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Thursday 28 July 2016
Hampton Roads Heroin Dealer Pleads Guilty to Distribution Resulting in DeathRead the Press Release
NORFOLK, Va. – Carlos A. Brown, 45, of Suffolk, pleaded guilty today to distribution of heroin resulting in death.
According to the statement of facts filed with the plea agreement, Brown sold heroin from his Portsmouth residence on County Street from June to November 2015. On Nov. 18, 2015, Brown contacted one buyer describing his heroin as a “missile.” Shortly thereafter Brown distributed that heroin and in the early morning hours of Nov. 21, 2015, Ryan Wilson, 27, of Chesapeake, was found dead having used Brown’s heroin. Even after learning of the death of Ryan Wilson, Carlos Brown continued to sell heroin. The law enforcement team, made of members of the FBI, Virginia State Police, and the Chesapeake Police Department, made four controlled purchases of heroin and fentanyl from Brown before they arrested him on April 21, 2016.
Brown faces a mandatory minimum sentence of 20 years in prison and a maximum penalty of life in prison when he is sentenced on Nov. 9, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after Magistrate Judge Douglas E. Miller accepted the plea. Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorneys Andrew C. Bosse and Joseph E. DePadilla are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-67.
Granite Bay Plaintiff’s Attorney Indicted for Tax OffensesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Stephen J. Dougan Esq., 57, of Granite Bay, charging him with two counts of assisting in the preparation of a false tax document and corruptly endeavoring to impede the due administration of the Internal Revenue Laws, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Dougan substantially underreported his income to his tax preparers in 2006 and 2007 and claimed certain business expenses to which he was not entitled, all to reduce his tax burden in those years. During an Internal Revenue Service audit of his 2006 tax return, Dougan provided his audit representatives with documents that underrepresented his gross income in 2006 in order to substantiate certain entries on his Schedule C for that year.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Michael M. Beckwith and Matthew M. Yelovich are prosecuting the case.
If convicted, Dougan faces a maximum statutory penalty of three years in prison and a fine of up to $100,000, or twice the value of the gross gain or loss from the tax violation, for each count of conviction. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Frazee Man Sentenced to 33 Months in Prison for Stealing Point-Of-Sale Credit Card ReadersRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of DANIEL MARTEZ WALKER, a/k/a “Ghost,” 24, for stealing and using credit card processing machines to steal approximately $215,000. WALKER, who pleaded guilty to conspiracy to commit access device fraud on April 13, 2016, was sentenced today before U.S. District Judge Susan R. Nelson in U.S. District Court in St. Paul, Minn.
“Identity theft crimes wreak havoc on business owners and consumers,” said Assistant U.S. Attorney Kate Buzicky. “Mr. Walker’s sentence shows the seriousness of these offenses, and the need to punish them appropriately.”
According to the defendant’s guilty plea and documents filed in court, from July to September 2014, WALKER conspired with others to steal point-of-sale (POS) machines from Twin Cities businesses, including bowling alleys and liquor stores. The conspirators used the stolen machines to process fraudulent “refunds” from the victim businesses. In total, WALKER and the co-conspirators used the stolen machines to cause 275 unauthorized refunds totaling more than $215,000 in losses to the victim businesses.
This case was the result of an investigation conducted by the United States Secret Service and Brooklyn Park Police Department.
This case was prosecuted by Assistant U.S. Attorneys Sarah Hudleston and Kate Buzicky.
Defendant Information:
DANIEL MARTEZ WALKER, 24
Frazee, Minn.
Convicted:
- Conspiracy to commit access device fraud, 1 count
Sentenced:
- 33 months in prison
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former St. Louis Police Officer Sentenced to over Four Years in Prison for Violating Civil Rights by Assaulting ArresteeRead the Press Release
A former St. Louis Metropolitan Police officer was sentenced to 52 months in prison late yesterday for depriving an arrestee, identified in court documents as M.W., of his civil rights by assaulting him and forcing a gun into his mouth while the victim was handcuffed, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Tammy Dickinson of the Western District of Missouri.
Thomas Carroll, 52, of St. Louis, admitted during his plea hearing that he punched M.W. in the torso while the victim was handcuffed. Based on evidence presented at the sentencing hearing, U.S. District Judge Henry E. Autrey of the Eastern District of Missouri found that Carroll forced his gun into M.W.’s mouth, and that M.W. sustained painful and obvious injury, which the defendant previously contested.
“When law enforcement officers abuse their authority, they not only violate the law but they also threaten the ability of responsible officers to earn the public trust and do their jobs effectively,” said Principal Deputy Assistant Attorney General Gupta. “The Civil Rights Division will continue to hold accountable law enforcement officers who abuse their power and break the law.”
“It’s a sad day when a uniformed police officer is sent to prison for violating the constitutional rights of a citizen,” said U.S. Attorney Dickinson. “No one is above the law, and no one has the right to take the law into their own hands. Now this disgraced officer will face the consequences of his violent crime. Our system of justice will hold him accountable for his betrayal of the community he swore to protect and serve.”
According to evidence presented at the plea and sentencing hearings, on July 22, 2014, M.W. was arrested at Ballpark Village near Busch Stadium in St. Louis because he was unlawfully in possession of a credit card that belonged to Carroll’s daughter. Carroll, who was on duty that night, responded to Ballpark Village and confronted M.W., who was already under arrest, handcuffed and seated in the backseat of another officer’s patrol car. Carroll yelled at M.W., telling him that he made a “huge mistake” and that he “broke into the wrong girl’s car.” Two other officers then drove M.W. to the central patrol police station and Carroll followed behind in his own patrol car.
Carroll admitted that despite orders from a superior officer to stay away from M.W., he entered the interview room where M.W. was handcuffed and being held. Carroll began yelling at M.W., questioning him about who broke into his daughter’s car and threatening him. Carroll then picked M.W. up and threw him into a wall. While M.W. was on the ground and still handcuffed, Carroll punched M.W. in the torso. Carroll then forced his department-issued service weapon into M.W.’s mouth and threatened to shoot him. The gun chipped M.W.’s teeth and bloodied his lip. M.W. also suffered significant pain and bruising to his torso and ribs.
In a separate but related case, Bliss Worrell, 28, of Clayton, Missouri, a former prosecutor for the St. Louis Circuit Attorney’s Office, was sentenced today to 18 months’ probation for concealing her knowledge of Carroll’s assault. Worrell pleaded guilty on Oct. 26, 2015, to misprision of a felony.
Worrell testified at Carroll’s sentencing hearing that while she was working as a prosecutor in the Misdemeanor Division, Carroll, with whom she had become close friends, bragged about assaulting M.W. and forcing his gun into M.W.’s mouth. Worrell admitted that she filed charges against M.W. without disclosing knowledge of the assault to her colleagues, supervisors or the judge assigned to setting a bond. She admitted during her guilty plea that she allowed the charges to stand despite later learning that the facts supporting the attempted escape charge were fabricated to cover for injuries that M.W. sustained during the assault.
These cases were investigated by the FBI’s St. Louis Division, in cooperation with the St. Louis Circuit Attorney’s Office and the St. Louis Metropolitan Police Department, which immediately alerted federal authorities upon learning of their employees’ misconduct. These cases were prosecuted by First Assistant U.S. Attorney David M. Ketchmark of the Western District of Missouri, who has been appointed as Special Attorney to the U.S. Attorney General, and Special Litigation Counsel Fara Gold of the Civil Rights Division. The U.S. Attorney’s Office of the Western District of Missouri is prosecuting these cases with the Civil Rights Division due to the recusal of the U.S. Attorney’s Office of the Eastern District of Missouri.
Former Spring Man Sentenced for Child Enticement and Explosives ConvictionsRead the Press Release
HOUSTON – A 34-year-old man who recently resided in Spring, now of Royse City, has been ordered to federal prison for enticing a minor and the unlawful making of a National Firearms Act weapon, announced U.S. Attorney Kenneth Magidson. Mark Duesterberg pleaded guilty April 8, 2016.
Today, U.S. District Judge Alfred H. Bennett sentenced Duesterberg to 120 months of imprisonment on each count to run concurrently. He will also serve a 10-year term of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
On May 28, 2015, Duesterberg communicated with an undercover agent, an individual whom he believed was a minor female. In the course of the email and text messages, he persuaded, induced and attempted to entice the female child to have sex with him. He made arrangements to meet the minor female to engage in sexual activity. He was promptly arrested upon his arrival at the agreed upon location. At that time, agents discovered seven pipe bombs within his vehicle.
The following morning, law enforcement traveled to Duesterberg’s Spring residence and conducted a search of the location. In the garage, they located 25 explosive bombs which he had not received prior permission to make. An expert later determined these were destructive devices and that the explosives within would propel metal, PVC and CPVC fragments at high velocities and in all directions. These explosives could cause property damage and would be capable of causing injury or death to persons near the explosion.
Additionally, agents found more pipe and pipe caps consistent with the completed pipe bombs, a roll of pyrotechnic fuse, three one-pound containers of gun powder as well as other materials that are consistent with the construction of the pipe bombs in Duesterberg’s truck and home.
Agents also located a gun safe in which they found An unregistered Romarm, model WASR-10/63, 7.62mm machine gun.
A search of the National Firearms Registration and Transfer Record indicated Duesterberg did not have a registration for the bombs or machine gun.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Houston Metro Internet Crimes Against Children Task Force conducted the investigation. Assistant U.S. Attorneys Steven T. Schammel and Kimberly Leo prosecuted the case.
Former Logan County gun shop employee sentenced to prison for Federal firearms chargeRead the Press Release
CHARLESTON, W.Va. – A former employee of a Logan County gun and pawn shop was sentenced today to 10 months in federal prison for a gun crime, announced Acting United States Attorney Carol Casto. Steven Adkins, 39, of Man, previously pleaded guilty to making and aiding and abetting a false statement relating to firearms purchases.
Adkins was an employee of Uncle Sam’s Loans, a gun and pawn shop in Man. Adkins fraudulently filled out federal forms required to be completed during a lawful firearms sale and directed others to fraudulently complete the forms. These types of transactions are commonly called “straw purchases.” The fraudulent forms reflected straw purchases because Adkins delivered the guns to individuals not named on the forms. Adkins engaged in more than 30 illegal straw purchases and transfers of firearms.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police conducted the investigation. Assistant United States Attorneys Erik S. Goes and Meredith George Thomas are in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Former IRS Employee Sentenced for Theft of Government FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Yvonne E. Borders, 43, of Cheektowaga, NY, who was convicted of theft of government funds, was sentence to two years probation by U.S. Magistrate Judge H. Kenneth Schroeder, Jr. The defendant was also ordered to pay restitution totaling $18,550 to the New York State Department of Labor.
Assistant U.S. Attorneys Maura K. O’Donnell and Elizabeth R. Moellering, who handled the case, stated that Borders applied for and collected unemployment benefits from the United States Department of the Treasury that she was not entitled to because she was working at the time for the Internal Revenue Service. Individuals are eligible for unemployment benefits when they become unemployed through no fault of their own and meet certain eligibility requirements. However, the defendant certified claims for benefits while she was employed as a contact representative with the IRS and failed to report this work to the New York State Department of Labor.
In total, Borders collected $18,550 in benefits that she was not entitled to from January 2009 through December 2013.
The sentencing is the result of an investigation by the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Robert E. O’Malley, U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Michael C. Mikulka, Special Agent-in-Charge of the New York Region, and the New York State Department of Labor, under the direction of Commissioner Roberta Reardon.
Former Fort Stockton Teacher Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
Javier Carlos Arteta Franco, a 58-year-old Venezuelan National and former elementary school teacher in Fort Stockton, faces between five and 30 years in federal prison after pleading guilty this afternoon to child pornography charges announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
Appearing before United States Magistrate Judge David Counts in Pecos, Arteta Franco pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography. By pleading guilty, Arteta Franco admitted that from December 2014 to August 2015, he used a file-sharing program to download to his personal computer videos and images of minors engaging in sexually explicit conduct.
On August 19, 2015, HSI agents executed a search warrant at the defendant’s residence and seized his laptop computer. A forensics analysis of the computer revealed the presence of child pornography that had been downloaded from the Internet. Arteta Franco has remained in federal custody since his arrest by HSI agents on August 19, 2015. A sentencing date has yet to be scheduled.
This case was investigated by the Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Alpine with assistance from the Fort Stockton Police Department and the Texas Department of Public Safety Criminal Investigations Division. Assistant U.S. Attorney Sandy Stewart is prosecuting this case on behalf of the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html.
First Two Defendants in Drug Conspiracy Sentenced to Combined 11 Years in Federal PrisonRead the Press Release
BOISE – Jocelin Jessica Gonzalez, 19, and Elizabeth Ann Gaytan, 37, both from Nampa, Idaho, were sentenced today for conspiracy to distribute controlled substances, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge sentenced Gonzalez to 40 months imprisonment. Judge Lodge sentenced Gaytan to 100 months imprisonment and ordered both Gaytan and Gonzalez to serve three years of supervised release following their terms of imprisonment. Gonzalez and Gaytan both pleaded guilty on May 5, 2016.
Gaytan and Gonzalez were indicted together as part of a case involving eleven co-conspirators who acted in concert to distribute methamphetamine, synthetic narcotics, heroin and prescription pills. They are the first two conspirators to be sentenced. The leader of the conspiracy, Stacy Duane Wilfong, 39, of Boise, Idaho, pleaded guilty on June 2, 2016 to conspiracy to distribute controlled substances and is scheduled to be sentenced on October 4, 2016.
In approximately January 2015, law enforcement agents began investigating ongoing drug distribution by Wilfong and others. Wilfong and his co-conspirators acted together to distribute methamphetamine, heroin, bath salts, and pills including oxycodone and hydromorphone in the Treasure Valley. Wilfong and Gonzalez were arrested on August 25, 2015 in Jackpot, Nevada. Law enforcement agents found approximately one ounce of methamphetamine in Gonzalez’s backpack. Agents searched Wilfong’s vehicle and located nineteen grams of a synthetic controlled substance called Alpha-pyrrolidinopentiophenone, known as "a-PVP," or “bath salts.” During the search of the vehicle, agents located three firearms and approximately $10,000.
According to the plea agreement, Gaytan sold methamphetamine to undercover police officers on nine occasions and offered to sell stolen firearms as well. In total, Gaytan sold approximately one-half pound of methamphetamine to officers. In March of 2015, Gaytan was stabbed thirty-seven times during a drug-related argument. After her release from the hospital, she continued to sell methamphetamine to undercover officers.
In addition to Gaytan and Gonzalez, three other co-conspirators have pleaded guilty and are awaiting sentencing. Wilfong is scheduled for sentencing on October 4, 2016. Regina Wade, 50, of Boise pleaded guilty on May 19, 2016, and is scheduled for sentencing on August 9, 2016. Anthony James Kitchen, 47, of Nampa, Idaho pleaded guilty on June 30, 2016, and is scheduled for sentencing on October 4, 2016. Two co-defendants have filed notices indicating their intent to plead guilty. Breeannyn Nicole Pederson, 25, of Parma, Idaho and Isela F. Garza, 36, of Nampa, Idaho are scheduled to enter their guilty pleas in court on August 4 and August 14, 2016, respectively. The remaining four co-conspirators who are currently scheduled for trial on October 4, 2016, are David Anthony Wales, 31, of Boise, John Matthew Caviness, Jr., 34, of Caldwell, Adam William Dillon, 28, of Nampa, and Jason Lee Burgess, 44, of Garden City.
These cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Federal Indictments Charge 21 Defendants with Trafficking of Prescription OpiatesRead the Press Release
Update (4/23/2018):
In March 2018, the U.S. Attorney’s Office dismissed all charges against the following defendants:
Rawshetta Tyneshia Patterson
Audrey Marie Zimmerman
James Edward Gill, Jr.
Renee Smith
Chrystal Jimelle Davis
PORTLAND, Ore. – A federal grand jury sitting in Portland, Oregon returned a 39-count indictment against Julie Ann Demille, 58, of Clackamas, Oregon, a nurse practitioner licensed in Oregon, Osasuyi Kenneth Idumwonyi, 55, of Spring, Texas, her office manager, and a total of 17 other coconspirator defendants in a case involving a conspiracy to engage in the illegal dispensation and distribution of the prescription opiates oxycodone and hydrocodone from the Fusion Wellness Clinic located at 2442 SE 101st Avenue, Suite 205, Portland, Oregon 97233. In a second related case, Idumwonyi and two other coconspirators were charged separately with conspiracies to distribute oxycodone. (See charging documents attached; list of defendants and ages at end of this release.)
The indictments state that the Fusion Wellness Clinic was a business established by Idumwonyi and Demille, from which Demille began issuing controlled substance prescriptions in January of 2015. Idumwonyi was living in Spring, Texas during the time of the offense conduct and flew weekly from Houston to Portland to assist with running the clinic operations. Demille lived at a residence in Estacada, Oregon during the time of the offense conduct. In addition to the overall conspiracy to dispense and distribute prescription opiates, the defendants are charged with multiple counts of distribution of oxycodone. Demille is also charged with two counts of making false statements to the Drug Enforcement Administration. Demille, Idumwonyi, and numerous other defendants charged in the two indictments, were arrested on Wednesday morning, July 27, 2016.
The federal charges arise after a 15-month, DEA led investigation in coordination with the Oregon State Board of Nursing. As alleged in the indictment, Demille and Idumwonyi are accused of working together to provide oxycodone and hydrocodone prescriptions for a $200 per visit cash fee, to coconspirator defendants, outside the scope of professional practice and not for a legitimate medical purpose. During the time the Fusion Wellness Clinic was in operation, Demille prescribed opiates to approximately 400 clinic customers.
“The unlawful dispensation and distribution of any controlled substances, especially addictive opiates such as oxycodone and hydrocodone, is a priority for the Department of Justice,” said U.S. Attorney Billy J. Williams. “We are committed to our partnership with federal, state, and local law enforcement, as well as state regulatory authorities, to hold responsible anyone who threatens the safety of our community through such conduct.”
“Rogue pain clinics facilitate the destruction of lives through drug abuse, addiction and even death,” said DEA Special Agent in-Charge Keith Weis. “This is a national crisis as we are losing record numbers of Americans from prescription drugs, heroin, and fentanyl overdoses. DEA works every day to attack those drug traffickers who prey on victims of addiction and facilitate drug trafficking-related violence in our communities.”
There is Crisis Line assistance available 24/7 for anyone in an addiction or mental health crisis who needs support or help finding an addiction or mental health provider in the Tri-County area as follows:
Multnomah County Crisis Line, 503-988-4888
Clackamas County 503-742-5335
Washington County 503-291-9111
Lines for Life is a 24-hour referral service at 800-273-8255, or http://www.linesforlife.org.
DEA is working to educate local communities as part of a DEA 360 Strategy. This strategy involves not only enforcement, but engaging with drug manufacturers, wholesalers, doctors and nurse practitioners to increase awareness of the opioid epidemic and encourage responsible prescribing. In addition, DEA is working with community partners to empower them with the tools to fight this epidemic. These partners include parents, caregivers, schools, after school organizations, faith-based organizations, the local business community and workplace, social services, the media, and prevention and treatment professionals, among others.
Local citizens can also assist DEA with tips by texting anonymously TIP411 (847411) and beginning your message with TIPDEA.
The unlawful dispensation and distribution of oxycodone and hydrocodone carries a maximum sentence of 20 years in prison and a fine of $250,000. An indictment is only an accusation of a crime, and all defendants are presumed innocent unless and until proven guilty.
The agencies participating in the investigation are the Drug Enforcement Administration, the Portland Police Bureau, and the United States Marshal’s Service. The case is being prosecuted by Assistant U.S. Attorney Patrick J. Ehlers.
Defendants / Ages / Community of Residence:
Julie Ann Demille
58
Clackamas, OR
Osasuyi Kenneth Idumwonyi
55
Spring, TX
Brandi Elaine Elwood
33
Portland, OR
Jermaine Lamar Scott
39
Beaverton, OR
Brandon La’Chon White
45
Portland, OR
Preston Bethoven Thomas
37
Portland, OR
Ann Leashell Preston
45
Portland, OR
Rawshetta Tyneshia Patterson
35
Portland, OR
Leron Lamar Richards
32
Vancouver, WA
Jeron Lamont Richards
32
Portland, OR
Audrey Marie Zimmerman
30
Portland, OR
James Edward Gill, Jr.
33
Portland, OR
Renee Smith
54
Portland, OR
Arthur Allen Hayes, Jr.
36
Portland, OR
Ruben Lewis, IV
42
Portland, OR
Chrystal Jimelle Davis
32
Gresham, OR
Frederick Lee Washington
60
Portland, OR
Martin Andrew Menefee
34
Portland, OR
John Edward Cox, Jr.
55
Portland, OR
DeWayne Taylor
63
Portland, OR
Federal Fraud Charges Filed Against Former Las Vegas Water District Employee in Ink/Toner Cartridge SchemeRead the Press Release
LAS VEGAS, Nev. – A former employee of the Las Vegas Valley Water District has been indicted by the federal grand jury on multiple mail fraud charges for her role in a scheme to defraud the public utilities company of over $6.7 million, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Nevada residents pay for this type of financial fraud through inflated costs and loss of faith in government,” said U.S. Attorney Bogden. “We are committed to the vigorous enforcement of financial fraud crimes, and encourage residents to report suspected financial crimes to your local police department or the FBI.”
Jennifer J. McCain-Bray, aka JJ McCain, 41, of Las Vegas, is charged with six counts of mail fraud and criminal forfeiture. McCain was arrested this morning in Las Vegas by FBI Special Agents, and appeared this afternoon before U.S. Magistrate Judge George Foley, Jr. for an initial appearance and arraignment and plea. McCain pleaded not guilty to the charges and was released on a personal recognizance bond pending trial. If convicted, she faces up to 20 years in prison and a $250,000 fine on each count.
According to the indictment, McCain began working for the Las Vegas Valley Water District (LVVWD) in October 2001 as an office assistant. In February 2004, she was promoted to purchasing assistant, and in October 2007, she was promoted to purchasing analyst. McCain was responsible for transmitting orders and payments to vendors when particular products were requested from LVVWD departments and employees. From about Jan. 1, 2007, to Dec. 7, 2015, McCain and unidentified others allegedly devised the scheme to defraud the LVVWD by fraudulently representing that McCain’s purchases of ink and toner cartridges were for the LVVWD, when they knew that the products were for the benefit of a New Jersey company which received and resold the cartridges for its own profit. McCain instructed the vendor to ship the ink and toner cartridges from California and other locations to her at her LVVWD office in Las Vegas. McCain then relabeled the packages and shipped them to the New Jersey company. In exchange, the New Jersey company transferred money and other things of value to McCain’s personal PayPal account. Between 2007 and 2015, McCain fraudulently purchased approximately $6.7 million in ink and toner cartridges with LVVWD funds.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Patrick Burns.
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.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
East St. Louis Man Sentenced to 30 Years for Sex Trafficking Children by Force, Fraud, and CoercionRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Michael Johnson, a former resident of East St. Louis, Illinois, was sentenced yesterday by United States District Court Judge Staci M. Yandle to 360 months in federal prison for one count of conspiracy to commit sex trafficking of children by force, fraud, and coercion and three counts of child sex trafficking by force, fraud, and coercion all to run concurrently with each other and with another federal sentence Johnson is already serving. Judge Yandle also sentenced Johnson to five years of supervised release to follow the imprisonment and a $400 special assessment fee.
Facts revealed in open court at the sentencing and plea hearings established that from about late 2009 or early 2010, Johnson and another recruited four girls under the age of 18 on chat lines, online, or simply walking down the street. Using actual physical violence or fear of violence, lies, and mental manipulation, Johnson made the girls have sex with men for money, which he kept. Johnson knew or recklessly disregarded the fact that the girls were under the age of 18 at the time.
In praising Judge Yandle’s sentence, United States Attorney Boyce commented: "Most people don’t believe that children could be forced or tricked into prostitution, let alone that it would happen right here in the Southern District of Illinois. But it is true. As this prosecution demonstrates, our own children are forced by fear, lies, manipulation, and threats of violence into selling sex for money. Our children deserve better. My office, in conjunction with our law enforcement partners, stands firmly committed to prosecuting those who sexually exploit children. I whole-heartedly commend the four victims in this case for their courage to be heard and their resolve to tell their stories. I am confident that the sentence imposed brings the victims some healing. I encourage the people of this great district to contact the Federal Bureau of Investigation or their local police if they see or know that a child has fallen victim to sex trafficking."
Special Agent in Charge, Sean M. Cox, with the Federal Bureau of Investigation further commented: "Protecting children from those in our communities who would do them harm is of paramount importance, and it is a responsibility we all bear. In the FBI, as we learn of children being victimized, we will use all legally available tools within our disposal to identify and bring to justice those who would exploit children for their own benefit. Beginning in late 2009, Michael Johnson began to recruit minor-aged girls who he then trafficked for the purpose of prostitution. Johnson took advantage of these children, preying on them because of their life situation. To control his victims, he used fear and intimidation. I commend FBI Special Agent Tyrone Forte and Assistant United States Attorney Monica Stump for making our community a safer place and for obtaining justice for those individuals who were exploited and victimized because of the actions taken by Johnson."
The case was investigated by the Federal Bureau of Investigation, Springfield Division and members of the division’s Child Exploitation Task Force in Fairview Heights. Assistant U.S. Attorney Monica A. Stump is prosecuting the case.
Eagle Woman Sentenced to Five Years’ Probation for Obtaining Controlled Substances by Fraud and Identity TheftRead the Press Release
BOISE – Susan Roberts, 57, of Eagle, Idaho was sentenced yesterday for obtaining controlled substances by fraud and identity theft by unauthorized use of a means of identification, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge sentenced Roberts to five years’ probation and to pay a $2,000 fine. Roberts pleaded guilty on May 4, 2016.
According to filed court documents, Roberts worked at a medical center that had offices in Nampa and Boise, Idaho. As a result of her employment, she had access to doctors’ names and DEA numbers and knowledge of the prescription writing process. Between October 2014 and February 2015, Roberts knowingly and intentionally forged approximately eleven prescriptions for hydrocodone-acetaminophen 10-325, a Schedule II controlled substance. In particular, she forged prescriptions using the names of Dr. H. and Dr. A, and using their assigned DEA registration numbers. These were actual doctors and their names and DEA numbers constituted means of identification as defined at 18 U.S.C. § 1028(d)(7). Roberts presented the forged prescriptions to pharmacies, and received by fraud approximately 1,320 dosage units (pills) of hydrocodone-acetaminophen 10-325, which is commonly referred to by the name brands Norco, Vicodin, or Lortab.
The case was investigated by the DEA Office of Diversion Control, assisted by the Tactical Diversion Squad.
Dauphin County Man Indicted Federally for Drug Trafficking and Possession of A Firearm in Furtherance of Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Dauphin County man was indicted by a federal grand jury on July 27, 2016, for distribution of cocaine base, also known as crack cocaine, possession with intent to distribute over 28 grams of cocaine base, and possession of a firearm in furtherance of a drug trafficking crime.
According to United States Attorney Peter Smith, the grand jury alleges that Torray D. Eden, age 30, distributed cocaine base in Harrisburg, Pennsylvania on June 14, 2016. A search of Eden’s vehicle located approximately two ounces of cocaine and a firearm with an obliterated serial number. During the drug deal Eden allegedly possessed this firearm in furtherance of the drug transaction.
This case was investigated by the Drug Enforcement Administration and the Harrisburg Bureau of Police. The case is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for Count 1 is 40 years’ imprisonment, a term of supervised release following imprisonment, and a $5,000,000 fine; Count 2 is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine; Count 3 is life imprisonment, a term of supervised release following imprisonment, and a $250,000 fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Convicted Minneapolis Gang Member Sentenced to Additional 70 Months in Prison for Ordering Retaliatory Violence Against WitnessesRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of TYWIN BENDER, a/k/a “Finn Winn,” 26, to a total of 130 months in prison for attempting to retaliate violently against federal witnesses. On April 7, 2016, following a three-day trial before Senior U.S. District Court Judge Richard H. Kyle, a jury found BENDER guilty of conspiracy to retaliate against two federal witnesses. Bender previously had pleaded guilty to federal firearms charges in a related case. Today he was sentenced to 60 months on the firearms charge and 70 months consecutive for the witness retaliation charge.
“Our system of justice depends on the willingness of witnesses to take the stand and testify truthfully,” said Assistant United States Attorney Jeffrey Paulsen. “When Tywin Bender ordered two federal witnesses to be beaten in retaliation for their testimony against a violent gang leader, he committed an assault on the judicial system itself. This prosecution shows that such assaults will not go unpunished.”
BENDER, a known member of the Stick Up Boys street gang based in North Minneapolis, was charged in November 2014 in an 11-defendant indictment for conspiracy to commit the crime of being a felon in possession of firearms, a crime to which BENDER pleaded guilty. One of his co-defendants, Veltrez Black, a/k/a “Chief,” was also charged in that indictment and exercised his right to go to trial. Two other gang members, Antonio Lewis and Kibbie Walker, testified against Black at trial. On October 22, 2015, a jury found Black guilty of all charges against him.
As proven at BENDER’s witness retaliation trial, the day after Black’s conviction, BENDER used a prison phone to call an accomplice who was not incarcerated and dictated an email for her to send to two fellow gang members, D.W. and D.G., who were confined at Minnesota Correctional Facility – Rush City, which is the same facility where witnesses Lewis and Walker were then held. The email stated, “the nigga bogus [Lewis’s nickname] is a rat. he took the stand on chief. smash him as soon as you see him. green light. the nigga Kibbie took the stand too on chief. let everybody know. no talking no explanations.” The plot was foiled when an alert Department of Corrections employee noticed the threatening language in the email and steps were taken to protect the intended victims.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Paulsen.
Defendant Information:
TYWIN BENDER, a/k/a/ “Finn Winn,” 26
Stillwater, Minn.
Convicted:
- Conspiracy to possess firearms as a convicted felon, 1 count
- Conspiracy to retaliate against a federal witness, 1 count
Sentenced:
- Firearms charge – 60 months
- Witness retaliation charge – 70 months consecutive
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Contractor Charged with Embezzlement, Fraud and Unpermitted Discharges of Pollutants into Susquehanna River in Connection with the George Wade Bridge ProjectRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal Grand Jury in Harrisburg has indicted Andrew Manganas, and Panthera Painting, Inc., on embezzlement, fraud, false statements, and environmental charges related to a subcontract performed as part of a $42 million rehabilitation project administered by the Pennsylvania Department of Transportation (PennDot).
The Project
According to United States Attorney Peter Smith, Manganas, age 59, is a resident of Canonsburg, Washington County, Pennsylvania, and his company, Panthera Painting, Inc., is also headquartered in Canonsburg.
In September 2009, PennDOT awarded a contract for rehabilitation work on the George Wade Bridge to J.D. Eckman, Inc. (Eckman), as the prime contractor.
The George Wade Bridge spans the Susquehanna River on Interstate 81 in Cumberland and Dauphin Counties, Pennsylvania. The Federal Highway Administration (FHWA) of the U.S. Department of Transportation conducted reviews and approvals during the project’s design and construction phases. The contract amount was $42,480,434 with the FHWA’s federal-aid programs reimbursing 90 percent of that cost. In October 2009, Panthera was awarded a $9,875,000 subcontract by Eckman. The subcontract covered the blasting, resurfacing, and painting of the structural steel on the George Wade Bridge. The subcontract amount ultimately rose to approximately $10 million.
The Embezzlement, False Statement and Fraud Charges
The federal oversight and funding of the contract required each contractor and subcontractor to submit Certified Payroll Reports for every worker and every pay period to certify that the appropriate federally established prevailing wage was being paid to each worker.
Manganas and Panthera allegedly embezzled money from benefit and pension plans by engaging in a “side payroll” scheme through which workers on the George Wade Bridge Project received two checks, one for regular hours and a separate “per diem” check. The “per diem” checks allegedly were for overtime hours worked and did not include required contributions to the workers’ union welfare benefit and individual employee’s pension plans. The Indictment alleges that approximately $400,000 was embezzled from union benefit and workers’ pension plans by Manganas and Panthera between 2011 and 2013.
The Indictment also charges the defendants with 21 separate counts of making and using false statements in a matter within the jurisdiction of the FHWA by causing false certified payroll reports relating to workers on the George Wade Bridge project to be submitted to the agency between 2011 and 2013. The defendants are also charged with 21 counts of wire fraud by causing the FHWA to wire payments from the Federal Highway Trust Fund to the Commonwealth of Pennsylvania which included payments for work performed by the defendants. The alleged loss of wages of workers Panthera used on the project was approximately $208,879, as a result of the failure to pay the federally established prevailing wages
Environmental Charges
The Indictment charges that the defendants knowingly caused discharges of pollutants into the Susquehanna River during and connected with work on the George Wade Bridge project. The Federal Clean Water Act and its regulations, and the project’s contract, prohibit the discharge of pollutants without a permit. Panthera and Manganas were supposed to use methods to ensure that pollutants did not enter the Susquehanna River, including construction of “containment” to cover bridge areas being blasted clean and repainted, using ropes, cables, fabric, metal pans and waste collection and recycling systems on segments of the bridge being blasted and repainted to prevent pollutants from being discharged into the River.
The Indictment alleges that between 2011 and 2013, Panthera workers, at the direction of and with the knowledge of defendant Manganas, in fact used a variety of methods and equipment to discharge pollutants, including abrasive paint blasting materials, waste paint, and metal, into the Susquehanna River, rather than collect them for recycling or disposal as hazardous waste. These techniques allegedly included, blasting paint off metal pieces outside areas in which the workers had set up containment to capture waste material (open blasting), using air hoses connected to blasting equipment to blow debris off bridge components into the River, setting up containment in which the fabric had holes, having workers poke holes in containment to let wastes discharge into the River, pushing waste off the side of the bridge, and tipping over metal pans used to collect paint waste, all without a permit to do so.
“Businesses receiving federal funds have an obligation to do honest, transparent work in return,” said FBI Special Agent in Charge William F. Sweeney Jr. “Anything less is a violation of public trust and a waste of taxpayers’ money. The FBI will continue its work to ensure that fraudsters are thoroughly investigated and brought to justice.”
“The indictment handed down today against Andrew Manganas, owner of Panthera Painting Company, Inc., on charges including wire fraud and false statements demonstrates the strong commitment of the Department of Transportation and the Office of Inspector General to ensuring the integrity of the Federal-aid Highway Program,” said Douglas Shoemaker, U.S. DOT OIG regional Special Agent-in-Charge. “Working with our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our Nation’s infrastructure from fraud, waste, abuse and violations of law.”
“Unpermitted discharges of pollution threaten our lakes, rivers and streams and can pose serious risks to public health and our communities,” said Jennifer Lynn, Assistant Special Agent in Charge of EPA's criminal enforcement program in the Middle Atlantic States. “Today’s indictment demonstrates that EPA and its partner agencies will aggressively investigate and prosecute actions that put our waterways at risk.”
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This matter was investigated by the U.S. Department of Labor, Office of Inspector General; the U.S. Department of Transportation, Office of Inspector General; the U.S. Environmental Protection Agency, Criminal Investigation Division; and the Federal Bureau of Investigation. Prosecution is assigned to Assistant U.S. Attorney James T. Clancy and Special Assistant U.S. Attorney Martin Harrell of the EPA Region 3 Office in Philadelphia.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The embezzlement offense carries a maximum penalty of up to 5 years in prison and a $250,000 fine; the false statement charges each carry a maximum penalty of up to 5 years in prison and a $250,000 fine; the wire fraud charges each carry a maximum penalty of up to 20 years in prison and a $250,000 fine; the Clean Water Act charges each carry a maximum penalty of up to 3 years in prison, and a fine of up to $50,000 per day of violation, a term of supervised release following imprisonment, and a fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Columbia Business Owner Pleads Guilty to Conspiracy to Distribute Synthetic DrugsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of Bocomo Bay, a Columbia, Mo., retail business, pleaded guilty in federal court today to his role in a conspiracy to distribute more than $2 million of synthetic marijuana, commonly referred to as K2.
Kevin E. Bay, 47, of Columbia, pleaded guilty before U.S. District Judge Brian C. Wimes to participating in the drug-trafficking conspiracy and to participating in a money-laundering conspiracy.
Bay, the owner of Bocomo Bay, admitted that he participated in a conspiracy to distribute controlled substance analogues, also known as synthetic marijuana or K2, from March 1, 2011, to Oct. 2, 2013. K2 is a mixture of plant material that has been sprayed or mixed with a synthetic chemical compound similar to THC (tetrahydrocannabinol), the psychoactive ingredient in marijuana. K2 products are often labeled as “incense,” but in reality are intended for human consumption as a drug.
Bay admitted that he purchased synthetic marijuana from various wholesalers, repackaged and relabeled the substances under his own “Bocomo Spice” label and sold them through his Bocomo Bay outlets. This conspiracy was responsible for the distribution of between 214 kilograms and 482 kilograms of synthetic marijuana.
Bay also admitted that he conspired with others to conduct financial transactions involving the proceeds of the illegal distribution of synthetic marijuana with the intent to promote the carrying on that activity. Bay transferred a total of $49,482 from the drug-trafficking proceeds in a series of transactions between bank accounts.
Under federal statutes, Bay is subject to a sentence of up to 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Catherine Connelly. It was investigated by the Drug Enforcement Administration.
Synthetic Designer Drugs
Over the past several years, smokable herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular, particularly among teens and young adults, because they are easily available and, in many cases, they are more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These synthetic cannabinoids are sold at a variety of retail outlets, in head shops and over the Internet. Brands such as K2, Spice, Blaze, and Red X Dawn are labeled as incense to mask their intended purpose. However, they have not been approved by the Food and Drug Administration (FDA) for human consumption or for medical use, and there is no oversight of the manufacturing process.
While many of the designer drugs being marketed today are not specifically prohibited in the Controlled Substances Act, the Controlled Substance Analogue Enforcement Act allows these drugs to be treated as controlled substances if they are proven to be chemically and/or pharmacologically similar to a Schedule I or Schedule II controlled substance. This analogue provision specifically exists to combat these new and emerging designer drugs.
Canandaigua Man Indicted for Threatening to Kill VA Employees in AlbanyRead the Press Release
ALBANY, NEW YORK – Robert J. Seifert, age 58, of Canandaigua, New York, was indicted today on charges that he threatened to commit a mass shooting at the Stratton VA Medical Center in Albany.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Jeffrey G. Hughes of the U.S. Department of Veterans Affairs (VA) Office of Inspector General, Northeast Field Office.
According to the indictment, Seifert made phone calls on June 15, 2016 in which he threatened to kill a VA Police Officer, “kill everybody at the Albany VA,” and go to the Stratton VA Medical Center “with my Uzi and … start shooting people up.” The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Seifert has been in custody since July 14, when he was arrested in Buffalo on a criminal complaint. U.S. Magistrate Judge H. Kenneth Schroeder, Jr., of the Western District of New York, ordered Seifert detained pending his initial appearance in Albany. Seifert will appear in Albany at a later date.
If convicted on all charges, Seifert faces up to 10 years in prison and up to 3 years of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the U.S. Department of Veterans Affairs Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Canadian Man Pleads Guilty to Drug Charges Following Extradition to United States in Case Involving Largest Seizure of Cocaine in District HistoryRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr, announced today that Gursharan Singh, 33, of Brompton, Ontario, Canada, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, before U.S. District Judge Senior U.S. District Judge William M. Skretny. The charge carries a mandatory minimum sentence of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between 2007 and May 2011, Gursharan conspired with others to smuggle cocaine into Canada from the United States via several international bridges located including ones in the Buffalo-Niagara region. Investigators believe that this organization trafficked approximately 2,000 kilograms of cocaine (approximately $80,000,000 in value) during the course of the conspiracy.Singh was indicted along with Alvin Randhawa and Harinder Dhaliwal who are still facing charges. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Also charged in the conspiracy were Ravinder Arora, Michael Bagri and Parminder Sidhu. All three defendants have been convicted.
Dhaliwal pleaded not guilty at his arraignment and is being detained pending trial. Extradition proceedings are underway to bring Alvin Randhawa and Gursharan Singh, who are also in Canada, to the Western District of New York.
Today’s plea is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Officers from the United States Customs and Border Protection, under the direction of Rose Hilmey, Acting Director of Field Operations, the Peel Regional Police Department, under the direction of Chief Jennifer Evans, the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region and the Toronto Police, under the direction of Chief William Blair.Sentencing is scheduled for November 16, 2016 at 2:00 p.m. before Judge Skretny.
Brooklyn Man Sentenced to Life for Murder to Obstruct Bank Fraud InvestigationRead the Press Release
This afternoon, Naquan Reyes was sentenced to life imprisonment by United States District Judge Sandra L. Townes at the federal courthouse in Brooklyn, based on his conviction for murdering Nicole Thompson. Judge Townes also imposed a forfeiture judgment in the amount of $184,000. According to court filings, and as admitted by Reyes during his guilty plea, Reyes paid another individual to murder Ms. Thompson to prevent her from cooperating with law enforcement and undermining a lucrative and long-standing scheme to defraud banks in the New York area.
The plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and David E. Beach, Special Agent-in-Charge, United States Secret Service, New York Field Office.
As alleged in the government’s sentencing memorandum, between 2008 and his arrest in 2014, Reyes perpetrated a scheme to defraud various banks of more than $800,000. As part of the scheme, Reyes secured employment at more than half a dozen banks and, relying in part on knowledge he acquired from his employment, Reyes created counterfeit checks and recruited others to deposit those checks into their and others’ bank accounts. Reyes and his coconspirators then attempted to withdraw the funds from the bank accounts before the banks learned the checks were counterfeit. Among those he recruited to make the deposits was Nicole Thompson. On July 16, 2010, Thompson was arrested by the New York City Police Department in connection with her role in the scheme, and she immediately decided to cooperate with law enforcement. When Reyes learned of Thompson’s plans to cooperate, and thereby jeopardize his ongoing fraud scheme, Reyes paid another individual to murder her and then traveled from New York to Maryland to personally dispose of her body. On July 24, 2010, Thompson’s body, duct taped and wrapped in garbage bags, was found in a dumpster in Landover, Maryland. Thompson was 24 years old at the time of her murder. Reyes later brazenly commented that he would “do it again if [his] life was on the line. It was either me or her.” After his arrest, rather than accept full responsibility for his crimes, Reyes tried to persuade an ex-girlfriend to lie to law enforcement in an apparent attempt to receive credit for purported cooperation.
Mr. Capers expressed his grateful appreciation to the Prince George’s County, Maryland Police Department, New York City Police Department, and Bronx County District Attorney’s Office for their significant cooperation and assistance in the investigation.
The government’s case is being prosecuted by Assistant United States Attorneys Elizabeth Kramer, Elizabeth Geddes, Samuel Nitze and Karin Orenstein.
The Defendant:
NAQUAN REYES
Age: 31
Brooklyn, NYE.D.N.Y. Docket No. 14-CR-0227
Bridgeport Man Sentenced to More Than 5 Years in Prison for Possessing Loaded Firearm, Crack CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that LAMAR CARTER, 36, formerly of Bridgeport, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 66 months of imprisonment, followed by three years of supervised release, for possessing a loaded firearm and crack cocaine.
According to court documents and statements made in court, on May 28, 2014, CARTER was arrested by Bridgeport Police subsequent to a vehicle stop. A search of the vehicle CARTER was operating revealed a Sig Sauer 9mm pistol that had one hollow point round in the chamber and 11 hollow point rounds in the magazine. A search of CARTER’s person revealed 14 small baggies of crack cocaine.
CARTER’s criminal history dates to 1998 and includes multiple felony convictions.
On August 4, 2015, CARTER pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Bridgeport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Alina P. Reynolds.
Bridgeport Man Admits Role in Armed Robbery SpreeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DERRICK GILLIAM, 29, of Bridgeport, pleaded guilty today in New Haven federal court to conspiring to commit seven armed robberies in 2014.
According to court documents and statements made in court, on April 26, 2014, GILLIAM, Lancelot Supersad and others committed an armed robbery of the CVS Pharmacy on Grasmere Avenue in Fairfield, stealing approximately $2,376. On May 3, 2014, GILLIAM, Supersad and others attempted an armed robbery of the Mobil Gas station on Noble Avenue in Bridgeport. On May 10, 2014, GILLIAM, Supersad and others committed an armed robbery of a Webster Bank branch on Main Street in Bridgeport, stealing approximately $4,170. On June 1, 2014, GILLIAM, Supersad and others committed an armed robbery of a Pizza Hut on Boston Avenue in Bridgeport, stealing approximately $250. On June 26, 2014, GILLIAM, Supersad, Anthony Santiago and others committed an armed robbery of the Residence Inn on Bridgeport Avenue in Shelton, stealing approximately $200. On July 2, 2014, GILLIAM, Supersad, Santiago and others attempted an armed robbery of the Sikorsky Financial Credit Union on Oronoque Lane in Stratford. Also on July 2, 2014, GILLIAM, Supersad, Santiago and others committed an armed robbery of the TD Bank located on Post Road East in Westport.
GILLIAM brandished and pointed what appeared to be a handgun at employees during each of the seven robberies.
GILLIAM pleaded guilty to one count of conspiracy to affect commerce by robbery, an offense that carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on October 20, 2016.
GILLIAM has been detained since his arrest on July 3, 2014.
Supersad and Santiago previously pleaded guilty to the same charge and await sentencing.
This investigation has been conducted by the Federal Bureau of Investigation and the Westport, Shelton, Fairfield, Stratford and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Avi M. Perry.
Baltimore Man Pleads Guilty and Two Sentenced in Federal Court for Identity Theft SchemesRead the Press Release
Baltimore, Maryland – A Nigerian national pleaded guilty this week to a federal wire fraud conspiracy for using the personal identifying information (PII) of individual victims to commit stolen identity refund fraud (SIRF). In a separate scheme, two Baltimore area women were sentenced to federal prison in a bank fraud scheme, which also used the PII of victims.
Adebola Opeyemi Adeniyi, age 31, a Nigerian citizen and a resident of Baltimore, pleaded guilty today to conspiring to commit wire fraud in a SIRF scheme, using the personal identifying information (PII) of individual victims to defraud the IRS by obtaining over $655,000 in fraudulent tax refunds.
Chief U.S. District Judge Catherine C. Blake sentenced LaKeisha Butler, age 33, of Columbia, Maryland to 30 months in prison on July 22, 2016, and on July 26, 2016, sentenced co-defendant Kesa Baker, age 43, of Baltimore, to 13 months in prison, after giving her credit for 13 months she served on a related case in Pennsylvania, each followed by five years of supervised release, for their roles in a $1.5 million bank fraud scheme. Six additional co-defendants are awaiting sentencing in this case, including Terry Bowman, age 55, of Laurel, Maryland. On June 9, 2016, Bowman was convicted by a federal jury for conspiracy, bank fraud, and aggravated identity theft.
The guilty plea and sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office; and Chief James Johnson of the Baltimore County Police Department.
According to his plea agreement, from October 17, 2013 through March 17, 2015, Adeniyi and his co-conspirators filed false tax returns, arranging for the electronic transfer of the fraudulently obtained tax refunds to prepaid debit cards. Adeniyi also obtained victims’ account information from the 2013 Target Store data breach, which he and other participants in the scheme used to re-encode the magnetic strips of payment cards in their possession. Adeniyi and other participants used the debit cards loaded with SIRF funds and the re-encoded payment cards to purchase money orders, some of which they cashed at check cashing businesses. Adeniyi shared the cash proceeds with other participants in the scheme. The total value of money orders purchased with SIRF funds and cashed by Adeniyi or at his direction was at least $665,635. The total value of money orders purchased with account information compromised during the Target Store data breach and cashed at Adeniyi’s direction was at least $80,500.
Further, Adeniyi admitted that he used some of the money orders obtained from the two schemes to: purchase vehicles at auctions in Maryland, and arrange for their shipment to purchasers in Nigeria; and to engage in currency exchange transactions, exchanging U.S. currency for Nigerian currency at competitively low rates.
In a separate case, co-defendants Butler and Baker participated in a scheme to defraud financial institutions by depositing counterfeit and stolen checks into bank accounts opened and controlled by the conspirators, and withdrawing the funds before the deposits were identified as fraudulent. Among other things, Butler and Baker opened accounts using the PII of others, and deposited and cashed checks. Baker and Butler generally received 5-10% of any checks they cashed. Butler, Baker and their co-conspirators obtained extensions of credit from federally insured financial institutions of $1,519,429.52 and attempted to obtain extensions of credit of $3,149,616.10.
Adeniyi faces a maximum sentence of 20 years in prison for the wire fraud conspiracy. U.S. District Judge J. Frederick Motz scheduled his sentencing for September 30, 2016, at 11:00 a.m. As part of his plea agreement, Adeniyi will also be required to pay restitution of $550,000, the full amount of the victims’ losses. Co-conspirators Mayowa Olabiyi Towobola, age 25, of Parkville, Maryland, and Hafis Omowonuola Oladokun, age 39, of Owings Mills, Maryland, previously pleaded guilty to their involvement in the wire fraud conspiracy and are awaiting sentencing
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI-Baltimore, the U.S. Postal Inspection Service, IRS-CI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul E. Budlow and Matthew J. Maddox, who are prosecuting the Adeniyi case; and Assistant U.S. Attorney Tamera L. Fine, who prosecuted the Butler and Baker case.
11 Charged in Heroin ConspiracyRead the Press Release
LAREDO, Texas – A total of 11 people are in custody following an enforcement operation in two separate, but related cases involving a heroin trafficking conspiracy, announced U.S. Attorney Kenneth Magidson.
Those arrested include Alejandro Escobar-Becerra, 35, Francisco Garcia-Castro, 38, Vicente Vasquez, 45, Cynthia Veronica Castillo, 40, Ernesto Moreno, 44, Jose Ricardo Diaz, 42, Pedro Jorge Rodriguez, 29, Juan Jesus Luna, 31, Juan Erasmo Garcia, 41, all of Laredo. With the exception of Rodriquez, who was taken into custody in Catarina and made his initial appearance in Del Rio, all appeared this morning before U.S. Magistrate Judge Guillermo R. Garcia in Laredo. All have been detained pending further court proceedings.
Also charged is Benito Reyna, 49, and Julio Santiago Gonzalez, 26, both also of Laredo. They were already in custody and are expected to appear in federal court in the near future.
A federal grand jury returned the indictments under seal June 21, 2016, alleging a conspiracy to possess with intent to distribute heroin and cocaine. Some are also charged with being a felon in possession of a firearm. The indictments were unsealed upon the arrests yesterday.
Escobar, Castro, Elizondo, Vasquez, Reyna and Moreno are part of an indictment charging them with conspiracy to possess with intent to distribute heroin and cocaine. Diaz, Rodriguez, Luna, Garcia and Gonzalez are alleged members of the Texas Mexican Mafia prison gang. Diaz is charged with conspiracy to possess with intent to distribute heroin, while Rodriguez, Luna, Garcia and Gonzalez are charged with being felons in possession of firearms.
The joint investigation which started in 2013 identified some of the defendants as alleged members of a street level heroin and cocaine distribution organization. According to the charges, on March 14, 2014 Rodriguez, Luna, Garcia and Gonzalez were traveling to a nightclub to look for a person at the request of Diaz. However, Laredo Police Department officers stopped them and discovered three firearms in their possession, according to the indictment.
If convicted in the drug conspiracy, all face up to 40 years in prison and a possible $5 million fine. Rodriguez, Luna, Garcia and Gonzalez also face up to 10 years upon conviction of being a felon in possession of a firearm.
The indictments were part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation named “Smokey’s Café.” The Drug Enforcement Administration and the Texas Department of Public Safety - Criminal Investigations Division conducted the investigation with assistance by the Laredo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Andy Guardiola is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
11 Charged in Alien Transportation ConspiracyRead the Press Release
BROWNSVILLE, Texas – Law enforcement officials have arrested 11 individuals alleging harboring and transporting of undocumented aliens within the country, announced U.S Attorney Kenneth Magidson.
Those arrested included Manuela Cedillo-Hernandez, 59, Javier Aranda-Velez, 50, William Adam Leija, 25, Landsie Rubi Leija, 28, Christopher Vega, 31, and her associate Francisca Torres, 53, all of La Feria. Also arrested were Raquel Flores-Cedillo, 37, and Rogelio Gonzalez, 41, both of Brownsville; Bobby Joe Canales, 28, and Guadalupe Iracheta Obregon, 31, both of Alton; and Jorge Vidales, 39, of Harlingen. They are expected to make their initial appearance before U.S. Magistrate Judge Ignacio Torteya this morning.
A nine-count indictment was returned under seal on Tuesday July 26, 2016, and unsealed upon their arrests yesterday.
The individuals are alleged to have operated a complex alien harboring scheme wherein they harbored smuggled undocumented aliens in exchange for monetary gain from the aliens or their families. Thereafter, the defendants allegedly provided the aliens with legal documents allowing them to assume an imposter identity and move northward from the Rio Grande Valley into the United States. The scheme is alleged to have taken place between March 2016 through the date of indictment.
All are charged with one count of conspiracy and at least one count of alien harboring. If convicted, they face up to 10 years in federal prison and a possible $250,000 fine for the conspiracy and a maximum of either five or 10 years for their respective underlying charges(s).
The indictment also includes a notice of forfeiture for two residential properties - one in La Feria, and one in Harlingen.
The Department of Homeland Security (DHS) - Homeland Security Investigations conducted the four-month investigation with assistance from DHS - Enforcement Removal Operations, U.S. Marshals Service, Border Patrol, Department of State, Bureau of Alcohol, Tobacco, Firearms and Explosives, Cameron County District Attorney’s Office, Cameron County Sheriff’s Office, police departments in Brownsville, Harlingen and Mission. Assistant U.S. Attorney Jason Corley is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Wednesday 27 July 2016
Youngstown man indicted on firearms chargeRead the Press Release
A federal grand jury returned a one-count indictment charging Van S. Lightning, 26, of Youngstown, with being a felon in possession of a firearm and ammunition, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on or about May 28, 2016, Lightning possessed a Springfield, model XD-40, .40 caliber pistol, and ammunition, after having been previously convicted of RICO violation in the U.S. District Court, Northern District of Ohio, in 2012.
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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Youngstown Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Youngstown man faces fentanyl, heroin and firearms charges, accused of operating drug houseRead the Press Release
A Youngstown man was named in a five-count indictment, charged with federal narcotics and firearms violations, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Phillip M. Lemon, II, 28, of possessed with intent to distribute more than 100 grams of heroin in December 2015. He also possessed with intent to distribute fentanyl and maintained a premises on McHenry Street in Youngstown for the purpose of distributing heroin. Lemon also possessed two RG, model RG23, .22 caliber revolvers and ammunition despite after having been previously convicted of conspiracy to possess with intent to distribute heroin. He also possessed the firearms in furtherance of a drug trafficking crime, 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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Youngstown Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt
Woburn Investment Advisor Sentenced to Seven Years for Hedge Fund FraudRead the Press Release
BOSTON – A Woburn investment advisor was sentenced today in U.S. District Court in Boston in connection with defrauding investors of over $1.3 million.
Rosalind Herman, 61, was sentenced to seven years in prison, three years of supervised release, and ordered to pay restitution of $1,819,391. In April 2016, she was convicted by a federal jury of investment adviser fraud, tax fraud, wire fraud and conspiracy charges.
Herman owned and controlled companies in Massachusetts and Nevada that provided investment advice and sold insurance products to individual investors. From 2008 to March 2013, Herman and her business partner, Gregg Caplitz, pitched a new hedge fund company investment to existing clients. The purported investment was billed by Caplitz and Herman as a hedge fund company owned by Herman. No hedge fund ever existed, however, and the more than $1.3 million in investment funds obtained from clients were used to pay personal expenses for Herman, her family and Caplitz.
In addition, from 2003 to 2012, Herman failed to file accurate tax returns for herself and her companies, including the $1.3 million in investor funds she took from investors, and also by fabricating business expenses. In many instances during this time period, Herman failed to file any tax returns for herself or her companies.
In May 2016, Caplitz was sentenced to 42 months in prison after pleading guilty to fraud and tax charges, and testifying against Herman at trial.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The U.S. Attorney’s Office acknowledges the assistance provided by the Securities and Exchange Commission. The case was prosecuted by Assistant U.S. Attorneys Sara Miron Bloom of Ortiz’s Economic Crimes Unit, and Mary B. Murrane, Chief of Ortiz’s Civil Division.
Two West Haven Women Charged in Mail and Identity Theft SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two West Haven residents have been charged with operating an extensive identity theft and mail theft scheme that operated in the greater New Haven area. On July 21, JAMILA WILLIAMS-STEVENSON, 36, was arrested on a federal criminal complaint charging her with bank fraud and aggravated identity theft. LORENA COBURN, 42, was arrested today on the charge of conspiracy to commit bank fraud.
As alleged in court documents, since approximately February 2014, WILLIAMS-STEVENSON and COBURN submitted to the U.S. Postal Service change of address applications for individuals who resided in and around New Haven, causing unwitting victims to have their mail diverted from their true addresses to addresses that were controlled by WILLIAMS-STEVENSON and COBURN. Once WILLIAMS-STEVENSON and COBURN took control of the mail, they were able to steal the victims’ identities and financial information, and intercept checks that were intended for the victims. They then used stolen personal identifying information to open online bank accounts in the victims’ names and deposit stolen checks into those accounts. They then withdrew the funds at ATMs, and also used stolen funds to purchase money orders at post offices and reloadable debit cards at various retail stores.
More than 20 individuals have been victimized through this alleged scheme, resulting in a loss of more than $50,000 to banks and victims.
The charges of conspiracy to commit bank fraud and bank fraud carry a maximum term of imprisonment of 30 years. The charge of aggravated identity theft carries a mandatory consecutive term of imprisonment of two years.
WILLIAMS-STEVENSON and COBURN were released on $100,000 bonds.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Postal Inspection Service, the Internal Revenue Service – Criminal Investigation Division, the Connecticut Financial Crimes Task Force and the West Haven, New Haven and Orange Police Departments. This case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala
U.S. Attorney Daly stated that the investigation is ongoing and encouraged citizens who believe that they have been victimized by this scheme, or who have had a mailing address changed without their consent, to call the U.S. Postal Inspection Service at 203-782-7391.
Two Shreveport residents found guilty at trial of sex trafficking a minorRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a man and woman from Shreveport were found guilty after a trial of having a minor female from Texas engage in prostitution in Shreveport.
Tyrone Larry Smith, 37, and Lacoya Washington, 33, both of Shreveport, were found guilty of one count of sex trafficking of a minor, and Smith was also found guilty of one count of coercing or enticing a minor to travel to engage in prostitution. United States District Judge S. Maurice Hicks Jr. presided over the bench trial, which started Monday and ended today. According to evidence presented at trial, Smith began conversing with a 14-year-old female from Texas over an internet dating service in June of 2015. He convinced her to travel to Shreveport saying he had feelings for her. Upon arriving in Shreveport, the female met Smith and Washington and stayed at their home. That same month, they brought her to local hotels where she engaged in prostitution. If she resisted, Smith struck her and abused her in order for her to continue the illegal activity. Smith also took the money from the prostitution. The minor was contacted by authorities who later arrested Smith and Washington.
The defendants face a minimum of 15 years in prison, at least five years of supervised release and a $250,000 fine. They are also required to register as sex offenders. A sentencing date of November 1, 2016 was set.
The FBI investigated the case. Assistant U.S. Attorneys James G. Cowles Jr. and Earl M. Campbell are prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. 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, visit www.projectsafechildhood.gov.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
Two Detained in FBI Safe Streets Task Force, Cranston Police Department Drug ProbeRead the Press Release
PROVIDENCE, R.I. – Randolph Reynoso, 25, of Warwick, and Richard Lora, 20, of Providence, were ordered detained today following court appearances on conspiracy and drug trafficking charges. The two men were arrested on Tuesday following an investigation by the FBI Safe Streets Task Force and the Cranston Police Department Special Investigations Unit.
Reynoso was ordered detained in federal custody following an initial appearance in U.S. District Court on a criminal complaint charging him with one count of conspiracy to distribute heroin and crack cocaine, one count of distribution of crack cocaine and five counts of distribution of crack cocaine and heroin. At the time of his arrest, Reynoso was on federal pre-trial release on charges of conspiracy to distribute cocaine and heroin.
Lora was ordered detained in state custody following his arraignment in Providence District Court on six counts of delivery of crack cocaine, 5 counts of delivery of heroin, one count of conspiracy and one count of operating on a suspended license. The state charges were brought by the Cranston Police Department.
Reynoso and Lora’s arrests are announced by United States Attorney Peter F. Neronha, Harold H. Shaw, Special Agent in Charge of the FBI Boston Division, and Cranston Police Chief Michael J. Winquist.
According to court documents, an investigation by the FBI Safe Streets Task Force and the Cranston Police Department Special Investigations Unit into Reynoso and Lora’s alleged drug trafficking activities included at least six alleged purchases of varying amounts of crack cocaine and/or heroin. The alleged transactions, which occurred between June 24, 2016, and July 26, 2016, were electronically monitored by law enforcement.
A criminal complaint is merely an allegation 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.
Reynoso’s case in U.S. District Court is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Richard W. Rose.
The FBI’s Safe Streets Violent Gang Task Force consists of agents and law enforcement officers from the FBI, RI State Police, Providence, Cranston, Woonsocket, and Central Falls Police Departments and the R.I. Department of Corrections.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Trump Rally Fence Jumper Pleads Guilty, Sentenced to 1 Year ProbationRead the Press Release
DAYTON – Thomas DiMassimo, 22, of Powder Springs, Ga., pleaded guilty and was sentenced in U.S. District Court yesterday to one year probation for jumping the stage during a political rally in Vandalia, Ohio on March 12.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio and Mark Porter, Special Agent in Charge, United States Secret Service, announced the plea and sentence.
DiMassimo was charged for entering and remaining in a restricted area where a person protected by the Secret Service was temporarily visiting, without lawful authority to do so, which is a misdemeanor offense.
DiMassimo was also banned from attending at any Republican Presidential event.
"Now as much as ever, it's crucial that people respect the political process,” Acting U.S. Attorney Glassman said. “That includes expressing support or opposition for candidates within the confines of laws that are designed to guarantee everyone's safety. Yesterday's guilty plea and the magistrate judge's carefully crafted sentence reflect that respect."
Acting U.S. Attorney Glassman commended the response by the U.S. Secret Service, as well as Assistant United States Attorneys Sheila G. Lafferty and Brent Tabacchi, who are representing the United States in this case.
Toledo man charged for cocaine distributionRead the Press Release
A criminal information was filed against Fortino Barajas Castaneda, 35, of Toledo, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The charges relate to possession with intent to distribute cocaine.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Department of Homeland Security, Immigration and Customs Enforcement, in Detroit. The case is being handled by Assistant United States Attorney Thomas P. Weldon and Michael J. Freeman.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Defendants Indicted for Armed Robbery of Dunbar Armored, Inc., CourierRead the Press Release
ATLANTA - Artaigaous Norwood, Joquize Norwood, and Detravius Brown, have been arraigned on federal charges of conspiracy to commit armed robbery, armed robbery, and use of a fire Three Defendants Indicted for Armed Robbery of Dunbar Armored, Inc., Courier arm in furtherance of a crime of violence. Artaigaous Norwood was also charged with possessing a firearm after having previously been convicted of a felony offense.
“The brazen nature of this armed robbery created an extraordinarily dangerous situation.” said U.S. Attorney John Horn. “The indictment alleges that these defendants, with their guns drawn, put the lives of the victim, other innocent bystanders, and their own lives, at risk.”
“The federal indictments and resulting arraignments of these three alleged armed robbers is a direct result of many long days and nights of hard work by FBI agents and Task Force Officers from Atlanta P.D. Because of the threat posed to the public by these types of aggressive armed robberies, I am thankful that this investigation moved as quickly as it did without anyone getting hurt,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“This is just another example of how partnership works to keep City of Atlanta citizens safe,” said Atlanta Police Chief George Turner. “Brazen attacks like this on hard-working people will not be tolerated and we will continue to work with our federal partners to ensure the individuals responsible are held accountable.”
According to U.S. Attorney Horn, the charges, and other information presented in court: On Saturday, May 14, 2016, at around 8:40 a.m., defendants Artaigaous and Joquize Norwood are alleged to have robbed a courier for Dunbar Armored, Inc., at gunpoint as he attempted to make a cash delivery to a business in Atlanta, Georgia. The defendants approached the victim with their guns drawn just after the victim exited the armored vehicle. One defendant grabbed the bag containing cash from the victim while the other took the victim’s firearm, holstered at his side. Cell phone evidence and video surveillance showed that a third man, defendant Detravius Brown, acted as a lookout during the robbery.
Artaigaous Norwood, 43, and Joquize Norwood, 21, of Atlanta, Georgia, along with Detravius Brown, 23, of Mableton, Georgia, were arraigned on July 21, 2016 before U.S. Magistrate Judge John K. Larkins III. The defendants were indicted by a federal grand jury on July 12, 2016, after being charged by Criminal Complaint on June 13, 2016.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation with the assistance of the Atlanta Police Department.
Assistant United States Attorney Jessica C. Morris is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Texas Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pharr, Texas, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Dimas DeLeon, a/k/a Leo Castro, a/k/a Leo DeLeon, age 30, was indicted on July 19, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 26, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, at least 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between May 1, 2016, and July 1, 2016, DeLeon, a person required to register under the Sex Offender Registration and Notification Act, failed to register and update his registration.
The charge is merely an accusation and DeLeon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshals Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
DeLeon was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Tampa Woman Sentenced for Tax FraudRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Latosha Strong to 15 months in federal prison for filing false federal income tax returns in the names of deceased individuals. The Court also ordered her to pay $52,735.71 in restitution to the U.S. Treasury, which are traceable to proceeds of the offense. Strong pleaded guilty on December 11, 2015.
According to court documents, Strong, and others working with her, prepared and filed fraudulent tax returns using the stolen identities of at least 10 deceased individuals for the 2010 and 2011 tax years. The resulting tax refunds were directed to at least five different bank accounts in Strong’s name. The amount of false claims totaled $85,814, but due to federal seizure warrants and financial institution reclamations, the actual tax loss amounted to $52,735.71.
Analysis of information from the 10 deceased individuals’ returns shows that these conspirators used similar “formulas” to generate the fraudulent returns, including income, tax withholding, and interest income. In addition, several of the false returns claimed identical refund amounts.
Strong and others shared in the proceeds from the scheme. The monies were spent on a variety of retail items and services, and in transactions at a local casino.
This case was investigated by IRS Criminal Investigation. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Stowaway Found at Port of Houston ConvictedRead the Press Release
HOUSTON – A 40-year-old undocumented immigrant found as a stowaway on a boat at the Port of Houston has pleaded guilty to illegal re-entry after deportation, announced U.S Attorney Kenneth Magidson.
Robinson Francisco Gonzalez-Martinez, a citizen of the Dominican Republic, has multiple convictions for drug possession and two convictions for grand theft of motor vehicles. He had been deported twice from the United States.
On May 8, 2016, Customs and Border Protection (CBP) officers discovered Gonzalez-Martinez hiding in a ship at the Port of Houston.
Today, he admitted he is a previously convicted felon who illegally re-entered this county. He snuck on to a container ship in the Dominican Republic and was discovered after he jumped off of the vessel upon its arrival in the Port of Houston.
“This arrest and conviction illustrates CBP’s ongoing commitment to intercept individuals intent on circumventing the immigration process to continue their criminal activity,” said CBP Director of Field Operations Judson W. Murdock II. “CBP will continue to take every opportunity to apprehend these individuals and coordinate for the proper action leading to their removal from our communities.”
U.S. District Judge Kenneth Hoyt accepted the plea today and has set sentencing for Oct. 3, 2016. At that time, Gonzalez-Martinez faces up to 10 years in federal prison. He will remain in custody pending that hearing.
CBP conducted the investigation. Assistant U.S. Attorney Adam Goldman is prosecuting the case.
Store Manager Sentenced for $5.1 Million Food Stamp FraudRead the Press Release
MACON, Ga. - Michael Paul Atkinson, Jr., has been sentenced for conspiracy to commit wire fraud in connection with the federal food stamp program, known as the Supplemental Nutrition Assistance Program (SNAP).
“The defendant used the food stamp program as an ATM,” said U.S. Attorney John Horn. “Food stamps provide needed assistance to the most vulnerable citizens in our society. Schemes like these unfortunately divert critical resources away from the people who need them most.”
“USDA-OIG stands firm in its mission to safeguard program benefits. The prosecution of Atkinson serves as a message to those who operate businesses for the purposes of defrauding USDA programs and taxpayers that USDA-OIG will work with its federal, state and local law enforcement partners to vigorously investigate and prosecute you,” stated Karen Citizen-Wilcox, Special Agent-in-Charge, USDA OIG-Investigations.
“The American tax system is designed to provide vital government services to our people,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Every dollar that Michael Paul Atkinson diverted through fraudulent and criminal activity is a dollar taken away from a child in need or a vulnerable adult. We are proud to work hand-in-hand with our law enforcement partners to ensure that fraudulent benefit schemes are investigated thoroughly and any avenues allowing exploitation of these programs are shut down.”According to U.S. Attorney Horn, the charges and other information presented in court: Atkinson operated Mid Way Market in Macon, Georgia, from 2010 through March 2015. During that time, Atkinson paid beneficiaries in cash to redeem SNAP benefits and allowed beneficiaries to use those benefits to purchase non-allowed items. In addition, Atkinson taught other workers at Mid Way how to process fraudulent claims. As a result of the fraudulent scheme, the SNAP program paid over $5.1 million in redemptions to Mid Way that should not have been paid.
Atkinson also agreed that his home was subject to forfeiture because it was purchased with proceeds from the fraud. His house has been forfeited to the United States.
Michael Paul Atkinson, Jr., 37, of Hampton, Georgia, has been sentenced to five years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,141,520.28. Atkinson was convicted on these charges on March 31, 2016, after he pleaded guilty.
The U.S. Attorney’s Office for the Middle District of Georgia is recused from this case. It was prosecuted by the U.S. Attorney’s Office for the Northern District of Georgia.
This case was investigated by the United States Department of Agriculture, Office of Inspector General and Internal Revenue Service Criminal Investigation.
Special Assistant United States Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
St. Louis Man Pleads Guilty to Stealing from Norfolk Southern Railway TrainsRead the Press Release
St. Louis, MO – Ronald Bonner, St. Louis, MO, pled guilty to stealing goods from Norfolk Southern Railway trains as they passed through the railroad’s St. Louis terminal. Bonner admitted to two counts of theft from an interstate shipment involving two separate incidents occurring on October 14, 2015, and February 5, 2016, during which Bonner boarded trains, broke into containers and stole valuable merchandise to be resold. He entered his plea before United States District Judge John A. Ross.
Bonner now faces up to three years imprisonment and a fine of up to $250,000 per count. Restitution to the victim is also mandatory.
The case was investigated by the Norfolk Southern Railroad Police. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Southside Gang Member Sentenced to Eight Years in PrisonRead the Press Release
BOISE – Mario Fernandez Jr., 37, of Nampa, Idaho, was sentenced today to 96 months in prison for possessing methamphetamine with the intent to distribute it, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J, Lodge also ordered Fernandez to serve five years of supervised release following his release from prison. Fernandez pleaded guilty on May 3, 2016.
According to information presented in court, on November 16, 2015, Idaho Department of Correction parole officers and officers from the Nampa Police Department conducted a home visit at the residence of Fernandez. While officers knocked on the residence door and contacted co-defendant Bayley Bird at the front of the house, Fernandez tried to escape by running out the back door. An officer positioned at the back door stopped Fernandez and escorted him back inside. The residence was searched and in a bedroom that Fernandez shared with Bird, officers found two firearms, a .22 magnum and a Glock pistol. Officers also found 158.7 grams of methamphetamine as well as brass knuckles, a large knife, a scale, and plastic baggies. At the time of his arrest, Fernandez had $2,036 in cash in his pocket. Fernandez is a documented Southside gang member and Bird is associated with the Northside gang. At the time of the offense, Fernandez was on parole for aggravated assault and conspiracy to traffic methamphetamine. On February 4, 2016, Bird also pleaded guilty to possession of methamphetamine with the intent to distribute it. She was sentenced to 60 months in prison on June 8, 2016.
The case was investigated by the Idaho Department of Correction, Nampa Police Department, the Treasure Valley Metro Violent Crimes Task Force, and ATF. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and the Idaho Department of Correction.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Six Defendants Including Three Former Members of the United States Military Charged with Interstate Gun TraffickingRead the Press Release
A seventeen-count indictment was fully unsealed yesterday in the United States District Court for the Eastern District of New York charging Marquez Bridges, Micah Isaiah Desuze, Dominique Chanel Fairnot, Jeremy Sanchez, Ashanti Sease-Matthews, and Omar Jermaine Walker with conspiracy to deal in firearms and making false statements to acquire firearms. Jeremy Sanchez, who was the most recent defendant arrested in this case, is scheduled to be arraigned before the Honorable Magistrate Judge Robert Levy at 2:00 p.m. this afternoon. The next status conference in the case is scheduled for August 4, 2016 before the Honorable Allyne R. Ross.
The charges and arrests were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and William J. Bratton, Commissioner, New York City Police Department (NYPD).
“We stand committed to stemming the flow of illegal firearms into our communities,” stated United States Attorney Capers. “All too often, firearms brought into New York illegally end up in the hands of criminals and result in acts of violence.” Mr. Capers extended his grateful appreciation to the United States Air Force Office of Special Investigations.
“Illegal guns most often end up in the hands of criminals who usually don't abide by the laws designed to protect society. A disturbing facet of this case is that several of the subjects were former members of the military, trusted to defend our nation, and make it safer. These weapons have made our communities more dangerous,” stated FBI Assistant Director-in-Charge Rodriguez.
“This department has no tolerance for those who traffic illegal guns into our city,” said New York Police Commissioner Bratton. “I commend the work of the detectives and agents whose work resulted in these arrests.”
As set forth in the indictment and other documents filed by the government, between October 2015 and April 2016 the defendants purchased more than 70 firearms from stores and gun shows in Georgia. The firearms were transported to the metropolitan New York City area, where they were sold in illegal transactions on the street. The defendants, who acted as straw purchasers, made false statements to obtain the firearms. In particular, the defendants lied on ATF Form 4473, a form gun purchasers are required to complete to verify, among other things, that they are not purchasing firearms on behalf of others. Three of the defendants, Desuze, Sease-Matthews, and Walker, are former members of the United States military.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a maximum prison term of ten years.
The government’s case is being prosecuted by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Margaret E. Gandy and Rena Paul are in charge of the prosecution.
The Defendants:
MARQUEZ BRIDGES
Age: 26
Atlanta, GeorgiaMICAH ISAIAH DESUZE
Age: 24
Atlanta, GeorgiaDOMINIQUE CHANEL FAIRNOT
Age: 26
Atlanta, GeorgiaJEREMY SANCHEZ
Age: 26
Atlanta, GeorgiaASHANTI SEASE-MATTHEWS
Age: 23
Atlanta, GeorgiaOMAR JERMAINE WALKER
Age: 26
Savannah, GeorgiaE.D.N.Y. Docket No. 16-CR-326
Shelby County Woman Indicted for $328,000 Bank Fraud Embezzlement SchemeRead the Press Release
BIRMINGHAM – A federal grand jury today charged a Shelby County woman in connection with a $328,000 bank fraud embezzlement scheme, as well as with aggravated identity theft, witness tampering, misusing a Social Security number and filing false tax returns, announced U.S. Attorney Joyce White Vance, U.S. Postal Inspector Frank Dyer, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot.
A 47-count superseding indictment filed in U.S. District Court charges REBECCA ANN “BECKY” NORTON, 46, with 30 bank fraud counts, 12 aggravated identity theft counts, three counts of filing false tax returns, and one count each of misusing a Social Security number and witness tampering. The superseding indictment expands charges returned against Norton in a June indictment.
Norton worked as office manager and bookkeeper for Total Fire Protection in Alabaster. Between August 2013 and August 2015, she used a variety of methods to fraudulently take the $328,000 from bank accounts held by Total Fire Protection and related companies, according to the July indictment.
Norton committed aggravated identity theft by using personal identification information of several other individuals to facilitate her fraud, according to the indictment. It also charges that once Norton knew she was under federal and state investigation, she tried to contact two of her victims to convince them not to pursue criminal charges against her.
The superseding indictment also charges that, between 2011 and 2012, Norton drew unemployment benefits from the State of Alabama under another person’s Social Security number, thereby misusing that Social Security number and committing aggravated identity theft against that person.
Finally, the superseding indictment charges that Norton filed false federal income tax returns for 2010, 2013 and 2014 by underreporting her taxable income during each relevant year.
If convicted, Norton faces maximum prison sentences of 30 years for each bank fraud count, 20 years for witness tampering, five years for misuse of a Social Security number, and three years for each count of filing a false tax return. In addition to these sentences, Norton faces a mandatory two years in prison for each aggravated identity theft conviction.
The Postal Inspection Service and IRS Criminal Investigation Division investigated the case, with assistance from the Alabaster Police Department. Assistant U.S. Attorneys Melissa Atwood and John B. Ward are prosecuting the case.
An indictment contains only charges. The defendant is considered innocent unless and until proven guilty.
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Sex Offender Admits to Failing to Register in R.I.Read the Press Release
PROVIDENCE, R.I. – Vernon G. Massie, 49, of Cranston, pleaded guilty in federal court in Providence today to violating the Sex Offender Registration and Notification Act (SORNA). Massie failed to register as a sex offender in Rhode Island, having moved to Cranston from Monroe, North Carolina, where he is a convicted and registered sex offender. SORNA requires that a registered sex offender notify law enforcement of a change of address.
Massie’s guilty plea to one count of failure to register as a sex offender having travelled in interstate is announced by United States Attorney Peter F. Neronha, United States Marshal Jamie A. Hainsworth, and Cranston Police Chief Michael J. Winquist.
According to court records, on August 24, 2015, an arrest warrant was issued for Massie by the State of North Carolina charging Massie, who was convicted in September 2011 in Union County Superior Court of indecent liberties with a minor, with failing to update his residence in accordance with North Carolina sex offender laws.
According to court documents, on April 15, 2016, the Cranston Police Department responded to a 911 call for a domestic assault in that city. The female victim identified Vernon Massie as her fiancé and the person who allegedly assaulted her. She alleged to police that Massie had choked her, and that when she attempted to call 911 for emergency assistance he prevented her from calling and strangled her a second time. Masse had fled the residence prior to the arrival of Cranston Police. An arrest warrant was issued for Massie charging him with domestic strangulation, domestic assault, domestic disorderly and refusal to relinquish a phone.
During the investigation it was determined that Massie was a non-compliant sex offender in the State of North Carolina, with active warrants for his arrest. It was also determined that Massie had failed to register as a sex offender in Rhode Island as required by SORNA. The Cranston Police Department requested the assistance of the U.S. Marshals to locate and arrest Massie. Massie was located and arrested by U.S. Marshals on April 22, 2016, at a hotel in Springfield, Mass.
Massie, who has been detained since his arrest, will be sentenced by U.S. District Court Judge John J. McConnell, Jr., on October 26, 2016, for violating SORNA. Following the completion of his federal sentence, Mr. Massie will be turned over to the State of Rhode Island to face domestic violence charges and then to the State of North Carolina on a charge of being a non-compliant sex offender.
The case in U.S. District Court in Providence is being prosecuted by Assistant U.S Attorney Gerard B. Sullivan.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Registered Broker Pleads Guilty to Securities Fraud for Particpating in A $131 Million Market Manipulation SchemeRead the Press Release
Earlier today, Naveed Khan, a registered broker, pleaded guilty to securities fraud in connection with the fraudulent market manipulation of ForceField Energy Inc. (ForceField), a publicly-traded company listed on the NASDAQ under the ticker symbol “FNRG.” The guilty plea was entered before United States Magistrate Judge Ramon E. Reyes, Jr. at the federal courthouse in Brooklyn, New York. When sentenced, Khan faces up to 20 years in prison, as well as restitution, criminal forfeiture, and a fine.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
According to court filings and facts presented at the plea hearing, between January 2009 and April 2015, the defendant, together with others, engaged in a scheme to defraud investors in ForceField, a purported worldwide distributor and provider of LED lighting products and solutions, by artificially controlling the price and volume of traded shares of ForceField through, among other means: (1) using nominees to purchase and sell ForceField stock without disclosing this information to investors and potential investors; (2) orchestrating the trading of ForceField stock to create the appearance of genuine trading volume and interest in the stock; and (3) concealing payments to stock promoters and broker dealers who promoted and sold ForceField stock to investors and potential investors while claiming to be independent of the company. The fraudulent scheme caused a loss of approximately $131 million to the investing public.
Between October 2014 and April 2015, a ForceField executive paid kickbacks to Khan in exchange for purchasing ForceField stock in his clients’ brokerage accounts. Khan and ForceField did not disclose to Khan’s clients the kickbacks Khan was receiving for purchasing ForceField stock. Khan and his co-conspirators took pains to conceal their participation in the fraudulent scheme by using prepaid, disposable cellular telephones and encrypted, content-expiring messaging applications to communicate with each other, and by paying kickbacks in cash.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Christopher L. Nasson and Mark E. Bini are in charge of the prosecution.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit ww.StopFraud.gov.
The Defendant:
NAVEED KHAN
Age: 33
Residence: Staten Island, New YorkE.D.N.Y. Docket No. 16-CR-234 (BMC)
Rapid City Man Indicted for Failure to RegisterRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register.
Donald Morris Kills Warrior, age 39, was indicted on April 19, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on July 21, 2016. He pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Kills Warrior failing to register under the Sex Offender Registration and Notification Act as required. The charge is merely an accusation and Kills Warrior is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Kills Warrior was detained pending trial. A trial date has not been set.
Raleigh County felon pleads guilty to Federal gun crimeRead the Press Release
BECKLEY, W.Va. – A convicted felon from Sophia pleaded guilty today to a federal gun charge, announced Acting United States Attorney Carol Casto. Gene A. James, 46, entered his guilty plea to being a felon in possession of a firearm.
James admitted that on February 23, 2016, while in Sophia, he possessed a Leinad model DD derringer pistol. James was prohibited from possessing any firearm under federal law because of a 2014 conviction in United States District Court for the Southern District of West Virginia for distribution of oxycodone.
James faces up to 10 years in federal prison when he is sentenced on November 2, 2016.
The United States Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. The plea hearing was held before United States District Judge Irene C. Berger.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Pawtucket Man Sentenced on Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – Jose Gomez, 27, of Pawtucket, was sentenced today to 24 months in federal prison on drug trafficking and firearm charges. Gomez was arrested in September 2015, following an investigation by ATF agents into Gomez’s drug trafficking activities, which included purchases of crack cocaine from Gomez in exchange for cash and firearms.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Gomez to serve three years supervised upon completion of his prison term. Gomez pleaded guilty on April 1, 2016, to three counts of distribution of crack cocaine, one count of possession with the intent to distribute crack cocaine, and one count of being a felon in possession of a firearm.
Gomez’s sentence is announced by United States Attorney Peter F. Neronha and Lawrence J. Panetta , Interim Special Agent in Charge of the Boston Field Division of ATF.
According to court documents and information presented to the court, on August 31 and September 3, 2015, Gomez sold nearly three grams of crack cocaine for $200 in cash to an undercover ATF agent. On September 8, 2015, the ATF undercover agent arranged to meet with Gomez to trade two firearms for crack cocaine and $200 in cash. Two days later, Gomez and the undercover agent met outside Gomez’s residence and exchanged $200 in cash and a plastic bag containing crack cocaine for two firearms, a .380 caliber handgun and a 9mm handgun. Gomez was immediately detained by ATF agents. Following his arrest, Gomez told ATF agents he intended to sell the firearms to another individual.
According to information presented to the court, a court authorized search of Gomez’s residence moments after Gomez was detained resulted in the discovery of approximately four grams of crack cocaine on a digital scale which was stored on a window sill inside a bedroom. Two unattended children, ages one and two, were located in the bedroom. The bedroom doorway had been blocked to prevent the children from leaving the room.
Gomez has been detained in federal custody since his arrest on September 10, 2015.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
ATF was assisted in the investigation of this matter by the Pawtucket and Central Falls Police Departments, and the Special Investigations Unit at the Adult Correctional Institutions.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Ophthalmology Biller Pleads Guilty to Healthcare Fraud and Conspiring to Defraud the Internal Revenue ServiceRead the Press Release
PORTLAND, Ore. – The former practice manager for Eye Care Services, Inc. appeared in federal court yesterday and admitted to his role in defrauding Medicare and other public and private health care plans and conspiring to defraud the Internal Revenue Service (IRS). Anthony Curtis Neal, 40, pled guilty to health care fraud and conspiracy to defraud the IRS before U.S. District Judge Robert E. Jones and admitted that he, along with his deceased father, Dr. Dean Neal, committed health care fraud and tax related crimes between 2007 and 2014. According to the plea agreement, the government will be seeking a sentence of imprisonment and restitution to Medicare, private insurers and the IRS. The actual sentence will be determined by Judge Jones at Anthony Neal’s sentencing hearing which is scheduled for January 4, 2017.
Court records indicate that Anthony Neal worked as the practice manager for Eye Care Services Inc., dba 20/20 Eye Care, an ophthalmology clinic located at 500 NW 20th Suite 100, Gresham, Oregon. Neal worked in conjunction with his father, Dr. Dean Neal, the long-time primary doctor at Eye Care Services (ECS). In addition to serving as the practice manager, Neal was primarily responsible for the insurance billing services. He, along with his father, managed the practice, established testing protocols for patients, and set all business related polices.
Anthony Neal admitted the health care fraud scheme involved three false and fraudulent components: billings for medically unnecessary tests, up-coded billings, and double billings. To increase income, ECS required that many patients receive a battery of diagnostic tests, many of which were not medical necessity. Claims for these medically unnecessary tests were submitted to Medicare and private insurers for reimbursement. Neal also engaged in a practice of up-coding certain tests by claiming ECS was entitled to a higher than warranted reimbursement rate. Finally, ECS was supposed to be paid one amount for tests performed on both eyes, but it fraudulently submitted bills to health insurance plans that resulted in ECS being paid twice, once for each eye. The government alleges the loss attributable to the health care fraud scheme is $1,702,567.89.
As to the conspiracy to defraud the IRS, Anthony Neal admitted to conspiring to conceal ECS income from the IRS and he failed to report business or personal income to the IRS for tax years 2006 – 2013. The government alleges the loss attributable to the tax conspiracy scheme is $817,378.77.
The case was investigated by the U.S. Department of Health and Human Services - Office of Inspector General, the FBI, and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Donna Brecker Maddux and Seth Uram.
Operation Cease Fire Yields Multiple Federal and State Arrests on Firearms and Drug OffensesRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley III, along with Daytona Beach Police Chief Michael Chitwood, Assistant Special Agent in Charge Trevor A. Velinor of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and State Attorney R.J. Larizza, announces the arrest of 20 individuals (link to summary chart) as part of a joint law enforcement operation named “Operation Ceasefire.” As part of this operation, 11 individuals have been federally charged with firearms-related offenses. Penalties for the various offenses range from 5 years, up to life, in federal prison. Nine individuals have also been charged by the state with drug and firearms-related offenses. These cumulative arrests are the result of a violent crime initiative jointly undertaken by the United States Attorney’s Office, ATF, the Daytona Beach Police Department, and the State Attorney’s Office for the Seventh Judicial Circuit.
"Fighting violent crime is a top priority of my Office," said U.S. Attorney Lee Bentley. "We’re doing that by prosecuting felons possessing firearms and drug traffickers in areas most victimized by violent crime. We are very grateful for the hard work and dedication of ATF and our local partners, the Daytona Beach Police Department, and the State Attorney’s Office."
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
Additional cases have already been prosecuted as part of this joint violent crime initiative, including five federal cases and two state cases.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Daytona Beach Police Department. The federal cases will be prosecuted by Assistant United States Attorneys Jackson Boggs, Chauncey Bratt, Emily Chang, Vince Chiu, Tiffany Cummins, Embry Kidd, Shawn Napier, Ilianys Rivera-Miranda, and Sean Shecter.
These cases are prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney Bentley, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to combat violent crime in our communities.
Nine Charged with Distributing Drugs in Bristol CountyRead the Press Release
BOSTON – Nine individuals were charged in U.S. District Court in Boston in connection with distributing heroin, cocaine, acetylfentanyl and fentanyl in the Bristol County area.
On June 30, 2016, five men and one woman from southeastern Massachusetts and Rhode Island were charged in a criminal complaint with conspiring to distribute cocaine, and three New Bedford residents, in a separate but related criminal complaint, were charged with conspiring to distribute heroin. Today, a federal grand jury indicted eight of these individuals in two separate indictments. A ninth individual, Sharik Mendes, was charged by Information with conspiring to distribute and possess with intent to distribute heroin. The defendants will be arraigned in U.S. District Court in Boston on Aug. 2 and 4, 2016.
The first indictment issued by the federal grand jury charges the following defendants with the following crimes:
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Luis Lopez, a/k/a “Juan Gonzalez,” 43, of Tiverton, R.I. and Fall River: conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine; conspiracy to distribute and possess with the intent to distribute heroin and fentanyl; conspiracy to launder monetary instruments through Hillside Auto Sales, a used car business located in Fall River; and possession with the intent to distribute a mixture and substance containing a detectable amount of fentanyl and acetylfentanyl.In addition, the indictment seeks forfeiture of Lopez’s three houses, used car business, vehicles and motorcycles and $15,000 in proceeds from the drug sales.Lopez is currently in federal custody.
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Nuno Fonseca, a/k/a “Farigno,” 37, of Fall River: conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine; and, conspiracy to distribute and possess with the intent to distribute heroin and fentanyl.Fonseca is currently a fugitive from justice.
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Chindy Diaz, 38, of New Bedford: conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine.Diaz is currently in federal custody.
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Jorge Sanchez-Lopez, a/k/a “Pri,” and “Cuz,” 42, of Pawtucket, R.I.: conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine.Sanchez-Lopez is currently a fugitive from justice.
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Tyson Britto, a/k/a “Peanut,” 31, of Fall River: conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine; conspiracy to distribute and possess with the intent to distribute heroin and fentanyl; and, possession with the intent to distribute heroin, cocaine, fentanyl and acetylfentanyl.Britto is currently federal custody.
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Israel Santiago, a/k/a “Reysito,” 39, of Fall River: conspiracy to distribute and possess with the intent to distribute cocaine.Santiago has been released on conditions pending trial.
The second indictment issued by the federal grand jury charges the following defendants with the following crimes:
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Tyson Depina, a/k/a “Tru,” 40, of New Bedford: conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin; and possession with the intent to distribute heroin.Depina is currently federal custody.
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Eric Desousa, a/k/a “E,” 22, of New Bedford: conspiracy to distribute and possess with the intent to distribute heroin.Desousa has been released on conditions pending trial.
According to court documents, Luis Lopez was the head of a drug trafficking organization that imported hundreds of kilograms of cocaine from Puerto Rico to New Bedford and Fall River. Jorge Sanchez-Lopez coordinated the shipments of cocaine through the U.S. Mail with the assistance of Chindy Diaz, who received cocaine-filled packages of Lopez’s behalf and delivered it to Lopez at his Fall River residence. Israel Santiago also allegedly helped coordinate the receipt of cocaine on behalf of Lopez. Lopez then sold the cocaine to other drug dealers, including Tyson Britto and Nuno Fonseca. During the course of the investigation, federal agents interception at least three cocaine-filled packages bound for Lopez.
In a related investigation, federal agents learned that Sharik Mendes, who owns and operates the HEART gym in New Bedford, was allegedly receiving large quantities of heroin from at least two suppliers based in Providence. It is alleged that Mendes employed Tyson Depina to distribute the heroin on his behalf. Intercepted phone calls showed that Depina was consistently selling heroin to users and lower-level dealers, and that he was providing Mendes with $1,000 to $2,000 a day for this heroin. In April 2016, Depina was arrested for possessing heroin which he attempted to destroy incident to his arrest. In addition, it is alleged that Depina was also supplied heroin by Desousa, who was distributing it on behalf of a higher-level drug dealer. In early June 2016, Desousa was arrested with 30 grams of heroin in his pockets after agents saw him preparing for a heroin sale. A search of his New Bedford residences recovered 300 grams of heroin.
The Information filed on July 26, 2016 charges Sharik Mendes with conspiracy to distribute and possess with the intent to distribute heroin. Mendes is not detained pending entry of guilty plea and sentencing.
The charges carry the following maximum penalties. 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.
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Conspiracy to distribute and possess with the intent to distribute heroin:
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100 grams or more: a minimum of five years and no greater than 40 years in prison, a lifetime of supervised release and a fine of $5 million.(Applicable to Depina).
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A quantity of heroin: no greater than 20 years in prison, a lifetime of supervised release and a fine of $1 million.(Applicable to Lopez, Britto, Fonseca and Desousa).
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Conspiracy to distribute and possess with the intent to distribute cocaine:
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Five kilograms or more: a minimum of 10 years and a maximum of life in prison, a lifetime of supervised release and a fine of $10 million. (Applicable to Lopez, Diaz, and Sanchez-Lopez).
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500 grams or more: a minimum of five years and no greater than 40 years in prison, a lifetime of supervised release and a fine of $5 million.(Applicable to Fonseca and Britto).
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A quantity of cocaine: no greater than 20 years in prison, a lifetime of supervised release and a fine of $1 million.(Applicable to Santiago).
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Possession of cocaine, heroin, acetylfentanyl, and fentanyl with the intent to distribute: no greater than 20 years in prison, a lifetime of supervised release and a fine of $1 million.(Applicable to Desousa, Depina, Lopez, and Britto).
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Conspiracy to launder monetary instruments: no greater than 20 years in prison, three years of supervised release, and a fine of $250,000.(Applicable to Lopez).
United States Attorney Carmen M. Ortiz; Bristol County District Attorney Thomas M. Quinn; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Fall River Police Chief John M. Souza; New Bedford Police Chief Joseph C. Cordeiro; Fairhaven Police Chief Michael Myers; and Bristol County Sheriff Thomas M. Hodgson, made the announcement today. The cases are being prosecuted by Assistant U.S. Attorney Eric Rosen of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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