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Tuesday 26 July 2016
Former ICE Special Agent Sentenced to Federal Prison for Taking Bribes from Businessman Being Investigated for Human TraffickingRead the Press Release
LOS ANGELES – A former special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) was sentenced today to 10 months in federal prison for accepting thousands of dollars in bribes from a Korean businessman.
Joohoon David Lee, 43, who currently resides in Las Vegas, Nevada, was sentenced by United States District Judge Michael W. Fitzgerald, who called the bribery “a very, very grave crime.”
Lee pleaded guilty last December to one count of bribery.
“This defendant sold his position of authority as a law enforcement officer for a few thousand dollars,” said United States Attorney Eileen M. Decker. “As a consequence of this abuse of trust, he will now pay a far more significant price. This defendant’s crime, however, should not cast a shadow over the tens of thousands of law enforcement officers across the country who are carrying out their duties with honor and dedication.”
Lee accepted bribe money from a Korean man identified in court documents at “H.S.” According to court documents, Lee, who was assigned to HSI’s Human Trafficking unit in Los Angeles, interviewed a woman in March 2012 who claimed that she was entering the United States to be a sex slave for H.S.
About a year later, according to court filings, Lee met with an attorney representing H.S. and told the lawyer that Lee could fly to Korea, interview H.S. and submit a favorable report – if H.S. would finance the trip.
“Thereafter, H.S.’s family arranged to have a relative, who was living in Southern California, travel to Las Vegas, where, by this time, defendant Lee had been transferred, and hand defendant Lee $3,000 in cash,” according to a sentencing memo filed by prosecutors that notes Lee purchased a plane ticket to Seoul, Korea the following day.
Lee travelled to Seoul, where H.S. paid for Lee’s hotel and entertainment expenses. While in Korea, “Lee asked [H.S.] for $100,000 to make HS’s immigration issues go away,” according to the sentencing memo. H.S. ultimately paid Lee between $6,000 and $7,000 in cash.
Upon returning to the United States, Lee prepared a report related to the investigation of H.S. that read: “Subject was suspected of human trafficking. No evidence found and victim statement contradicts. Case closed. No further action required.”
The case against Lee was investigated by ICE’s Office of Professional Responsibility.
“Those who work in law enforcement are supposed to uphold our nation’s laws, not willingly break them,” said Jeffrey Gilgallon, assistant special agent in charge for ICE’s Office of Professional Responsibility in Los Angeles. “As this case shows, ICE has zero tolerance for public officials who abuse their authority and violate the public’s trust to feed their own greed. Guarding against illegal or unethical behavior is not an option; it’s an obligation we have to the people we serve.”
The case against Lee was prosecuted by Assistant United States Attorney Lizabeth A. Rhodes, Chief of the General Crimes Section.
Former Groves Apartment Manager Guilty of Theft from HUDRead the Press Release
BEAUMONT, Texas – A 44-year-old Houston woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Nhung Tuyet Nguyen, also known as Sandy Nguyen, pleaded guilty to theft of government property today before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, from October 2007 to December 2015, Nguyen was employed by the Beverly Place Apartments in Groves, Texas as an assistant Manager. As part of her job responsibilities, Nguyen assisted potential tenants in applying for U.S. housing and Urban Development (HUD) benefits for rental assistance and utility assistance. The rental and utility assistance programs are designed to help low-income individuals offset housing rental and utility costs with funds provided by HUD. In June 2007, Nguyen began applying for HUD rental assistance and utility assistance benefits without the tenants’ knowledge or consent. As a result, HUD provided funds to Beverly Place Apartments to cover tenants’ monthly rental fees. Nguyen required tenants, who were unaware HUD had already paid their monthly rent, to pay full market price for their apartments in cash or money orders. Nguyen would then take the cash or money orders and use them for her personal benefit. Nguyen enrolled at least five tenants in HUD rental and utility assistance programs without their knowledge. As a result, Nguyen caused a total loss to HUD of $393,583.00.
Under federal statutes, Nguyen faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress and is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
This case was investigated by the U.S. Housing and Urban Development – Office of Inspector General and Homeland Security Investigations. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Former Bank Executive Sentenced for $4.1 Million SBA Fraud, $18.2 Million FHA FraudRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former vice president of a Pulaski County, Mo., bank was sentenced in federal court today for leading a $4.1 million conspiracy to defraud the Small Business Administration, as well as participating in a separate and unrelated $18.2 million scheme to defraud the federal government while he was awaiting sentencing for the earlier fraud scheme.
Richard Newman Delong, 51, of Newburg, Mo., was sentenced by U.S. District Judge Brian C. Wimes to three years in federal prison without parole. The court also ordered Delong to pay $4,222,916 in restitution: $1,193,893 to the Small Business Administration (SBA); $1,257,327 to Mid-America Bank and Trust Company; $1,674,696 to Chubb Insurance and $98,000 to Brookshire Concrete.
On Jan. 24, 2014, Delong pleaded guilty to his role in a conspiracy to defraud the SBA. While on bond for that offense, Delong pleaded guilty in a separate and unrelated case on Dec. 4, 2015, to possessing and uttering a forged security as part of another scheme to defraud the government. Delong has remained in federal custody since his bond was revoked in November 2014. Today’s sentencing includes a sentence of three years in federal prison for the SBA fraud and two years in federal prison for the FHA fraud, to be served concurrently.
SBA Fraud Scheme
Delong was employed by Mid-America Bank in Dixon, Mo., as an executive vice-president and chief lending officer. Delong led a conspiracy from Jan. 1, 2005, to Feb. 5, 2010, to defraud the SBA by obtaining loans from Mid-America Bank that were guaranteed by the SBA under federal loan programs designed to provide financial assistance to qualified small businesses.
A number of loans were fraudulently obtained by businesses that were ineligible to receive them by concealing past due loan payments of distressed borrowers; making loans to nominee borrowers; making false entries in bank records; structuring loans so as to avoid the scrutiny of the bank’s board of directors; concealing unbooked letters of credit; funneling SBA guaranteed loan proceeds to themselves and others; misapplying loan proceeds; preparing fraudulent SBA borrower applications; and paying and accepting bribe money to secure loans.
Delong approved a number of fraudulent loans and prepared the false paperwork that secured SBA guaranties for loans for several co-defendants who have all pleaded guilty and been sentenced. Participants in this scheme include two business consultants (George G. Spencer and Dennis K. Depriest); the former branch manager of the SBA office in Springfield, Mo. (Larry Steven Aduddle); several business owners (Gerald E. Harris, Michael Edward Clegg, Perris D. Rask, Keith David Miller, and Lindell L. Vawter); and nominee loan borrowers (Andrea M. Clegg, Daniel J. Metz, James David Boothe, Catherine S. Debar, Randall S. Rogers, James Stewart Dunlop, Jr., and Scott E. Alexander).
As a result of Delong’s fraud, at least seven fraudulently obtained SBA-guaranty loans defaulted. (Additional loans that received SBA guarantees have defaulted, but no claim to pay the guarantee has been made to date.) Losses attributable to the portions of the loans that were not guaranteed by the SBA were borne by Mid-America Bank. As a result of the scheme, Mid-America Bank charged off $2,939,161 related to the default of the fraudulent loans involved in the scheme. Chubb Insurance paid Mid-America Bank $1,675,000 upon a claim on a policy it maintained.
HUD / FHA Fraud Scheme
Delong and co-defendant James J. Laughlin, 74, of Waynesville, Mo., each pleaded guilty to their roles in an $18.2 million fraud scheme.
Laughlin, one of the operators of 4-J Apartments in Pulaski County, Mo., admitted that he provided false information to the Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) in order to obtain an $18,219,400 loan in 2012 for the operation and maintenance of 232 apartments and complexes in Pulaski County.
Laughlin involved DeLong, an employee of Brookshire Concrete while on bond awaiting his sentencing in the SBA fraud conspiracy, in the fraud scheme. Delong, who was fired by the company for his role in the scheme, worked with Laughlin to make it appear that Brookshire Concrete was renting apartments from 4-J. This would allow 4-J to artificially inflate its occupancy levels in order to qualify for the FHA loan. Delong issued numerous checks that were made payable to 4J Apartments to give the appearance that rent was being paid by Brookshire Concrete; however, none of Brookshire’s employees ever lived in any of 4-J’s apartments. These checks contained the forged signature of the company’s owner.
These cases were prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver and Assistant U.S. Attorney Patrick Carney. They were investigated by the Small Business Administration, Office of Inspector General, the FBI and the Department of Housing and Urban Development, Office of Inspector General.
Felon from Hobbs Sentenced to 100 Months for Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Ruben Cantu, 43, of Hobbs, N.M., was sentenced today in federal court in Las Cruces, N.M., to 100 months in prison for being a felon in possession of a firearm and ammunition. He will be on supervised release for two years after completing his prison sentence.
U.S. Attorney Damon P. Martinez said that Cantu, who has six felony convictions over the past 23 years, was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Lea County, under this initiative.
“Today’s sentencing serves as an example to those criminals who continue to plague or community and utilize crime guns,” said Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “We will find you, and we will lock you up in a federal prison where you will no longer experience an iota of freedom.”
“The FBI and its federal partners are glad to work with local law enforcement to get the worst offenders off the streets and put them behind bars for a long time,” said Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. “These convictions demonstrate how federal, state and local agencies working together can make their communities safer. I am grateful to the FBI Special Agents and staff who worked on this case, along with the U.S. Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Lea County Drug Task Force, and Hobbs Police Department.”
Cantu was arrested on July 7, 2014, on an indictment charging him with two counts of being a felon in possession of a firearm and ammunition. The indictment alleged that Cantu committed the crimes on March 5, 2014, in Lea County, N.M. At the time, Cantu was prohibited from possessing firearms and ammunition because of his prior felony convictions.
On Dec. 8, 2015, Cantu pled guilty to the indictment and admitted that on March 5, 2014, he was in possession of a firearm and multiple rounds of ammunition. He further acknowledged that he was prohibited from possessing firearms or ammunition based on his status as a convicted felon.
This case was investigated by the ATF’s office in Las Cruces, the Roswell office of the FBI, the Lea County Drug Task Force and the Hobbs Police Department. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Federal and State Authorities Arrest 9 Today in Connection with Austin-Based Heroin Trafficking OrganizationRead the Press Release
This morning, federal, state and local authorities arrested nine individuals in the Austin area, including ring-leaders Xavier Martinez (aka “Javi”) and Eulalio Samarripa (aka “Chico”), for conspiring to distribute heroin announced United States Attorney Richard L. Durbin, Jr. and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
A one-count federal grand jury indictment unsealed in Austin this afternoon alleges that since April 2014, the defendants have conspired to distribute more than 500 grams of heroin.
Those arrested this morning include:
Xavier Martinez (aka “Javi)
Age: 47
Residence: BastropLisa Martinez
Age: 46
Residence: BastropXhavier Martinez
Age: 25
Residence: BastropBobby Martinez
Age: 51
Residence: AustinDarrell Cano
Age: 49
Residence: BastropEulalio Samarripa (aka “Chico”)
Age: 48
Residence: AustinSandra Davila
Age: 41
Residence: AustinRay Armonta
Age: 30
Residence: AustinZaragosa Marez (aka “Gus“)
Age: 51
Residence: AustinUpon conviction, the defendants face sentences of between ten years and life in federal prison. All of the defendants remain in federal custody pending detention hearings later this week.
This eleven-month investigation was conducted by the Drug Enforcement Administration together with the Austin Police Department, Bastrop County Sheriff’s Office, Travis County Sheriff’s Office and the Texas Department of Public Safety.
Assistant United States Attorney Mark Marshall is prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Federal Charges filed in FBI Gate Crashing IncidentRead the Press Release
PITTSBURGH – Federal charges were filed this afternoon in connection with the intentional destruction of a security gate at the Federal Bureau of Investigation’s Pittsburgh Division headquarters, United States Attorney David J. Hickton announced today.
The criminal complaint charges Thomas Ross, 48, with Damaging Government Property and Causing Damage to Buildings or Property within the Special Maritime and Territorial Jurisdiction of the United States.
According to the complaint, on July 26, 2016, an officer with the traffic division of the Pittsburgh Police observed a very large dump truck vehicle driving on Carson Street in the Southside neighborhood of Pittsburgh. According to the officer the dump truck vehicle was driving erratically and unsafely, and, in fact, drove past the officer, who was sitting at a red light, at a high rate of speed before proceeding to run through several more red lights. The dump truck vehicle proceeded to Sidney Street into the parking lot of a Giant Eagle GetGo gas station, before being stopped by the officer. Upon approaching the dump truck vehicle, the traffic officer encountered an individual later identified as Thomas Ross, who was the driver of the vehicle. The officer ordered Ross out of the vehicle, but Ross refused to get out. On the third command, Ross stated to the officer that he had a bomb and that he had to see the FBI (which was across the street at that point). At that point, Ross put the dump truck vehicle into gear, and proceeded to the front gate of the FBI Pittsburgh Field Office, located at 3311 East Carson Street, Pittsburgh, Pa., at a high rate of speed. The FBI Pittsburgh Field Office is the property of the United States government and exists within the Special maritime and territorial jurisdiction of the United States. The front entrance gate of the FBI Pittsburgh has a guard booth which at the time was occupied by a security officer as well as several security barriers. Ross proceeded to ram the through the security barriers at a high rate of speed, causing the dump truck vehicle to go airborne while causing extensive damage to the vehicle. Upon hitting the ground, the dump truck vehicle struck a nearby light post in the interior parking lot of the FBI Pittsburgh, causing that light post to fall. The FBI estimates that the damage caused by Ross will exceed $1,000.
A date and time for the defendant to appear in federal court in Pittsburgh has not been set.
The penalties for violation of Title 18, United States Code, Section 1361 - Damaging Government Property or Contracts – are tied to the extent of the property damage. If the damage exceeds $1000, the defendant is subject to a fine of up to $250,000, 10 years imprisonment, or both. The penalties for violation of Title 18, United States Code, Section 1363 - Causing Damage to Buildings or Property within the Special Maritime and Territorial Jurisdiction of the United States - differ where human life is endangered or a dwelling is damaged or destroyed. When neither a dwelling nor a human life is endangered, the defendant is subject to a fine of up to $250,000, five years imprisonment, or both; otherwise the defendant may be punished by a fine of up to $250,000, 20 years imprisonment, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
A criminal complaint is only a charge and is not evidence of guilt. A defendant may not be prosecuted unless, within 30 days, a grand jury has found probable cause to believe that he is guilty of an offense.
Assistant United States Attorney Jimmy Kitchen is prosecuting this case. Special agents of the FBI and investigators from the Pittsburgh Bureau of Police conducted the investigation that led to the complaint against this defendant.
Evansville man sentenced for interstate transportation of stolen motor vehiclesRead the Press Release
Evansville – United States Attorney Josh Minkler, announced today that Andrew R. Elpers, 38, of Evansville, Indiana, was sentenced to 51 months in prison by U.S. District Chief Judge Richard L. Young for five counts of interstate transportation of stolen motor vehicles and one count of money laundering. The case was the result of an investigation by the FBI Safe Streets Task Force, the Internal Revenue Service-Criminal Investigation, Evansville Police Department and the Vanderburgh County Sheriff’s Department.
“Mr. Elpers thought he could escape justice by transporting vehicles across state lines,” said Minkler. “Nothing could be further from the truth. In this district federal and local law enforcement officials work closely to help keep our communities safe from criminals.”
On May 23, 2016, during his guilty plea, Elpers admitted to the Court that he unlawfully transported in interstate commerce approximately 32 stolen motor vehicles many of which were large pieces of excavating equipment. Elpers also admitted to committing money laundering by trading in a stolen motor vehicle and using the proceeds to purchase a new vehicle, knowing that the proceeds were derived from unlawful activity.
Elpers admitted stealing excavating equipment from three different states, Illinois, Missouri and Indiana. Elpers was found to have moved some of the stolen equipment to North Carolina where he used the equipment to make improvements to property he owned there. He admitted he had special skills in using excavating equipment that enabled him to override security measures and drive the equipment away from victim dealerships. In total, the stolen motor vehicles had a value of over 1.5 million dollars.
IRS Criminal Investigation Special Agent in Charge James Robnett stated, “IRS Criminal Investigation is united with our federal partners and local law enforcement to do what we do best and that is to follow the money. IRS Criminal Investigation was able to follow the proceeds and financially disrupt Mr. Elpers interstate scheme.”
Two other defendants Jordan T. Wedel and Jason H. Habernel have pleaded guilty and are awaiting sentencing. Tomas W. Elpers, (Andrew’s father) is awaiting trial.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young also imposed 3 years of supervised release following Elper’s release from prison. Elpers was also ordered to pay $453,456.80 in restitution to the victim dealerships and insurance companies.
Espanola Man Sentenced to Prison for Violating Federal Narcotics Trafficking LawsRead the Press Release
ALBUQUERQUE – Matthew Martinez, 38, of Espanola, N.M., was sentenced today in federal court in Albuquerque, N.M., to 70 months in prison followed by three years of supervised release for his conviction on a heroin trafficking charge. Martinez also was ordered to pay $500 in community restitution and to pay a $2,000 money judgment to the United States.
Martinez was arrested on Dec. 3, 2015, on a three-count indictment charging him with heroin trafficking offenses. The indictment charged Martinez with distributing heroin in Bernalillo County, N.M., on April 30, 2015. It also charged Martinez with distributing heroin on two occasions in Santa Fe, N.M.; the first time on May 1, 2015 and the second on Sept. 16, 2015.
On March 21, 2016, Martinez pled guilty to distributing heroin on Sept. 16, 2015. In his plea agreement, Martinez admitted selling approximately two ounces of heroin to an undercover FBI agent outside of a Santa Fe-area Walmart store. By his own admission, Martinez is associated with the Syndicato de Nuevo Mexico (SNM) prison gang and became involved in the heroin trade as a result of his gang affiliation.
“New Mexico’s Espanola Valley has had one of the country’s highest heroin overdose death rates for decades. Every time a heroin trafficker is removed from the Valley, the community continues its efforts to turn the tide against the heroin epidemic that has devastated its residents for generations,” said U.S. Attorney Damon P. Martinez. “This prosecution is part of a bigger effort that we call HOPE. The HOPE Initiative recognizes that law enforcement is only part of the answer, and that the community’s treatment, prevention and education needs must also be addressed.”
“New Mexico for too long has had the unenviable distinction of having one of the highest heroin-related death rates in the country,” said Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. “Today's sentence should send a clear signal the FBI is committed to bringing to justice those drug-traffickers who endanger our communities and destroy so many lives. I would like to thank the FBI Special Agents and support staff, Santa Fe County Sheriff’s Office and New Mexico Corrections Department for their work on this case, and I congratulate the U.S. Attorney's Office on a successful prosecution.”
The Santa Fe office of the FBI investigated this case with assistance from the Santa Fe County Sheriff’s Office and the New Mexico Corrections Department. The Organized Crimes Section of the U.S. Attorney’s Office prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Elkhart Man Sentenced to 120 Months for Possession of A Stolen FirearmRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that James Johnson, 24, of Elkhart, Indiana was sentenced before Judge Jon E. DeGuilio for possession of a stolen firearm.
Johnson was sentenced to 120 months’ imprisonment and 2 years of supervised release.
According to documents filed in this case, Johnson burglarized a firearms dealer in the St. Joseph County Area. More than 10 firearms were stolen during that time. On August 12, 2015, one of the firearms was recovered in Johnson’s home in Elkhart, Indiana.
This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
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El Cajon Man Sentenced to Life in Prison for Drug CrimesRead the Press Release
Assistant U. S. Attorney Jose Castillo (619) 546-6745 and Stephen Wong (619) 546-9464
NEWS RELEASE SUMMARY – July 26, 2016
SAN DIEGO – West Coast Crips gang member Randy Alton Graves was sentenced in federal court this morning to life in prison for multiple drug-related crimes.
The U.S. Attorney’s Office elected to seek an enhanced sentence based on his egregious conduct over decades. At the sentencing hearing, the court noted that Graves has more than a dozen felony and misdemeanor convictions from 1976 to 2012, ranging from voluntary manslaughter to gun crimes to multiple drug offenses. The enhancement raised the mandatory minimum sentence for Graves’ crimes to life in prison.
Graves was convicted by a federal jury on April 4, 2016 of conspiracy to distribute more than 50 grams of methamphetamine; conspiracy to distribute more than 1,000 kilograms of marijuana; and possession with intent to distribute more than 50 grams of methamphetamine. Following a five-day trial, the jury deliberated for about three hours before returning its verdict.
During sentencing, U.S. District Judge Dana Sabraw noted that he also considered Graves’ role in the murder of a government witness, sex trafficking, possession of firearms, and other instances of drug dealing in determining that a life sentence was appropriate - even without a mandatory minimum requirement.
According to evidence presented at trial, Graves sold methamphetamine to a confidential informant on four occasions between August and October of 2013. The government also played for the jury intercepted phone calls in which Graves recruited three men to travel to Lompoc, California, to unload a boat carrying 5,000 pounds of marijuana from Mexico. The government also presented evidence obtained from a search warrant executed on Graves’ residence which showed Graves in possession of 79 grams of methamphetamine found in Graves’ refrigerator and two loaded guns.
Graves was initially indicted in June 2014 with racketeering charges connected to the West Coast Crips criminal street gang. The racketeering activity alleged in that indictment included several homicides, drug, and sex trafficking crimes. Graves’ case was severed from the larger racketeering trial and proceeded to trial only on certain drug charges.
This case was prosecuted by Assistant U.S. Attorneys Jose Castillo and Stephen Wong.
This guilty verdict is the fruit of the collaborative work of the FBI’s East County Regional Gang Task Force and the Violent Crimes Gang Task Force, the San Diego Police Department’s gang and homicide units; the ATF; the El Cajon Police Department; the La Mesa Police Department; San Diego County Probation; the IRS; U.S. Postal Inspectors; the San Diego County Sheriff’s Department; and the California Highway Patrol.
This investigation was coordinated by an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was created to consolidate and coordinate all law enforcement resources in this country's battle against major drug trafficking rings, drug kingpins, and money launderers.
DEFENDANT Case Number 14CR1288-DMS
Randy Alton Graves Age: 53 El Cajon, CA
SUMMARY OF CHARGES
Count One
Conspiracy to distribute methamphetamine – Title 21, U.S.C., Section 851
Count Two
Conspiracy to distribute marijuana – Title 21, U.S.C., Section 851
Count Three
Possession with the intent to distribute methamphetamine– Title 21, U.S.C., Section 851
Maximum penalty: Life in prison
AGENCIES
San Diego Police Department Gang and Homicide Units
East County Regional Gang Task Force
Violent Crimes Task Force - Gang Group
Task Force agencies include:
FBI
San Diego Police Department
ATF
El Cajon Police Department
La Mesa Police Department
San Diego County Probation
IRS Criminal Investigation
U.S. Postal Inspectors
San Diego County Sheriff’s Department
California Highway Patrol
Detention Hearing Held for Cedar Rapids Man Charged with Sexual Exploitation of Children and Enticement of MinorsRead the Press Release
Tyler Konigsmark, age 20, of Cedar Rapids, Iowa, appeared today in federal court in Cedar Rapids for a detention hearing. Konigsmark was ordered held without bond pending further proceedings.
Konigsmark has been charged with sexual exploitation of children and enticement of minors. The charges are contained in an Indictment unsealed on July 21, 2016. The Indictment alleges that, between April and May 2016, Konigsmark persuaded and attempted to persuade, induce, and entice minors to engage in sexually explicit conduct for the purposes of producing visual depictions and engaging in sexual activity.
According to information disclosed at today’s detention hearing, between March and May 2016, Konigsmark was employed by the Cedar Rapids Community School District as a school bus attendant. Konigsmark was an attendant on buses servicing, at least, Taft and Harding middle schools. While working as a bus attendant, Konigsmark allegedly used a mobile telephone to contact two minor females, ages 13 and 14, and attempted to persuade the girls to send him nude images of themselves. Konigsmark also allegedly contacted a third minor female, age 12, and persuaded the girl to send him nude images of herself. The 12-year-old girl allegedly sent him nude images of her breasts and vagina. Konigsmark also allegedly engaged in sexual intercourse with the 12-year-old girl.
Konigsmark’s next appearance for trial is scheduled for September 19, 2016, in Cedar Rapids. If convicted, Konigsmark faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $500,000 fine, a $200 special assessment, and at least five years and up to life on supervised release following any imprisonment.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Iowa Division of Criminal Investigation, the Hiawatha Police Department, and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-57. Additional information about the case can be found at https://www.justice.gov/usao-ndia/united-states-v-tyler-konigsmark-16-cr-00057.
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Defendant Franklin John Salas Sentenced to 108 Months IncarcerationRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that on July 25, 2016, Defendant FRANKLIN JOHN SALAS was sentenced by the Honorable Frances Tydingco-Gatewood, Chief Judge, District Court of Guam. Defendant was sentenced to serve 108 months incarceration followed by three years of supervised release, with credit for time served.
Defendant FRANKLIN JOHN SALAS pled guilty on December 9, 2014 to Attempted Possession of Methamphetamine with Intent to Distribute in violation of Title 21 U.S.C. Section 846(a)(1) and (b)(1)(C). Defendant SALAS attempted to receive 52.6 grams of methamphetamine hydrochloride at the Barrigada Post Office on October 29, 2014. The methamphetamine was concealed within card-sized envelopes and sent from Las Vegas, Nevada to Guam where it was intercepted by the U.S. Postal Inspector. The Drug Enforcement Administration Forensic Laboratory determined that the methamphetamine had a high purity level of 98.8%.
U.S. Attorney Limtiaco notes that methamphetamine hydrochloride is associated with violent crimes and has a devastating effect on individuals and the community. The U.S. Attorney’s Office is committed to the aggressive prosecution of cases involving drug distribution.
The investigation was conducted by the Guam U.S. Postal Inspector and Drug Enforcement Administration. The case was handled by Assistant U.S. Attorney Rosetta San Nicolas.
Columbia Man Sentenced for Renting Room to Use HeroinRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for renting the motel room where a 16-year-old female died of a heroin overdose.
Jon Patrick Washington, also known as “Doom,” 30, of Columbia, was sentenced by U.S. District Judge Brian C. Wimes to five years in federal prison without parole. Washington has been in federal custody since his arrest in 2014.
On Jan. 28, 2016, Washington pleaded guilty to maintaining a drug-involved premise. Washington admitted that he rented a room at the Providence Inn and Suites Motel, 1718 Providence Road in Columbia (now closed), for the purpose of using heroin from April 1 to April 3, 2014.
Columbia police officers responded to a suspected heroin overdose death at Washington’s motel room on April 3, 2014. The victim was a 16-year-old female. Based on information from a confidential informant, Washington was located later the same day and brought in for questioning by law enforcement. He admitted that he had injected the juvenile victim with heroin at about 8:30 p.m.
Washington told law enforcement officers that the juvenile was nodding off from a prior heroin injection, and that the juvenile and another individual (who Washington claimed supplied the heroin to the juvenile) kept asking him to help shoot the juvenile up again. Washington said the needle was already filled with heroin prior to him injecting the juvenile. Washington told officers that he found a vein on the juvenile on his second attempt.
Washington admitted that another individual and the juvenile victim gave him the money to rent the motel room. Washington had previously been renting another room at the motel, but moved into the new room on April 1. Washington admitted that he knew the room was being used by the juvenile to use heroin.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Columbia, Mo., Police Department, the Drug Enforcement Administration and the Missouri State Highway Patrol.
Cambridge Man Sentenced for Possession of a Firearm Later Used to Kill Police OfficerRead the Press Release
BOSTON – A Cambridge man was sentenced today in U.S. District Court in Boston for possession of the firearm with an obliterated serial number, which was later used to murder MIT Police Officer Sean Collier.
Merhawi Berhe, 22, was sentenced today by U.S. District Court Judge William G. Young to six months in prison and two years of supervised release. In March 2016, Berhe pleaded guilty to possession of a firearm with an obliterated serial number.
In January 2013, Berhe was in possession of, and transferred to another individual, a Ruger P95 9mm semiautomatic handgun with an obliterated serial number. That individual subsequently transferred the Ruger to Stephen Silva who then provided the Ruger to Dzhokhar Tsarnaev, one of the Boston Marathon bombers. On April 18, 2013, the Ruger was used by the Boston Marathon bombers to kill MIT Police Officer Sean Collier.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Lawrence J. Panetta, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; Colon Richard D. McKeon, Superintendent of the Massachusetts State Police; Cambridge Police Commissioner Christopher Burke; and MIT Police Chief John DeFava, made the announcement today. The Portland, Maine Police Department also assisted with the investigation. The case was prosecuted by Ortiz’s Organized Crime and Gang Unit.
Buffalo Man Pleads Guilty to Drug ChargeRead 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 Reginald Brown, 48, of Buffalo, NY, pleaded guilty to possession with intent to distribute, and distribution, of cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in and a $1,000,000 fine.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that on November 9 and November 16, 2011, the defendant sold approximately 13 grams of cocaine to a confidential informant working with the Federal Bureau of Investigation.
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge.
Sentencing is scheduled for November 3, 2016 at 1:00 p.m. before Judge Arcara.
Buffalo Man on the Run for One Year Arraigned on Drug ChargeRead 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 Antwan Hugley, 37, of Buffalo, NY, who was indicted in June 2015 on a charge of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of $10,000,000, or both.
“I commend the unrelenting efforts of FBI special agents who did not give up and continued to track this defendant until he was taken into custody,” said U.S. Attorney Hochul.
Assistant U.S. Attorneys Edward H. White and Michael J. Adler, who are handling the case, stated that at the time of his indictment in June 2015, the defendant evaded arrest. Law enforcement officers continued to investigate and tracked Hugley’s whereabouts to Orlando, Florida where he was arrested on June 29, 2016.
The defendant is accused of conspiring with others including co-defendant Trammel Bishop between 2011 and December 9, 2014 to distribute cocaine. On August 13, 2013, Houston, Texas police officers encountered Bishop at the Mega Bus parking lot in Houston. Officers asked Bishop if they could search his suitcase and he consented. The officers discovered approximately five kilograms of cocaine hidden in the back of the suitcase. Bishop indicated that he was intending to travel back to Buffalo, NY. Bishop has been convicted and is awaiting sentencing.
Hugley pleaded not guilty and is being held pending a detention hearing on July 29, 2016 at 10:30 a.m. before Judge McCarthy.Today’s arraignment is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge, and the Houston Police Department, under the direction of Police Chief Martha I. Montalvo.
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.
Boise Man Sentenced to Ten Years in Prison for Distributing Methamphetamine and Unlawful Possession of a FirearmRead the Press Release
BOISE – Agustin de Jesus Aguirre, 28, of Boise, Idaho, was sentenced today to ten years in prison and five years of supervised release for distribution of methamphetamine and unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Aguirre to forfeit $4,250 in drug proceeds and a Smith and Wesson, 9mm pistol. Aguirre pleaded guilty on April 19, 2016.
According to evidence presented in court, Aguirre distributed methamphetamine to an undercover officer on three occasions, selling over five ounces of methamphetamine. Aguirre was arrested on August 11, 2015, on an unrelated state probation violation and was found to be in possession of a 9mm pistol. Aguirre was prohibited from possessing any firearms under federal law as a result of his 2013 conviction for misdemeanor domestic battery.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Boise Police Department.
Barren County, Kentucky, Man Sentenced to 42 Months in Prison for Defrauding Supplemental Security Income ProgramRead the Press Release
Defendant misrepresented his mental condition to qualify for benefits
Ordered to pay $106,716.07 in restitution to victim agencies
BOWLING GREEN, Ky. – A Cave City, Kentucky, man was sentenced yesterday in United States District Court, by District Judge Greg N. Stivers, to 42 months in prison, and ordered to pay restitution of $24,884.80 to the Social Security Administration and $81,831.27 to the Kentucky Department for Medicaid Services, the victim agencies, for defrauding the Supplemental Security Income program, announced United States Attorney John E. Kuhn, Jr.
“Safeguarding programs designed to help those in need is a priority of my office,” stated U.S. Attorney Kuhn. “Defendant Thompson committed a crime when he failed to report income and falsely misrepresented his mental condition in order to receive Supplemental Security Income benefits. He was neither qualified to receive benefits nor should he have received benefits.”
Between August 2009 and April 2013, Gary Hank Thompson, 34, made misrepresentations in order to receive Supplemental Security Income benefits from the Social Security Administration in the amount of $24,884.80, to which he was not entitled. Supplemental Security Income is a federal government program that provides benefits to individuals who are disabled and have limited income and resources.
In his initial application for Supplemental Security Income, Thompson also applied for Medicaid, and during the same period, obtained $81,831.27 in Medicaid benefits.
At various points, including during the initial field interview with Social Security Administration personnel in August 2009, and during the April 15, 2013, redetermination meeting with Social Security Administration personnel in Warren County, Kentucky, defendant Thompson falsely represented his mental condition by slowing his speech and stuttering, and generally saying and doing things to make it seem that he had issues with comprehension, when he did not. Defendant misrepresented his mental condition in this way to qualify for benefits and to continue qualifying for Supplemental Security Income benefits. Thompson’s misrepresentations of his mental condition were material to whether he would receive Supplemental Security Income benefits, as he initially qualified under “organic mental disorders.” When the Social Security Administration was provided with accurate information concerning the Defendant’s mental condition, it reevaluated whether he qualified for Supplemental Security Income and determined he did not.
Additionally, the Defendant made material omissions and misstatements regarding his income and resources, which affected his eligibility for Supplemental Security Income benefits.
This case was prosecuted by Assistant United States Attorney Amanda E. Gregory and was investigated by the Office of the Inspector General of the Social Security Administration.
Alleged Sinaloa Cartel Operator Mauricio Sanchez-Garza Extradited from Mexico to Face Federal Charges in San AntonioRead the Press Release
In San Antonio this afternoon, 45-year-old Mexican National Mauricio Sanchez-Garza made his initial appearance in federal court following his extradition from Mexico yesterday. Sanchez is charged by two federal grand jury indictments in the Western District of Texas with laundering drug distribution proceeds and committing extortion in a scheme involving a Hollywood screenplay. That announcement was made today by United States Attorney Richard L. Durbin, Jr.; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter; and, Texas Attorney General Ken Paxton.
Sanchez had remained a fugitive since fleeing the United States to avoid prosecution in 2010. Sanchez faces two separate federal grand jury indictments. On December 15, 2010, a federal grand jury charged Sanchez with one count of conspiracy to commit extortion and one count of money laundering. On July 20, 2011, a separate federal grand jury charged Sanchez with one count of conspiracy to commit money laundering.
According to court records (SA10CR1088), in 2008, Sanchez and 38-year-old Mexican National Jorge Vasquez Sanchez conspired to steal by force a movie manuscript from its rightful owner. The movie, a project between the owner and Proud Mary Productions, was billed as a prequel to “The Passion of Christ.”
On June 12, 2013, Jorge Vasquez Sanchez was sentenced to four years in federal prison followed by three years of supervised release after pleading guilty to one count of extortion. The Court also ordered that Jorge Sanchez forfeit to the Government his rights and interests in the movie project—15% of the net profits of the motion picture.
According to court records (SA11CR616), from 2005 until July 2011, Mauricio Sanchez, Jorge Sanchez and Mauricio’s brother, 47-year-old Mexican National Alejandro Sanchez-Garza, conspired to transport into the United States and conduct financial transactions with proceeds derived from illegal drug trafficking in order to conceal the nature of the funds. Specifically, the defendants entered into joint ventures with drug traffickers by funneling proceeds generated from drug trafficking through their businesses and corporate entities to make the proceeds appear to be legitimate and lawful; insulate the drug traffickers from evidence of criminal involvement in the proceeds; and, to attempt to make a profit for both the defendants and the drug traffickers.
This indictment also contains a notice of criminal forfeiture which seeks the forfeiture of two San Antonio commercial properties as well as a 1991 Bombardier Learjet 31. The indictment also seeks a monetary judgment in the amount of $5 million representing proceeds derived from the above-mentioned scheme.
Alejandro Sanchez-Garza was arrested in September 2012. On August 19, 2014, Alejandro Sanchez-Garza was sentenced to 30 months in federal prison followed by three years of supervised release after pleading guilty to one count of conspiracy to commit money laundering. The Court also ordered that Alejandro Sanchez forfeit to the Government his rights and interests in the properties as well as the Learjet.
This case was investigated by the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Texas Attorney General’s Office. The Justice Department's Office of International Affairs provided assistance with the extradition. The department appreciates the support of the government of Mexico in extraditing the defendant to the United States.
9 Charged in Manhattan Federal Court with Trafficking Kilograms of Cocaine Through the U.S. Mail SystemRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), and James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), announced the unsealing of an indictment charging nine defendants with conspiring to distribute kilogram quantities of cocaine, and in particular, shipping the cocaine from Puerto Rico to New York City through the United States Postal Service (“USPS”) mail system. Seven of the defendants were taken into federal custody this morning and will be presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Ronald L. Ellis. Two defendants remain at large.
Manhattan U.S. Attorney Preet Bharara stated: “As alleged, the defendants engaged in a brazen scheme to turn the U.S. Postal Service into their own drug delivery service. The defendants, which includes an employee of the U.S. Postal Service, allegedly schemed to ship multiple kilograms of cocaine through the mail, going so far as to claim, in one instance, that a lost package contained the ashes of a cremated relative, when in fact, it contained cocaine.”
USPIS Inspector in Charge Philip R. Bartlett stated: “Drug Trafficking Organizations have been moving large quantities of cocaine through Puerto Rico to the New York metropolitan area for many years, destroying the lives of many through addiction and despair. Today’s arrests should send a strong message to drug traffickers that the United States Postal Inspection Service will spare no resource or expense to protect the sanctity of the mail.”
DEA Special Agent in Charge James J. Hunt said: “Drug dealers’ desperation for product is just as desperate as an addict’s; however the dealer’s ‘fix’ is the profit made off the sale of poison. This investigation underscores the extent drug traffickers will go to in order to smuggle illegal drugs into the United States. The DEA Strike Force, USPIS, and U.S. Attorney’s Office Southern District of New York collaborated resources that uncovered a cocaine trafficking organization responsible for pumping millions of dollars-worth of drugs onto New York City streets.”
According to the allegations contained in an Indictment[1] unsealed today in Manhattan federal court:
Between May 2015 and July 2016, the defendants JUSTIN ACOSTA, ELEELIN DIAZ, JOSE DIAZ, a/k/a “Gordo,” CRISTIAN GARCIA, KELVING HERNANDEZ, FELIX JIMENEZ, a/k/a “Daddy,” ROBERT RODRIGUEZ, a/k/a “Smiley,” MIGUEL TORRES, a/k/a “Ant,” and BRITNEY WORTHY conspired to distribute and possess with intent to distribute five kilograms and more of cocaine.
The defendants operated the drug-trafficking scheme by arranging for the shipment of cocaine from Puerto Rico to various locations in New York City through the USPS, retrieving cocaine from various delivery locations, transporting cocaine to residences and a storage facility, and repackaging and selling the cocaine to individual customers. Since February 2016, law enforcement officers have seized more than 25 kilograms of cocaine from shipments associated with the defendants.
Defendant HERNANDEZ is an employee of the USPS, and assisted co-conspirators by agreeing to track parcels and identifying locations to which narcotics could be sent.
Defendant RODRIGUEZ was involved in facilitating, receiving, and distributing the shipment of cocaine through USPS parcels, and contacted the USPS multiple times for information on the status and location of certain parcels that contained cocaine. In communications with the USPS, including in an email RODRIGUEZ sent directly to the U.S. Postmaster General, RODRIGUEZ falsely asserted that one of the parcels, which he believed had been lost, contained the cremated ashes of his purportedly deceased father. In fact, that parcel had been seized and found to contain approximately two kilograms of cocaine.
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ACOSTA, 26, JOSE DIAZ, 36, GARCIA, 31, JIMENEZ, 28, RODRIGUEZ, 36, TORRES, 34, and WORTHY, 24, were arrested this morning. ELEELIN DIAZ, 27, and HERNANDEZ, 42, remain at large. Each is charged with one count of conspiring to distribute and possess with the intent to distribute narcotics, which carries a maximum sentence of life in prison and mandatory minimum sentence of 10 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the Court.
Mr. Bharara praised the outstanding investigative work of the USPIS and of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service, Criminal Investigation Division, the Federal Bureau of Investigation, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, the New York Department of Taxation and Finance, the Rockland County Sheriff’s Office, the Clarkstown Police Department, the Port Washington Police Department, and the New York State Department of Corrections and Community Supervision. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), which is a federally funded crime fighting initiative.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Alex Rossmiller and David Abramowicz are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Monday 25 July 2016
Williams Memorial CME Church to Host Protecting Houses of Worship SeminarRead the Press Release
Augusta, GA – Williams Memorial CME Church will host a Protecting Houses of Worship seminar on Tuesday, July 26 at 6 p.m. Participating in the event will be the United States Attorney’s Office, the FBI and Richmond County Sheriff’s Office.
Law enforcement personnel and local religious and civil leaders will have a discussion on how to prevent and respond to incidents of violence in houses of worship and during religious ceremonies. The event, which is open to the public, will educate community members on what to do to provide safety and security during religious meetings of all denominations.
The seminar will take place at the Williams Memorial CME Church at 1630 15th Street, Augusta, Georgia 30901. For additional information please contact Nic Roberts at 912-652-4422.
Virginia man sentenced for unlawful possession of firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – Evan Megeath, 33, of Strasburg, Virginia, was sentenced today to 27 months in prison for unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Megeath, who has previous felony convictions in state court in Virginia, was discovered in unlawful possession of a .22 caliber rifle in July 2015 in Jefferson County, WV. Megeath was previously convicted in the Circuit Court of Warren County, Virginia of the felony offenses of one count of “Breaking and Entering,” two counts of “Grand Larceny,” two counts of “False Pretenses,” one count of “Bad Check,” and one count of “Possession of a Schedule II Controlled Substance.”
Megeath pled guilty in April 2016 to one count of “Felon in Possession of a Firearm.”
Assistant U.S. Attorneys Paul T. Camilletti and Anna Z. Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Vinton Woman Admits Methamphetamine TraffickingRead the Press Release
A Vinton woman who possessed methamphetamine with intent to distribute pled guilty today in federal court in Cedar Rapids.
Angelika McAtee, age 58, from Vinton, Iowa, was convicted of possessing over 48 grams of pure methamphetamine with intent to distribute it.
At the plea hearing, McAtee admitted that she had been selling methamphetamine. She also admitted to possessing the methamphetamine seized from her Vinton, Iowa, residence on April 29, 2016, and intended to distribute it to others.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. McAtee was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. McAtee faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and 3 years to life on supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel Tvedt and was investigated by Vinton Police Department, Benton County Sheriff’s Office, Iowa Division of Narcotics Enforcement, United States Department Homeland Security, Homeland Security Investigations, Bureau of Alcohol, Tobacco and Firearms, Benton County Conservation Commission, and the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-0045.
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U.S. Marshal, U.S. Attorney to Hold Community Open House August 9 and 10 at Boise City LibraryRead the Press Release
BOISE – Confidence in government and the enforcement of law is achieved by providing true justice and being sincere in our working relationships with all people. In Idaho, the work of our local law enforcement is really amazing to see – and we are proud to work with such great professionals and police leadership. Seeing Boise Police Chief Bill Bones reach out by riding the greenbelt is truly at the heart of community policing, and relationship building.
Because it is important to have confidence in all levels of law enforcement, to include the federal government, U.S. Attorney Wendy Olson and U.S. Marshal Brian Underwood would like to meet with any interested community member in Idaho to shake your hand and let you know we are committed to making justice work for you in Idaho. Because events in the past few weeks have been difficult for our nation and our law enforcement community, making an effort to connect as humans is so critical. Having you come to our office is not always practical, and we must do more to reach out and make that connection.
With that in mind, as United States Marshal and United States Attorney for the District of Idaho, we invite all members of the public to visit with us. We will be at the Boise City Library, 715 South Capitol Blvd. on Tuesday, August 9th from 1 – 3 p.m. and again on Wednesday, August 10th from 4 – 6 p.m. We will be available for any question, concern or issue you would like to talk about. Frankly, we simply want you, the public, to have a chance to personally visit with your federal law enforcement leadership in Idaho.
These are challenging times for law enforcement. We know we must continue to perform our duties in the highest traditions of our profession and never forget that we are here to serve our communities and stand as a symbol of all that is equal and just.
U.S. Attorney Appoints New First Assistant U.S. Attorney for the District of AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Assistant U.S. Attorney, Bryan Schroder has been appointed to the position of First Assistant U.S. Attorney (FAUSA) and Criminal Chief for the United States Attorney’s Office, District of Alaska. Mr. Schroder replaces FAUSA Kevin Feldis, who has taken the position as the Resident Legal Advisor for the Department of Justice, Office of Professional Development and Training (OPDAT), for Jakarta, Indonesia. Mr. Feldis will be working with the United States Embassy in Jakarta on a temporary detail and will remain as a member of the United States Attorney’s office for Alaska.
Bryan Schroder has been an Assistant U.S. Attorney since 2005, and is a retired U.S. Coast Guard Captain. He is a 1981 graduate of the U.S. Coast Guard Academy, and 1991 graduate of the University of Washington School of Law. He served 24 years in the Coast Guard, initially in operational assignments in Seattle, Long Beach, California, and San Diego. He then served as a judge advocate in Juneau, Anchorage, Miami, New York, and Colorado Springs. As an Assistant U.S. Attorney, he has handled cases involving drugs, guns, violent crime, fisheries, environmental crime, tax violations, and fraud.
U.S. Attorney Announces “Be Here for Kids” Child Safety Event in TucsonRead the Press Release
TUCSON, Ariz. - The U.S. Attorney’s Office for the District of Arizona, as part of the Department of Justice’s Project Safe Childhood initiative, is hosting the “Be Here For Kids” event on Friday, July 29, 2016 at the Foothills Mall, in Tucson, Ariz. The event will take place from 10:00 a.m. to 3:00 p.m.
The National Center for Missing and Exploited Children (NCMEC) created the “Be Here For Kids” campaign to promote awareness about all child safety issues. The campaign is designed to help parents and others teach children to be aware, alert, and cautious to potential threats and to provide steps that children can take to stay safe, both on the Internet and in daily life. Families also are encouraged to take 25 minutes to talk to their children about abduction, safety prevention, and good digital citizenship online.
“The annual ‘Be Here For Kids’ national child safety campaign provides a good reminder for children and families about digital safety in the online world and overall as children prepare to go back to school in the coming weeks.” said United States Attorney John S. Leonardo. “This event is designed to increase awareness among parents and children of the potential threats to child safety present in daily life, including the Internet, and to help equip them to better avoid those threats.”
This year’s event is being presented in partnership with several federal and local law enforcement agencies, as well as the Children’s Advocacy Center, Pima County Attorney’s Office, and the Arizona Attorney General’s Office. Interactive children’s self-defense demonstrations by Ko Sho Martial Training Institute will take place throughout the day, and Marana Police Department will also be providing free digital child identification kits during the event.
For more information on NCMEC, visit www.missingkids.com. For more information about the Take 25 campaign, visit www.Take25.org. For more information on Project Safe Childhood, visit www.projectsafechildhood.gov.
RELEASE NUMBER: 2016-56__Be Here For Kids
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Two sentenced for drug distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two individuals were sentenced for drug distribution in federal court in Martinsburg today, United States Attorney William J. Ihlenfeld, II, announced.
Laquan Eugene Johnson, 36, of Baltimore, Maryland, was sentenced to 210 months in prison for distributing heroin. Johnson pled guilty in April 2016 to one count of “Distribution of Heroin.”
Ronald Lee Jackson, 29, of Martinsburg, West Virginia, was sentenced to 60 months in prison for distributing crack cocaine. Jackson pled guilty in April 2016 to one count of “Distribution of Cocaine Base.”
Special Assistant U.S. Attorney Stephanie Taylor, also of the Berkeley County Prosecuting Attorney’s Office, prosecuted the Jackson case on behalf of the government and Assistant U.S. Attorneys Paul T. Camilletti and Anna Krasinski prosecuted the Johnson case on behalf of the government.
The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Two Conspirators Sentenced for Roles in Analogue Distribution SchemeRead the Press Release
ABINGDON, VIRGINIA – Another member of a 22-member conspiracy that brought a controlled substance analogue to Southwest Virginia from as far away as China were sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Marcy Nichole Branch, 27, of St. Paul, Virginia, previously pled guilty to one count of conspiring to possess with the intent to distribute and distribute seven kilograms of alpha-PVP, a controlled substance analogue. Today in District Court, Branch was sentenced to 235 months in federal prison.
In a separate hearing today in District Court, Teresa Ann Richard, 47, of Coeburn, Virginia, who previously pled guilty to conspiring to possess with the intent to distribute and to distribute 135 grams of alpha-PVP. Today in federal court, Richards was sentenced to 45 months in federal prison.
“These synthetic drugs are highly addictive and extremely dangerous,” United States Attorney Fishwick said today. “We will continue to partner with those in law enforcement to combat the importation and distribution of these volatile substances.”
According to evidence presented at previous hearings by Assistant United States Attorney Erin M. Kulpa, those sentenced today, and others members of the conspiracy, disturbed alpha-PVP, a controlled substance analogue, in Southwest Virginia between 2012 and 2015. Members of the conspiracy placed orders of the powder form of alpha-PVP from distributors based in Florida and China and had these items shipped to residential addresses in Wise, Virginia. The conspirators would retrieve the packages and distribute the contents to mid-and-low level dealers in and around Wise, Virginia for distribution to alpha-PVP users.
Members of the conspiracy also regularly transported the hard form of alpha-PVP, commonly known as “Gravel” from suppliers in North Carolina and Tennessee to Wise, Virginia for distribution. As part of the conspiracy, members would break the larger quantities of “Gravel” into smaller amounts for sale to drug users, typically .5 to 1 gram amounts.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, the Southwest Virginia Drug Task Force, the Virginia State Police, the Big Stone Gap Police Department, the Wise County Sheriff’s Office, the City of Norton Police Department, the Dickenson County Sheriff’s Office, the Sullivan County, Tennessee, Sheriff’s Office, the Coeburn Police Department, the Clintwood Police Department and the Wise Police Department. Assistant United States Attorney Erin M. Kulpa prosecuted the case for the United States.
Tribal Member who Shot and Killed Innocent Stranger in Parking Lot of Emerald Queen Casino Sentenced to 26 Years in PrisonRead the Press Release
A 28–year-old enrolled member of the Crow Indian Tribe of Montana was sentenced today in U.S. District Court in Tacoma to 26 years in prison and five years of supervised release for second degree murder and use of a firearm in a crime of violence, announced U.S. Attorney Annette L. Hayes. JEREMY SCHLENKER shot and killed 26-year-old Brandon Williams in the parking lot of the Emerald Queen Casino in Fife, Washington. The two men were strangers. Brandon Williams was trying to protect his companions from SCHLENKER in the early morning of March 21, 2015. At the sentencing hearing U.S. District Judge Benjamin Settle noted the “profound loss and unrelenting emotional pain” for Williams’ family saying SCHLENKER engaged in an “unprovoked act of aggression” while under the influence of alcohol and marijuana. “Let the word go out: this is no place for mixing substance abuse with weapons possession,” Judge Settle said.
“This devastating crime requires a lengthy sentence. The victim’s family and friends deserve to know that the man who murdered their loving son and friend will be severely punished for his senseless and brutal crime,” said U.S. Attorney Annette L. Hayes. “The public has a right to know that the defendant will not be out on the streets again for a long time – his anger once again fueled by alcohol, marijuana and guns. And although no sentence will undo the harm that this defendant caused, it does ensure that justice will prevail over the violent mayhem this defendant spread in his wake.”
According to records filed in the case, SCHLENKER had been drinking heavily the night of March 20, 2015.SCHLENKER traveled with his girlfriend to various locations on the Puyallup reservation assaulting his girlfriend multiple times and pointing a handgun at people – some of whom he did not know. At one point SCHLENKER hit the rear bumper of a car in the parking lot of the Emerald Queen Casino. When the driver of that car got out to check for damage, SCHLENKER pointed the gun at the driver ordering her to get back in the car. That victim was able to get away. Some 15 minutes later, still in the parking lot, SCHLENKER stopped his car behind a vehicle belonging to Brandon Williams. SCHLENKER’s car was blocking Williams’ car from pulling out of a parking space. SCHLENKER did not know Williams, but rolled down his window and pointed his gun at the four people in the car. SCHLENKER got out of his car and approached the passenger side of Williams’ car, asking if those inside had a gang affiliation. The passengers said they were just trying to leave. When Williams got out of the car, SCHLENKER pistol whipped him twice. As Williams turned back towards the driver’s door SCHLENKER fired twice, killing him.
Following the shooting SCHLENKER initially fled to Oregon where he was apprehended. SCHLENKER pleaded guilty on April 7, 2016.
Since SCHLENKER is a Tribal member and the crime occurred on Tribal land, federal courts have jurisdiction in this case.
The case was investigated by the FBI and the Puyallup Tribal Police Department. The case was prosecuted by Assistant United States Attorneys Rebecca Cohen and Ye-Ting Woo.
Three charged with manufacturing, distributing performance enhancing drugsRead the Press Release
ELKINS, WEST VIRGINIA – A federal grand jury returned an indictment charging two Florida residents and one North Carolina resident with manufacturing and distributing performance enhancing drugs, United States Attorney William J. Ihlenfeld, II, announced.
William Bagwell, 45, of Petersburg, Florida; Cole Leggett, 52, of Clearwater, Florida; and Robert Nicholson-Gould, 45, of Lexington, North Carolina, allegedly conspired with one another to violate the Federal Food, Drug, and Cosmetic Act for nearly two years.
Bagwell was the owner and operator of Freedom Pharma, a company that was a manufacturer and distributor of various unapproved prescription drugs to customers throughout the United States, including the Northern District of West Virginia. Leggett and Nicholson-Gould were both employed by Bagwell.
Freedom Pharma was not registered with the United States Food and Drug Administration as a drug manufacturer. The drugs, which include, dehydrochloromethyltestosterone, drostanolone enanthate, exemestane, methandienone, nandrolone decanoate, oxandrolone, oxymetholone, sildenafil, stanozolol, tadalafil, tamoxifen citrate, testosterone, and trenbolone, were misbranded and introduced into interstate commerce.
“The FDA ensures that drugs are safe, effective, and manufactured using good manufacturing practice” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Office. “Those who attempt to circumvent these requirements and sell potentially dangerous unapproved and misbranded products will be brought to justice.”
They were each charged with one count of “Conspiracy to Violate the Federal Food, Drug, and Cosmetic Act,” and one count of “Conspiracy to Violate the Controlled Substances Act.” In addition, Bagwell and Leggett were each charged with eight counts of “Introductions of Misbranded Drugs into Interstate Commerce,” and six counts of “Unlawful Distribution of Controlled Substances.”
They each face up to five years in prison and a fine up to $250,000 for the conspiracy to violate the Federal Food, Drug, and Cosmetic Act charge; and up to ten years in prison and a fine up to $250,000 for the conspiracy to violation the Controlled Substances Act charge. Additionally, Bagwell and Leggett face up to three years in prison and a fine up to $10,000 for each of the introduction of misbranded drugs charges; and up to ten years in prison and a fine up to $250,000 for each of the unlawful distribution charges. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is handling the case on behalf of the government. The United States Food and Drug Administration is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Three Bakersfield Brothers Charged with Manufacturing and Distributing Synthetic CannabinoidsRead the Press Release
FRESNO, Calif. — Three brothers were arrested last Friday, charged with manufacturing and distributing synthetic cannabinoids (or spice), conspiracy, and maintaining a drug-involved premise, Acting United States Attorney Phillip Talbert announced.
On Thursday, July 21, 2016, a federal grand jury returned a four-count indictment against Yousef Aezah, 27, Adhim Aezah, 22, and Dirar Aezah, 18, all of Bakersfield. All three were arraigned on Friday after their arrest before U.S. Magistrate Judge Jennifer L. Thurston in Bakersfield and entered pleas of not guilty.
According to court documents, the Aezahs operated a website, through which they distributed large quantities of synthetic cannabinoids, including AB-CHMINACA, a Schedule I controlled substance. The Aezahs manufactured the synthetic cannabinoids at a warehouse in Bakersfield and shipped the synthetic cannabinoids using U.S. Mail to customers across the country. Law enforcement executed search warrants at the manufacturing laboratory and residences of the defendants. They seized more than $300,000 in cash from the residences and seized approximately $949,000 from a bank account controlled by Yousef Aezah.
This case is the product of an investigation by the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Highway Patrol, the Bakersfield Police Department, and the Fresno Police Department. Assistant United States Attorneys Grant B. Rabenn and Jeffrey A. Spivak are prosecuting the case.
If convicted, the defendants face maximum statutory penalty of 20 years in prison and a $1 million fine for manufacturing and distributing a controlled substance, and conspiracy; and 20 years in prison and a $500,000 fine for maintaining a drug-involved premise. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Texas Man Charged with Conspiracy to Bribe Former Corrections CommissionerRead the Press Release
Jackson, Miss – Mark Longoria, 53, of Houston, Texas has been charged in a Criminal Information with conspiracy to pay bribes to former Mississippi Department of Corrections (MDOC) Commissioner Christopher B. Epps, announced Acting United States Attorney Harold Brittain and FBI Special Agent in Charge (SAC) Donald Alway.
Longoria will appear for arraignment on Tuesday, July 26, 2016, at 1:30 p.m. before U.S. Magistrate Judge Keith Ball. The maximum penalty for conspiracy is five years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Deputy Criminal Chief Darren LaMarca, Assistant United States Attorney Patrick Lemon, and financial analyst Kim Mitchell.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Teresa Malone Charged with Conspiracy to Bribe Former Corrections CommissionerRead the Press Release
Jackson, Miss – Teresa Malone, 54, of Carthage, Mississippi has been charged with paying kickbacks to former Mississippi Department of Corrections Commissioner (MDOC) Christopher B. Epps in exchange for receiving a consulting agreement involving the MDOC and its operations, announced Acting United States Attorney Harold Brittain and FBI Special Agent in Charge (SAC) Donald Alway.
Malone will appear for arraignment on Wednesday, August 3, 2016, at 2:30 p.m. before U.S. Magistrate Judge Keith Ball. She faces a maximum penalty of 20 years in prison and a $250,000.00 fine for the conspiracy count, and a maximum of 10 years in prison and a $250,000.00 fine for the bribery count.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Deputy Criminal Chief Darren LaMarca, Assistant United States Attorney Patrick A. Lemon, and financial analyst Kim Mitchell.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Silver Spring Felon Sentenced to 15 Years in Federal Prison for Distributing Acetyl Fentanyl Resulting in Death and Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Jeffrey Sean Nazari, age 44, of Silver Spring, Maryland, today to 15 years in federal prison, followed by three years of supervised release, for distributing a controlled substance analogue, and being a felon in possession of a firearm. Nazari admitted that a victim died from using the acetyl fentanyl analogue that he distributed.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to his plea agreement, for about five years Nazari knew and periodically sold heroin and other drugs to the victim. On January 4, 2015, Nazari and the victim exchanged texts wherein Nazari agreed to provide the victim with drugs. Nazari went to the victim’s residence and distributed acetyl fentanyl to the victim. The next day, the victim was found dead. The Office of the Chief Medical Examiner determined that the victim’s cause of death was acetyl fentanyl intoxication.
On January 6, 2015, another drug customer went to Nazari’s residence. As the customer left the area, members of law enforcement stopped and searched the customer’s vehicle and recovered residue from the acetyl fentanyl analogue that Nazari had sold to the customer, as well as drug paraphernalia with acetyl fentanyl analogue and heroin residue.
On January 7, 2015, a search warrant was executed at Nazari’s residence. When law enforcement entered, Nazari was in the basement bathroom, attempting to flush drugs down the toilet. Law enforcement seized from the basement bathroom approximately 7.5 grams of acetyl fentanyl analogue, 10 grams of cocaine, and nine grams of testosterone. In addition, members of law enforcement seized two digital scales from the basement bedroom closet, and a loaded .380 caliber handgun from the basement bedroom nightstand. Nazari had previous felony convictions and was prohibited from possessing firearms or ammunition.
United States Attorney Rod J. Rosenstein praised the DEA, Montgomery County Police Department, and the Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Nicolas A. Mitchell, who prosecuted the case.
Self-Styled Diamond and Gold Exporter Charged with Wire Fraud and Commodities FraudRead the Press Release
SAN JOSE - A federal grand jury in San Jose indicted Fritz Kramer on Thursday on charges of wire fraud and commodities fraud, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
According to the indictment, Kramer, 68, with a last known residence in Norway, solicited funds from investors, stating that their money would be invested in an export project in which Kramer would export gold and diamonds from the Democratic Republic of Congo to Europe, Asia, and the United States. Kramer told investors that they were investing in a short-term, quasi-philanthropic undertaking in which corrupt middlemen in Africa would be cut out of the gold and diamond export process, providing greater profits to African miners. Kramer promised the investors they would receive returns of up to ten times the amount of their investments in as short a time as one month.
Kramer, a dual citizen of the United States and Switzerland, used e-mail, phone calls, and Skype to communicate with investors, according to the indictment. In an effort to lull investors and keep them investing money in the scheme, Kramer frequently claimed that events had arisen that required an additional investment of funds in order for the export project to succeed. Over the years, Kramer cited, at one time or another, the following reasons for delays and the need for additional money from investors as a prerequisite to the success of the export project: (1) the need to pay for multiple urgent surgeries for a partner in the scheme, including brain and liver surgeries; (2) the loss of approximately $80,000-$90,000 in investor cash which was incinerated in a car accident; (3) a lawyer’s role in seizing approximately $95,000 cash in order to address Kramer’s unpaid legal bills; (4) the need to bribe alleged corrupt government officials in Africa; (5) the need to renew expired documents and certifications; (6) the need to pay for insurance; (7) the need to pay additional storage and shipping costs; (8) additional loan payments; and (9) taxes.
In furtherance of the scheme, Kramer also allegedly sent e-mails to investors which contained fake or altered documents as attachments. These fraudulent documents included falsified or altered versions of government certificates from the Democratic Republic of Congo pertaining to shipments of gold and diamonds, diamond certification documents purporting to be affiliated with an international diamond certification process Kramer described as the “Kimberley process,” and invoices for purported gold and diamond shipments. Kramer represented these fraudulent documents as official documents he received from government agencies, organizations and private companies in Africa and elsewhere. The fraudulent documents allegedly lulled investors into believing that the export project was legitimate, and provided a basis for Kramer’s ongoing requests for additional investments in the program. Kramer also sent e-mails to investors discussing a Kimberley process for the certification of gold, when in truth and fact, no such certification process existed. Kramer directed investors to send cash via Western Union and MoneyGram to financial institutions in Tanzania, South Africa, Zambia, and Zimbabwe. Kramer also instructed investors to send cash to Kramer in Switzerland via Western Union, and in Kenya via MoneyGram. As Kramer well knew, the funds provided by investors were not being used to develop an actual gold and diamond export project, and Kramer and his associates never intended to provide any return on the money that they obtained from investors.
To date, at Kramer’s direction, approximately 40 different investors have sent approximately $11 million to bank accounts associated with the export project. No investor has received any return on their investment.
The indictment charges Kramer with eleven counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of commodities fraud, in violation of 18 U.S.C. § 1348. Kramer was arrested on July 6, 2016, and made his initial appearance in federal court in San Jose on July 21, 2016. Kramer is currently detained. Kramer’s next scheduled appearance is on August 22, 2016, before the Honorable Edward J. Davila, U.S. District Court Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of violating 18 U.S.C. § 1343, the defendant faces a maximum sentence of 20 years’ imprisonment for each count, and a fine of $250,000, plus restitution. If convicted of violating 18 U.S.C. § 1348, the defendant faces a maximum sentence of 25 years’ imprisonment, and a fine of $250,000, plus restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Jeff Nedrow is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation by the FBI.
Owner of Long Island Produce Distributor Sentenced to 7 Years for Embezzling over $750,000 from Company Profit Sharing PlanRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that THOMAS HOEY, JR., the owner and president of a Long Island-based produce distributor (the “Company”), and trustee for the Company’s profit sharing plan (the “Plan”), was sentenced to seven years in prison for embezzling nearly all of the assets of the Plan and defrauding the Plan participants. HOEY, over the course of several years, transferred over $750,000 from the Plan to the Company’s corporate accounts and then unlawfully used the money to, among other things: (1) purchase hundreds of thousands of dollars of produce for the Company; and (2) pay for hundreds of thousands of dollars of HOEY’s personal expenses. On March 18, 2016, HOEY was convicted after a four-day jury trial before Judge Paul A. Engelmayer.
U.S. Attorney Preet Bharara said: “Thomas Hoey, Jr., convicted by a unanimous jury of siphoning off his employees’ pension money, was sentenced for that theft. Hoey stole money meant to secure the futures of his employees and instead spent it on indulgences like travel, limousine service, and luxury Manhattan hotels. For that crime of fraud, Hoey will serve time in a federal prison.”
According to the allegations contained in the Indictment as well as the evidence presented during trial:
The Plan was set up as an employee pension benefit plan under the Employee Retirement Income Security Act of 1974 (“ERISA”), for the benefit of certain employees of the Company. As an ERISA qualified pension plan, there were strict statutory and regulatory limitations on the use of money contributed to the Plan. In particular, Plan proceeds could be used only to pay for employee disbursement and employee loans, which in no circumstances could be greater than $50,000. Moreover, the Company, which was the sponsor for the loan, was not allowed to receive any money from the Plan.
Between June 2009 and July 2012, however, the defendant transferred almost all of the assets in the Company’s Plan to corporate accounts that HOEY controlled. Specifically, in three transactions on one day in June 2009, the defendant transferred $350,000 from the Plan to the Company’s corporate bank account. In May 2010, the defendant transferred $415,000 from the Plan to the Company’s corporate bank account. And finally, in July 2012, the defendant transferred $73,000 from the Plan to the Company’s corporate bank account. As a result of these withdrawals from the Plan as well as fees on the account, the Plan, which at one point was worth over $900,000 in employee benefits, was almost entirely depleted.
The Plan money was transferred to corporate accounts to cover significant negative balances as well as for additional corporate expenses and HOEY’s personal expenses. For example, hundreds of thousands of dollars of Plan money was used to pay invoices from the Company’s produce suppliers. Plan money was also used to pay for automobile insurance on a policy that covered, among other vehicles, numerous luxury cars that HOEY used for his personal use. During the period of time that HOEY was using Plan money to fund the Company’s corporate accounts, the corporate accounts were also being used to pay for HOEY’s personal expenses, including international travel for HOEY and his family, limousine service, and hotels in Manhattan.
In order to cover up HOEY’s embezzlement of Plan assets, HOEY caused plan statements to be created that reflected the employees’ full account balances as if no money had been taken out of the Plan. A 2012 account statement for one employee, for example, reflected an individual benefit total of approximately $140,000. At that time, however, the total amount of money left in the Plan was only approximately $15,000.
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In addition to the prison term, HOEY, 48, of Garden City, New York, was ordered to pay $650,936.20 in restitution, $763,000 in forfeiture, and a $400 special assessment.
In imposing sentence, Judge Engelmayer told HOEY, “Your track record here reflects a self-centered history where Thomas Hoey, Jr., came first,” and said HOEY’s conduct was “appalling and utterly without excuse or justification.”
Mr. Bharara praised the outstanding work of the Department of Labor Employee Benefits Security Administration and the Internal Revenue Service’s Criminal Investigation Division.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kristy J. Greenberg and Daniel B. Tehrani are in charge of the prosecution.
Orange County Man Who Admitted He Attempted to Provide Material Support to a Terrorist Organization by Joining ISIL Sentenced to 15 Years in Federal PrisonRead the Press Release
SANTA ANA, California – An Orange County man who admitted that he attempted to provide material support to the Islamic State of Iraq and the Levant (ISIL) and making a false statement in a passport application was sentenced today to 15 years in federal prison.
Adam Dandach, 22, of Orange, was sentenced this morning by United States District Judge James V. Selna. After he completes his 180-month prison term, Dandach will be on supervised release for the remainder of his life.
In sentencing Dandach, Judge Selna said the defendant’s conduct was “serious,” required “significant planning,” and went on for more than a year.
When he pleaded guilty in August 2015, Dandach admitted that, beginning in approximately November 2013 and continuing until July 2, 2014, he attempted to travel to Syria to join ISIL with the purpose of providing material support to the designated foreign terrorist organization. He further admitted that he knew that ISIL was a designated foreign terrorist organization that engaged in terrorist activity and terrorism.
Dandach “read materials on achieving martyrdom through jihadi fighting,” communicated with others affiliated with ISIL in Syria to obtain information about joining the group, and made online posts that celebrated terrorists, prosecutors said in a sentencing memorandum filed with the court.
“Terrorist organizations that reach into our nation via social media and other online recruiting efforts continue to pose a grave threat to our national security,” said United States Attorney Eileen M. Decker. “I commend the excellent work of the Joint Terrorism Task Force in this case, which discovered Dandach’s plan and prevented an American from becoming a fighter for the world's most dangerous terrorist organization.”
“Mr. Dandach was deliberate in his planning to join the ranks of terrorists bent on killing Americans,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This sentence makes it clear that the government will not tolerate support for terrorism by American citizens.”
According to court documents, on July 1, 2014, Dandach purchased a ticket to fly from Orange County to Istanbul. The FBI intercepted Dandach at the John Wayne International Airport the following day. Dandach told FBI special agents that his ultimate destination was Syria and that he intended to pledge allegiance to ISIL’s leader, Abu Bakr al-Baghdadi. He explained that he wished to live under the control of ISIL and intended to undergo weapons training.
Dandach also admitted that he made a false statement in a passport application, namely that he had lost his previous passport. In fact, a family member had taken Dandach’s passport from him in 2013 when he expressed an interest in traveling to Syria.
Dandach “had been planning for over a year to join ISIL, a murderous terrorist organization that he knew committed horrifically violent acts,” according to the government’s sentencing brief. “He possessed videos of their decapitations and pictures of their atrocities on his cellular telephone. Defendant admitted that ISIL committed these atrocities to instill fear in its enemies. He admitted that he intended to pledge allegiance to the leader of ISIL. And, he admitted that he would do whatever ISIL’s leader asked of him.”
The investigation in this case was conducted by the FBI’s Joint Terrorism Task Force in Orange County.
The case was prosecuted by Assistant United States Attorneys Celeste Corlett and Annamartine Salick of the Terrorism and Export Crimes Section.
Oklahoma City Man Pleads Guilty to Drug Possession, Robbery and CarjackingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JEREMY DWAYNE LAVORCHEK, age 28, of Oklahoma City, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE SCHEDULE II CONTROLLED SUBSTANCES, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); ROBBERY INVOLVING CONTROLLED SUBSTANCES, in violation of Title 18, United States Code, Section 2118(a) and CARJACKING, in violation of Title 18, United States Code, Section 2119(1).
The Indictment alleged that on or about December 9, 2015, within the Eastern District of Oklahoma, the defendant, JEREMY DWAYNE LAVORCHEK, did knowingly and intentionally possess with intent to distribute Schedule II controlled substances, to-wit: OxyContin, Oxycodone, Hydrocodone, Morphine, and Fentanyl and did take by force, violence and intimidation, from the person or presence of another, a material or compound containing any quantity of a controlled substance with a replacement cost of not less than $500 belonging to or in the care, custody, control and possession of a person registered with the Drug Enforcement Administration under Section 302 of the Controlled Substances Act. It is further alleged that the defendant took by force, violence, and intimidation, with the intent to cause death or serious bodily harm, a motor vehicle from a person and that vehicle, a 2011 Honda Pilot, had been transported, shipped, and received in interstate and foreign commerce.
The charges arose from an investigation by the Muskogee Police Department.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment on Count 1 is not more than 20 years imprisonment, a fine up to $1,000,000.00 or both; Count 2, not more than 20 years imprisonment, a fine up to $250,000.00 or both and Title 18, United States Code, Section 2119(1) and Count 3, up to 15 years imprisonment, a fine up to $250,000.00 or both.
First Assistant United States Attorney Doug Horn represented the United States.
Oklahoma City Man Pleads Guilty to Drug Possession, Robbery and CarjackingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JEREMY DWAYNE LAVORCHEK, age 28, of Oklahoma City, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE SCHEDULE II CONTROLLED SUBSTANCES, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); ROBBERY INVOLVING CONTROLLED SUBSTANCES, in violation of Title 18, United States Code, Section 2118(a) and CARJACKING, in violation of Title 18, United States Code, Section 2119(1).
The Indictment alleged that on or about December 9, 2015, within the Eastern District of Oklahoma, the defendant, JEREMY DWAYNE LAVORCHEK, did knowingly and intentionally possess with intent to distribute Schedule II controlled substances, to-wit: OxyContin, Oxycodone, Hydrocodone, Morphine, and Fentanyl and did take by force, violence and intimidation, from the person or presence of another, a material or compound containing any quantity of a controlled substance with a replacement cost of not less than $500 belonging to or in the care, custody, control and possession of a person registered with the Drug Enforcement Administration under Section 302 of the Controlled Substances Act. It is further alleged that the defendant took by force, violence, and intimidation, with the intent to cause death or serious bodily harm, a motor vehicle from a person and that vehicle, a 2011 Honda Pilot, had been transported, shipped, and received in interstate and foreign commerce.
The charges arose from an investigation by the Muskogee Police Department.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment on Count 1 is not more than 20 years imprisonment, a fine up to $1,000,000.00 or both; Count 2, not more than 20 years imprisonment, a fine up to $250,000.00 or both and Title 18, United States Code, Section 2119(1) and Count 3, up to 15 years imprisonment, a fine up to $250,000.00 or both.
First Assistant United States Attorney Doug Horn represented the United States.
Oakland Resident Pleads Guilty to Possession of Child PornographyRead the Press Release
OAKLAND – Lawrence Ham pleaded guilty in federal court in Oakland today to possession of child pornography, announced United States Attorney Brian J. Stretch and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin.
In pleading guilty, Ham, 52, of Oakland, admitted that between June 26, 2015, and July 14, 2015, he possessed child pornography images on his computer and in print. He further admitted that the images included depictions of prepubescent children engaged in sexually explicit conduct involving sadistic or masochistic abuse of the victims.
As described in a Complaint filed February 16, 2016, in June of 2015, a computer repairman was working on Ham’s computer and viewed images of children in various states of undress on the computer. The repairman contacted the Concord Police Department and the matter was referred to the Oakland Police Department. On July 14, 2015, the Alameda County Sheriff’s Office and Oakland Police Department executed a search warrant at Ham’s apartment and found computer-based and printed images of child pornography.
On March 31, 2016, Ham was charged by an Information with one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4). Under the plea agreement, Ham pled guilty to the sole count in the Information.
Ham is currently being held in the custody of the United States Marshal.
Ham’s sentencing hearing is scheduled for October 28, 2016, before the Honorable Yvonne Gonzalez Rogers, U.S. District Judge, in Oakland. The statutory penalties for a conviction of 18 U.S.C. § 2252(a)(4) is ten years’ imprisonment and $250,000. A person convicted of § 2252(a)(4) following a prior conviction for possession of child pornography faces a mandatory minimum prison sentence of 10 years; a maximum prison sentence of 20 years; a fine of $250,000; and restitution, if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Denise Marie Barton is prosecuting the case with the assistance of Trina Khadoo. The prosecution is the result of an investigation by ICE HIS.
Newark Man Sentenced to 16 Months in Prison for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on July 25, 2016, Jabbar Hutchins, 21, of Newark, New Jersey, was sentenced to 16 months in federal prison after his guilty plea to charges that he distributed heroin. Chief U.S. District Court Judge Christina Reiss also ordered that Hutchins serve three years of supervised release after his prison term.
According to court records, Hutchins transported significant quantities of heroin from New Jersey to Vermont for re-distribution. On October 14, 2015, after an investigation lasting several months, the Vermont State Police Drug Task Force used a confidential informant to purchase approximately 1500 bags of heroin from Hutchins. Following the drug deal, law enforcement agents arrested Hutchins.
For his crime, Hutchins faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Hutchins receive a prison term between 18 and 24 months. In determining the appropriate sentence, Judge Reiss considered the gravity of Hutchins’ offense, the harm heroin has caused to the Vermont community and Hutchins’ lack of a criminal record.
United States Attorney Eric Miller commended the efforts of the Vermont State Police Drug Task Force and the Burlington Police Department for their coordinated work in this investigation. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. According to United States Attorney Miller, the United States Attorney’s Office and its law enforcement partners will continue to disrupt the flow of heroin into Vermont and hold drug dealers accountable for their serious crimes against the community.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Hutchins is represented by Assistant Federal Public Defender Elizabeth Quinn.
New Jersey Man Indicted for Production and Receipt of Child Pornography and Enticement of A MinorRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton returned an indictment on July 19, charging a 44-year-old Basking Ridge, New Jersey man with production of child pornography, receiving child pornography, and enticement of a minor to engage in illegal sexual activity, all through the use of a computer and cellular telephone.
According to United States Attorney Peter Smith, the Indictment, unsealed July 21, alleges that Hubert Young persuaded and coerced a 13-year-old girl to engage in sexually explicit conduct for the purpose of producing a visual image of such conduct, received images of child pornography from the minor, and enticed, persuaded and coerced the minor to engage in illegal sexual activity between January 2015 and June 2016. The victim is a resident of Luzerne County.
The charges stem from an investigation by the Federal Bureau of Investigation, Luzerne County Detectives, and the Pittston Police Department.
If convicted of the charges, Young faces a mandatory minimum sentence of 15 years in prison and a potential maximum sentence of 30 years in prison for the child pornography production charge, a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison for the enticement of a minor charge, and a mandatory minimum five years in prison and a potential maximum sentence of 20 years in prison for the receiving child pornography charge.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Muskogee Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that TRAVIS DANIEL PHILLIPS, age 36, of Muskogee, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about January 19, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Muskogee Police Department, the Federal Bureau of Investigation and the Eastern District of Oklahoma Violent Crimes Task Force.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment, a fine up to $250,000.00 or both.
Assistant United States Attorney Rob Wallace represented the United States.
Miami-Dade Psychiatrist Sentenced to Prison for His Participation in Various Fraud SchemesRead the Press Release
Fernando Mendez Villamil, a Miami-Dade psychiatrist was sentenced by United States District Judge Frederico A. Moreno to 151 months in prison, to be followed by 3 years of supervised release, for his participation in various schemes to defraud the United States government. Villamil was also ordered to pay $50,697,081 in restitution.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Shimon Richmond, Special Agent in Charge, Health and Human Services, Office of Inspector General (HHS-OIG), Pam Bondi, Florida Attorney General, Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Linda M. Swacina, District Director, U.S. Citizenship and Immigration Services (USCIS), made the announcement.
Villamil, 48, of South Miami, previously pled guilty to conspiracy to commit health care and wire fraud, in violation of Title18, United States Code, 1349, conspiracy to defraud the United States and make false statements with respect to immigration matters, in violation of Title18, United States Code, 371, conspiracy to defraud the government with respect to claims, in violation of Title18, United States Code, 286, for his participation in a scheme to defraud Medicare, Medicaid, the SSA, and USCIS.
According to court documents, Villamil, a licensed psychiatrist with a medical office in Miami-Dade, conspired with Maritza Exposito, 57, and Yomara Vila, 45, both of Miami, and Arnaldo O Jimenez, of Hialeah, and provided false and fraudulent mental health diagnoses to thousands of individuals seeking to obtain disability benefits and waivers from the civic and language requirements of the U.S. citizenship and naturalization process. Villamil did so in exchange for bribes and kickback payments and the ability to submit false claims to Medicare and Medicaid for medication management visits that were not needed and were not provided. Villamil also issued prescriptions for medications that were not needed to support a false disability claim and cause Medicare and Medicaid to pay for the unnecessary medications. Through the fraudulent scheme the co-conspirators sought an excess of $62.8 million dollars from various governmental programs run by the Centers for Medicare and Medicaid Services, the Florida Medicaid program, the SSA and USCIS.
Villamil’s three co-conspirators previously pled guilty and were sentenced for their conduct. Maritza Exposito was sentenced on May 13, 2016 to 48 months in prison, to be followed by 3 years of supervised release and was ordered to pay $33,551,022 in restitution. Yomara Vila was sentenced on May 10, 2016 to 33 months in prison, to be followed by 3 years of supervised release and was ordered to pay $502,626 in restitution. Arnaldo Jimenez, who plead guilty to providing false statements to the Social Security Administration, in his own disability benefit determination process, was sentenced to 6 months in prison, to be followed by 3 years of supervised release and was ordered to pay $248,211 in restitution.
Mr. Ferrer commended the investigative efforts of the Medicare Fraud Strike Force and participating partners, including HHS-OIG, SSA-OIG, the State of Florida’s Medicaid Fraud Control Unit, ICE-HSI, FBI, and USCIS. The case was prosecuted by Special Assistant United States Attorney Hagerenesh Simmons.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
MS-13 Members Indicted for Four Murders, Attempted Murder, Arson, Obstruction of Justice, and Firearms OffensesRead the Press Release
A 23-count indictment was unsealed today in United States District Court for the Eastern District of New York charging defendants Edwin Amaya-Sanchez, also known as “Strong, “William Castellanos, also known as “Dizzy” and “Satanico,” Jhonny Contreras, also known as “Reaper” and “Conejo,” and Reynaldo Lopez-Alvarado, also known as “Mente,” all of whom are all members of La Mara Salvatrucha, also known as the MS-13 (MS-13), with four murders, including the May 26 and 28, 2013 murders of Derrick Mayes and Keenan Russell, the July 14, 2014 murder of Jose Lainez-Murcia, the June 30, 2015 murder of Jonathan Cardona-Hernandez, and an April 9, 2013 attempted murder, as well as related firearms, accessory after the fact, obstruction of justice, and arson offenses.
The charges 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 Timothy D. Sini, Commissioner, Suffolk County Police Department (SCPD).
“The senseless and depraved violence reflected in the devastating loss of life allegedly at the hands of these defendants and their fellow gang members is a trademark of the MS-13. Whether it is random violence exemplified by the murders of Derrick Mayes and Keenan Russell, or the targeted executions of Jose Lainez-Murcia and Jonathan Cardona-Hernandez, the MS-13’s thirst for murder and mayhem is a threat to our communities who are affected by their brutal acts of violence,” stated United States Attorney Capers. “This Office and our law enforcement partners will continue our steadfast resolve to dismantle the MS-13 and keep our communities safe from gang violence.” Mr. Capers expressed his grateful appreciation to all the members of the FBI’s Long Island Gang Task Force.
“The history of MS-13 illustrates in vivid detail the gang simply has no regard for human life. As detailed in this case, these men allegedly killed random people they did not know, and actively targeted others. The FBI’s Long Island Gang Task Force works aggressively each day to track down anyone associated with the gang in the hope that we will stop their next random killing,” stated Assistant Director-in-Charge Rodriguez.
“This prosecution is an enormous victory for Suffolk County residents, and we thank the United States Attorney's Office and the FBI for their continued partnership. With this case, we continue to send the clear message to gang members in Suffolk County that the Suffolk County Police Department, along with our law enforcement partners, will bring you to justice for your heinous and depraved crimes. This is just the beginning of results that our renewed partnership with our federal law enforcement partners will reap for Suffolk County residents,” stated Commissioner Sini.
As detailed in the indictment and the government’s detention letter filed earlier today, Contreras is charged with the murders of Mayes and Russell, who were both killed in Central Islip over Memorial Day weekend in 2013. On May 26, 2013, Contreras and another MS-13 member armed themselves with a .25 caliber handgun and 20-gauge shotgun and drove around Central Islip in a stolen minivan looking for rival gang members to kill. While on Wilson Boulevard, Contreras and his co-conspirator observed Mayes, an African-American man, whom they did not know, but assumed to be a member of the Bloods street gang because he was wearing an article of red clothing. The MS-13 members approached Mayes, shot him multiple times, and killed him. On May 27-28, 2013, Contreras and several other MS-13 members, who were armed with the same .25 caliber handgun and 20-gauge shotgun, as well as a 9mm handgun, again drove around Central Islip in the stolen minivan and other vehicles, looking for rival gang members to kill, and observed several African-Americans, including Russell, outside a house party on Acorn Street. The MS-13 members approached Russell, who they again did not know, but assumed to be a member of the Bloods, opened fire with the weapons, and killed him. When the MS-13 members fled the scene in the minivan, they ran out of gas and called Lopez-Alvarado, who helped them get gas and hide the firearms. Later, the MS-13 members learned that the minivan had been linked to the murders and they agreed to destroy it. Contreras, Lopez-Alvarado and another MS-13 member wiped the minivan down to remove any fingerprints, drove it to a wooded area in Ronkonkoma, doused it with gas, and set it on fire. Shortly after participating in the Mayes and Russell murders, Contreras, who had been an MS-13 associate, was inducted as a member of the MS-13.
Amaya-Sanchez is indicted in connection with the July 14, 2014 murder of Lainez-Murcia, who was shot and killed while sitting in a car outside of his home on Twin Lawns Avenue in Brentwood. Amaya-Sanchez orchestrated the murder because he believed that Lainez-Murcia was an assassin who had killed MS-13 members in El Salvador. Amaya-Sanchez, who worked with Lainez-Murcia and knew where he lived, drove other MS-13 members, who were armed with two 9mm handguns, to Lainez-Murcia’s house and dropped them off. When Lainez-Murcia left the house and got into his car, the other MS-13 members approached and fired multiple times, killing Lainez-Murcia. The other MS-13 members ran down the block where Amaya-Sanchez picked them up and drove them away.
Further, the indictment charges Castellanos in connection with the June 30, 2015, murder of 16 year-old Cardona-Hernandez, whom the MS-13 members believed was associated with a rival gang. On the night of the murder, Castellanos and other MS-13 members drove Cardona-Hernandez to Nicoll Avenue in Central Islip, where they shot and killed him using two 9mm handguns.
Finally, Lopez-Alvarado is charged with an April 9, 2013 attempted murder of a man on Benton Place in Bay Shore. Lopez-Alvarado, who was a new member of the MS-13, and another MS-13 member went out looking to kill a rival gang member in order for Lopez-Alvarado to gain full status in the gang. When they observed a group of men who they assumed were members of the Bloods, Lopez-Alvarado and his co-conspirator retrieved the same .25 caliber handgun and 20-gauge shotgun used in the Mayes and Russell murders, drove back to Benton Place, approached the group of men and opened fire. One man was struck and was subsequently transported to a local hospital, where he was treated and survived the shooting.
This is the latest indictment in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 30 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, and Rockville Centre Police Department.
The defendants are scheduled to be arraigned this afternoon before United States District Judge Joseph F. Bianco at the federal courthouse in Central Islip. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Section. Assistant United States Attorneys John J. Durham, Paul G. Scotti, and Raymond A. Tierney are in charge of the prosecution.
The Defendants:
Edwin Amaya-Sanchez (“Strong”)
Age: 29
Brentwood, New YorkWilliam Castellanos (“Dizzy” and “Satanico”)
Age: 19
Central Islip, New YorkJhonny Contreras (“Reaper”)
Age: 22
Brentwood, New YorkReynaldo Lopez-Alvarado (“Mente”)
Age: 24
Brentwood, New YorkE.D.N.Y. Docket No. 16-403 (JMA/JFB)
Long Beach Lobbyist Pleads Guilty to Federal Tax Charge and Admits Failing to Report Income Received from Illegal Marijuana StoresRead the Press Release
Update:
Today, Long Beach-based lobbyist Carl A. Kemp pleaded guilty to subscribing to a false tax return for the year 2012. Kemp entered the plea before United States District Judge Philip S. Gutierrez.
Kemp is scheduled to be sentenced on November 7, at which time he will face a statutory maximum sentence of three years in federal prison.
Original News Release (June 8):
Long Beach Lobbyist Agrees to Plead Guilty to Federal Tax Offense for Failing to Report Income Received from Illegal Marijuana Stores
LOS ANGELES – A Long Beach-based lobbyist, whose clients included illegal marijuana stores in Long Beach, has been charged with filing a false tax return and failing to report more than three-quarters of a million dollars in income over a six-year period.
Carl A. Kemp, 43, of Long Beach, the owner of the public relations firm The Kemp Group, was charged yesterday with subscribing to a false tax return for the year 2012.
“For years, Mr. Kemp failed to accurately report his income to the IRS, going so far as reporting zero taxable income for 2012 when his business brought in more than $200,000,” said United States Attorney Eileen M. Decker. “Everyone, no matter what business they are engaged in, has a responsibility to fully report their income on their income tax returns.”
In a plea agreement also filed yesterday, Kemp agreed to plead guilty to the tax offense. As part of the plea agreement, Kemp admits receiving a total of $754,783 in income that he failed to report on his taxes for the years 2007 through 2012. Kemp admits that he owes the Internal Revenue Service a total of $210,661 to cover the back taxes due for those six years, as well as a civil fraud penalty.
“As admitted by Kemp in documents filed with the court today, all forms of income are taxable, including cash payments received from illegal marijuana dispensaries and fees paid for lobbying services,” stated IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don’t.”
The charge of subscribing to a false tax return carries a statutory maximum penalty of three years in federal prison.
Kemp will be directed by the court to appear for an arraignment in this case, likely later this month.
The case against Kemp was investigated by IRS Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Ruth C. Pinkel of the Public Corruption and Civil Rights Section.
Local Doctor Arrested for Illegally Dispensing Controlled Substances and Threatening to Kill Law EnforcementRead the Press Release
U.S. Attorney Kenneth A. Polite announced the unsealing of a criminal complaint against SHANNON CHRISTOPHER CEASAR, age 43, a physician who practices in Metairie and resides in New Orleans. On Friday, July 22, 2016, CEASAR was arrested on charges of drug distribution and threatening to murder law enforcement agents. According to court records, CEASAR illegally dispensed and conspired with others to illegally dispense controlled substances, including Oxycodone, a Schedule II controlled substance. In addition, based on recorded telephone calls secured by law enforcement, CEASAR was charged with threatening to assault and/or murder federal law enforcement officers with the intent to impede, intimidate, or interfere with such law enforcement officers while engaged in the performance of official duties, or with the intent to retaliate against such law enforcement on account of the performance of official duties.
Some of the threats made against law enforcement officers and the medical board include:
“God help them, I swear to god…I have a f*$&ing arsenal in there enough to supply a small militia, you know I collect guns, I swear to god if they come in there with a warrant I’m going to kill every single one of those sons of bitches.”
“I am very serious…they won’t even be able to have an open casket funeral. There will be nothing left above the adam’s apple.”
“And I’m not sure if the time comes if I’m going to do it right there in the clinic or if I’m going to somehow break into the DEA office in that building by the lake and just f*$&ing blow the place up but somehow a vast majority of the DEA agents in this area will lose their lives if they f*$& with me.”
“Same thing goes for the medical board, that’ll be even sweeter…they are downtown.”
“…New Orleans will be all over the national news again because of me.”
“What I’ll do is make Baton Rouge look like a f*$&ing kindergarten.”
CEASAR made his initial appearance before U.S. Magistrate Court Judge Daniel E. Knowles, III on Friday, July 22. At a detention hearing held today before U.S. Magistrate Court Judge Karen Wells Roby, CEASAR was ordered detained.
“As alleged, rather than doing no harm as a physician, Shannon Ceasar illegally dispensed Oxycodone into a community struggling with an epidemic of opioid addiction,” stated U.S. Attorney Polite. “Then, when the governing medical board and law enforcement dared to challenge his criminality, Ceasar threatened to kill them. This level of disregard for human life, particularly from a physician, is absolutely despicable.”
If convicted of the charges in the criminal complaint, CEASAR will face a maximum of not more than 20 years in prison on the drug charges, pursuant to Title 21, United States Code, Section 841(a)(1) and 846, and not more than 10 years in prison for threatening to murder a federal agent, pursuant to Title 18, United States Code, Section 115(a)(1)(B). CEASAR will also be subject to a fine of not more than $250,000 and a term of supervised release for three years, following any term of imprisonment.
U.S. Attorney Polite praised the work of the Special Agents of the Federal Bureau of Investigations, Drug Enforcement Administration, and U.S. Department of Health and Human Services OIG in investigating this matter. Assistant United States Attorneys Shirin Hakimzadeh and Myles Ranier are in charge of the prosecution.
LATAM Airlines Group Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $12.75 Million Criminal PenaltyRead the Press Release
LATAM Airlines Group S.A. (LATAM), a commercial airline company based in Chile, has agreed to pay a $12.75 million criminal penalty in connection with a scheme to pay bribes to Argentine union officials via a false consulting contract with a third-party intermediary in violation of the accounting provisions of the Foreign Corrupt Practices Act (FCPA).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
According to admissions made in the resolution documents, executives at LATAM’s predecessor-in-interest, LAN Airlines S.A. (LAN), executed a fictitious $1.15 million consulting agreement with an advisor to the Secretary of Argentina’s Ministry of Transportation in October 2006. Although the agreement purportedly required the consultant to undertake a study of Argentine airline routes, the consultant never provided any such services. Instead, the purported consultant funneled the monies he received pursuant to the contract to Argentine labor union officials in exchange for the union agreeing to accept lower wages and to not enforce what would have been a costly labor rule. In total, LAN profited by more than $6.7 million as a result of the bribes paid to the union officials.
LATAM entered into a three-year deferred prosecution agreement (DPA) to resolve the case. As part of the DPA, LATAM agreed to pay a $12.75 million criminal penalty, continue to cooperate with the department’s investigation, enhance its compliance program and retain an independent corporate compliance monitor for a term of at least 27 months. The department reached this resolution based on a number of factors, including the fact that LATAM did not voluntarily disclose the FCPA violations, but did cooperate with the department’s investigation after the press in Argentina uncovered and reported the conduct approximately four years after it had occurred. After LATAM began cooperating, it did so fully and provided all relevant facts known to it, including about individuals involved in the misconduct. LATAM did not, however, remediate adequately. LATAM failed to discipline in any way the employees responsible for the criminal conduct, including at least one high-level company executive, and thus the ability of the compliance program to be effective in practice is compromised. As a result, the company paid a penalty within the U.S. Sentencing Guidelines range instead of receiving a discount off the bottom of the range.
In a related matter, LATAM reached a settlement today with the U.S. Securities and Exchange Commission (SEC) under which it agreed to pay $6.74 million in disgorgement and $2.7 million in prejudgment interest. Thus, the approximately $22.2 million in combined penalty, disgorgement and prejudgment interest far exceeds the $6.7 million in savings the company had received from its improper payments.
The FBI’s Miami Field Office investigated the case. Senior Trial Attorney Jason Linder of the Criminal Division’s Fraud Section prosecuted the case. The SEC also provided assistance during the investigation.
Justice Department Settles with Colorado Apartment Complex for Discriminating Against Families with ChildrenRead the Press Release
The Justice Department announced today that the owners and manager of the Westland Apartments, a 28-unit apartment complex in Lakewood, Colorado, have agreed to pay $75,000 to settle a lawsuit alleging discrimination against families with children in violation of the Fair Housing Act. The settlement must still be approved by the U.S. District Court of the District of Colorado.
The department’s lawsuit, which was handled jointly by the department’s Civil Rights Division and the U.S. Attorney’s Office of the District of Colorado, was filed on Nov. 9, 2015. The lawsuit alleges that Roger and Eileen Loecher, the owners of the Westland Apartments, and Miriam Yehudah, the resident property manager, implemented a policy of generally excluding families with children from living in the front building at Westland and generally restricting them to apartments in the rear building.
The lawsuit arose from a complaint filed with the U.S. Department of Housing and Urban Development (HUD) by the Denver Metro Fair Housing Center (DMFHC), a non-profit organization that works to promote equal housing opportunities in the Denver metropolitan area. DMFHC sent testers posing as prospective renters to Westland to determine whether they were engaging in discriminatory practices in violation of the Fair Housing Act. As alleged in the complaint, DMFHC’s testing revealed that Westland’s property manager told prospective renters that families with children were generally placed in apartments in the rear building and did not offer prospective renters with children the opportunity to consider available apartments in the front building. DMFHC also filed a lawsuit against the defendants on Dec. 22, 2015. The cases were consolidated on March 3, 2016.
“Steering families with children to a certain part of an apartment complex limits their housing choices, perpetuates housing segregation and clearly violates federal law,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue its vigorous enforcement of the Fair Housing Act to ensure equal access to housing for all families.”
“The U.S. Attorney’s Office is committed to enforcing federal civil rights laws in Colorado,” said U.S. Attorney John F. Walsh of the District of Colorado. “Discrimination against families with children hurts Colorado children and is not only unjustified, it is illegal.”
Under the terms of the proposed settlement, the defendants must pay $25,000 to establish a settlement fund to compensate victims who were harmed by their conduct, $45,000 in monetary damages to DFMHC and $5,000 to the United States as a civil penalty. In addition, the proposed settlement prohibits the defendants from engaging in discrimination against families with children in the future. It also requires that they implement a nondiscrimination policy, establish new nondiscriminatory application and rental procedures, receive training on the Fair Housing Act and conduct monitoring and reporting to the department for three years.
Individuals who believe they may have been discriminated against at Westland because they resided with or intended to reside with children should contact the department toll-free at 1-800-896-7743, mailbox 92, or e-mail [email protected]. Westland is located at 9905 West 21st Avenue in Lakewood.
The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe that they have experienced unlawful housing discrimination elsewhere can contact the department at 1-800-896-7743, e-mail [email protected] or contact HUD at 1-800-669-9777.
Loecher Consent Order
Jefferson County Man Sentenced to 50 Years for Sexual Exploitation of a ChildRead the Press Release
SYRACUSE, NEW YORK – Brok Chase, age 29, of Fort Drum, New York, was sentenced today to serve a total of 50 years in prison as a result of his guilty plea to four counts of sexually exploiting a young child for the purpose of producing images of the abuse.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
United States District Judge Brenda K. Sannes also sentenced Chase to lifetime supervised release, to begin after his release from prison. Chase would also be required to register as a sex offender upon his release from prison.
As part of his March 2016 guilty plea, Chase admitted that he sexually abused a child in Jefferson County beginning in 2014, when the child was 6 years old, and into 2015. Chase also admitted that he began exploiting the child even earlier, before moving to New York. Chase’s abuse of the child, and his visual depictions of the abuse, were discovered following the FBI’s execution of a search warrant at his Jefferson County home in September 2015. The search warrant was authorized based on evidence gathered by the FBI in Louisville, Kentucky, indicating that Chase had been trading child pornography on the Internet. Following execution of the search warrant, forensic analysis of Chase’s electronic devices found that, in addition to the images of his abuse of the child in Jefferson County, Chase possessed more than 9,000 images and 98 video files containing child pornography that he obtained from others through the Internet.
Chase was investigated by the Federal Bureau of Investigation Syracuse Resident Agency, Albany Division, and the FBI’s Louisville, Kentucky Child Exploitation Task Force, with assistance from the U.S. Army Criminal Investigations Command and New York State Police. He was prosecuted by Assistant United States Attorney Lisa Fletcher.
The joint effort is a part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.