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22 September 2016
District Man Found Guilty of First-Degree Murder While Armed in 2011 Slaying of 18-Year-Old in Northeast WashingtonRead the Press Release
WASHINGTON – Dwayne Hilton, 25, of Washington, D.C., has been found guilty of first-degree murder while armed and other charges for the 2011 slaying of a man in Northeast Washington, U.S. Attorney Channing D. Phillips announced today.
Hilton was found guilty on Sept, 21, 2016 of the murder charge, three counts of assault with intent to kill while armed, and related firearms offenses. The verdict followed a trial in the Superior Court of the District of Columbia. He is to be sentenced on Dec. 9, 2016, by the Honorable José M. Lopez. Hilton faces a potential sentence of life in prison.
According to the government’s evidence, on Nov. 26, 2011, at approximately 12:35 a.m., Hilton and an unknown accomplice followed the victim, 18-year-old Mico Briscoe, and his friends for approximately two blocks, as they walked to the Circle 7 convenience store in the 1200 block of Mount Olivet Road NE. Hilton and the accomplice ran up behind Mr. Briscoe and his friends. As Mr. Briscoe and three friends approached the front door of the Circle 7, they were shot approximately 19 times from behind. Mr. Briscoe was shot once directly in the back, and once from a ricochet in the clavicle. He died several hours later. One of his friends was shot in the elbow, and survived. The remaining two friends suffered graze wounds.
This shooting is believed to have arisen from an old rivalry between two neighborhood groups in the Trinidad and E Street/Rosedale areas. Hilton was arrested on Feb. 11, 2013, and has been in custody ever since.
In announcing the verdict, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the U.S. Marshals Service, the FBI, and the District of Columbia Department of Forensic Sciences. He acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Chrisellen Kolb; Litigation Technology Specialist Leif Hickling; Investigative Analyst Zachary McMenamin, and Paralegal Specialists Benjamin Kagan-Guthrie, Sandra Lane, and Zekiah Wright. Finally, he commended the work of Assistant U.S. Attorney Shana Fulton, who investigated the case and secured the defendant’s indictment, and Assistant U.S. Attorneys Sharon Donovan and Alicia Long, who investigated and prosecuted the case.
Dallas Man Sentenced to 188 Months in Federal Prison for Role in Conspiracy to Transport, or Assist in Transporting, a Substance Represented to be Cocaine on Flights from DFW Airport as Part of an Undercover Law Enforcement OperationRead the Press Release
DALLAS — A Dallas-area man who admitted to his role in transporting a substance that was represented to be cocaine on flights from Dallas-Fort Worth International Airport (DFW) was sentenced today to a lengthy federal prison sentence, announced U.S. Attorney John Parker of the Northern District of Texas.
Moniteveti Katoa, a/k/a “Vince,” 53, was sentenced by U.S. District Judge Jane J. Boyle to 188 months in federal prison following his guilty plea in January 2016 to one count of conspiracy to possess with intent to distribute and distribute at least five kilograms or more of cocaine. Moniteveti Katoa has been in custody since mid-July 2015 following a law enforcement operation, led by the Federal Bureau of Investigation, the Dallas Police Department and Internal Revenue Service Criminal Investigation, in which numerous defendants were arrested on drug distribution conspiracy and related charges outlined in a federal superseding indictment returned by a federal grand jury in Dallas the previous month.
That superseding indictment charged Moniteveti Katoa, and three others, Funaki Falahola, 34, Molitoni Katoa, 34, and Janelle Isaacs, 42, with the cocaine distribution conspiracy offense. All four defendants have pleaded guilty to the offense. Molitoni Katoa was sentenced last week to 90 months in federal prison. Funaki Falahola is scheduled to be sentenced on October 20, 2016, and Janelle Isaacs is scheduled to be sentenced on December 1, 2016. The statutory penalty for the offense is not less than 10 years and up to life in federal prison and a $10 million fine.
Funaki Falahola told undercover officers he had family members that could transport controlled substances via commercial airline. Funaki Falahola introduced Moniteveti Katoa to agents as his Uncle and family leader. Molitoni Katoa was also introduced as Falahola’s cousin and a person that could smuggle controlled substances into the DFW airport through his job at the cargo area at the DFW airport. Moniteveti Katoa’s wife, Janelle Isaacs, worked for American Airlines.
According to documents filed in the case, the four used their positions of employment at DFW, or contacted a person or persons who had a position or positions of employment at DFW, to bypass security in order to transport kilogram quantities of a substance that was represented to be cocaine, in what they did not know was an undercover law enforcement operation. As part of the conspiracy, that ran from approximately April 18, 2013, through July 14, 2015, the substance that was represented to be cocaine was transported on commercial airlines flying from DFW to destinations in Las Vegas, Nevada; Newark, New Jersey; Phoenix, Arizona; Chicago, Illinois; Wichita Kansas; and San Francisco, California.
According to testimony at today’s sentencing hearing, Moniteveti Katoa told undercover agents in November 2014 that he had the DFW airport wired so well he could sneak a bomb into the airport if he wanted to. In December 2014, agents asked Moniteveti Katoa if he would be willing to smuggle plastic explosives into the airport. Moniteveti Katoa initially expressed concern about the possibility of the explosives exploding in an airplane. After being told by undercover officers that they would not explode without a detonator, Moniteveti Katoa agreed to smuggle the explosives into the airport as he had done previously with the “cocaine.” Moniteveti Katoa agreed to bypass security at DFW airport and then hand the explosives to another person for that person to fly the explosives on an airplane to another city.
Falahola introduced Moniteveti Katoa to the undercover officer who was interested in smuggling cocaine from DFW Airport. He noted that Moniteveti Katoa had worked for American Airlines for 25 years and was a leader in the Tongan community. Falahola advised the undercover officers that they could transport the cocaine to major U.S. cities as well as to Hawaii and New Zealand. Moniteveti Katoa advised the undercover officer that he was willing to fly to locations in advance of smuggling the cocaine to conduct security checks.
According to plea documents filed in his case, from September 2013 through May 2015, Moniteveti Katoa smuggled what he thought was cocaine on at least six flights from DFW Airport to Las Vegas, Newark, Chicago, Wichita, San Francisco, and Tempe, Arizona.
The FBI, Dallas Police Department and Internal Revenue Service Criminal Investigation led the investigation with assistance from the Texas Department of Public Safety; the DFW Department of Public Safety; the U.S. Department of State; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Transportation Security Administration; the U.S. Secret Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and the Fort Worth, McKinney, Mesquite, and Plano Police Departments.
Assistant U.S. Attorney George Leal is in charge of the prosecution.
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Dallas Man Sentenced to 151 Months in Federal Prison for Role in Methamphetamine Trafficking ConspiracyRead the Press Release
DALLAS — Juan Vargas-Camacho, a/k/a “Ballecito,” 47, of Dallas, was sentenced yesterday afternoon by Chief U.S. District Judge Barbara M. G. Lynn to 151 months in federal prison, following his guilty plea in April 2016 to one count of conspiracy to distribute 50 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, during the course of the investigation, law enforcement intercepted numerous communications between Vargas-Camacho and others who were distributing methamphetamine. Vargas-Camacho’s supply source was co-defendant Aduato Olvera, 34, of Garland, Texas. On several occasions Olvera delivered large quantities of methamphetamine to Vargas-Camacho, and in November 2014, law enforcement stopped Vargas-Camacho after he left Olvera’s business and seized 486.3 grams of methamphetamine from a black bag on the passenger side floorboard.
To date, Judge Lynn has sentenced six of the 41 defendants charged in the conspiracy: Juan Aleman-Escamilla, 31, of Dallas, was sentenced to 168 months; Raul Torrres Zamora, 28, of Dallas, was sentenced to 63 months; Luis Lopez-Cruz, 33, of Oklahoma City, was sentenced to 78 months; and Jose Montes, Jr., 22, of Dallas, was sentenced to 188 months in federal prison. Each pleaded guilty to their role in the methamphetamine distribution conspiracy that began operating in north Texas in approximately May 2014.
Most of the remaining defendants have pleaded guilty and are awaiting sentencing. One is set for trial on November 8, 2016.
The case was investigated by the Drug Enforcement Administration and the Dallas Police Department.
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Current and Former Omaha Tribal Council Members and Employees IndictedRead the Press Release
United States Attorney Deborah R. Gilg announced today that the federal grand jury has returned a twenty count indictment charging nine people with various offenses. Eight are current or former members of the Omaha Tribal Council and one is a current employee of the tribe. Jessica Webster-Valentino (age 46), Barbara Freemont (age 64), Amen Sheridan (age 55), Rodney Morris (age 62), Doran Morris, Jr. (age 45), Forrest Aldrich (age 66), Mitchell Parker (age 68), Tillie Aldrich (age 47), and Jeff Miller (age 52) were each charged with conspiracy, conversion and misapplication of funds from a program receiving Federal funds, and conversion and misapplication of funds of a health care benefit program. An arraignment date for each of the defendants will be set by the Clerk of the District Court, but the hearings are anticipated to be in late October.
A conspiracy conviction is punishable by up to five years of imprisonment and/or a $250,000 fine. A conviction for conversion or misapplication of funds from a program receiving Federal funds is punishable by up to ten years of imprisonment and /or a $250,000 fine. A conviction for conversion or misapplication of funds of a health care benefit program is punishable by up to ten years of imprisonment and/or a $250,000 fine.
According to the Indictment, the Omaha Tribe of Nebraska had filed Contract Disputes Act claims against the Indian Health Service, an agency of the United States Department of Health and Human Services. These claims were filed in 2005 and 2012 and concerned unpaid contract support costs covering the period of 1995-2011. The total amount of the claims was approximately $8.9 million. The Indictment alleges that the defendants converted and misapplied $388,792.44 by causing the issuance of bonuses or incentives to themselves and several other tribal employees on account of the claim filings. These bonuses or incentives were paid in October of 2012 even though the claims against the Indian Health Service were not resolved and paid until late 2015. Funds used to pay the bonuses came from carryover funds from the fiscal year 2012 contract with IHS. These funds were supposed to be used for providing health care to members of the Omaha Tribe of Nebraska through the Carl T. Curtis Health Education Center. The indictment alleges that Jessica Webster-Valentino and Barbara Freemont each received bonuses of $89,692.92, while Amen Sheridan, Rodney Morris, Doran Morris, Jr., Forrest Aldrich, Mitchell Parker, Tillie Aldrich, and Jeff Miller, as tribal council members, each received bonuses of $13,404.44.
Webster-Valentino and Freemont are charged with conspiring together to obtain money to which they were not entitled. The Indictment alleges Webster-Valentino and Freemont: (a) directly and indirectly misrepresented the level of their involvement in the preparation of the claims submitted to IHS for unpaid contract support costs; (b) made a proposal to the tribal council for authorization of unreasonable bonus or incentive payments in the amount of $89,362.92 to be paid to each of them and which proposal also included unreasonable bonus amounts to be paid to members of the tribal council in order to induce the council to approve the proposal; (c) caused checks to be prepared and issued in-house from the Carl T. Curtis Health Education Center account without going through the normal review and issuance procedure the Omaha Tribe had established with the accounting firm of Bland& Associates; and (d) caused or allowed checks to be distributed and cashed prior to tribal council approval being obtained for the aforesaid bonus or incentive proposal. The Indictment further alleges that Webster-Valentino and Freemont exchanged emails discussing what bonus amounts to propose, and that in one such email Freemont suggested increasing the amounts to be paid to the tribal council members and indicated her belief that the tribal council would not complain about the payments to Webster-Valentino and Freemont if the tribal council members got a little more for themselves.
Amen Sheridan, Rodney Morris, Doran Morris, Jr., Forrest Aldrich, Mitchell Parker, Tillie Aldrich, and Jeff Miller are charged with conspiring together to obtain money to which they were not entitled. The Indictment alleges the payments to these defendants: (a) were not regular tribally approved salary payments; (b) were unreasonable in amount; (c) were unearned; (d) were not in compliance with the provisions of Omaha Tribe of Nebraska Resolution 09-19-A; (e) were prematurely paid; (f) were not related to the purposes for which funds were to be used pursuant to the IHS contract; and (g) were otherwise contrary to the provisions of OMB Circular A-87.
The Indictment further alleges that on November 5, 2012, the same date when the tribal council approved the bonuses described above, the tribal council passed a second motion to pay a bonus of $7,500 apiece to former tribal council members dating back to 1994 for their purported oversight of the Contract Disputes Act issue. This motion would have provided an additional payment of $7,500 to Amen Sheridan, Rodney Morris, Doran Morris, Jr., Forrest Aldrich, Mitchell Parker, Tillie Aldrich, and Jeff Miller as they were each members of past tribal council. However, the indictment alleges these amounts were not paid because Webster-Valentino refused to permit funds of the Carl T. Curtis Health Center to be used for this purpose.
In addition to the conspiracy charges, the Indictment charges each of the defendants in separate counts with substantive acts of: (a) converting or misapplying funds from a program receiving federal funds; and (b) converting and misapplying funds of a health care benefit program.
“These individuals used their elected positions to enrich themselves by betraying the trust of their peers. The FBI Omaha Division will remain steadfast in aggressively investigating those responsible for perpetrating schemes like this,” said Randall C. Thysse, Special Agent in Charge of the FBI’s Omaha Division.
This case was investigated by the Federal Bureau of Investigation and the Office of Inspector General for the Department of Health and Human Services.
Columbus Gang Member Pleads Guilty to Rackteering Conspiracy, Including Zanesville MurderRead the Press Release
COLUMBUS, Ohio – Deshawn M. Smith, 29, of Columbus, Ohio pleaded guilty in U.S. District Court today to one count of racketeering conspiracy in connection with a case involving the organized criminal enterprise known as the Short North Posse. Smith’s trial was scheduled to begin on Monday, September 26.
As part of his plea, he took responsibility for one previously unsolved murder, Shane McCuen on March 11, 2008 in Zanesville.
Smith’s plea contains a sentencing range of at least 30 and up to 35 years in prison.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien and Columbus Police Chief Kim Jacobs announced the plea entered into today before U.S. District Judge Algenon L. Marbley.
A total of 20 individuals were indicted in the racketeering case with charges that included murders, attempted murders, drug trafficking, weapons offenses, witness tampering, extortion and robbery.
A United States District Court jury convicted five co-defendants of racketeering and murder in June. After a two-month trial, the group of defendants was convicted on all counts, which accounted for 10 of 14 previously unsolved murders. The trial for the final defendant is scheduled for November 28.
Acting U.S. Attorney Glassman commended the two-year investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez, and Special Assistant U.S. Attorney Jimmy Lowe of Franklin County Prosecutor O’Brien’s Office, who are representing the United States in the case.
City of Seattle Agrees to Natural Resource Damages Settlement Using New Market-Based ApproachRead the Press Release
A settlement has been reached with the city of Seattle, Washington, to resolve its liability for injured natural resources at the Lower Duwamish Waterway Superfund Site in Seattle by funding restoration projects, the Justice Department announced today. To restore the natural resources, the city of Seattle has purchased restoration credits from Bluefield Holdings, a company that develops restoration projects. This is the first natural resource damages settlement to fund restoration through the purchase of credits in restoration projects developed by a restoration development company. Each of the contemplated restoration projects address natural resource injuries at the site and the trustees will oversee and ensure the projects are constructed and implemented appropriately.
The settlement is a collaboration involving the city of Seattle, Bluefield Holdings and the Lower Duwamish Waterway Superfund Site natural resource trustees: the National Oceanic and Atmospheric Administration (NOAA), the Department of the Interior (DOI), the Washington State Department of Ecology, the Suquamish Tribe and the Muckleshoot Indian Tribe. The city of Seattle purchased restoration credits from Bluefield to account for the city’s share of the injuries to natural resources from hazardous substances released into the Lower Duwamish Waterway. The city’s credit purchase totals approximately $3.5 million worth of restoration, when calculated using the cost of projects developed directly by the natural resource trustees. In addition, the city will make available a number of properties along the Lower Duwamish Waterway for potential restoration project development by Bluefield.
“The city of Seattle is acting responsibly to resolve its liability for injuries to natural resources by acting to restore those resources by creatively utilizing restoration credits,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “Everyone comes out ahead when parties resolve their liability in this way, and the benefits of this resolution, cleaner waterways, will be enjoyed by Seattle residents and generations to come.”
Projects developed by restoration development companies can have advantages over more traditional restoration approaches. For responsible parties that prefer not to develop restoration projects themselves, purchasing credits can be less expensive than paying the natural resource trustees to build a project. And while natural resources trustees must certify and monitor restoration projects built by others for credits generated by those projects to be suitable to settle natural resource damages liability at the impacted site, this arrangement is much less time-intensive for the trustees than designing and constructing projects themselves.
“Settlements like this demonstrate that when trustees work with responsible parties to focus on natural resources we can restore the environment without litigation,” said Regional Director Robyn Thorson of the Interior Department’s Fish and Wildlife Service, Pacific Region 1.
“Today's agreement shows that natural resource trustees' obligation to restore injured resources and compensate for lost use can be met by innovative approaches like the restoration credits approach used here,” said Lois Schiffer, General Counsel of NOAA. “NOAA is pleased that the Bluefield Holdings’ projects will compensate for the natural resource injuries that occurred from the releases of hazardous substances by responsible parties into the Lower Duwamish River as well as those from Harbor Island and Lockheed West Superfund Sites. These innovative approaches save money and that assure the public that the right kind of restoration will be implemented for each site on an expedited basis.”
The Lower Duwamish Waterway Superfund Site is one of the largest Superfund sites in Washington State and includes the stretch of the Duwamish River that flows into Elliott Bay in Seattle. Over the years, a number of industrial and municipal operations have polluted the site with hazardous substances. The natural resource trustees have previously settled with The Boeing Company for natural resource damages related to its polluting activities along the Lower Duwamish Waterway.
The consent decree, lodged in the U.S. District Court for the Western District of Washington, is subject to a 30-day public comment period and approval by the federal court. A copy of the consent decree is available on the Justice Department Web site at www.justice.gov/enrd/Consent_Decrees.html.
Cincinnati Man Sentenced to 12 Years in Prison for Coercion and EnticementRead the Press Release
CINCINNATI – Martell A. Lowry, 27, of Cincinnati, was sentenced in U.S. District Court to 144 months in prison for production of child pornography and coercion and enticement. The sentence also calls for him to be under court supervision for the rest of his life.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Hamilton County Sheriff Jim Neil, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), and other members of the Regional Electronics and Computer Investigations Task Force (RECI) and Greater Cincinnati Internet Crimes Against Children Task Force (ICAC), announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
Lowry used Facebook to contact young teenage boys for the purpose of soliciting sex from the juveniles. He offered to pay them to either let him perform oral sex on them or to send him nude photos of themselves.
The investigation identified more than 25 children as being victimized by Lowry. According to an indictment returned in April 2015, Lowry enticed and coerced at least 14 minors to engage in sexual activity.
Lowry pleaded guilty in July 2015 to coercion and enticement. While under court supervision, he will be required to register as a sex offender anywhere that he lives, works or goes to school.
Acting U.S. Attorney Glassman commended the investigation of this case by the Hamilton County Sheriff’s Office, FBI, RECI and Greater Cincinnati ICAC, and Assistant United States Attorneys Christy L. Muncy and Timothy D. Oakley, who prosecuted the case.
Charleston drug dealer sentenced to eight years in federal prison for methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to eight years in federal prison for a methamphetamine charge, announced Acting United States Attorney Carol Casto. Terrus Carter, 36, previously entered his guilty plea to conspiracy to distribute a controlled substance.
Carter admitted that from December 2015 to March 2016, he conspired with Alisha Watts to distribute methamphetamine from their residence at 7270 Stonebrook Road in Charleston. Carter further admitted that he would bring methamphetamine and marijuana to the residence to store, repackage, and distribute the drugs. Watts permitted this criminal activity in exchange for Carter paying the rent and all of the bills at the residence.
On March 18, 2016, law enforcement executed a search warrant at the Stonebrook residence and seized a loaded handgun, over 620 grams of methamphetamine, over 120 pounds of marijuana, and over $34,000 in cash. On March 20, 2016, officers executed another search warrant at 111 1st Avenue in St. Albans. During the execution of the search warrant, Carter attempted to flee out of the back door and was quickly detained by law enforcement. Officers discovered over $45,000 in cash at the St. Albans residence. As part of his plea agreement, Carter agreed to forfeit the St. Albans residence and the cash seized by law enforcement.
Carter faces a minimum of five years and up to 40 years in federal prison when he is sentenced on August 18, 2016. Watts previously pleaded guilty in April 2016 to maintaining a drug-involved premises. Watts faces up to 20 years in federal prison when she is sentenced on August 17, 2016.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Monica D. Coleman is handling the prosecution. United States District John T. Copenhaver, Jr., imposed the sentence.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of drugs in communities across the Southern District.
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Camden Man Pleads Guilty to Sex Trafficking of Minor After Posting Online AdvertisementRead the Press Release
TRENTON, N.J. – A Camden man pleaded guilty today to sex trafficking of a minor, U.S. Attorney Paul J. Fishman announced.
Aaron J. Gray, 29, of Camden, pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of sex trafficking of a minor. Gray previously was charged in a criminal complaint with co-defendants Aja M. Easley, 22, of Camden, and Kenneth A. Mertz, 35, of Collingswood, with sex trafficking of a minor and conspiracy to engage in sex trafficking of a minor. Gray also was charged in the complaint with being a felon in possession of a firearm.
According to the documents filed in this case and statements made in court:
On March 2, 2015, Aja Easley communicated with the victim, a minor, using a popular social media website. Easley told the victim she was “worried about” the victim because of a previous assault by the victim’s ex-boyfriend. She offered the victim money, food, clothing, and shelter, and met the victim at the Camden Transportation Center. There, Easley told the victim about a “dating website,” and said that the victim could make money through the website by going on “dates.” Easley and the victim later met Gray and Mertz at a residence in Camden. Easley, Mertz, and Gray agreed to advertise the minor online for commercial sex acts for the purpose of earning money. To do so, Gray, Mertz, and Easley drove the minor to a motel in Cherry Hill.
At the motel, Gray and Easley convinced the victim to engage in commercial sex acts. Using her cellular telephone, Easley took provocative photos of the victim, and uploaded them to an online advertisement that she had created advertising the victim for commercial sex acts. After the advertisement was online, Easley used her cellular telephone to communicate with multiple individuals who responded to the advertisement seeking to engage in commercial sex acts with the minor. Gray gave the victim instructions on what to do when the respondents arrived. Easley instructed the victim to tell the individuals that, regardless of her real age, that she was 21 years old. Easley also instructed the victim how much time each individual could spend with the victim at the motel and how much each individual owed the victim. Easley and Gray also told the victim that if any trouble arose, Gray would be outside the motel with a firearm. While at the motel in Cherry Hill, the victim engaged in sex acts in exchange for money with multiple individuals, which the defendants split between themselves and the victim.
The next day, at a motel in Mount Laurel, New Jersey, at the defendants’ direction, the victim again engaged in sex acts in exchange for money with multiple individuals who responded to the advertisement. Later that evening, the defendants told the victim that they were taking the victim to Atlantic City, New Jersey, to meet another person who had responded to the advertisement and was willing to pay $1,200 for an entire evening with the victim. During the events on March 3, 2015, Gray was in possession of a semi-automatic firearm.
On the way to Atlantic City, the defendants agreed to let the victim stop at a residence in Gloucester City, New Jersey. The victim went inside and contacted the police, leading to the defendants’ arrest.
The count to which Gray pleaded guilty carries a statutory mandatory minimum of 10 years in prison, a statutory maximum of life in prison, and a maximum fine of $250,000. Sentencing is scheduled for Jan. 3, 2017.
On Aug. 17, 2016, Easley, pleaded guilty before Judge Sheridan to an information charging her with one count of sex trafficking of a minor and is scheduled to be sentenced Nov. 22, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and members of the Mount Laurel Police Department, under the direction of Police Chief Dennis Cribben, and the Gloucester City Police Department, under the direction of Acting Police Chief Brian Morell, with the investigation leading to todays’ guilty plea.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the Office’s Criminal Division in Trenton.
The charges and allegations against Mertz remains merely an accusation, and he is considered innocent unless and until proven guilty.
Defense Counsel: Andrea D. Bergman Esq., Federal Public Defender’s Office, Trenton
Bus Company Owner Charged with Federal Tax Violations for Failing to Report Earnings from Chicago SchoolsRead the Press Release
CHICAGO — The owner of a transportation company that bused Chicago public school students spent corporate money to purchase and renovate a $500,000 home in the city’s Oakland neighborhood and illegally deducted the funds in U.S. tax filings, according to a federal indictment unsealed today.
JEWEL LOCKHART, the owner and president of Chicago-based Jewels Bus Co., is charged with one count of impeding the Internal Revenue Service, and six counts of willfully filing false tax returns. Lockhart, 71, of Chicago, will be arraigned in U.S. District Court on a future date to be determined by the Court.
From 2008 to 2013 Jewels Bus Co. contracted with Chicago Public Schools to provide daily bus service for its students. The company also provided service to various other clients, including individual CPS schools, for special events. The special event fees collected by the company were deposited into a separate bank account than the fees collected from CPS.
The indictment alleges that from 2009 to 2011 Lockhart concealed income from Jewels Bus Co.’s tax return preparer by failing to record the special events income in company books. Lockhart transferred money from the bus business to a company controlled by a relative, who used it to purchase a $500,000 home in the 800 block of East Oakwood Boulevard in Chicago’s Oakland neighborhood, according to the indictment. Lockhart and the relative, who isn’t named in the indictment, spent more than $600,000 in Jewels Bus Co.’s money to renovate the house, the indictment states. Lockhart later became a joint tenant in the home and used it as her personal residence, according to the indictment. Lockhart concealed the scheme by telling Jewels Bus Co.’s tax return preparer that the transferred funds and the renovation costs were tax-deductible corporate expenses, even though she knew the money was spent for her personal gain, the indictment states.
The indictment further alleges that Lockhart lied to an IRS officer during an interview in 2012 about Jewels Bus Co.’s alleged failure to remit all of the employment taxes it owed. Lockhart falsely stated that CPS was the company’s only client, without mentioning its numerous other customers.
For the calendar years 2009 through 2011, Lockhart reported to the IRS that Jewels Bus Co.’s corporate income was more than $30.8 million, the indictment states. In fact, Lockhart knew that the corporation’s total income for those years substantially exceeded that amount, according to the indictment. For the same three-year period, Lockhart reported individual earnings of more than $1.1 million. The indictment alleges that her actual personal income during that time substantially exceeded that amount.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Nicholas J. Schuler, Inspector General for the Chicago Public Schools; and Thomas D. Utz Jr., Special Agent-in-Charge of the U.S. Department of Education Office of Inspector General.
Each count of the indictment is punishable by up to three years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Steven Block.
IndictmentBradenton Woman Found Guilty of Witness Tampering and Obstruction of JusticeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Delexsia Harris (24, Bradenton) guilty of witness tampering and obstruction of justice. She faces a maximum penalty of life in federal prison. Her sentencing hearing is scheduled for December 20, 2016. Harris was indicted on May 25, 2016.
According to testimony presented at trial, Harris threatened and intimidated multiple persons who were scheduled to serve as witnesses in the trial of United States v. Nathaniel Harris et al., which occurred this summer. Harris threatened and intimidated witnesses in person and on social media, threatening to hurt and murder individuals cooperating with law enforcement and telling one victim that Ms. Harris’s family would kill her and her children. Testimony also demonstrated that Harris had helped a defendant in that case solicit a false alibi.
In addition, testimony and evidence showed that Harris had lied to law enforcement officers following the July 3, 2012, murder of Ceola Lazier. Prosecutors presented evidence that she participated in the murder, with her brother and another man, and later told police officers that the killers were two unknown men driving a white Mercedes Benz. Harris’s brother, Charlie Green, and the other man, Jerry W. Green, were convicted of the shooting death of Ceola Lazier following the trial of United States v. Nathaniel Harris et al.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Natalie Adams and Shauna Hale.
Ballwin Area Man Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – Darrin Landes pled guilty to wire fraud charges involving his scheme to sell sporting event tickets, but not delivering them to the purchasers after they sent payment to him.
According to court documents, from September 2015 to July 2016, Landes offered to sell tickets to sporting and entertainment events including the 2016 Kentucky Derby, the 2016 Masters golf tournament in Augusta, Georgia, and St. Louis Cardinals games. On some occasions, he offered to sell accommodations at hotels, resorts and/or homes. He frequently did not have tickets to sell to these prospective purchasers, and when he did have one ticket to an event, he attempted to sell the same ticket to someone else.
Landes and the prospective purchasers discussed the price for these tickets through face-to-face conversations, emails, texts and/or telephone conversations. The purchasers agreed to pay Landes and upon receipt of payment would send them the purchased items. Landes instructed the purchasers to send payment to him by wire transaction to either his PayPal account, one of his alleged business acquaintance’s PayPal accounts or, on some occasions, he met with the purchaser and obtained the money for the items he was selling. After the purchasers sent money to Landes and they did not receive the items that they paid for, and they attempted to contact Landes, he offered some excuse for the delay in sending the purchased item.
Landes , Ballwin, MO, pled guilty to one felony count of wire fraud before United States District Judge Rodney Sippel. Sentencing has been set for December 16, 2016.
Wire fraud carries a maximum penalty of 20 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.
This case was investigated by the Federal Bureau of Investigation and the Kirkwood Police Department. Assistant United States Attorney Anthony Franks is handling the case for the U.S. Attorney's Office.
Atlantic City, New Jersey, Man Admits Conspiring to Defraud IRS of Nearly $120,000 in TaxesRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man today admitted his role in a conspiracy to defraud the IRS of $119,880 in income taxes over three years, U.S. Attorney Paul J. Fishman announced today.
John Schultz, 74, pleaded guilty today before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of conspiracy to defraud the United States.
According to documents filed in the case and statements made in court:
Schultz, William Boland, and another conspirator were partners in Royal Rolling Chairs Inc., a business based in Atlantic City that provided rolling chair transportation services to patrons on the boardwalk. As owners, they were responsible for accurately reporting income received by the business to the IRS.
Schultz admitted that he and his two partners hid gross cash receipts from the operation of the business and did not report this revenue to the IRS. He admitted that the business maintained a second set of books, which tracked the unreported cash revenue taken out of the business. The total tax loss from the conspiracy was $119,800.
The charge of conspiracy to defraud the United States carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Jan. 9, 2017.
Boland previously pleaded guilty to the same conspiracy charge and is scheduled to be sentenced by Judge Rodriguez on Oct. 25, 2016. Abdus Mian, the bookkeeper for Royal Rolling Chairs, pleaded guilty to making false statements to federal investigators and was sentenced on April 4, 2016 to one year of probation.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, Newark Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Deputy Attorney in Charge Matthew J. Skahill of the U.S. Attorney=s Office in Camden.
Defense counsel: Edwin J. Jacobs Jr. Esq., Atlantic City
American Falls Man Pleads Guilty to Unlawful Possession of FirearmsRead the Press Release
POCATELLO – Joseph Edison McNutt, 35, of American Falls, Idaho pleaded guilty today to unlawful possession of firearms, U.S. Attorney Wendy J. Olson announced. McNutt was indicted by a federal grand jury on March 22, 2016.
According to the plea agreement, on December 27, 2015, McNutt was stopped by the Idaho State Police for a traffic violation on U.S. 91 in Bannock County, Idaho and arrested on an outstanding warrant. A search of McNutt’s vehicle revealed a Smith and Wesson .40 caliber pistol and a FEG 7.62 x 39 caliber rifle. McNutt admitted to unlawfully possessing both guns. McNutt was prohibited from possessing firearms under federal law, because he had been previously convicted of a felony, burglary in the second degree, in Pima County, Arizona in 2007.
The crime is punishable by up to ten years in prison, a maximum fine of $250,000, and three years of supervised release. Sentencing is set for December 13, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Idaho State Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
21 September 2016
“Opiates in the Workplace”Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. and Better Business Bureau of Upstate New York President Warren Clark will host “Opiates in the Workplace” tomorrow, September 22, 2016. There will be two sessions: 9:00-11:00 a.m. and 1:00-3:00 p.m. The program will be held at the WBBZ studios located in the Eastern Hills Mall. Week.
This free program is open to businesses throughout WNY to learn how to recognize the signs of addiction and ways employers can help your employees.
The Department of Justice has designated September 19-23, 2016 as Prescription Opioid and Heroin Epidemic Awareness Week to bring awareness to this epidemic which continues to devastate families across the country and right in our own community.Woman Sentenced for Bankruptcy Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A former Nevada realtor who owned at least 12 rental properties in Nevada and Texas and filed multiple bankruptcy petitions to avoid paying the mortgages, has been sentenced to 11 months in prison, two years of supervised release, and ordered to pay a fine of $10,000 and restitution of $83,000, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Barbara Jean Dennis, 60, of Las Vegas, was sentenced on Tuesday, Sept. 20, by U.S. District Judge Kent J. Dawson. Judge Dawson also entered an order restricting Dennis from engaging in real estate business during the period she is on supervised release.
“As this case demonstrates, the fallout from the housing crisis in Nevada is still impacting federal investigations and prosecutions,” said U.S. Attorney Bogden. “The prosecution of these cases typically takes years and requires a significant amount of resources. This sophisticated fraud scheme involved mortgage fraud, bankruptcy fraud, 12 properties in two states, and five bankruptcy petitions.”
Dennis pleaded guilty in February to bankruptcy fraud, admitting that she used the automatic stay provision in bankruptcy proceedings to avoid paying the mortgages, while at the same time, collecting rent from her tenants. Dennis filed three bankruptcy petitions in the District of Nevada and two in the Southern District of Texas between August 2009 and November 2010. The filing of the bankruptcy petitions caused the bankruptcy court to issue an automatic stay, which prevented the mortgage lenders from filing foreclosure proceedings on her properties during the pendency of the bankruptcy proceedings. Dennis also delayed the bankruptcy cases by failing to appear at hearings and meetings, failing to submit supporting financial documents and other paperwork to the Court, and failing to disclose prior bankruptcy cases. In one case, Dennis filed the bankruptcy petition under a false name and failed to disclose the other petitions and the names under which they had been filed. Over the course of the fraud scheme, from Aug. 31, 2009, through Dec. 17, 2010, Dennis received at least $150,000, but not more than $250,000 in rental income.
The case was prosecuted by Assistant U.S. Attorney Kathryn C. Newman and investigated by the FBI.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
Watkins Glen Man Sentenced for Manufacturing MethamphetamineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Christopher Coy, 48, of Watkins Glen, NY, who was convicted of manufacturing methamphetamine, was sentenced to 18 months in prison by U.S. District Court Judge David G. Larimer.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that on July 7, 2015 a search warrant was executed at 117 East Second Street, Apt 3, in Watkins Glen. Coy answered the door and was secured only after a brief struggle with officers. Officers searched the residence and found various component parts of a methamphetamine laboratory. Officers also located methamphetamine and approximately $105.00 in US currency.
Officers arrested Coy who told them he started using methamphetamine 10 years earlier and had been making methamphetamine two times per month for about a year and a half.The plea is the culmination of an investigation on the part of the Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Schuyler County Sheriff’s Office, under the direction of Sheriff William E. Yessman, Jr., the Watkins Glen Village Police Department, under the direction of Chief Thomas Struble, and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson.
Washington D.C. Man Pleads Guilty to Transporting Teenage Boy to Engage in Sexual ActivityRead the Press Release
BOSTON – A Washington D.C. man pleaded guilty yesterday in U.S. District Court in Boston in connection with transporting a teenage boy from Maryland to Boston and other states to engage in sexual activity.
Jason Michael Wolf, 30, pleaded guilty today to one count of transportation of a minor in interstate commerce to engage in illegal sexual activity. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Dec. 14, 2016.
On Aug. 17, 2015, the Massachusetts Bay Transportation Authority (MBTA) Police received information that an adult man and a minor were acting inappropriately at the South Station Bus Terminal. Law enforcement arrived on scene and interviewed the two individuals who were identified as Wolf and a 14-year-old boy from Maryland who was determined to be the subject of a missing persons warrant. The two admitted that they had met on a mobile dating app in July, had traveled to Boston from Maryland, and had engaged in sexual activity in Maryland, Washington D.C., New York, and Boston.
In August 2015, Wolf was arrested by the Boston Police and charged with aggravated statutory rape of a child under state law. That case is pending in Suffolk Superior Court.
The charge of transportation of a minor in interstate commerce to engage in illegal sexual activity provides for a minimum mandatory term of 10 years and up to a lifetime in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Boston Police Commissioner William Evans; and Chief Kenneth Green of the MBTA Transit Police Department, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
United States Settles Health Care Fraud Action Involving Doctor Who Prescribed Unnecessary Opioid PrescriptionsRead the Press Release
A doctor who practiced in Warren, Michigan, agreed to pay $200,000 to resolve allegations that he violated the False Claims Act by writing prescriptions for oxycodone and other controlled medications without medical justification, and for billing for medical services without medical justification, announced U.S. Attorney Barbara L. McQuade.
From 2010 through early 2012, Hussein Awada, 46, conspired with patient “marketers” to write prescriptions for tens of thousands of dosages of oxycodone and other controlled medications for no medical purpose. Awada then used the patient data for the patients brought to him by the marketers to submit bills to Medicare for services that were either never performed or were medically unjustified. Awada caused these same patients to receive medically unnecessary monthly x-rays, and other invasive tests, to help conceal his fraud.
In a related criminal action, Awada previously pled guilty to prescribing 80,000 dosages of oxycodone and Roxicodone for no legitimate medical reason, and he admitted to defrauding Medicare, Medicaid, and Blue Cross Blue Shield of about $2.3 million. Awada was sentenced to 84 months in prison and was ordered to pay $2.3 million in restitution. To help pay the restitution, Awada was ordered to forfeit assets. To settle his civil liability under the False Claims Act, Awada agreed to pay an additional $200,000.
The allegations in the civil False Claims Act suit were brought to the government by a whistleblower, known as a relator, under the qui tam provisions of the False Claims Act. The relator, Heather Henson, worked as a receptionist for Awada at his medical practice Midwest Family Practice, PLC during a six-month period from 2010 to 2011. Henson will receive $36,000 out of the $200,000 settlement, as well as a portion of the assets Awada forfeits, for her role in filing the qui tam action.
"Prescription pain pills like oxycodone are controlled substances because their abuse can lead to addiction, illness and death,” McQuade said. “This settlement demonstrates that doctors pay a substantial price when they seek to profit by prescribing medically unnecessary prescription drugs and services that may harm their patients."
This case was investigated jointly by the U.S. Attorney’s Office for the Eastern District of Michigan and the Department of Health and Human Services, Office of Inspector General.
The case is captioned as United States ex rel. Henson v. Midwest Family Practice, PLC et al., Case No. 2:13-cv-14579 (E.D. Mich.). The related criminal action is captioned as United States v. Awada, Case No. 2:12-cr-20595 (E.D. Mich.).
United States Attorney Announces Heroin Intervention Program with DEA and Louisville Metro Police DepartmentRead the Press Release
Priority is to investigate and prosecute heroin dealers who face a mandatory 20 year minimum sentence for causing overdoses
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr., joined by Louisville Mayor Greg Fischer, Louisville Metro Police Chief Steve Conrad and Timothy J. Plancon, Special Agent in Charge, DEA Detroit Field Office, announced a new collaborative investigation and prosecution program to remove heroin dealers from the streets of Louisville.
“I have a message for heroin dealers,” stated United States Attorney John Kuhn. "You are killing people in this city from every walk of life. From this point forward, if you sell heroin that causes an overdose, we will bring federal charges against you that will get you a minimum of 20 years in prison with no parole. The trafficking in this deadly poison must end."
“Our city is grateful for the support from the DEA and the U.S. Attorney to help combat the heroin problem in Louisville. We are tackling this issue from many facets, and this new enforcement initiative adds another element to our strategy,” Mayor Greg Fischer said.
"LMPD has enjoyed a long-standing partnership with the DEA and we are thankful for continued efforts such as this which will greatly assist us in combatting one of the major contributors of our violent crime,” stated Chief Steve Conrad.
The DEA and LMPD, in coordination with the U.S. Attorney’s Office, recently formulated a strategy in response to the current heroin epidemic. These meetings resulted in the creation of the Heroin Investigation Team (HIT) which will investigate overdoses with the aim of developing federal cases charging heroin distribution causing death or serious injury. These charges will be punished by a mandatory 20-year sentence. The HIT consists of Special Agents of the DEA and LMPD Major Case Narcotics Unit Detectives.
The program is supported initially with federal funding for overtime for six law enforcement officers from LMPD who will work on HIT. Each of the six law enforcement officers will be deputized by DEA as a federal Task Force Officer (TFO).
Through the first six months of 2016, first responder personnel including Louisville Emergency Medical Service, the Louisville Metro Fire Department, and the Louisville Metro Police Department responded to 3,421 reported overdoses (compared to 2,072 reported overdoses from the same period in 2015). In addition, first responder personnel had administered the opioid antagonist naloxone (Narcan) 1,148 times (compared to 354 naloxone administrations during the same time period in 2015). During the first two quarters of 2016, there were 183 total overdose deaths in Jefferson County. (63 heroin, 99 Fentanyl and 32 both drugs present).
“Louisville is being ravaged by the heroin and opioid epidemic. The crisis is fueling both a public safety and a public health crisis. As we broaden our public education efforts to stem the tide of new addicts, we will also intensify our law enforcement efforts to attack the supply of heroin. My office will work in partnership with LMPD and the DEA to investigate overdose scenes, utilize all available technology and resources to make arrests, and then incarcerate those who profit from this deadly poison,” concluded U.S. Attorney Kuhn.
Today’s announcement comes during the President’s Prescription Opioid and Heroin Epidemic Awareness Week. According to Attorney General Loretta Lynch, the purpose of Heroin and Opioid Awareness Week, is aimed at drawing attention to the urgency of heroin and prescription opioid abuse while improving the public’s understanding of how destructive this epidemic is across America. For more information: https://www.justice.gov/opioidawareness/
U.S. Attorney's Office to Sponsor Event to Raise Awareness of Heroin and Opioid AbuseRead the Press Release
WASHINGTON –The U.S. Attorney’s Office for the District of Columbia, the District of Columbia Department of Parks and Recreation, and other government and community partners are leading an event Thursday, Sept. 22, 2016, at Marvin Gaye Park to raise awareness about the rising public health crisis caused by drug overdoses.
The event is open to the public and runs from 10 a.m. to 2 p.m. at the park, which is at the corner of Division Avenue and Foote Street in Northeast Washington. The program is designed to educate the community about the heroin and opioid epidemic. Substance abuse treatment counselors will be present to provide information and make direct referrals to treatment programs. Music will be provided by DJ FLAVA of WKYS Radio (93.9 FM). In addition, music will be performed by the Amazing Gospel Souls – the Lorton Legends.
“We must do everything we can to fight the heroin and opioid epidemic that is threatening communities across the nation,” said U.S. Attorney Channing D. Phillips. “Raising awareness about the lethal consequences of heroin and opioid abuse is a priority of our office and we hope this week’s event at Marvin Gaye Park will launch meaningful action and discussion.”
President Obama has proclaimed this to be National Heroin and Opioid Awareness Week. Attorney General Loretta E. Lynch and other officials are making appearances across the nation throughout the week to highlight the problem and to reinforce the Justice Department’s three-fold approach to the opioid and heroin epidemic: 1) prevent further tragedies by raising awareness regarding the opioid and heroin epidemic; 2) focus on enforcement priorities and highlight best practices; and 3) deploy resources for treatment.
More Americans now die every year from drug overdoses than they do in motor vehicle crashes—and most of those involve prescription opioids or heroin. In 2014, more than 27,000 lives were lost to heroin and opioids, and reports from the field indicate that this number has increased in 2015 and this year. The largest share of this toll comes from the abuse of prescription opioids, but the number of deaths from heroin has increased dramatically over the last several years. Particularly disturbing is the recent rise of deaths caused by fentanyl, a synthetic opioid that is much stronger than heroin, and its derivatives.
Opioids historically have been used as painkillers, but they also have great potential for misuse. Repeated use of opioids greatly increases the risk of developing an opioid use disorder. The use of illegal opiate drugs such as heroin and the misuse of legally available pain relievers such as oxycodone and hydrocodone can have serious negative health effects.
Many young people who inject heroin report misuse of prescription opioids before starting to use heroin. In addition to increasing the risk of overdose, the intravenous use of heroin places individuals at higher risk of diseases like HIV and hepatitis C.
Others taking part in the event Thursday include the Court Services and Offender Supervision Agency; the Metropolitan Police Department; the FBI’s Washington Field Office; the U.S. Drug Enforcement Administration; the Metro Transit Police Department; the District of Columbia Office of the Attorney General; the District of Columbia Department of Health; the District of Columbia Department of Behavioral Health; the District of Columbia Fire and Emergency Medical Services Department; the District of Columbia Prevention Center for Wards 7 & 8; Hillcrest Children and Family Center; Collaborative Solutions for Communities; Foundation for a Drug Free World, and the East River Family Strengthening Collaborative.
Thursday’s event is among a series of presentations this week by the U.S. Attorney’s Office and several local partners to various audiences in the District of Columbia.
Those with questions or interest in the event Thursday may contact Supervisory Community Outreach Specialist Brenda J. Horner at 202-252-6959 or [email protected].
Twitter: #opioidawareness
U.S. Attorney Ortiz Hosts Roundtable to Commemorate LGBTI History MonthRead the Press Release
BOSTON – U.S. Attorney Carmen M. Ortiz hosted a roundtable discussion on Monday, Sept. 21, 2016, with local Lesbian, Gay, Bisexual, Transgender and Intersex (LGBTI) advocates to discuss civil rights issues affecting the community in anticipation of National Coming Out Day on October 11th and LGBTI History Month, also in October.
“Though we should be proud of the historic progress that has been achieved to ensure that LGBTI individuals can finally receive the equal protection and treatment that they deserve, we cannot become complacent and think that our work is complete,” said U.S. Attorney Ortiz. “The Civil Rights Unit is committed to ensuring that LGBTI individuals have access and equal opportunities in all areas – schools, places of employment and places of public accommodation.”
The two-hour roundtable opened with welcoming remarks from U.S. Attorney Ortiz, and featured an overview of the Justice Department’s work protecting the rights of LGBTI individuals by Civil Rights Unit Chief Jennifer Serafyn. During the roundtable discussion, advocates had the opportunity to voice their views and identify the most pressing issues facing the LGBTI community.
Many local advocates were invited to attend, including the Boston Alliance of Gay, Lesbian, Bisexual and Transgender Youth, the Massachusetts Transgender Political Coalition, MassEquality, Fenway Community Health Center, GLAD, the AIDS Action Committee of Massachusetts, and Speak OUT.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Two men charged with multiple synthetic marijuana distribution chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury returned an indictment charging Nicholas Graziano, 53, of Melville, New York, and Stephen Graziano, 25, of Morgantown, West Virginia, with distributing synthetic marijuana, United States Attorney William J. Ihlenfeld, II, announced.In July 2012 through April 2014, Nicholas and Stephen Graziano, owner and operators of X Hale Hookah Lounge in Morgantown, West Virginia, were allegedly distributing synthetic cannabinoids, commonly referred to as spice, K2, incense, or fake weed. Synthetic cannabinoids are designer drugs that resemble a controlled substance in molecular structure and actual or intended physiological effect.
The Grazianos were each charged with one count of “Drug Conspiracy,” one count of “Maintaining Drug-Involved Premises – Aiding and Abetting,” eleven counts of “Aiding and Abetting Distribution of Controlled Substance Analogue,” and one count of “Possession with Intent to Distribute Controlled Substance Analogue – Aiding and Abetting.” Nicholas Graziano was additionally charged with one count of “Engaging in Monetary Transaction in Property Derived from Specific Unlawful Activity,” and Stephen Graziano was additionally charged with one count of “Laundering of Monetary Instruments.”They each face up to twenty years in prison and a fine up to $1,000,000 for the conspiracy charge; up to twenty years in prison and a fine up to $500,000 for the maintaining drug-involved premises charge; up to five years in prison and a fine up to $250,000 for each of the distribution charges; Stephen faces up to ten years in prison and a fine of up to $250,000 for the engaging in monetary transaction charge; and Nicholas faces up to twenty years in prison and a fine up to $500,000 for the laundering charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is handling the case on behalf of the government. The Mon Valley Drug and Violent Crime Task Force is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Two Postal Service Employees Sentenced for Bribery and Conspiracy to Distribute MarijuanaRead the Press Release
BIRMINGHAM – A federal judge on Tuesday sentenced a U.S. Postal Service supervisor to 6 months’ home detention and a Postal carrier to 12 months’ probation for accepting cash to deliver marijuana, announced U.S. Attorney Joyce White Vance, U.S. Postal Inspection Inspector in Charge Adrian Gonzalez, U.S. Postal Service Office of Inspector General Special Agent in Charge Max Eamiguel, FBI Special Agent in Charge Roger C. Stanton, and West Alabama Narcotics Task Force Captain Wayne Robertson.
The two Postal Service employees in Tuscaloosa, LENARD POMPEY, 39, a supervisor, and LYLE JONES, 36, a mail carrier, pleaded guilty in March to charges of bribery and conspiracy to distribute marijuana. The two men took part in a conspiracy to distribute marijuana and accepted cash to deliver packages containing the drug, according to their guilty pleas.
U.S. District Judge Madeline Hughes Haikala sentenced Pompey to six months on home detention followed by six months of probation. She sentenced Jones to 12 months’ probation.
A third Tuscaloosa Postal Service employee, Jocelin Betts, a mail carrier, pleaded guilty in November to bribery and conspiracy to distribute marijuana. She is scheduled for sentencing Sept. 29.
The FBI, U.S. Postal Inspection Service, U.S. Postal Service Office of Inspector General, and the West Alabama Narcotics Squad investigated the cases, which Assistant U.S. Attorney Brad Felton is prosecuting.
Two Maryland Men Sentenced on Federal Charges for Roles in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
Worked With Others to Seek More Than $700,000 in Fraudulent Refunds
Two Maryland residents were sentenced today for their involvement in a far-reaching stolen identity refund fraud scheme in which they worked with others to seek over $700,000 in income tax refunds through the filing of fraudulent federal income tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, U.S. Attorney Channing D. Phillips of the District of Columbia, Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge Terrence P. Mckeown of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Wayne Gardner, 50, of Capitol Heights, Maryland, and Michael Whittaker, 32, of Cumberland, Maryland, are among approximately 20 participants in this scheme who have pleaded guilty to charges in the U.S. District Court for the District of Columbia. According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $42 million. The two men pleaded guilty on Jan. 20, to one count each of conspiracy to commit theft of public money and theft of public money.
U.S. District Judge Ellen S. Huvelle for the District of Columbia sentenced Gardner to serve 16 months in prison, 200 hours of community service and ordered him to pay $158,160 in restitution to the IRS, and sentenced Whittaker to serve 18 months in prison and ordered him to pay $397,090.95 in restitution to the IRS. The restitution ordered represents the value of the U.S. Treasury checks that were negotiated as a result of their conduct. Following their prison terms, the men will be placed on three years of supervised release.
According to the government’s evidence, Gardner and Whittaker participated in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of, and refunds were issued to, people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
According to documents filed with the court, Gardner and Whittaker obtained the means of identification of third parties, including names and social security numbers and provided them to a co-conspirator for use in the preparation of fraudulent income tax returns. Whittaker admitted to providing 21 means of identification from August 2010 to May 2012. He also permitted various residential addresses that he controlled to be used as purported taxpayer addresses for the delivery of tax refund checks and deposited U.S. Treasury checks that were received as part of this scheme into his bank accounts. Gardner admitted to providing 65 means of identification to a co-conspirator between August and December 2010, and his involvement in the filing of 116 fraudulent tax returns that sought refunds of approximately $299,984. Whittaker admitted that he was involved in the filing of 135 fraudulent tax returns that sought refunds of approximately $494,902.
The fraudulent tax returns that were filed as part of the scheme included Schedules C or C-EZ that falsely claimed that each “taxpayer” operated a business, such as “barber” or “childcare,” as a sole proprietorship. The returns falsely stated that the “taxpayer” had gross receipts and two or more dependent children, when, in fact, the “taxpayer” was either a victim of identity theft, was misled into providing his or her identifying information, or was a willing participant in the scheme.
Two other defendants recently were sentenced for their roles in the conspiracy:
Bernard Rankin, 44, of Glenarden, Maryland, was sentenced to serve 15 months in prison and ordered to perform 100 hours of community service and pay $190,487 in restitution. He pleaded guilty on Nov. 4, 2015, to conspiracy to defraud the United States with respect to claims. Rankin admitted permitting the use of his residential address and bank account in the scheme and recruiting another individual to take part as well.
Lakisha Jackson, 40, of District Heights, Maryland, was sentenced to serve six months in a halfway house and ordered to perform 100 hours of community service and pay $175,953 in restitution. She pleaded guilty on May 3, to one count of conspiracy to commit theft of public money. Jackson admitted that she allowed her residential address to be used in the scheme.
In announcing the sentences, Principal Deputy Assistant Attorney General Ciraolo, U.S. Attorney Phillips, Special Agent in Charge Jankowski, Inspector in Charge Mckeown and Assistant Inspector General Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialists Donna Galindo, Julie Dailey, and Jessica Mundi. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
Two Maryland Men Sentenced on Federal Charges for Roles in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
WASHINGTON – Two Maryland men were sentenced today for their involvement in a far-reaching stolen identity refund fraud scheme in which they worked with others to seek over $700,000 in income tax refunds through the filing of fraudulent federal income tax returns, announced U.S. Attorney Channing D. Phillips, Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge Terrence P. Mckeown of the U.S. Postal Inspection Service, Washington Division, and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Wayne Gardner, 50, of Capitol Heights, Maryland, and Michael Whittaker, 32, of Cumberland, Maryland, are among approximately 20 participants in this scheme who have pleaded guilty to charges in the U.S. District Court for the District of Columbia. According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $42 million. The two men pleaded guilty on Jan. 20, to one count each of conspiracy to commit theft of public money and theft of public money.
U.S. District Judge Ellen S. Huvelle for the District of Columbia sentenced Gardner to serve 16 months in prison, 200 hours of community service and ordered him to pay $158,160 in restitution to the IRS, and sentenced Whittaker to serve18 months in prison and ordered him to pay $397,090 in restitution to the IRS. The restitution ordered represents the value of the U.S. Treasury checks that were negotiated as a result of their conduct. Following their prison terms, the men will be placed on three years of supervised release.
According to the government’s evidence, Gardner and Whittaker participated in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of, and refunds were issued to, people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
According to documents filed with the court, Gardner and Whittaker obtained the means of identification of third parties, including names and social security numbers and provided them to a co-conspirator for use in the preparation of fraudulent income tax returns. Whittaker admitted to providing 21 means of identification from August 2010 to May 2012. He also permitted various residential addresses that he controlled to be used as purported taxpayer addresses for the delivery of tax refund checks and deposited U.S. Treasury checks that were received as part of this scheme into his bank accounts. Gardner admitted to providing 65 means of identification to a co-conspirator between August and December 2010, and his involvement in the filing of 116 fraudulent tax returns that sought refunds of approximately $299,984. Whittaker admitted that he was involved in the filing of 135 fraudulent tax returns that sought refunds of approximately $494,902.
The fraudulent tax returns that were filed as part of the scheme included Schedules C or C-EZ that falsely claimed that each “taxpayer” operated a business, such as “barber” or “childcare,” as a sole proprietorship. The returns falsely stated that the “taxpayer” had gross receipts and two or more dependent children, when, in fact, the “taxpayer” was either a victim of identity theft, was misled into providing his or her identifying information, or was a willing participant in the scheme.
Two other defendants recently were sentenced for their roles in the conspiracy:
Bernard Rankin, 44, of Glenarden, Maryland, was sentenced to serve 15 months in prison and ordered to perform 100 hours of community service and pay $190,487 in restitution. He pleaded guilty on Nov. 4, 2015, to conspiracy to defraud the United States with respect to claims. Rankin admitted permitting the use of his residential address and bank account in the scheme and recruiting another individual to take part as well.
Lakisha Jackson, 40, of District Heights, Maryland, was sentenced to serve six months in a halfway house and ordered to perform 100 hours of community service and pay $175,953 in restitution. She pleaded guilty on May 3, to one count of conspiracy to commit theft of public money. Jackson admitted that she allowed her residential address to be used in the scheme.
In announcing the sentences, U.S. Attorney Phillips, Principal Deputy Assistant Attorney General Ciraolo, Special Agent in Charge Jankowski, Inspector in Charge Mckeown and Assistant Inspector General Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialists Donna Galindo, Julie Dailey, and Jessica Mundi. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
Two Indicted for Dealing Herion Laced with CarentanilRead the Press Release
CINCINNATI – A federal grand jury today indicted two Cincinnati residents, alleging that they distributed heroin laced with carfentanil, a substance 10,000 times more powerful than morphine, causing serious physical harm to people who bought the drugs.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Detroit Field Division, Cincinnati Police Chief Eliot Isaac, Hamilton County Sheriff Jim Neil, Hamilton County Coroner Dr. Lakshmi Sammarco, other members of the Hamilton County Heroin Task Force including the Ohio Bureau of Criminal Identification in Ohio Attorney General Mike DeWine’s Office, and Springfield Township Police Department Chief Robert Browder announced the indictment.
The seven-count indictment alleges that Phillip Watkins, 31, and Jeanetta Crawford, 26, conspired in August 2016 to sell heroin from their residence in the Elmwood Place neighborhood of Cincinnati and that the drugs they sold resulted in serious physical harm including non-fatal overdoses to users.
Task force officers arrested Watkins and Crawford on a federal complaint on September 15 and brought them before U.S. Magistrate Judge Stephanie K. Bowman, who ordered them held without bond.
“The indictment alleges that the defendants distributed heroin containing fentanyl and carfentanil,” Glassman said. “The indictment also charges the defendants with conspiracy and operating drug-involved premises. Each defendant faces a mandatory minimum 20-year sentence and up to life in prison if convicted of conspiring to deal drugs that resulted in serious physical injury.”
According to the DEA, carfentanil is an analogue of fentanyl and is 10,000 times more potent than morphine. Carfentanil is used in veterinary practice to immobilize large animals.
DEA Special Agent in Charge Timothy Plancon stated, “As the DEA Special Agent in Charge of an area that incorporates Michigan, Ohio, and Kentucky, a week does not pass without me hearing from or about families who have been affected by the opioid epidemic. It is the job of the Drug Enforcement Administration to identify, target, disrupt, and dismantle drug trafficking organizations at the local, state, and international level. The DEA is working hand in hand with our local partners in this ongoing fight. When a drug trafficking organization distributes opioid based drugs that result in an overdose or a death, the traffickers are drawing undue attention onto themselves. The DEA is prioritizing our resources to target these traffickers for the harm that they inflict on the people who are battling addiction.”
U.S. District Judge Susan Dlott will preside over the case and schedule the next court hearings. Acting U.S. Attorney Glassman commended the investigation of this case by the Hamilton County Heroin Task Force, and Assistant U.S. Attorney Timothy D. Oakley, who is representing the United States in this case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
Two Charlotte Bloods Gang Members Plead Guilty for the the Double-Murder of Lake Wylie CoupleRead the Press Release
CHARLOTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that Jamell Lamon Cureton, 24, and Malcolm Jarrel Hartley, 23, pleaded guilty to murder and related charges, for their respective roles in the 2014 double-murder of Douglas and Deborah London in Lake Wylie, S.C. Cureton also took responsibility for a previously unsolved murder, the death of Kwamne Donqurius Clyburn, in August 2013 in Charlotte. U.S. District Court Judge Max O. Cogburn, Jr. presided over today’s plea hearings.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Chief Kerr Putney of the Charlotte-Mecklenburg Police Department; and Sheriff Bruce Bryant of the York County Sheriff’s Office in South Carolina join U.S. Attorney Rose in making today’s announcement.
At today’s court appearance, Cureton pleaded guilty to a total of 10 counts: two counts of murder in aid of racketeering for the deaths of Douglas and Deborah London; two counts of use and carry of a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the deaths of Douglas and Deborah London; one count of racketeering conspiracy; one count of Hobbs Act robbery; one count of assault with a dangerous weapon in aid of racketeering activity; one count of use or carry of a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence; one count of murder in aid of racketeering for the death of Kwamne Donqurius Clyburn; and one count of use and carry of a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the death of Kwamne Donqurius Clyburn.
Hartley pleaded guilty to a total of five counts: two counts of murder in aid of racketeering for the deaths of Douglas and Deborah London; two counts of use and carry of a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the deaths of Douglas and Deborah London; and one count racketeering conspiracy.
According to previous court filings, admissions contained in filed plea documents and today’s plea hearings:
Beginning at least in or about 2012, Cureton, Hartley and their co-defendants were members of the United Blood Nation gang (UBN or Bloods) in Charlotte. As UBN members, the defendants carried out violent acts for the purpose of protecting and furthering the gang’s power. Court documents show that the defendants operated according to a common set of Bloods’ rules and participated regularly in gang meetings to discuss, among other things, the commission of crimes, including robbery and murder.
Cureton, a.k.a. “Assassin” and “Murda Mel,” is a member of the Charlotte-area UBN and holds the rank of 5-Star General. As early as 2007, Cureton reported his affiliation with the UBN as a Valentine Blood. Law enforcement seized Cureton’s UBN “Book of Knowledge,” wherein he was identified as a 3-Star General and has since been promoted to a 5-Star General. As a 5-Star General, Cureton commanded the gang’s activities in the area. Hartley, a.k.a. “Silent” and “Bloody Silent,” is also a member of the Charlotte-area Valentine Blood set of the UBN. Hartley was “ranked up,” or “promoted,” to a 2-Star General, following the murders of Douglas and Deborah London.
On or about May 25, 2014, Cureton, Nana Yaw Adoma and David Lee Fudge robbed “The Mattress Warehouse” store, owned by the victims, Douglas and Deborah London, in Pineville, N.C. Federal charges were subsequently filed against Cureton, Adoma and Fudge in connection with the robbery. In the months that followed, Cureton communicated with Hartley and other UBN gang members and associates, including co-defendants Daquan Lamar Everrett, Randall Avery Hankins, II, Nehemijel Maurice Houston, Briana Shakeyah Johnson, Ibn Rashaan Kornegay, Centrilla Shardon Leach, and Rahkeem Lee McDonald to plan the murders of Douglas and Deborah London. In a letter Cureton sent from prison, Cureton explained that he ordered the murder of Douglas London because the victim was going to testify against him in court, and described Deborah London as “collateral damage.” The gang’s leadership authorized Hartley to proceed with the murder, and on or about October 23, 2014, Johnson drove Hartley to South Carolina, where Hartley shot and killed Douglas and Deborah London at their home.
Following the Londons’ murders, UBN leadership directed the gang members to “lay low” and to avoid contact with law enforcement. Cureton also told Hartley that from that point forward the topic of the victims’ murders was forbidden to be discussed and authorized action against any person who talked about it.
Today in court, Cureton also admitted that on August 22, 2013, Cureton, Adoma and Akheem McDonald murdered Kwamne Donqurius Clyburn, after luring him to Pressley Road Neighborhood Park, in Charlotte. Cureton admitted in court papers that the three gang members murdered Clyburn because they suspected that Clyburn was “false claiming” (falsely claiming to be a Bloods member), and because Clyburn failed a “DNA check,” meaning that they could not verify Clyburn’s claim to be a Blood.
“Cureton is responsible for the murders of three people, Kwamne Donqurius Clyburn, and Douglas and Deborah London. In 2013, Cureton participated in Clyburn’s murder to protect the gang’s reputation and to send a message to anyone who falsely claimed to be a Bloods member. A year later, Cureton ordered and orchestrated the murder of Douglas and Deborah London, and directed Hartley to take the lives of two innocent victims,” said U.S. Attorney Rose. “It is our hope that today’s guilty pleas will help bring closure to the families and friends of the three victims and allow the healing process to begin. We are thankful to the victims’ families for their continued support throughout this prosecution. I also commend the FBI for their outstanding investigative work and excellent cooperation and coordination with our local law enforcement partners in North and South Carolina,” Rose added.
“Jamell Cureton and Malcolm Hartley are violent and ruthless men who used their gang affiliations to commit heinous crimes against innocent victims. Due to the incredible cooperation and coordination between the FBI and our local law enforcement partners, they had no choice except to admit their crimes and accept their fate to spend the rest of their lives in federal prison. The FBI is pleased that the victims’ families will not have to relive the nightmare of what happened to their loved ones during a long trial,” said John Strong, the Special Agent in Charge of the Charlotte Division of the FBI.
At sentencing, Cureton and Hartley face a mandatory sentence of life in prison. In addition to Cureton and Hartley, co-defendants Fudge, Everett, Kornegay, Leach, Johnson, Houston and Rahkeem Lee McDonald previously pleaded guilty to federal charges, bringing to nine the total number of defendants who have entered guilty pleas in connection this prosecution. Sentencing dates for those defendants have not been set.
Three additional defendants, Adoma, Hankins and Ahkeem McDonald currently each face racketeering conspiracy charges. Ahkeem McDonald and Adoma are also charged with murder in aid of racketeering and use and carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the death of Kwamne Donqurius Clyburn. Adoma is also charged with Hobbs Act Robbery, assault with a dangerous weapon in aid of racketeering activity and use or carry of a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence for his role in the mattress store robbery. Randall Hankins is also charged with two counts of murder in aid of racketeering and two counts of use and carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the deaths of Douglas and Deborah London.
The investigation was led by the FBI with the invaluable assistance of CMPD and the York County Sheriff’s Office. In making today’s announcement U.S. Attorney Rose also thanked York County Solicitor Kevin Brackett for his support and assistance throughout the investigation and prosecution of this case.
Assistant U.S. Attorneys Elizabeth Greene and Don Gast are prosecuting the case.
Three Men Plead Guilty to Sex Trafficking ChargesRead the Press Release
BOSTON – Three men pleaded guilty today in U.S. District Court in Boston in connection with the sex trafficking of a minor.
Tyrell Gorham, a/k/a Sheek, 31, of Lewiston, Maine pleaded guilty to an indictment charging him with one count of sex trafficking a minor. Lee Young, a/k/a Chop, 34, of Brockton, and Chelanjei Greene, a/k/a Young, 34, waived indictment and pleaded guilty to conspiring to commit sex trafficking of a minor. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Dec. 14, 2016. If the Court accepts the guilty pleas, Gorham will be sentenced to 12 years in prison, Young to between 84 and 121 months in prison and Greene to between 72 and 100 months in prison.
An undercover law enforcement operation conducted in February 2015 identified a minor woman as a victim of a sex trafficking ring. Gorham recruited the minor from the Portland, Maine area, and Gorham and Young transported her and a friend to the Greater Boston area to work as prostitutes. With assistance from Greene, the minor and her friend posted an advertisement on Backpage.com, which was used to offer the sexual services of the women for a fee. The minor victim and her friend traveled to a motel in Woburn to meet a prospective client, who was actually an undercover law enforcement officer.
The charge of sex trafficking of a minor provides for a minimum mandatory sentence of 10 years and up to a lifetime in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charge of conspiracy to commit sex trafficking of a minor provides for a sentence of no greater than life 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 judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Federal Bureau of Investigation’s Boston Child Exploitation Task Force (CETF). Significant investigative assistance was provided by the FBI; the Boston Police Department Child Abuse and Human Trafficking Units; the Arlington, Malden, Norwood, Revere, Saugus, Woburn, and Brockton Police Departments; the Massachusetts State Police; and the Massachusetts State Police Human Trafficking Unit of the Massachusetts Attorney General’s Office.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Emily Cummings and Timothy Moran of Ortiz’s Civil Rights Enforcement Team.
Three Individuals Indicted for Tax Refund Fraud SchemeRead the Press Release
A federal grand jury sitting in Portland, Oregon returned an indictment, unsealed today, charging three individuals with federal crimes related to hundreds of false federal income tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Billy Williams for the District of Oregon.
Lawrence Collins and Icy Love Martin are charged with conspiring with Mystique Pratcher, who was charged elsewhere, to file at least 160 false federal income tax returns fraudulently claiming more than $680,000 in federal income tax refunds and theft of government funds. The indictment alleges that from approximately January 2009 through April 2012, Collins provided identities, addresses and bank accounts to Pratcher, which Pratcher used to prepare and file false federal income tax returns. The indictment further alleges that Collins provided Pratcher with a bank account in Martin’s name, to which Pratcher directed more than $20,000 in fraudulent refunds.
The indictment further charges Collins, Martin and Nigeria Crawford with conspiring to file at least 35 false federal income tax returns that fraudulently claimed more than $259,000 in federal income tax refunds. The indictment alleges that from approximately January 2012 through April 2014, Crawford prepared and filed false federal individual income tax returns using identities, addresses and bank accounts obtained through Collins. The indictment further alleges that Crawford directed more than $30,000 in fraudulently obtained tax refunds into Martin’s bank accounts and at least $32,000 in fraudulently obtained tax refunds to stored-value debit cards in Crawford’s name.
Martin also is charged with two additional counts of theft of government funds. Crawford also is charged with 14 counts of filing false, fictitious, or fraudulent claims, 14 counts of wire fraud, and four counts of aggravated identity theft arising out of the scheme, as well as two counts of theft of government funds for receiving $15,642 in Supplemental Nutrition Assistance Program benefits and $7,681 in Temporary Assistance for Needy Families benefits. The indictment alleges that, in applying for these benefits, Crawford failed to disclose wages and her receipt of fraudulently obtained individual income tax refunds.
If convicted, Collins, Martin and Crawford each face a statutory maximum sentence of 10 years in prison for each count of conspiracy to defraud the government, five years in prison for each count of filing false claims, 10 years in prison for each count of theft of government funds, 20 years in prison for each count of wire fraud and a mandatory consecutive sentence of two years for each count of aggravated identity theft. In addition, each defendant faces terms of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Billy Williams thanked special agents of the Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Leslie A. Goemaat and Assistant U.S. Attorney Quinn P. Harrington, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Stock Promoter and Registered Securities Representative Charged with Securities Fraud in Connection with Scheme to Fraudulently Register Shell Companies and Secretly Sell StockRead the Press Release
An additional stock promoter and a registered securities representative were charged with conspiracy to commit securities fraud in connection with a scheme to fraudulently register shell companies with the U.S. Securities and Exchange Commission (SEC), issue shares in the companies that they and other conspirators secretly controlled, and sell the shares to the investing public at a profit. To date, six defendants have been charged in connection with this fraudulent scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Eric I. Bustillo, Director, U.S. Securities and Exchange Commission (SEC), Miami Regional Office, made the announcement.
Sheldon R. Rose, 77, of Sarasota, Florida, and Ian C. Kass, 45, of Ft. Lauderdale, Florida, were charged by criminal information with one count of conspiracy to commit securities fraud, in violation of 15 U.S.C. §§ 78j(b) and 78ff(a), and 17 C.F.R. § 240.10b-5, all in violation of 18 U.S.C. § 371 (Case No. 16-CR-20706). Rose and Kass face a maximum statutory sentence of five years in prison and a fine up to $250,000 or double the proceeds of the offense. The case is assigned to U.S. District Judge Jose E. Martinez in Miami.
Daniel McKelvey, 49, of Foster City, California, and Jeffrey L. Lamson, 51, formerly of El Dorado Hills, California, previously pled guilty for their participation in the securities fraud conspiracy (Case No. 16-20546-CR-RNS). McKelvey is scheduled to be sentenced on December 15, 2016 and Lamson on September 8, 2016, before U.S. District Judge Robert N. Scola Jr.
Steven Sanders, 73, of Lake Worth, Florida, and Alvin S. Mirman, 78, of Sarasota, Florida, previously pled guilty for their participation in the securities fraud conspiracy (Case No. 16-20572-CR-CMA). They are scheduled to be sentenced before U.S. District Judge Cecilia M. Altonaga on October 27, 2016.
According to court documents, co-conspirators Sanders, Mirman, Rose, McKelvey, and Lamson would recruit individuals to serve as straw chief executive officers (CEOs) for shell companies. Specifically, Rose acted as a stock promoter and recruiter, and would inform the straw CEO that they would have no further role with the company and would only be paid when the business was later sold. Sanders, Mirman, Rose, McKelvey, and Lamson would prepare corporate documents for the shell companies, such as board meeting minutes, stock certificates and shareholder lists, all of which were false and fraudulent. The conspirators would submit these documents, as well as other false information, to the SEC on Form S-1 in order to register securities offerings in the name of the shell companies. The false filings would include representations as to the role of the straw CEO in the company and the intent and purpose of the company itself.
Once a company’s registration was effective, Sanders, Mirman, Rose, McKelvey, and Lamson would recruit individuals to serve as nominee shareholders, to make it appear that there was a group of shareholders that were unaffiliated with the company. This was done in order to create a class of unrestricted shares that could later be publicly traded. In reality, these nominee shareholders were promised a fixed amount of money once the company was ready to be sold, in exchange for allowing their names to be used as shareholders on subscription agreements. By obtaining control of all or nearly all of the purportedly unrestricted shares of the company without disclosure to the SEC or the public, the conspirators were in a position to subsequently sell or transfer the shares to others, or to the investing public, while avoiding the SEC’s prohibitions against insider trading or undisclosed trading by persons who exercise control over a public company.
The conspirators would also solicit broker-dealers, including Kass, a registered securities representative who worked for various broker-dealers, to provide false information to the Financial Industry Regulatory Authority (FINRA) to obtain authorization for the company’s shares to be publicly traded (“over the counter”). The conspirators would then seek buyers who would acquire control of the shell companies as well as the secretly controlled unrestricted shares. The buyer’s acquisition of the company would typically take the form of a “reverse merger,” and be publicly disclosed to the SEC and the investing public on a Form 8-K. The secretly controlled unrestricted shares would typically be transferred to a third party or other account designated by the buyer, and would not be disclosed to the SEC or the public.
The conspirators would also obtain the assistance of attorneys who would provide false and fraudulent opinion letters indicating that the shares held in the names of the straw shareholders, or the conspirators, were not owned or controlled by “affiliates” of the companies, and thus could be considered “free-trading” and not considered restricted. Thereafter, with the assistance of Kass, the conspirators would engage in fraudulent trading activity, including prearranged matched trades, with the shell buyers, in order to profit from the scheme, transfer ownership of the free-trading shares to the shell buyers, and avoid SEC reporting requirements pertaining to stock trades involving company insiders or 5% shareholders. In this way, the shell buyer would be in a position immediately to engage in stock swindles or other manipulation schemes.
According to court documents, Sanders, Mirman, Rose, McKelvey, Lamson and Kass collectively created at least 36 fraudulent shell companies between 2007 and 2014, and reaped more than $10 million in proceeds from the scheme.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the U.S. Securities and Exchange Commission’s Miami Regional Office, which today filed a civil enforcement action against Rose and previously charged several others for their involvement in the scheme. The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Alison Lehr.
An 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.
Statement by Assistant Attorney General John C. Cruden on the Presidential Memorandum on Climate Change and National SecurityRead the Press Release
Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division made the following statement regarding President Obama’s Presidential Memorandum on Climate Change and National Security. The memorandum announced today establishes a policy that the impacts of climate change must be considered in the development of national security-related doctrine, policies, and plans:
“Climate change presents real and in some cases imminent consequences for our nation’s environment and natural resources, but it will also gravely impact the entire world, our weather systems, the frequency of natural disasters and infectious disease, the viability of our coastal cities and the sustainability of our food, water resources and wildlife. It is nothing short of a threat to national security, world order and the rule of law. We must meet this threat to the planet we all share with courageous and far-sighted action.”
St. Louis Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
James C. Poynor, 38, of St. Louis, Missouri, was sentenced on September 20, 2016, in the United States District Court in East St. Louis, Illinois, for Failure to Register as a Sex Offender, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Poynor was sentenced to 33 months imprisonment, to be followed by 10 years of supervised release, and ordered to pay a $300 fine and a $100 special assessment.
The violation occurred after Poynor signed a Missouri Sex Offender Registration Form on July 2, 2014, then shortly thereafter, traveled to Illinois, where he resided until his arrest on July 12, 2015, without updating his Missouri Sex Offender Registration Form or registering as a sex offender in the State of Illinois. In 2007, a jury in Butler County, Missouri, found Poynor guilty of Child Molestation in the First Degree and Sexual Misconduct Involving a Child.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Sidney Man Sentenced to 40 Months for Heroin and Fentanyl TraffickingRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Shawn Figoli, 45, of Sidney, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to 40 months in prison and three years of supervised release for possession with intent to distribute heroin and fentanyl.
According to Court records, on May 17, 2015, the Maine State Police received a report of a vehicle being operated erratically on the Maine Turnpike. A trooper located the vehicle at the Kennebunk Service Plaza and determined that Figoli was its operator and sole occupant. Figoli appeared to be impaired and had a bag that contained about 180 grams of heroin and fentanyl.
This case was investigated by the Maine State Police and the U.S. Drug Enforcement Administration.
Shriever Man Sentenced for Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CLARK JAMES PELLEGRIN, JR., age 41, of New Orleans, was sentenced today after previously pleading guilty to a one count Bill of Information charging him with wire fraud in connection with a fraudulent debt collection scheme.
U.S. District Judge Ivan L.R. Lemelle sentenced PELLEGRIN to 21 months home confinement and 5 years probation. In addition, PELLEGRIN was ordered to pay restitution in the amount of $243,980.15.
According to court documents, PELLEGRIN, engaged in a multi-year scheme involving creditors on whose behalf he collected overdue debts from debtors. PELLEGRIN negotiated with debtors even though he had no authority to negotiate and made collections from debtors on behalf of 23 different creditors in the approximate amount of $243,980, which funds he converted to his own use, instead of paying the creditors.
U.S. Attorney Polite praised the work of the United States Postal Inspection Service. Assistant U.S. Attorney Patrice Harris Sullivan was in charge of the prosecution.
Seven indicted for operation of sham charityRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury has charged seven Eastern Panhandle residents with operating a fraudulent charity that generated millions of dollars in illegal revenue, United States Attorney William J. Ihlenfeld, II, announced.Brent Jackson, 45; Steve Crites, 45; James M. Crites, 72; Betty Crites, 68; Kristy Vanduzer, 43; Larry Webster, 68; and James R. "Jay" Crites, 37, all of Martinsburg, West Virginia were named in each count of a 53-count indictment returned on Tuesday and unsealed on Wednesday.
According to the indictment, the defendants operated illegal bingo and raffle games for a fraudulent charity known as Kids Against Drugs of W.V., Inc., and doing business as “Big Bucks Bingo." The games were purportedly arranged to benefit the Fraternal Order of Police #83 and the Berkeley County Humane Society but the defendants are alleged to have retained ninety percent or more of the revenue generated. The defendants also are alleged to have transferred funds generated during the bingo and raffle games to various commercial bank accounts in order to benefit themselves or businesses in which they had a personal interest.
According to Ihlenfeld, seizure warrants have been served upon bank accounts belonging to Kids Against Drugs of W.V., Inc., S&B Berkeley, LLC, and Berkeley Plaza, LLC, in order to freeze the funds contained in said accounts and to forfeit any funds traceable to federal criminal violations.
The defendants are each charged with fifteen counts of “Mail Fraud,” eighteen counts of “Money Laundering,” eighteen counts of “Illegal Monetary Transactions,” one count of "Money Laundering Conspiracy", and one count of “Illegal Gambling.”
The defendants face up to twenty years in prison and a fine up to $250,000 for each mail fraud count; up to twenty years in prison and a fine up to $500,000 for the money laundering conspiracy count; up to twenty years in prison and a fine up to $500,000 for each money laundering count; up to ten years in prison and a fine up to $250,000 for each monetary transactions count; and up to five years in prison and a fine up to $250,000 for the gambling count.Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
"Today’s indictments and arrests are the result of collaborative efforts to assure the residents of the Martinsburg area that law enforcement is vigilant at safeguarding their interests. Those who find ways to fraudulently benefit from non-profit organizations will be brought to justice,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “With both law enforcement and financial investigation expertise, IRS-CI agents are uniquely qualified to assist our law enforcement partners with these types of cases by following the money.”
Assistant U.S. Attorney Paul T. Camilletti is prosecuting the case on behalf of the government, and the matter was investigated by the Federal Bureau of Investigation and IRS Criminal Investigation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Rockford, Michigan, High School Coach Agrees to Plead Guilty to Hidden Videos of Girls Changing ClothesRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that Timothy Vallier, 30, of Plainfield Township, signed a plea agreement in which he agreed to plead guilty to federal charges of attempting to produce and possessing child pornography. Vallier was a Rockford Public High School rowing coach.
Vallier faces a minimum sentence of 15 years and a maximum of 50 years in federal prison. The exact term of imprisonment will be determined by the judge at a sentencing hearing on a date to be scheduled by the court. The offenses also carry a requirement for sex offender registration, a potential fine of up to $250,000 per count, financial compensation to the victims, and at least 5 years and up to a lifetime on intensive supervised release after incarceration, during which the court can impose a number of special conditions designed to protect children.
In the plea agreement, Vallier admits that between January 2012 and April 2016, he produced approximately 86 hidden camera videos of girls changing clothes at two high school facilities: the Rockford rowing team’s boathouse and the Rockford Freshman Center. The federal charges follow an investigation led by the Kent County Sheriff’s Department, the Michigan State Police Internet Crimes Against Children Task Force, and Homeland Security Investigations. Vallier has been in custody since his arrest on related state charges on July 10, 2016, which were dismissed in light of federal prosecution. The plea hearing has not yet been scheduled and will be held at the federal courthouse in Grand Rapids. Homeland Security Investigations and the U.S. Attorney’s Office are continuing to identify and notify victims.
This case is being prosecuted by Assistant U.S. Attorney Tessa K. Hessmiller as part of the Department of Justice’s Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
Homeland Security Investigations encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1- 800-THE-LOST. For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app or visit the online suspect alerts page.
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Public and Environment to Benefit from Proposed $12 Million Settlement with ExxonMobil for Natural Resource Damages from 2011 Yellowstone River Oil SpillRead the Press Release
The Departments of Justice and the Interior joined with the state of Montana today to announce a proposed settlement with ExxonMobil Pipeline Company to resolve claims stemming from the July 2011 oil spill into the Yellowstone River.
ExxonMobil Pipeline Company has agreed to pay $12 million in natural resource damages to the federal government and the state of Montana as trustees for the natural resources injured by the spill. A proposed consent decree was filed in federal court today. The state and federal government have also issued a draft restoration plan which sets forth proposed actions to restore the river and wildlife habitat, and improve public lands and recreational resources.
“This proposed settlement will restore this great natural resource for the people and the environment of Montana and its benefits will flow for generations to come,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This agreement will require Exxon Mobil Pipeline Company to make this river – upon which both people and wildlife depend for enjoyment and sustenance – whole again.”
“This settlement is an important part of the work being done to ensure that the 2.7 million miles of oil, gas and liquid chemical pipeline in this country remain safe and that when incidents occur, the operators assume responsibility for cleanup,” said U.S. Attorney Mike Cotter for the District of Montana. “This settlement was the product of significant collaborative work by federal and state negotiators over a number of years and sends a strong message to operators in this field that they must assume the costs and risks, as well as reaping the benefits, of extracting natural resources.”
“Montanans deserve and expect ExxonMobil Pipeline Company to be held accountable for the damages they caused to Montana’s Yellowstone River, our communities and our economy,” said Governor Steve Bullock for the state of Montana. “This proposed settlement goes a long way in protecting Montana’s Yellowstone River, one of the last, great, free-flowing rivers in the United States that plays a vital role in our strong $6 billion outdoor economy.”
“This settlement was reached through the efforts of the Montana Department of Justice’s Natural Resource Damage Program and the U.S. Departments of Justice and the Interior,” said Attorney General Tim Fox for the state of Montana. “Under a joint State-Federal restoration plan, also issued today for public comment, these funds will be used to restore and improve the environmental and recreational resources of this great river.”
The state and federal government are seeking public comment on both the proposed consent decree and the draft restoration plan.
On July 1, 2011, a 12-inch diameter Silvertip pipeline owned by ExxonMobil Pipeline Company ruptured near Laurel, Montana, resulting in the discharge of crude oil into the Yellowstone River and floodplain. The discharge is estimated to have been approximately 63,000 gallons (about 1,500 barrels) of oil. The discharge occurred during a high-flow event, affecting approximately 85 river miles and associated floodplain. Oil from the spill, along with the cleanup activities, harmed natural resources including fish and other aquatic life, birds (including migratory birds), wildlife, large woody debris piles, aquatic habitat, terrestrial habitat, recreational use and the services provided by these natural resources. These public natural resources are under Trusteeship of the state of Montana and the U.S. Department of the Interior under the Oil Pollution Act and other laws.
The primary goal of the Oil Pollution Act is to make the environment and public whole for injuries to natural resources and services resulting from a discharge of oil or other hazardous substances to the environment. In the restoration plan, the trustees have presented an evaluation of injuries to the natural resources, restoration alternatives and projects that benefit the same or similar resources injured by the oil spill.
Projects include:
- Acquiring terrestrial/riparian bottomland to conserve and restore terrestrial habitat with some acquisitions focusing on habitat requirements for injured birds;
- Acquiring and restoring terrestrial/riparian habitat;
- Controlling invasive woody species on state and federal lands;
- Acquiring channel migration or other easements or fee title land acquisitions to provide areas for large woody debris recruitment;
- Removing flanked riprap from the river;
- Removing side channel blockages;
- Providing fish passage around fish barriers;
- Restoring and stabilizing river banks using soft bank restoration techniques;
- Increasing American white pelican production through improvement of breeding and nesting areas;
- Improving city parks and public lands bordering the Yellowstone River;
- Improving urban fishing opportunities adjacent to the Yellowstone River;
- Developing new and preserving existing public access on the Yellowstone River.
The trustees evaluated a range of restoration alternatives that would provide resource services to compensate the public for losses pending natural recovery of resources injured by the oil spill. The trustees have identified preferred restoration alternatives designed to address the resource injuries. The trustees plan to work with project partners such as local, state and federal agencies and nonprofit organizations and landowners to implement the projects.
The trustees will host a public meeting to summarize key components of the restoration plan and hear public comment. The public meeting will be held on Wednesday, Oct. 12, at the Montana Fish, Wildlife and Parks conference room at 2300 Lake Elmo Drive in Billings, Montana, from 6:00 PM to 8:00 PM. The trustees will review and consider comments received during the public comment period when preparing the final restoration plan.
Today’s settlement, lodged with the U.S. District Court for the District of Montana, is subject to a 30-day public comment period following notification in the Federal Register and final approval by the court. To view the consent decree or to submit a comment, visit the department’s website: www.justice.gov/enrd/Consent_Decrees.html.
Project Safe Childhood Hinsdale Man Pleads Guilty to Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE: Dwight Smith, 44, of Hinsdale, New Hampshire, pled guilty on Wednesday in United States District Court for the District of New Hampshire to possessing child pornography, announced United States Attorney Emily Gray Rice.
A joint investigation by the New Hampshire Crimes Against Children Task Force, Homeland Security Investigations Manchester, and the Hinsdale, New Hampshire Police Department resulted in the seizure of a computer and an external hard drive from Smith’s Hinsdale residence. A search of those devices revealed dozens of videos and several hundred still images of child pornography.
Sentencing is scheduled for January 16, 2017. The defendant faces a maximum sentence of ten years in prison, at least five years of supervised release, and a fine of up to $250,000.
The case was investigated by the New Hampshire Crimes Against Children Task Force in conjunction Homeland Security Investigations Manchester, and the police departments of Hinsdale, Manchester, Portsmouth, and Hampton, New Hampshire.
The case is being prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Press Conference Advisory: Wednesday, September 21, 2016, at 1:00 p.m.Read the Press Release
There will be a press conference today at 1 p.m. to announce criminal civil rights and obstruction charges against five New York State correction officers involved in a November 2013 beating of an inmate at the Downstate Correctional Facility in Fishkill, New York. A relevant charging document is attached.
WHO:
Preet Bharara, United States Attorney for the Southern District of New York
William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation
William V. Grady, the District Attorney of Dutchess County
WHAT:
Press Conference
WHEN:
Wednesday, September 21, 2016 at 1:00 p.m.
WHERE:
U.S. Attorney’s Office, Southern District of New Yor
1 St. Andrew’s Plaza
New York, NY 10007
CONTACT:
James Margolin, Dawn Dearden, Nicholas Biase
(212) 637-2600
Philadelphia Felon Charged with Posession of A FirearmRead the Press Release
Naheem Stinnett, age 31, of Philadelphia, Pennsylvania, was charged today by Indictment with possessing a firearm on September 13, 2016, after having been convicted of a felony offense, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum of 10 years in prison, a special assessment of $100, a 3-year term of supervised release, and a potential fine.
The case was investigated by the Philadelphia Police Department and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jonathan B. Ortiz.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty
New Jersey Woman Admits Operating Unemployment Benefits Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that THERESA A. FREEMAN, 65, of Atlantic City, N.J., pleaded guilty yesterday before U.S. District Judge Janet Bond Arterton in New Haven to one count of conspiracy to commit wire fraud stemming from a scheme to defraud unemployment insurance programs in a “fictitious employer scheme.”
According to court documents and statements made in court, FREEMAN filed incorporation paperwork with the State of Connecticut for “Tribal Organic Products,” which she claimed was an internet business that she operated from an address in Trumbull, Connecticut. The business was, in fact, a fictitious company that did not engage in any business activity. In December 2012, FREEMAN’s son filed a claim with the Connecticut Department of Labor for unemployment insurance benefits, claiming that he was laid off from Tribal Organic Products. Between January 2013 and July 2013, FREEMAN’s son received approximately $13,474 in unemployment insurance benefits from the State of Connecticut.
In pleading guilty, FREEMAN also admitted that she previously operated similar fictitious employer schemes that defrauded both the Pennsylvania Department of Labor and Industries and the North Carolina Department of Commerce, Division of Employment Security of $16,253 and $14,136, respectively.
FREEMAN has a prior federal conviction in the District of South Carolina for mail fraud stemming from similar conduct.
Judge Arterton scheduled sentencing for December 13, 2016, at which time FREEMAN faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.
This investigation is being conducted by the U.S. Department of Labor – Office of Inspector General, U.S. Department of Homeland Security – Office of Inspector General, Office of the Chief State’s Attorney, Connecticut Department of Labor, Pennsylvania Department of Labor and Industries, and North Carolina Department of Commerce, Division of Employment Security.
The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Mortgage Broker Sentenced to A Year in Prison for Trading on Inside Information Stolen from Prominent New York Law FirmRead the Press Release
TRENTON, N.J. – The middleman in a five-year insider trading scheme was sentenced today to 12 months in prison for receiving numerous trading tips from a law firm source and passing the tips on to his broker-dealer to trade, yielding net profits of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.
Frank Tamayo, 43, of Brooklyn, New York, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of conspiracy to commit securities and tender offer fraud, one count of securities fraud, and one count of tender offer fraud. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Tamayo, a mortgage broker, admitted that from 2009 to 2013, he obtained material nonpublic information from his friend and former law school classmate, Steven Metro, 42, of Katonah, New York. Metro was then the managing clerk of the New York office of Simpson Thacher & Bartlett LLP, a law firm specializing in mergers and acquisitions. The inside information divulged by Metro to Tamayo concerned mergers, acquisitions, or tender offers in which the firm represented a party or financial advisor. As the firm’s managing clerk, Metro did not personally work on most these transactions. Instead, Metro stole the information by scouring the firm’s computer system for client names and the keywords “merger agreement,” “bid letter,” “engagement letter,” and “due diligence.”
After stealing material information, Metro would personally meet Tamayo at bars, coffee shops, or other locations near their Manhattan workplaces. Tamayo admitted that during these meetings, Metro gave him the names and ticker symbols of the companies whose securities should be purchased, the general timing of the planned deals, and information related to how the deals would affect the issuers’ stock price once public. Tamayo would write the security’s ticker symbol on a small piece of paper or napkin and then commit the information to memory.
Tamayo would then meet with his broker-trader Vladimir Eydelman, 44, of Colts Neck, New Jersey, who was employed first at Oppenheimer & Co. and later at Morgan Stanley. Tamayo and Eydelman met at locations near Eydelman’s workplace, including the large clock in New York City’s Grand Central Terminal. Tamayo admitted that during these meetings, he would show Eydelman the paper or napkin with the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo put the paper or napkin into his mouth and chewed it until it was destroyed.
Using the stolen information, Eydelman purchased securities for himself, family members, friends, and clients, including Tamayo. Eydelman quickly sold the shares and covered any options positions once the relevant deal was publicly announced and the stock price rose.
Tamayo admitted he reinvested the approximately $7,000 in profits that Metro made on the first deal, and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to “cash out” his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate Metro for the inside information.
By exploiting the material information that Metro stole from the firm, Tamayo, Metro and Eydelman netted more than $5.6 million in illicit profits over the course of the five-year insider trading scheme.
In addition to the prison term, Judge Shipp sentenced Tamayo to three years of supervised release, fined him $15,000, and ordered him to pay restitution of $1,056,969.69
Metro and Eydelman have both pleaded guilty to their roles in the scheme. On Sept. 14, 2016 Metro was sentenced to 46 months in prison. Eydelman is scheduled for sentencing on Sept. 30, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to today’s sentencing. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Robert Cohen and Joseph Sansone.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the Special Prosecutions Division of the U.S. Attorney’s Office in Newark, and R. Joseph Gribko of the U.S. Attorney’s Office in Trenton, as well as Unit Acting Chief Barbara Ward and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.
These charges are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Defense counsel: A. Ross Pearlson Esq. and Matthew E. Beck Esq., West Orange, New Jersey
Miami County Man Charged with Bank RobberyRead the Press Release
KANSAS CITY, KAN. – A Miami County man was charged in federal court Tuesday with robbing a bank in Overland Park, Acting U.S. Attorney Tom Beall said.
Paul A Sundquist, 29, Louisburg, Kan., is charged with a Sept. 19, 2016, robbery at the Stanley Bank, 7835 W.151st in Overland Park, Kan. A criminal complaint alleges Sundquist showed a clerk a note demanding money before receiving the cash and fleeing the bank. A bystander got a partial tag number on Sundquist’s pickup truck. Sundquist was monitoring police radio traffic on his cell phone. When he heard police had his tag number he called 911 and surrendered.
If convicted, he faces up to 20 years in federal prison. The FBI and the Overland Park Police Department investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Mexican national indicted for heroin and cocaine traffickingRead the Press Release
A Mexican national was charged with possessing more than six pounds of heroin and two pounds of cocaine, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Claudia Cazarez-Quintero, 37, was charged with one count each of possession with intent to distribute heroin and cocaine. Quintero possessed three kilograms of heroin and one kilogram of cocaine on Aug. 17, 2016, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Duncan Brown following an investigation by the Northern Ohio Law Enforcement Task Force and the Westlake Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mexican national charged with illegal reentryRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury returned an indictment charging Julio Cesar Leon-Dominguez, 37, originally from Mexico with illegal reentry into the United States, U.S. Attorney William J. Ihlenfeld, II, announced.Leon-Dominguez was allegedly discovered in August 2016 in Berkeley County, West Virginia after previously having been deported from the United States. He is charged with one count of “Reentry of Removed Alien.” He faces up to two years in prison and a fine up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is handling the case on behalf of the government. The United States Department of Homeland Security Immigrations and Customs Enforcement is investigating.An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Mexican National Sentenced to Twelve Years for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Joel Dominguez-Morales, 41, a Mexican national, was sentenced yesterday in federal court in Las Cruces, N.M., to 145 months in prison for his methamphetamine trafficking conviction. Dominguez-Morales will be deported after he completes his prison sentence.
Dominguez-Morales, a permanent resident from Mexico, was arrested on May 6, 2015, on a criminal complaint charging him with possession of methamphetamine with intent to distribute and participation in a conspiracy to distribute methamphetamine in Lea County, N.M., in May 2015. Dominguez-Morales, along with four co-defendants, Javier Amador-Flores, 49, Maria Marcelina Cardoza-Burciaga, 40, Jose Manuel Trujillo, 41and Myrna Orozco, 32, a U.S. citizen were later indicted on a charge of conspiracy to distribute methamphetamine in Lea County in May 2015.
Dominguez-Morales pled guilty to the indictment and admitted to participating in a conspiracy to distribute methamphetamine on Sept. 4, 2015.
Cardoza-Burciaga and Orozco previously pled guilty to participating in the methamphetamine trafficking conspiracy charged. Amador-Flores elected to proceed to trial and was found guilty July 20, 2016. The evidence at trial established that Amador-Flores participated in the methamphetamine trafficking conspiracy by receiving and storing shipments of methamphetamine at the residence he shared with Orozco. Other members of the conspiracy distributed the methamphetamine in Lea County.
According to court documents, on May 1, 2015, an undercover agent arranged to purchase methamphetamine from Trujillo. On May 6, 2015, Trujillo informed the undercover agent that Dominguez-Morales would be delivering the methamphetamine to the agent. Thereafter, Dominguez-Morales met with the undercover agent at a restaurant in Hobbs and directed the agent to meet him at an abandoned bar in a rural area outside of Hobbs, where a woman would deliver the methamphetamine. Later that day, law enforcement officers arrested Dominguez-Morales and Cardoza-Burciaga near the abandoned bar and seized almost four kilograms of methamphetamine.
Cardoza-Burciaga was sentenced on Aug. 17, 2016. At sentencing Orozco faces a statutory maximum penalty of 20 years in prison, and Amador-Flores faces a statutory mandatory minimum of ten years and a maximum of life in prison. Amador-Flores will be deported after completing his prison sentence.
Trujillo has yet to be arrested and is considered a fugitive. The charges against Trujillo are merely accusations and he is presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of Homeland Security Investigations, U.S. Customs and Border Protection and the Lea County Drug Task Force, with assistance from the Yoakum County (Texas) Sheriff’s Office. Assistant U.S. Attorneys Brock Taylor and Matthew Beck of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Mexican National Pleads Guilty to Illegal Re-EntryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FAUSTINO JUAREZ-CASTILLO, age 31, plead guilty today a one-count Indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the court documents, JUAREZ-CASTILLO was previously removed from the United States on October 28, 2011. JUAREZ-CASTILLO was found in the Eastern District of Louisiana on August 2, 2016, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
JUAREZ-CASTILLO faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentencing on January 18, 2017.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Mesa Man Sentenced to 7 Years in Federal Prison for Possession of Child PornographyRead the Press Release
PHOENIX – Today, Roberto Carlos Lopez, 30, of Mesa, Ariz. was sentenced by U.S. District Judge Steven P. Logan to 84 months in prison, followed by a term of lifetime supervised release. Lopez had previously pleaded guilty to possession of child pornography.
During the investigation, it was discovered that Lopez possessed 4 images and 296 videos of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christina J. Reid-Moore and Rachel R. Stoddard, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-15-0796-PHX-SPL
RELEASE NUMBER: 2016-083_Lopez
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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.
Members of Drug Trafficking Organization That Trafficked Multiple Thousands of Kilograms of Marijuana from El Paso to Dumas, Texas, and Elsewhere Plead GuiltyRead the Press Release
AMARILLO, Texas — Two men from Moore County, Texas, pleaded guilty yesterday afternoon to federal offenses stemming from their respective roles in a marijuana trafficking organization, announced U.S. Attorney John Parker of the Northern District of Texas.
Manuel Rodrigues Reyes, 48, and Maximilliano Gonzales, 50, both of Cactus, Texas, each pleaded guilty yesterday afternoon before U.S. District Judge Sidney A. Fitzwater to one count of conspiracy to distribute and possess with intent to distribute 1,000 kilograms or more of marijuana. Each faces a statutory penalty of not less than 10 years or more than life in federal prison and a $10 million fine. Manuel Reyes, who had been on bond, was continued on pretrial release pending sentencing. Maximilliano Gonzales has been in custody since his arrest in May 2016. Both are scheduled to be sentenced on January 18, 2017.
According to plea documents filed in the case, from approximately August 2006 through November 2015, Adan Reyes, along with his brother Guadalupe Reyes, operated a drug trafficking organization (DTO) that trafficked multiple thousands of kilograms of marijuana from El Paso, Texas, to the Dumas, Texas, area, and then to locations primarily in the Midwestern U.S. They transported the marijuana in various ways, including using vehicles and/or horse trailers with hidden compartments. Marijuana was also sometimes hidden inside bone meal.
Adan Reyes led the DTO. It employed people to transport as well as follow load vehicles from El Paso through the checkpoint, and from the checkpoints usually to the Dumas/Cactus, Texas, area, where the marijuana was warehoused at a ranch near Gruver, Texas. From the ranch, Adan Reyes used pickup trucks to drive 500 to 1,000 pound loads of marijuana to customers in the Midwest, including locations in Dodge City, Kansas, and Kansas City and St. Louis, Missouri. Proceeds from the marijuana sales were driven back to the ranch in Gruver. Adan and Guadalupe Reyes shared the drug proceeds. Different drivers were used to drive the money from Gruver to El Paso to deliver Adan Reyes’ share.
Manuel Reyes performed various tasks for the Reyes DTO, including assisting in tracking marijuana loads from El Paso to Cactus/Dumas, and he would ensure the loads made it to the ranch near Gruver, where he would assist in unloading it from vehicles arriving from El Paso and onto vehicles that would transport it to customers. He also counted the drug proceeds that were returned to the ranch and ensured the drivers were paid. On multiple occasions, he also transported cash proceeds from Cactus/Dumas to El Paso.
Maximilliano Gonzales was a driver for the Reyes DTO. He drove marijuana from the ranch in Gruver to customers and was paid for each load he transported. He used a work truck with a welder containing a false compartment to transport the marijuana.
When law enforcement conducted a search at the ranch in February 2016, investigators located a white Ford truck with a welding machine mounted to the truck bed. The welder contained a false compartment that housed packaging material, digital scales, and other items associated with marijuana trafficking. There were also papers in the truck stating the vehicle was registered to, and insured by, Maximilliano Gonzales. In addition, drug ledgers indicating payments to customers as well as payments to Manuel Rodrigues Reyes and Maximilliano Gonzales were found.
Reyes was paid approximately $1,000 per week for his services in working for the Reyes DTO, thus earning at least $150,000 during his employment. According to his plea agreement, Reyes agrees to forfeit $150,000 that represents a portion of the proceeds he obtained as a result of his criminal conduct.
Adan Reyes is currently being detained in the El Paso Division of the Western District of Texas where he is awaiting sentencing on charges related to his role in the Reyes DTO. Guadalupe Reyes has pleaded guilty to similar charges and is currently on bond pending his sentencing hearing before Judge Sidney A. Fitzwater, scheduled for November 15, in the Amarillo Division of the Northern District of Texas.
The case is being investigated by the Federal Bureau of Investigation, the Texas Department of Public Safety, the Moore County Sheriff’s Office and the Cactus Police Department. Assistant U.S. Attorney Sean Long is in charge of the prosecution.