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Friday 15 July 2016
Little Eagle Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Little Eagle, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, or Dating Partner was sentenced on July 11, 2016, by U.S. District Judge Charles B. Kornmann.
Patrick Demarrias, age 31, was sentenced to 14 months in custody, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Demarrias was indicted by a federal grand jury on March 10, 2015. He pled guilty on April 14, 2016.
The conviction stemmed from an incident on February 4, 2015, when Demarrias came home intoxicated, following an evening of drinking with his ex-girlfriend. The victim became angry that Demarrias was out drinking with another woman, while the couple’s child was in need of diapers and formula. Demarrias and the victim began to argue, which escalated into Demarrias physically assaulting her, in the presence of the couple’s young child. As a result of the assault, the victim sustained multiple cuts, bruises, scrapes, and abrasions.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Demarrias was immediately turned over to the custody of the U.S. Marshals Service.
Liberian Ship Management Company, Corporate Vessel Owner, and Three Engineering Officers Indicted for Environmental Crimes and ConspiracyRead the Press Release
A federal grand jury in Charleston, South Carolina, returned an indictment today charging Aegean Shipping Management S.A. and Aegeansun Gamma Inc. with obstruction of an agency proceeding, conspiracy and failing to keep accurate pollution control records, the Justice Department announced. Three engineering officers were charged with related offenses.
The charges stem from the 2015 falsification of records and obstruction designed to cover up overboard discharges of oily mixtures and machinery space bilge water from the Liberian-flagged chemical tanker, T/V Green Sky. The vessel’s management company, Aegean Shipping Management of Liberia and the vessel’s owner, Aegeansun Gamma of the Republic of the Marshall Islands, are charged with failing to maintain an accurate oil record book as required by the Act to Prevent Pollution from Ships (APPS), a U.S. law which implements the International Convention for the Prevention of Pollution from Ships, commonly known as “MARPOL.” The companies were also charged with falsification of records, obstruction and conspiracy.
The individuals, Panagiotis Koutoukakis and Herbert Julian, both former Chief Engineers of the T/V Green Sky and Nikolaos Bounovas, the former Second Engineer onboard the vessel, were charged with aiding and abetting the failure to maintain an accurate oil record book, falsification of federal records and conspiracy. Julian is facing an additional obstruction charge.
The investigation into illegal activity onboard the vessel began in late August 2015 when the vessel arrived in the Port of North Charleston, South Carolina and members of the engine room staff told the U.S. Coast Guard that they had been ordered to bypass the ship’s oil water separator on multiple occasions. In a related case, on Feb. 18, the former captain of the T/V Green Sky, Genaro Anciano, pleaded guilty to one count of obstruction for knowingly making false and misleading oral and written statements in an effort to impede the Coast Guard’s investigation of the bypass allegations.
The defendants are scheduled to be arraigned in Charleston on July 26. An indictment is merely an accusation and defendants are presumed innocent unless and until proven guilty in a court of law.
The case was investigated by agents of the Coast Guard Investigative Service. The case is being prosecuted by Christopher Hale of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Matt Austin of the U.S. Attorney’s Office for the District of South Carolina.
Liberian Ship Management Company, Corporate Vessel Owner, and Three Engineering Officers Indicted for Environmental Crimes and ConspiracyRead the Press Release
Contact: Office of Public Affairs (202) 514-2007
Note: The indictment is attached as a pdf file.
WASHINGTON - A federal grand jury in Charleston, South Carolina, returned an indictment today charging Aegean Shipping Management S.A. and Aegeansun Gamma Inc. with obstruction of an agency proceeding, conspiracy and failing to keep accurate pollution control records, the Justice Department announced. Three engineering officers were charged with related offenses.
The charges stem from the 2015 falsification of records and obstruction designed to cover up overboard discharges of oily mixtures and machinery space bilge water from the Liberian-flagged chemical tanker, T/V Green Sky. The vessel’s management company, Aegean Shipping Management of Liberia and the vessel’s owner, Aegeansun Gamma of the Republic of the Marshall Islands, are charged with failing to maintain an accurate oil record book as required by the Act to Prevent Pollution from Ships (APPS), a U.S. law which implements the International Convention for the Prevention of Pollution from Ships, commonly known as “MARPOL.” The companies were also charged with falsification of records, obstruction and conspiracy.
The individuals, Panagiotis Koutoukakis and Herbert Julian, both former Chief Engineers of the T/V Green Sky and Nikolaos Bounovas, the former Second Engineer onboard the vessel, were charged with aiding and abetting the failure to maintain an accurate oil record book, falsification of federal records and conspiracy. Julian is facing an additional obstruction charge.
The investigation into illegal activity onboard the vessel began in late August 2015 when the vessel arrived in the Port of North Charleston, South Carolina and members of the engine room staff told the U.S. Coast Guard that they had been ordered to bypass the ship’s oil water separator on multiple occasions. In a related case, on Feb. 18, the former captain of the T/V Green Sky, Genaro Anciano, pleaded guilty to one count of obstruction for knowingly making false and misleading oral and written statements in an effort to impede the Coast Guard’s investigation of the bypass allegations.
The defendants are scheduled to be arraigned in Charleston on July 26. An indictment is merely an accusation and defendants are presumed innocent unless and until proven guilty in a court of law.
The case was investigated by agents of the Coast Guard Investigative Service. The case is being prosecuted by Christopher Hale of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Matt Austin of the U.S. Attorney’s Office for the District of South Carolina.
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Letcher Man Convicted of Unlawful Taking of a Bald Eagle and Unlawful Use of PesticideRead the Press Release
United States Attorney Randolph J. Seiler announced that Theodore Nelson, Jr., a/k/a Ted Nelson, age 69, of Letcher, South Dakota, was found guilty of Unlawful Taking of Bald Eagle and Unlawful Use of Pesticide as a result of a federal jury trial in Sioux Falls, South Dakota.
The charges carry a maximum penalty of 13 months in custody and/or a $26,000 fine, one year of supervised release, restitution, and a $30 special assessment to the Federal Crime Victims Fund.
Nelson was indicted by a federal grand jury on September 9, 2015.
Nelson is a landowner in Sanborn County. The convictions stemmed from incidents between approximately January 1, 2015, and May 12, 2015, when Nelson, without being permitted to do so, knowingly and with wanton disregard for the consequences of his actions, injected a poison, Carbofuran, also known as Furadan 4F, into the carcasses of cows in order to kill predators, including coyotes. Carbofuran is a restricted use pesticide that is extremely toxic to wildlife, including birds. Use of this pesticide for baiting purposes is strictly prohibited, and the container is labeled accordingly.
As a result of Nelson’s actions, area animals, including coyotes and an adult Bald eagle, died of Carbofuran poisoning. Laboratory results from the National Fish & Wildlife Forensic Laboratory in Ashland, Oregon, confirmed that the eagle died of Carbofuran poisoning, after eating coyote carcasses with poisoning in its system.
“The verdict in this case signifies the public’s interest in ensuring laws are enforced that protect our natural resources,” said Assistant U.S. Attorney Meghan Dilges. “This case is a stark reminder that the illegal use of pesticides that ultimately kills protected wildlife is a crime that we take very seriously in the U.S. Attorney’s office. The wildlife and environmental laws on the books are not just collecting dust. We are prosecuting offenders to the full extent of the law.”
Jeffrey Martinez, Special Agent in Charge of the Environment Protection Agency’s criminal enforcement program in South Dakota, issued the following statement on July 12, 2016: “The defendant’s actions caused the taking of a Bald eagle and several other species. Product labels are designed to ensure the safe use and application of pesticides. Using pesticides for purposes other than their registered use is illegal and puts people, animals and the environment at risk of exposure. Today’s action shows that individuals who misuse these products and kill protected wildlife will be prosecuted.”
This case was investigated by the U.S. Fish & Wildlife Service, the Environmental Protection Agency, and the South Dakota Department of Game, Fish and Parks. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Nelson is in custody with the U.S. Marshals Service. A sentencing date has not been set.
Lexington Man Sentenced to 40 Years for Child Exploitation OffensesRead the Press Release
LEXINGTON, Ky. – A Lexington man has been sentenced to 40 years in federal prison, for possessing and distributing child pornography.
On Thursday, Chief U.S. District Judge Karen Caldwell formally sentenced 64 year-old Kevin Labona for his offenses. Labona, who has a criminal history of illegal sexual contact with minors that dates back to 1986, received an enhanced sentence. Under Federal law, he must serve at least 85 percent of his sentence.
Labona was convicted in a bench trial, on March 2, 2016. At trial, the evidence established that, beginning in 2013, Labona distributed images of child pornography that were violent, sadistic, and masochistic in nature. The evidence further established that he distributed images, by showing them on his phone to four minors, as a way to entice minors into having sexual contact with him. Labona sexually exploited more than one of these minors in 2014.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky; Howard S. Marshall, Special Agent in Charge, FBI (Louisville Division); Angela L. Byers, Special Agent in Charge, FBI (Cincinnati Division); and Andrew J. Smith, Sheriff, Logan County, Ohio, jointly announced the sentence.
The investigation was conducted by the FBI and the Logan County, Ohio Sheriff’s Office. Assistant U.S. Attorneys David Marye and Neeraj Gupta prosecuted the case on behalf of the federal government.
Kentucky Man Charged with Robbing Shawneetown BankRead the Press Release
Marcus Howard Householder, 32, of Reed, Kentucky, has been charged in United States District Court in Benton with robbing the Grand Rivers Community Bank in Shawneetown, Illinois, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. A Federal Grand Jury returned an indictment earlier this week charging Householder with committing the June 14th robbery during which $6,349 was taken.
Householder appeared for arraignment on the charge this morning at the United States District Courthouse in Benton. He was ordered held without bond and remanded to the custody of the United States Marshal pending further proceedings. Householder is next scheduled to be in court on August 24th at 9:30 a.m. for a final pretrial conference.
Investigation into the robbery was conducted by the Carmi office of the Illinois State Police Zone 7 Investigations Unit with the assistance of the Gallatin County Sheriff’s Department, the Shawneetown Police Department, the Kentucky State Police, the Webster County (Kentucky) Sheriff’s Department, the Union County (Kentucky) Sheriff’s Department, and the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Note: An Indictment is simply a formal charge brought against a defendant. A defendant is presumed innocent of the charge until proven guilty beyond a reasonable doubt.
Jury Finds Rosebud Man Guilty of Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that Adam Bordeaux, age 32, of Rosebud, South Dakota, was found guilty of Domestic Assault by an Habitual Offender and Simple Assault following a two-day jury trial in Pierre, South Dakota. The verdict was returned on July 13, 2016.
The charges carry a maximum sentence of up to five years in prison, a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Bordeaux was indicted by a federal grand jury on December 8, 2015. The charges stem from an incident that occurred on November 17, 2015, wherein Bordeaux assaulted his girlfriend at their home in Rosebud. Bordeaux and the victim got into an argument in their bedroom and Bordeaux pushed the victim onto the bed. He then got on top of her, pulled her hair, pushed her face into the blanket, and tried to bite her on the back of her head. The victim was eventually able to push Bordeaux off of her and she fled the house. She called the police from a nearby convenience store.
Bordeaux was subsequently questioned by a Rosebud Sioux Tribe Law Enforcement Officer and he claimed the victim attacked him and bit him on the forearm while he was defending himself. The bite mark he showed the officer was inconsistent with Bordeaux’s description of the incident, however, and Bordeaux was arrested.
The crime of Domestic Assault by an Habitual Offender requires proof that the Defendant had at least two prior convictions for domestic assault. At the time of this incident, Bordeaux had three prior convictions in Rosebud Sioux Tribal Court for Domestic Abuse. He also had a prior conviction in federal court for Domestic Assault by an Habitual Offender, and was on federal supervised release when he committed the assault on November 17, 2015.
Bordeaux was acquitted of other assault charges, including charges that stemmed from an incident that occurred in January 2015 involving the same victim.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for September 26, 2016.
Bordeaux was remanded to the custody of the U.S. Marshals Service pending sentencing.
Jury Convicts Portsmouth Man of Child Pornography CrimesRead the Press Release
NORFOLK, Va. – Ronald Miltier, 54, of Portsmouth, was convicted late yesterday by a federal jury on charges related to child pornography.
According to court records and evidence presented at trial, Miltier was discovered by an undercover FBI agent to have been downloading and possessing files containing child pornography through a peer-to-peer software program. Miltier routinely deleted such files, so there were only 11 movie files found during the agent’s search of Miltier’s laptop computer and hard drive. Forensic analysis revealed, however, that Miltier routinely searched for child pornography and downloaded hundreds, if not thousands, of files with names associated with child pornography.
Miltier faces a maximum penalty of 20 years in prison on each count of conviction when sentenced on October 18. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the verdict was accepted by U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Joseph L. Kosky prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-151.
Jamaican Native Sentenced for Attack on Federal OfficerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Seymour Ellis, 43, most recently of Queens, N.Y., who was convicted after plea of Assault of a Federal Officer, was sentenced to imprisonment of 68 months by United States District Judge Frank P. Geraci, Jr.
Special Assistant United States Attorney Brian J. Counihan, who handled the case, statedthat in April of 2015, the defendant was in immigration custody at the BuffaloFederal Detention Facility in Batavia, N.Y. The defendant was awaiting removal from the United States to Jamaica after having been stripped of his lawful permanent resident status and ordered removed by an immigration judge. The immigration judge ordered the defendant removed from the United States because of the defendant’s New York State narcotics trafficking, robbery, and theft convictions. While in the detention facility, the defendant attacked and assaulted a detention officer using a radio and his fists and causing bodily injury.
The sentencing is the result of an investigation by Officers of the Enforcement and Removal Operations of U.S. Immigration and Customs Enforcement under the direction of Field Office Director Michael Phillips.Jacksonville Man Pleads Guilty to Enticement of A Minor to Engage in Sexual ActivityRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Gernain Jackson (33, Duval County) has pleaded guilty to enticement of a minor to engage in sexual activity. He faces a mandatory minimum sentence of 10 years, up to life, in federal prison. The sentencing hearing is scheduled for September 28, 2016, before United States District Judge Paul G. Byron.
According to court records, from August 2015 to September 2015, Jackson engaged a 13-year-old boy from Orlando in chats over Facebook, KIK messenger, Skype, and the telephone, through which Jackson enticed the minor to produce child pornography. Through the online contact, Jackson enticed the minor to send him sexually explicit images. On or about September 6th and 13th, 2015, Jackson met the minor in person while attending church functions in Jacksonville. During that time, Jackson met the minor in the bathroom several times throughout the day and fondled him.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.justice.gov/psc.
Jacksonville Man Arrested and Charged with Receiving and Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that William Marion Patterson, III (47, Jacksonville) has been charged with receiving child pornography over the Internet and possessing it on his computer media. If convicted of any one of the three receipt counts, he faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison, and a life term of supervised release. If convicted of either of the two possession charges, he faces up to 10 years’ imprisonment, and a potential life term of supervision. Patterson was arrested on July 15, 2016. His arraignment and detention hearing is scheduled for July 19, 2016, at 2:30 p.m.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Naval Criminal Investigative Service, the Jacksonville Sheriff’s Office, the Columbia County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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 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.justice.gov/psc.
Independent Producer Charged with Stealing Money Generated by Feature Film that Should Have Gone to Partner CompanyRead the Press Release
LOS ANGELES – An independent film producer has been charged with interstate transportation of stolen property related to the theft of nearly $1.5 million that should have gone to his partner in a film production deal.
Julio Caro, 56, of Calabasas, was charged on Tuesday with moving money to New Jersey that had been stolen from an investment company called Yucaipa Corporate Initiatives Fund I, LP.
When he was charged, prosecutors also filed a plea agreement in which Caro agreed to plead guilty to the felony offense and admitted that he stole a total of $1,487,529 from Yucaipa over five years.
“This defendant exploited his position of trust by stealing money from a business he had been partners with for years,” said United States Attorney Eileen M. Decker. “Mr. Caro then engaged in another crime by moving the pilfered money across the country.”
Caro has agreed to surrender to federal authorities and make his first appearance in United States District Court on July 27.
Caro, through his company, Broken Rose Productions, Inc. entered into a limited liability agreement with Yucaipa in early 2005. The resulting LLC, which was called R-Caro Productions, LLC produced two films, including “Homie Spumoni,” which was distributed by Warner Brothers Entertainment. When Warner Brothers sent distribution proceeds to R-Caro, the money should have gone to Yucaipa, which had provided much of the financing for the film. Instead, “Caro stole these funds and used these funds to pay for his personal expenses, including, but not limited to, his mortgage and car lease payments,” according to the plea agreement.
“Mr. Caro violated both the law and his partner’s trust when he embezzled royalty payments and transferred the stolen funds to the East Coast,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This case should serve as a warning to those who evade detection by crossing state lines.”
The charge of interstate transportation of stolen property carries a statutory maximum penalty of 10 years in federal prison.
The case against Caro was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Poonam G. Kumar of the Major Frauds Section.
Independence Man Charged with Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was charged in federal court today with illegally possessing a firearm after a witness called the police to report him burglarizing a neighbor’s home using a stolen car.
Randy R. Smith, 33, of Independence, was charged with being a felon in possession of a firearm in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo.
According to an affidavit filed in support of today’s criminal complaint, an Independence resident called police at approximately 12:16 p.m. Thursday, July 14, 2016, to report a burglary in progress in the 1100 block of South Claremont. The witness reported that two men arrived at a neighbor’s residence in a red Honda Fit, which had been previously reported as stolen by a subject armed with a firearm. The witness reported that the two men moved from the vehicle to the read of the neighbor’s residence, then returned to the vehicle, carrying items from the residence to the vehicle.
The suspects left before officers arrived at the residence, but within a few minutes, an officer located the Honda Fit in the parking lot of Sunfresh Grocery, 18001 E. US 24 Hwy., Independence. Smith, who was driving the vehicle, was arrested. According to the affidavit, Smith was in possession of a loaded Omega .32-caliber revolver, which he was carrying in a shoulder holster. The trigger guard of the firearm was missing and appeared to have been cut off or removed by unknown means. The firearm had been painted purple and yellow, the affidavit says, in such a manner as if to disguise the weapon as a toy. Officers also found a variety of ammunition in the vehicle.
A passenger in the vehicle was also arrested but was not charged in federal court.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Smith has prior felony convictions for burglary, receiving stolen property, forgery and being a felon in possession of a firearm.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Adam Caine. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Housekeeper Pleads Guilty to Stealing $550,000 from Elderly EmployerRead the Press Release
NEWPORT NEWS, Va. – Dana Morris, 42, of Williamsburg, pleaded guilty yesterday to charges of engaging in a monetary transaction involving proceeds of unlawful activity and tax evasion.
In a statement of facts filed with the plea agreement, Morris acknowledged stealing $558,595.26 from her former employer, an elderly resident of Williamsburg. Through her work as a housekeeper and a personal assistant, Morris gained access to the victim’s home and personal effects. Between 2012 and 2014, Morris altered and completely forged 117 checks drawn on her employer’s personal checking account. Morris deposited all of these checks into her personal checking account and spent all of the stolen money on, among other things, over $445,000 in retail and entertainment items. In March 2014, Morris and another individual used $27,000 of the stolen money to purchase a new car. Morris falsely stated her income on her 2012 tax return, failing to report the majority of the stolen money. Morris evaded the assessment of personal income tax in 2013 and 2014 by failing to file tax returns and filing extensions in which she falsely stated she would owe no tax for each year.
Morris was indicted by a federal grand jury on January 11, and faces a maximum penalty of 10 years in prison when sentenced on November 10. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The parties agreed, subject to the approval of the District Court Judge, that her sentence will not exceed 37 months.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after the plea was accepted by U.S. Magistrate Judge Lawrence R. Leonard. Assistant U.S. Attorneys Howard J. Zlotnick and Kaitlin C. Gratton are prosecuting the case. This case was adopted for prosecution through the United States Postal Inspection Service’s Financial Crimes Task Force.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16cr4.
Heroin Dealer Convicted by Jury of Sex Trafficking and Drug-Related OffensesRead the Press Release
Defendant Sold Heroin and Used Violence, Threats and Coercion to Compel Three Young Heroin-Addicted Women to Prostitute for His Profit in Wisconsin and Minnesota
Monta Groce, 30, of Sparta, Wisconsin, was convicted by a federal jury of three counts of sex trafficking by force, threats of force or coercion; one count of conspiracy to engage in interstate transportation for prostitution; one count of interstate transportation for prostitution; one count of maintaining a property for drug trafficking; one count of using a firearm in furtherance of drug trafficking and one count of witness retaliation. The verdict was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; U.S. Attorney John W. Vaudreuil of the Western District of Wisconsin and FBI Special Agent in Charge Robert J. Shields of the FBI’s Milwaukee Division.
After deliberating for 10 hours, the jury found the defendant guilty on all counts, with the exception of one count of attempted sex trafficking. Sentencing is scheduled for Oct. 19, 2016. The defendant faces a minimum sentence of 20 years in prison and a maximum sentence of life in prison.
“Groce supported the heroin epidemic impacting our country and exploited vulnerable young women by forcing them to engage in prostitution,” said Principal Deputy Assistant Attorney General Gupta. “I commend the trial team, investigators and victim advocates for their incredible work in this case. The Civil Rights Division will continue our vigorous efforts to work with our federal and state partners to hold human traffickers accountable and vindicate the rights of victims.”
“These cases are about horrible violence against women – Groce violently forced vulnerable victims into commercial sex,” said U.S. Attorney Vaudreuil. “The Department of Justice will not tolerate the exploitation of sex-trafficked women and children and we will continue to bring traffickers to justice on their behalf. These crimes, which took place in a small city, demonstrate that sex trafficking is not just a big city issue; it is happening in rural America too.”
“Human traffickers like Monta Groce, who prey on vulnerable women and children, will be aggressively investigated by the FBI from major cities to rural communities such as Sparta, Wisconsin, so the victims may be rescued and the perpetrators brought to justice,” said FBI Special Agent in Charge Shields.
Evidence presented during the four-day trial, including the testimony of the three victims identified in the indictment as Jane Does 1 through 3, revealed that the defendant sold heroin in Sparta between December 2012 and April 2013. During that time, he enticed the victims to begin prostituting for his profit by providing them with heroin and pretending to be in love with them. As their dependency on him increased, he turned to violence and threatened to cut off their heroin supply if they disobeyed him, withheld money earned from prostitution or otherwise refused to prostitute. Groce further kept some of the victims in perpetual debt by fronting them heroin and charging fines as punishment. He advertised the victims on Backpage.com and paid other addicts to drive them from Wisconsin to Minnesota to prostitute. On one occasion, he gave heroin to a male heroin-addict to sell and then accused the man of stealing some of the heroin when he returned after the sale fell through. Groce beat the man in front of two of the victims, pointed a gun at him and threatened to kill him unless he paid Groce for the purportedly missing drugs.
According to her testimony, Jane Doe 1 began using heroin when she was 15 and met the defendant when she was 19, around January 2013. She testified that Groce was initially kind to her, called her beautiful and offered her a place to stay when she had nowhere else to go. He started selling her heroin, and shortly after, he manipulated her emotions to convince her to start prostituting for him. Groce required her to prostitute before giving her heroin, and if she disobeyed him, he punished her by cutting her off, causing her to suffer intense and painful withdrawal symptoms. On one occasion, he burned her face with a cigarette because she withheld money from him. She escaped with the help of Jane Doe 2. Later on in April 2014, the defendant beat, punched and kicked her while calling her a snake and a snitch because she had previously cooperated with law enforcement. After the beating, she was covered in blood and bruises.
Jane Doe 2 testified that she met the defendant when she was 21, around December 2012, after her mother died from a drug overdose. Her mother’s death caused her to start using heroin and the defendant became her dealer. She helped Jane Doe 1 escape from the defendant and then was forced herself to prostitute because, as the defendant put it, she caused him to lose money. On one occasion, when Jane Doe 2 refused to answer a prostitution call, Groce told her that she had to do the call to get her heroin. When she told him that he was not giving her a choice, he pointed to his gun and responded that she always has a choice. On another occasion, the defendant beat Jane Doe 2, throwing her into a bathtub because she had sex with a prostitution customer in his bed, rather than the designated bed for prostitution, which was occupied by another victim and customer.
Jane Doe 3 testified that on one occasion she misplaced a debit card containing money belonging to Groce. In response, Groce ordered her to do a prostitution call to pay him back. Jane Doe 3 had to work that evening at her regular job and told Groce that she did not want to do the call. Groce insisted and told her that if she refused then he would cut off her entire supply of heroin. Jane Doe 3 testified concerning the debilitating symptoms of heroin withdrawal and stated that she did the call for Groce because she feared suffering those symptoms.
The case was investigated by FBI’s Milwaukee Division with assistance from the Sparta Police Department and Monroe County, Wisconsin, Joint Investigative Task Force. The case is being prosecuted by Assistant U.S. Attorney Julie S. Pfluger of the Western District of Wisconsin and Trial Attorney Shan Patel of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Guilty Plea Entered in Drug ConspiracyRead the Press Release
Timothy Edwards, 36, of New Memphis, Illinois, pled guilty on Monday, July 11, 2016, to a three-count Second Superseding Indictment charging him with Conspiracy to Distribute, and Possess with Intent to Distribute, Cocaine and Marihuana, Making a False Statement to a Federal Law Enforcement Officer, and Maintaining Drug-Involved Premises, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today. Edwards’ sentencing hearing has been set for October 21, 2016. Edwards faces penalties for Count 1 of no less than 5 years, no more than 40 years in federal prison, a $5,000,000 fine, or both, 4 years supervised release and a $100 special assessment; for Count 2 no more than 5 years in prison and/or a $250,000 fine, 3 years supervised release and a $100 special assessment; and Count 3 no more than 20 years in prison, a fine of no more than $500,000, or both, 3 years supervised release and a $100 special assessment.
The case was investigated by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI) and the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Former West Haven Housing Authority Director Sentenced to Prison for Receiving $1.5 Million in BribesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL SIWEK, 56, of North Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 48 months of imprisonment, followed by three years of supervised release, for receiving approximately $1.5 million in bribes while serving as the executive director of the West Haven Housing Authority, and for failing to pay taxes on the illegal income.
According to court documents and statements made in court, SIWEK was the executive director of the West Haven Housing Authority (“WHHA”), an agency that received federal funding. As parties of his duties, SIWEK had substantial discretion over awarding WHHA business and contracts. From approximately February 2007 through February 2012, SIWEK received approximately $1.5 million in payments from individuals in exchange for the awarding of business and contracts with the WHHA and entities that the WHHA controlled. SIWEK received these bribes through wire transfers and check payments to himself individually, and to Four Star Development Company LLC, a limited liability corporation that he controlled. SIWEK also received payments that were characterized as “loans,” but which were not subject to any terms or conditions typically associated with commercial loans.
In addition, SIWEK did not report these payments to the IRS, and filed false tax returns that underreported his income and tax liability.
Judge Shea ordered SIWEK to pay restitution in the amount of $1,503,096.91, and back taxes, penalties and interest totaling more than $363,000.
On September 4, 2014, SIWEK pleaded guilty to one count of conspiracy to commit bribery in connection with a program receiving federal funds, one count of bribery and one count of tax evasion.
This matter was investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Sarah Karwan.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Former St. Bernard Parish Deputy Pleads Guilty in Darren Sharper MatterRead the Press Release
U.S. Attorney Kenneth A. Polite and Orleans Parish District Attorney Leon A. Cannizzaro, Jr. announced that BRANDON LICCIARDI, age 31, of Mereaux, Louisiana, pleaded guilty today to conspiracy to distribute Schedule IV controlled substances with the intent to commit crimes of violence, including rape, before the Honorable Jane Triche Milazzo, United States District Court Judge, Eastern District of Louisiana.
Pursuant to a plea agreement, the parties stipulated that LICCIARDI would be sentenced to a term of imprisonment of 17 years, to be served concurrently and co-terminously with any sentence he may receive in the Criminal District Court for the Parish of Orleans. The statutory maximum punishment for the offense is twenty years imprisonment and a fine of $250,000. LICCIARDI’s plea today was part of a global resolution of the charges against him in federal court and the Criminal District Court for the Parish of Orleans. Sentencing is set for October 13, 2016.
LICCIARDI, a former St. Bernard Parish deputy sheriff admitted that he, along with former New Orleans Saint DARREB SHARPER and ERIK NUNEZ, a former waiter at Morton’s Steak House, distributed controlled substances to unsuspecting women and then had sexual relations with them while they were incapacitated.
Most recently, on July 11, 2016, co-defendant ERIC J. NUNEZ pleaded guilty to conspiracy to distribute controlled substances to victims without their knowledge, and with the intent to commit a crime of violent, to wit: sexual battery. Sentencing for NUNEZ is scheduled for October 13, 2016 at 9:30 am.
Previously, on March 22, 2016, co-defendant DARREN SHARPER pleaded guilty to Conspiracy to Distribute a Schedule IV Controlled Substance with the intent to commit rape and two counts of Distribution of a Schedule IV Controlled Substance with intent to commit rape; Sentencing for SHARPER is set for August 18, 2016 at 9:30 am.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter and thanked District Attorney Cannizzaro and the Orleans Parish District Attorney’s Office for their invaluable cooperation. Assistant United States Attorneys Michael E. McMahon, Theodore R. Carter, III, and Brandon Long are in charge of the prosecution.
Former Broker and Bookkeeper in Agape Ponzi Scheme Sentenced to 78 Months’ ImprisonmentRead the Press Release
Earlier today, at the United States District Court in Central Islip, New York, the Hon. Denis R. Hurley sentenced Diane Kaylor, a former broker and bookkeeper of Agape World, Inc. (Agape), to 78 months’ imprisonment and ordered that she pay approximately $179 million in restitution following her convictions on April 21, 2015, after a four-week jury trial, for securities fraud, conspiracy, mail fraud, and wire fraud. These convictions arose out of the Kaylor’s participation in a Ponzi scheme, in which she took $3.6 million in commission payouts for herself, which she spent on home improvements, luxury automobiles, exotic vacations, and other items.
The sentence was 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 Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service (USPIS).
“For more than three years, Diane Kaylor and her co-defendants sold lies to thousands of unsuspecting investors,” stated United States Attorney Capers. “Victim investors have been saddled with huge debts, some lost their life’s savings, their retirements have been delayed, and their children have been saddled with unforeseen student loan payments. Kaylor has now been held to account for her role in these crimes.” Mr. Capers expressed his grateful appreciation to the FBI and USPIS, the agencies that led the government’s investigation, and thanked the United States Securities and Exchange Commission for its assistance in the case.
Nicholas Cosmo founded Agape in August 2000, following 21 months in a federal prison for defrauding investors. Between October 2005 and January 2009, Kaylor played a critical role in the scheme, soliciting and obtaining tens of millions of dollars from investors. To induce investments and discourage withdrawals, she misled investors by assuring them that their money would only be used to fund specific, short-term secured bridge loans to commercial borrowers, or to make short-term loans to small businesses, promising to pay investors unusually high rates of returns and representing that investing in Agape carried little or no risk of loss. As a result of these inducements, Kaylor actually raised significantly more money than was needed for the loans, and for her efforts she made approximately $3.6 million.
Kaylor and her co-conspirators paid returns to Agape investors, not from any profits earned on investments, but rather from existing investors’ deposits or money paid by new investors. They then took more than $370 million – approximately $55 million of which came from investors that Kaylor or her sub-brokers convinced to invest in the Ponzi scheme – from approximately 5,000 investors. Of that $370 million, only $22 million actually went to fund bridge loans. Approximately $113 million of investors’ money was used to trade high risk futures and commodities, over $80 million of which was lost in these markets.
As the fraudulent scheme began to unravel, Kaylor continued to deceive investors about Agape’s financial health. On November 3, 2008, Kaylor learned that all of Agape’s 2007 bridge loans were in default or on extension, but did not disclose this information to existing or new investors. Instead, she continued to solicit money from investors. Ultimately, approximately 3,800 investors sustained actual losses totaling more than $150 million.
On October 14, 2011, Cosmo, following his guilty plea, was sentenced to a term of imprisonment of 25 years for his role in the scheme; on February 24, 2016, following his convictions after the same four-week jury trial as Kaylor, Jason Keryc, a broker at Agape, was sentenced to a term of imprisonment of nine years for his role in the scheme; and on April 22, 2016, following his guilty plea, Anthony Ciccone, who was also a broker at Agape, was sentenced to a term of imprisonment of seven years for his role in the scheme. In addition to the convictions of Cosmo, Kaylor, Keryc, and Ciccone, the government’s investigation led to the conviction of five other defendants in the scheme, who are awaiting sentencing before Judge Hurley.
The government’s case is being handled by the Office’s Long Island Criminal and Civil Sections. Assistant United States Attorneys Christopher C. Caffarone, Bradley T. King, Grace M. Cucchissi, and Vincent Lipari are in charge of the prosecution.
The Defendant:
DIANE KAYLOR
Age: 40
Bethpage, New YorkE.D.N.Y. Docket No. 12-CR-357 (S-4)(DRH)
Five Arrested on Federal Charges Related to Two Large New Haven-Area Fencing OperationsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that five men were arrested today on federal charges related to two separate, large-scale fencing operations in the New Haven area.
On June 23, 2016, a grand jury sitting in New Haven returned an indictment charging GEORGE J. CONNELLY, JR., 45, of New Haven, PAUL WILLIAM MUZYKA, 46, of North Haven, and WILLIAM REIDELL, 40, of Branford, with one count of conspiracy and multiple counts of interstate transportation of stolen property. On July 7, 2016, a grand jury sitting in Hartford returned an indictment charging ANDREW SACCO, 43, of East Haven and formerly of Durham, and MATTHEW HARWOOD, 42, of Stratford and formerly of Durham, with one count of conspiracy and multiple counts of interstate transportation of stolen property.
Both indictments were unsealed today, after CONNELLY, MUZYKA, REIDELL, SACCO, and HARWOOD were arrested. They each appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and all were released on $100,000 bonds.
The first indictment alleges that CONNELLY and MUZYKA operated a licensed secondhand store, Ace Amusements, located at 42 Kimberly Avenue in New Haven. CONNELLY and MUZYKA are alleged to have knowingly purchased stolen property from “boosters,” who typically were shoplifters with opioid addictions. The boosters stole the goods from retail stores such as Walmart, Home Depot and Kohl’s. CONNELLY and MUZYKA then resold the stolen goods at Ace Amusements and online at websites such as eBay and Amazon. CONNELLY and MUZYKA also sold property to resellers, including REIDELL, who then resold the property online using online websites.
The second indictment alleges that SACCO and HARWOOD knowingly purchased stolen property from boosters and then resold the property at online websites, including, eBay and Amazon, usually in the names of family members and associates. SACCO and HARWOOD are alleged to have rented cars for boosters for trips to steal items for them. SACCO and HARWOOD met with boosters to purchase the stolen property at various locations, including at MVP Auto, an auto body shop located at 23 Bernhard Road in North Haven.
The charge of interstate transport of stolen property carries a maximum term of imprisonment of 10 years, and the charge of conspiracy carries a maximum term of imprisonment of five years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Federal Bureau of Investigation, with assistance from the Connecticut State Police, United States Marshals Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut Department of Correction, Connecticut Chief State’s Attorney’s Office, and the New Haven, North Haven, Milford, West Haven, Wallingford, Hamden and Orange Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys David T. Huang and John T. Pierpont, Jr.
Final Members of Portsmouth-Based “Corna Sto Boys” Sentenced for Crack Cocaine ConspiracyRead the Press Release
NORFOLK, Va. – Charles Battle, aka C.J., 38, of Portsmouth, was sentenced to 240 months in prison followed by 10 years of supervised released for his role in a conspiracy to distribute crack cocaine. Battle was one of five members or affiliates of the “Corna Sto Boys,” a Portsmouth-based group of crack dealers sentenced to prison this year here in Norfolk. On Monday, Lacharles Hodges, aka Boogie, 29, also of Portsmouth, was sentenced to 151 months in prison for the same crime.
According to court documents, both men, along with other members of the “Corna Sto Boys,” sold crack cocaine across the street from the schoolyard of a Portsmouth elementary school. This was Battle’s third conviction for selling drugs near school property in Portsmouth.
Three other members or affiliates of the same group, Norman Stephenson, aka Bree; Jawanza Johnson, aka Wanza; and Samuel Gray, aka Pig, were sentenced earlier this year:
Name
Age, Hometown
Charges
Status
Charles Battle
38, Portsmouth
Conspiracy to Distribute and Possess with Intent to Distribute 280 Grams or More of Crack Cocaine
Pleaded guilty March 15. Sentenced to 240 months on July 15.
Lacharles Hodges
29, Portsmouth
Conspiracy to Distribute and Possess with Intent to Distribute 280 Grams or More of Crack Cocaine and 5 Kilograms or More of Cocaine
Pleaded guilty March 17. Sentenced to 151 months on July 11.
Norman Stephenson
35, Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute 280 Grams or More of Crack Cocaine
Pleaded guilty February 3. Sentenced to 264 months on June 16.
Jawanza Johnson
36, Portsmouth
Conspiracy to Distribute and Possess with Intent to Distribute 28 Grams or More of Crack Cocaine
Pleaded guilty March 22. Sentenced to 120 months on June 23.
Samuel Gray
36, Portsmouth
Conspiracy to Distribute and Possess with Intent to Distribute 280 Grams or More of Crack Cocaine
Pleaded guilty March 17. Sentenced to 120 months on June 16.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Office; and Tonya D. Chapman, Chief of the Portsmouth Police Department, made the announcement after Battle was sentenced by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorneys Andrew Bosse and Joseph E. DePadilla, and Special Assistant U.S. Attorney John F. Butler, prosecuted the cases.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 2:16cr3 (Battle), 2:16cr18 (Hodges), 2:16cr16 (Stephenson), 2:16cr5 (Johnson), and 2:16cr19 (Gray).
Federal Jury in New Mexico Finds Two Men Guilty of Cocaine and Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict today finding Jose Remberto Guzman-Dominguez, 33, and Miguel Angel Rodriguez-Flores, 47, guilty of narcotics trafficking charges after a five-day trial. U.S. Attorney Damon P. Martinez, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, New Mexico State Police Chief Pete N. Kassetas, and Deputy Chief Jimmy Glascock of the New Mexico Motor Transportation Police announced the verdict.
Guzman-Dominguez, a legal permanent resident from El Salvador who was residing in Las Vegas, Nev., and Rodriguez-Flores, of Hawthorne, Calif., were arrested on Nov. 14, 2015, on a criminal complaint after officers of the New Mexico Motor Transportation Police found approximately 117.15 pounds (53.14 kilograms) of narcotics in their commercial tractor-trailer during a routine inspection at the port of entry on Interstate 10 near Lordsburg, N.M. The two men subsequently were indicted on Feb. 17, 2016, on charges that they conspired to distribute cocaine and heroin and possessed cocaine and heroin with intent to distribute. According to the indictment, defendants committed the three offenses in Hidalgo County, N.M., on the evening of Nov. 13, 2014 and the early morning of Nov. 14, 2015.
Trial on the three-count indictment began July 11, 2016, and concluded this afternoon when the jury returned a verdict of guilty on all counts of the indictment. The evidence at trial established that late on Nov. 13, 2015, and into the early hours of Nov. 14, 2015, the defendants were traveling in a commercial tractor-trailer from Phoenix, Ariz., to Lordsburg. When they entered the port of entry on Interstate 10 in Hidalgo County, the New Mexico Motor Transportation Police stopped their commercial tractor-trailer to conduct a safety inspection. After identifying several safety violations, the inspector continued with a cargo inspection and found that the trailer was fully loaded with large containers of industrial cleaning solution. While inspecting the cargo, the inspector found four cardboard boxes that were different from the industrial cleaning solution containers. One of the boxes was open and contained several cellophane wrapped bundles. Because of Guzman-Dominguez’s nervous behavior and his interest in the contents of the four boxes, the inspector requested assistance from the New Mexico State Police. The officers opened one of the cellophane bundles and found that it contained white powder that tested positive for cocaine. The four boxes contained 51 bundles with a gross weight of 53.14 kilograms.
The jury learned that laboratory tests later performed on the contents of the 51 bundles determined that 46 of the packages contained an aggregate of 105.6 pounds (47.9 kilograms) of cocaine and five packages contained an aggregate of 11.55 pounds (5.24 kilograms) of heroin.
The jury returned its guilty verdict after deliberating approximately four-and-a-half hours.
At sentencing, Guzman-Dominguez and Rodriguez-Flores each face a statutory penalty of a mandatory minimum of ten years and a maximum of life in federal prison. Guzman-Dominguez will be deported after completing his prison sentence. Both remain in custody pending sentencing hearings, which have yet to be scheduled.
The Border Enforcement Security Taskforce of the Las Cruces office of Homeland Security Investigations, New Mexico State Police, and New Mexico Motor Transportation Police investigated this case. Assistant U.S. Attorneys Brock Taylor and Richard Williams of the U.S. Attorney’s Las Cruces Branch Office are prosecuting 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. 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.
District Court Enters Permanent Injunction Against Minnesota Food Manufacturer and Company’s Managers to Prevent Distribution of Adulterated Food ProductsRead the Press Release
The U.S. District Court for the District of Minnesota entered a consent decree of permanent injunction against Kwong Tung Foods Inc. (Kwong Tung Foods) doing business as Canton Foods; the firm’s president and owner, Vieta C. Wang; and vice president, Juney H. Wang, to prevent the distribution of adulterated noodles and sprouts, the Department of Justice announced today.
The Department filed a complaint on July 14, in the U.S. District Court for Minnesota at the request of the U.S. Food and Drug Administration (FDA). The complaint alleged that Kwong Tung Foods violated the federal Food, Drug and Cosmetic Act by causing noodles and sprouts to be adulterated in that they have been prepared, packed and/or held under insanitary conditions whereby the food may have become contaminated with filth or have been rendered injurious to health. According to the complaint, the insanitary conditions included failure to exclude pests and rodents from the facility, failure to maintain equipment and failure to ensure adequate employee sanitation.
“Kwong Tung Foods was repeatedly warned about the insanitary conditions at its Minneapolis food facility,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work aggressively to protect consumers from adulterated food and enforce our nation’s food safety laws.”
In conjunction with the filing of the complaint, the defendants agreed to be bound by a permanent injunction. As part of the settlement, the defendants represented that they have ceased receiving, preparing, processing, packing, holding, or distributing any type of food at or from any location. Under the permanent injunction, if the defendants seek to resume such activity, they must take specific steps to improve the firm’s manufacturing practices, and then receive written approval from FDA.
According to the complaint, in October 2015, FDA inspected Kwong Tung Foods’ facility, located at 1840 E. 38th Street in Minneapolis, and observed numerous insanitary practices, including the defendants’ failure to take necessary precautions to protect against contamination and maintain buildings in good repair. Specifically, according to the complaint, FDA observed evidence of live and dead pests and rodents in production rooms, a black mold-like substance and debris on production equipment, inadequate employee sanitation practices, and potential cross-contamination with major allergens. In addition, FDA observed condensate dripping onto finished bean sprouts, according to the complaint.
FDA inspected Kwong Tung Foods’ facility twice in 2014. As alleged in the complaint, FDA also observed failures to exclude pests from the facility and to adequately maintain equipment and employee sanitation practices.
Under federal law, food processors are required to comply with current good manufacturing practices provided by FDA regulation. The complaint alleged that the defendants violated the law by causing food to become adulterated while it was held for sale after shipment of one or more of its components in interstate commerce.
The government is represented by Trial Attorney Alistair Reader of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Bahram Samie of the U.S. Attorney’s Office for the District of Minnesota, with the assistance of Associate Chief Counsel for Enforcement Jennifer Kang of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Minnesota, visit its website at http://www.justice.gov/usao-mn.
Department of Justice to Conduct After-Action Review of Police Response to Orlando Nightclub Mass ShootingRead the Press Release
The Department of Justice, Office of Community Oriented Policing Services (COPS Office) today announced it will conduct a comprehensive after-action assessment of the Orlando Police Department’s (OPD) response to the mass shooting that took place on June 12 at the Pulse nightclub in Orlando, Florida.
“I commend Orlando Police Chief John Mina for his leadership in asking for this assessment,” said COPS Office Director Ronald Davis. “The lessons learned from this independent, objective and critical review of such a high-profile incident will benefit not only the Orlando Police Department and its community; it will also serve to provide all law enforcement critical guidance and recommendations for responding to future such incidents.”
“Chief Mina has proven to be a tremendous leader of the Orlando Police Department,” said U.S. Attorney A. Lee Bentley, III of the Middle District of Florida. “His decision to seek an independent review of the law enforcement response to the Pulse nightclub shootings is another example of his effective leadership. The results of this review should help not only the Orlando Police Department, but also other law enforcement agencies forced to deal with terrorist attacks.”
Through its Critical Response Technical Assistance program, the COPS Office will bring in a technical assistance provider and use subject matter experts to assess OPD’s preparation and response to the mass shooting, strategies and tactics used during the incident, and how the department is managing the aftermath of the mass casualty event.
The Critical Response Technical Assistance program was designed to provide targeted technical assistance to law enforcement agencies dealing with high-profile events, major incidents or sensitive issues of varying need. The program has been used in a number of other cities, including Minneapolis, Minnesota; San Bernardino, California; Ferguson, Missouri; Tampa, Florida; and Pasco, Washington. Previous after-action assessments have provided valuable guidance on lessons learned and serve as an important tool to help the law enforcement profession advance and grow.
The COPS Office, headed by Director Ronald Davis, is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of more than 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance. For additional information about COPS, please visit www.cops.usdoj.gov.
Defendant Receives Lengthy Sentence for Cell Phone Insurance FraudRead the Press Release
ATLANTA - Laquitta S. Brackins has been sentenced to federal prison for conspiracy to commit mail and wire fraud by defrauding a cell phone insurance provider. Brackins, along with a co-conspirator, filed thousands of false insurance claims on cell phones that did not belong to them and received over $1.6 million worth of cell phones from those claims.
“Cell phone insurance fraud drives up costs for all cell phone consumers,” said U.S. Attorney John Horn. “These defendants submitted thousands of fraudulent claims in the hope they could profit before anyone noticed.”
According to U.S. Attorney Horn, the charges and other information presented in court: Brackins and co-conspirator Nicholas L. Johnson defrauded Asurion Protection Services, LLC, and its cellular service provider clients, by submitting fraudulent cell phone insurance claims. Together, they obtained over $1.6 million worth of cell phones.
As part of the conspiracy, Brackins recruited cell phone subscribers from the Atlanta area and also traveled out of state to find individuals willing to allow her to use their cell phone contracts in her scheme. The defendants also used false identification documents and forged cell phone bills to file fraudulent claims with Asurion. Under Asurion’s insurance program, subscribers receive replacement phones to replace lost or stolen phones covered by the insurance. Brackins was linked with over 3,600 fraudulent submissions and she received over 2,900 phones as a result. After the defendants received the fraudulent phones, they and others involved in the scheme sold the phones to electronic wholesalers in the Atlanta area. Once she was indicted, Brackins fled and lived under false names at various hotels. She continued the scheme, having fraudulently obtained phones sent to her at the hotels.
Laquitta S. Brackins, 35, of Atlanta, Georgia, was sentenced by U.S. District Judge Steve C. Jones to seven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,617,629. Brackins was convicted on these charges on April 19, 2016, after she pleaded guilty to conspiracy to commit mail and wire fraud, as well as to substantive mail and wire fraud counts.
Judge Jones previously sentenced Nicholas L. Johnson, 33, of Atlanta, Georgia, on March 29, 2016, to one year, nine months in prison to be followed by three years of supervised release, and he was ordered to pay restitution in the amount of $191,093. Johnson was convicted of these charges on January 4, 2016, after he pleaded guilty to conspiracy to commit mail and wire fraud, as well as to substantive mail and wire fraud counts.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Christopher J. Huber and Special Assistant United States Attorney Diane C. Schulman prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Court Shuts Down Alabama Tax Return PreparerRead the Press Release
Washington—According to a lawsuit the United States filed in April, a Birmingham, Alabama, tax return preparer continually and repeatedly prepared federal income tax returns that understated her clients’ liabilities or overstated their refunds. Now a federal court in Birmingham has permanently barred her from preparing tax returns for others and it has ordered her to give the United States a list of her customers since 2014.
Jessica Leverett aka Jessica Harris, owns and operates a number of different tax return preparation businesses in and around Birmingham, including Tax Money Now, Dynamic Tax Services, Dynamic Tax Solutions and Express Money Tax, the civil complaint alleged. Leverett’s businesses prepared returns that fabricate Schedule C businesses and business losses to offset their customers’ taxable income from other sources or to increase the customers’ Earned Income Tax Credit, according to the complaint. The complaint also alleged that Leverett’s businesses prepare returns that claim education credits that Leverett’s customers are not entitled to receive and that misreport self-employment income as household employee wages in order to avoid the self-employment tax.
The Internal Revenue Service (IRS) examined 264 returns prepared by Leverett’s businesses and found that 206 understated the customer’s tax due, the complaint alleges. Altogether, Leverett’s activities may have caused the United States to lose over $2.5 million in understated taxes and/or fraudulent refunds, according to the complaint. Leverett did not file a response challenging the government’s allegations.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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Complaint Unsealed Charging 19 Gang Members and Associates with Conspiracy to Possess with Intent to Distribute and Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
Oklahoma City, Oklahoma – A 16-month joint investigation has resulted in a criminal complaint unsealed yesterday afternoon charging 19 gang members and associates with conspiracy to possess and distribute methamphetamine and heroin, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
On Thursday, July 14, 2016, law enforcement officers from the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Bureau of Alcohol Tobacco Firearms and Explosives (ATF), Oklahoma City Police Department (OCPD), Oklahoma State Bureau of Narcotics and Dangerous Drugs (OBN), Internal Revenue Service Criminal Investigation (IRS), and the Oklahoma Department of Corrections (ODOC) executed multiple federal arrest warrants related to this investigation. The charged individuals are:
# Name Age Address1
Richard Joseph Coker
33
Oklahoma State Penitentiary
2
Richard Lee Potts
38
Oklahoma State Penitentiary
3
David Dean Cagle
34
Oklahoma State Penitentiary
4
Chad Nathen Hudson
36
Oklahoma State Penitentiary
5
Christopher Paul Brown
28
Oklahoma State Penitentiary
6
Gary Holden Schneider
29
OKC, OK
7
Angela Renee Harlan
38
Tulsa, OK
8
Robinson Rene Garcia-Aguirre
28
Oklahoma County Jail
9
Eyner Mora Esparza
23
Oklahoma County Jail
10
Tenesia Diane Rodriguez
36
OKC, OK
11
Aisha Bliss Donaldson
27
OKC, OK
12
Zane P. Yargee
22
Oklahoma County Jail
13
Daryl Lloyd Ivey
28
Oklahoma County Jail
14
Nika Deandre Davis
24
OKC, OK
15
Devon Alan Herron
23
OKC, OK
16
Margie Lee Barnhill
28
Newcastle, OK
17
Ricky Lynn Wolfe
37
Tulsa, OK
18
Amanda Heather Holland
43
Oklahoma County Jail
19
Jeremy Antowaine Taylor
34
Oklahoma County Jail
According to the criminal complaint affidavit, agents and task force officers conducted a joint investigation of the leadership of a gang that utilizes contraband cell phones within the prison and the cooperation of outside associates to operate a drug-trafficking operation. According to the complaint affidavit, a number of investigative techniques were used in this investigation, ranging from the use of cooperating defendants and sources, to controlled buys, consensually recorded telephone calls, court-authorized wire and electronic interceptions, and the execution of search warrants. It is alleged that these techniques consistently showed the existence of an extensive conspiracy to distribute large amounts of controlled substances across Oklahoma City and other parts of the state. It is alleged that more than 100 pounds of methamphetamine, firearms, and large amounts of U.S. currency have been seized during this investigation.
If convicted, the defendants each face a maximum penalty of life in federal prison.
This case is the result of a joint investigation by the FBI, DEA, ATF, OBN, OCPD, IRS, and the ODOC. The case is being prosecuted by Assistant U.S. Attorneys David McCrary and Kerry Blackburn.
The public is reminded that a criminal complaint is merely an accusation and that the defendants are presumed innocent unless proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
Cherry Hill Gang Member Sentenced to Almost 23 Years in Federal Prison for Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Asim Benns, a/k/a Seem, age 33, of Baltimore, today to 275 months in federal prison, followed by five years of supervise release, for conspiracy to participate in a racketeering enterprise in connection with his gang activities. Benns was a member of the UDH organization, as well as being a high-ranking member of the Black Guerilla Family gang, overseeing the “up the hill” area of Cherry Hill.
Also today, Judge Russell sentenced UDH gang members Donte Thornton, a/k/a Tay, age 30, of Baltimore to 15 years in federal prison, and James Scott, a/k/a Mook Day, age 24, of Essex, Maryland to 10 years in federal prison, each followed by five years of supervised release, for their participation in the racketeering conspiracy.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
From at least 2007 to 2013, the UDH organization operated in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” or “Down da Hill,” (DDH), and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the DDH section of Cherry Hill. The defendants admitted that as members of UDH they were part of a racketeering enterprise and protected their power, territory and profits through the use of violence, threats of violence, intimidation, robbery, and narcotics trafficking.
According to his plea agreement, Benns admitted that he planned and/or participated in the murders of two rival gang members, and two other shootings. Benns ran a heroin shop in the UDH area, as well as distributing other drugs. In July and August of 2011, Benns and other UDH members robbed two banks, stealing a total of $11,100, which he and the other robbers used to buy drugs that they could sell.
According to Thornton’s plea agreement, he participated in a bank robbery committed on July 19, 2011 with Benns and other UDH members. In addition, Thornton admitted his participation in a 2003 shooting and a 2007 murder of a rival gang member.
Scott, Thornton and Benns all admitted to their participation in the gang’s narcotics trafficking activities. Scott and Thornton admitted that they conspired with other UDH members to distribute at least one kilogram of heroin, five kilograms of powder cocaine, 280 grams of crack cocaine and marijuana. Benns admitted that he conspired with others to distribute between three and 10 kilograms of heroin, and between 840 grams and 2.8 kilograms of crack cocaine.
A total of 35 Cherry Hill gang members have pleaded guilty and 26 of those defendants, including the three sentenced today, have been sentenced to up to 35 years in prison.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Charlotte Jury Delivers Guilty Verdicts Against Leader of Healthcare Fraud Scheme and Co-ConspiratorRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte has convicted the leader and co-conspirator of a health care fraud scheme that fraudulently billed Medicaid for more than $10 million in false claims, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Cynthia Teresa Harlan, 48, of Charlotte, and Claude Bernard McCrae, 38, of Hamlet, N.C., were convicted of one count of health care fraud conspiracy following a four-day trial. Co-defendant Tyree Craig Jones, 38, of Charlotte, pleaded guilty to one count of health care fraud conspiracy on the fourth day of trial. Harlan was also convicted of three counts of making false statements relating to heath care matters, three counts of aggravated identity theft, and one count of obstruction of a health care fraud investigation. Chief U.S. District Judge Frank D. Whitney presided over the trial.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Rose in making today’s announcement.
According to evidence admitted at trial, witness testimony and other information contained in filed court documents:
Between October 2012 and August 2013, Harlan used a network of accomplices, including Jones and McCrae, to carry out an extensive health care fraud scheme involving the fraudulent submission of fake reimbursement claims to Medicaid for services that were never actually provided to beneficiaries. Harlan owned and operated Heartland Consulting and Marketing, Inc., a Charlotte-area company, purportedly specializing in the operation of mental health companies and Medicaid reimbursement. Harlan recruited a team of individuals that included mental health practitioners, note writers, patient recruiters, mental and behavioral health services providers and medical billers, and directed them to fabricate the necessary paperwork used to support the fraudulent claims billed to Medicaid. The fabricated paperwork included the names and beneficiary information of Medicaid recipients, fabricated intake packets, non-existent mental health diagnoses and made-up treatment plans and fake dates of service. It also included fake notes describing therapy services that never occurred. All of this information was organized in a manner to make it appear that the companies and clinicians involved in the scheme had provided legitimate therapy beneficiaries, contrary to the truth. The patient files were intended to deceive Medicaid auditors in case there was an inquiry about the accuracy of the fake claims.
Jones and McCrae were the co-owners of two outpatient mental and behavioral health services companies, Kings of Carolina Care 1, Inc. (Carolina Care 1), and Esteem Family Life Center, LLC (Esteem), both located in Rockingham, N.C. The two men partnered with Harlan and others to submit false reimbursement claims to Medicaid, claiming that the two entities provided mental and behavioral health services to the Medicaid recipients, when, in reality no services were provided at all. According to court records, Jones and McCrae, through Carolina Care 1, attempted to obtain from Medicaid over $5 million in fraudulent reimbursement claims and received over $1.3 million from Medicaid for the fraudulent claims.
Evidence at trial demonstrated that Harlan, Jones and McRae accomplished some of the fraud by misappropriating the Medicaid identification number of doctor. This doctor had never agreed to be part of Carolina Care 1, yet the group claimed that this doctor had provided over $2.3 million in therapy services to Medicaid recipients in just one year. Additionally, evidence presented at trial demonstrated that the false claims submitted by Carolina Care 1 indicated that Carolina Care 1 allegedly serviced over 500 clients in a single day.
Trial evidence also established that Harlan misused the names and Medicaid identification numbers of hundreds of Medicaid beneficiaries, including A.H., B.H. and M.H., in order to accomplish the scheme. According to the mothers of A.H. and M.H., who testified at trial, their children did not have mental health issues and never received any therapy services from any company. Harlan received over $400,000 for her role in the scheme. When Harlan became aware that she was being investigated for Medicaid fraud, Harlan directed some of her co-conspirators to destroy records as well as incriminating emails and text messages relevant to the scheme for the purpose of obstructing the investigation.
“Harlan and her extensive network of fraudsters and cheats repeatedly cheated North Carolina’s Medicaid program of money intended to pay for medical services of those in real need. The U.S. Attorney’s Office will continue to ferret out health care fraud and hold accountable those who cheat important government programs and steal taxpayers’ dollars,” said U.S. Attorney Rose.
“Medicaid fraud deprives much-needed services to poor and disabled North Carolinians and increases health care costs for everyone. The people trusted with the resources to care for others should not use that access to defraud the healthcare system. The FBI will work tirelessly to ensure federal funding is spent in an appropriate and legal manner,” said FBI’s Special Agent in Charge Strong.
To date, the following individuals have been prosecuted federally in connection with this health care fraud conspiracy:
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Aliya Boss was previously sentenced to 44 months in prison, three years supervised release and was ordered to pay $ 1,135,302.27 in restitution. Boss filed reimbursement claims to Medicaid fraudulently claiming that she had provided mental health and behavioral health services to beneficiaries.
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Alexander Bass and Torrey Darnell Moton were previously sentenced to 32 and 25 months in prison, respectively, three years of supervised release and were ordered to pay $370,372.37 as restitution.Bass and Moton owned United Rehabilitation Services (URS), in Erwin, N.C., and filed reimbursement claims to Medicaid fraudulently claiming that URS provided mental health and behavioral health services to beneficiaries.
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Sakeenah Davis and Kino Williams were previously sentenced to 42 and 35 months in prison, respectively, three years supervised release and were ordered to pay $ 506,124.00 in restition. Davis and Williams owned New Choices Youth and Family Services, in Charlotte, North Carolina, and filed reimbursement claims to Medicaid fraudulently claiming that URS provided mental health and behavioral health services to beneficiaries.
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Jacqueline Ford was previously sentenced to 21 months in prison and three years supervised release and was ordered to pay $442,679.92 restitution. Ford fabricated notes to support the false claims submitted by Carolina Care 1, URS and other companies.
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Zaria Humphries was previously sentenced to 24 months in prison and three years supervised release and was ordered to pay $222,037 in restitution. Humphries submitted false claims through her company Life Impact Solutions.
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Tanisha Melvin was sentenced to 33 months in prison, three years of supervised release and was ordered to pay $392,159.81 in restitution.Melvin was responsible for creating fake patient records for the conspiracy.
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LaChanda Clotiel Parks, also responsible for generating fake patient paperwork, was sentenced to 28 months in prison followed by three years of supervised release, and was ordered to pay $352,565.69 in restitution for her role in the conspiracy.
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Dr. Wanda Webb was sentenced two years probation and ordered to pay $79,338.74 in restitution. Webb also submitted fraudulent claims through her company, Cornerstone Counseling and Consulting.
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D’Marcus White, also responsible for generating fake patient paperwork, was previously sentenced to two years probation and ordered to pay $543,366.64 in restitution.
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Jason Adam Townsend is also facing health care fraud conspiracy and aggravated identity theft charges, for submitting fraudulent claims through his medical billing services company, Townhall Enterprises, LLC, located in Raeford, N.C.
McCrae is currently released on bond. Jones was remanded to federal custody on July 14, 2016, and Harlan remains in federal custody. A sentencing date for the defendants has not been set yet.
The health care fraud conspiracy charge carries a maximum prison term of 10 years. The maximum prison term for making false statements relating to health care matters is five years per count. The maximum penalty for obstruction of a health care fraud investigation offense carries a maximum prison term of five years and the aggravated identity theft charge carries a mandatory prison term of two years per count, consecutive to any other term of imprisonment.
The investigation was handled by the FBI with assistance from the North Carolina Medicaid Investigations Division. In making today’s announcement, U.S. Attorney Rose also thanked the Rockingham Police Department and the Richmond County Sheriff’s Office for their assistance at trial. The United States is being represented by Assistant U.S. Attorneys Kelli Ferry and Daniel Ryan, of the U.S. Attorney’s Office in Charlotte.
The investigation is the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
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Charleston Felon in Possession Sentenced to Seven Years in Prison in Federal CourtRead the Press Release
Contact Person: Emily Limehouse (843) 727-4381
Columbia, South Carolina---- Acting United States Attorney Beth Drake stated today that Junnie Lavon Williams, age 29, of Charleston, South Carolina was sentenced in federal court in Charleston, South Carolina, for Felon in Possession of Firearm and Ammunition in violation of 18 U.S.C. § 922(g)(1), facing a sentence of up to ten years in prison. Williams was previously convicted of possession with intent to distribute a controlled substance in 2004 and burglary in 2011, making him a prohibited person under the law. United States District Judge David C. Norton of Charleston sentenced Williams to seven years in prison. The term of imprisonment is to be followed by three years of supervised release. Williams pled guilty on January 15, 2016. Facts incorporated into the record at sentencing established that on January 31, 2015, a City of Charleston Police Department officer approached Williams because he fit the description of a person reportedly smoking marijuana on the sidewalk of North Market Street. Williams fled as the officer approached. Williams fell entering a construction site and attempted to discard an object from his front waist band. The officer detained Williams and discovered a black Smith and Wesson .380 caliber pistol loaded with six rounds of ammunition within arm's reach of Williams. Williams was also carrying a second loaded magazine in his pocket. The pistol's serial number had been filed off and black marker covered the scratch marks. Officers conducted an NCIC query and determined that Williams was a convicted felon prohibited from possessing a firearm. The conviction was a result of an investigation conducted by the City of Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys Nathan Williams and Emily Limehouse of the Charleston office prosecuted the case.
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Carole S. Rendon sworn in as U.S. Attorney for the Northern District of OhioRead the Press Release
Carole S. Rendon was sworn in as United States Attorney for the Northern District of Ohio this morning.
In that role, she is the chief federal law enforcement officer in Ohio’s northern 40 counties. The office is tasked with enforcing a wide range of criminal and civil statutes, including the prosecution of crimes including public corruption, civil rights, drug trafficking, fraud, human trafficking, firearms crimes and other violations.
“I am humbled by this honor,” Rendon said. “I look forward to continuing to work on our region’s most pressing challenges, including the opioid epidemic and police/community relations.”
U.S. District Judge Solomon Oliver delivered the oath to Rendon. A formal investiture ceremony will take place next month.
Rendon served from 2009 through 2016 as the First Assistant United States Attorney. In that role, she was responsible for the daily operation of the United States Attorney’s Office, including oversight of significant civil and criminal matters, litigation, strategic planning, community outreach, agency coordination, and office policies and procedures.
During that time, she was lead counsel on U.S. v. City of Cleveland, an exhaustive investigation of the Cleveland Division of Police which resulted in significant changes to areas including use of force, crisis intervention with the mentally ill, community engagement, bias-free policing, search and seizure, accountability, training, equipment and staffing. It is viewed as a national model for police reform.
She was also instrumental in developing the U.S. Attorney’s Task Force on Heroin and Opioids, which seeks to find comprehensive solutions to Northern Ohio’s heroin and opioid epidemic. She also was a driving force behind the Northeast Ohio Cyber Consortium, a cross-sector public-private partnership designed to reduce the region’s vulnerability to cyber attacks.
Rendon is a 1987 graduate of Northwestern University School of Law. She began her career as a law clerk to the Honorable Joel Flaum on the Seventh Circuit Court of Appeals. Carole then entered the Attorney General’s Honors Program in the Criminal Division of the Department of Justice and was assigned to the Organized Crime Strike Force Unit in Boston, Massachusetts, which later was merged into the United States Attorney’s Office.
In the Strike Force, she handled a series of investigations and prosecutions of corruption in the Boston Police Department and international Asian organized crime. In April 1994, Rendon became Chief of the Organized Crime Drug Enforcement Task Force, where she oversaw all of the major federal narcotics prosecutions.
In 1998, Rendon returned home to Cleveland and joined Messerman & Messerman. She later started the firm of Kushner & Rendon. In 2007, Carole seized the opportunity to join the women-owned litigation firm of Giffen & Kaminski. In each of those firms, Carole had both an active civil and criminal practice in federal and state court.
COPS Office to Conduct After-Action Review of Police Response to Orlando Nightclub Mass ShootingRead the Press Release
The Department of Justice, Office of Community Oriented Policing Services (COPS Office) today announced it will conduct a comprehensive after-action assessment of the Orlando Police Department’s (OPD) response to the mass shooting that took place on June 12 at the Pulse nightclub in Orlando, Florida.
Statement from U.S. Attorney Bentley:
“Chief Mina has proven to be a tremendous leader of the Orlando Police Department. His decision to seek an independent review of the law enforcement response to the Pulse nightclub shootings is another example of his effective leadership. The results of this review should help not only the Orlando Police Department, but also other law enforcement agencies forced to deal with terrorist attacks.”
Click this link to view the COPS Office press release in its entirety.
CIA Imposter Sentenced to Prison for FraudRead the Press Release
ALEXANDRIA, Va. – Wayne Shelby Simmons, 62, of Annapolis, Maryland, a former Fox News commentator who has falsely claimed he spent 27 years working for the Central Intelligence Agency (CIA), was sentenced today to 33 months in prison for major fraud against the government, wire fraud, and a firearms offense. Simmons was also ordered to serve three years of supervised release, to forfeit two firearms and $175,612 in criminal proceeds, and to pay restitution to his victims.
“Wayne Simmons is a fraud,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Simmons has no military or intelligence background, or any skills relevant to the positions he attained through his frauds. He is quite simply a criminal and a con man, and his fraud had the potential to endanger national security and put American lives at risk in Afghanistan. I want to thank the agents and prosecutors for their efforts on this complicated case.”
“With this sentencing, Simmons now faces the consequences of his criminal activity, deceit, and dishonesty,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “He fraudulently obtained positions with the U.S. government by lying about his previous employment and history, and further, defrauded a victim through a bogus real estate investment scheme. Simmons abused people's trust for his own selfish gain, and in doing so placed lives at risk and jeopardized national security.”
“Mr. Simmons never worked at CIA and we are pleased that justice was served in this case,” said Dean Boyd, Director of CIA’s Office of Public Affairs.
Simmons pleaded guilty on April 29. According to court documents, Simmons defrauded the government in 2008 when he obtained work as a team leader in the U.S. Army’s Human Terrain Systems program, in 2009 when he attempted to obtain work with the State Department’s Worldwide Protective Service, and again in 2010 when he was deployed to Afghanistan as a senior intelligence advisor on the International Security Assistance Force’s Counterinsurgency Advisory and Assistance Team (CAAT). To obtain these positions and the security clearances they required, Simmons made false statements about his financial, employment, and criminal history, including that he had worked for the CIA, that he had previously possessed a top secret security clearance, and that his prior criminal convictions related to his supposed clandestine work. In order to obtain the CAAT position, Simmons also lied about the nature of the work he had done just a year earlier with the Human Terrain Systems program, a program from which he had been forced to resign prior to deployment. The government’s investigation determined that Simmons was never associated with the CIA in any capacity and that during the years he claims to have worked for the agency, he was instead working in a variety of capacities and having various run-ins with the law. His work activities from 1973-2000 include: defensive back for the New Orleans Saints NFL team, nightclub doorman, manager at a rent-by-the-hour hot tub business, bookie, operator of a limousine business and an AIDS-testing business, mortgage broker, and employment at an anti-graffiti business. During that time, the defendant was also convicted of state firearms, assault, and gambling charges and federal firearms charges.
Simmons also defrauded an individual victim, identified as E.L., out of $125,000 in connection with a bogus real estate investment. As part of the fraud, Simmons sent E.L. promised monthly disbursements to make it appear as if her funds had been invested as promised and repeatedly lied to her about the whereabouts of her money in order to perpetuate the fraud. There was never any actual real estate investment project, and Simmons simply spent the funds.
Finally, when Simmons was arrested in this case, he was found to be in possession of two firearms, which he was prohibited from possessing on account of his prior felony convictions.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T. S. Ellis, III. Assistant U.S. Attorneys Paul J. Nathanson and James L. Trump prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1: 15-cr-293.
Brooklyn Man Sentenced for Conspiracy to Defraud U.S. Defense Contractors and ID Theft Fraud Scheme Targeting TD BankRead the Press Release
ALEXANDRIA, Va. – Solomon Oyesanya, 34, of Brooklyn, New York, was sentenced today to 60 months in prison for his participation in two fraud schemes arising out of the Eastern District of Virginia and the Eastern District of Pennsylvania and resulting in intended losses exceeding $1.5 million.
Specifically, Oyesanya was sentenced to 27 months in prison for defrauding U.S. defense contractors by conspiring to commit wire fraud, and a concurrent term of 60 months in prison for committing bank fraud and aggravated identity theft in connection with a scheme to defraud TD Bank. Oyesanya also was ordered to serve a total of five years on supervised release, forfeit $25,000 in criminal proceeds, and pay restitution to his victims.
U.S. Defense Contractor Scheme
On March 28, Oyesanya pleaded guilty to conspiring to commit wire fraud in connection with a scheme to defraud U.S. defense contractors. According to court documents, Oyesanya was part of a conspiracy, led by two Nigerian nationals, to fraudulently obtain computer hardware and products from contractors and vendors who were approved to do business with the U.S. Government, specifically the U.S. Department of Defense (U.S. DoD). To accomplish this scheme, members of the conspiracy created fake U.S. DoD and other U.S. government agency websites and email accounts (sometimes called “spoofed” websites and email accounts), and placed fraudulent government purchase orders with victim contractors and vendors for large quantities of computer hardware and similar products.
In furtherance of the spoofing conspiracy, Oyesanya, using false identification, picked up or attempted to pick up fraudulently ordered shipments from legitimate carriers to divert the shipments to co-conspirators in Nigeria.
According to court documents, the victimized defense contractors suffered actual losses attributable to Oyesanya in excess of $160,000 and intended losses attributable to Oyesanya in excess of $970,000.
TD Bank Scheme
On May 12, Oyesanya pleaded guilty to bank fraud and aggravated identity theft in connection with a scheme to defraud TD Bank. According to court documents, beginning no later than March 3, 2011, and continuing until at least November 2012, Oyesanya conspired with other persons to defraud TD Bank out of money by fraudulently accessing TD Bank customer accounts without the customer’s knowledge or consent to withdraw funds. Oyesanya and his co-conspirators gained access to the accounts of legitimate TD Bank customers by using means of legitimate customer identification, such as customers’ names, dates of birth, addresses, and social security numbers, as well as falsified drivers’ licenses. Oyesanya and his co-conspirators made deposits in the form of counterfeit checks, small amounts of cash, or a small denomination money order into existing TD Bank customer accounts in order to learn account information, or, if in the form of a fraudulent check, to withdraw funds before TD Bank discovered that the check was fraudulent. They also obtained online access to customer accounts as well as access to new ATM debit cards and PIN numbers in the names of existing TD Bank customers.
According to court documents, to cover up their scheme, Oyesanya and his co-conspirators often posed as the legitimate TD Bank customers and instructed TD Bank to change the customers’ phone numbers to prevent the customers from being notified of the withdrawal of funds from their accounts. Furthermore, Oyesanya and his co-conspirators used the fraudulently obtained ATM debit cards to withdraw cash at ATM machines and make purchases at merchants such as Target, Walmart, and the U.S. Postal Service.
As a result of this scheme, TD Bank suffered actual losses exceeding $500,000 and intended losses exceeding $760,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Jeffrey Thorpe, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Cyber Field Office; Kevin Perkins, Special Agent in Charge of the FBI’s Baltimore Field Office; and Brian A. Michael, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Philadelphia, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Michael Lowe of the U.S. Attorney’s Office for the Eastern District of Pennsylvania originally prosecuted this case. Assistant U.S. Attorneys Kellen S. Dwyer and Alexander P. Berrang and Special Assistant U.S. Attorney John D. Filamor continued the prosecution of this case in the Eastern District of Virginia.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-69 and Case No. 1:16-cr-90.
Beaufort Man Gets More than Five Years in Federal Prison for Possession of Twelve Stolen GunsRead the Press Release
Contact Person: Emily Limehouse (843) 727-4381
Columbia, South Carolina---- Acting United States Attorney Beth Drake stated that Malcolm Anthony Moore, age 23, of Beaufort, South Carolina was sentenced today in federal court in Charleston, South Carolina for Possession of Stolen Firearms in violation of 18 U.S.C. § 922(j). United States District Judge Richard M. Gergel of Charleston sentenced Moore to 63 months. Moore pled guilty on February 18, 2016. Facts incorporated into the record at the sentencing established that on three different occasions, search warrants were executed on Moore's residence, and officers seized numerous firearms. Moore admitted that he planned to traffic the firearms. In total, 31 firearms were involved, twelve of which were stolen. The conviction was the result of an investigation conducted by the Beaufort County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys Nathan Williams and Emily Limehouse of the Charleston office prosecuted the case.
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Bank Robber Sentenced to over 13 Years in Federal Prison for Seven Robberies Committed During One Week in 2013Read the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Keith Dunmore, age 47, of Washington, D.C., today to 162 months in federal prison, followed by three years of supervised release, for bank robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation-Baltimore Field Office; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Maryland Attorney General Brian E. Frosh.
According to his plea agreement and other court documents, from June 7 through June 20, 2014, Keith Dunmore, his brother Dallas Dunmore, Derrick Hart and Teddy McCain robbed or attempted to rob banks in Maryland and Virginia. In each robbery the conspirators passed notes to bank employees threatening to use violence and implying the possession of firearms unless the employees provided the money. During the robbery on June 20, 2013, which Keith Dunmore committed alone, he brandished a gun at the teller. The conspirators divided the proceeds of the bank robberies amongst themselves.
Keith and Dallas Dunmore generally entered the bank and presented the teller with a note demanding money. On one occasion the note stated that Dallas Dunmore had a gun, while on two other occasions Dallas Dunmore told the teller that he or another conspirator had a gun. McCain waited outside during each robbery. Hart also waited outside during the robberies, except on June 19, 2013, when Hart entered the bank with Keith and Dallas Dunmore. On June 20, 2013, Keith Dunmore entered a bank in Largo, Maryland, handed the bank teller a note that demanded money, and brandished a firearm. The teller gave $2,040 to Keith Dunmore, who fled the bank.
The total proceeds from the seven robberies in which Keith Dunmore participated are $10,477. The total proceeds from the five robberies in which Dallas Dunmore participated are $5,370; and the total proceeds from the six robberies in which Hart and McCain participated are $8,437.
Co-conspirators Dallas Eric Dunmore, age 49, of Washington, D.C., was sentenced to 163 months in prison; Derrick Hart, age 45, of District Heights, Maryland, was sentenced to 75 months in prison; and Teddy McCain, age 56, of Germantown, Maryland, was sentenced to six years in prison. Each was also ordered to pay restitution in the full amount of the loss to the banks.
United States Attorney Rod J. Rosenstein praised the FBI; Prince George’s and Montgomery County Police Departments; the Arlington, Fairfax, and Alexandria, Virginia Police Departments; and the Maryland Attorney General’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas Mitchell, who prosecuted the case.
Albuquerque Man Pleads Guilty to Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Daniel Jiron, 41, of Albuquerque, N.M., pled guilty today in federal court to heroin and methamphetamine trafficking charges. Under the terms of his plea agreement, Jiron will be sentenced within the range of 72 to 96 months in prison followed by five years of supervised release. The guilty plea was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division.
Jiron and 14 co-defendants were charged in Dec. 2013, with drug trafficking and firearms charges as the result of an 18-month investigation by DEA and the HIDTA Region I Narcotics Task Force into a drug trafficking organization allegedly led by David Reynolds, 33, of Albuquerque, N.M., that distributed large quantities of heroin in Bernalillo and Santa Fe Counties, N.M. The investigation was designated as part of the Organized Crime Drug Enforcement Task Forces (“OCDETF”) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Jiron was charged in a 15-count superseding indictment that also charged Reynolds and 13 others with conspiring to distribute heroin in Bernalillo and Santa Fe Counties from Sept. 2012 through Dec. 2013. It also charged Gene Solis, 21, with distributing heroin on three occasions in fall 2012; Humberto Hernandez, Jr., 39, with distributing methamphetamine on seven occasions between Feb. and Aug. 2013; and Jose Martinez-Encinias, 43, with possession of heroin and cocaine with intent to distribute in June 2013, and possession of firearms in furtherance of a drug trafficking crime. Reynolds also was charged with money laundering. The superseding indictment included forfeiture provisions seeking a money judgment of at least $1.3 million and property and assets obtained directly or indirectly from the commission of the crimes alleged in the indictment. A second superseding indictment that added additional charges subsequently was filed in June 2016.
In Aug. 2015, Jiron was charged in a separate case with a methamphetamine trafficking offense. The indictment in this second case charged Jiron with possessing methamphetamine with intent to distribute in Bernalillo County on Sept. 3, 2013.
During today’s proceedings, Jiron resolved the charges in both cases by entering a guilty plea to the heroin trafficking conspiracy in the first case and a felony information charging him with methamphetamine trafficking. In entering the guilty plea, Jiron admitted that between Sept. 28, 2012 and Dec. 12, 2013, he received heroin on consignment from a co-conspirator and redistributed the heroin in Albuquerque. Jiron also admitted possessing methamphetamine that was seized by law enforcement officials who executed a search warrant at his resident on Sept. 3, 2013. Jiron remains in federal custody pending a sentencing hearing, which has yet to be scheduled.
Two of Jiron’s co-defendants previously entered guilty pleas. Teddy Archuleta, 34, of Albuquerque, pled guilty to a felony information charging him with conspiracy to distribute heroin on Oct. 15, 2015. At sentencing, Archuleta faces a statutory maximum penalty of a mandatory minimum of five years and a maximum of 40 years in prison. Miguel Baca, 40, also of Albuquerque, pled guilty to a conspiracy charge on June 6, 2016. Baca faces a statutory penalty of a mandatory minimum of ten years and a maximum of life in prison when he is sentenced. Baca and Archuleta remain detained in federal custody pending sentencing hearings, which have yet to be scheduled.
The remaining 12 defendants have entered pleas of not guilty. If convicted on the drug trafficking charges in the superseding indictment, each defendant faces a maximum penalty of a mandatory minimum ten years to a maximum of life in prison. If convicted on the firearms charge, Martinez-Encinias also faces a mandatory five year prison sentence to be served consecutive to any prison sentence imposed on the drug trafficking charges. Reynolds faces up to ten years in prison if convicted on the money laundering charge. Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region I Narcotics Task Force, with assistance from the Bernalillo County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorneys Timothy S. Vasquez and Joel R. Meyers pursuant to 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.
The HIDTA Region I Narcotics Task Force is comprised of the Albuquerque Police Department, Albuquerque office of the DEA, Pojoaque Tribal Police Department, Rio Rancho Police Department, Sandoval County Sheriff’s Office and the Valencia County Sheriff’s Office. 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.
40 Individuals Charged with Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On July 12, 2016, a federal grand jury in the District of Puerto Rico returned an indictment against 40 defendants charged with conspiracy to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration and the Puerto Rico Police Department (PRPD), Carolina Strike Force Unit, are in charge of the investigation, with the collaboration of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the US Marshals.
The indictment alleges that beginning in 2009, the organization distributed crack, heroin, cocaine, and marihuana, at the Sábana Abajo Public Housing Project in Carolina and other areas nearby, all for significant financial gain and profit.
The forty defendants acted in different roles in order to further the goals of their organization, to wit: leaders, drug point owners, enforcers, managers, runners, sellers, and facilitators. Twenty-two defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime.
The defendants are: Roberto Rodríguez-Rivera, a.k.a. “Chova”; Chayanne Fernández-Garay, a.k.a “Cantante”; Carlos Clemente-Bultrón, a.k.a. “Tiki”; Luis Marcano-Oquendo, a.k.a. “Tito Escopeta”; Luis O. Rivera-Torres, a.k.a. “Cepillo”; Manuel Pérez-Calderón, a.k.a. “Chichón”; Jean Carlos Fernández-Garay, a.k.a. “Bebo”; Jonathan Fernández-Garay, a.k.a. “Gungle”; Edwin R. Andino-Acevedo, a.k.a. “Pitbul”; Rafael Tanco-Pizarro, a.k.a. “Rafi Tiniebla”; Juan A. Tanco-Báez, a.k.a. “Anthony”; Peter A. Rosario-Serrano; Yomar Clemente-Bultrón, a.k.a. “Búho”; Leandro A. Martínez-Vizcarrondo; Julio E. Núñez-Ortiz, a.k.a. “Piru”; Cynthia González-Landrau; Jacqueline Torres-Serrano; Wadys A. Vázquez-Guzmán, a.k.a. “Guadi”; José Ortiz-Cordero, a.k.a. “Trombo”; Ulises Rivera-Salamán; Jorge Rodríguez-Andino; José Cepeda-Martínez, a.k.a. “Zurdo”; José Loiz Calderón, a.k.a. “Chein”; Charlie Clemente-Andino, a.k.a. “Baby”; David Isaac Febus, a.k.a. “Durán”; Wendemar Andino-Acevedo, a.k.a. “Wen”; Julio Quiñones-Filomeno, a.k.a. “Heli”; David García-Pagán, a.k.a. “Davo”; Melvis I. García-Ramos, a.k.a. “Paciencia”; Yashira González-Álvarez; José Rafael Rivera-Díaz, a.k.a. “Joselito”; Richard Medina-Serrano, a.k.a. “Palomita”; Yariliz Fernández-Garay; Orangel López-Rosado; Javier Ulises Rivera-Salamán, a.k.a. “Tingo”; Ricardo Torres-Díaz, a.k.a. “Richi”; Luis E. Muñoz-Ayuso, a.k.a. “Panteón”; Kevin Velázquez-Rodríguez, aka “Pollo”; and Amaury J. Salamán-Morales.
The defendants and their co-conspirators routinely possessed, carried, brandished and used firearms to protect themselves and their drug trafficking organization, maintain control of their drug points, intimidate and retaliate against other drug trafficking organizations and expand their drug trafficking activities. Armed individuals provided security to the drug point at the housing project and got paid by the organization.
“This particular organization was very violent in nature and operated mostly in Carolina PR. As part of the investigation many weapons such as rifles, fully automatic handguns and regular handguns were seized from members of the organization,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue investigating and prosecuting these individuals who dedicate their lives to criminal activities.”
“The dismantlement of this Drug Trafficking Organization (DTO) is part of our agency's constant and arduous mission. We will continue intervening, disrupting and dismantling DTOs that detriment the quality of life of the people who live in Public Housing Projects, as well as the Puerto Rican society in general,” said Matt Donahue, DEA's Caribbean Division Special Agent in Charge.
Assistant U.S. Attorney Teresa Zapata-Valladares is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Thursday 14 July 2016
Zuni Pueblo Man Sentenced to More Than 20 Years for Second-Degree Murder ConvictionRead the Press Release
ALBUQUERQUE – Dusty Chavez, 23, a member and resident of Zuni Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to 248 months in prison followed by five years of supervised release for his conviction on a second-degree murder charge. Chavez’s co-defendant, Douglas Burt, 20, also a member and resident of Zuni Pueblo, was sentenced to 17 years in prison followed by five years of supervised release on July 12, 2016.
Chavez and Burt were arrested in Nov. 2014, on a criminal complaint charging them with murdering a man on Oct. 28, 2014, in the Zuni Indian Reservation in McKinley County, N.M. Chavez and Burt were subsequently indicted on murder charges on Nov. 19, 2014.
Chavez pled guilty to a felony information charging him with second-degree murder on Jan. 12, 2016. According to the plea agreement, Chavez and Burt instigated a fight with the victim during which Chavez threw the victim to the ground and then kicked and punched the victim. Burt also kicked the victim; Chavez hit the victim in the head with a rock; and Burt stabbed the victim in the chest. The autopsy report revealed that the victim died as a result of blunt force trauma to the head and stab wounds to the chest. Burt pled guilty to a felony information charging him with second-degree murder on Jan. 7, 2016.
This case was investigated by the Gallup office of the FBI and the Zuni Pueblo Tribal Police Department. Assistant U.S. Attorneys Elaine Y. Ramirez and Kyle T. Nayback prosecuted the case.
Watertown Man Sentenced for Illegally Possessing MachinegunsRead the Press Release
SYRACUSE, NEW YORK – Bruce Fowler, 60, of Watertown, New York, was sentenced by Senior U.S. District Judge Norman A. Mordue to a term of imprisonment of 1 year and 1 day to be followed by 3 years of supervised release for illegally possessing three (3) machinegun conversion devices, announced United States Attorney Richard S. Hartunian. The sentence followed his March 9, 2016 guilty plea.
It is illegal to possess fully automatic machine guns in the United States, and cannot legally be offered for sale. Realizing that, Fowler bought conversion devices from a foreign supplier and used them to convert a Glock handgun and an AR-15 rifle to fire as fully automatic. He also purchased two high capacity magazines for the Glock handgun. When confronted by U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agents about these purchases, Fowler initially denied that he had done so, then admitted to only the purchases known by ATF at the time and surrendered those devices to ATF while concealing that he had purchased yet another device. When confronted by ATF about that final conversion device, Fowler admitted making that purchase as well, but claimed that he had discarded it and other materials in a trash dumpster.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives-Syracuse Resident Office, and was prosecuted by Assistant U.S. Attorney Ransom P. Reynolds.
United States Files Lawsuit to Recover Monetary Damages Associated with 2013 Mountain Fire in San Bernardino National ForestRead the Press Release
LOS ANGELES – A federal lawsuit filed today seeks nearly $25 million in damages from the owner of a Mountain Center residence and the property’s caretakers for alleged negligence that led to the 2013 Mountain Fire, which burned for more than two weeks and scorched over 27,500 acres, more than half of which was in the San Bernardino National Forest.
The civil complaint alleges negligence and violations of California law as being the cause of the fire that started on July 15, 2013, and burned a large swath of the San Jacinto Mountains, for a time threatening the town of Idyllwild and forcing over 5,000 residents to evacuate. An investigation determined that the fire started when an electrical discharge inside of an improperly maintained electrical junction box “shot sparks and hot material out of the box and onto dry ground vegetation below,” according to the lawsuit.
The Mountain Fire started on property known as Gibraltar West that is owned by Tarek M. Al-Shawaf, who is the lead defendant in the lawsuit. The complaint also names as defendants James D. Nowlin and Donna L. Nowlin, who were the caretakers employed by Al-Shawaf.
The defendants had a duty “to properly inspect and maintain their electrical equipment, electrical wires, and electrical junction boxes to ensure that they were safe, properly secured, and clear from dangerous conditions,” the complaint alleges.
“Property owners and their agents have a responsibility to ensure that property under their control is maintained in a safe fashion,” said United States Attorney Eileen M. Decker. “In addition to endangering countless lives, including those of firefighters who battle these large-scale blazes, the failure to properly manage the property and the electrical equipment on the property in this case cost taxpayers approximately $24 million dollars.”
The United States Forest Service expended considerable resources to suppress the Mountain Fire, including deploying more than 3,000 firefighters, 250 fire engines, 20 helicopters and 10 airplanes. The complaint specifically alleges that the Forest Service spent more than $15 million to fight the fire, that the fire caused more than $9 million in damages to natural resources, and that more than $300,000 had to be spent to perform emergency rehabilitation. “The damages to the United States include, but are not limited to: mitigation, rehabilitation, and reforestation of burned areas; loss of and damage to timber, habitat, wildlife, watershed, earth, scenery, and environment; aesthetic values; loss of use and recreation; soil damage; and erosion,” according to the lawsuit.
The federal lawsuit comes after the Forest Service made demands that Al-Shawaf and the Nowlins pay for the costs and damages associated with the fire. The defendants have not paid any of the money demanded by the government.
While the lawsuit alleges that the Forest Services suffered losses of nearly $25 million, the defendants could also be ordered to pay intangible environmental damages for harm caused to the San Bernardino National Forest, as well as interest and penalties.
This matter was investigated by the United States Forest Service and the California Department of Forestry and Fire Prevention.
This case is being handled by Assistant United States Attorney Garrett Coyle of the Civil Division.
Two Charged with Conspiracy and Fraud for Ticket SchemeRead the Press Release
PITTSBURGH – Two Western Pennsylvania residents have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and wire fraud, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on June 21 and unsealed yesterday, named Jamie J. McNamara, 32, of Washington, Pa., and Michael F. Schoedel, 26, of Pittsburgh, Pa.
According to the indictment, from on or about March 1, 2014 to March 17, 2014, McNamara and Schoedel falsely represented that they had tickets to entertainment events to potential purchasers on Craigslist. They would then have potential purchasers wire money for these tickets, but McNamara and Schoedel did not provide any tickets.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000.00 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.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tullett Prebon and ICAP Restructure Transaction after Justice Department Expresses Concerns about Interlocking DirectoratesRead the Press Release
The Department of Justice announced today that the restructuring of the $1.5 billion transaction between Tullett Prebon Group Ltd. (Tullett Prebon) and ICAP plc addresses the Department’s concerns that the transaction would violate Section 8 of the Clayton Act by creating an interlocking directorate. An interlocking directorate is where one person – or an agent of one person or company – sits on the board of directors of two competitors.
As originally structured, the transaction would have resulted in ICAP owning 19.9 percent of Tullett Prebon and having the right to nominate one member of Tullett Prebon’s board of directors. Given that ICAP and Tullett Prebon would continue to compete after the transaction, the department had serious concerns that ICAP’s ability to nominate a Tullett Prebon board member would create an interlocking directorate in violation of Section 8 of the Clayton Act. The revised agreement will provide that ICAP will not own any part of Tullett Prebon after the transaction and will have no right to nominate a member of Tullett Prebon’s board of directors.
“Robust competition depends on competitors being actually independent of each other – that’s what Section 8 requires,” said Principal Deputy Assistant Attorney General Renata Hesse of the department’s Antitrust Division. “As originally proposed, this deal would have violated that core principle – creating a cozy relationship among competitors.”
Section 8 of the Clayton Act was enacted to provide a bright line rule prohibiting interlocking directorates which could otherwise facilitate coordination among competitors. Section 8 serves a prophylactic purpose “to nip in the bud incipient violations of the antitrust laws by removing the opportunity or temptation to such violations through interlocking directorates,” according to United States v. Sears, Roebuck & Co., 111 F. Supp. 614, 616 (S.D.N.Y. 1953).
During the investigation, the division cooperated with the United Kingdom’s Competition and Markets Authority, the Australian Competition and Consumer Commission and the Competition Commission of Singapore.
Tullett Prebon, a publicly-held British corporation headquartered in London, United Kingdom, and operating in the United States, is a leading provider of voice, hybrid and purely electronic brokerage services across asset classes. Tullett Prebon reported 2015 annual revenues of $1.18 billion.
ICAP is also headquartered in London and operates in the United States. After the transaction, the company will be called NEX Group Ltd. and will focus on providing electronic trading platforms for numerous asset classes and associated market data and services. ICAP reported annual revenues of $1.78 billion for its fiscal year ending March 2016.
Troy Resident Sentenced for Marriage FraudRead the Press Release
ALBANY, NEW YORK – Mary Opoka, age 56, of Troy, New York, was sentenced today to 3 years of probation following a jury conviction for marriage fraud.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
The sentence was issued by Senior United States District Court Judge Thomas J. McAvoy and followed a one-week trial in November 2015. As part of the sentence, Opoka must also complete 150 hours of community service.
The evidence at trial established that in October 2011, Opoka, a U.S. citizen, married Gaurav Mehta, in Troy. At the time Gaurav Mehta was an alien unlawfully present in the United States. The fraudulent marriage was designed to enable Gaurav Mehta to stay in the United States as a spouse of a U.S citizen.
Opoka was tried and found guilty along with Gaurav Mehta, age 36, and Isha Mehta, also known as Isha Kamboj, also known as Isha Johnson, age 33. The Mehtas are citizens of India. Yesterday, Judge McAvoy sentenced each of them to 3 years of probation and payment of a $2,000 fine, following their jury convictions for marriage fraud and immigration fraud.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Troy Man Indicted for Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBANY, NEW YORK – Gregory L. Clark, age 26, of Troy, New York, was indicted yesterday for being a felon in possession of a firearm and ammunition.
The announcement was made by U.S. Attorney Richard S. Hartunian, Troy Police Chief John F. Tedesco, and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
Clark is charged with possessing a loaded Ruger .357 caliber revolver. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
If convicted, Clark faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Clark has been in custody since April 2, 2016. On that day, according to a criminal complaint, Troy Police officers responding to a report of a man with a gun found Clark hiding in a closet in an apartment in the Lansingburgh section of Troy. They also found the loaded Ruger revolver in the closet.
This case is being investigated by the Troy Police Department and ATF, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Transient with Multiple Felonies Charged with Unlawful Possession of RifleRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that a Malcolm Tanner, 52, of Burlington, Vermont has been charged by a criminal complaint with possessing a .22 caliber semi-automatic rifle after having been convicted of multiple felonies. Tanner appeared before United States Magistrate Judge John M. Conroy yesterday, and was detained pending a detention hearing on July 15, 2016.
According to the affidavit filed with the complaint, Burlington Police officers had numerous involvements with Tanner dating back to June 2016, after Burlington residents reported a disorderly man with a rifle. Special agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), through coordination with the New Hampshire Department of Public Safety, determined that Tanner had been convicted of four felonies in the State of New Hampshire. On July 13, 2016, ATF special agents observed Tanner on Riverside Avenue in Burlington, riding a bicycle with what appeared to be a rifle on his back. The ATF agents stopped Tanner to examine the rifle, and determined the weapon to be a Sears Roebuck and Co. .22 caliber semi-automatic rifle, loaded with seven rounds of ammunition in its magazine.
If convicted, Tanner faces a maximum of ten years of imprisonment and a $250,000 fine. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines.
The United States Attorney emphasizes that the charge in the complaint is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
United States Attorney Eric S. Miller commended the investigative efforts of ATF and the support received from the Burlington Police Department.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan Ophardt. Tanner is represented by the Office of the Federal Public Defender for the District of Vermont.
Three Members of Grant County Methamphetamine Trafficking Ring Plead Guilty to Federal ChargesRead the Press Release
ALBUQUERQUE – Three members of a Grant County methamphetamine trafficking ring, including the ringleader, pled guilty late yesterday afternoon to methamphetamine trafficking charges. The three were part of a group of 12 defendants who were indicted in April 2015, as the result of an investigation that began in March 2014, and targeted a drug trafficking organization led by Daniel Lee Jacquez, 34, of Silver City, N.M., that distributed methamphetamine in Grant County, N.M. Three other defendants previously entered guilty pleas in this case.
The 12 defendants were charged in a 34-count indictment with participating in a drug trafficking conspiracy and committing a series of substantive drug trafficking offenses and a firearms offense. The conspiracy count charged all 12 defendants with conspiring to distribute methamphetamine in Grant County from March 2014 through April 2015. Eight counts charged certain defendants with distributing or possessing with intent to distribute methamphetamine, 24 counts charge certain defendants with using communications devices (telephones) to facilitate drug trafficking crimes, and one charged a defendant with being a felon in possession of a firearm.
During yesterday’s proceedings, Jacquez pled guilty to a felony information charging him with participating in a methamphetamine trafficking conspiracy. In entering the guilty plea, Jacquez admitted that from March 2014 through April 2015, he and his co-defendants distributed five to 15 kilograms of methamphetamine in Grant County. Jacquez also admitted that law enforcement agents discovered numerous firearms and ammunition in his residence when they executed a search warrant on April 30, 2015. Under the terms of his plea agreement, the lead defendant, Jacquez will be sentenced to 108 months in prison followed by a term of supervised release to be determined by the court.
Gary Lee Romero, 31, of Santa Clara, N.M., also pled guilty yesterday to a felony information charging him with participating in a methamphetamine trafficking conspiracy, and admitted working with his co-defendants to distribute approximately 500 grams to 1.5 kilograms of methamphetamine in Silver City between March 2015 and April 2015. At sentencing, Romero faces a statutory minimum of five years and a maximum of 40 years in prison.
Freddy J. Lucero, 47, of Silver City, also pled guilty yesterday to a felony information charging him with a methamphetamine trafficking conspiracy. At sentencing, Lucero faces a maximum penalty of 20 years in federal prison.
Three other defendants previously have entered guilty pleas in this case. Bernice Holguin Miranda, 50, of Silver City, pled guilty on Sept. 16, 2015, and Lynette Medina, 42, of Silver City, pled guilty on Nov. 19, 2015, to conspiracy charges and to using communication devices to facilitate a drug trafficking crime. At sentencing, Miranda and Medina each face a statutory minimum of five years and a maximum of 40 years in prison. Judah Grande Mondello, 31, of Arenas Valley, N.M., pled guilty on May 25, 2016, to a conspiracy charge, two counts of distributing methamphetamine, and to using a communication device to facilitate a drug trafficking crime. At sentencing, Mondello faces a statutory minimum of ten years and a maximum of life in federal prison.
Sentencing hearings for the six defendants who have entered guilty plea have yet to be scheduled.
The remaining six defendants have entered not guilty pleas to the indictment and are pending trial. Charges in indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The case was investigated by the Las Cruces offices of the DEA, HSI and FBI with assistance from the U.S. Marshals Service and the New Mexico State Police. Assistant U.S. Attorney Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office is prosecuting this case.
The investigation leading to the filing of charges in this case was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Texas Felon Sentenced to Ten Years for Unlawfully Possessing Firearms and Ammunition in New MexicoRead the Press Release
ALBUQUERQUE – Dylan Henry Ritter, 36, of Gardendale, Texas, was sentenced today in federal court in Albuquerque, N.M., to 120 months in prison followed by three years of supervised release for violating the federal firearms laws. The sentence was announced by U.S. Attorney Damon P. Martinez, U.S. Marshal Conrad E. Candelaria, and Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Ritter was arrested on Oct. 7, 2014, on a criminal complaint charging him with being a felon in possession of firearms and ammunition on Sept. 19, 2014, in Bernalillo County, N.M. According to the complaint, Ritter was traveling through New Mexico after absconding from the jurisdiction of a Texas state court to avoid a sentencing hearing when he was arrested by the U.S. Marshals Service. Deputy U.S. Marshals seized numerous firearms and rounds of ammunition when they searched Ritter’s hotel room and travel trailer following his arrest.
Ritter was indicted on Nov. 5, 2014, and charged with being a felon in possession of firearms and ammunition. According to the indictment, Ritter was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses including first degree burglary, attempted robbery, attempted theft by receiving stolen property, aggravated assault, felon in possession of firearm, possession of a dangerous weapon, burglary and attempted theft of a rental vehicle. Ritter pled guilty to the indictment on April 8, 2016, without the benefit of a plea agreement.
This case was investigated by the Albuquerque offices of the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Presiliano Torrez prosecuted the case.
Ten Alleged Members of Sunland Park Heroin Trafficking Ring Facing Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Ten individuals are facing heroin trafficking charges as the result of a DEA-led investigation targeting a heroin trafficking ring operating out of Sunland Park, N.M. The eight-month investigation concluded this morning after nine of the ten defendants had been arrested. U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, and Chief Jaime Reyes of the Sunland Park Police Department announced the results of the investigation.
The investigation targeted a heroin trafficking organization allegedly led by Raymundo Muñoz, 67, of Sunland Park, N.M., that allegedly obtained its heroin from Juan Francisco Rivera, 60, of El Paso, Tex. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
In announcing the charges, U.S. Attorney Damon P. Martinez said, “At a time when communities throughout New Mexico are suffering the devastating impact of a heroin and opioid epidemic that is ravaging our nation, the law enforcement community has to prioritize targeting drug trafficking organizations that are feeding this epidemic. As part of the New Mexico HOPE Initiative, DEA has answered the call and is working with law enforcement agencies throughout the state to dismantle these drug trafficking organizations. The U.S. Attorney’s Office is doing its part by aggressively prosecuting these organizations.”
“Last year over 44,000 people died in the United States as a result of a drug overdose, many of those as a result of heroin and opioid abuse,” said DEA Special Agent in Charge Will R. Glaspy. “The DEA and our law enforcement partners are committed to targeting those criminal organizations that are smuggling and distributing this poison and thus fueling this national epidemic.”
“The charges announced today are the result of great teamwork between the Sunland Police Department, DEA, the U.S. Attorney’s Office and several other agencies,” said Chief Jaime Reyes of the Sunland Park Police Department. “I am proud of the work that the men and women of the Sunland Police Department do every day to make our community a safer place for families to live and thrive.”
The ten alleged members of the heroin trafficking ring are charged in a 30-count indictment with participation in a heroin trafficking conspiracy and a series of substantive heroin trafficking offenses. The conspiracy charge alleges that all ten defendants conspired to distribute heroin in Doña Ana County and elsewhere between May 8, 2016 and July 12, 2016. It also includes 23 counts charging certain defendants with distributing heroin or possessing heroin with intent to distribute and six counts charging certain defendants with using communications devices (telephones) to facilitate heroin trafficking crimes.
According to the indictment, Rivera routinely supplied Muñoz with heroin, in quantities ranging from two to nine ounces, which was smuggled by couriers into the United States across the international border in El Paso. The indictment alleges that Muñoz took the heroin to his Sunland Park residence where he distributed the drugs to others. Members of the conspiracy allegedly used telephones to negotiate their heroin deals, arrange for heroin deliveries, and pay for the heroin.
Three of the defendants charged in the indictment, Muñoz, Rivera and Blanca Elisa Tovar, 41, of El Paso, were arrested on July 11, 2016, on a criminal complaint charging them with participating in a heroin trafficking conspiracy. The complaint alleges that the DEA arrested the trio after Tovar crossed the international border into El Paso and was driven by Rivera to a meeting with Muñoz. According to the criminal complaint, DEA seized 7.2 ounces of heroin from the vehicle in which Rivera and Tovar were traveling and a large amount of cash from Muñoz. Thereafter the DEA executed a search warrant at Muñoz’s residence in Sunland Park and seized another five ounces of heroin, $45,000 in cash and a firearm. Muñoz, Rivera and Tovar made their initial appearances on the criminal complaint in federal court in Las Cruces on July 13, 2016, and remain in federal custody pending preliminary hearings and detention hearings scheduled for July 18, 2016.
This morning, six more of the defendants were arrested on the charges in the indictment during an early morning arrest operation. The nine defendants who have been arrested will make their initial appearances on the indictment in federal court in Las Cruces on July 15, 2016. One defendant has yet to be arrested and is considered a fugitive.
During the course of the investigation, DEA agents and task force officers seized approximately a pound of heroin, more than $53,000 in cash and three firearms. These seizures include the heroin, cash and firearm seized on July 11, 2016.
The Las Cruces office of the DEA and Sunland Police Department investigated these cases with assistance from the El Paso office of the FBI, the U.S. Border Patrol, and the Gang Unit of the El Paso Police Department. In addition, the U.S. Marshals Service and the Doña Ana County Sheriff’s Office participated in today’s law enforcement operation. Assistant U.S. Attorneys Dustin C. Segovia and Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office are prosecuting these cases 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.
Indictment in United States v. Muñoz, et al., 16-CR-3043-RB
Summary of the Charges
Count 1 of the Indictment charges all ten defendants with participating in a conspiracy to distribute heroin. The defendants face the following statutory maximum penalties if convicted on this count: Muñoz and Rivera each face imprisonment for not less than ten years or more than life and a $10,000,000.00 fine; Sanchez and Delgadillo each face imprisonment for not less than five years or more than 40 years and a $5,000,000.00 fine; and the remaining defendants each face imprisonment for up to 20 years and a fine of up to $1,000,000.00.
Counts 2, 6, 17-18 and 22-23 charge certain defendants with using communications devices (telephones) to facilitate drug trafficking crimes. The statutory maximum penalty for a conviction on each of these counts is imprisonment for not more than four years and a $250,000.00 fine.
Counts 3, 5, 8, 10, 12-13, 19, 21, 24 and 26-30 charge certain defendants with possessing 100 grams and more of heroin with intent to distribute. The statutory maximum penalty for a conviction on each of these counts is imprisonment for a mandatory minimum five years and a maximum of 40 years and a $5,000,000.00 fine.
Counts 4, 7, 9, 11, 14-16, 20 and 25 charge certain defendants with distributing heroin or possessing heroin with intent to distribute. The statutory maximum penalty for a conviction on each of these counts is imprisonment for not more than 20 years and a $1,000,000.00 fine.
Charges Against Defendants
Raymundo Muñoz, 47, of Sunland Park, N.M., is charged in Counts 1, 3-21 and 24-30 of the indictment. Muñoz was arrested on July 11, 2016.
Juan Francisco Rivera, 60, of El Paso, Tex., is charged in Counts 1, 3, 5, 8, 10, 12-16, 19, 21 and 24-30 of the indictment. Rivera was arrested on July 11, 2016.
Eleodoro Sanchez, 61, of Canutillo, Tex., is charged in Counts 1, 4, 9 and 11 of the indictment. Sanchez was arrested today.
Salvador Delgadillo, 37, of El Paso, Tex., is charged in Count 1 of the indictment. Delgadillo was arrested today.
Carlos Diaz, 36, of El Paso, Tex., is charged in Count 1 of the indictment. Diaz was arrested today.
Morhiama Abigail Avila, 28, a U.S. citizen who resides in Juarez, Chihuahua, Mexico, is charged in Counts 1, 3, 5, 8, 10, 12 and 13 of the indictment. Avila has yet to be arrested and is considered a fugitive. A photograph of Avila is attached to this press release. Individuals with information about Avila’s whereabouts are asked to contact the DEA at (915) 892-4613.
Sandra Francis Guzman, 52, of El Paso, Tex., is charged in Counts 1, 14-16, 19, 21 and 24-26 of the indictment. Guzman was arrested today.
Blanca Elisa Tovar, 41 of El Paso, Tex., is charged in Counts 1 and 27-30 of the indictment. Tovar was arrested on July 11, 2016.
Alberto Lozano-Morales, 43, of Sunland Park, N.M., is charged in Counts 1, 2, 6, 7 and 18 of the indictment. Lozano-Morales was arrested today.
Armando Daniel Marquez, 53, Sunland Park, N.M., is charged in Counts 1, 18-19 and 22-23 of the indictment. Marquez was arrested today.
Criminal Complaint United States v. Muñoz, et al., 16-MJ-2891-LAM
The criminal complaint charges Muñoz, Rivera and Tovar with participating in a heroin trafficking conspiracy on July 11, 2016. If convicted, each defendant faces a statutory maximum penalty of imprisonment for a mandatory minimum five years and a maximum of 40 years and a $5,000,000 fine.
Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
Munoz Complaint Munoz Indictment
Tahlequah Woman Sentenced to 48 Months Probation for Use of Communication Device in Furtherance of Drug TraffickingRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that BRITTANI M. ROSS, age 26, of Tahlequah, Oklahoma, was sentenced to 4 years probation for USE OF A COMMUNICATION DEVICE IN FURTHERANCE OF DRUG TRAFFICKING, in violation of Title 21, United States Code, Section 843(b).
The charges arose from an investigation by the Tulsa County Sheriff’s Department, Tahlequah Police Department and the Drug Enforcement Administration.
The Information alleged that on or about April 1, 2015, within the Eastern District of Oklahoma, the defendant, BRITTANI M. ROSS, knowingly, intentionally, and unlawfully used a communication facility, that is: a telephone (cellular or otherwise) in committing, causing, and facilitating acts constituting a felony under Title 21, United States Code, Section 846, in that the Defendant used a telephone to discuss various matters concerning Drug Conspiracy.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.
Assistant United States Attorney Shannon Henson represented the United States.