwart firearm possession by prohibited individuals.”
The case against Pineda was investigated by the Bureau of Tobacco, Alcohol, Tobacco, Firearms and Explosives, which received substantial assistance from the Ventura County Sheriff’s Department.
This case was prosecuted by Gregory S. Scally of the Santa Ana Branch Office
Thousand Oaks Man Sentenced to Nearly 5 Years in Federal Prison for Illegal Gun Sales Months After Firearm Conviction in State CourtRead the Press Release
LOS ANGELES – A Ventura County man who illegally sold five firearms in less than a month and agreed to sell three more during an undercover operation last year has been sentenced to nearly five years in federal prison.
Joshua Pineda, 24, of Thousand Oaks, was sentenced on Monday to 57 months in prison after admitting that he illegally sold five rifles during transactions in October and November of 2015 that took place in parking lots in Simi Valley and Thousand Oaks. After selling the rifles for thousands of dollars, Pineda agreed to sell three more to an undercover law enforcement officer.
Most of the eight firearms in this case were AR-15-type assault rifles, several of which did not have serial numbers. According to court documents, Pineda also sold more than 1,000 rounds of ammunition to the undercover agent.
“Parking lot sales of untraceable assault rifles by a convicted felon pose a serious danger to the community,” said United States Attorney Eileen M. Decker. “Transactions like these supply an illegal market for firearms that endangers law-abiding citizens when the deadly weapons make their way into the hands of criminals.”
Pineda pleaded guilty in February to federal offenses of selling firearms without a license and being a felon in possession of a firearm. Pineda previously pleaded guilty in Los Angeles Superior Court in February 2015 to a felony offense involve an assault rifle.
Pineda was sentenced this week by United States District Judge Dale S. Fischer.
“Illegal acquisition and disposition of untraceable firearms presents a significant challenge and a major concern to our community” said ATF Special Agent in Charge Eric D. Harden. “These offenses circumvent regulations in place intended to thwart firearm possession by prohibited individuals.”
The case against Pineda was investigated by the Bureau of Tobacco, Alcohol, Tobacco, Firearms and Explosives, which received substantial assistance from the Ventura County Sheriff’s Department.
This case was prosecuted by Gregory S. Scally of the Santa Ana Branch Office
Third Kingsmen Motorcycle Club Member Pleads Guilty to Rico ConspiracyRead 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 Ryan Myrtle, 32, of Buffalo, NY, pleaded guilty to RICO conspiracy before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant admitted to being a member of the Kingsmen Motorcycle Club (KMC), a criminal organization which engaged in such crimes as distribution of controlled substances, maintaining premises for use and distribution of controlled substances, possession, use and sale of firearms, sales of untaxed cigarettes, and promoting prostitution. The KMC sought to preserve and protect their power, territory, and reputation through intimidation, violence, threats of violence, assaults, attempted murder and murders, and was involved in placing victims, potential witnesses, and others in fear of the enterprise, its members, and associates, through violence and threats of violence.
Myrtle further admitted that the Kingsmen operated by a strict chain of command serving under the direction of Kingsmen National President, David Pirk. On June 7, 2013, KMC forcibly shut down the Springville Chapter and stripped members of their colors because they were deemed non-compliant. The defendant participated in the forced shutdown during which other KMC members struck a victim in the head with a blunt object and stole items from the Springville clubhouse. They then used bleach to clean areas where the victim bled and cut and removed portions of the rug which contained blood.
In addition, on September 21, 2012, Myrtle participated in a drive-by shooting in order to retaliate against a former KMC member who assaulted a KMC Regional President. On that date, two car loads of KMC members, including the defendant, drove to the residence of the person in the Riverside section of Buffalo and opened fire at the residence. No injuries were reported.
Other acts of alleged violence by the Kingsmen include the murders of KMC members Paul Maue and Daniel "DJ" Szymanski who were murdered behind the North Tonawanda KMC Chapter clubhouse on September 6, 2014.
Myrtle is one of 16 defendants arrested in this case and the third to be convicted. Charges are pending against the remaining 13 defendants. 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.
Today’s plea is the culmination of an investigation led by the Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen. Assisting in the investigation: the FBI Knoxville, TN, and Jacksonville, FL Field Offices, Immigration and Customs Enforcement, Homeland Security Investigations, the Erie County Sheriff’s Office, the Buffalo Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New York State Police, the Olean Police Department, the Lancaster Police Department, the Amherst Police Department, the Town of Tonawanda Police Department, the Niagara Frontier Transportation Authority Police, the Cattaraugus County Sheriff’s Department, and the Hamburg Police Department.
Sentencing will be scheduled at a later date.Tennessee Man Pleads Guilty to Federal Methamphetamine ChargeRead the Press Release
ABINGDON, VIRGINIA – A Tennessee man, who conspired with others to traffic ICE methamphetamine into Southwest Virginia for further distribution, pled guilty today in the United States District Court for the Western District of Virginia, United States Attorney John P. Fishwick Jr. announced.
Roger Coley, 60, pled guilty today to one count of conspiring to possess with the intent distribute ICE methamphetamine. Coley will be sentenced on December 28, 2016, at the federal courthouse in Abingdon.
“This conspiracy brought large quantities of this very potent form of ICE methamphetamine into Southwest Virginia and preyed on the addictions of others for financial gain,” United States Attorney Fishwick said today. “Law enforcement in this case worked cooperatively to dismantle this conspiracy and bring this defendant, and others involved in this activity, to justice.”
According to evidence presented at today’s guilty plea hearing by Special Assistant United States Attorney Kevin Jayne, Coley assisted in a conspiracy to traffic ICE methamphetamine from Tennessee into Virginia. Specifically, Coley, and co-defendant Randy Doss, who were both located in Tennessee, supplied ICE methamphetamine to co-conspirators Mike Warren, Summer Delp, Kevin Roark and Tim Montgomery, and others, who would typically travel from Virginia to Tennessee to purchase the methamphetamine. Once the methamphetamine arrived in Virginia, the group would further distribute the drug.
The investigation of the case was conducted by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives; United States Drug Enforcement Administration; United States Marshals Service; and Virginia State Police. Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
Tax Return Preparer Charged with Preparing False Tax Returns, Bankruptcy Fraud and Naturalization FraudRead the Press Release
A former tax return preparation business owner was indicted by a federal grand jury in Kansas City, Kansas for aiding and assisting in the preparation and presentation of false income tax returns, making a false bankruptcy declaration, false testimony under oath in connection with a bankruptcy matter and unlawful procurement of citizenship or naturalization announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and Acting U.S. Attorney Thomas E. Beall of the District of Kansas.
According to the indictment filed on Sept. 7 and unsealed today, Geoffrey Rotich, owned and operated Inventax, a tax return preparation business in Shawnee, Kansas. The indictment alleges that Rotich prepared false and fraudulent tax returns for other individuals, claiming false deductions for medical and dental expenses and false education expenses. The indictment further alleges that, in connection with a Chapter 11 bankruptcy case, Rotich made false declarations in his bankruptcy petition and related schedules and made false statements under oath during a meeting of creditors. The indictment also alleges that Rotich obtained naturalization and citizenship to which he was not entitled on the basis of false representations on his application for naturalization.
If convicted, Rotich faces a statutory maximum sentence of three years in prison for each of the tax counts, a statutory maximum sentence of five years in prison for each of the bankruptcy counts and a statutory maximum sentence of 10 years in prison for the naturalization count. Rotich also faces a period of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo and Acting U.S. Attorney Beall commended the Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security investigators and the U.S. Trustee’s Office in Wichita, who conducted the investigation and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney D. Christopher Oakley of the District of Kansas, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tamaqua Pennsylvania Woman Charged with Taking Narcotics from the Veterans Administration HospitalRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Janice M. Matrician, age 50, of Tamaqua, Pennsylvania has been charged with acquiring narcotics by fraud or misrepresentation in connection to an incident at the Veterans Administration Hospital located in Wilkes-Barre, Pennsylvania on May 22, 2015.
According to United States Attorney Bruce D. Brandler, Matrician, a Nurse employed by the Veterans Administration Hospital, is charged with obtaining narcotics by fraud or misrepresentation. Matrician is alleged to have stolen narcotics by representing in the hospital’s computerized automated distribution system that she had disposed of them, when in fact she was keeping the drugs for her own personal use.
The investigation was conducted by the U.S. Department of Veterans Affairs Police and is being prosecuted by Assistant United States Attorney Todd K. Hinkley.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is four years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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St. Louis County Man Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – Charles Hicks, Fenton, Missouri, pled guilty to a one-count mail fraud indictment this afternoon.
According to his plea agreement, Hicks devised a false invoice scheme to defraud two successive employers, RockTenn Company and MarChem Company, over the course of two and a half years. Hicks had authority to identify vendors and authorize purchases and used dummy companies to submit and receive payments for false invoices. In all, Hicks admitted to defrauding the two companies of $370,000.
Hicks appeared before U.S. District Judge Stephen N. Limbaugh, Jr. Sentencing has been set for January 4, 2017.
Hicks faces a maximum penalty of 20 years in prison and/or a fine of $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Restitution to the victims is also mandatory.
This case was investigated by the FBI and the U.S. Postal Inspection Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
St. James Resident Sentenced for Selling and Possessing Migratory BirdsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROYLEY A. FOLSE, JR., age 69, a resident of St. James Parish, was sentenced today after previously pleading guilty to one count of selling migratory game birds, in violation of 16 U.S.C. §§703 and 707.
U.S. District Judge Stanwood Duval sentenced FOLSE to a probationary term of two years.
According to court documents, from June 2010 to December 2011, FOSLE illegally bartered and sold for cash four yellow-crowned night herons and sixty-two white ibis, which are migratory birds protected under the Migratory Bird Treaty Act (MBTA).
U.S. Attorney Polite praised the work of the Louisiana Department of Wildlife and Fisheries and the United States Fish and Wildlife Service in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Springfield Man Convicted of Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man has been found guilty in federal court of illegally possessing a firearm.
Scott Goodwin-Bey, 49, of was found guilty of being a felon in possession of a firearm and ammunition. U.S. District Judge M. Douglas Harpool issued the verdict on Tuesday, Oct. 4, 2016, following a one-day bench trial on Aug. 23, 2016.
According to the court’s findings of fact, Goodwin-Bey entered the Star Mart on W. Chestnut Expressway on Nov. 30, 2014, carrying a loaded Ruger 9mm pistol. Goodwin-Bey placed the gun on the counter and the store clerk took the firearm and handed it to the store manager. Both the clerk and the manager recognized Goodwin-Bey from earlier interactions because he had behaved in a strange manner. The clerk escorted Goodwin-Bey outside the store and Goodwin-Bey left in a white Lincoln. The store manager dialed 911 and requested that officers come to the Star Mart because of concern over Goodwin-Bey’s actions.
When an officer arrived, the store manager turned over the firearm. Another officer stopped Goodwin-Bey, who was driving the Lincoln, and he was arrested. Officers found loose 9mm ammunition on the floor of his vehicle and in the parking lot in front of the store in the vicinity of where the vehicle had been parked.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Goodwin-Bey has two prior felony convictions for carrying a concealed weapon and prior felony convictions for being a felon in possession of a firearm, possession of crack cocaine, resisting arrest and conspiracy to distribute crack cocaine.
Under federal statutes, Goodwin-Bey is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
South Pekin Man Sentenced to 20 Years in Prison for Distribution of Child Pornography and Impersonating U.S. MarshalRead the Press Release
Peoria, Ill. – Chief U.S. District Judge James E. Shadid sentenced Arthur D. Wheeler, 31, of South Pekin, Ill., to serve 20 years in prison for distribution of child pornography and impersonating a federal officer. Wheeler appeared yesterday before Judge Shadid, who ordered that Wheeler remain on supervised release for a period of five years following completion of his prison term. Wheeler pled guilty to the charges on Feb. 25, 2016.
Assistant U.S. Attorney Ronald L. Hanna prosecuted the case. The charges were the result of an investigation conducted by the U.S. Secret Service; task force members of the Central Illinois Cyber Crime Unit, including the Peoria County Sheriff’s Office and the Bloomington Police Department; the Pekin Police Department; Illinois State Police; and the U.S. Marshal’s Service.
According to court documents, in May 2015, Wheeler obtained nude photos on his phone from a minor female in Missouri and by accessing the minor’s Facebook account. Wheeler appeared June 1, 2015, in the Circuit Court of Tazewell County seeking an order of protection against the minor’s family. Wheeler stated to the court that the minor’s family had threatened him because of his communications with the minor during the preceding two weeks. During the court proceeding, Wheeler produced his phone, which was ultimately seized and examined by law enforcement. The forensic review revealed that on three separate occasions, in late May and early June 2015, Wheeler used the cellphone’s text function to send naked images of the minor to approximately 120 people in the area code where the minor lives. Wheeler also acknowledged that on June 1, 2015, he impersonated a U.S. Marshal in an attempt to get information from an individual about the minor’s whereabouts.
Wheeler is a registered sex offender as a result of a prior conviction for a sex crime involving a minor in Illinois in 2011. He has remained in the custody of the U.S. Marshals Service since he was arrested on Aug. 24, 2015.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
South Florida Resident Pleads Guilty in Identity Theft Scheme Involving the Cashing of over $140,000 from Altered Tax Refund ChecksRead the Press Release
A South Florida resident pled guilty for his involvement in an identity theft scheme involving the cashing of over $140,000 in altered tax refund checks.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Contreas Faison, 44, pled guilty to one count of theft of government funds, in violation of Title 18, United States Code, Section 641. As part of his plea agreement, Faison agreed to restitution in the amount of $140,000.
According to court documents, in 2013 and 2014, Faison obtained U.S. Treasury tax refund checks that had been fraudulently altered so that the taxpayer's name did not appear on the check. Instead, the check contained the name of the defendant's company or the name of another bank account holder. Faison deposited these checks into bank accounts in his name or in the name of other people, and then Faison used the proceeds for his own benefit. In total, the defendant cashed over $140,000 from fifteen different altered U.S. Treasury tax refund checks that were stolen or otherwise fraudulently obtained.
Faison is scheduled to be sentenced on December 9, 2016 before United States District Judge Cecilia M. Altonaga. At sentencing, the defendant faces up to ten years in prison.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the USSS. The case is being prosecuted by Assistant United States Attorney Vanessa S. Snyder.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Seventeen Individuals Indicted for Respective Roles in Human Trafficking Scheme that Exploited Hundreds of Thai Women for Commercial Sex in the United StatesRead the Press Release
Sex Trafficking Organization Engaged in Visa Fraud and Debt Scheme to Recruit Victims into the United States for Prostitution
An indictment unsealed late yesterday in St. Paul, Minnesota, charges 17 members of an international sex trafficking organization with transporting hundreds of women from Thailand and profiting from advertising them for commercial sex throughout the United States.
The charged defendants include 12 Thai nationals and five U.S. nationals. Eight of the 17 charged defendants were arrested yesterday at various locations in Minnesota, California, Illinois, Georgia and Hawaii. One charged defendant was previously arrested in Belgium and four defendants remains at large.
The announcement was made by Attorney General Loretta E. Lynch; U.S. Attorney Andrew M. Luger of the District of Minnesota; Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; Special Agent in Charge Alex Khu of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) St. Paul Division and Special Agent in Charge Shea Jones of the Internal Revenue Service-Criminal Investigation (IRS-CI) St. Paul Field Office.
“Human trafficking is a degrading crime that undermines our nation’s most basic promises of liberty and security," said Attorney General Lynch. “This case demonstrates the Justice Department’s determination to hold traffickers accountable and to help the survivors of this appalling practice reclaim their freedom and dignity. As part of our nationally recognized Anti-Trafficking Coordination Team Initiative, the District of Minnesota is playing a crucial role in those vital efforts, and I want to commend all of the team members whose cooperation led to today’s action.”
“The 17 people charged in this indictment ran a highly sophisticated sex trafficking scheme,” said U.S. Attorney Luger. “They promised women in Thailand a chance at the American dream, but instead exploited them, coerced them and forced them to live a nightmare. In short, the victims lived like modern day sex slaves. Today’s indictment is our ninth sex trafficking case since 2014, but it is the first that targets an entire organization. We will continue to work closely with our federal and local law enforcement partners to target and dismantle these types of far-reaching organizations.”
“The Justice Department created the Anti-Trafficking Coordination Team (ACTeam) Initiative to bring together federal law enforcement agencies to enhance our impact in investigating and prosecuting human trafficking,” said Principal Deputy Assistant Attorney General Gupta. “This case is an outstanding example of these efforts. We will continue to work tirelessly with them to bring traffickers to justice and vindicate the rights of vulnerable victims.”
“This week’s arrests reflect HSI’s global reach and ongoing efforts to dismantle criminal organizations that engage in human trafficking activities,” said Special Agent in Charge Khu. “HSI also remains firmly committed to rescuing victims and getting them help they desperately need to begin recovering from the depredations forced on them by these criminals.”
“From coast to coast, IRS Criminal Investigation is determined to team with our law enforcement partners to track down the individuals who facilitate and launder the proceeds of sex trafficking crimes,” said Special Agent in Charge Jones. “Those who seek to enrich themselves by exploiting the desperate circumstances of their victims will not be tolerated in our cities.”
According to the indictment, which was returned under seal on Sept. 28, 2016, since at least 2009, the criminal organization has recruited and transported hundreds of women, which the organization refers to as “flowers,” from Thailand to various locations across the United States, including Minneapolis, Los Angeles, Chicago, Atlanta, Phoenix, Washington D.C., Las Vegas, Houston, Dallas and Austin, for purposes of exploiting them for prostitution. Once in the United States, victims were allegedly placed in houses of prostitution where they were forced to work long hours – often all day, every day. As alleged in the indictment, the women were not allowed to leave the prostitution houses unless accompanied by a member of the criminal organization.
According to allegations in the indictment, which identifies several of the women as victims of human trafficking, the organization often recruited women from impoverished backgrounds who spoke little English. Recruiters exploited these vulnerabilities during the recruitment process, promising the victims access to a better life in the United States in exchange for a debt of between $40,000 and $60,000, which the women were required to pay off through prostitution earnings. As alleged in the indictment, before transporting the women to the United States, the organization would typically arrange to have the women photographed for purposes of advertising them for sex on websites like backpage.com and eros.com. The organization also encouraged the women to have breast implants in Thailand to make them “more appealing” to potential sex buyers in the United States and added the cost to the victims’ debt.
The organization engaged in widespread visa fraud to facilitate the international transportation of the women into their commercial sex enterprise, the indictment alleges. Members of the criminal organization assisted in obtaining fraudulent visas and travel documents for the women, and members of the conspiracy used personal information on the women and their families, which they gathered in the course of obtaining the fraudulent documents, to threaten victims who became non-compliant or tried to flee.
The defendants include:
- Sumalee Intarathong, 55, who was a boss in the scheme is currently incarcerated in Liege, Belgium, is charged with conspiracy to commit sex trafficking; sex trafficking by use of force, fraud and coercion; conspiracy to commit forced labor; conspiracy to commit transportation to engage in prostitution; transportation to engage in prostitution; conspiracy to engage in money laundering; conspiracy to use a communication facility to promote prostitution and conspiracy to commit visa fraud.
- Chabaprai Boonluea, 42, of Winder, Georgia, was a house boss in the operation and is charged with conspiracy to commit sex trafficking; sex trafficking by use of force, fraud and coercion; conspiracy to commit forced labor; conspiracy to commit transportation to engage in prostitution; transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
- Watcharin Luamseejun, 46, was a house boss in the scheme and is charged with conspiracy to commit sex trafficking; conspiracy to commit forced labor; conspiracy to commit transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
- Pantilla Rodpholka, 31, of Mount Prospect, Illinois, was a house boss in the operation and is charged with conspiracy to commit sex trafficking; conspiracy to commit forced labor; conspiracy to commit transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
- Noppawan Lerslurchachai, 35, of Lomita, California, was a facilitator in the scheme and is charged with conspiracy to commit sex trafficking; sex trafficking by use of force, fraud and coercion; conspiracy to commit forced labor; conspiracy to commit transportation to engage in prostitution; transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
- Khanong Intharathong, 44, of Dunwoody, Georgia, was a facilitator in the operation and is charged with conspiracy to commit sex trafficking; conspiracy to commit transportation to engage in prostitution; transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
- Andrew Flanigan, 51, of Winder, was a facilitator in the operation and is charged with conspiracy to commit sex trafficking; conspiracy to commit transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
- Patcharaporn Saengkham, 41, of Los Angeles, was a facilitator in the scheme and is charged with conspiracy to commit visa fraud.
- Yadaporn Panngoen, 30, Los Angeles, was a facilitator in the scheme and is charged with conspiracy to commit visa fraud.
- Supapon Sonprasit, 31, of St. Paul, was a facilitator in the operation and is charged with conspiracy to commit visa fraud.
- Thi Vu, 48, of Atlanta, was a runner in the operation and is charged with conspiracy to commit sex trafficking; conspiracy to commit transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
- Todd Vassey, 54, of Lahanina, Hawaii, was a runner in the scheme and is charged with conspiracy to commit sex trafficking; conspiracy to commit transportation to engage in prostitution; transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
- John Zbracki, 59, of Lakeville, Minnesota, was a runner in the operation and is charged with conspiracy to commit sex trafficking; conspiracy to commit transportation to engage in prostitution; transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
According to the indictment, Intarathong served as a boss before her arrest in Belgium earlier this year. As alleged in the indictment, each woman identified as a victim of human trafficking was “owned” by Intarathong or another boss until the victim could repay the debt.
According to the indictment, other members of the criminal organization served as “house bosses,” who owned one or more of the houses of prostitution where the “flowers” were exploited for commercial sex. House bosses were responsible for day-to-day operations, including advertising the “flowers” for commercial sex, maintaining the houses of prostitution, scheduling appointments with sex buyers and ensuring that a significant portion of the prostitution proceeds were routed back to the trafficker/boss to pay down the debt. The house boss kept the remainder of the prostitution proceeds, while the women were not permitted to retain any of their earnings, except for the occasional tip offered by a sex buyer.
As set forth in the indictment, other members of the criminal organization served as “facilitators,” who were primarily responsible for laundering the criminal proceeds of the organization and for directing the movement of victims within the United States, while other co-conspirators served as “runners.” The runners were typically men who were paid, in part, by receiving access to sex acts with the women. Runners accompanied the women anytime they were permitted to leave a house of prostitution to obtain personal items, travel as directed by the criminal organization or deposit money into accounts set up by the organization for repayment of the women’s debts. Runners were also sometimes asked to rent hotel rooms, apartments or other facilities for the organization.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The District of Minnesota is one of six districts designated through a competitive, nationwide selection process as a Phase II ACTeam, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
This case is the result of an investigation conducted by HSI; IRS-CI; Department of State’s Diplomatic Security Service; St. Paul Police Department; Anoka County, Minnesota, Sheriff’s Office; and Cook County, Minnesota, Sheriff’s Office, with the support of the International Organized Crime Intelligence and Operations Center.
Assistant U.S. Attorneys Melinda Williams and Laura Provinzino of the District of Minnesota are prosecuting the case with the assistance of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Seventeen Indicted for Their Roles in Trafficking Hundreds of Thai Sex Slaves in the United StatesRead the Press Release
SAINT PAUL – An indictment unsealed late yesterday in Saint Paul, Minn., charges seventeen members of an international sex trafficking organization with transporting hundreds of female Thai sex slaves from Thailand and trafficking them throughout the United States.
The charged defendants include 12 Thai Nationals and five U.S. Nationals. Eleven of the seventeen charged defendants were arrested yesterday at various locations in Minnesota, California, Illinois, Georgia, and Hawaii. One charged defendant was previously arrested in Belgium. Four defendants remain at large.
The announcement was made by Attorney General Loretta E. Lynch; U.S. Attorney Andrew M. Luger of the District of Minnesota; Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; Special Agent in Charge Alex Khu of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) St. Paul Division and Special Agent in Charge Shea Jones of the Internal Revenue Service (IRS) Criminal Investigation Division’s St. Paul Field Office.
“Human trafficking is a degrading crime that undermines our nation's most basic promises of liberty and security,” said Attorney General Lynch. “This case demonstrates the Justice Department’s determination to hold traffickers accountable and to help the survivors of this appalling practice reclaim their freedom and dignity. As part of our nationally recognized Anti-Trafficking Coordination Team Initiative, the District of Minnesota is playing a crucial role in those vital efforts, and I want to commend all of the team members whose cooperation led to today’s action.”
“The 17 people charged in this indictment ran a highly sophisticated sex trafficking scheme,” said U.S. Attorney Luger. “They promised women in Thailand a chance at the American dream, but instead exploited them, coerced them and forced them to live a nightmare. In short, the victims lived like modern day sex slaves. Today’s indictment is our ninth sex trafficking case since 2014, but it is the first that targets an entire organization. We will continue to work closely with our federal and local law enforcement partners to target and dismantle these types of far-reaching organizations.”
“The Justice Department created the Anti-Trafficking Coordination Team (ACTeam) Initiative to bring together federal law enforcement agencies to enhance our impact in investigating and prosecuting human trafficking,” said Principal Deputy Assistant Attorney General Gupta. “This case is an outstanding example of these efforts. We will continue to work tirelessly with them to bring traffickers to justice and vindicate the rights of vulnerable victims.”
“This week’s arrests reflect HSI’s global reach and on-going efforts to dismantle criminal organizations that engage in human trafficking activities,” said Special Agent in Charge Alex Khu, of HSI St. Paul. “HSI also remains firmly committed to rescuing victims and getting them help they desperately need to begin recovering from the depredations forced on them by these criminals.”
“As this operation clearly shows, human trafficking—in this case the trafficking of vulnerable Thai women for sex—knows no boundaries,” said Sgt. Sean Johnson, an investigator with the Saint Paul Police Department Human Trafficking Unit. “We’re proud to be part of a community in which agencies work together to send a clear message to anyone who would traffic or purchase women for sex: Your actions will not be tolerated here, and we will hold you accountable for your actions.”
“From coast to coast, IRS Criminal Investigation is determined to team with our law enforcement partners to track down the individuals who facilitate and launder the proceeds of sex trafficking crimes,” said Shea Jones, Special Agent in Charge of the St. Paul Field Office. “Those who seek to enrich themselves by exploiting the desperate circumstances of their victims will not be tolerated in our cities.”
According to the indictment, which was returned under seal on September 28, 2016, since at least 2009, the criminal organization has trafficked at least hundreds of women, which the organization refers to as “flowers,” from Bangkok, Thailand, to various cities across the United States, including Minneapolis, Los Angeles, Chicago, Atlanta, Phoenix, Washington, D.C., Las Vegas, Houston, Dallas, and Austin, among others. Once in the United States, victims are placed in houses of prostitution where they are forced to work long hours – often all day, every day – having sex with strangers. The victims are not allowed to leave the prostitution houses unless accompanied by a member of the criminal organization.
According to the indictment, victims are often from impoverished backgrounds and speak little English. Recruiters exploit these vulnerabilities during the recruitment process. Victims are promised access to a better life in the United States, in exchange for an exorbitant “bondage debt” of between $40,000 and $60,000. Before being transported to the United States, the organization would typically arrange to have professional-quality escort-style photographs taken of the victims, which would ultimately be sent to traffickers in the United States and used to advertise the victims for sex on websites like backpage.com and eros.com. The organization also encouraged victims to have breast implants in Thailand to make the victims “more appealing” to potential sex buyers in the United States. The cost of the cosmetic surgery was added to the victims’ bondage debt.
According to the indictment, the organization engaged in widespread visa fraud to facilitate the international transportation of the victims. Members of the criminal organization assisted the victims in obtaining fraudulent visas and travel documents. As a part of obtaining visa documents, members of the criminal conspiracy gathered personal information from the victims, including the location of the victims’ families in Thailand. This information was later used to threaten victims who became non-compliant or tried to flee the organization in the United States.
According to the indictment, SUMALEE INTARATHONG, a/k/a
“Joy,” served as a boss/trafficker before her arrest in Belgium on August 5, 2016. Each trafficked victim was “owned” by INTARATHONG or another boss/trafficker, until the victim could repay the bondage debt. The trafficker arranged for victims to travel from Thailand to the United States and placed the victims in a house of prostitution somewhere in the United States.According to the indictment, other members of the criminal organization served as “house bosses,” who owned one or more of the houses of prostitution to which the flowers were trafficked. House bosses were responsible for day-to-day operations of the houses of prostitution they controlled, which included advertising the “flowers” for commercial sex, maintaining the houses of prostitution, scheduling sex buyers, and ensuring that a significant portion of the money earned by the victims was routed back to the trafficker/boss to pay down the bondage debt. The house boss kept the remainder of the money earned by the victim. The victim was not allowed to keep any money, except for the occasional tip offered by a sex buyer.
According to the indictment, other members of the criminal organization serve as “facilitators.” These individuals were primarily responsible for laundering the criminal proceeds of the organization and for directing the movement of victims within the United States.
According to the indictment, others among the co-conspirators served as “runners.” The runners were typically men who were paid, in part, in sex with the victims. Runners accompanied the victims anytime they were permitted to leave a house of prostitution. Victims were allowed to obtain personal items, to travel at the direction of the criminal organization, or to deposit money into bank accounts set-up by the organization for the victims to repay their bondage debt. Runners were also sometimes asked to rent hotel rooms, apartments or other facilities for the organization.
This case is the result of an investigation conducted by Homeland Security Investigations, Criminal Investigation Division of the IRS, Diplomatic Security Service, St. Paul Police Department, Anoka County Sheriff’s Office and Cook County Sheriff’s Office, with the support of the International Organized Crime Intelligence and Operations Center (IOC-2).
The District of Minnesota is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Assistant U.S. Attorneys Melinda Williams and Laura Provinzino are prosecuting the case with the assistance of the DOJ Civil Rights Division’s Human Trafficking Prosecution Unit.
Defendant Information:
Boss/Trafficker
SUMALEE INTARATHONG, a/k/a “Joy,” 55
Liege, Belgium (Incarcerated)
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Sex trafficking by use of force, fraud, and coercion, 1 count
- Conspiracy to commit forced labor, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
- Conspiracy to commit visa fraud, 1 count
House Bosses
CHABAPRAI BOONLUEA, 42
Winder, Ga.
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Sex trafficking by use of force, fraud, and coercion, 1 count
- Conspiracy to commit forced labor, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
WATCHARIN LUAMSEEJUN, 46
Unknown
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit forced labor, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
PANTILLA RODPHOLKA, 31
Mount Prospect, Ill.
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit forced labor, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
Facilitators
NOPPAWAN LERSLURCHACHAI, 35
Lomita, Calif.
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Sex trafficking by use of force, fraud, and coercion, 1 count
- Conspiracy to commit forced labor, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
KHANONG INTHARATHONG, 44
Dunwoody, Ga.
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
ANDREW FLANIGAN, 51
Winder, Ga.
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
PATCHARAPORN SAENGKHAM, 41
Los Angeles, Calif.
Charges:
- Conspiracy to commit visa fraud, 1 count
SUPAPON SONPRASIT, 31
St. Paul, Minn.
Charges:
- Conspiracy to commit visa fraud, 1 count
Runners
THI VU, 48
Atlanta, Ga.
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
TODD VASSEY, 54
Lahanina, Hawaii
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
JOHN ZBRACKI, 59
Lakeville, Minn.
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Sentencings for October 3 - October 5, 2016Read the Press Release
Jesse Wade Penfield, 27, of Newcastle, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 5, 2016, for possession with intent to distribute methamphetamine. Penfield was arrested in Newcastle, Wyoming. He received 41 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100 special assessment and a $250.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Charles Michael Carsten, 28, of Pittsburg, California, was sentenced by Federal District Court Judge Alan B. Johnson on October 4, 2016, for being a felon in possession of a firearm. Carsten was arrested in Wellington, Colorado. He received 24 months of imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Dakota Stanley, 24, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 3, 2016, for uttering counterfeit currency. Stanley was arrested in Casper, Wyoming. He received 18 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. Restitution will be determined at a later date. This case was investigated by the U.S. Secret Service.
Second former lab manager pleads guilty to tampering with water samplesRead the Press Release
BECKLEY, W.Va. – A former lab manager from Raleigh County who falsified data pleaded guilty today to a violation of the Clean Water Act, announced United States Attorney Carol Casto. John Brewer, 62, of Beaver, is the second former employee of Appalachian Laboratories to be prosecuted for a federal crime involving the Clean Water Act.
Appalachian Laboratories performed water sampling and analysis for coal mining operations to ensure that the discharges of pollutants into public waterways were within the limits of permits issued by the West Virginia Department of Environmental Protection. From at least 2008 through the summer of 2013, law enforcement found evidence of irregularities in the sampling. Brewer admitted that he knew and approved of employees falsifying the date that water samples were taken, as well as falsifying dates himself. Brewer further admitted that Appalachian Laboratories employees would falsify the date a sample was taken in order to avoid collecting samples that they believed to be in violation of permit limits. Instead, the employees would wait until they believed the water was within permit limits and then take a sample. They then backdated the samples to make it appear as though the samples had been collected in the previous month as required. Brewer additionally admitted that he caused this falsified data to be submitted in a report to the West Virginia Department of Environmental Protection.
Brewer faces up to two years in federal prison and a fine of $250,000 when he is sentenced on January 18, 2017. John Shelton, another former lab manager at Appalachian Laboratories, previously pleaded guilty to conspiring to violate the Clean Water Act. Shelton was sentenced in February 2015 to a year and nine months in federal prison.
The investigation was conducted jointly by the FBI and the Environmental Protection Agency’s Criminal Investigation Division. Assistant United States Attorney Eric Bacaj and Special Assistant United States Attorney Perry McDaniel are in charge of the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
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Roswell Woman Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Brandy Lynn Matthewson, 38, of Roswell, N.M., pled guilty yesterday in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Matthewson and her co-defendant Gilbert Nick Montes, 36, also of Roswell were arrested on May 24, 2016, on a criminal complaint charging them with conspiracy and possession of methamphetamine with intent to distribute in March 2016, in Chaves County, N.M. According to the complaint, in March 2016, Matthewson was distributing methamphetamine on behalf of Montes, following Montes’ arrest on other methamphetamine trafficking charges.
During yesterday’s proceedings, Matthewson pled guilty to a felony information charging her with conspiracy to possess methamphetamine with intent to distribute, and admitted that she participated in a conspiracy to distribute methamphetamine in Chaves County between Nov. 2015 and March 2016, in Chaves County. At sentencing, Matthewson faces a statutory maximum penalty of 20 years in prison. A sentencing hearing has yet to be scheduled.
Montes was previously arrested in a separate case in Nov. 2015, and was indicted on March 8, 2016, on methamphetamine trafficking offenses. On Sept. 16, 2016, he pled guilty to that indictment and admitted receiving four pounds of methamphetamine, which he intended to distribute to others. At sentencing, which has yet to be scheduled, Montes faces a statutory minimum penalty of ten years and a maximum of life in federal prison.
While in custody on the aforementioned case, Montes was charged, together with Mathewson, with methamphetamine charges in this case. Montes has entered a not guilty plea to the charges in this case and remains in custody pending trial. Charges in criminal complaints are merely accusations, and criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Roswell office of the FBI and the Chaves County Metro Narcotics Task Force. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Raytown Man Sentenced to 15 Years for Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Raytown, Mo., man who formerly worked at a karate studio in Lee’s Summit, Mo., was sentenced in federal court today for distributing and receiving child pornography over the Internet.
Jered Scott Faulkner, 37, of Raytown, was sentenced by U.S. Chief District Judge Greg Kays to 15 years in federal prison without parole.
On May 25, 2016, Faulkner pleaded guilty to one count of distributing child pornography over the Internet and one count of receiving child pornography over the Internet.
An FBI Child Exploitation Task Force officer identified Faulkner’s computer as sharing videos of child pornography during an investigation into a peer-to-peer file-sharing network in September and October 2014. The undercover agent, on multiple occasions, downloaded numerous video files from Faulkner’s computer that contained child pornography. According to court documents, a recurring theme in the images was the graphic depiction of the rape and sodomy of pubescent and prepubescent girls, some as young as babies, by adult men. Some of the files also depicted child bondage.
According to court documents, the same officer was conducting a separate investigation and located a second and distinct IP address sharing images and videos of child pornography between November 2014 and December 2014. Though not known to the officer at that time, this IP address was also later determined to be Faulkner’s.
Law enforcement officers executed a search warrant at Faulkner’s residence on Jan. 15, 2015. Officers seized Faulkner’s laptop computer and hard drive. A forensic analysis confirmed the presence of at least 300 videos and 2,552 images of child pornography.
Also discovered by the forensic analyst were two images of an approximately 7-year-old female that had been taken by a cell phone in July 2014 and downloaded onto Faulkner’s computer. Investigators learned that the child victim was a prior student at a local martial arts studio where Faulkner was employed at the time of the investigation.
Faulkner also admitted that his mother, whom law enforcement officers had initially contacted, alerted him about the investigation before officers arrived at his residence to execute the search warrant. When officers arrived, Faulkner was in the process of reformatting his laptop computer. Despite the attempt to reformat the computer, however, the forensic examiner was able to successfully recover the contents of the computer.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Prior Sex Offender from Ohio Sentenced to 15 Years for Federal Child Pornography Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Michael Glover, 37, of Canton, Ohio, was sentenced today to 180 months in prison followed by a lifetime of supervised release for his conviction on federal child pornography charges in federal court in Albuquerque, N.M. Glover will also be required to register as a sex offender after he completes his prison sentence.
Glover was arrested in April 2015, in Ohio on an indictment alleging child pornography charges that was filed in Albuquerque. Thereafter, Glover was transported to the U.S. District Court for the District of New Mexico in Albuquerque to face the charges against him.
The six-count indictment charged Glover, a former Albuquerque resident, with three counts of distribution of visual depictions of minors engaged in sexually explicit conduct and three counts of possession of visual depictions of minors engaged in sexually explicit conduct. The three distribution counts alleged that Glover distributed child pornography in Bernalillo County, N.M., on May 27, 2013, Aug. 11, 2013, and Aug. 12, 2013. The three possession counts alleged that Glover possessed child pornography in Bernalillo County during three periods in 2013. The indictment included forfeiture provisions seeking forfeiture of Glover’s laptop computer and computer media.
On March 28, 2016, Glover entered guilty pleas to Counts 4 through 6 of the indictment charging him with distribution and possession of child pornography. In entering his guilty plea, Glover admitted to possessing child pornography between May 23, 2013 and Aug. 19, 2013, on three devices (a computer, a Kindle and a flash drive).
This case was investigated by the Albuquerque office of Homeland Security Investigations, the New Mexico Office of the Attorney General, the Bernalillo County Sheriff’s Office and the New Mexico Internet Crimes Against Children (ICAC) Task Force. Assistant U.S. Attorney Shammara H. Henderson prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Glover, who has a prior sexual assault conviction and a conviction for violating the Sexual Offender Registration and Notification Act, was also being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Police and Prosecutors Join Students for a Day of LearningRead the Press Release
BLAST (Building Lasting Relationships Between Police and Community) Program Brings Law Enforcement and Youth Together
TALLAHASSEE, FLORIDA – In recognition of National Community Policing Week (October 2-8, 2016), the United States Attorney’s Office for the Northern District of Florida, together with the Florida Department of Juvenile Justice and Twin Oaks Juvenile Development, Inc., will present a BLAST Program event on Friday to 40 youth from the Juvenile Unit for Special Treatment, located in Wilma, Florida.
The BLAST Program offers students an opportunity to meet representatives of the criminal justice community and ask them questions, share their perceptions of law enforcement, and interact with officers in a familiar setting. Officers also provide students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations.
Event: BLAST Program
Location: Veterans Memorial Civic Center
10405 NW Theo Jacobs Way
Bristol, FL 32321
Date: Friday, October 7, 2016
Press: A media availability will take place at 1:45 p.m. The youth discussion sessions are closed to the media and the public, and videography and photography of students is not permitted.The schedule will include the following discussion sessions, during which students will have a chance to participate in role play with law enforcement officers: • Crime and Justice Overview: Students will learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing.
• Domestic Violence: Students will participate in a scenario in which police respond to an injured victim. Discussion topics will include de-escalation in a stressful environment, rights of witnesses and suspects, and the benefits of providing information to the police.
• Traffic Stop Simulation: Students will take turns playing the roles of civilians and officers in a traffic stop scenario in which some participants are compliant and some are argumentative. Discussion topics include vehicle searches based on probable cause and the dangers faced by officers during a traffic stop.
• Use of Force: Facilitators and students will discuss when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation.Participating agencies include: • United States Attorney’s Office, Northern District of Florida
• Federal Bureau of Investigation
• Liberty County Sheriff’s Office
• Bureau of Alcohol, Tobacco, Firearms and Explosives
• Calhoun County Sheriff’s Office
• Drug Enforcement AdministrationThe United States Attorney’s Office is expanding the BLAST program across the district, building on a successful event in Pensacola last month.
About National Community Policing Week:
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.
In support of community policing efforts around the country, the United States Department of Justice will lead nearly 400 events, and President Obama will designate 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.
• 21st Century Policing Task Force report
• Attorney General’s Community Policing Op-EdThe United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Owner of Tax Preparation Franchises in Illinois, Kansas and Missouri Convicted of Tax EvasionRead the Press Release
Underreported More Than $1.5 Million in Gross Receipts
A federal jury sitting in St. Louis, Missouri, found the local owner of a tax return preparation businesses guilty of two counts of tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
“While Semere Tsehaye was operating tax return preparation franchises in three states, he was generating false financial summaries and filing fraudulent returns to evade paying his own taxes,” said Principal Deputy Assistant Attorney General Ciraolo. “No one is above the law, and the department will continue to prosecute those who seek to violate our nation’s tax laws.”
According to the evidence at trial, Semere Tsehaye, 39, was the owner and operator of at least 20 Instant Tax Service (ITS) franchise locations operating in and around East St. Louis, Illinois; Kansas City, Kansas; and Kansas City and St. Louis, Missouri, from 2005 to 2011. ITS was a brand name of ITS Financial LLC, a nationwide tax preparation business headquartered in Dayton, Ohio. Tsehaye owned and operated his ITS franchise locations using two entities named A&S Tax Service LLC (A&S) and ERI Enterprises LLC (ERI).
The evidence at trial showed that during the years 2010 and 2011, Tsehaye generated fraudulent financial summaries that understated the gross receipts generated by A&S and ERI and provided them to his tax return preparer. The evidence also showed Tsehaye’s tax return preparer used these financial summaries to prepare Tsehaye’s individual income tax returns, which Tsehaye then filed with the Internal Revenue Service (IRS). These tax returns were false in that they underreported A&S and ERI’s gross receipts by a total of approximately $547,000 in 2010 and $1.03 million in 2011, causing a tax loss of more than $580,000.
“Mr. Tsehaye’s attempt to evade his taxes by creating false financial summaries to conceal over $1.5 million of income and by filing false tax returns is a theft from the American public,” said Special Agent in Charge Karl Stiften of IRS-Criminal Investigation. “We all pay when others swindle the government.”
In 2013, a Kansas City, Kansas federal court permanently barred A&S from further operating or preparing federal tax returns. Tsehaye was also permanently enjoined from engaging in certain abusive practices as well as preparing tax returns for any person other than himself beyond a 50 mile radius from his permanent residence.
Sentencing is scheduled for Jan. 4, 2017. Tsehaye faces a statutory maximum sentence of five years in prison for each count of tax evasion, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of Missouri for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owner of Tax Preparation Franchises in Illinois, Kansas and Missouri Convicted of Tax EvasionRead the Press Release
WASHINGTON – A federal jury sitting in St. Louis, Missouri, found the local owner of tax return preparation businesses guilty of two counts of tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
"While Semere Tsehaye was operating tax return preparation franchises in three states, he was generating false financial summaries and filing fraudulent returns to evade paying his own taxes," said Principal Deputy Assistant Attorney General Ciraolo. "No one is above the law, and the department will continue to prosecute those who seek to violate our nation’s tax laws."
According to the evidence at trial, Semere Tsehaye, was the owner and operator of at least 20 Instant Tax Service (ITS) franchise locations operating in and around East Saint Louis, Illinois; Kansas City, Kansas; and Kansas City and St. Louis, Missouri, from 2005 to 2011. ITS was a brand name of ITS Financial LLC, a nationwide tax preparation business headquartered in Dayton, Ohio. Tsehaye owned and operated his ITS franchise locations using two entities named A&S Tax Service LLC (A&S) and ERI Enterprises LLC (ERI).
The evidence at trial showed that during the years 2010 and 2011, Tsehaye generated fraudulent financial summaries that understated the gross receipts generated by A&S and ERI and provided them to his tax return preparer. The evidence also showed Tsehaye’s tax return preparer used these financial summaries to prepare Tsehaye’s individual income tax returns, which Tsehaye then filed with the Internal Revenue Service (IRS). These tax returns were false in that they underreported A&S and ERI’s gross receipts by a total of approximately $547,000 in 2010 and $1.03 million in 2011, causing a tax loss of more than $580,000.
"Mr. Tsehaye’s attempt to evade his taxes by creating false financial summaries to conceal over $1.5 million of income and by filing false tax returns is a theft from the American public," said Special Agent in Charge Karl Stiften of IRS-Criminal Investigation. "We all pay when others swindle the government."
In 2013, a Kansas City, Kansas, federal court permanently enjoined Tsehaye and A&S from further operating a tax preparation business or preparing federal tax returns.
Sentencing is scheduled for January 4, 2017. Tsehaye faces a statutory maximum sentence of five years in prison for each count of tax evasion, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of Missouri for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Orleans County Sentenced for Distributing MethyloneRead 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 Allen M. Young, 40, of Barker, NY, who was convicted of possession with intent to distribute methylone, was sentenced to 200 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that between October 21, 2011, and December 13, 2012, the defendant conspired with Peter Viera to obtain methylone from China, which Young then distributed. On December 13, 2012, while members of the Orleans County Major Felony Crime Task Force were attempting to execute a search warrant on Young and his car, he fled at a high rate of speed before crashing the car in Ridgeway, NY. Young fled the scene on foot. Nine rounds of .50 caliber ammunition were found in the car. As he fled, the defendant discarded a backpack near the scene of the crash which contained 1.8 pounds of methylone and just over one pound of marijuana.
Young was subsequently arrested in Erie, Pennsylvania on February 14, 2013. On April 5, 2013, officers executed a search warrant at his residence and seized seven firearms belonging to the defendant.
Peter Viera was also convicted and sentenced to 70 months in prison.
The sentencing is the result of an investigation on the part of the Orleans County Major Felony Crime Task Force, under the direction of District Attorney Joseph V. Cardone and Sheriff Randall Bower, and the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division.Oregon Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
HELENA – Joseph Lee Eldabaa, 46, of Albany Oregon was sentenced today to 120 months in prison and 60 months’ supervised release for possession with intent to distribute methamphetamine. U.S. District Court Judge Charles C. Lovell issued the sentence.
Eldabaa was charged by superseding information on June 6, 2016 and pleaded guilty to the single count on June 15, 2016. In documents filed with the court, Assistant U.S. Attorney Paulette Stewart stated that, if required to prove its case at trial, the government was prepared to introduce evidence that Eldabaa and various co-defendants transported between three and twelve pounds of methamphetamine from Arizona to Montana with the intent that it be distributed in the Helena area.
Eldabaa was arrested on February 20, 2015 in Helena. Following his arrest, law enforcement officers obtained a search warrant for the truck he was driving at the time of the arrest. Officers found approximately three ounces of methamphetamine in the truck. Eldabaa told law enforcement that he had also brought eight ounces of methamphetamine into Montana on a prior trip.
The court concurred with the government’s argument that Eldabaa’s sentence should be enhanced because Eldabaa had weapons with him in the truck. In addition to the Methamphetamine, law enforcement found a loaded .40 caliber handgun with nine rounds in the magazine, brass knuckles, a small folding knife, and marijuana and cash.
The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Federal Bureau of Investigation, the Montana Division of Criminal Investigation, and the Missouri River Drug Task Force.
Oak Lawn Real Estate Executive Arrested for Trying to Hire a Hit Man to Murder Attorney Who Filed Cases Against HimRead the Press Release
CHICAGO — An Oak Lawn real estate executive was charged today with trying to hire a hit man to murder an attorney who was involved in litigation against him.
LYLE ANASTOS, 35, of Oak Lawn, was arrested yesterday afternoon. He is charged with using interstate commerce in the commission of murder for hire, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Anastos was ordered to remain in federal custody after an initial appearance today before U.S. Magistrate Judge Jeffrey T. Gilbert. Judge Gilbert scheduled a detention hearing for Oct. 7, 2016, at 2:00 p.m.
According to the complaint, Anastos sought the murder of an attorney who represented the husband of Anastos’ maternal grandmother in cases filed against Anastos. In June the attorney helped secure legal judgments of more than $900,000 for the grandmother’s husband against Anastos and his real estate company, Skyline 1, Inc., as well as against the company’s secretary and a related entity, S12 LLC, where Anastos served as manager. In a secretly recorded conversation last week, Anastos is heard talking to an acquaintance and agreeing to pay up to $10,000 to a hit man to murder the attorney, the complaint states. Anastos is heard on the recording referring to the attorney as “the catalyst to get out of the picture,” according to the complaint.
The complaint and arrest were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation. Substantial assistance was provided by the Cook County Sheriff’s Office.
According to the complaint, the acquaintance last month informed the FBI that Anastos had requested assistance in locating an individual to murder the attorney. At the direction of law enforcement, the acquaintance subsequently engaged in multiple recorded conversations with Anastos.
In a conversation yesterday, Anastos guaranteed to convey title to a $5,000 dump trailer to the hit man as collateral, with the understanding that Anastos would pay cash to the hit man after the murder and then get back the trailer, the complaint states. Anastos is heard confirming the murder for hire, and he requested to see photographs after it was carried out, according to the complaint. Law enforcement arrested Anastos after this conversation, the complaint states.
No one was injured as part of the alleged scheme.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge in the complaint carries a maximum sentence of ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Stephen Chahn Lee.
ComplaintNorth Carolina Man Sentenced to Prison in Fraudulent U.S. Treasury Check SchemeRead the Press Release
A Smithfield, North Carolina man was sentenced today to 20 months in prison for conspiring to defraud the government and commit theft of public money, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to documents filed with the court and court proceedings, Oscar Barahona Fiallos owned and operated a tax preparation business in Smithfield under the names El Caracol Inc. and Oscar’s Income Tax Service. In 2011 and 2012, Fiallos cashed large numbers of U.S. Treasury checks issued as a result of fraudulent tax returns filed with the Internal Revenue Service (IRS) in the names of third parties. The checks were provided to Fiallos by co-conspirators and Fiallos never met the third-party payees, who purportedly lived in New York, New Jersey and North Carolina. Fiallos deposited the checks into his bank account and then provided co-conspirators with cash equal to the value of the check, minus a check cashing fee. After a bank account was closed, Fiallos obtained a check cashing license so that he could continue cashing checks for his co-conspirators. He also prepared Individual Taxpayer Identification Number applications and false tax returns for third parties he did not meet and who did not sign the documents. Fiallos agreed that the intended loss to the IRS was more than $2.8 million.
Fiallos pleaded guilty on Feb. 18 to one count of a conspiring to defraud the United States and commit theft of public money. In addition to his prison sentence, Fiallos was ordered to serve three years of supervised release and pay restitution to the IRS in the amount of $2.8 million.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorneys Lauren M. Castaldi and Nathan P. Brooks of the Tax Division, who are prosecuting this case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of North Carolina for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.