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Friday 5 August 2016
Salvadoran Man Pleads Guilty to Unlawfully Re-Entering the United StatesRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Manual Antonio Guerra-Nolasco, 36, of Canton Matelapa, El Salvador pled guilty today in U.S. District Court to unlawfully re-entering the United States after having been removed from the country.
According to court records, on May 30, 2016, Guerra-Nolasco was arrested after a traffic stop in Orrington, Maine when a Penobscot Count Deputy Sherriff learned that the pick-up truck he was driving was not registered and that his California driver’s license had been issued in the name of another person. Immigration records revealed that Guerra-Nolasco had been removed from the United States on August 20, 2007.
Guerra-Nolasco faces up to two years in prison and a $250,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Department of Homeland Security’s U.S. Border Patrol.
O'Fallon, Missouri Couple Indicted on Bankruptcy Fraud ChargesRead the Press Release
St. Louis, MO – David and Mung Nguyen were indicted on charges involving a bankruptcy scheme and concealing assets.
According to the indictment, David and Mung Nguyen filed for bankruptcy in March 2015. In preparation for the bankruptcy filing, they purchased valuable household goods and furnishings, apparel, handbags and jewelry, and made over $25,000 in credit card cash withdrawals. The indictment states that they failed to list at least $100,000 of these items as assets on the bankruptcy petition. Additionally, after filing the petition for bankruptcy, David Nguyen filed a claim with AAA auto insurance company for damage caused to his 2011 Mercedes, and received payment for the damage. He failed to notify the trustee that he received the payment, and he did not use the money to have the car repaired.
David Nguyen and Mung Nguyen, both of O’Fallon, MO, were indicted by a federal grand jury on July 27 on one felony count each of bankruptcy fraud, making false statements in bankruptcy and concealment of bankruptcy assets. They are expected to appear in federal court this afternoon.
If convicted, each count of the indictment carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
New York City Man Sentenced to 33 Months in Federal Prison for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on August 2, 2016, David Johnson, 24, of New York City was sentenced to 33 months in federal prison after his guilty plea to charges that he possessed with intent to distribute heroin. U.S. District Court Judge J. Garvan Murtha also ordered that Johnson serve three years of supervised release after his prison term.
According to court records, in the Spring of 2015, the Drug Enforcement Agency (DEA) in Vermont was investigating the distribution of heroin trafficked to Vermont from the New York City area. On June 5, 2015, DEA received information that a load of heroin was being transported to Vermont via automobile. Working with DEA, the South Burlington Police Department ultimately stopped a vehicle in which Johnson was a passenger. Law enforcement officers seized approximately $4,000 in cash from Johnson’s backpack and approximately 4,000 bags of heroin from the vehicle.
For his crime, Johnson faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Johnson serve between 46 and 57 months. The United States asked Judge Murtha to impose a sentence within that range. Johnson requested a sentence of less than 15 months.
In determining that a 33-month overall sentence was appropriate, Judge Murtha considered Johnson’s relatively minimal criminal history, among other factors.
United States Attorney Eric Miller commended the efforts of DEA, the South Burlington Police Department and the other law enforcement agencies involved in this investigation. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Johnson is represented by Mark Kaplan from the Burlington law firm of Kaplan and Kaplan.
Miami-Dade Resident Sentenced to More than 3 Years in Prison for Using Names and Credit Card Numbers of Other Individuals to Steal $14,610Read the Press Release
A Miami-Dade County resident was sentenced to 39 months in prison, to be followed by three years of supervised release, for using the names and credit card numbers of other individuals to steal $14,610.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Leo Philippe Altenor, 26, of Miami Dade-County, previously pled guilty to one count of using one or more unauthorized access devices, in violation of Title 18, United States Code, Sections 1029(a)(2) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. As part of his plea agreement, Altenor agreed to pay restitution in the amount of $14,610.
According to court documents, this case is part of an investigation into recent fraudulent activity against a federally insured bank. Since June 2015, individuals have stolen over one million dollars from the bank’s accounts in the Southern District of Florida. To accomplish this, individuals use the personal identifying information of victims to take over their bank accounts, and use fraudulent means to obtain the credit cards that are linked to the accounts. The individuals involved in this scheme then utilize ATM machines to withdraw money from the victims' bank accounts using the credit card numbers.
From June to October 2015, Altenor was identified as fraudulently withdrawing over $14,610 from multiple victims’ bank accounts.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Aventura Police Department. The case was prosecuted by Assistant U.S. Attorney Brooke Watson.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
McAllen Medical Clinic Operator Pleads Guilty in Pill Mill CaseRead the Press Release
DALLAS — Muhammad Faridi, 40, the former owner of the McAllen Medical Clinic, appeared this afternoon before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to a conspiracy charge stemming from his involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Faridi pleaded guilty to a superseding information charging one count of conspiracy to launder monetary instruments. He faces a maximum statutory penalty of 20 years in federal prison and a fine not to exceed $500,000, or twice the value of any property involved in the transaction. Faridi also agrees to forfeit approximately $20,182 in funds seized by the Drug Enforcement Administration. A sentencing date was not set.
According to plea documents filed in his case, beginning in January 2013 and continuing through July 2014, Faridi, who is not a physician, and his co-conspirators, including Dr. Richard Andrews and Ndufola Kigham, a pharmacist, distributed and caused to be distributed at least 150,000 30mg oxycodone pills through the McAllen Medical Clinic in Dallas that he operated with Dr. Andrews. The prescriptions were issued under the name and DEA registration number of co-conspirator Dr. Andrews, the supervising physician at the McAllen Medical Clinic. Faridi knew that none of the prescriptions for the 30mg oxycodone had been issued for a legitimate medical purpose by a medical practitioner.
Faridi and his co-conspirators, including Dr. Andrews, conspired to conduct financial transactions with the proceeds of this drug-trafficking to conceal and disguise the nature, location, source, ownership, or control of those proceeds.
In February 2015, a federal grand jury in Dallas indicted 23 individuals on offenses related to their participation in the prescription drug distribution conspiracy. That indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic, to obtain prescriptions to fill those prescriptions at designated pharmacies.
Superseding indictments were returned in December 2015 and in January 2016, and now, a total of 31 individuals have been charged. Many of those defendants have pleaded guilty and are awaiting sentencing. Seven have been sentenced, including two who were sentenced today by Judge Fitzwater: Lashavia Syneice Denson, a/a ‘Shae Denson” and “Shay Denson,” 27, of Houston, and Angela Moore Booth, 49, of Lafayette, Louisiana, were sentenced to 30 months and 41 months, respectfully. There may be additional guilty pleas in the coming weeks; trial for the remainder of the defendants is set for October 24, 2016.
After their arrests in January 2016, Dr. Richard Andrews and Kigham, along with another defendant, pharmacist Kumi Frimpong, were ordered to surrender their DEA registration numbers, preventing Dr. Andrews from issuing prescriptions for controlled substances and Kigham and Frimpong from dispensing controlled substances. Kigham also surrendered her stock of controlled substances that she had at her pharmacy to DEA.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation is being conducted by the Drug Enforcement Administration, with assistance from the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation and the Diplomatic Security Service.
Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
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Man from Second Mesa Sentenced to 14 Years for Violent AssaultRead the Press Release
PHOENIX – This week, Johnathan Quavehema, 23, of Second Mesa, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 14 years of imprisonment. Quavehema had previously pleaded guilty to assault with intent to commit murder.
In October 2015, Quavehema, who is a member of the Hopi Tribe, violently assaulted a female member of the Hopi Community. During the assault, Quavehema restrained the victim from leaving her home and threatened to kill her.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs-Office of Justice Services (Hopi Agency). The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-16-8003-PCT-DJH
RELEASE NUMBER: 2016-059_Quavehema
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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.
Major Cyber-Criminal Extradited from Czech Republic to Face Charges in AtlantaRead the Press Release
ATLANTA - Evgeny Tarasovich Levitskyy, a/k/a Vinchenco, a/k/a Vinch, a/k/a M.U.R.D.E.R.E.R., 31, of Nikolaev, Ukraine, was arraigned today before Catherine M. Salinas, United States Magistrate Judge, on federal charges of conspiracy to commit bank fraud, bank fraud, conspiracy to commit wire fraud, and wire fraud. Levitskyy was indicted by a federal grand jury on October 13, 2015.
“In just one day in 2008, an American credit card processor was hacked in perhaps one of the most sophisticated and organized computer fraud attacks ever conducted. A team of hackers and cashers, stationed in 280 cities around the world, stole over $9 million dollars in 12 hours from 2100 ATMs worldwide,” said U. S. Attorney John Horn. “Our pursuit of the perpetrators of this international scheme has continued for over seven years and demonstrates that we will persevere in seeking justice for international cyber- criminals for as long as it takes.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The arrest and extradition of Evgeny Levitskyy is the result of a multi-national effort led by the FBI, clearly showing the benefits of global cooperation among US and international law enforcement. It demonstrates the FBI’s long-term commitment to identifying and pursuing cyber-criminals world-wide, and serves as a strong deterrent to others targeting America’s financial institutions and citizens. This arrest and extradition also highlights the benefits of forward-deploying FBI cyber special agents to foreign countries, who forge and maintain key relationships to facilitate opportunities such as this. We must continue to impose real costs on criminals who believe they are far enough away to hack into US companies to steal money or intellectual property without consequences. Levitskyy’s arrest and extradition removes a cashing leader from the resources available to the cyber-criminal underground, thereby deteriorating the capabilities of cyber-criminal groups seeking to monetize cyber-attacks.”
Michael Breslin, Special Agent in Charge of the United States Secret Service's Criminal Investigative Division, stated: “Based on our longstanding role in transnational cyber investigations and network intrusions, the Secret Service worked in conjunction with our law enforcement partners to provide critical evidence to further this investigation. Our partnerships in law enforcement, the private sector, and academia are our greatest resources in combatting these sophisticated and complex crimes and today’s arraignment is proof that our strong commitment endures across all borders.”
According to United States Attorney Horn, the charges and other information presented in court: During November 2008, a team of hackers, including Estonian national Sergei Tšurikov and others, obtained unauthorized access into the computer network of RBS WorldPay, what was then the U.S. payment processing division of the Royal Bank of Scotland Group PLC, located in Atlanta, Ga. The group used sophisticated hacking techniques to compromise the data encryption that was used by RBS WorldPay to protect customer data on payroll debit cards. Payroll debit cards are used by various companies to pay their employees. By using a payroll debit card, employees are able to withdraw their regular salaries from an ATM.
Once the encryption on the card processing system was compromised, the hacking ring raised the account limits on compromised accounts to amounts exceeding $1,000,000. The hackers then provided a network of cashers with 44 counterfeit payroll debit cards, which were used to withdraw more than $9 million from over 2,100 ATMs in at least 280 cities worldwide, including cities in the United States, Russia, Ukraine, Estonia, Italy, Hong Kong, Japan, and Canada. The $9 million loss occurred within a span of less than 12 hours.
The hackers then sought to destroy data stored on the card processing network in order to conceal their hacking activity. The cashers were allowed to keep 30 to 50 percent of the stolen funds, but transmitted the bulk of those funds back to Tšurikov and his co-defendants. Upon discovering the unauthorized activity, RBS WorldPay immediately reported the breach, and has substantially assisted in the investigation.
Throughout the duration of the cash out, Tšurikov and another hacker monitored the fraudulent ATM withdrawals in real-time from within the computer systems of RBS WorldPay.
Levitskyy, a Ukrainian national, is alleged to have been responsible for cashing out nearly $500,000 associated with a single hacked debit card number.
The charges in this case carry a maximum sentence of 30 years in prison and a fine of up to $1,000,000 on each count. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
To date, the U.S. Attorney’s Office for the Northern District of Georgia has charged 14 individuals involved in the hack and cash out, including Russian nationals Viktor Pleshchuk, Evgeniy Anikin, and Roman Seleznev; Estonian nationals Sergei Tsurikov, Igor Grudijev, Ronald Tsoi, Eveilyn Tsoi, and Mikhail Jevgenov; Moldovan national Oleg Covelin; Ukrainian nationals Vladimir Valeyrich Tailar and Evgeny Levitskyy; Nigerian national Ezenwa Chukukere; American national Sonya Martin; and Vladislav Horohorin, who is citizen of Russia, Israel, and Ukraine.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and United States Secret Service.
Assistant United States Attorneys Lawrence R. Sommerfeld and Kamal Ghali are prosecuting the case. Assistance was provided by the Justice Department’s Office of International Affairs, the Criminal Division’s Computer Crime and Intellectual Property Section, the Republic of Slovenia’s Ministry of Interior Criminal Police Directorate (“MNZ”), and the Czech Republic’s Policie Ceske Republiky (“PCR”).
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Los Angeles Man Convicted in Federal Court of Distribution of Crack CocaineRead the Press Release
LOS ANGELES – A federal jury has returned guilty verdicts against a Los Angeles burger stand owner who distributed cocaine base in the form of crack cocaine.
Brian Sawyers, 57, of Los Angeles, was found guilty yesterday of two felony offenses of distribution of cocaine base in the form of crack cocaine after selling crack cocaine to a confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
According to the evidence presented at the three-day trial, in two separate instances, Sawyers sold 26.9 grams and 70.6 grams of crack cocaine to a ATF confidential informant at his business, B.D. Burgers, in South Los Angeles. In the first transaction, on February 8, 2012, following a series of recorded phone calls in which the informant and defendant discussed the purchase of crack cocaine, Sawyers met the informant at the burger stand, and sold the informant approximately one ounce of crack cocaine for $700. On March 1, 2012, law enforcement officers and the informant conducted a second operation during which the informant went to the burger stand, where he met Sawyers. They then went to Sawyers’ home, where Sawyers sold approximately two-and-a-half ounces of crack cocaine to the informant for $1,700.
“Narcotics trafficking poses a serious threat to the health and safety of our local communities,” said United States Attorney Eileen M. Decker. “Mr. Sawyers chose to conduct his sales of crack cocaine despite having been previously convicted of a federal narcotics offense. As a result of his misguided choices, he shall now be facing a lengthy prison sentence.”
The jury convicted Sawyers after a three-day trial before United States District Judge Ronald S. W. Lew in United States District Court.
After the jury returned its verdicts, Judge Lew scheduled a sentencing hearing on November 1. Sawyers currently faces a five-year mandatory minimum sentence but, at sentencing, he could face a ten-year mandatory minimum sentence due to his prior drug trafficking conviction. Sawyers faces a statutory maximum sentence of life in federal prison.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Los Angeles Police Department, and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys Anil J. Antony and Ann C. Kim.
Local Woman Sentenced to Prison for Social Security FraudRead the Press Release
PENSACOLA, FLORIDA – Tanga J. Tarnower, 73, of Navarre, Florida, was sentenced yesterday to 12 months and 1 day in prison and ordered to pay $132,957.70 in restitution to the Social Security Administration after pleading guilty in April 2016 to theft of government money. The sentence was announced today by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Between approximately 1997 and 2014, Tarnower stole Social Security benefits that were being paid in the name of her deceased mother, whose benefits were directly deposited into a joint account they held. When the Social Security Administration was unable to contact Tarnower’s mother, Tarnower was asked to confirm whether her mother was still alive. Tarnower submitted a counterfeit death certificate fraudulently claiming her mother died in January 2014 to hide the fact she had taken and used her deceased mother’s benefits, when in fact, her mother had died in the mid-1990s.
This case resulted from an investigation by the Social Security Administration-Office of Inspector General. Assistant United States Attorney Alicia H. Kim prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Lead Defendant in Methamphetamine Distribution Conspiracy Sentenced to 35 Years in Federal PrisonRead the Press Release
FORT WORTH, Texas — Cleto Tarin, 53, most recently of the Dallas-Fort Worth area, was sentenced today by U.S. District Judge John McBryde to 420 months in federal prison, following his conviction at trial earlier this year on one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Co-conspirator Hector Saldivar, 33, of Wichita Falls, Texas, was convicted on the same offense at trial with Tarin, and is scheduled to be sentenced on September 2, 2016. He faces a statutory penalty of not less than five years or more than 40 years and up to a $5 million fine.
All 14 defendants in the conspiracy, which Tarin led, have been convicted.
Three defendants pleaded guilty to one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. Miguel Antonio Martinez, 32, was sentenced to 232 months and Bobbie Frie, Jr., 31, was sentenced to 340 months. Defendant Marcus Caldwell, 32, is awaiting sentencing; he faces a statutory penalty of not less than five years or more than 40 years and up to a $5 million fine.
Seven defendants pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. David Sheppard, 40, was sentenced to 235 months; Kendra Ward, 28, was sentenced to 220 months; Eric Overstreet, 28, was sentenced to 240 months; and Jonathan Morris, 31, was sentenced to 180 months. Three defendants who pleaded guilty to that offense, Robert Baggott, 45, Cecil Hindman, 51, and Oscar Melanson, 31, are awaiting sentencing; they each face a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
Two defendants, Susan Williams, 29, and Raymondo Acuna, 32, each pleaded guilty to one substantive count of possession with intent to distribute methamphetamine, as charged in superseding informations. Acuna was sentenced today to 200 months in federal prison. Williams is awaiting sentencing and faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wichita Falls Police Department conducted the investigation.
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Lawton Man Sentenced to Two Years in Prison for Using Internet to Send Obscene Communications to a MinorRead the Press Release
Oklahoma City, Oklahoma – CHARLES MICHAEL SEGALOFF (a/k/a "Michael Makai,” "Mike Sage,” "Daddy,” "Papa," and "Master"), age 60, of Lawton, Oklahoma was sentenced yesterday to twenty-four months in federal prison (the statutory maximum prison term allowable for the offense) for sending offensive material to an individual under 18 years of age, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
According to a superseding information, filed on March 31, 2016, Segaloff knowingly used an interactive computer service (Facebook) from January 19, 2015, to December 15, 2015, to send obscene interstate communications to a person under 18 years of age. Specifically, Segaloff sent messages to the victim requesting, suggesting, and proposing that she engage in a sexual, polyamorous, and Bondage, Discipline/Domination, Sadism/Submission, and Masochism (BDSM) relationship in which she would be a submissive and he would be the dominant.
According to the original indictment filed on January 19, 2016, from December 7, 2015, through December 15, 2015, Segaloff traveled from Lawton, Oklahoma, to Greenwich, New York, and returned to Lawton with this female juvenile for the purpose of engaging in illicit sexual conduct and to form a polyamorous family.
On April 1, 2016, Segaloff pled guilty to the superseding information. He stipulated in a plea agreement that he will be required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA). Segaloff further stipulated that his conduct violated Oklahoma law in that he facilitated, encouraged, offered, and solicited sexual conduct with the minor by use of technology, a violation which subjects him to having to register as a sex offender in the State of Oklahoma.
According to an affidavit accompanying a complaint, Segaloff was previously convicted in the State of Washington for second-degree assault with sexual motivation. The affidavit also stated that Segaloff has published a number of books on BDSM under the alias "Michael Makai" and according to a profile on Amazon.com is "a lifestyle Dominant for 37 years, a behind-the-scenes mentor and educator on BDSM and D/s for decades, and has been active in dozens of fetish lifestyle organizations in Europe and the U.S."
On August 4, 2016, Chief District Judge Joe Heaton sentenced Segaloff to the statutory maximum: 24 months in prison and one year of supervised release. He has been in federal custody since December 22, 2015.
This case is the result of an investigation by the Federal Bureau of Investigation, the Lawton Police Department, and the New York State Police. The case is being prosecuted by Assistant U.S. Attorneys Nicholas J. Patterson and Matthew B. Dillon and Special Assistant U.S. Attorney Mark Stoneman.
Reference is made to public filings for further information.
Jury Finds Hartford Man Guilty of MurderRead the Press Release
United States Attorney Deirdre M. Daly and Chief State’s Attorney Kevin T. Kane today announced that a federal jury in New Haven has found KARL ROYE, also known as “Eagle,” 25, of Hartford, guilty of committing the murder of Anthony Parker of Hartford in April 2011. Yesterday, after a week-long trial before U.S. District Judge Janet Bond Arterton, ROYE was convicted of one count of conspiracy to commit a Violent Crime in Aid of Racketeering and one count of committing a Violent Crime in Aid of Racketeering.
Judge Arterton scheduled sentencing for October 27, 2016, at which time ROYE faces a mandatory life term of imprisonment.
“The U.S. Attorney’s Office is committed to prosecuting dangerous offenders and reducing violent crime in our cities,” said U.S. Attorney Daly. “We know that shootings and murders in our cities are committed by a very small number of city residents. This murder, like so many that we have seen before, was the result of a conflict and perceived threat between members of rival groups. We will continue to focus our attention on these groups until the shootings and murders stop. I commend the FBI Task Force, DEA and Hartford Police Department for their excellent investigative work in bringing to justice those responsible for this murder. I also want to thank our partners in the Chief State’s Attorney’s Office for their unceasing efforts in solving this and many other cold case murders.”
“This case again demonstrates that the dedication of the U.S. Attorney’s Office, FBI, DEA, Hartford Police Department and the Cold Case Bureau of the Chief State’s Attorney’s Office can bring some measure of satisfaction to families who have suffered so grievously at the hands of violent criminals,” said Chief State’s Attorney Kane. “I want to thank federal authorities for their continuing efforts in combating the violence that plagues our most vulnerable citizens.”
This matter stems from a long-term investigation being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force, DEA and Hartford Police Department into narcotics trafficking by members and associates of the Westhell and Team Grease groups and group-related violent activity. The Cold Case Unit of the Office of the Chief State’s Attorney is actively participating in the investigation.
At approximately 10:47 a.m. on the morning of April 6, 2011, the Hartford Police Department received a report of shots fired in the vicinity of 15 Thomaston Street in the Blue Hills Section of Hartford. Officers responding to the scene located Anthony Parker, also known as “Smooth,” 24, seated in the driver’s seat of a vehicle in the driveway of 15 Thomaston Street. Parker was unconscious and suffering from multiple gunshot wounds. Parker was transported by ambulance to Saint Francis Hospital where he ultimately succumbed to his injuries and was pronounced deceased.
ROYE and Jimel Frank, also known as “30” and “Velly,” were members of the Wall Street group, which later became generally known as “Team Grease.” According to trial testimony and the evidence presented during the trial, ROYE and Frank, who were both armed with 9mm handguns, opened fire on Parker from opposite sides of the vehicle in which he was seated.
Frank pleaded guilty on November 12, 2015, and awaits sentencing.
The homicide of Anthony “Smooth” Parker was included in cold case playing cards sold to inmates in Connecticut’s state correctional facilities. Each card in the deck features a photograph and brief details about a homicide or missing person case and lists telephone, mail and e-mail contacts that inmates can use to supply information.
This investigation has been conducted by the FBI’s Northern Connecticut Violent Crimes Task Force, DEA, Hartford Police Department and Cold Case Unit of the Office of the Chief State’s Attorney. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by Assistant U.S. Attorney John H. Durham and Assistant State’s Attorney Andrew Reed Durham, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
Judge Sentences Philadelphia Man Who Used Twitter and Facebook for Bank Fraud and Identity TheftRead the Press Release
PHILADELPHIA - Aaron Dashawn Caple, 23, of Philadelphia, Pennsylvania, was sentenced today by United States District Judge Eduardo C. Robreno to 54 months in federal prison following Caple’s convictions of bank fraud and aggravated identity theft offenses, announced United States Attorney Zane David Memeger.
Caple pled guilty on April 13, 2016 and admitted to using social media services Twitter and Facebook to solicit persons to provide him with their bank ATM cards and PIN numbers so that he could deposit bad checks into their accounts and withdraw the funds before the banks and other financial institutions realized that the checks were bad. Caple went to numerous ATM machines in Philadelphia and the surrounding area to make the deposits and withdrawals, and also used the ATM cards and PIN numbers at various stores, including Walmart, to purchase goods and obtain cash back prior to the banks discovering that the checks were bad. Caple received more than $47,000 as a result of the scheme. In addition to the prison term, he was ordered to pay restitution of $47,000.25 and must serve five years of supervised release.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Irving, Texas, Man Sentenced to 180 Months in Federal Prison for Producing Child PornographyRead the Press Release
DALLAS — Darryn Webb, 20, of Irving, Texas, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 180 months in federal prison, following his guilty plea in February 2016 to an indictment charging one count of production of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Webb has been in custody since late September 2015 after his arrest on a related federal criminal complaint.
According to documents filed in the case, on approximately March 23, 2015, Webb persuaded Jane Doe, who at the time was five-years-old, to engage in sexually explicit conduct so that he could photograph her. Webb used a Nikon Cool Pix L30 Camera to produce these images of child pornography at his residence.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The FBI’s Dallas Child Exploitation Task Force conducted the investigation. Assistant U.S. Attorney Cara Pierce prosecuted the case.
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Indictment Charges New Jersey Man in Center City Philadelphia Bank RobberiesRead the Press Release
Steven Rice, 41, of Barrington, NJ, was charged by Indictment, filed August 4, 2016, with four counts of bank robbery, announced United States Attorney Zane David Memeger. The indictment specifically charges that Rice robbed or attempting to rob: (i) the Beneficial Bank, 1600 Chestnut Street, Philadelphia, PA on July 27, 2015; (ii) the Republic Bank, 1601 Walnut Street, Philadelphia, PA, on October 7, 2015; (iii) the Firstrust Bank, 1515 Market Street, Philadelphia, PA on March 18, 2016; and (iv) the Wells Fargo Bank, 2005 Market Street, Philadelphia, PA, on June 30, 2016.
If convicted, Rice faces a maximum possible sentence of 80 years imprisonment.
The case was investigated by the Federal Bureau of Investigation and Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Paul G. Shapiro.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Government dismisses charges against sheriffRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that the U.S. Attorney’s Office has filed a motion to dismiss the pending indictment in United States v. Larry C. Deen and Clifton and Clinton Blakey, a former sheriff and used car dealers. The defendants were indicted for criminal conspiracy and federal program theft. United States District Judge Elizabeth E. Foote will rule on the motion.
The trial date was set for August 15, 2016. On June 16, 2016, as the Government was preparing for the trial, a key Government witness died unexpectedly. The Government reassessed the remaining admissible evidence in the case and made a determination that there was sufficient proof to proceed to trial. However, on August 4, 2016, a second key Government witness retracted previous statements made during the course of the investigation. In light of the witness developments, the Government believes that its ability to prove its case beyond a reasonable doubt has been seriously jeopardized.
United States Attorney Stephanie Finley stated: “I have authorized the prosecutors in this case to seek dismissal of the pending charges based on evidentiary developments in this case. The untimely death of a significant government witness and the change of testimony by a second witness has called into question our ability to prove this case beyond a reasonable doubt. I am mindful of our obligation to continually assess the evidence in our possession in light of our burden of proof, and to ensure that the interests of justice are met.”
Former Weymouth Woman Indicted for Bank Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A former Weymouth woman was charged yesterday in U.S. District Court in Boston in connection with a scheme to withdraw cash from bank accounts.
Sophiah Acloque, 33, was indicted on three counts of bank fraud, three counts of aggravated identity theft and one count of theft of public mail. In June 2016, Acloque was charged by criminal complaint.
According to court documents, in December 2015, Bank of America contacted federal investigators after detecting a fraudulent debit card scheme. It is alleged that an individual(s) posed as bank customers living in Massachusetts and called Bank of America to request that new debit cards and PIN numbers be mailed to the residence of the account holder. It is also alleged that the newly issued cards were stolen from the mail and used to withdraw cash unbeknownst to the bank customers.
On Jan. 25, 2016, law enforcement identified Acloque as a participant in the debit card scheme when she was observed taking mail from the mail box of a Cambridge resident. The resident had not ordered a new card but had been advised by Bank of America that one had been ordered and was expected to arrive around January 25. A subsequent search of Acloque’s car revealed mail addressed to the Cambridge resident, including a Bank of America envelope containing an ATM card and a second envelope containing a PIN.
The indictment charges Acloque with the fraudulent use of Bank of America ATM cards to withdraw cash belonging to three account holders residing in Cambridge, Stoughton and Milton and with stealing mail, including an ATM card and PIN number, from the mail box of the Cambridge resident mentioned above.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release and a fine of $1 million. The charge of aggravated identity theft provides a mandatory sentence of two years in prison. The charge of theft of public mail provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service made the announcement. The case is being prosecuted by Assistant U.S. Attorney Giselle J. Joffre of Ortiz’s Major Crimes Unit.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Former Opa Locka City Officials Charged in Corruption SchemeRead the Press Release
Former Opa Locka City Manager David Chiverton and former Opa Locka Assistant Public Works Director Gregory Harris have been charged for their participation in a two-year long bribery and extortion under color of official right conspiracy, in violation of Title 18, United States Code, Sections 371, 666(a)(1)(B), and 1951(a).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Chiverton is charged by Information with conspiring with an unnamed Opa Locka elected official (“Public Official A”), former Opa Locka Assistant Public Works Director Gregory Harris, and others to use their official positions and authority with the City of Opa Locka to solicit, demand, and obtain thousands of dollars in illegal cash payments from businesses and individuals in exchange for taking official actions to assist and benefit those businesses and individuals in their dealings with the City of Opa Locka. The case against Chiverton is assigned to United States District Judge Cecilia M. Altonaga, Case No. 16-20596-CR. Chiverton is scheduled for an initial appearance before United States Judge John J. O’Sullivan on August 8, 2016 at 1:30 p.m.
As alleged in the Information, in exchange for the illegal payments, Public Official A would direct Chiverton, Harris, and other City of Opa Locka employees to assist the paying businesses and individuals by issuing occupational licenses; waiving, removing, and settling code enforcement matters and liens; initiating, restoring and continuing water service; and assisting with zoning issues. Public Official A would pay Chiverton, and also would tell the businesses and individuals to pay Chiverton directly in exchange for these official actions. Chiverton is also alleged to have directly and indirectly solicited and obtained illegal cash payments in exchange for official actions assisting businesses and individuals with the same types of issues as described above.
Earlier today, former Opa Locka Assistant Public Works Director Gregory Harris made his initial appearance on a separate Information. The case against Harris is assigned to United States District Judge Beth Bloom, Case No. 16-20589-CR.
In that separate Information, Harris is alleged to have participated in the Public Works Department aspects of the broader conspiracy set out in the Information filed against Chiverton. In particular, the Information filed against Harris alleges that both Public Official A and Chiverton would direct Harris to take actions such as restoring water service to businesses which had paid them illegal bribes. The Information alleges that Harris also obtained illegal payments in exchange for using his official position to assist those businesses and individuals by taking official actions including stopping the shutdown of water service, and directing that their water service be turned back on.
If convicted, Chiverton and Harris each face a maximum statutory sentence of five years’ imprisonment, a fine of $250,000 and three years of supervised release.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force This case is being prosecuted by Senior Litigation Counsel Edward Stamm.
An Information is merely an allegation and every defendant is presumed innocent unless and until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
Former L.A. County Sheriff Lee Baca Indicted by Federal Grand Jury on Three CountsRead the Press Release
LOS ANGELES – A federal grand jury today indicted former Los Angeles County Sheriff Lee Baca on federal charges alleging that he conspired to obstruct justice, obstructed justice, and lied to the federal government.
The case against Baca is the result of an investigation by the Federal Bureau of Investigation, and is one in a series of cases resulting from an investigation into corruption and civil rights abuses at county jail facilities in downtown Los Angeles. As a result of the investigation, 20 current or former members of the Los Angeles Sheriff’s Department were convicted of federal charges.
Baca, 74, of San Marino, California, was charged today in a three-count superseding indictment, with one count of conspiracy to obstruct a federal grand jury investigation, one count of obstruction of justice, and one count of making false statements.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The conspiracy charge carries a maximum term of five years in prison, the obstruction of justice carries a maximum term of 10 years in prison and the charge of making a false statement carries a maximum term of five years in prison. If convicted on all counts, the total maximum Baca faces is 20 years in federal prison.
Baca is expected to be arraigned on the superseding indictment at a later date in United States District Court in Los Angeles.
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Brandon Fox, Chief of the Public Corruption and Civil Rights Section; Assistant United States Attorney Lizabeth A. Rhodes, Chief of the General Crimes Section; and Assistant United States Attorney Eddie A. Jauregui of the General Crimes Section.
Former Homer, Louisiana, Police Officer Pleads Guilty to Civil Rights ViolationRead the Press Release
Former Officer Willie Fred Knowles, 66, of the Homer, Louisiana, Police Department pleaded guilty today to violating the civil rights of a woman identified only as K.M., announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. Knowles also pleaded guilty to making false statements about the incident to the FBI.
According to the plea agreement, Knowles admitted that, on Oct. 29, 2012, he got into a verbal argument with K.M., who was not under arrest at the time, while he was on duty. He further admitted that during the argument, he pushed her down and struck her face and body without justification. Knowles also admitted that he falsely told FBI agents that the woman started the incident by grabbing him and jumping on his back, and that he never hit her. However, Knowles acknowledged that, in fact, he had started the physical altercation when he pushed the woman down and struck her.
“Without any legitimate reason or cause, this officer chose to use violent force against the victim and then lie to try to cover up his crime,” said Principal Deputy Assistant Attorney General Gupta. “Whenever law enforcements officers break the law they take an oath to uphold, they violate the public trust and threaten the reputation of their colleagues who wear the badge and perform their jobs with honor and distinction.”
“This officer’s actions tarnish the reputations and standards upheld by thousands who work in law enforcement across our nation,” said U.S. Attorney Finley. “Our office will continue to make civil rights cases a priority.”
Knowles will be sentenced on Nov. 9, 2016. At sentencing, Knowles faces a maximum sentence of five years in jail for making false statements to the FBI and one year in prison for the civil rights charge.
This case was investigated by the FBI. The case was referred to the FBI by the Louisiana State Police. The case is being prosecuted by Trial Attorney Christine M. Siscaretti of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Mary J. Mudrick of the Western District of Louisiana.
Former Homer police officer pleads guilty to civil rights violationsRead the Press Release
SHREVEPORT, La. – Former Officer Willie Fred Knowles, 66, of the Homer Police Department pleaded guilty today to violating the civil rights of a woman identified only as K.M., announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. Knowles also pleaded guilty to making false statements about the incident to the FBI.
According to the plea agreement, Knowles admitted that, on October 29, 2012, he got into a verbal argument with K.M., who was not under arrest at the time, while he was on duty. He further admitted that during the argument, he pushed her down and struck her face and body without justification. Knowles also admitted that he falsely told FBI agents that the woman started the incident by grabbing him and jumping on his back, and that he never hit her. However, Knowles acknowledged that, in fact, he had started the physical altercation when he pushed the woman down and struck her.
“Without any legitimate reason or cause, this officer chose to use violent force against the victim and then lie to try to cover up his crime,” said Principal Deputy Assistant Attorney General Gupta. “Whenever law enforcements officers break the law they take an oath to uphold, they violate the public trust and threaten the reputation of their colleagues who wear the badge and perform their jobs with honor and distinction.”
“This officer’s actions tarnish the reputations and standards upheld by thousands who work in law enforcement across our nation,” said U.S. Attorney Finley. “Our office will continue to make civil rights cases a priority.”
Knowles will be sentenced on Nov. 9, 2016. At sentencing, Knowles faces a maximum sentence of five years in jail for making false statements to the FBI and one year in prison for the civil rights charge.
This case was investigated by the FBI. The case was referred to the FBI by the Louisiana State Police. The case is being prosecuted by Trial Attorney Christine M. Siscaretti of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Mary J. Mudrick of the Western District of Louisiana.
Former Fairfield PD Custodian Arrested on Federal Firearms ChargesRead the Press Release
BIRMINGHAM – Federal agents on Thursday arrested a former Fairfield Police Department custodian on federal firearms charges returned by a grand jury on July 26, announced U.S. Attorney Joyce White Vance and Alcohol, Tobacco, Firearms and Explosives Assistant Special Agent in Charge David Hyche.
A two-count federal indictment charges ROY ELLIS HUNTER, 70, of Fairfield, as a convicted felon in illegal possession of nearly 50 firearms, mostly handguns. The federal indictment was unsealed following his arrest Thursday. Hunter was arraigned today before a federal magistrate judge and released on bond. He was arrested on state firearms charges in July 2015 following a joint ATF and Alabama Law Enforcement Agency raid at his home. Hunter was working as the police department custodian in Fairfield at the time. He was released on a state bond pending those charges.
“Taking a convicted felon in control of a cache of firearms off the streets is the kind of law enforcement work that greatly reduces the threat of violence in our communities,” Vance said. “We should all appreciate the collaborative work of ATF and ALEA agents in investigating this case and bringing it forward for prosecution.”
“Putting a stop to this flow of confiscated firearms into the community, no doubt, has had an effect on crime in the area,” Hyche said. “Firearms that had been used in crimes and recovered by police getting back into the hands of a convicted felon who was selling them had to be stopped as fast as possible. Stolen firearms in the hands of violent criminals are an enormous problem for us in Alabama and nationally, so we aggressively work these cases with our law enforcement partners,” he said.
According to the indictment, Hunter was convicted on federal racketeering and cocaine distribution charges in 1984 and on federal counterfeiting charges in 1983. Count one of the indictment charges Hunter with being a convicted felon in possession of four handguns on June 4, 2015. Count two charges him as a convicted felon in possession of 42 firearms – 39 handguns, one rifle, one shotgun and a trigger group – on July 8, 2015.
The indictment seeks to have Hunter forfeit those 46 firearms, plus five others, to the government.
The maximum penalty for the charge of felon in possession of a firearm is 10 years in prison and a $250,000 fine.
ATF investigated the case, which Assistant U.S. Attorney Michael A. Royster is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty
Former FBI Assistant Special Agent in Charge Sentenced for Perjury and Obstruction of Justice During Bulger TrialRead the Press Release
BOSTON – A former Assistant Special Agent in Charge (ASAC) of the FBI’s Boston Office was sentenced today in U.S. District Court in Boston in connection with perjury and obstruction of justice regarding his testimony at the 2013 trial of James “Whitey” Bulger.
Robert Fitzpatrick, 76, of Charlestown, R.I., was sentenced by U.S. District Court Judge F. Dennis Saylor, IV to 24 months of probation and a fine of $12,500. In May 2016, Fitzpatrick pleaded guilty to six counts of perjury and six counts of obstruction of justice.
Fitzpatrick, in his capacity as ASAC of the Boston Division, had overall supervisory responsibility of the organized crime program in Boston between 1981 and 1986—a time period in which Bulger, while an active FBI informant, was involved in eight murders.
Fitzpatrick, who is the author of Betrayal, Whitey Bulger and the FBI Agent Who Fought To Bring Him Down, was called to testify at the Bulger trial on July 29 and July 30, 2013. In pleading guilty, Fitzpatrick admitted that he lied when he testified at Bulger’s trial that he tried to end Bulger’s relationship with the FBI and target Bulger for prosecution but was overruled by higher authorities in the FBI.
Specifically, Fitzpatrick admitted that contrary to his sworn testimony at the Bulger trial:
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his assignment to Boston in 1980 as ASAC was not a special mission ordered by the Assistant Director of the FBI because there were problems in the office, but rather a routine reassignment;
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Bulger never said, “I’m not an informant” or otherwise denied being an informant when he met with Fitzpatrick;
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Fitzpatrick never tried to close Bulger as an FBI informant;
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Fitzpatrick was demoted from ASAC because he falsified official FBI reports in connection with a shooting incident, not because he reported corruption;
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Fitzpatrick did not arrest mob boss Gennaro Angiulo; and
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Fitzpatrick did not find or recover the rifle James Earl Ray used to assassinate Dr. Martin Luther King, Jr. at the Lorraine Motel in Memphis, TN in 1968.
United States Attorney Carmen M. Ortiz and Ronald G. Gardella, Special Agent in Charge of the Department of Justice, Office of Inspector General, New York Field Office, made the announcement today. This case was prosecuted by Assistant U.S. Attorneys Zachary R. Hafer and Fred M. Wyshak of Ortiz’s Public Corruption and Special Prosecutions Unit.
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Former Executive Director of Canadian County Charity for Children Pleads Guilty to EmbezzlementRead the Press Release
Oklahoma City, Oklahoma –TRACI LORRE OWENS, 47, of Edmond, Oklahoma, today entered a guilty plea to embezzlement from a Canadian County charity for child crime victims, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
According to the superseding information, Owens was the Interim Executive Director and then the Executive Director of Canadian County Court Appointed Special Advocates ("CASA") from about November 2010 until July 2013. Canadian County CASA is an organization that received at least $10,000 in federal monetary assistance annually from the United States Department of Justice to support child victims of crime. Owens was charged with making and depositing checks payable to herself and to cash, including duplicate payroll checks. Owens pleaded guilty to embezzling and stealing money from Canadian County CASA.
At sentencing, Owens faces a maximum penalty of ten years in prison, a fine of up to $250,000, and mandatory restitution. The United States also seeks forfeiture from Owens. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the Department of Justice, Office of Inspector General, with assistance from the Canadian County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys K. McKenzie Anderson and Scott E. Williams.
Reference is made to court filings for further information.
Florida Man Sentenced in New Mexico for Defrauding Social Security AdministrationRead the Press Release
ALBUQUERQUE – Joe Pat McFarlin, 68, of Fountain, Fla., pled guilty last week to social security fraud in federal court in Albuquerque, N.M. Immediately after entering his guilty plea, McFarlin was sentenced to five years of probation and ordered to pay $342,475.08 in restitution to the Social Security Administration (SSA) and U.S. Department of Veterans Affairs (VA).
McFarlin was charged by a felony information on Aug. 21, 2015, with defrauding the SSA. The information alleged that McFarlin failed to disclose the fact that he was gainfully employed to the SSA in order to obtain social security benefits to which he was not entitled. The information alleged that McFarlin committed the crime in Valencia County, N.M., in May 2012.
On July 26, 2016, McFarlin entered a guilty plea to the information, and admitted that in May 2012, he sent a work activity report to the SSA, which failed to disclose the fact that he was working for the Franken Oil Company and its subsidiary AB Tire Company. McFarlin admitted that he concealed the fact that he was being paid in order to increase the amount the SSA paid him in disability benefits.
In his plea agreement, McFarlin agreed to the entry of an order requiring him to pay $154,046.40 in restitution to the SSA. McFarlin also agreed to the entry of an order requiring him to pay $188,428.68 in restitution to the VA.
This case was investigated by the SSA, Office of the Inspector General and the VA, Office of the Inspector General. Assistant U.S. Attorney Paul Mysliwiec prosecuted the case.
Florida Man Pleads Guilty to Credit Card Fraud and Aggravated Identity TheftRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Ariel Perez-Calvo, 28, of Miami, Florida, pleaded guilty today in U.S. District Court to access device fraud and aggravated identity theft.
Court records show that between January 7 and January 13, 2016, Perez-Calvo and Roberto Lueje-Rodriguez used debit and credit card account numbers belonging to Maine bank customers located in Penobscot, Knox, Hancock, Piscataquis, Franklin, Somerset, Kennebec, and Androscoggin counties, to make unauthorized purchases totaling more than $50,000. The defendant engaged in similar conduct in Manchester and Concord, New Hampshire in November 2015 when he used debit and credit card account numbers belonging to New Hampshire bank customers to make unauthorized purchases totaling more than $1,000.
The name embossed on each fake card was “David Cuan,” which was not the name of any of the victims. Each fake card bore a unique account number and appeared to be an authentic debit or credit card, but their magnetic strips were encoded with the true account numbers of the victims.
The defendant faces up to 10 years in prison and a $250,000 fine for access device fraud and an additional mandatory minimum period of imprisonment of two years for the aggravated identity theft. He will also be ordered to pay full restitution. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
On July 8, 2016, Lueje-Rodriquez pleaded guilty to access device fraud and aggravated identity theft charges arising out of the same conduct and awaits sentencing.
The investigation was conducted by the Maine State Police; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Bangor, Brewer, Dexter, Dover-Foxcroft, Ellsworth, Hampden, Lincoln, Millinocket, Newport, Pittsfield, Rockland, Saco, Waterville (Maine) and Londonderry (New Hampshire) Police Departments.
Final Member of Colombian Burglary Crew Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – Neftali Perea-Zuniga, 30, a Colombian national, was sentenced today to 54 months in prison for his role in nearly 40 burglaries he committed in Virginia, Maryland, Tennessee, Kentucky, and Missouri from 2010 through 2013. Perea-Zuniga was also ordered to forfeit $790,436 and ordered to pay $630,336.36 in restitution to his victims. Perea-Zuniga will be deported after serving his prison sentence.
Perea-Zuniga was found guilty by U.S. District Judge Anthony J. Trenga after a bench trial on May 4. According to evidence introduced at trial and sentencing, Perea-Zuniga and three co-conspirators, each Colombian nationals who resided in Houston, Texas, traveled across the country to Maryland, Virginia, and other states where they committed burglaries. Perea-Zuniga and his co-conspirators, all of whom previously pleaded guilty, specifically targeted homes owned by small business owners in the area, under the assumption that those families would likely keep cash, gold, and other small valuables in their houses. Perea-Zuniga and his co-conspirators broke into these homes, disabled security devices, and ransacked the master bedrooms in search of cash and gold—much of it family heirlooms. When Perea-Zuniga was arrested, he and two co-conspirators were caught with approximately $60,000 in gold jewelry that had been taken from a residence in Loudoun County. In all, Perea-Zuniga and his co-conspirators stole over $790,000 worth of cash, gold, and small electronics. As a result of law enforcement efforts, some of the cash and jewelry, including a seizure by the Indiana State Police of a suspicious Fed Ex package, resulted in the seizure of over $105,000 in cash and jewelry, which was ultimately returned to the victims.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; J. Thomas Manger, Montgomery County Chief of Police; Chief Gary L. Gardner, Howard County Police Department; and Michael L. Chapman, Loudoun County Sheriff, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Kimberly R. Pedersen and Special Assistant U.S. Attorney Aleza Remis prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-CR-11.
Federal Jury Convicts Another Member of Gulf Coast Drug Trafficking RingRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the fourth conviction in a series of federal prosecutions aimed at a drug trafficking ring which operated in the Gulf Coast states. A federal jury has convicted KAREEM MCKINNON, age 25, of Crystal River, Florida, of conspiracy to distribute 500 grams or more of cocaine, in violation of Title 21, United States Code, Sections 846 and 2. The verdict, yesterday afternoon, followed a multi-day jury trial before Chief U.S. District Judge Brian A. Jackson. MCKINNON was remanded into custody following his conviction and is scheduled to be sentenced at 9:30 a.m. on November 17, 2016.
The evidence at trial established that, between January and March of 2015, MCKINNON and his co-conspirators made multiple trips to the Houston, Texas area, where they would obtain distribution-level quantities of cocaine. The co-conspirators would drive the cocaine back to Florida, where the cocaine would be distributed. MCKINNON and his co-conspirators would travel in a two-car caravan, with the cocaine being transported in one car and MCKINNON and other co-conspirators following behind in a separate car, in an effort to evade law enforcement and minimize the risk that all of the co-conspirators could be apprehended. On or about February 8, 2015, after one such trip to Houston, MCKINNON and his co-conspirators were arrested while driving through Baton Rouge, Louisiana, and found to be transporting more than 4 kilograms of cocaine.
MCKINNON’S conviction follows the convictions of three co-conspirators:
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Arthur William Armstrong, age 34, of Crystal River, Florida, pled guilty on October 21, 2015 to a bill of information charging him with conspiracy to possess with the intent to distribute 500 grams or more of cocaine;
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Lamechia Richburg, age 22, of Crystal River, Florida, pled guilty on December 2, 2015, to a bill of information charging her with conspiracy to possess with the intent to distribute cocaine; and
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Shelby Collazo, age 21, of Beverly Hills, Florida, pled guilty on December 4, 2015, to a bill of information charging her with conspiracy to possess with the intent to distribute cocaine.
A fifth individual, Kendall Lewis, age 26, of Crystal River, Florida, was named in an indictment returned by a federal grand jury on July 7, 2016, charging him with conspiracy to distribute 500 grams or more of cocaine. That case remains pending.
U.S. Attorney Green stated: “This jury verdict and today’s conviction is a strong reminder of my office’s commitment to fighting the drug trade and those who traffic cocaine for profit. I appreciate the hard work of the DEA, our dedicated state and local law enforcement partners, and our prosecutors, who are working hard to keep cocaine and other dangerous drugs out of our community.”
This matter was investigated by the United States Drug Enforcement Agency, with valuable assistance from the Baton Rouge Police Department and the Louisiana State Police. It is being prosecuted by Assistant United States Attorneys Adam Ptashkin and Robert Piedrahita.
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Dayton, KY Man Sentenced 20 Years for Distributing Child PornographyRead the Press Release
COVINGTON, Ky. – A Dayton, Ky., man has been sentenced to 20 years in federal prison for distributing child pornography.
On Wednesday, U.S. District Judge Amul Thapar formally sentenced Paul Morris, 40, and also ordered him to serve a lifetime of supervised release, upon his release from prison. Under federal law, Davis must serve at least 85 percent of his prison sentence.
At his guilty plea in March of this year, Morris admitted that he had uploaded videos and images that depicted minors engaged in sexually explicit conduct to an online messaging application, back in July of 2015.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and James M. Gibbons, Special Agent in Charge, Homeland Security Investigations (Chicago Field Division), jointly announced the sentence.
The investigation was conducted by HSI. Assistant United States Attorney Elaine K. Leonhard prosecuted this case on behalf of the federal government.
Columbia Man Sentenced to 20 Years in Prison for Distribution of Child PornographyRead the Press Release
Chad Allen Martin, 25, of Columbia, Tennessee, was sentenced yesterday by U.S. District Court Judge Aleta A. Trauger to serve 20 years in prison, followed by 20 additional years of supervised release, for possession and distribution of child pornography, announced David Rivera, United States Attorney for the Middle District of Tennessee. Martin pleaded guilty on April 7, 2016.
“The U.S. Attorney’s Office will always be a staunch advocate for innocent children who are victimized by sexual predators,” said U.S. Attorney David Rivera. “We will pursue these predators, prosecute them vigorously and seek their confinement for as long as the law allows.”
According to testimony at the plea hearing, in 2011 Martin was convicted in state court of attempted rape of a child, and served a three- year prison sentence. While on parole for that offense in March 2015, Martin was identified, during an investigation by the Internet Crimes Against Children Task Force, as being in possession of and distributing hundreds of computer files depicting minors engaged in sexually explicit conduct which were being shared from his laptop computer.
On March 20, 2015, a federal search warrant was executed at Martin’s residence in Columbia, Tennessee, where FBI Agents and Columbia Police Department officers found more than 1,000 images and 173 videos of prepubescent minors engaged in sexually explicit conduct on Martin’s laptop computer and an external hard drive. The images and videos seized included depictions of bestiality, bondage, and rape.
The case was investigated by the Winchester, Tennessee Police Department and the Federal Bureau of Investigation, with assistance from the Columbia, Tenn. Police Department. The case was prosecuted by Assistant United States Attorney Lee Deneke.
Cocaine Dealing Mother Sentenced to 10 Years in PrisonRead the Press Release
SAVANNAH GA- Liberty County resident Timecka Green, 32, was sentenced earlier this week by District Court Judge William T. Moore, Jr. to 10 years in federal prison for her role in a drug trafficking conspiracy that operated in Liberty County and elsewhere. In May of this year, a federal jury convicted her of conspiracy to make and sell cocaine and crack cocaine, for possessing cocaine and crack cocaine with intent to sell and for making crack cocaine.
Evidence presented in trial, court hearings, and written documents, painted a grim picture. On Tuesday, October 27, 2015, T. G. (a 15 year-old child) called her grandmother in New York for help because men were cooking crack cocaine at her Liberty County home and the fumes were making her brothers, sisters, and her own six-month old infant sick. The defendant, Timecka Green, had left her children alone with other drug dealers, who were cooking crack, so she could engage in a drug deal.
The grandmother called the Liberty County Sheriff’s Office to investigate. Upon arrival, detectives captured Laron Bruce, who had over $7000 cash, cocaine, and a scale hidden on his body. Detectives ultimately searched the home and found it filled with children and drug supplies. The kids were 15, 13, 8, 5, 2, and 6 months old. Cocaine, crack, and cooking supplies were found throughout the government subsidized house. Detectives found a small child’s school uniform pants, covered in cocaine powder, on a table in the living room, next to a razor blade, next to a baby play pen. In the kitchen, next to baby formula, agents found crack cocaine and powder cocaine. In total, during the search, agents found over 400 grams of powder cocaine, over 30 grams of crack cocaine, plastic baggies with cocaine residue, glass beakers, multiple scales used to weigh drugs, cutting agents, a whisk, a cocaine press, and other items.
Trial testimony revealed that on over 20 separate occasions, Timecka Green opened the doors of her home to drug dealers so they could cook crack and package it for re-sell. In exchange, she received cocaine for resale or money. After her arrest, Timecka Green made phone calls from jail where she stated that if she saw her daughter she would cut her throat.
United States Attorney Edward J. Tarver stated, “Some of the evidence presented during this trial was appalling. The defendant willfully endangered her grandchild and her own four children in exchange for drugs and money. During her prosecution, the defendant put her 15 year-old daughter on the witness stand to testify at trial in a deplorable attempt to force her to recant. We should all grieve for these children, especially the teenage daughter who did the right thing to protect her siblings and her own child.”
Also convicted and sentenced in this successful prosecution were Larron R. Bruce, 35, who received 170 months of incarceration and Willie Nelson Bruce, 55, who received 57 months of incarceration.
This case was investigated by the Liberty County Sheriff’s Office and the GBI. The cases were prosecuted by Assistant United States Attorneys E. Greg Gilluly, Jr. and Scarlett S. Nokes. For additional questions, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Civil Complaint Filed Against Sevier Valley Oil Company Alleging Eight Amtrak Locomotives Broke Down After Refueling with Contaminated Fuel in Salt Lake CityRead the Press Release
SALT LAKE CITY – A civil complaint filed Friday afternoon in U.S. District Court in Salt Lake City alleges that Sevier Valley Oil Company of Monroe, Utah, provided contaminated fuel for eight Amtrak locomotives refueled in Salt Lake City during April and May of 2011. The locomotives broke down after leaving Salt Lake City. Repairs required to fix the locomotives took them out of commission for several days and cost taxpayers tens of thousands of dollars.
In one instance on May 17, 2011, an Amtrak train was stranded without electrical power about 100 miles east of Elko, Nevada, after one of two locomotives began losing power, billowing smoke, and shooting flames and sparks out of its exhaust. Soon after, both locomotives, which had been refueled in Salt Lake City a few hours before, completely failed and could not be restarted. According to the complaint, with the loss of both locomotives, the train was stranded without electrical power. Amtrak was able to lease a locomotive from Union Pacific to tow the stranded train to Elko, where passengers were taken by bus. Some passengers were transported to the hospital because their medical devices were without power for an extended period of time while they were on the stranded train.
Sevier Valley Oil and Amtrak entered into a contract on Dec. 1, 2009. As a part of the contract, Sevier agreed to provide No. 1-D and No. 2-D diesel fuel for Amtrak’s locomotives. Among other requirements, Sevier agreed to provide this diesel fuel that would be “free from grit, acid, microbial growth, and fibrous or other foreign material likely to clog pipes and strainers or damage injectors.”
Amtrak suspended Sevier from fuel deliveries after the incident involving the stranded train near Elko and asked Sevier to provide information about its refinery sources. According to the complaint, Sevier provided Amtrak with refinery test results from Silver Eagle, Tesoro, Holly, and Sinclair. However, the complaint notes that Sevier did not disclose that it had obtained fuel from Rock Canyon Oil Company in American Fork, Utah, which blended diesel fuel with re-fined used oil. Amtrak later determined that all of the engine failures were caused by fuel contamination, which clogged the locomotives’ fuel injectors. Subsequent fuel analysis showed that the fuel in all of the broken-down locomotives was contaminated with a non-fuel product. Amtrak had to repair all of the damaged locomotives by draining all of the contaminated fuel and making several repairs to the locomotives.
Amtrak, the complaint alleges, spent $84,124.13 in labor and parts to repair the damaged locomotives; $3,370 to drain the contaminated fuel from all of its damaged locomotives; and $5,500 to have the contaminated fuel test. Amtrak had to issue $14,575.83 in refunds or credits to passengers as compensation for late trains or missed connections. Additionally, Amtrak paid Sevier $48,081.78 for the substandard fuel that damaged its locomotives.
The complaint asks the court to declare that Sevier breached its contract and to order Sevier to pay Amtrak damages in the amount of $242,452.93 for Sevier’s breach of contract.
The complaint includes a second cause of action under the False Claims Act. According to the complaint, Sevier presented a claim for payment to Amtrak on six different days in April and May of 2011. According to the complaint, Sevier knowingly misrepresented and concealed the type of fuel that was delivered to Amtrak on their claims. The complaint asks the Court to declare that Sevier violated the False Claims Act and award the United States a civil penalty of not less than $5,500 and not more than $11,000 for each false claim and treble damages in the amount of $144,245.34 based on the amount that Amtrak paid for the substandard fuel Sevier delivered.
The U.S. Attorney’s Office in Utah is representing Amtrak and the United States in the action. The case has been investigated by the Amtrak Office of Inspector General.
Boise Man Sentenced for Distributing MethamphetamineRead the Press Release
BOISE – Jeremy Blaine Harris, 39, of Boise, Idaho, was sentenced yesterday to 70 months in federal prison for distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Harris to serve five years of supervised release. Harris pleaded guilty on May 25, 2016.
According to evidence presented in court, Harris distributed one ounce of methamphetamine to an undercover officer on July 20, 2015. At the time he distributed the methamphetamine, Harris was on parole after having been convicted of second degree murder in 1993 for shooting and killing a thirteen year-old girl during a home burglary in Minidoka County, Idaho. Harris has a pending hearing before the Idaho Commission of Pardons and Parole.
The case was investigated by the Drug Enforcement Administration and the Boise Police Department as an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF partners include the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s (ICE); Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
Bethlehem Felon in Possession of A Firearm Sentenced to 84 MonthsRead the Press Release
Julio Stewart, 31 years old of Bethlehem, Pennsylvania, was sentenced today by the Honorable Jeffrey L. Schmehl, Judge, United States District Court, to 84 months’ imprisonment, three years supervised release, a $2000 fine, and $100 special assessment fee, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli. On May 2, 2016, Stewart pled guilty to one count of possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli. The Indictment charged that on May 6, 2015, in Bethlehem, the defendant possessed a Ruger, Model P94, 9mm handgun, with an obliterated serial number, loaded with ten live rounds of ammunition, after having previously been convicted in a court of the Commonwealth of Pennsylvania of a crime punishable by imprisonment for a term exceeding one year.
The case was investigated by the Federal Bureau of Investigation, Allentown Field Office, the Northampton County District Attorney’s Office, and the Bethlehem Police Department, and is being prosecuted by Assistant United States Attorney John Gallagher and Special Assistant United States Attorney Kelly Lewis Fallenstein.
Baltimore Heroin Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Brian T. McClurkin, age 28, of Baltimore, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from June through September 2014, McClurkin conspired with Phillip Vaughn and others to distribute heroin in Baltimore. During July and August, McClurkin was overheard by law enforcement discussing the distribution of heroin on his cell phone. On August 27, 2014, members of the Baltimore Police Department and DEA conducted undercover purchases of heroin from Vaughn and a co-conspirator. During the purchases, Vaughn was observed brandishing a firearm. Vaughn and the co-conspirator were subsequently arrested and the gun and additional quantities of heroin were recovered. Both the heroin distribution and the firearm were discussed by McClurkin during calls intercepted by law enforcement.
McClurkin admitted that during his participation in the conspiracy between 100 grams and 1 kilogram of heroin was distributed.
Phillip Vaughn, age 26, of Baltimore, previously pleaded guilty to his role in the conspiracy and was sentenced to five years in federal prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Armed Heroin Dealer IndictedRead the Press Release
Jacksonville, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Matthew Barker (33, Jacksonville) with distribution of heroin and possession of a firearm in furtherance of that crime. If convicted on all counts, he faces a maximum penalty of life in federal prison. The indictment also notifies Barker that the United States intends to forfeit any firearms or ammunition involved in the offense.
According to the indictment, Barker distributed heroin in February and July 2016. He used a gun to further his drug distribution activity on one of those occasions.
An indictment is merely a formal charge that a defendant has committed one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville Sheriff’s Office, the Federal Bureau of Investigation and the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Frank Talbot.
Thursday 4 August 2016
White Oak Man Sentenced to Prison for Role in Cross-Country Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 57 months’ imprisonment on his conviction of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on David Irwin, 44, of White Oak, Pa.
According to information presented to the Court, in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, David Irwin was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the purposes of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Irwin.
Weston Man Charged with Insider TradingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven returned an indictment yesterday charging EDWARD J. KOSINSKI, 68, of Weston, with insider trading.
As alleged in the indictment, on January 29, 2014, KOSINSKI entered into a Clinical Study and Research Agreement with an authorized agent of Regado Biosciences, Inc., formerly a Delaware corporation whose common stock traded on the NASDAQ under the ticker symbol “RGDO.” KOSINSKI, as a Principal Investigator for Regado’s clinical trial, was required to maintain in strict confidence all confidential information it received from Regado or its agent during the course of the clinical trial. In May 2014, KOSINSKI owned 40,000 shares of Regado common stock.
The indictment further alleges that, on June 29, 2014, KOSINSKI and other principal investigators received an email from the clinical trial team stating that there had been several allergic reactions during the clinical trial, the acceptance of new subjects was put on hold and the Data and Safety Monitoring Board (“DSMB”) would be reviewing the recent events. On June 30, 2014, while in possession of this non-public information, KOSINSKI sold his 40,000 shares of Regado common stock for between $6.59 and $7.00 per share. On July 2, 2014, after the close of the market, Regado publicly announced that the DSMB initiated an unplanned review of the clinical trial and patient enrollment had been suspended until the DSMB completed its review. On July 3, 2014, the stock fell $3.95 from the days previous closing price, to close at $2.81.
It is alleged that, by selling his shares of Regado stock, KOSINSKI avoided a loss of approximately $160,000.
The indictment further alleges that, on July 29, 2014, KOSINSKI and other principal investigators received an email from the clinical trial team stating that a death occurred in the clinical trial and that the trial was on hold. On July 31, 2014, while in possession of this material, non-public information, KOSINSKI purchased 50 Regado common stock put option contracts with a strike price of $2.50. On August 25, 2014, before the market opened, Regado publicly announced that it permanently halted the clinical trial and the price of Regado common stock fell approximately 60 percent. KOSINSKI then purchased 5,000 shares of Regado common stock for approximately $1.13 per share and exercised his put options, netting more than $3,000.
The indictment charges KOSINSKI with two counts of securities fraud-insider trading, an offense that carries a maximum term of imprisonment of 20 years. KOSINSKI appeared today before U.S. Magistrate Judge Robert A. Richardson in Hartford, entered a plea of not guilty to the charges and was released on a $500,000 bond.
The case has been assigned to U.S. District Judge Vanessa L. Bryant in Hartford.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Heather Cherry.
In a parallel action, the Securities and Exchange Commission today announced related civil charges against KOSINSKY. (Securities and Exchange Commission v. Edward J. Kosinski 3:16-cv-01322)
Wasilla Woman Sentenced to Six Months Community Confinement, Five Years Probation, and 240 Hours of Community Service for $72,560 Federal Grant FraudRead the Press Release
Anchorage, Alaska — U.S. Attorney Karen L. Loeffler announced today that a Wasilla woman was sentenced in federal court in Anchorage for two counts of making false claims to the United States Department of Agriculture (USDA).
Crystal Jean Boze, 39, of Wasilla, Alaska, was sentenced today by Chief U.S. District Judge Timothy Burgess to five years of probation, including six months’ community confinement, 240 hours of community service, and restitution in the amount of $61,415.
According to Assistant U.S. Attorney Andrea Hattan, who prosecuted the case, Boze’s company, Green Winter Farms LLC (a farming company located in Palmer, Alaska), was awarded a $72,103 grant by the USDA Natural Resources Conservation Service in 2012, and a $49,689 grant by USDA Rural Development in 2013. The grants required Boze to pay for items in advance, then seek reimbursement from USDA. Boze was also required to certify that each claim for reimbursement was accurate. Prior to submitting the false claims at issue in this case, USDA personnel explicitly told Boze that advances of grant funds were not permitted.
Nevertheless, three times between February 2013 and June 2013, Boze knowingly made and presented three false and fraudulent claims to USDA seeking payment of USDA grant funds. In support of each of her false claims, Boze also knowingly presented false and fraudulent purchase invoices as supporting documentation for each claim. The USDA disbursed a total of $48,610 to Boze before her fraud was discovered. Boze’s fraud also caused a $12,805 loss to a small Colorado vendor from which Boze obtained grant funds to purchase a green house, but failed to pay. As part of her sentence, Boze must pay full restitution, plus post-judgment interest, to both USDA and the Colorado vendor.
U.S. Attorney Loeffler commended the Federal Bureau of Investigation (FBI) and the USDA for their investigation of this case.
Walbridge man accused of embezzling from labor unionRead the Press Release
A former labor union official was indicted on charges that he embezzled from the union, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Guy Gokey, 65, of Walbridge, Ohio, was charged in a two-count indictment with one count of embezzlement from a labor organization and one count of making a false statement on a labor organization report.
Gokey served as financial secretary for Glass Molders and Plastics AFL-CIO, Local 59, from 1986 through 2014. He embezzled approximately $14,074 from the union, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Department of Labor, Office of Labor-Management Standards, in Cleveland, Ohio. The case is being handled by Assistant United States Attorney Noah P. Hood.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Vice Lords Leader Sentenced to 20 Years in Prison for Gang-Related ShootingRead the Press Release
A leader of the Vice Lords street gang was sentenced today to 20 years in prison for attempted murder in aid of racketeering in connection with the May 7, 2015, shooting of a family of four with an AK-47 in Detroit.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division Office, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Chief James Craig of the Detroit Police Department made the announcements.
Antonio Clark, aka Cheeto, 26, of Detroit, pleaded guilty on Jan. 27, 2016, to two counts of attempted murder in aid of racketeering and use and carry of a firearm during and in relation to a crime of violence.
According to Clark’s plea agreement, the Vice Lords is a national gang engaged in a variety of crimes, including murder, robbery, narcotics trafficking and witness intimidation. The Vice Lords’ leaders are located in both Chicago and Detroit, and the gang is broken down into various “sets,” “decks,” or “branches,” including the Detroit-based Traveling Vice Lords, Insane Vice Lords, Imperial Insane Vice Lords, Conservative Vice Lords and Mafia Insane Vice Lords. Clark admitted that members who seek to leave the gang oftentimes endure a physical beating, known as a “beat out,” by multiple Vice Lords members, or are targeted for killing, known as a “green light.”
Clark admitted that in May 2015, he and other members of the Vice Lords were searching for two brothers who had left or attempted to leave the gang. According to the plea agreement and sentencing documents, Clark and at least eight other Vice Lords met on May 7, 2015, to discuss a plan of action and Clark brought a loaded AK-47 to the meeting. Clark admitted that later that day, he and other Vice Lords traveled to the intended victims’ house in broad daylight. According to sentencing documents, Clark fired the AK-47 23 times, hitting the brothers, their mother and a 15-year-old sister. In addition, sentencing documents reflect that a five-year-old boy was present but not shot. All of the victims survived the shooting.
Seven other Vice Lords defendants also have pleaded guilty to charges relating to the shooting, four of whom have been sentenced: Aramis Wilson, 25, of Detroit, was sentenced to 150 months in prison; Dion Robinson, 38, of Detroit, was sentenced to 121 months in prison; Jonathan Kinchen, 23, of Detroit, was sentenced to 120 months in prison; and Kojuan Lee, 20, of Detroit, was sentenced to 97 months in prison.
The charges and convictions related to the May 7, 2015, shooting are just one component of the federal government’s prosecution of the Vice Lords street gang, which has led to the arrests and convictions of dozens of Vice Lords leaders and members over the last few years. In two trials during March and May 2015, juries convicted eight leaders and members of the Phantom Outlaw Motorcycle Club, many of whom were also leaders and members of the Vice Lords, for various crimes, including a mass-murder plot against a rival organization and the shooting of a member of another rival organization. Among those convicted was Antonio Johnson, aka MT and Mister Tony, the National President of the Phantoms and the Three-Star General over all of the Vice Lords in Michigan. On Sept. 8, 2015, Johnson was sentenced to 35 years in prison for racketeering conspiracy, murder conspiracy in aid of racketeering, assault with a dangerous weapon in aid of racketeering, aiding and abetting the use and carry of firearms during and in relation to a crime of violence and felon in possession of a firearm.
The arrests and convictions in this case are, in part, the result of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. Through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and FBI, law enforcement authorities linked various acts of violence in Detroit to the Vice Lords street gang, and identified the leaders and key members of the gang, who now have been held accountable.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The ATF, FBI and Detroit Police Department are investigating the case. Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Mark Bilkovic of the Eastern District of Michigan are prosecuting the case.
Two New Haven Men Plead Guilty to Distributing Drugs Involved in Spate of OverdosesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANK PINA, 57, and STEVEN WHALEY, 48, both of New Haven, each pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of possession with intent to distribute, and distribution of, controlled substances. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on June 23, 2016, 17 individuals in New Haven overdosed after consuming narcotics. Three of the victims died. An investigation being conducted by the DEA and New Haven Police Department revealed that many or all of the victims believed the substance they were consuming was cocaine. However, based in part on DEA laboratory testing, it appears that the cocaine was laced with fentanyl, a powerful opioid that can be at least 50 times more powerful than heroin. Naloxone, an emergency drug used to treat opioid overdoses, was effective in treating at least some of the victims, which indicates that the ingested substance contained an opioid. Analysis of the substance involved in the overdoses is not yet completed.
The investigation revealed that PINA supplied drugs both directly and through various middlemen to several of the individuals who overdosed on June 23, 2016. WHALEY was identified as an associate of PINA who sometimes served as a middleman.
PINA and WHALEY were arrested on June 27. At the time of his arrest, WHALEY was in possession of cocaine packaged for sale.
PINA and WHALEY are scheduled to be sentenced on October 31 and November 1, respectively. They both face a maximum term of imprisonment of 20 years.
This ongoing investigation is being conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the New Haven Police Department. The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Middlebury Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Douglas P. Morabito.
Two Investment Advisors Charged with Securities Fraud in Connection with Sales of Unit Investment TrustsRead the Press Release
Two investment advisors are charged with conspiring to commit securities fraud in connection with a multi-million dollar scheme to sell unit investment trusts.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
David Garcia Villasana, 48, and Yul L. Pinto, 41, both of Miami, are charged by criminal information with one count of conspiracy to commit securities fraud, in violation of Title 15, United States Code, Sections 78j(b) and 78ff(a) and Title 17, Code of Federal Regulations, Section 240.10b-5. Villasana and Pinto face a maximum statutory sentence of five years in prison and a fine up to $250,000. The case is assigned to U.S. District Judge James I. Cohn in Ft. Lauderdale.
According to court documents, including the information, Villasana and Pinto operated Great Financial Consultants L.C. (“Great Financial”) and York Kingdom International, Inc., in the Brickell area of Miami. Villasana and Pinto, who previously had worked as investment advisors in Venezulea, solicited wealthy investors throughout the United States that had ties to Venezuela. Villasana and Pinto created investment offering documents entitled “Global Capital Builder,” among other references, to make it appear that investments with York Kingdom and Great Financial had a track record of producing high rates of return. During telephone conversations, Villasana and Pinto promised investors safety and security of the investments, by claiming that the profits could be withdrawn at any time and that the submitted monies would be placed into specific investments or categories of investments. The pitch to investors included false representations that investors’ monies would be invested in a diversified portfolio of stocks and bonds in a manner that tracked other, well known investment trusts. Villasana and Pinto also falsely represented to investors that York Kingdom and Great Financial operated as affiliates of European-based investment companies.
The court documents further allege that upon receipt of investor monies, Villasana and Pinto did not invest the funds as promised. Instead, Villasana and Pinto used more than $2.2 million of investor funds to purchase goods and services for themselves, including a Bentley and several BMW automobiles.
According to court documents, Villasana and Pinto would transmit to investors periodic “Unit Allocation Statements” that represented that the investors’ funds had appreciated in value, and to purportedly show that the investors held a certain number of “units” in specific investment trusts, or mutual funds. In reality, the information on these statements was fabricated by Villasana and Pinto, as the investors’ money was never placed in any such investments. When investors contacted York Kingdom and Great Financial and attempted to cash in on their investments, Villasana and Pinto provided a series of false explanations about the status of their monies and alleged that return payments would be forthcoming. Toward the end of the scheme, Villasana and Pinto failed to respond to investor requests to cash in on their investments or have their money returned.
Mr. Ferrer commended the investigative efforts of the FBI. The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Allison Lehr.
A criminal information is merely an allegation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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.
Three Indicted for Growing Marijuana on National Forest LandRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned two separate indictments today, charging marijuana cultivation in the Shasta-Trinity National Forest and the Lassen National Forest, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents in the first case, Clemente Lopez, 31, a Mexican national, was arrested by law enforcement officers on July 26, 2016, during a search of a marijuana-cultivation site in the Shasta-Trinity National Forest, near the town of Wildwood. The site contained over 9,800 marijuana plants. During the arrest, another suspect fled the scene after stabbing a Trinity County Sheriff’s Department K-9 in the neck. The K-9 survived.
This case is the product of an investigation by the U.S. Forest Service and the Trinity County Sheriff’s Department. Assistant U.S. Attorney James Conolly is prosecuting the case.
According to court documents in the second case, on July 25, 2016, Jose Madrigal, 67, and Cesar Mendoza-Madrigal, 44, were arrested at a marijuana cultivation site containing approximately 6,900 marijuana plants in the Lassen National Forest, near Judd Creek. In addition to the cultivation charges, both defendants were charged with committing depredation of federal land and resources.
This case is the product of an investigation by the U.S. Forest Service, the Department of Fish and Wildlife, the Tehama County Sheriff’s Office, and the Tehama Interagency Drug Enforcement task force. Assistant U.S. Attorney Owen Roth is prosecuting the case.
If convicted, the Lopez faces a maximum statutory penalty of 20 years in prison and a $1 million fine for each count. If convicted, Madrigal and Mendoza-Madrigal face a statutory maximum of five years in prison and a fine of up to $500,000 for the cultivation offenses and up to 10 years in prison and a fine of up to $250,000 for the depredation of public lands and resources offense. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three Area People Indicted on Federal Fraud Charges Involving Check-Kiting SchemeRead the Press Release
St. Louis, MO – Three area people, including an inmate at the Jennings Correctional Facility, were indicted on multiple fraud counts involving a conspiracy to commit various fraudulent schemes, including check-kiting, which they term as “piggybacking.” Check-kiting occurs when an individual takes advantage of the small window of time between when checks are deposited into an account and the financial institution upon which the checks are drawn provides notice to the depositing institution that the check will not be honored.
According to the indictment, the purpose of the conspiracy was to open bank accounts at Bank of America and U.S. Bank and use an existing account at Regions Bank to deposit worthless checks. They disbursed from the artificially inflated accounts through cash and ATM withdrawals, writing checks and making debit card purchases before the worthless checks were determined to be invalid by Bank of America, U.S. Bank and Regions Bank. Taion Brown and Pierre Watson recruited Justice Carter and other individuals to open bank accounts and provide checks from existing accounts in exchange for payment for their participation in the scheme to defraud Bank of America, U.S. Bank and Regions Bank.
Taion Brown, St. Louis, MO, and Pierre Watson, St. Louis, MO, were indicted by a federal grand jury on August 3 on one felony count each of conspiracy to commit bank and wire fraud, three felony counts of bank fraud and one felony count of aggravated identity theft. Justice Carter, St. Louis, MO, was indicted on one felony count of conspiracy to commit bank and wire fraud and one felony count of bank fraud.
If convicted, each count of conspiracy to commit bank and wire fraud and bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million. Aggravated identity theft is a mandatory two years in prison, consecutive to any other term of imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Secret Service, the Federal Bureau of Investigation and St. Louis County Police Department. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Texas Man Convicted of Filing False Tax Returns and Corruptly Endeavoring to Impede the IRSRead the Press Release
Yesterday, a Austin, Texas, businessman was convicted by a federal jury on four counts of filing false tax returns and corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to the evidence presented at trial, Victor Antolik owned and operated a commercial janitorial business in Austin, San Antonio and Houston, Texas, for which he used a variety of business names, including Diversified Building Services Inc., DBS Services Inc., Partners in Cleaning, PIC Building Services and BSI Industries. Antolik also earned income as a real estate agent, real estate broker and property manager. Antolik earned a portion of his real estate income through his companies SGN Realty Inc. and Signature Realty Services. Antolik submitted to the Internal Revenue Service (IRS) four false individual income tax returns on which he underreported his income for tax years 2004, 2007 and 2008. In addition, between 1998 and 2014, Antolik attempted to obstruct the IRS by, among other things, attaching altered Forms W-2 and 1099 to his tax returns, providing false information to his accountants that were used to prepare both corporate and individual income tax returns on his behalf and using nominees to conceal income and assets.
“The jury’s verdict holds Mr. Antolik accountable for his decades-long effort to conceal income and obstruct the IRS,” said Principal Deputy Assistant Attorney General Ciraolo. “Individuals who file false tax returns and fail to pay their fair share threaten the integrity of our nation’s tax system. The department, working with its partners at the IRS, remains committed to prosecuting those individuals who act as though they are above the law.”
“Victor Antolik’s attempts to hide his income from the IRS finally caught up with him as a jury found him guilty of filing false returns and impeding the due administration of the IRS,” said Chief Richard Weber of the IRS-Criminal Investigation (IRS-CI). “Individuals who file false returns to avoid paying their fair share of taxes are simply stealing from honest American taxpayers. The IRS and Department of Justice remain determined and vigilant in ferreting out such schemes and bringing these criminals to justice.”
Antolik faces a statutory maximum sentence of three years in prison on each count, as well as a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo thanked agents of the IRS-CI, who investigated the case and Tax Division Trial Attorneys Robert A. Kemins and David Zisserson, who prosecuted the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Western District of Texas for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tax Return Preparer Pleads Guilty to Preparing and Filing False Tax Returns with the IRSRead the Press Release
WASHINGTON - A Guilford County, North Carolina, resident pleaded guilty today to four counts of aiding and assisting in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
Marvin Flythe, 53, admitted that he ran a tax preparation business in Greensboro, North Carolina, called “TAXHOVA.” Between January 2012 and January 2015, Flythe admitted preparing and filing numerous individual income tax returns for clients on which he reported false business losses and false unreimbursed employee business expenses. Flythe maintained a YouTube video channel on which he advertised TAXHOVA. Flythe admitted to filing at least 36 false returns for clients, for which $130,949 in fraudulent refunds were paid. Flythe also admitted to filing false personal returns for himself for tax years 2011, 2012 and 2013 and to failing to file his 2014 return.
Flythe is scheduled to be sentenced on Nov. 14. He faces a statutory maximum sentence of three years in prison for each count of aiding and assisting in the preparation of false tax returns, as well as a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of Internal Revenue Service Criminal Investigation, who investigated the case, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Anand Ramaswamy of the Middle District of North Carolina, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
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Tahlequah Man Pleads Guilty to Drug Conspiracy, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JIMMY W. SEQUICHIE JR., age 25, of Tahlequah, Oklahoma, pled guilty to DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(B) and POSSESSION OF FIREARM IN FURTHERANCE OF A DRUG TRAFFICKING CRIME, in violation of Title 18, United States Code, Sections 924(c)(1)(A) and 2.
The Superseding Indictment filed on March 8, 2016, alleges that from in or about the end of 2013 and continuing until on or about January 27, 2016, in the Eastern District of Oklahoma, the defendant, did willfully and knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and the Distribution of 50 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
It further alleges that on or about November 25, 2015, within the Eastern District of Oklahoma, the defendant did knowingly possess a firearm in furtherance of a drug trafficking crime.
The Investigation revealed that Cody McClendon, an Indian Brotherhood (IBH) gang member, while an inmate with the Oklahoma Department of Corrections in McAlester, Oklahoma was utilizing a contraband cellular phone that he kept hidden on his person and inside his prison cell to facilitate the sale and distribution of methamphetamine. McClendon was doing this by using the cellular phone to communicate with co-conspirators via audio phone calls, text messages, and by communicating on the social media website Facebook. SEQUICHIE was an enforcer who would threaten or commit acts of violence to assist in the collection of drug debts for the organization and would receive methamphetamine in return for his services.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Tahlequah Police Department, the Muskogee Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the Drug Enforcement Administration. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment on count one is not less than 5 years and not more than 40 years imprisonment up to a $5,000,000.00 fine or both and count two is punishable by not less than 5 years imprisonment to be served consecutive to any other term of imprisonment imposed.
Assistant United States Attorney Shannon Henson represented the United States.
Statement of United States Attorney for the Central District of California after today’s ruling by the Ninth Circuit Court of Appeals in the consolidated Los Angeles County Sheriff’s casesRead the Press Release
LOS ANGELES – Today United States Attorney for the Central District of California Eileen M. Decker issued the following statement regarding the ruling of the Ninth Circuit Court of Appeals in the consolidated Los Angeles County Sheriff’s cases:
“The Ninth Circuit Court of Appeals' categorical rejection of the arguments raised by the seven former members of the Los Angeles County Sheriff's Department speaks volumes. Although the actions of these seven defendants tarnished the department they claimed to serve, we recognize that their criminal actions are not reflective of the conduct of the entire Los Angeles Sheriff’s Department, the vast majority of whom serve our community with integrity and honor every day.”
Six Men Charged in Manhattan Federal Court with Sex Trafficking of MinorsRead 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”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”) announced the unsealing this morning of an indictment charging six defendants: NASHEAN FOLDS, a/k/a “Snow,” a/k/a “Nae Heffner,” DAVID HIGHTOWER, a/k/a “Haze,” GREGORY LUCK, a/k/a “Boogz,” a/k/a “Boogley,” TREMAIN MOORE, a/k/a “Trey Dub,” a/k/a, “Frass,” COREY ROPER, a/k/a “Sneaks,” and ANTWONE WASHINGTON, a/k/a “Bigbank Gotti,” a/k/a “Adam Reyes.” Each defendant was charged with conspiracy to commit sex trafficking of minors, sex trafficking of minors, and conspiracy to travel in interstate commerce and use facilities in interstate commerce to promote sex trafficking. ROPER was also charged with kidnapping. HIGHTOWER and MOORE were arrested on June 13, 2016 pursuant to a criminal complaint containing related charges and have been in federal custody since that time. LUCK, FOLDS, and ROPER were arrested yesterday and presented in Manhattan federal court before Magistrate Judge Barbara Moses. WASHINGTON remains at large. The case is assigned to United States District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara said: “The six defendants in this case allegedly trafficked minors for the purpose of using them as sex workers. The defendants’ alleged crime is particularly insidious in that they selected the victims specifically because of their vulnerable nature and their inability to fend for themselves. This office, along with our law enforcement partners at the FBI and NYPD, will continue to find, investigate and prosecute those engaged in sex trafficking.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Contrary to what some believe, the teenagers who get tangled up in the sex trade don’t do it for fun when they are abused and belittled by their pimps. These men allegedly knew exactly how to manipulate the girls in this case, and used their vulnerabilities against them so the subjects could make some cash. The FBI and our law enforcement partners are out every day and night doing all we can to track down the victims and stop the pimps from moving on to their next targets.”
New York Police Commissioner William J. Bratton said: “As alleged, the individuals preyed upon the vulnerable and uneducated, exploiting children for sex and profit. Protecting children is the most important work this department does. I am particularly proud of the detectives and agents who arrested those who carried out these heinous crimes that are alleged in today’s indictment.”
As alleged in the Indictment, the Complaint against HIGHTOWER and MOORE, and in other documents previously filed in Manhattan federal court[1]:
Beginning in or about February 2015 through the present, each of the defendants agreed to engage in sex trafficking of minor female victims, and actually did traffic at least four minor female victims in the Southern District of New York and elsewhere, and also agreed to travel in interstate commerce and use facilities of interstate commerce to promote their sex trafficking activities.
ROPER is also charged with kidnapping a female victim in or about February 2016.
As explained in the Complaint, sex traffickers like the defendants typically recruit vulnerable minor victims who lack education, a stable home, family support, and who have suffered past physical and emotional trauma. Sex traffickers often use their minor victims’ need for shelter, stability, and affection as a means to sexually exploit their victims for their own financial gain. Similarly, such sex traffickers or pimps often prey on young adult women who suffer many of the same vulnerabilities. Once these sex traffickers have recruited victims, they advertise them on websites dedicated to “escort” services and on classifieds websites. To evade detection by law enforcement, advertisements are posted in the adult entertainment section of the website and purport to offer individuals as mere escorts, but the advertisements signal that they are, in fact, offering individuals for sale for commercial sex acts.
It is also common for domestic sex traffickers to set rules for their victims, control their actions, and take their earnings. Often, if a victim violates one of the rules set by a sex trafficker, punishment is meted out in the form of physical violence. A violation of the rules could include, among other things, failing to answer the trafficker’s phone calls, leaving the area where the victim is supposed to be soliciting or servicing customers, not making enough money for the day, or holding back money from the sex trafficker.
In or about March 2016, prior to being charged in the Complaint, MOORE and HIGHTOWER were arrested on state charges after they brought three minor victims to Athens, Georgia, to promote their sex trafficking enterprise.
* * *
FOLDS, 20, is from Staten Island; LUCK, 20, WASHINGTON, 24, ROPER, 24, HIGHTOWER, 23, and MOORE, 22, are all from Queens, New York. All of the defendants face a maximum term of life in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentences imposed on the defendants will be determined by the Court.
A chart containing the names of the defendants, and the charges and maximum penalties they face, is attached.
Mr. Bharara praised the outstanding investigative work of the New York City Police Department’s Human Trafficking Team and the Federal Bureau of Investigation. Mr. Bharara also thanked the Georgia Bureau of Investigation, the District Attorney’s Office for Athens-Clarke County, the U.S. Attorney’s Office for the Middle District of Georgia, the Department of Homeland Security Investigations, the U.S. Attorney’s Office for the District of New Jersey, the Office of the State Attorney for the Third Judicial Circuit, the Nassau County District Attorney’s Office, the Nassau County Police Department, the Office of the Middlesex County Prosecutor, and the Edison New Jersey Police Department for their critical support and cooperation throughout the investigation.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Amanda L. Houle and Lara Pomerantz are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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CHARGES
DEFENDANTS
MAXIMUM PENALTIES
Sex trafficking conspiracy
NASHEAN FOLDS
DAVID HIGHTOWER
GREGORY LUCK
TREMAINE MOORE
COREY ROPER
ANTWONE WASHINGTON
Life in prison
Sex trafficking of a minor
NASHEAN FOLDS
DAVID HIGHTOWER
GREGORY LUCK
TREMAINE MOORE
COREY ROPER
ANTWONE WASHINGTON
Life in prison
Mandatory minimum: 15 years in prison
Kidnapping
COREY ROPER
Life in prison
Conspiracy to use and travel in interstate commerce to promote unlawful activity
NASHEAN FOLDS
DAVID HIGHTOWER
GREGORY LUCK
TREMAINE MOORE
COREY ROPER
ANTWONE WASHINGTON
5 years in prison
[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.