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Tuesday 9 August 2016
Norwich Resident Admits Role in Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANDY DUGUE, also known as “Jimmy,” 39, of Norwich, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of wire fraud stemming from his involvement in an insurance fraud scheme.
According to court documents and statements made in court, between April 2011 and February 2014, DUGUE and others conspired to stage approximately 50 car crashes in eastern Connecticut for the purpose of defrauding automobile insurance companies and enriching themselves. A high percentage of these planned crashes were single-vehicle accidents on remote roads where there were no witnesses other than the occupants of the crashed vehicle. After each staged accident, the defendants filed fraudulent property damage and bodily injury claims with various automobile insurance companies. They then collected payouts on the fraudulent claims from the victim insurance companies. These payouts typically ranged from about $10,000 to about $30,000 per accident.
In pleading guilty, DUGUE admitted his personal involvement in a staged automobile crash in Killingly on December 14, 2013.
DUGUE were arrested on May 20 and is released on bond. He is a citizen of Haiti and a lawful permanent resident of the U.S.
Judge Meyer scheduled sentencing for November 1, 2016, at which time DUGUE faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Federal Bureau of Investigation, the Norwich Police Department and the National Insurance Crime Bureau, with the assistance of the Mohegan Tribal Police Department. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Northampton Man Sentenced for Cocaine ConspiracyRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, Senior United States District Judge Malcolm J. Howard, sentenced ANTHONY TYRONE MOODY, 45, of Seaboard, North Carolina, to 84 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine. MOODY previously pled guilty to this charge on August 10, 2015.
On September 10, 2014, the Greenville Regional Drug Task Force and North Carolina State Bureau of Investigation arrested MOODY when MOODY was delivering 8 ounces of cocaine to a cooperating witness. The investigation revealed that MOODY was responsible for distributing 45 kilograms of cocaine since the early 2000’s.
The investigation of this case was conducted by the Greenville Regional Drug Task Force and the North Carolina State Bureau of Investigation. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Minnesota Man Sentenced to Federal Prison for MethamphetaminesRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on August 9, 2016, Kee Thao, of Minneapolis, Minn., was sentenced before US District Judge Ralph R. Erickson to serve 20 years in federal prison for Possession with Intent to Distribute a Controlled Substance. Following his incarceration, Judge Erickson ordered that Thao serve 30 years of supervised release due to his violent criminal history involving women and pay a $100 special assessment to the Crime Victims’ Fund.
This case came to the attention of law enforcement officers after a woman who accompanied Thao from the Minneapolis area to Fargo sought the assistance of law enforcement. During the investigation of this domestic dispute, the Fargo Police Department searched Thao’s vehicle, which contained approximately 10 ounces of methamphetamine.
This case was investigated by the Department of Homeland Security - Homeland Security Investigations and the Fargo Police Department.
Assistant US Attorney Jennifer Puhl prosecuted the case.
Mexican Man Sentenced After Pleading Guilty to Illegally Re-Entering the United States After Previous DeportationsRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Ricardo Silva-Hernandez, of Mexico, was sentenced to a time-served sentence after pleading guilty, on April 20, 2016, to illegally re-entering the United States after having been previously deported.
Silva-Hernandez was arrested by the Hooksett Police Department on February 24, 2016, after the police responded to a burglar alarm at Silva-Hernandez’s place of employment. When an officer asked Silva-Hernandez for identification, he produced a Mexican identification card.
Further questioning by the police led to Silva-Hernandez’s admission that he was illegally in the United States and had re-entered the United States after being deported.
The Hooksett Police sought the assistance of officers from Immigration and Customs Enforcement – Enforcement and Removal (ICE-ERO) in positively identifying Silva-Hernandez. Fingerprints taken from Silva-Hernandez were compared to fingerprints on file with the Department of Homeland Security and the Federal Bureau of Investigation. That comparison definitively proved that Silva-Hernandez had been previously deported in 1997 and again in 2009.
Silva-Hernandez will now be deported.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and the Hooksett Police Department. Assistant U.S. Attorney Alfred Rubega prosecuted this case.
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Member of Cherry Hill Group Sentenced to 24 Years in Prison for Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Elijah Sykes-Bey, a/k/a LaLa, age 22, of Baltimore, today to 24 years in prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, from at least 2007 to 2013, the UDH organization operated in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” or “Down da Hill,” (DDH), and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the DDH section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.
In addition to selling drugs, UDH members have also committed murders, attempted murders, assaults, carjackings, and robberies. Beginning in 2004, UDH members committed six murders of rival gang members and/or drug dealers, and shot nine other individuals. In addition, the members of UDH committed street and bank robberies in order to fund their narcotics activities.
Sykes-Bey admitted that as a member of UDH he was part of a racketeering enterprise and protected the gang’s power, territory and profits through the use of violence, threats of violence, intimidation, robbery, and narcotics trafficking. Sykes-Bey also admitted that he participated in the murders of two rival gang members.
Sykes-Bey also knew that UDH members sold narcotics throughout the neighborhood. During his involvement in the conspiracy, it was foreseeable to Sykes-Bey that UDH was responsible for the distribution of at least one kilogram of heroin, five kilograms of cocaine, 280 grams of crack cocaine, and marijuana.
A total of 35 Cherry Hill gang members have pleaded guilty and 27 of those defendants, including Elijah Sykes-Bey, have been sentenced.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Member of United States Army Sentenced to 10 Month Sentence for Theft and Sale of Military-Issued Night Vision TechnologyRead the Press Release
Earlier today in federal court in Brooklyn, Johnathan Serrano, a member of the United States Army, was sentenced to a 10 month sentence (6 months’ imprisonment and 4 months’ home confinement), ordered to forfeit $10,200 in criminal proceeds to the government, and ordered to pay $67,000 in restitution to the United States Army following his conviction after a guilty plea on April 26, 2016 to one felony count of conspiracy to steal and sell government property, in violation of Title 18, United States Code, Section 371. Today’s sentencing proceeding was held before Judge I. Leo Glasser.
The conviction stems from Serrano’s leadership in a scheme to steal and sell night-vision devices and components stolen from the United States Army. Night vision technology allows images to be produced and seen in near-total darkness conditions and is a vital tool for the military. Night vision devices acquired by the United States military, such as the items stolen and sold by the defendant, contain components made to military specifications and are required by the military to be rendered useless for their intended purpose prior to leaving government control. The United States military’s policies prohibit the private sale of fully-functional military-issued night vision equipment.
The defendant is an active-duty member of the United State Army, who was stationed at Fort Bliss base in El Paso Texas and assigned to perform repairs of radio technology. Between April 2014 and May 2015, Serrano used his access to the repair facilities at the military base to steal numerous components for night vision devices. To conceal his role in the conspiracy, Serrano had his cousin, co-conspirator Alan Serrano, and another individual, sell the devices over the internet via the eBay website and email communications with prospective buyers.[1] The investigation revealed that the conspirators sold or attempted to sell over $10,000 worth of night vision equipment, including to a purchaser in Brooklyn, New York. Additionally, five night vision devices and 50 boxes with serial numbers matching night vision components were recovered from the conspirators’ residences. In total, Serrano and his co-conspirators stole over $120,000 worth of equipment from the United States Army.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Craig Rupert, Special Agent-in-Charge, Department of Defense, Defense Criminal Investigative Services (DCIS), New York; Angel M. Melendez, Special Agent-in-Charge, Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office.
The government’s case is being prosecuted by Assistant United States Attorney Craig R. Heeren.
The Defendants:
JOHNATHAN SERRANO
El Paso, Texas
Age: 31ALAN SERRANO
El Paso, Texas
Age: 25
[1] On March 4, 2016, Alan Serrano pled guilty to unlawful sale of government property. His sentencing is scheduled for tomorrow before Judge Glasser.
McLaughlin Man Charged with Aggravated Sexual Abuse and Sexual Abuse of a Person Incapable of ConsentRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse and Sexual Abuse of a Person Incapable of Consent.
Brian Thunder Shield, age 18, was indicted on July 19, 2016. He appeared before U.S. Magistrate Judge William D. Gerdes on August 4, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $750,000 fine, up to life of supervised release, and $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 20, 2015, and December 10, 2015, Thunder Shield knowingly engaged in and attempted to engage in sexual acts with two female relatives, one of them a minor. Thunder Shield knew one of his victims was incapable of appraising the nature of the conduct, and was physically incapable of declining participation in and communicating her unwillingness to the sexual act.
The charges are merely accusations and Thunder Shield is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Standing Rock Sioux Tribe. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Thunder Shield was released on bond pending trial. A trial date has not been set.
Massachusetts Man Sentenced on Fentanyl ChargeRead the Press Release
CONCORD, N.H. – Genfry Martinez, 20, of Lawrence, Massachusetts, was sentenced in United States District Court for the District of New Hampshire to 37 months in federal prison after pleading guilty to one count of possession with intent to distribute the Schedule II controlled substance fentanyl, announced United States Attorney Emily Gray Rice.
On February 11, 2016, after a traffic stop by the New Hampshire State Police, Martinez was found in possession of what lab results confirmed to be 68.67 grams of the Schedule II controlled drug fentanyl. The defendant possessed the drugs with the intention of distributing them.
“The narcotic drug fentanyl is an incredibly dangerous substance responsible for a large number of overdose deaths in New Hampshire,” stated United States Attorney Emily Gray Rice. “I will continue to prioritize the prosecution of individuals who attempt to profit from the sale of this deadly drug.”
United States District Judge Paul J. Barbadoro sentenced Martinez. In addition to the term of incarceration, Judge Barbadoro ordered Martinez to serve, upon his release from prison, a term of supervised release of three years.
The case was investigated by the New Hampshire State Police and the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Georgiana L. Konesky.
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Man Who Conspired to Traffic Ice Methamphetamine into SW Virginia Pleads GuiltyRead the Press Release
ABINGDON, VIRGINIA – A man who conspired with others to traffic methamphetamine into Southwest Virginia pled guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Randy Doss, 51, a.k.a. “Monk” pled guilty yesterday in District Court to one count of conspiring to possess with the intent to distribute ice methamphetamine.
“We continue to see a distributing trend upward in the amount of methamphetamine being brought into Virginia. This is a trend we in the law enforcement community are working every day to put an end to,” United States Attorney Fishwick said today. “This more pure form of ‘ice’ methamphetamine is particularly addictive and dangerous and has the ability to destroy the lives of those who become addicted. We will continue to take this threat seriously, both in our enforcement efforts and support for prevention and treatment programs.”
At yesterday’s hearing, Special Assistant United States Attorney Kevin Jayne stated that Doss, and others, sold “ice” methamphetamine to members of the Warren-drug trafficking organization (“DTO”), who were also prosecuted in the Western District of Virginia. “Ice” is a particularly pure form of methamphetamine, also often referred to as “crystal” methamphetamine. Members of the Warren-DTO traveled from the Western District of Virginia to the Chattanooga, Tennessee-area to purchase methamphetamine from Doss and others. In turn, these members of the Warren-DTO would further distribute the methamphetamine to others in the Western District of Virginia.
The investigation of the case was conducted by the Washington County Sheriff’s Office, Russell County Sheriff’s Office, Tazewell County Sheriff’s Office, Smyth County Sheriff’s Office, Abingdon Police Department, Virginia State Police, U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Drug Enforcement Administration. Special Assistant United States Attorney Kevin Jayne is prosecuting the case for the United States.
Lake Worth Resident Convicted of Distributing Fentanyl Resulting in DeathRead the Press Release
A Palm Beach County resident was convicted yesterday by a jury in United States District Court of unlawfully distributing a controlled substance, Fentanyl, which resulted in the death of a 23 year old man.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division, Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), and Bryan Kummerlen, Chief, West Palm Beach Police Department (WPBPD), made the announcement.
"This case illustrates that there can be grave consequences that result from the distribution of illegal narcotics,” stated U.S. Attorney Wifredo Ferrer. “We implore the South Florida community to be aware of the dangers of illicit drugs, particularly given the fact that the number of drug overdoses has increased dramatically in our jurisdiction over the past year. The U.S. Attorney’s Office and our law enforcement partners will continue to aggressively prosecute individuals who engage in drug trafficking, especially in cases where the illicit distribution results in the death or serious bodily injury of the user."
“Fentanyl is a deadly drug that kills instantly,” said DEA Special Agent in Charge Adolphus Wright. “DEA, along with our law enforcement partners, will continue to aggressively investigate to take such deadly drugs off the streets of our communities. Massena’s conviction is an example of that effort and commitment to the fullest degree. Let it be clear, drug dealers selling illegal drugs mixed with Fentanyl will not be tolerated in any way.”
Christopher Sharod Massena, 24, of Palm Beach County, was convicted at trial of a single count of distribution of fentanyl, resulting in death. For this charge of conviction, Massena faces a statutory mandatory minimum sentence of 20 years’ imprisonment up to a maximum term of life imprisonment, to be followed by a mandatory minimum term of 3 years of supervised release. Previously, on August 1, 2016, Massena pled guilty to the other charges in the superseding indictment, specifically four counts of distributing a controlled substance containing heroin and a single count of possessing with the intent to distribute a controlled substance containing heroin. Massena faces a statutory sentence of up to 20 years in prison, to be followed by a mandatory minimum term of three years of supervised release, for each count to which he pled guilty.
According to the court record, including evidence introduced at trial, on February 18, 2016, Massena distributed Fentanyl, a Schedule II controlled substance, to a 23 year old man. The man died of acute Fentanyl toxicity shortly after ingesting the controlled substance. Thereafter, on four separate dates Massena distributed other controlled substance (heroin and heroin mixed with Fetanyl) to an undercover police officer. On the date of his arrest, Massena possessed with the intent to distribute heroin.
Mr. Ferrer commended the investigative efforts of the DEA, PBSO, WPBPD, and the Palm Beach Narcotics Task Force for their assistance in this matter. This case is being prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
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.
Justice Department, EPA and the State of New Mexico Announce Settlement for $143 Million Cleanup at the Chevron Questa MineRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA) and the state of New Mexico today announced a settlement with Chevron Mining Inc. (CMI) requiring $143 million in cleanup work at the Chevron Questa Mine Superfund site near Questa, New Mexico. As part of the settlement, the company will perform a pilot project to cover about 275 acres of the tailing facility where mine waste or “tailings” are stored, operate a water treatment plant and install groundwater extraction systems. CMI will also pay over $5.2 million to reimburse EPA’s past costs for overseeing cleanup work at the site.
“This settlement will advance substantial cleanup work at the Questa site, and require actions to prevent future contamination of the Red River,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division. “This settlement is the product of excellent cooperation between the state and federal governments and CMI to continue the vital cleanup work at the Chevron Questa Mine Site.”
“This settlement builds on the consent decree entered into in September of last year and represents another affirmative step towards remedying the serious environmental damages suffered by this beautiful area of New Mexico as a result of decades of extensive mining activities,” said U.S. Attorney Damon P. Martinez of the District of New Mexico. “In addition to requiring crucial cleanup work, the settlement includes important measures to prevent further contamination of the environment and provides for extensive monitoring to ensure compliance.”
“Protecting precious water resources is essential to the health of New Mexico’s communities and the state’s economy,” said EPA Regional Administrator Ron Curry. “While mining pollution is a complex issue, EPA and our partners are pleased to see the next phase of the cleanup at the Questa site take shape.”
“This $143 million cleanup is a powerful example of regulatory protections that work,” said Acting Secretary Butch Tongate for the New Mexico Environment Department. “In addition to the $112 million already collected for environmental work during this administration, the State of New Mexico is pleased with the enforcement of regulations that hold Chevron Mining accountable for the environmental impacts caused by the now-closed Questa Mine which will foster a renewed Questa/Red River destination area.”
The proposed partial consent decree, if approved by the court, will provide for the next phase of the cleanup at the former mine site. It is the largest settlement of its kind for cleanup work in EPA Region 6. CMI has already completed a number of response projects at the site under previous agreements with EPA, including the cleanup of Eagle Rock Lake and the removal of numerous tailing spills. The new work will improve efforts to permanently prevent contamination from the site from affecting the Red River and other water resources and further reduce risks for nearby communities and the surrounding environment. This includes covering and revegetating about 275 acres of the tailings facility, improving and installing new systems that prevent contaminated water from reaching the Red River and operating and maintaining a water treatment plant. The settling parties will also monitor the remedy’s long-term effectiveness at reducing risks to human health and the environment.
The proposed settlement announced today follows on a September 2015 consent decree entered into by the United States, on behalf of the U.S. Fish and Wildlife Service of the Department of the Interior and the Forest Service of the Department of Agriculture, and the State, on behalf of the New Mexico State Office of Natural Resource Trustee, resolving claims for natural resource damages at the Site. Under that consent decree, CMI paid more than $4.2 million for restoring, replacing or acquiring natural resources damaged by mine activities. The current consent decree addresses separate claims from the natural resource damages consent decree.
The Chevron Questa Mine, previously known as the Molycorp Mine, operated intermittently from 1919 until 2014, when CMI permanently closed the mine. Mining operations and waste disposal contaminated soil, sediment, surface water and groundwater. While the mine was operating, approximately 328 million tons of acid-generating waste rock were excavated and deposited in nine large waste rock piles. After molybdenum was extracted from ore, the tailing was transported by pipeline to a tailing facility where it was deposited in tailing impoundments.
The cleanup is being accomplished under the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as Superfund. The Superfund law protects human health and the environment while safeguarding taxpayer dollars by holding parties that contributed to contamination responsible for cleaning it up. Since 1980, EPA’s Superfund program has managed the cleanup of the nation’s most hazardous waste sites and has responded to environmental emergencies, oil spills and natural disasters.
The public has the opportunity to submit written comments on the consent decree, which is subject to the 30-day comment period and final approval by the court. A copy of the consent decree is available at www.justice.gov/enrd/consent-decrees.
Justice Department, EPA and the State of New Mexico Announce Settlement for $143 Million Cleanup at the Chevron Questa MineRead the Press Release
ALBUQUERQUE – The Department of Justice, the U.S. Environmental Protection Agency (EPA) and the state of New Mexico today announced a settlement with Chevron Mining Inc. (CMI) requiring $143 million in cleanup work at the Chevron Questa Mine Superfund site near Questa, New Mexico. As part of the settlement, the company will perform a pilot project to cover about 275 acres of the tailing facility where mine waste or “tailings” are stored, operate a water treatment plant and install groundwater extraction systems. CMI will also pay over $5.2 million to reimburse EPA’s past costs for overseeing cleanup work at the site.
“This settlement will advance substantial cleanup work at the Questa site, and require actions to prevent future contamination of the Red River,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division. “This settlement is the product of excellent cooperation between the state and federal governments and CMI to continue the vital cleanup work at the Chevron Questa Mine Site.”
“This settlement builds on the consent decree entered into in September of last year and represents another affirmative step towards remedying the serious environmental damages suffered by this beautiful area of New Mexico as a result of decades of extensive mining activities,” said U.S. Attorney Damon P. Martinez of the District of New Mexico. “In addition to requiring crucial cleanup work, the settlement includes important measures to prevent further contamination of the environment and provides for extensive monitoring to ensure compliance.”
“Protecting precious water resources is essential to the health of New Mexico’s communities and the state’s economy,” said EPA Regional Administrator Ron Curry. “While mining pollution is a complex issue, EPA and our partners are pleased to see the next phase of the cleanup at the Questa site take shape.”
“This $143 million cleanup is a powerful example of regulatory protections that work,” said Acting Secretary Butch Tongate for the New Mexico Environment Department. “In addition to the $112 million already collected for environmental work during this administration, the State of New Mexico is pleased with the enforcement of regulations that hold Chevron Mining accountable for the environmental impacts caused by the now-closed Questa Mine which will foster a renewed Questa/Red River destination area.”
The proposed partial consent decree, if approved by the court, will provide for the next phase of the cleanup at the former mine site. It is the largest settlement of its kind for cleanup work in EPA Region 6. CMI has already completed a number of response projects at the site under previous agreements with EPA, including the cleanup of Eagle Rock Lake and the removal of numerous tailing spills. The new work will improve efforts to permanently prevent contamination from the site from affecting the Red River and other water resources and further reduce risks for nearby communities and the surrounding environment. This includes covering and revegetating about 275 acres of the tailings facility, improving and installing new systems that prevent contaminated water from reaching the Red River and operating and maintaining a water treatment plant. The settling parties will also monitor the remedy’s long-term effectiveness at reducing risks to human health and the environment.
The proposed settlement announced today follows on a September 2015 consent decree entered into by the United States, on behalf of the U.S. Fish and Wildlife Service of the Department of the Interior and the Forest Service of the Department of Agriculture, and the State, on behalf of the New Mexico State Office of Natural Resource Trustee, resolving claims for natural resource damages at the Site. Under that consent decree, CMI paid more than $4.2 million for restoring, replacing or acquiring natural resources damaged by mine activities. The current consent decree addresses separate claims from the natural resource damages consent decree.
The Chevron Questa Mine, previously known as the Molycorp Mine, operated intermittently from 1919 until 2014, when CMI permanently closed the mine. Mining operations and waste disposal contaminated soil, sediment, surface water and groundwater. While the mine was operating, approximately 328 million tons of acid-generating waste rock were excavated and deposited in nine large waste rock piles. After molybdenum was extracted from ore, the tailing was transported by pipeline to a tailing facility where it was deposited in tailing impoundments.
The cleanup is being accomplished under the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as Superfund. The Superfund law protects human health and the environment while safeguarding taxpayer dollars by holding parties that contributed to contamination responsible for cleaning it up. Since 1980, EPA’s Superfund program has managed the cleanup of the nation’s most hazardous waste sites and has responded to environmental emergencies, oil spills and natural disasters.
The public has the opportunity to submit written comments on the consent decree, which is subject to the 30-day comment period and final approval by the court. A copy of the consent decree is available at https://www.justice.gov/enrd/consent-decree/us-v-chevron-mining-inc.
Justice Department Settles Immigration-Related Discrimination Claim Against Hartz Mountain Industries Inc.Read the Press Release
The Justice Department reached an agreement today with Hartz Mountain Industries Inc. (Hartz) to resolve the department’s investigation into whether the company discriminated against work-authorized non-U.S. citizen job seekers, in violation of the Immigration and Nationality Act (INA). Hartz is a real estate development and management company based in Secaucus, New Jersey.
The department’s investigation found that Hartz discriminated based on citizenship status by publishing a job posting that required applicants for a particular job opening to be U.S. citizens, in violation of the INA. Job postings with citizenship preferences or requirements violate the INA by restricting employment opportunities available to work-authorized non-citizens. While there are exceptions in the INA that allow for specific positions to be subject to citizenship requirements, the position available at Hartz did not meet the criteria.
Under the settlement agreement, Hartz will pay $1,400 in civil penalties to the United States, train its human resources staff on the anti-discrimination provision of the INA, review its policies and be subject to monitoring by the department for a three-year period.
“The Civil Rights Division is committed to identifying and tearing down discriminatory barriers that prevent work-authorized individuals from taking advantage of employment opportunities,” said Principal Deputy Assistant Attorney General Vanity Gupta, head of the Civil Rights Division. “I commend Hartz for its cooperation during the investigation and for working to resolve this matter expeditiously.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation; and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status or national origin; or discrimination based on their citizenship status, immigration status or national origin in hiring, firing or recruitment or referral, should contact the worker hotline above for assistance.
Hartz Mountain Industries Settlement Agreement
Independence Man Sentenced to 15 Years for Illegally Possessing Stolen RiflesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for illegally possessing several stolen firearms.
Randall T. James, 45, of Independence, was sentenced by U.S. District Judge Dean Whipple to 15 years in federal prison without parole. James was sentenced as an armed career criminal due to his prior felony convictions.
On March 14, 2016, James pleaded guilty to being a felon in possession of firearms. James admitted he was in possession of a Marlin .22-caliber rifle, a Browning 7mm rifle, a Marlin .30-30-caliber rifle and a J.C. Higgins .270-caliber rifle on April 5, 2012.
This investigation began on April 5, 2012, when an Independence resident reported that someone had broken into his house and stolen several firearms. The back door had been kicked in and there were several firearms wrapped in a blanket on the floor, as if someone had intended to steal these also but then fled the scene.
On June 25, 2012, law enforcement investigators received a tip that some of the stolen firearms were at the home of James’s sister. Officers executed a search warrant at the residence and seized four of the rifles that had been stolen. James’s sister and nephew confirmed that the rifles had been purchased from James.
James was identified by several neighbors of the burglary victim, and one of the latent prints collected from the crime scene was confirmed to match James’s palm print.
Law enforcement investigators learned that on May 29, 2012, James had pawned another rifle that had been stolen during the burglary (uncharged, due to it being an antique).
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. James has two prior felony convictions for the sale of a controlled substance and prior felony convictions for assault, armed criminal action, carrying a concealed weapon, possession of a controlled substance and resisting arrest.
This case was prosecuted by Special Assistant U.S. Attorney Joseph W. Vanover. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Idaho Falls Man Sentenced to More than Ten Years in PrisonRead the Press Release
POCATELLO – Benito Mora Jr., 38, of Idaho Falls, Idaho, was sentenced today to 121 months in prison for conspiracy to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Mora to serve four years of supervised release following his release from prison. Mora pleaded guilty to the charge on May 24, 2016.
Blackfoot Police arrested Mora on January 10, 2016, during a traffic stop. Mora had 291.91 grams of pure methamphetamine, 6.20 grams of cocaine, and two handguns in his possession at the time of his arrest. Mora was also under investigation in Idaho Falls after he sold 11.18 grams of methamphetamine to a confidential informant in 2015. Mora admitted to conspiring with others to acquire methamphetamine from suppliers in Arizona, Mexico, and elsewhere for the purpose of selling it in eastern Idaho.
The case was investigated by the Idaho Falls and Blackfoot Police Departments, the Bonneville and Bingham County Sheriffs’ Offices, the Idaho State Police, the Bingham and Bonneville County Prosecutors’ offices, the Bureau of Alcohol, Tobacco and Firearms, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Eastern Idaho Partnership and the State of Idaho to bolster ongoing efforts to prosecute regional drug trafficking, gun and gang violence, internet based crimes against children, and other serious crimes with a federal nexus. The Eastern Idaho Partnership is a collaboration of elected officials and law enforcement from 12 counties and 18 cities across eastern Idaho, in partnership with the Idaho Department of Correction and the U.S. Attorney’s Office.
Hudsonville Resident Sentenced to Four Years in Prison for Investment Fraud SchemeRead the Press Release
Steven J. Hayes Ordered To Pay His Victims $822,961.23 In Restitution
GRAND RAPIDS, MICHIGAN —Steven Jack Hayes, 60, of Hudsonville, Michigan, was sentenced today to 48 months in federal prison after being convicted of two felonies in connection with an investment fraud scheme he perpetrated between 2001 and 2015. U.S. District Judge Robert Holmes Bell imposed the sentence and ordered Hayes remanded to the custody of the U.S. Marshal to start his sentence. Upon release from prison, Hayes will be supervised by the U.S. Probation office for a period of three years.
Hayes operated a tax return and investment consulting business under the name "Hayes Financial Consulting, Business and Personal Financial Consulting." Hayes admitted that he falsely represented to clients that he would invest their money in retirement accounts and other investments, including at Fidelity Investments. In total, nearly 20 individuals in West Michigan invested their money with Hayes. Hayes also pled guilty to filing a false 2011 federal tax return that allegedly underreported his income that year by at least $158,000. In addition to the $822,961.23 restitution order for the victims of his fraud, Hayes was ordered to pay the U.S. Treasury $90,806 in restitution pertaining to his false tax return conviction.
U.S. Attorney Miles stated, "For 14 years, Hayes took advantage of the trust placed in him by his friends, neighbors, and acquaintances. The victims entrusted Hayes with over $1 million of their money—in some cases, their entire retirement accounts—believing his story of a successful and reasonable investing strategy. He lulled his victims to invest more money, including some of their annual tax refunds, by creating fake account statements to make it appear as though their investments were earning interest. In truth, Hayes never invested a dollar and lived on his victims’ retirement accounts and other assets since 2001. This sentence should send a clear message: If you engage in a scheme to defraud others of their hard-earned money, and avoid paying your taxes in the process, you will be held to account for your crime."
"Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money as well as skirt their tax obligations," said Manny Muriel, IRS Criminal Investigation, Special Agent in Charge, Detroit Field Office. "Mr. Hayes’s actions not only caused negative ramifications to those financially connected to him, but also the honest taxpayer when he committed significant tax fraud violations. Today’s sentencing demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain."
Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation investigated this matter with valuable assistance from the Ottawa County Sheriff’s Department. Assistant U.S. Attorney Christopher O’Connor prosecuted the case.
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Hitachi Automotive Systems Agrees to Plead Guilty to Involvement in Anti-Competitive Auto Parts ConspiracyRead the Press Release
Company Pleads Guilty to Fixing Price of Auto Parts for Second Time
Hitachi Automotive Systems Ltd. has agreed to plead guilty and to pay a criminal fine of at least $55.48 million for its role in a conspiracy to allocate markets, fix prices and rig bids for shock absorbers installed in automobiles sold to U.S. consumers, the Justice Department announced today.
According to charges filed in the U.S. District Court of the Southern District of Ohio today, from the mid-1990s until summer 2011 Tokyo-based Hitachi Automotive Systems agreed to allocate the supply of shock absorbers sold to targeted vehicle manufacturers. To keep prices up, Hitachi Automotive Systems and its co-conspirators also agreed to coordinate on price adjustments requested by the vehicle manufacturers and strived to keep their conduct secret by using code names and meeting in remote locations.
In 2013, Hitachi pleaded guilty and paid a $195 million fine for fixing the price of starters, alternators and other electrical automotive components. At that time, Hitachi received credit for substantially assisting the division’s investigation. But in the course of providing that assistance Hitachi failed to uncover that it had also conspired to fix the price of shock absorbers. As a result, the division will recommend a substantial increase in Hitachi’s criminal fine from the bottom of the Guidelines fine range and also recommend that the court place Hitachi on probation for three years. These recommendations are consistent with the division’s approach in cases where a company fails to uncover the entire scope of its illegal conduct at the time it enters into a plea agreement.
“Hitachi Automotive Systems thwarted the competitive process when it fixed the price of shock absorbers,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “Compounding its error, when it pled guilty in 2013 Hitachi failed to clean house and uncover its participation in the shock absorbers conspiracy. The division will continue to take a hard line when companies fail to uncover additional anticompetitive behavior.”
“When companies conspire to fix prices, consumers are the victims,” said Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division. “Working with the Department of Justice and our other partners, the FBI will continue to pursue those that illegally scheme to suppress and eliminate competition.”
Hitachi Automotive Systems has agreed to cooperate with the division’s ongoing investigation. The plea agreement is subject to court approval.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Including Hitachi Automotive Systems, 45 companies and 64 executives have been charged in the division’s ongoing investigation and have agreed to pay a total of more than $2.8 billion in criminal fines.
Hitachi Automotive Systems is being prosecuted by the Antitrust Division’s Chicago Office and the FBI’s Cincinnati Field Office, with assistance from the U.S. Attorney’s Office of the Southern District of Ohio. Anyone with information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI’s Cincinnati Field Office at 513-421-4310.
Hitachi Information
Franklin, Tennessee Man Sentenced to 48 Months in Prison for Romney Tax Return Fraud and Extortion SchemeRead the Press Release
Michael Mancil Brown, 37, of Franklin, Tenn., was sentenced late yesterday to 48 months in prison for engaging in an extortion and wire fraud scheme involving former presidential candidate Mitt Romney’s tax returns, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Special Agent in Charge Todd Hudson of the U.S. Secret Service’s Nashville Field Office.
Brown was found guilty at trial on May 12, 2016, of six counts of wire fraud and six counts of using facilities of interstate commerce to commit extortion. U.S. District Judge Billy Roy Wilson of the Eastern District of Arkansas, sitting by designation in the Middle District of Tennessee, imposed the sentence and also ordered Brown to pay $201,836 in restitution to PricewaterhouseCoopers LLP.
According to testimony at trial, evidence recovered from a computer seized from Brown’s residence in 2012 implicated Brown in a scheme to defraud Romney, the accounting firm of PricewaterhouseCoopers and others, by falsely claiming that he had gained access to the PricewaterhouseCoopers internal computer network and had stolen tax documents for Romney and his wife, Ann D. Romney, for tax years prior to 2010.
In August 2012, a letter delivered to the offices of PricewaterhouseCoopers in Franklin demanded that $1 million worth of the digital currency Bitcoin be deposited to a specific Bitcoin account to prevent the release of the purportedly stolen Romney tax returns, according to trial evidence. The letter invited interested parties who wanted the allegedly stolen Romney tax documents to be released to contribute $1 million to another Bitcoin account. As part of the scheme, similar letters were delivered to the offices of the Democratic and Republican parties in Franklin and similar statements were posted to Pastebin.com.
The U.S. Secret Service’s Nashville Field Office investigated the case with assistance from the FBI’s Nashville office. Assistant U.S. Attorney Byron Jones of the Middle District of Tennessee and Senior Counsel Anthony V. Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Four Nuestra Familia Gang Members Convicted in California for Their Roles in Racketeering Conspiracy, Murder and Related OffensesRead the Press Release
After an approximately three-month trial, four Nuestra Familia gang members have been convicted for their roles in a wide-ranging racketeering conspiracy that involved several murders, drug trafficking and firearms offenses, among other related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Brian Stretch of the Northern District of California and Special Agent in Charge John Bennett of the FBI’s San Francisco Division made the announcement.
Henry Cervantes, 52, aka Happy, of Lodi, California; Alberto Larez, 48, aka Bird, of Salinas, California; Jaime Cervantes, 33, aka Hennessy, of San Mateo, California; and Andrew Cervantes, 60, aka Mad Dog, of Stockton, California, were each convicted today of racketeering conspiracy and other offenses. In addition, Larez was convicted of murder in aid of racketeering, use of a firearm in furtherance of a crime of violence and use of a firearm in furtherance of a crime of violence causing death; Jaime Cervantes and Larez were convicted of conspiracy to commit murder in aid of racketeering and conspiracy to commit assault with a dangerous weapon in aid of racketeering; Jaime Cervantes was convicted of two counts of assault with a dangerous weapon in aid of racketeering, conspiracy to commit a robbery affecting interstate commerce, robbery affecting interstate commerce and possession of a firearm in furtherance of a crime of violence; Henry Cervantes and Jaime Cervantes were convicted of use of fire to commit a felony, conspiracy to obstruct justice and obstruction of justice; and Henry and Andrew Cervantes and Larez were convicted of conspiracy to distribute controlled substances.
According to evidence presented at trial, Nuestra Familia is a prison gang that originally formed in the California state prison system in the 1960s. Nuestra Familia leaders control and direct the gang’s criminal activities both inside and outside of the prison system.
According to evidence presented at trial, the defendants were members or associates of the federal branch of the Nuestra Familia, which was controlled by two principal overseers incarcerated in the Federal Bureau of Prisons (BOP), one of whom was Andrew Cervantes while he was serving a 210-month sentence for a 1999 racketeering conviction. Larez and Henry Cervantes were senior gang members who reported to Andrew Cervantes. In 2010, Henry Cervantes and Larez were released from the BOP after serving sentences for racketeering conspiracy convictions in 2004 involving the distribution of controlled substances on behalf of Nuestra Familia. Larez recruited individuals, including Jaime Cervantes, to commit crimes on behalf of the gang and Henry Cervantes supervised the criminal activities of the gang in Oakland, California.
From approximately fall 2010 through March 2013, under the supervision of Henry Cervantes and Larez, members and associates of Nuestra Familia engaged in the trafficking of methamphetamine, cocaine and heroin and committed robberies to raise money for themselves and the gang. At the direction of Andrew Cervantes, Larez instructed his subordinates to send proceeds from their criminal activities by Western Union to the commissary accounts of gang leaders incarcerated in several BOP facilities, including the account of Andrew Cervantes. Larez communicated with Andrew Cervantes primarily through prison phone calls and correspondence using coded language.
Between May and August 2011, Larez and Jaime Cervantes robbed and assaulted a woman making a bank deposit of proceeds from a gas station, then robbed the same woman at gunpoint at the gas station, and stabbed a suspected rival gang member. All of these crimes were planned and orchestrated by Larez, whose wife worked at the same gas station.
In September 2011, Henry Cervantes stabbed two victims to death at an apartment in Oakland and ordered Jaime Cervantes and another gang member to burn the bodies at the apartment to cover up evidence, which they proceeded to do.
In January 2012, Jaime Cervantes and two other members committed a home invasion robbery of a drug dealer. During the robbery, Jaime Cervantes beat one victim over the head with a baseball bat and another victim was shot.
In August 2012, Larez and two other gang members traveled to San Jose, California, and lured another gang member suspected of cooperating with law enforcement to a “meeting,” where he was shot to death while sitting in his vehicle.
In late 2012, while incarcerated at U.S. Penitentiary (USP) Lewisburg in Pennsylvania, Andrew Cervantes ordered via coded letters the murder of an inmate at USP McCreary in Kentucky. In March 2013, the inmate – whom Andrew Cervantes believed had violated gang rules – was assaulted and stabbed by two Nuestra Familia inmates in the prison dining facility and survived.
Eight co-defendants previously pleaded guilty to racketeering conspiracy and other offenses in connection with this case.
The FBI Oakland Resident Agency investigated the case with the U.S. Attorney’s Office of the Northern District of California, with assistance from the BOP. The Santa Clara County, California, District Attorney’s Office; Oakland Police Department; San Jose Police Department; Red Bluff, California, Police Department; Livermore, California, Police Department; Alameda County, California, Sheriff’s Office; Tehama County, California, District Attorney’s Office; and Tehama County Sheriff’s Office also assisted in the investigation.
Trial Attorney Robert S. Tully of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William Frentzen and Joseph M. Alioto of the Northern District of California are prosecuting the case with assistance from Kevin Costello, Courtney Fisher, Melissa Dorton, Daniel Charlier-Smith, Lance Libatique and Lauren Hipolito
Four Nuestra Familia Gang Members Convicted for Their Roles in Racketeering Conspiracy and Related OffensesRead the Press Release
OAKLAND— After an approximately three-month trial, four Nuestra Familia gang members have been convicted for their roles in a wide-ranging racketeering conspiracy that involved several murders, drug trafficking, and firearms offenses, among other related offenses. The announcement was made by U.S. Attorney Brian J. Stretch, U.S. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
Henry Cervantes, 52, aka Happy, of Lodi; Alberto Larez, 48, aka Bird, of Salinas; Jaime Cervantes, 33, aka Hennessy, of San Mateo; and Andrew Cervantes, 60, aka Mad Dog, of Stockton, were each convicted today of racketeering conspiracy and other offenses. In addition, Larez was convicted of murder in aid of racketeering, use of a firearm in furtherance of a crime of violence, and use of a firearm in furtherance of a crime of violence causing death; Jaime Cervantes and Larez were convicted of conspiracy to commit murder in aid of racketeering and conspiracy to commit assault with a dangerous weapon in aid of racketeering; Jaime Cervantes was convicted of two counts of assault with a dangerous weapon in aid of racketeering, conspiracy to commit a robbery affecting interstate commerce, robbery affecting interstate commerce, and possession of a firearm in furtherance of a crime of violence; Henry Cervantes and Jaime Cervantes were convicted of use of fire to commit a felony, conspiracy to obstruct justice, and obstruction of justice; and Henry and Andrew Cervantes and Larez were convicted of conspiracy to distribute controlled substances.
According to evidence presented at trial, Nuestra Familia is a prison gang that originally formed in the California state prison system in the 1960s. Nuestra Familia leaders control and direct the gang’s criminal activities both inside and outside of the prison system.
The evidence also demonstrated that defendants were members or associates of the federal branch of the Nuestra Familia, which was controlled by two principal overseers incarcerated in the Federal Bureau of Prisons (BOP), one of whom was Andrew Cervantes while he was serving a 210-month sentence in federal prison. The evidence demonstrated that Andrew Cervantes was the national "overseer" of the gang; i.e., the top member who was not in a supermax prison. Larez and Henry Cervantes were senior gang members who reported to Andrew Cervantes. In 2010, Henry Cervantes and Larez were released from the BOP. Larez recruited individuals, including Jaime Cervantes, to commit crimes on behalf of the gang and Henry Cervantes supervised the criminal activities of the gang in Oakland.
From approximately fall 2010 through March 2013, under the supervision of Henry Cervantes and Larez, members and associates of Nuestra Familia engaged in the trafficking of methamphetamine, cocaine, and heroin and committed robberies to raise money for themselves and the gang. At the direction of Andrew Cervantes, Larez instructed his subordinates to send proceeds from their criminal activities by Western Union to the commissary accounts of gang leaders incarcerated in several BOP facilities, including the account of Andrew Cervantes. Larez communicated with Andrew Cervantes primarily through prison phone calls and correspondence using coded language.
Between May and August 2011, Larez and Jaime Cervantes robbed and assaulted a woman making a bank deposit of proceeds from a gas station, then robbed the same woman at gunpoint at the gas station, and stabbed a suspected rival gang member. All of these crimes were planned and orchestrated by Larez, whose wife worked at the same gas station.
In September 2011, Henry Cervantes ordered Jaime Cervantes and another gang member to burn the bodies of two stabbing victims. The bodies were in an apartment in Oakland and Henry Cervantes ordered the bodies burned to cover up evidence that the victims had been killed. Jaime Cervantes and the other gang member complied with Henry Cervantes’ instructions.
In January 2012, Jaime Cervantes and two other members committed a home invasion robbery of a drug dealer. During the robbery, Jaime Cervantes beat one victim over the head with a baseball bat and another victim was shot.
In August 2012, Larez and two other gang members traveled to San Jose, and lured another gang member suspected of cooperating with law enforcement to a “meeting,” where he was shot to death while sitting in his vehicle.
In late 2012, while incarcerated at U.S. Penitentiary (USP) Lewisburg in Pennsylvania, Andrew Cervantes ordered via coded letters the murder of an inmate at USP McCreary in Kentucky. In March 2013, the inmate – whom Andrew Cervantes believed had violated gang rules – was assaulted and stabbed by two Nuestra Familia inmates in the prison dining facility and survived.
Eight co-defendants previously pleaded guilty to racketeering conspiracy and other offenses in connection with this case.
The case was investigated by the FBI and the U.S. Attorney’s Office of the Northern District of California, with assistance from the BOP. Additional assistance was provided by the Santa Clara County District Attorney’s Office; the Campbell Police Department; the Oakland Police Department; the San Jose Police Department; the Red Bluff Police Department; the Livermore Police Department; the Alameda County Sheriff’s Office; the Tehama County District Attorney’s Office; and the Tehama County Sheriff’s Office.
Assistant U.S. Attorneys William Frentzen and Joseph M. Alioto and trial Attorney Robert S. Tully of the Criminal Division’s Organized Crime and Gang Section are are prosecuting the case with assistance from Kevin Costello, Courtney Fisher, Melissa Dorton, Daniel Charlier-Smith, Lance Libatique, and Lauren Hipolito
Fort Defiance Man Sentenced to 63 Months for Violent AssaultRead the Press Release
PHOENIX – Today, Ryan Haskie, 29, of Fort Defiance, Ariz., was sentenced by U.S. District Judge Paul G. Rosenblatt to a total of 63 months of imprisonment, to be followed by three years of supervised release. Haskie had previously pleaded guilty to assault resulting in serious bodily injury and admitted to violating his terms of supervised release in a previous case.
In October 2015, Haskie, a member of the Navajo Nation, violently assaulted an elderly man, also a member of the Navajo Nation, in the Fort Defiance community.
The investigation in this case was conducted by the Navajo Nation Department of Public Safety. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-15-8243-PCT-PGR-1 and CR-12-8178-PGR-2
RELEASE NUMBER: 2016-063_Haskie
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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.
Former St. John Husband and Wife Each Sentenced to 36 Months’ ImprisonmentRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David A. Capp, announced that Barbara Gasich, 54, and George Gasich, 55, formerly of St. John, Indiana and now residing in Lakewood Ranch, Florida, were sentenced in Hammond Federal Court before Chief Judge Philip Simon for making false claims with the federal government.
Barbara Gasich was sentenced to 36 months’ imprisonment and fined $50,000.
George Gasich was sentenced to 36 months’ imprisonment and fined $50,000.
According to court filings, the Gasichs’ had a 20-year dispute with the IRS which included filing false tax returns and numerous false documents seeking large refunds. At the sentencing hearing, an IRS agent testified that the Gasichs had earned more than $ 3 million since 2000, but had only voluntarily paid $7,458 in federal income tax. The Gasichs owe more than $1.28 million dollars in outstanding tax, interest and penalties.
This case was investigated by the United States Internal Revenue Service, Criminal Investigation Division. This case was handled by Assistant United States Attorneys Gary Bell and Nathaniel Whalen.
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Former Guam Customs Officer Defendant Jayvin Wyll Ueda Remoket Sentenced to 14 Years Incarceration Concurrent to Five Years IncarcerationRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI),announced that on August 8, 2016, Defendant JAYVIN WYLL UEDA REMOKET was sentenced by the Honorable Frances Tydingco-Gatewood, Chief Judge, District Court of Guam. Defendant was sentenced to serve 14 years incarceration, to run concurrent to five years incarceration, followed by three years of supervised release.
Defendant REMOKET pled guilty on May 15, 2014 to Conspiracy to Distribute Methamphetamine, in violation of Title 21 U.S.C. Sections 846(a)(1) and (b)(1)(C) and to Giving Notice of a Search Warrant, in violation of 18 U.S.C. Section 2232(c). Defendant REMOKET was a Guam Customs and Quarantine Officer assigned to the Contraband Enforcement Team at the time of the offenses. He conspired with co-defendants Amos Ueda and Frederick Obak to receive and distribute a package containing 984.3 grams of methamphetamine hydrochloride at a business establishment in Guam, namely Staywell Insurance in Hagatna, Guam. The contents of the package were to be broken down for later distribution on Guam. The methamphetamine hydrochloride was concealed within a U.S. Priority Mail package and sent from Washington State to Guam where it was intercepted by the U.S. Postal Inspector. The Drug Enforcement Administration Forensic Laboratory determined that the methamphetamine had a high purity level of 82.2%. The street value of 984.3 grams of methamphetamine hydrochloride exceeds $492,150.00.
The investigation was conducted by the Guam U.S. Postal Inspector and Drug Enforcement Administration Special Agents as well as Task Force Officers who determined that REMOKET, using his position of authority, attempted to protect the conspiracy by giving notice to his co-defendants of the interception of the package.
U.S. Attorney Limtiaco stated, "The defendant, at the time of the crimes, was a Guam Customs and Quarantine Officer assigned to the Contraband Enforcement Team. He abused and violated the public's trust by using and exploiting his official position to commit the crimes and gain information to impede the investigation in this case. It is not uncommon for methamphetamine hydrochloride possession and distribution to be associated with violent and other criminal activity. The drug has destructive and devastating effects on individuals, families and our community. The U.S. Attorney’s Office is committed to the aggressive prosecution of those offenders who traffic drugs and abuse their positions of authority to commit criminal activity."
This conviction resulted from the concerted efforts of law enforcement partners in an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF is a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
The investigating agencies include the Drug Enforcement Administration (DEA), U.S. Department of Homeland Security/U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI), U.S. Postal Inspection Service (USPIS), and the Guam Police Department (GPD). The case was prosecuted by Assistant U.S. Attorney Rosetta San Nicolas.
Former Canadian Moneygram and Western Union Agent Pleads Guilty to Fraud and Money Laundering Conspiracy ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Western Union and MoneyGram agent pleaded guilty yesterday to charges he participated in an international mass marketing consumer fraud scheme.
According to United States Attorney Peter Smith, Alex Mgbolu, age 45 of Toronto, Canada, pleaded guilty today before Chief U.S. District Court Judge Christopher C. Conner in Harrisburg to conspiracy to commit mail fraud, wire fraud and money laundering.
According to the Indictment by a Middle District of Pennsylvania grand jury in September 2012, Mgbolu conspired with Chima Nneji, William Nneji, and other unnamed individuals between July 2002 and May 2010 to commit the crimes. Mgbolu was extradited to the United States from Canada.
Mgbolui was the owner/operator of a Western Union agency called FA CAM Associates (FA CAM) and a MoneyGram agency also known as FA CAM. Both agencies were located in Toronto, Canada. Between July 2002 and May 2010 international mass marketing fraudsters allegedly instructed hundreds of consumer fraud victims across the United States to send Western Union and MoneyGram money transfers to Canada where the transfers were paid out by Mgbolu at FA CAM. Mgbolu concealed the fraudsters’ identity by entering false names and identification data into the Western Union and MoneyGram computer data bases. Analysts from the Toronto Police and U.S. Postal Inspection Service have determined that over 90% of the payee addresses and identification numbers entered at FA CAM were invalid. For his role in the scheme Mgbolu retained a portion of the money transfers before sending the balance of the proceeds on to the fraudsters.
After Western Union terminated FA CAM and MoneyGram restricted FA CAM’s ability to pay out money transfers, money transfer checks from other fraud-complicit MoneyGram Western Union agents in the greater Toronto area were deposited into FA CAM’s bank account. The deposit of fraudulently induced funds into what appears to be a legitimate business bank account and the subsequent reissuance of the proceeds via checks and wire transfers helps to launder the proceeds and conceal the identity of the fraudsters is known as “check pooling.”
Overall, between July 2002 and May 2010, FA CAM and the 13 complicit Western Union and MoneyGram agents paid out 907 money transfers totaling $2,127,410 that were reported by the Senders as being fraud induced.
Codefendant Chima Nneji pleaded guilty to the same conspiracy charge before Judge Conner on July 21, 2016. No date has been scheduled as yet for Mgbolu’s or Nneji’s sentencing.
Codefendant William Nneji remains a fugitive from justice.
The case is part of a long term continuing investigation by the Harrisburg Office of the United States Postal Inspection Service, assisted by the Toronto Police and is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
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Former CEO of Canadian Hazardous Waste Treatment Company Sentenced to Serve 63 Months in Prison for Role in Kickback and Fraud Schemes Against the United StatesRead the Press Release
The former chief executive at Bennett Environmental Inc., a Canada-based company that treats and disposes of contaminated soil, was sentenced today to serve 63 months in prison in connection with the payment of kickbacks to obtain subcontracts at a New Jersey Superfund site overseen by the U.S. Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers, the Department of Justice announced today.
John Bennett, of Vancouver, British Columbia, was also sentenced to pay a $12,500 criminal fine and $3,808,065 in restitution in U.S. District Court for the District of New Jersey in Newark by Judge Susan D. Wigenton. Bennett was charged with these crimes in August 2009 and was extradited from Canada to the United States in November 2014 to face trial. After a three-week jury trial that ended on March 16, 2016, Bennett was convicted of committing major fraud against the United States and conspiring to pay more than $1.3 million in kickbacks and to defraud the United States at the Federal Creosote Superfund site in Manville, New Jersey.
“Contractors cannot make payoffs to obtain government contracts,” said Acting Assistant Attorney General Renata Hesse for the Justice Department’s Antitrust Division. “Today’s sentencing reaffirms the division’s dedication to prosecuting executives whose greed and illegal ploys undercut competition and defraud the United States.”
According to court documents, between 2001 and 2004 Bennett conspired with others at Bennett Environmental to pay kickbacks, that included money wired to a co-conspirator’s shell company, lavish trips and entertainment expenses and personal gifts, to the project manager at Federal Creosote in an effort to guarantee the award of soil treatment contracts to his company. As a result of the payment of these kickbacks, Bennett Environmental was fraudulently awarded tens of millions of dollars in soil treatment and disposal contracts at Federal Creosote, and the company won contracts at higher prices than it otherwise would have bid, causing harm to the EPA.
The investigation at Federal Creosote has resulted in the conviction of ten individuals and three companies of charges including major fraud against the United States, tax fraud, money laundering and obstruction of justice. Criminal fines and restitution of more than $6 million also have been imposed and seven of the individuals have been sentenced to serve prison sentences ranging from 5 months to 14 years.
Anyone with information concerning bid rigging, kickbacks, tax offenses or fraud relating to subcontracts awarded at Federal Creosote or Diamond Alkali Superfund sites should contact the Antitrust Division’s New York Office at 212-335-8000 or visit https://www.justice.gov/atr/contact/newcase.htm.
Eighth Circuit Court of Appeals Affirms Sentences for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announces that the Eighth Circuit Court of Appeals has affirmed the convictions and sentences of Wesley Running Shield and Michael Alford. The two were convicted by a federal jury in February 2015 of assault with a dangerous weapon and assault resulting in serious bodily injury. The two were each sentenced to 180 months’ imprisonment.
The convictions related to the two men of assaulting a victim in Pine Ridge, South Dakota, in June 2014. They were separately indicted for assaulting two additional victims’ days later, also in Pine Ridge. Rather than proceed to a second jury trial, the government dismissed the second indictment but introduced evidence of the additional assaults in seeking a higher sentence.
On appeal, the two men challenged the district court’s consideration of the dismissed assaults when imposing the sentences. The court of appeals affirmed in a published opinion today, holding that sentencing courts have broad discretion to consider the evidence on the separate assault when sentencing the two men. It also did not violate their due process rights under the Sixth Amendment of the Constitution because the sentences fell within the statutory maximum terms, and a district court is entitled to determine sentences based on judge-found facts and uncharged conduct.
Assistant U.S. Attorney Sarah Collins prosecuted the case at trial, and Assistant U.S. Attorney Kevin Koliner handled the appeal for the government. The case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Bureau of Indian Affairs.
Eight Individuals Charged in Multimillion-Dollar Compounding Pharmacy Fraud SchemeRead the Press Release
Eight Florida residents were charged in an indictment that was unsealed today for their alleged participation in a multimillion-dollar fraud scheme involving prescription compounding pharmacies located in the Tampa Bay, Florida, area and in Miami.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office and Special Agent in Charge George Piro of the FBI’s Miami Field Office made the announcement.
Nicholas A. Borgesano Jr., 43, of New Port Richey, Florida; Bradley Sirkin, 54, of Boca Raton, Florida; Scott D. Piccininni, 47, of Fort Lauderdale, Florida; Edwin Patrick Young, 48, of New Port Richey; Wayne M. Kreisberg, 39, of Parkland, Florida; Matthew N. Sterner, 47, of New Port Richey; Peter D. Williams, 55, of New Port Richey; and Joseph Degregorio, 71, of New Port Richey, were each charged in a 12-count indictment returned on Aug. 3, 2016, with conspiracy to commit health care fraud and wire fraud. Borgesano, Sirkin, Piccininni, Kreisberg and Sterner were each also charged with three money laundering counts. Several defendants were arrested today and will have their initial appearances in federal courts in the Middle and Southern Districts of Florida.
According to the indictment, from approximately October 2012 through December 2015, the co-conspirators allegedly used A to Z Pharmacy Inc., located in New Port Richey, and several Miami-area pharmacies to cause the submission of false and fraudulent reimbursement claims for prescription compounded medications to private insurance companies, Medicare and Tricare. These reimbursement claims were allegedly based on prescriptions generated as a result of illegal kickbacks and bribes, prescriptions that were not based on legitimate provider/patient relationships and misuse of patient information. Additionally, the reimbursement claims allegedly represented that medications contained certain pharmaceutical ingredients when they did not. In addition to A to Z Pharmacy, the defendants used Medplus/New Life Pharmacy, Metropolitan Pharmacy, Havana Pharmacy, Jaimy Pharmacy and Prestige Pharmacy to submit the reimbursement claims, according to the indictment.
The pharmacies submitted approximately $633 million in claims for prescription compounded medications and received approximately $157 million in reimbursement based on the claims, the indictment alleges. The conspirators allegedly used shell companies to transfer and disburse the money and to conceal the conspirators’ activities in the fraud scheme.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office of the Middle District of Florida. Senior Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to www.stopmedicarefraud.gov.
Eight Individuals Charged in Multimillion-Dollar Compounding Pharmacy Fraud SchemeRead the Press Release
Tampa, FL – Eight Florida residents were charged in an indictment that was unsealed today for their alleged participation in a multimillion-dollar fraud scheme involving prescription compounding pharmacies located in the Tampa Bay area and in Miami.
U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office, and Special Agent in Charge George Piro of the FBI’s Miami Field Office made the announcement.
Nicholas A. Borgesano Jr., 43, of New Port Richey; Bradley Sirkin, 54, of Boca Raton; Scott D. Piccininni, 47, of Fort Lauderdale; Edwin Patrick Young, 48, of New Port Richey; Wayne M. Kreisberg, 39, of Parkland; Matthew N. Sterner, 47, of New Port Richey; Peter D. Williams, 55, of New Port Richey, and Joseph Degregorio, 71, of New Port Richey, were each charged in a 12-count indictment returned on Aug. 3, 2016, with conspiracy to commit health care fraud and wire fraud. Borgesano, Sirkin, Piccininni, Kreisberg and Sterner were each also charged with three money laundering counts. Several defendants were arrested today and will have their initial appearances in federal courts in the Middle and Southern Districts of Florida.
According to the indictment, from approximately October 2012 through December 2015, the co-conspirators allegedly used A to Z Pharmacy Inc., located in New Port Richey, and several Miami-area pharmacies to cause the submission of false and fraudulent reimbursement claims for prescription compounded medications to private insurance companies, Medicare and Tricare. These reimbursement claims were allegedly based on prescriptions generated as a result of illegal kickbacks and bribes, prescriptions that were not based on legitimate provider/patient relationships and misuse of patient information. Additionally, the reimbursement claims allegedly represented that medications contained certain pharmaceutical ingredients when they did not. In addition to A to Z Pharmacy, the defendants used Medplus/New Life Pharmacy, Metropolitan Pharmacy, Havana Pharmacy, Jaimy Pharmacy and Prestige Pharmacy to submit the reimbursement claims, according to the indictment.
The pharmacies submitted approximately $633 million in claims for prescription compounded medications and received approximately $157 million in reimbursement based on the claims, the indictment alleges. The conspirators allegedly used shell companies to transfer and disburse the money and to conceal the conspirators’ activities in the fraud scheme.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office of the Middle District of Florida. Senior Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to www.stopmedicarefraud.gov.
Eagle Butte Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Joseph Paul Marshall, age 37, was indicted on July 19, 2016. He appeared before U.S. Magistrate Daneta L. Wollmann on August 8, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 1, 2016 and March 10, 2016, and again between March 20, 2016, and April 10, 2016, Marshall, a person required to register under the Sex Offender Registration and Notification Act, knowingly failed to register and update his registration.
The charges are merely an accusation and Marshall is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay P. Miller is prosecuting the case.
Marshall was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Dominican Man Sentenced After Pleading Guilty to Misrepresenting A Social Security NumberRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Sergio Yeremi Martinez-Mejia, of the Dominican Republic, was sentenced to a time-served sentence after pleading guilty, on May 2, 2016, to falsely claiming that he was assigned a social security number that was in fact assigned to another person.
On March 24, 2015, Immigration and Customs Enforcement was notified that the defendant was suspected of being a foreign national illegally in the United States. On March 23, 2015, the defendant told the Portsmouth Police Department that he was a Puerto Rican U.S. citizen and provided the police a certain social security number that he claimed was his.
On March 24, 2015, an Immigration and Customs Enforcement Deportation Officer interviewed Martinez-Mejia. The defendant claimed that he was born in Puerto Rico and provided the officer with a social security number not in fact assigned to Martinez-Mejia.
The Deportation Officer submitted the defendant’s fingerprints to the Department of Homeland Security and to the FBI. Each agency returned a match for the defendant, Sergio Yeremi Martinez-Mejia, who had, on July 11, 2011, been ordered deported from the United States to the Dominican Republic. Records of the U.S. Social Security Administration revealed that neither of the numbers the defendant claimed were assigned to him actually had been assigned to him.
Martinez-Mejia will now be deported.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and the Portsmouth Police Department. Assistant U.S. Attorney Alfred Rubega prosecuted this case.
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District Man Pleads Guilty to Two Armed Robberies of Commercial Businesses in the Same WeekRead the Press Release
WASHINGTON – Malik Mingo, 19, of Washington, D.C., pled guilty today to offenses stemming from two separate armed robberies of commercial businesses that were committed in broad daylight last year in Southeast Washington, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Mingo pled guilty before the Honorable Rosemary M. Collyer, in the U.S. District Court for the District of Columbia, to one count of interference with interstate commerce by robbery and one count of using, carrying, and possessing a firearm in furtherance of a crime of violence. Under federal sentencing guidelines, he faces a possible range of 161 months to 180 months in prison and a statutory maximum of life in prison. He is to be sentenced on Oct. 20, 2016.
According to the government’s evidence, on Sept. 19, 2015, at approximately 12:50 p.m., Mingo, while masked, and with at least two additional masked individuals, entered Pizza Bolis, a pizza shop in the 1500 block of Alabama Avenue SE. During the course of the robbery, a gun was placed at the head of the cashier and approximately $213 was stolen from the register. Mingo and his accomplices also stole $1,800 and a cellphone from a customer inside the pizzeria. The masked individuals were seen leaving the area in a black Infinity SUV.
Four days later, on Sept. 23, 2015, at approximately noon, Mingo and his accomplice, Jarred Thomas, entered the “Like That 2” barber shop in the 3300 block of Stanton Road SE, while wearing masks and brandishing loaded firearms. The barber shop was located around the corner from the Pizza Bolis that had been robbed four days earlier. At gunpoint, Mingo ordered everyone to the ground and demanded that they hand over their money. Numerous victims were robbed at gunpoint of cash and possessions. Present during the armed robbery was a small child.
After the robbery, Mingo was observed leaving the area in a black Infinity SUV that matched the vehicle seen leaving the Pizza Bolis pizzeria. Mingo subsequently was apprehended by the police three blocks from the barber shop and a firearm was recovered in his flight path. The black Infinity SUV used by Mingo was located and identified as having been stolen in a separate armed robbery eight days earlier.
Thomas, 19, of Washington, D.C., pled guilty in May 2016, in the U.S. District Court for the District of Columbia, to charges stemming from the barber shop robbery, including one count of interference with interstate commerce by robbery, one count of using, carrying, and possessing a firearm in furtherance of a crime of violence, and one count of unauthorized use of a vehicle. He was sentenced on July 13, 2016 to a prison term of 121 months.
In announcing the plea, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier commended the work of those who investigated the case from the Violent Crime Task Force of the FBI’s Washington Field Office and from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Candace Battle, and Assistant U.S. Attorney Christopher Macchiaroli, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the matter.
Defendants Eric Tedtaotao and Macrina Tedtaotao Sentenced in U.S. District CourtRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that on August 8, 2016, Defendants ERIC TEDTAOTAO AND MACRINA TEDTAOTAO, husband and wife, were sentenced by the Honorable Ramona Manglona, Chief Judge, in the District Court of Guam.
Both TEDTAOTAOS pled guilty to Conspiracy to Unlawfully Import Methamphetamine, in violation of Title 21, United States Code, Section 846, 952(a) and 960(b)(3). ERIC TEDTAOTAO was a Department of Corrections (DOC) officer during the conspiracy. He was sentenced to serve 71 months incarceration followed by three years of supervised release, and 100 hours of community service. Defendant MACRINA TEDTAOTAO was sentenced to serve 97 months in prison followed by three years of supervised release, and 100 hours of community service.
On August 4, 2012, Bertha Moore (MACRINA’s aunt) arrived in Guam from the Philippines. She was detained by Guam Customs and Quarantine who recovered three condoms containing methamphetamine from her rectum. Moore was transporting the methamphetamine into Guam for ERIC and MACRINA TEDTAOTAO. Moore was sentenced last year to 87 months in prison.
U.S. Attorney Limtiaco stated, "Defendant ERIC TEDTAOTAO, at the time of the criminal activity, was a DOC officer and as law enforcement, violated the public's trust. It is not uncommon for methamphetamine hydrochloride possession and distribution to be associated with violent and other criminal activity. The drug has destructive and devastating effects on individuals, families and our community. The U.S. Attorney’s Office is committed to the aggressive prosecution of drug traffickers."
The investigation was conducted by Special Agents and Task Force Officers of the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Guam Police Department, Superior Court of Guam Probation Office, Guam Customs and Quarantine, U.S. Marshals Service, the Filipino National Police and the U.S. State Department. The case was handled by Assistant U.S. Attorney Clyde Lemons, Jr.
Corn Creek Woman Sentenced to 37 Months for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Corn Creek, South Dakota, woman convicted of Possession with Intent to Distribute a Controlled Substance and Aiding and Abetting was sentenced on August 4, 2016, by U.S. District Judge Roberto A. Lange.
Suni Wooden Knife, age 25, was sentenced to 37 months in custody, followed by 3 years of supervised release, a $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund. Wooden Knife was also ordered to forfeit U.S. currency that was seized by law enforcement in October 2014.
Wooden Knife was indicted for Possession with Intent to Distribute a Controlled Substance by a federal grand jury on March 10, 2015. Wooden Knife pled guilty to a Superseding Indictment charging Possession with Intent to Distribute a Controlled Substance and Aiding and Abetting on February 1, 2016.
The conviction stemmed from an incident that occurred on October 15, 2014, at the Rosebud Casino on the Rosebud Sioux Indian Reservation, when Wooden Knife possessed and aided and abetted Leon Kills In Water in the possession of over 100 grams of methamphetamine, knowing that the methamphetamine was intended for further distribution. Along with the methamphetamine, over $6,000 in cash, believed to be proceeds from drug sales, was seized from Wooden Knife and Kills In Water at the Rosebud Casino.
Leon Kills In Water was previously sentenced on December 7, 2015, to 120 months in custody.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Wooden Knife was immediately turned over to the custody of the U.S. Marshals Service.
Charlotte Man Pleads Guilty to Perjury Charge for Lying Under Oath During TrialRead the Press Release
CHARLOTTE, N.C. B Jucorey Deonte Pruitt, aka Corey Deonte Pruitt, 25, of Charlotte, appeared in court today and pleaded guilty to a perjury charge for lying under oath during a federal trial, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. Magistrate Judge David S. Cayer presided Pruitt’s plea hearing.
U.S. Attorney Rose is joined in making today’s announcement by Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Chief Kerr Putney of the Charlotte Mecklenburg Police Department; Chief J. Bryan Gilliard of the Monroe Police Department; and Sheriff Eddie Cathey of the Union County Sheriff’s Office.
According to filed documents and statements made in court, Pruitt committed perjury during his testimony at the criminal trial of DeMorius Lamar Anderson (3:11-cr-3). Anderson was on trial on multiple federal charges including drug conspiracy, Hobbs Act Robbery and firearm violations. According to court records, Pruitt was a witness for the government and had agreed to testify regarding his knowledge of Anderson’s involvement in the drug conspiracy and other material information against Anderson.
According to court records, on August 9, 2012, while under oath and in an effort to aid Anderson, Pruitt denied knowledge of Anderson’s participation in the drug conspiracy. Pruitt’s assertions under oath were contradictory to prior statements he had made to law enforcement. During his testimony, Pruitt stated that he had previously lied to law enforcement regarding Anderson’s criminal activity, including his role in the drug conspiracy. Court records indicate that later that same evening, on jail house recordings, Pruitt admitted he lied to federal agents at trial. Anderson was eventually convicted by a jury and was sentenced to more than 37 years in prison.
“Pruitt chose to lie on the witness stand to protect one of his criminal associates. Despite Pruitt’s false testimony, the defendant was convicted by a jury and is serving a lengthy prison term. Now it’s Pruitt’s turn to sit in the defendant’s chair for lying under oath,” said U.S. Attorney Rose. “Perjury tarnishes our justice system and jeopardizes the integrity of judicial proceedings. Liars do not belong in the courtroom,” Rose added.
Pruitt is currently in federal custody. The perjury charge carries a maximum prison term of five years and a $250,000 fine. A sentencing date has not been set yet.
The investigation was handled DEA, CMPD, Monroe PD and the Union County Sheriff’s Office. The prosecution is being handled by the Assistant U.S. Attorney Sanjeev Bhasker of the U.S. Attorney’s Office in Charlotte.
Camden, New Jersey, Man Gets More Than 12 Years in Prison for Narcotics Distribution Conspiracy, Firearms PossessionRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 148 months in prison for his role in a large-scale drug trafficking organization that distributed hundreds of grams of cocaine base, cocaine and heroin, U.S. Attorney Paul J. Fishman announced.
Carl Wiles, 26, previously pleaded guilty before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base, 500 grams or more of cocaine, and 100 grams or more of heroin, as well as one count of being a felon in possession of a firearm. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Wiles admitted that from January 2012 through April 2013, he stored, packaged and distributed cocaine and heroin for sale in the area of 8th and Tulip Streets and the Crestbury Apartments. Wiles also admitted that during that time, he and others within the drug trafficking organization sold 2,328 grams of cocaine base, 675 grams of cocaine and 926 grams of heroin.
Wiles – a previously convicted felon – was arrested in April 2013 and found with numerous firearms in his possession, including handguns, assault rifles and a shotgun.
In April 2013, seven members of the drug trafficking organization, including Wiles, were charged by criminal complaint with conspiring to distribute cocaine base, cocaine, and heroin. All of the defendants have pleaded guilty.
In addition to the prison term, Judge Kulgler sentenced Wiles to five years of supervised release.
The government is represented by Special Assistant U.S. Attorney Erin M. Fay and Special Litigation Counsel Jason Richardson.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, Philadelphia Division, under the direction of Special Agent in Charge William F. Sweeney Jr.; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; the Camden County Police Department, under the direction of Chief Scott Thomson; the N.J. State Police, under the direction of Col. Rick Fuentes; and the Camden Collaborative Crime Commission (“C4”), with the investigation.
He also thanked the Philadelphia Police Department, the N.J. Parole Board, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the N.J. Division of Criminal Justice, the Voorhees Police Department, the Gloucester County Prosecutor’s Office, the Salem County Prosecutor’s Office, the Camden County Sheriff’s Office, the Woodbury Police Department and the Pennsauken Police Department for their roles in the case.
This case was developed through the work of the Camden Collaborative Crime Commission (C-4). Every federal, state and local law enforcement agency and prosecutor’s office responsible for combating drug trafficking, gang activity and violent crime in Camden has come together in one location to share intelligence, develop investigative strategies and support the investigative and prosecutorial efforts of its partners. C-4 has merged the individual missions of the various law enforcement agencies into a single strategic attack on drug trafficking and drug-related violent crime. Such intense coordination greatly enhances the law enforcement community’s ability to correctly identify and successfully prosecute the most dangerous criminals in one of our nation’s most dangerous cities.
Defense counsel: Ed Borden Esq.
Bradford County Men Charged with Stealing and Transporting 48 Firearms and Distributing HeroinRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jared Miller, age 28, a Sayre, Pennsylvania resident, and Aaron Vanderpool, age 34, a Wysox, Pennsylvania resident, have been charged in separate Criminal Informations with firearms and controlled substance offenses associated with a May 2015 gun store burglary in Bradford County.
According to United States Attorney Peter Smith, Vanderpool stole 48 firearms from Fulmer’s Sporting Goods, a federally licensed firearms dealer in Wysox, Pennsylvania, on or about May 24, 2015. The information also charges Vanderpool with distributing heroin on May 8, 2015.
A separate information filed against Miller charges him with transporting 47 of the stolen firearms from Pennsylvania to New York, between May 26, 2015 and June 15, 2015. The Information also charges Miller with conspiring to distribute and possess with the intent to distribute 400-700 grams of heroin, equivalent to approximately 16,000 to 28,000 doses of heroin, during a three-year period from June 1, 2012 through June 15, 2015.
The government simultaneously filed plea agreements with both Vanderpool and Miller which are subject to approval of the court. A date for their arraignments has not been set.
Miller and Vanderpool were initially charged with and arrested for firearms and heroin offenses in a criminal complaint filed on June 16, 2015. Both men have remained in custody since their arrest.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives and the Pennsylvania State Police. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
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.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic of the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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 penalties under federal law for the charges filed against Miller are 50 years of imprisonment, a term of supervised release following imprisonment, and a fine. The heroin conspiracy charge carries a five-year mandatory minimum sentence of imprisonment. The maximum penalties under federal law for the charges filed against Vanderpool are 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Blackfoot Woman Pleads Guilty to Theft of Funds from Fort Hall ElementaryRead the Press Release
POCATELLO – Brenda Honena, 52, of Blackfoot, Idaho, pleaded guilty today in United States District Court to the theft of money from the Fort Hall Elementary School in 2012, U.S. Attorney Wendy J. Olson announced. Honena was indicted by the federal grand jury in Pocatello on February 23, 2016.
In 2012, officials in the Blackfoot School District #55 discovered that certain suppliers for fundraisers held at the Fort Hall Elementary School had not been paid. An investigation revealed that $9,463.51 of money from fundraisers held at the school was missing. Honena was then employed as the principal at the school. She initially denied taking the money but in a later interview with special agents from the Federal Bureau of Investigation, she admitted taking the money and being responsible for the missing $9,463.51. Honena admitted she spent the money for her personal use and did so without authorization.
The federal court has jurisdiction over this case because the Blackfoot School District #55 receives federal funding for its operations. The charge of theft from an organization receiving federal funds is punishable by up to ten years in prison, up to three years of supervised release, and a fine of up to $250,000.
Honena is scheduled to be sentenced on November 8, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Federal Bureau of Investigation and the Fort Hall Police Department.
Audubon, N.J., Woman Conspired with Then-Boyfriend to Produce Sexually Explicit Images of Two ChildrenRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, woman today admitted conspiring with her former boyfriend to produce sexually explicit images of two children, U.S. Attorney Paul J. Fishman announced.
Janine Kelley, 35, of Audubon, N.J., pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging her with one count of conspiring with her former boyfriend, Alexander Capasso, 42, of Collingswood, New Jersey, to engage in the sexual exploitation of two children by producing sexually explicit images of them.
According to documents filed in this case and statements made in court:
Kelley, a registered nurse, entered into a sexual relationship with Capasso in or about 2011, during which Capasso expressed an interest in engaging in sexual conduct with children. From November 2011 through October 2012 Kelley took, and allowed Capasso to take, recorded images of her engaged in sexually explicit conduct with two children. Kelley also took, or allowed Capasso to take, images of Capasso engaged in sexually explicit conduct with one of the minor children.
The conspiracy count to which Kelly pleaded guilty carries a minimum penalty of 15 years in prison, a maximum penalty of 30 years in prison, and a fine of up to $250,000. Sentencing is scheduled for Nov. 18, 2016.
U.S. Attorney Fishman credited special agents of the FBI’s Philadelphia Division, under the direction of Special Agent in Charge William Sweeney, and the Washington, D.C., Field Office, under the direction of Assistant Director in Charge Paul M. Abbate, with the investigation leading to today’s guilty plea.
Capasso was indicted by a federal grand jury in Camden on July 6, 2016, for allegedly possessing and distributing images of child sex abuse and also for conspiring to sexually exploit two minor children. The charges and allegations contained in that indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Diana V. Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Atlanta Women Plead Guilty to Possession of Marijuana with Intent to DistributeRead the Press Release
St. Thomas, USVI – Noelle Bishopel, 27, and Sierra Wimberly, 25, each pleaded guilty today in District Court on St. Thomas to one count of possession with intent to distribute marijuana, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement, on April 6, 2016, U.S. Customs and Border Protection inspection officers detected narcotics in checked bags belonging to Wimberly and Bishopel after their arrival at the Cyril E. King Airport on St. Thomas on a Delta Airlines flight from Atlanta, Ga. Both women were taken to secondary inspection, and their checked bags were further examined. CBP officers seized approximately 4.9 kilograms of marijuana from Wimberly’s bag, and 9.45 kilograms of marijuana from Bishopel’s bag.
Wimberly and Bishopel each face a maximum sentence of five years in prison, three years supervised release, and a $250,000 fine. Sentencing is scheduled for December 8, 2016.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Everard Potter.
Associate of Decavalcante Crime Family Sentenced to 30 Months in Prison for Distributing CocaineRead the Press Release
NEWARK, N.J. – An associate of the DeCavalcante organized crime family of La Cosa Nostra was sentenced today to 30 months in prison for his role in distributing more than 500 grams of cocaine, U.S. Attorney Paul J. Fishman announced.
Mario Galli, 24, of Toms River, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of distribution of more than 500 grams of cocaine.
According to documents filed in this case and statements made in court:
Galli was arrested and charged by complaint in March 2015, along with nine members of the DeCavalcante crime family. He admitted that between Dec. 12, 2014, and March 2015, in conjunction with other family associates, he sold more than one-half a kilo of cocaine to an undercover FBI agent for at least $78,000.
In addition to the prison term, Judge Walls sentenced Galli to three years of supervised release and fined him $1,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the N.J. State Commission of Investigation, under the direction of Acting Executive Director Lee C. Seglem; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault; and the Union County Prosecutor’s Office, under the direction of Acting Union County Prosecutor Grace H. Park.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.
Defense counsel: James N. Butler Jr. Esq., Asbury Park, New Jersey
Alexander Co. Man Sentenced to More Than Seven Years in Prison on Child Pornography ChargesRead the Press Release
STATESVLLE, N.C. – Joshua Lynn Cook, 32, of Hiddenite, N.C. was sentenced yesterday by U.S. District Judge Richard L. Voorhees to 89 months in prison on child pornography charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Cook was also ordered to serve a lifetime of supervised release and to register as a sex offender.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Sheriff Chris Bowman of the Alexander County Sheriff’s Office join U.S. Attorney Rose in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, on April 14, 2014, law enforcement became aware that Cook was downloading and sharing child pornography on the Internet. On the same date, Cook shared child pornography with an undercover agent at least three times using a peer-to-peer network. During subsequent searches, law enforcement seized Cook’s electronic devices, including a computer and a cellphone. Forensic analyses of those devices revealed that Cook possessed more than 6,000 images and 427 videos of child pornography, some of which depicted prepubescent minors engaging in sadistic and masochistic or other violent conduct. Some of the images and videos contained identified victims of 123 different series of child pornography produced in various places, such as Washington, Germany and France.
Cook pleaded guilty in January 2016 to one count of transportation, one count of receipt and one count of possession of child pornography. He is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Rose thanked the FBI and the Alexander County Sheriff’s Office for their investigation of this case. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children.By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims.For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Albuquerque Woman Pleads Guilty to Federal Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Sara Marie Martinez, 36, of Albuquerque, N.M., pleaded guilty today in federal court to an indictment charging her with heroin and methamphetamine trafficking offenses. Martinez entered the guilty plea without the benefit of a plea agreement. Co-defendant Ernest Cordova, 44, also of Albuquerque, previously pled guilty to the indictment in March 2016.
Martinez and Cordova were charged in March 2016 in a three-count indictment with heroin and methamphetamine trafficking offenses. According to the indictment, Cordova conspired to distribute heroin and methamphetamine from Jan. 22, 2016 through Feb. 18, 2016 and Cordova and Martinez possessed heroin and methamphetamine with intent to distribute on Feb. 18, 2016. The indictment alleged that they committed the crimes in Bernalillo County, N.M. The indictment included forfeiture provisions requiring Cordova and Martinez to forfeit $8,840.27 to the United States.
According to court documents, DEA agents observed Cordova engage in several drug deals in the Albuquerque-area between Jan. 22, 2016 and Feb. 18, 2016. During the execution of a search warrant on Cordova’s residence on Feb. 18, 2016, the DEA found 134 grams of heroin and 82 grams of methamphetamine.
At sentencing, Martinez and Cordova each face a statutory minimum of five years and maximum of 40 years in federal prison. Martinez and Cordova remain in custody pending sentencing hearings.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Alexander M. Uballez as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
17 Defendants Indicted in International Drug Trafficking RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a 30 count indictment charging 17 defendants with multiple narcotics offenses for their role in a drug trafficking organization that utilized contacts and sources of supply from Mexico, California, and elsewhere. This organization trafficked thousands of kilograms of illegal narcotics, including heroin, fentanyl, and cocaine throughout the United States, including Lockport, Niagara Falls, and Buffalo.
“As set forth in the indictment and in Court, this organization represents the largest drug trafficking organization ever dismantled in this District, responsible for distributing tons of heroin, cocaine, fentanyl and marijuana on the streets of Buffalo, Lockport and Niagara Falls,” said U.S. Attorney Hochul. “The organization utilized front companies, deliverymen, and wholesalers to import and distribute the drugs in this area, and bookkeepers and money launderers to conceal the tens of millions of dollars sent from Buffalo back to the suppliers. Some intended user of these illegal drugs will potentially be alive tomorrow, thanks to the work done by law enforcement today.”
DEA Special Agent in Charge James J. Hunt stated, “The Sinaloa Cartel’s reach from Mexico into U.S. Cities is most evident in this investigation. The Gil Organization’s alleged trafficking turned the City of Buffalo into ground zero for fentanyl/heroin trafficking in NY State; fueling drug addiction, overdoses and violent crime. Through an unprecedented collaboration between law enforcement, DEA and our law enforcement partners have successfully dismantled the organization that spanned from Mexico to Buffalo at all levels of operation.”
IRS-Criminal Investigation Special Agent in Charge Shantelle P. Kitchen said, “Tracing the complex flow of proceeds from the sale of illegal drugs is a proven, effective tool in dismantling drug organizations and we are proud that we do it very well. Moreover, the collaboration of skilled financial investigators, drug investigators, and prosecutors provides a formidable adversary in the fight against local, national, and international drug organizations. IRS-Criminal Investigation is pleased to be associated with such partnerships, including this one.”Named in the indictment are:
• Jose Ruben Gil, a/k/a Unc, a/k/a Ruben Gil Campos, a/k/a Mayor of Mexico;
• Herman E. Aguirre, a/k/a 007, a/k/a Lucky, a/k/a Primo, a/k/a Freddy;
• Sonia Hernandez;
• Martha Aguirre;
• Juan Alfaro;
• Margaret Banuelos, a/k/a Lisa;
• Troy R. Gillon;
• Darryl J. Williams, a/k/a D;
• Trent Adair Hamilton;
• Michael Paul Mitchell;
• Demetrius Yarborough, a/k/a Tu-Tu;
• Rashawn Crule, a/k/a Black, a/k/a Shawn;
• Maulana Lucas, a/k/a Big Daddy, a/k/a Shabazz;
• Shirley Grigsby
• Ralik Hamilton;
• Joseph Thompson, a/k/a Jo-Jo, a/k/a Skools, a/k/a Skoolboy and
• Dion CheathamCharges include engaging in a continuing criminal enterprise; conspiracy to possess with intent to distribute heroin, fentanyl, and cocaine; money laundering conspiracy; possession with intent to distribute, and distribution of crack cocaine, heroin and fentanyl; maintaining a drug-involved premises; felon in possession of firearm and ammunition; possession of a firearm in furtherance of drug trafficking crimes; and obstruction of justice. All 17 defendants face a mandatory minimum sentence of 20 years in prison.
Assistant U.S. Attorneys Meghan A. Tokash and Michael P. Felicetta, who are handling the case, stated that according to the indictment, members of the organization created fictitious “front” companies including Triton Foods, Inc., Kamora Investment Enterprises, Inc. and Fresh Choice Produce, all of which were incorporated in the State of California. Another fictitious company, Corral Seafoods, LLC, registered in the State of New York, was allegedly located in Cheektowaga, New York.
Using these companies, the defendants disguised kilogram quantities of heroin, fentanyl, and cocaine on pallets described on inventory and other documents as containing “Sea Cucumbers.” The pallets bearing the illegal narcotics were secreted in containers sealed with foam or spray insulation to avoid detection by law enforcement.
Members of the organization also utilized numerous bank accounts at a financial institution to conceal and disguise drug proceeds.
During the course of the investigation, law enforcement officers seized over $2,500,000 worth of illegal narcotics, including:
• 52.5 kilograms of cocaine;
• 17.5 kilograms of heroin; and
• 8.5 kilograms of fentanylUsing standard dosage amounts, the seized drugs potentially represent over 1,500,000 “hits” of cocaine, and 2,700,000 “hits” of heroin.
The investigation further determined that between June 2013 and September 2015, members of the organization additionally distributed over 5,000 pounds of cocaine, heroin, fentanyl and marijuana in the Western New York area. The indictment alleges that approximately $20,000,000 was sent from Western New York banks to California in a one year period of time. The investigation into remaining members of the Gill/Aquirre drug trafficking organization continues.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen.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.
11 Defendants Charged in White Plains Federal Court with Narcotics Trafficking in Rockland CountyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Thomas P. Zugibe, Rockland County District Attorney, Chris Goldrick, Director of the Rockland County Drug Task Force, and Charles Miller, Town of Haverstraw Police Chief, today announced the unsealing of an indictment charging eleven defendants with trafficking in cocaine and crack cocaine in and around Rockland County, New York. Eleven defendants were taken into federal custody today, and will be presented in White Plains federal court this afternoon before U.S. Magistrate Judge Lisa Margaret Smith. This case is assigned to U.S. District Judge Nelson S. Roman. In a related prosecution, New York State has indicted an additional five defendants.
U.S. Attorney Preet Bharara stated: “As alleged, the eleven men charged today were part of a narcotics distribution network that peddled large quantities of powder and crack cocaine all around Rockland County. The residents of our communities are entitled to live and work free from the ills of narcotics trafficking. Our joint effort with the FBI, Rockland County District Attorney’s Office, the Rockland County Drug Task Force and Haverstraw Police Department brings us closer to that goal.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “For over two years, a drug trafficking organization allegedly led by Jemel Goode, trafficked and sold cocaine and crack cocaine in Rockland County. Today, with our partners in the Westchester County Safe Streets Task Force, in coordination with the Rockland County Drug Task Force, we can announce the arrest of 11 members of this organization. We will continue our investigations and work with local partners to clear our communities of violence and drugs.”
Rockland County District Attorney Zugibe stated: “This investigation is another example of local and federal law enforcement working together to reduce drug dealing that too often plagues our community. The charges are the result of hundreds of hours of investigation and surveillance over a 12-month period, led by the Rockland County Drug Task Force. Not only were we able to arrest street dealers, but also the two brothers who were allegedly running the large-scale cocaine distribution network. ‘Operation No Goode’ underscores law enforcement’s collective commitment to ridding our towns and villages of illegal drug activity.”
Rockland County Drug Task Force Director Chris Goldrick said, “The defendants are accused of being part of a sweeping operation dealing in drugs all across Rockland County. These charges are the result of hundreds of hours of investigation and surveillance over a year-long period. Working closely with our partners at the local and federal levels, technology and physical surveillance allowed detectives to uncover the entire operation from the bosses to the street-level couriers. We will continue to work together to keep our residents safe.”
Town of Haverstraw Police Chief Charles Miller stated: “These arrests are the result of a coordinated law enforcement and prosecutorial initiative to rid our community of dangerous drug dealers. The Haverstraw Police Department and our law abiding residents will not tolerate the illegal narcotics trade on our streets. This case clearly demonstrates the success that can be achieved through local and federal law enforcement cooperation.”
As alleged in the Indictment unsealed today in White Plains federal court[1]:
From July 2014, up to and including July 2016, : JEMEL GOODE, a/k/a “J Rock,” BENANCIO CABA, a/k/a “Bennie Caba,” LASEAN GOODE, a/k/a “Bones,” EDWIN HILARIO, ANEUDI JIMENEZ, a/k/a “Fat Bastard,” QUELVIN LOPEZ, NATHANIEL SAUNDERS, SR., NATHANIEL SAUNDERS, JR., a/k/a “Quan,” ALEXANDER SCUDDER, DUANE TAYLOR, a/k/a “Daquan Jenkins,” a/k/a “Antwan Scott,” and SHARRAHN WALTON conspired to sell cocaine and crack cocaine. Specifically, the defendants JEMEL GOODE, LASEAN GOODE CABA, NATHANIEL SAUNDERS, SR., NATHANIEL SAUNDERS, JR., TAYLOR, and WALTON, conspired to sell 280 grams or more of crack cocaine. The defendants CABA, SCUDDER, HILARIO, LOPEZ, and JIMENEZ conspired to sell 500 grams or more of cocaine. During the course of the conspiracy, law enforcement officers observed several defendants participate in the sale of cocaine and crack cocaine to confidential informants working with law enforcement and to an undercover law enforcement officer. Law enforcement officers using court-authorized wiretaps also intercepted numerous communications in which the defendants discussed trafficking cocaine and crack and arranged sales of both narcotics.
* * *
A chart containing the names of the defendants, and the charges and maximum penalties they face, is attached.
The statutory maximum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Bharara praised the outstanding investigative work of the FBI, the Rockland County District Attorney’s Office, the Rockland County Drug Task Force, and the Town of Haverstraw Police Department.
These cases are being handled by the Office’s White Plains Division. Assistant United States Attorneys Christopher Clore and Lauren Schorr are in charge of the prosecutions.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
CHARGE
DEFENDANT
AGE
RESIDENCE
MAXIMUM PENALTIES
Narcotics conspiracy – Crack cocaine
(Conspiracy to distribute and possess with intent to distribute crack cocaine, in violation of 21 U.S.C. §§ 846, 841(a)(1) & 841(b)(1)(A))
JEMEL GOODE, a/k/a “J Rock”
34
Congers, New York
Life in prison
Mandatory minimum: 10 years in prison
BENANCIO CABA, a/k/a “Bennie Caba”
27
Haverstraw, New York
LASEAN GOODE, a/k/a “Bones”
31
W. Haverstraw, New York
NATHANIEL SAUNDERS, SR.
44
Haverstraw, New York
NATHANIEL SAUNDERS, JR., a/k/a “Quan,”
22
Haverstraw, New York
DUANE TAYLOR, a/k/a “Daquan Jenkins,” a/k/a “Antwan Scott”
36
Haverstraw, New York
SHARRAHN WALTON
19
Haverstraw, New York
Narcotics conspiracy – Cocaine (Conspiracy to distribute and possess with intent to distribute cocaine, in violation of 21 U.S.C. §§ 846, 841(a)(1) & 841(b)(1)(B))
BENANCIO CABA, a/k/a “Bennie Caba”
27
Haverstraw, New York
Maximum of 40 years in prison
Mandatory minimum: 5 years in prison
ALEXANDER SCUDDER
35
Nyack, New York
EDWIN HILARIO
30
Haverstraw, New York
QUELVIN LOPEZ
32
Haverstraw, New York
ANEUDI JIMENEZ, a/k/a “Fat Bastard”
34
W. Haverstraw, New York
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Monday 8 August 2016
West Texas Woman Sentenced for Identity Theft in East TexasRead the Press Release
BEAUMONT, Texas – A 26-year-old Wimberly, Texas woman has been sentenced to federal prison for identity theft related violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Samantha Kelly Bradshaw pleaded guilty on May 2, 2016 to identity theft by unlawful possession of a means of identification and was sentenced to 24 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on Jan. 9, 2016, a deputy with the Hardin County Sheriff’s Office was dispatched to the scene of a one-vehicle accident in Kountze, Texas where the vehicle was discovered to have been reported as stolen from Groves, Texas. After the arrest of the driver, further investigation led to a residence on Manor Drive in Kountze where two other persons were arrested for drug offenses and one person was arrested for an outstanding warrant. Bradshaw was located in a bedroom and initially arrested for failing to identify and later falsely identifying herself using an assumed name. A search of the bedroom resulted in the location of over 50 pieces of identifying information including names, dates of birth, Social Security numbers, driver licenses, passports, visas, and bank account information of people from other parts of the state. Two Texas identification cards were also located in the names of another person and Samantha Kelly Bradshaw. The Bradshaw identification card had the photograph cut out and the identification card in the other name was fictitious. A birth certificate and a Social Security card in the other name were also discovered. Additionally, numerous debit cards obtained in various names were located, including some of the fictitious identification card and Samantha Bradshaw. The person whose name was on the fictitious Texas identification card confirmed she was a victim of identity theft.
This case was investigated by the U.S. Department of Homeland Security Investigations and the Hardin County Sheriff’s Office and was prosecuted by Assistant U.S. Attorney Robert L. Rawls.
The Estate of Dr. Kenneth Michael Rice and UMC Physicians Pay a Total of $3,280,000 to Resolve False Claims Act AllegationsRead the Press Release
DALLAS C The Estate of Dr. Kenneth Michael Rice and UMC Physicians (UMCP) have agreed to pay a total of $3,280,000.00 to the United States and the State of Texas to settle allegations that Dr. Rice and UMCP violated the False Claims Act, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the United States alleged that Dr. Rice, by and through UMCP, submitted false claims for payment to Medicaid and Medicare related to in-person evaluation and management services, as well as critical care services. The Estate of Dr. Rice agreed to pay the United States and the State of Texas $2,000,000, collectively, to settle the allegations. UMCP agreed to pay $1,280,000 to settle the matter. Both the Estate of Dr. Rice and UMCP fully cooperated with the investigation and, by settling, did not admit any wrongdoing or liability.
UMCP, a physician practice management group located in Lubbock, Texas, employs healthcare providers for its sole managing member, the Lubbock County Hospital District d/b/a UMC Health System (UMC). UMCP employed Dr. Kenneth Michael Rice as a healthcare provider at UMC from February 12, 1996 through his death on February 4, 2015. The settlement resolves allegations that from January 2008 through February 2015, Dr. Rice, by and through UMCP, billed Medicare and Medicaid for in-person evaluation and management services at the higher physician fee rate, even though the services were often provided by nonphysician providers. Dr. Rice and UMCP are also alleged to have billed normal evaluation and management services to Medicare at the higher critical-care rate. The Estate and UMCP deny the allegations.
“Health care providers, like all those that choose to do business with the government, must turn square corners when billing Medicare and Medicaid for services provided to patients,” U.S. Attorney Parker said. “As this settlement demonstrates, we will continue to work to ensure that providers bill for and are paid for the services they provide – but no more.”
The Texas Medicaid Fraud Control Unit and the Civil Medical Fraud Division of the Office of the Attorney General for the State of Texas participated in the resolution of this matter. The case was handled by Assistant U.S. Attorney Kenneth G. Coffin.
# # #
Texas Man Sentenced to Prison for Role in Stolen Identity Refund Fraud Scheme Involving IRS “Get Transcript” DatabaseRead the Press Release
A Houston, Texas, man was sentenced to more than two years in prison today for his role in a stolen identity refund fraud (SIRF) scheme, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Department of Justice’s Tax Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Denzel Roberts, 24, was sentenced by U.S. District Judge Lynn N. Hughes of the Southern District of Texas to serve 24 months in prison followed by a two year term of supervised release. Judge Hughes ordered Roberts to pay $74,341 in restitution to the Internal Revenue Service (IRS). In May, Roberts pleaded guilty to one count of theft of public money.
“The Justice Department is committed to aggressively prosecuting those who participate in schemes to steal personal information, infiltrate databases and assume identities in an effort to prepare and file fictitious tax returns seeking to line their pockets with fraudulently obtained refunds,” said Principal Deputy Assistant Attorney General Ciraolo. “Individuals like Mr. Roberts, who receive the fraudulent refunds, especially through opening bank accounts in fictitious names, play key roles in these illegal schemes and substantially contribute to the loss to the U.S. Treasury and the damage inflicted on identity theft victims. Working with our law enforcement partners, we will continue to seek lengthy prison terms and substantial monetary penalties for those who engage in this criminal conduct.”
“Today’s sentencing of Denzel Roberts for his role in a stolen identity refund fraud ring emphasizes how seriously IRS-Criminal Investigation (IRS-CI) and our law enforcement partners take the issue of identity theft,” said Chief Richard Weber for IRS-CI. “Mr. Roberts may have thought that he would not get caught while acting as a conduit for ill-gotten gains, but he will now pay the price for stealing funds from the American tax system and honest citizens.”
According to court documents, Roberts participated in a scheme that used stolen personal identification information to file false federal income tax returns for tax year 2014. Participants in the scheme obtained means of identification of actual individuals, including their names and social security numbers, and used this information to access the IRS’s “Get Transcript” database. Using the stolen identities and information obtained from the Get Transcript database, other members of the scheme prepared and filed false tax returns fraudulently requesting refunds. Roberts admitted using a fraudulent passport to open several bank accounts into which the refunds were deposited. Roberts then withdrew the illicit proceeds, retaining a portion of the money as a fee and providing the remainder of the funds to others.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Magidson thanked special agents of IRS-Criminal Investigation and the FBI Houston Area Cyber Crime Task Force, who investigated the case and Trial Attorneys Michael Boteler and Grace Albinson of the Tax Division, who are prosecuting this case with assistance from Assistant U.S. Attorney Jimmy Sledge of the Southern District of Texas.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Stamford Man Pleads Guilty to Capturing and Killing Federally Protected HawksRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Honora Gordon, Special Agent in Charge of the Northeast Region of the U.S. Fish and Wildlife Service, Office of Law Enforcement, announced that ADAM BOGUSKI, 43, of Stamford, pleaded guilty today in Hartford federal court to one count of conspiracy to take, capture and kill red-tailed hawks and Cooper’s hawks, and two counts of taking, capturing and killing Cooper’s hawks.
According to court documents and statements made in court, red-tailed hawks and Cooper’s hawks are birds of prey, also known as raptors, and consume pigeons as part of their natural diet. These hawks are protected under the federal Migratory Bird Treaty Act.
In pleading guilty, BOGUSKI admitted that he and Thomas Kapusta were racing pigeon enthusiasts who constructed and maintained a pigeon coop at 330 Weed Avenue in Stamford. BOGUSKI and Kapusta kept a large number of racing pigeons at this coop, and regularly let them fly outside the coop for exercise. Because BOGUSKI and Kapusta viewed these hawks as a threat to their pigeons, they systematically captured the hawks in a trap specifically designed to capture birds of prey, shot and killed them in the trap, and disposed of their carcasses. BOGUSKI admitted that he killed Cooper’s hawks on September 27, 2015 and October 17, 2015.
BOGUSKI is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on October 11, 2016. He faces a maximum term of imprisonment of 18 months and a fine of up to $45,000.
On February 17, 2016, Kapusta, of Westbury, N.Y., pleaded guilty to one count of conspiracy to take, capture and kill red-tailed hawks and Cooper’s hawks, and four counts of taking, capturing and killing red-tailed hawks or Cooper’s hawks. He is scheduled to be sentenced on September 12.
This matter has been investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement and the Division of Refuge Law Enforcement, and the Environmental Conservation Police of the Connecticut Department of Energy and Environmental Protection, with the assistance of the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Springfield Man Sentenced to 3 ½ Years in Prison for Advertising ScamRead the Press Release
Springfield, Ill. – A Springfield, Ill., man, Andrew Miles Ross, was sentenced on Friday, Aug. 5, 2016, to serve 42 months (three years, six months) in federal prison and to pay $14,389 in restitution for operating a telemarketing advertising scam. Ross, 33, of the 3100 block of S. Woodward St., was allowed to self-report to begin serving his prison term at a later date, as directed by the federal Bureau of Prisons.
Ross owned and operated a telemarketing company from 2005 to April 2011, that used various names, including A. Ross and Associates and Coast-to-Coast Advertising, LLC, doing business as Nationwide Advertising and Nationwide Marketing. The company sold advertising space on placemats or take-home menus purportedly to be used by popular Mexican restaurants.
On Aug. 25, 2015, Ross pled guilty to the scheme, which grossed an estimated $900,000 from 2005 to April 2011. As a result of the scheme, Ross defrauded an estimated 6,500 small businesses in more than 32 states.
As part of the scheme, advertising space was sold primarily to small businesses located in the vicinity of Mexican restaurants. The telemarketers falsely represented to the businesses that they were employed by or associated with a local Mexican restaurant that was selling ad space on its placemats or take-home menus. Further, the telemarketers falsely represented a one-time annual fee for purchasing an advertisement, although the checking or credit card accounts of the small businesses were routinely debited without the businesses’ authorization or consent on multiple occasions during the year.
The case was prosecuted by Assistant U.S. Attorney Gregory K. Harris. The investigation was conducted by agents of the FBI and the U.S. Postal Inspection Service. The case was referred to the U.S. Attorney’s Office by the Illinois Attorney General’s Office.
South Texas Couple Pleads Guilty to Tax ChargesRead the Press Release
Chiropractor Interfered with IRS Collection Efforts and Retired Firefighter Willfully Failed to File Return
Anna Allen and Martin Armendariz of El Paso, Texas, pleaded guilty today in the U.S. District Court for the Western District of Texas to tax crimes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Richard L. Durbin Jr., of the Western District of Texas.
Allen, a practicing chiropractor, and her husband, Armendariz, a retired El Paso firefighter, have not filed federal income tax returns since 2004. Allen pleaded guilty to evading her 2009 individual income taxes. Armendariz pleaded guilty to willfully failing to file a 2009 tax return.
According to the statement of facts accompanying the plea agreements, after the Internal Revenue Service (IRS) levied upon Allen’s bank accounts and accounts payable in order to collect back taxes, Allen sent threatening correspondence to her bank regarding the bank’s responses to the IRS’s levy requests and altered her banking habits to prevent any seizures. Allen also instructed a third party to submit insurance billings on behalf of Allen’s chiropractic business using an Employment Identification Number assigned to another business in order to thwart the IRS’s collection efforts. Armendariz failed to file a tax return for tax year 2009 for himself and his wife, thereby failing to report more than $211,000 in gross income.
U.S. District Judge Kathleen Cardone of the Western District of Texas set sentencing for both defendants on Oct. 13. Allen faces a statutory maximum sentence of five years in prison and a maximum fine of $250,000. Armendariz faces a statutory maximum sentence of one year in prison and a maximum fine of $100,000.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Durbin commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney Sean Beaty of the Tax Division and Assistant U.S. Attorney Donna Miller of the Western District of Texas, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Tax division’s website.