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26 August 2016
Mexican National pleads guilty to immigration crimeRead the Press Release
CHARLESTON, W.Va. – A Mexican national pleaded guilty today to an immigration crime, announced United States Attorney Carol Casto. Edilberto Sanchez-Galvan, 35, entered his guilty plea to illegally reentering the United States.
Sanchez-Galvan admitted that he had previously been convicted of the federal crime of illegally reentering the United States in February 2010. After that conviction, Sanchez-Galvan was deported from the United States to his home country of Mexico. Sanchez-Galvan then illegally reentered the United States and he was found in South Charleston by Department of Homeland Security agents on May 17, 2016.
Sanchez-Galvan faces up to 10 years in federal prison when he is sentenced in October 2016. He is also subject to deportation proceedings at the conclusion of the case.
The investigation was conducted by the Department of Homeland Security. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
Medical Device Company CEO Pleads Guilty to Tax EvasionRead the Press Release
SACRAMENTO, Calif. — Briant Benson, 59, of El Dorado Hills, pleaded guilty today to tax evasion, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, during the years 2004 through 2006, Benson failed to file tax returns or pay any personal income tax to the Internal Revenue Service, despite receiving at least $2 million dollars in income as the President and CEO of multiple medical device companies. Further, Benson used corporate funds to support his lavish lifestyle. He used corporate funds to purchase multimillion dollar homes, buy hundreds of thousands of dollars in jewelry and furniture, and pay for lavish travel accommodations such as luxury hotels, private jets, and limousines. Benson also used corporate funds to pay over half a million dollars in gambling debt. Nevertheless, when confronted by IRS officers, Benson denied using corporate funds for his personal use.
Benson’s failure to report his personal income and pay taxes due and owing on that income resulted in a tax loss of at least $249,000.
“In today’s economic environment, it is more important than ever that the American people feel that everyone is playing by the rules and paying the taxes they owe,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Mr. Benson concealed his true income from the IRS and rather than paying his taxes, he paid for multimillion dollar homes, private jets, limousines and luxury hotel stays. The prosecution of individuals who intentionally conceal income and evade taxes is vital in maintaining public confidence in our tax system.”
This case is the product of an investigation by the IRS Criminal Investigation. Assistant United States Attorneys Matthew D. Segal and Amy Schuller Hitchcock are prosecuting the case.
Benson is scheduled for sentencing on December 2, 2016, by U.S. District Judge Garland E. Burrell Jr. Benson faces a maximum statutory sentence of five years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Man Pleads Guilty in $35 Million Penny Stock Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – One of the members of a penny stock fraud conspiracy that defrauded investors of over $35 million, has pleaded guilty to felony securities fraud charges, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Jeffrey Turino, 60, pleaded guilty on Monday, Aug. 22, to one count of conspiracy to commit securities fraud. He faces up to 25 years in prison and a fine of up to $250,000, and is scheduled to be sentenced on Nov. 28, at 11 a.m. by U.S. District Judge Jennifer A. Dorsey. Turino, who is currently in custody, has requested to be released pending sentencing, and a hearing on the matter is scheduled for this afternoon at 2:30 p.m.
According to the plea agreement, beginning in about 1997 and continuing until about March 2010, Turino conspired with others to fraudulently issue, offer and sell stock issued by corporate shells which they controlled, including World Wide Cannery and Distribution, Global Diamond Exchange, Inc., Equitable Mining Corporation, ODMA Oil and Gas, Inc. and Grand Entertainment and Music, Inc. Turino and the other conspirators engaged in deceptive practices and issued misleading press releases to promote these companies and to give the impression that they were actively engaged in the importation and sale of products, when in truth, the companies were hollow shells that did not engage in regular or substantial business activities, did not produce any goods, services, or profits, and did not commercially import products as promoted in their news releases. Turino and other members of the conspiracy fraudulently induced investors to purchase billions of unregistered shares of stock in the companies, which the conspirators had deceptively issued without requisite restrictions and disclosures. Although these penny stocks typically traded for less than one cent per share, the billions of shares of stock that the conspirators offered and sold in the public market yielded proceeds of more than $35 million, which was divided and distributed among Turino and the other conspirators.
Ten co-conspirators were originally charged in the case. Four are scheduled for trial beginning Nov. 15. Two pleaded guilty and are awaiting sentencing, one is a fugitive, and two more are deceased.
KNOWDOPE Documentary Showing Sunday at Birmingham Sidewalk Film FestivalRead the Press Release
BIRMINGHAM – A documentary short following two lives in Alabama altered by heroin addiction will screen Sunday during the Birmingham Sidewalk Film Festival, announced U.S. Attorney Joyce White Vance.
Students at the University of Alabama at Birmingham, working with UAB Digital Media Director Rosie O’Beirne, produced KNOWDOPE: The Documentary last year as part of a series of public service announcements and the establishment of the larger KNOWDOPE campaign and website, www.knowdope.org. The U.S. Attorney’s Office, as part of the community Pills to Needles Initiative, contracted with UAB’s Digital Media Department to create content for the website that focused on raising awareness and prevention of opiate addiction. KNOWDOPE: The Documentary is a compelling look at one life lost and another irreparably altered by heroin addiction.
The UAB students who worked on the yearlong KNOWDOPE project won Best of Show in February in the student competition for the American Advertising Federation Birmingham Awards, or ADDYs. The students created the KNOWDOPE campaign name and logo, along with the 13-minute documentary and six brief video clip PSAs designed to be shown in area schools as part of drug awareness programs, or shared on social media. The documentary and PSAs, along with information and links to help educate and provide resources on drug abuse and addiction, all can be found on the website. It is critical for the community to understand the path from prescription opiate use and abuse to heroin addiction, and to focus on prevention and treatment opportunities, Vance said.
KNOWDOPE: The Documentary, will be shown Sunday at the Alabama School of Fine Arts’ Dorothy Jemison Day Theatre, 1800 Rev. Abraham Woods Jr. Boulevard, during Alabama Documentary Shorts, from 5:15 p.m. to 6:55 p.m. #KNOWDOPE buttons will be available.
The film’s directors are Matthew Henton and Sarah Buckalew. Run time is 13 minutes.
“Pills to Needles” is a collaborative initiative begun in 2014 to respond to the sharp spike in heroin deaths in northern Alabama. The initiative, originated thorough the U.S. Attorney’s Office for the Northern District of Alabama in conjunction with key partners including the UAB School of Public Health, the Jefferson County Department of Health and the Addiction Prevention Coalition. Its overarching goals are to create a comprehensive and responsive community infrastructure to address this serious public health issue; develop strategies to reduce the ill-effects of heroin and prescription drug abuse; and give voice to those affected by heroin and prescription drug abuse.
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Ieshia Jones of Winooski Sentenced for Heroin DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Ieshia Jones, 27, of Winooski was sentenced today to time served, followed by a three-year term of supervised release. Chief Judge Christina Reiss further ordered that Jones be subject to a curfew with location monitoring for a term of six months.
According to court records, law enforcement conducted four controlled purchases totaling 117 bags of heroin from Jones in April and May 2014 in St. Albans, Winooski, and Burlington. During an attempted controlled buy of heroin from Jones on May 13, 2014 in South Burlington, Jones took the informant’s money and fled the area in her car without providing the heroin. Law enforcement located and arrested Jones shortly thereafter in Essex. Upon arrest, Jones admitted that she had distributed heroin to the informant and others in the past.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of United States Border Patrol, the Federal Bureau of Investigation, and the Winooski Police Department. Assistant U.S. Attorney Kevin J. Doyle handled the prosecution of this case. Jones was represented by Steven L. Barth of the Federal Defender’s Office.
Hot Springs Man Sentenced to Twenty Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Cedric Easter, age 30 of Hot Springs, was sentenced yesterday to 240 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to the plea agreement, during the month of April, 2014, agents with Homeland Security Investigations (HSI) and detectives from the 18th East Judicial Drug Task Force began investigating Easter for selling methamphetamine in the Western District of Arkansas. In June, 2014, officers executed a state search warrant at a residence in Hot Springs and recovered documents associated with Easter as well as a large amount of U.S. currency and a 9mm pistol.
Investigators were able to review numerous phone records which showed incriminating text messages between Easter and others dating back to March, 2014 wherein drug amounts were discussed.
Between July 30, 2014 and December 9, 2014, law enforcement made four controlled buys of methamphetamine from Easter. Subsequent to the last controlled buy, agents executed a search warrant at Easter’s residence where he was located and arrested. During the search, agents located and seized marijuana, a 9mm pistol, and $5,560 in U.S. currency. Agents also executed a search warrant at Easter’s neighbor’s residence due to information that Easter was keeping drugs at that residence. Agents discovered approximately four ounces of methamphetamine and $9,000 in U.S. currency.
During a post-Miranda statement, Easter admitted to selling methamphetamine in the Hot Springs area with others and admitted that the drugs and money found at the neighbor’s residence were his. He also admitted that he knew about the two firearms seized during the investigation. The suspected substances obtained were sent to the Arkansas State Crime Lab where they tested positive for methamphetamine.
Easter was indicted by a federal grand jury on November 19, 2014 and pleaded guilty on July 31, 2015.
“Removing drugs and weapons from our communities makes them safer and will remain one of our top priorities”, said Special Agent in Charge of HSI New Orleans Raymond R. Parmer, Jr. “Together with our law enforcement partners we will continue to target these criminal elements.
This case was investigated by Homeland Security Investigations and the 18th East Judicial Drug Task Force. Assistant United States Attorney David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Herion Trafficker Sentenced to PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the results of another federal prosecution relating to a multi-state heroin trafficking ring. On August 24, 2016, Chief U.S. District Judge Brian A. Jackson sentenced DARYL WALKER, age 42, of Baton Rouge, Louisiana, to serve 5 years in prison, followed by 4 years of supervised release. WALKER was also ordered to forfeit $72,000 in drug-trafficking-related proceeds. On March 29, 2016, WALKER pled guilty to possession with intent to distribute heroin, in violation of Title 18, United States Code, Section 841, and possession of an illegal firearm, in violation of Title 26, United States Code, Section 5861.
U.S. Attorney Green stated: “My office, together with our federal, state, and local partners, will continue our work to eliminate to eliminate drug trafficking and possession of illegal firearms. In particular, our collaborative law effort has stayed the course in pursuing heroin traffickers who are directly responsible for the significant harmful effects on our community resulting from such distribution. I note that the heroin-trafficking ring, of which Walker was a willing participant, not only exposed the community to the horrific effects of heroin, but also the significant risk associated with disguising heroin as a prescription medication – a practice that has already been identified as resulting in greatly increased overdose deaths throughout the nation. I sincerely appreciate the hardworking team of federal, state, and local law enforcement agencies that allowed for the successful identification, arrest, and conviction of this heroin dealer.”
“The abuse of heroin and prescription drugs is a serious problem in our communities. All too often, this abuse leads to addiction, shattered lives, and even death. For the health and safety of our citizens, DEA and our law enforcement partners will continue to target those who illegally obtain and distribute these potentially dangerous drugs. This sentencing confirms that we will stand firmly to ensure that criminals who peddle in these poisons and wreak havoc in our communities will never escape from facing the consequences of their criminal activities,” said DEA Assistant Special Agent in Charge Brad L. Byerley.
This matter was investigated by the U.S. Drug Enforcement Administration’s Tactical Diversion Squad in the Baton Rouge Office and the Internal Revenue Service - Criminal Investigation Division, with assistance from the Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, Iberville Parish Sheriff’s Office, and Baton Rouge Police Department. The case was prosecuted by Assistant United States Attorney Paul L. Pugliese.
Gulfport Resident Sentenced to Prison for Aggravated Identity TheftRead the Press Release
Gulfport, Miss – Gregorio Medina, a/k/a Gregorio Villanueva-Medina, 36, was sentenced by Chief U.S. District Judge Louis Guirola to two years in federal prison followed by one year of supervised release for aggravated identity theft, U. S. Attorney Gregory K. Davis announced today. Medina was also ordered to pay a $5,000 fine.
Medina, a resident of Gulfport and native of Honduras, was working at the Gulfport Shipyard using a stolen identity. The fraud was discovered when the victim, a resident of West Virginia, received a notice from IRS that he owed back taxes for his work at the shipyard. Medina began working at the shipyard in 2014 earning $48,610 and $64,805 in 2015. He used the victim’s identity and claimed to be a U.S. citizen to obtain the job.
This case was investigated by Gulfport Police Department and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Annette Williams.Former Greenwich Resident Pleads Guilty to Stealing More Than $700K in Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DEBRA BIAGI, 50, of Fogelsville, Pa., formerly of Greenwich, waived her right to indictment and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of wire fraud stemming from her theft of more than $700,000 from her employer and related companies and individuals.
According to court documents and statements made in court, BIAGI was employed by HB Nitkin Group of Greenwich, Connecticut, a privately owned business engaged in real estate management and development. BIAGI served as an assistant to the chairman of the company with responsibilities that included managing the accounts payable for the company.
From approximately February 2014 to December 2015, BIAGI defrauded the company, as well as key company individuals and members of their families who retained financial and banking information at the company. As part of the scheme, BIAGI created fraudulent invoices made out to fictitious companies detailing charges for items such as masonry, carpentry, electrical and plumbing work. She then used victims’ checkbooks to make checks out to the fictitious companies, purportedly to pay the fraudulent invoices. BIAGI then deposited the checks into her personal bank account, at times endorsing the check with an illegible signature to hide her misconduct, and subsequently withdrew the monies for her personal use.
To keep track of which invoices were fictitious and which checks were made to fictitious companies, BIAGI often included her initials “DB” in the fabricated company name listed on the invoice and check. BIAGI then noted the fictitious company as the payee in the relevant accounting records at the company and filed the fabricated invoices as business record. BIAGI also, as needed, misappropriated the signature stamp of the company’s chairman and used it to “sign” the misappropriated checks and to falsely suggest that the paid expenditure was both legitimate and authorized.
In addition, at different times during the scheme, BIAGI simply stole checks from employees of the company and either made the checks to cash, or endorsed to cash checks that already listed a payee.
In total, BIAGI stole $711,074.39 during the course of this scheme.
Judge Meyer scheduled sentencing for November 21, 2016, at which time BIAGI faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Federal Bureau of Investigation and Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Federal Court Bars Two Fraudulent Tax Return PreparersRead the Press Release
A federal court in Charleston, South Carolina, has permanently barred two women from preparing federal tax returns for others, the Justice Department announced.
According to a civil complaint filed by the United States, Latasha Failey and her sister Latoya Windham prepared federal income returns in North Charleston from 2009 to 2012. They continually and repeatedly prepared income tax returns that claimed false deductions or credits in order to understate their customers’ tax liabilities, the complaint alleged. The defendants falsely claimed education credits; child and dependent care credits; itemized deductions on Schedule A; and dependency exemptions, according to the complaint. In 2013, Failey and Windham each pleaded guilty to two counts of aiding and assisting in the preparation and presentation of a false income tax return and were sentenced to prison and probation, respectively, the complaint states.
The court’s order also requires Failey and Windham to give the United States a list of all of their return preparation customers since Jan. 1, 2013.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) 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.
Federal Court Bars Two Fraudulent Tax Return PreparersRead the Press Release
Contact: Office of Public Affairs (202) 514-2007
Washington—A federal court in Charleston, South Carolina, has permanently barred two women from preparing federal tax returns for others, the Justice Department announced.
According to a civil complaint filed by the United States, Latasha Failey and her sister Latoya Windham prepared federal income returns in North Charleston from 2009 to 2012. They continually and repeatedly prepared income tax returns that claimed false deductions or credits in order to understate their customers’ tax liabilities, the complaint alleged. The defendants falsely claimed education credits; child and dependent care credits; itemized deductions on Schedule A; and dependency exemptions, according to the complaint. In 2013, Failey and Windham each pleaded guilty to two counts of aiding and assisting in the preparation and presentation of a false income tax return and were sentenced to prison and probation, respectively, the complaint states.
The court’s order also requires Failey and Windham to give the United States a list of all of their return preparation customers since Jan. 1, 2013.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) 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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DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Federal Authorities Charge 33 People with Crimes Against the U.S. Postal Service, including Theft of Mail by EmployeesRead the Press Release
LOS ANGELES – Thirty-three defendants were charged as part of a sweep targeting criminal activity that has victimized the United States Postal Service (USPS) and its customers. Most of the defendants charged as part of the sweep are USPS employees who allegedly stole mail, embezzled from the agency or, in one case, failed to deliver nearly 50,000 pieces of mail.
Arrest warrants were issued for 6 of the 33 defendants, who were recently charged as a result of investigations by the USPS’s Office of Inspector General. Most of the defendants were charged in indictments that were returned by federal grand juries on Wednesday and Thursday this week.
The 33 defendants are charged across 28 cases, about half of which allege mail theft and/or possession of stolen mail by USPS employees and contractors. Other cases charge USPS employees with conspiracy, embezzlement, bank fraud, and false statements. Five of the cases allege crimes by non-employees, including mail theft and fraud related to the use of credit cards that had been stolen from the mail.
In one case announced today, the former local area president of the Mail Handlers Union was charged with conspiracy and possession of stolen mail. Jarol Garcia, 33, of Hemet, who formerly worked at the Moreno Valley Delivery Distribution Center as a mail handler, stole mobile phones from parcels going through the center and traded the phones after offering them for exchange on a website, according to an indictment, which also alleges that Garcia, in December 2015, possessed at least 166 mobile phones stolen from the mail.
Another case charges a mail carrier from the Mid-City District of Los Angeles with conspiracy to commit access device (credit card) fraud and to steal mail. The indictment alleges that Norman A. Muschamp, 48, was part of a conspiracy to use information belonging to identity theft victims to order pre-paid PayPal debit cards that were sent to primarily non-existent addresses on his mail route. Muschamp allegedly participated in the scheme by obtaining the PayPal debit cards from the mail and delivering them to co-conspirators in exchange for cash. Investigators who are continuing to investigate the overall scheme believe it caused hundreds of thousands of dollars in losses.
In another case, a postal carrier from the Sawtelle District of Los Angeles was charged with delaying the mail by effectively hoarding the mail she was entrusted to deliver. Sherry Naomi Watanabe, 48, was found to have more than 48,000 pieces of mail in her residence, according to a plea agreement, that was supposed to be delivered to mail customers on her route in Placentia.
“The mail system plays an important role in our country's commerce and social communication. Maintaining its integrity is vital,” said United States Attorney Eileen M. Decker. “Mail theft across Southern California has increased recently, which is significant since this type of crime tends to be a precursor to other crimes like identity theft and drug offenses. As a result, we are stepping up enforcement activities, including dealing aggressively with corruption within the Postal Service.”
“The overwhelming majority of Postal Service employees are honest and dedicated public servants who are worthy of our trust. However, when employees engage in criminal activity, our agency will aggressively investigate these matters to protect the overall integrity of the Postal Service,” said U.S. Postal Service Office of Inspector General Special Agent in Charge Brian Washington.
Other cases filed as part of the sweep include the following:
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Vince Johnson, 30, of Carson, who worked for a USPS contractor, was charged with possession of stolen mail;
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Jose Hernandez, 35, of Long Beach, who worked for a USPS contractor, was charged with mail theft;
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Tamika Deloach, 38, of Wilmington, a mail carrier, was charged with possessing stolen mail related to checks she allegedly stole from the mail and deposited into her credit union account;
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Charell Watson, 32, of West Covina, formerly a mail processing clerk, was charged with theft of mail by a postal employee;
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Nicole Elwood, 45, of Atascadero, was charged with theft of mail by a postal employee for allegedly stealing mail items containing medications, including medications sent from the U.S. Department of Veterans Affairs to veterans;
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Kayla Young, 23, of Diamond Bar, was charged with mail theft by a postal employee;
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Michael Smith, 43, of Lake Elsinore, was charged with mail theft by a postal employee for allegedly stealing money orders from a mail envelope;
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Justin Brewster, 25, of Lake Elsinore, a USPS mail processing clerk, was charged with mail theft by a postal employee for allegedly stealing video games that were mailed to or from Gamefly;
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Christian Wesley Johnson, 27, of Los Angeles (90044), a postal clerk, was charged with mail theft by a postal employee for stealing mobile phones, which, according to his plea agreement, were valued at approximately $15,000; and
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Deion Deshazier, 27, a former mail carrier, of Hawthorne, was charged with dumping and delaying mail;
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Betty Owens, 73, of Oakland, a former mail handler, was charged with a misdemeanor offense of theft of government property (for fraudulent mileage reimbursements).
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Lisa Thornberry, 31, of Rancho Cucamonga, and Ian McCown, 34, of Alta Loma, were charged with conspiring with each other to steal mail and possessing stolen mail;
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Chelsea Green, 24, of Canoga Park, a former mail carrier, was charged with bank fraud for allegedly misusing a USPS-issued gas card and fraudulently using the PIN of another USPS employee to fuel her personal vehicle;
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James Freeman, 30, of Lakewood, a former mail carrier, was charged with bank fraud for allegedly misusing a USPS-issued gas card;
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Mary Williams, 60, of Los Angeles (90002), a former USPS sales associate, was charged with making a false entry in an official record related to her alleged embezzlement of funds from USPS;
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Victoria Uribe, 48, of Rancho Cucamonga, a former USPS sales associate, was charged with making a false entry in an official record related to her alleged embezzlement of funds from USPS;
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Lucy Plambeck, 66, of Paso Robles, a former USPS sales associate, was charged with making a false entry in an official record related to her alleged embezzlement of funds from USPS;
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Monica Cavalier, 40, of Victorville, a former sales associate, was charged with making a false entry in an official record related to the sale of stamps related to her alleged embezzlement of funds from USPS;
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Johnnie Macon, 34, of Los Angeles (90011), a former postal support employee, who was charged with embezzlement of postal funds and making a false entry in an official record related to the fraudulent voiding of postal money orders;
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Gary Nygard, 49, of Mission Hills, a former contract driver, was charged with conspiracy to steal government property by siphoning approximately 385 gallons of diesel fuel (paid for by USPS) from contractor trucks;
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Raymond Coffin, 24, of Adelanto, a mail carrier, was charged with bank fraud for allegedly misusing a USPS-issued gas card;
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Eugene Brown, 43, of Compton, was charged with making a false statement relating to his criminal history in his employment application to work for the USPS;
An indictment or criminal information contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Defendants charged as part of the sweep will be arraigned in the United States District Court in Los Angeles, Santa Ana, and Riverside.
The cases announced today were filed by Special Assistant United States Attorney Ashwin Janakiram of the General Crimes Section.
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Eagle Butte Woman Charged with Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for three counts of Distribution of a Controlled Substance.
Ree Amber Eagle Staff, age 34, was indicted on August 16, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 25, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, at least 3 years and up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on three different days in July of 2016, Eagle Staff knowingly and intentionally distributed methamphetamine, a Scheduled II controlled substance.
The charges are merely accusations and Eagle Staff is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Eagle Staff was released on bond pending trial. Trial has been set for October 18, 2016.
Eagle Butte Man Charged with Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Distribution of a Controlled Substance.
Tyson Curtis LeCompte, a/k/a Tyson Garreaux, age 22, was indicted on August 16, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 24, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on two different days in June of 2016, LeCompte knowingly and intentionally distributed methamphetamine, a Scheduled II controlled substance.
The charges are merely accusations and LeCompte is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
LeCompte was remanded to the custody of the U.S. Marshals Service pending trial. Trial has been set for October 18, 2016.
Drug Supplier to Massena Sentenced to 36 MonthsRead the Press Release
ALBANY, NEW YORK – Matik Jones, age 26, of Jersey City, New Jersey, was sentenced yesterday to serve 36 months in prison, to be followed by 3 years of supervised release, for intending to supply heroin and crack cocaine to the Massena area.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge for Immigration and Customs Enforcement, Homeland Security Investigations (HSI).
The sentence followed Jones’s November 24, 2015 guilty plea.
Senior U.S. District Judge Frederick J. Scullin, Jr. sentenced Jones exactly one year after Jones’s arrest following a traffic stop in Massena, in which Jones was found to possess approximately 103 grams of crack cocaine and 25 grams of heroin.
This case was investigated by HSI and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Detroit man sentenced for heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – James Leon Fisher, 29, of Detroit, Michigan was sentenced to 30 months in prison for heroin distribution, United States Attorney William J. Ihlenfeld, II, announced.
Fisher pled guilty in April 2016 to one count of “Distribution of Heroin.”
Assistant United States Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.
U.S. District Judge Irene M. Keeley presided.
Department of Justice Highlights Consumer Benefits of Competition Among Court ReportersRead the Press Release
Antitrust Division Urges California State Assembly to Consider Potential Anticompetitive Effects of Proposals to Ban or Limit Third-Party Court-Reporting Contracts
The Department of Justice’s Antitrust Division today submitted a statement on the potential anticompetitive effects of legislative proposals that could result in a ban or limitation on contracts between local California court reporters or service firms and third parties, such as insurance companies, for more than one deposition at a time, also known as third-party contracts. Such regulation of court-reporting services can raise barriers to entry, restrict competition and limit potentially cost-saving options available to consumers. Accordingly, the division recommended carefully weighing the potential competitive costs of any proposals to restrict competition in court-reporting services against any demonstrated risk these contracts could pose to the integrity of court reporting, and as a result, to the judicial process.
The division also noted that restrictions on the ability of court reports to enter third-party contracts should be imposed only where there is credible evidence of a significant risk of harm to the judicial process. Any restrictions should be narrowly tailored to address the harm and not discourage innovative contract terms to deliver court-reporting services for the benefit of consumers.
“Consumers benefit when a competitive marketplace presents them with a wider variety of services,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “When analyzing legislation that could result in a ban or limitation of third-party court-reporting contracts, the California State Legislature should consider a company’s ability to realize significant savings under a third-party court-reporting contract and pass savings on to its customers.”
The statement is in response to a request from California Assemblyman Scott Wilk. The request asked for views on potential legislative proposals that would subject out-of-state court reporter service provider firms to the jurisdiction of the California Court Reporters Board, which could have the effect of banning or limiting the use of multi-case third-party contracts.
Letter to Assemblyman Wilk
College Agrees to Pay $295,442 to Resolve Allegations of Improper Claims for Educational Benefit PaymentsRead the Press Release
HONOLULU -- Remington Colleges, Inc., an Arkansas non-profit corporation doing business as Remington College – Honolulu Campus ("Remington College"), will pay $295,442.00 to settle certain civil claims under the federal False Claims Act in an agreement signed on July 25, 2016.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that the United States had alleged that Remington College submitted false statements and false claims to obtain educational benefit payments from the United States Department of Veterans Affairs ("VA"). Between January 2010 and May 2011, Remington College submitted six false statements and claims in which it certified to the VA that five VA beneficiaries were enrolled as students in Massage Therapy, a VA-approved program, when in fact, the five VA beneficiaries were enrolled in Cosmetology, an unapproved program. While Remington College agreed to the settlement, it did not admit that the allegations were correct.
U.S. Attorney Nakakuni noted that under the federal False Claims Act, the United States can seek up to triple damages, plus penalties, for false and fraudulent claims for payment that are submitted to the federal government. She stated: "We will work tirelessly with our law enforcement partners in the VA’s Office of Inspector General ("VA-OIG") and the Federal Bureau of Investigation ("FBI") to combat fraud and protect the taxpayers’ money."
This civil investigation was conducted by the VA-OIG and the FBI. The case was handled by Assistant U.S. Attorney Rachel Moriyama.
Cleveland, Virginia Man Sentenced on Federal Firearms ChargesRead the Press Release
ABINGDON, VIRGINIA – A Russell County man, who was prohibited from possessing firearms due to previous criminal convictions, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon after previously pleading guilty to federal firearms charges, United States Attorney John P. Fishwick Jr. announced.
Roger Allen Combs, 51, of Cleveland, Virginia, previously pled guilty to one count of possession of an explosive device by a convicted felon, one count of possession of a firearm not registered on the National Firearms Registry and Transfer Record and one count of being a convicted felon illegally in possession of a firearm. Today in District Court, Combs was sentenced to 57 months in federal prison.
“The first crucial step in making our communities safer is getting illegal guns out of the hands of prohibited users and off the streets,” United States Attorney John P. Fishwick Jr. said today. “We will continue to work with our partners in law enforcement to find these illegal guns and get them off the streets.”
According to evidence presented at previous hearings by Russell County Commonwealth’s Attorney and Special Assistant United States Attorney Brian Patton, Combs, who has several prior criminal convictions, was observed by law enforcement coming in and out of a storage unit in Russell County with a bag. Law Enforcement officers executed a traffic stop on a vehicle Combs was traveling in and found a firearm. Based on that evidence, officers obtained a search warrant for the storage unit where they found several guns, parts of guns, ammunition and a blasting cap.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Russell County Sheriff’s Office and the Virginia State Police. Russell County Commonwealth’s Attorney and Special Assistant United States Attorney Brian Patton prosecuted the case for the United States.
Chicago Man Charged with Federal Weapons Violation for Allegedly Selling Handguns and Ammunition out of His HomeRead the Press Release
CHICAGO — A Chicago man was charged with a federal weapons violation for allegedly selling handguns and ammunition out of his home in the North Lawndale neighborhood.
JYMIL CAMPBELL, 29, sold three pistols, five magazines and ammunition out of his home in the 2100 block of South Millard Avenue, according to a criminal complaint filed in U.S. District Court in Chicago. One of the magazines was an extended-capacity magazine, the complaint states. Unbeknownst to Campbell, the buyer was working as a confidential informant for the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and had surreptitiously videotaped the transactions, according to the complaint.
Campbell was arrested yesterday in Chicago. The complaint charges him with one count of dealing firearms without a license. U.S. Magistrate Judge Mary M. Rowland ordered him detained during an initial appearance this morning in federal court. A detention hearing is scheduled for Aug. 30, 2016, at 10:30 a.m.
The complaint states that two of the alleged gun sales were held in March, while a third sale was completed in May. Per Campbell’s instructions, the informant paid a total of $2,300 for the weapons, the complaint states.
The complaint was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Jeffery Magee, Special Agent in Charge of the Chicago Field Division of the ATF.
The charge of dealing firearms without a license carries a maximum sentence of five years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Devlin N. Su.
Complaint
California Man Sentenced to 210 Months for Sexual Exploitation of a ChildRead the Press Release
TULSA, Okla.— A California man, with ties to Miami, Oklahoma, was sentenced today by United States District Judge Claire V. Eagan to serve 210 months in prison to be followed by seven years of supervised release for sexual exploitation of a child, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Matthew Thomas Chaffin, 32, pleaded guilty on May 16, 2016, after being indicted by a Grand Jury on January 8, 2015.
According to admissions made at the change of plea hearing, Chaffin, also known by his rap music alter-ego, “King Fobia,” coerced a six-year-old to perform sexual acts upon him in a hotel room in Miami, Oklahoma, and filmed the abuse with his cell phone. Chaffin’s crime was discovered after a resident of Northeastern Oklahoma later came across Chaffin’s abandoned cell phone and reported finding suspected child pornography on the phone to law enforcement.
United States Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) was the investigating agency. Assistant United States Attorneys Andrew J. Hofland and Jeffrey A. Gallant prosecuted the case.
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 U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
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Baton Rouge Man Sentenced to Lengthy Prison Term for Mailing Threatening Letters to Federal and State CourthousesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that BRIAN CAVALIER, age 34, of Baton Rouge, Louisiana, has been sentenced to serve ninety-two (92) months in federal prison, as a result of his convictions for making threats by mail, in violation of Title 18, United States Code, Section 844(e). Chief U.S. District Judge Brian A. Jackson ordered the sentence to run consecutive to criminal sentences that CAVALIER may also face as a result of unrelated criminal conduct charged in the 19th Judicial District Court in East Baton Rouge Parish and the 23rd Judicial District Court in Ascension Parish. Following his release from prison, CAVALIER will be also required to serve a 3-year term of supervised release.
CAVALIER previously admitted that on November 1, 2013, he mailed a threatening letter to the United States District Court for the Middle District of Louisiana in which he falsely and maliciously conveyed that a bomb had been planted in the federal courthouse and that the bomb was set to detonate within twenty-four (24) hours. CAVALIER had also placed a small amount of a white powdery substance inside the letter’s envelope, and the letter falsely stated that anyone who inhaled the powder would die a “painful death” within 24 hours. CAVALIER’S letter also falsely stated that there were “shooters” outside the federal courthouse and that anyone who attempted to exit the courthouse would be “shot to death.”
CAVALIER also admitted that approximately one month later, on or about December 2, 2013, he mailed a second threatening letter, this time to the 19th Judicial District Court in Baton Rouge, which also falsely and maliciously conveyed that a bomb had been planted in the state courthouse and that the bomb would soon detonate. The defendant also falsely represented that there were armed men with “high power guns” watching the building and that they would kill people inside the building, too. This second letter also contained a small amount of suspicious white powder, wrapped in plastic. At the time CAVALIER sent both letters, he was in state custody in the Avoyelles Detention Center, in Cottonport, Louisiana, on unrelated charges.
U.S. Attorney Green stated: “Today’s sentence should send a strong message that terroristic threats to the judiciary and others working in the criminal justice system will be dealt with severely. The defendant’s conduct had a direct impact on hard-working men and women in government who, in the fall of 2013, were just trying to do their jobs and serve the public. The defendant’s conduct also needlessly diverted first responders and other precious resources away from the legitimate needs of our community. I appreciate the hard work of the FBI, BRPD, EBRSO, and the Baton Rouge Fire Department, in bringing this defendant to justice, and I appreciate the work of all of the first responders who are called out to potentially-dangerous situations each and every day.”
This matter was investigated by the Federal Bureau of Investigation, working in close coordination with the Louisiana Department of Corrections, the Baton Rouge Fire Department, the East Baton Rouge Parish Sheriff’s Office, the Baton Rouge Police Department, the East Baton Rouge District Attorney’s Office, and other law enforcement agencies. The matter was prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division.
BGF Member Sentenced to Two Years in Federal Prison for Distributing Heroin While on Supervised ReleaseRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Kimberly McIntosh, age 47, of Baltimore today to two years in federal prison, followed by three years of supervised release, for possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; U.S. Marshal Johnny Hughes; and Chief William Henry of U.S. Probation.
On August 23, 2011, McIntosh pleaded guilty to participating in the affairs of a racketeering enterprise, specifically the Black Guerilla Family (BGF). As part of her plea, McIntosh admitted that one of the purposes of BGF was to support incarcerated members of the gang, either through smuggling contraband, or providing monetary support. She was sentenced to five years in prison, followed by three years of supervised release. On February 12, 2014, McIntosh was released from prison and began her term of supervised release.
According to her plea agreement, in June 2015, the Bureau of Prisons (BOP) Investigative Unit contacted McIntosh’s probation officer to report that she had sent over $4,000 to 36 different inmates, including several of the co-defendants from her BGF case. The continued contact with felons was a violation of the conditions of her supervised release and a warrant was issued for her arrest. Based on the information provided by BOP, law enforcement believed McIntosh was still involved in BGF and obtained a search warrant for her residence. On October 20, 2015, McIntosh was arrested as she left her residence and the search warrant was executed. Law enforcement recovered three bags containing a hard brown substance, later determined to be 11 grams of heroin, approximately 70 gelatin capsules of heroin packaged for street level sale, cutting agents and other drug paraphernalia, from McIntosh’s bedroom. In addition, law enforcement recovered hundreds of letters, photographs and correspondence between McIntosh and inmates at state and federal correctional facilities that were written or received by McIntosh during her period of supervised release.
United States Attorney Rod J. Rosenstein praised the DEA,U.S. Marshal Service and U.S. Probation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney James T. Wallner, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Assistant U.S. Attorney P.J. Meitl Named Prosecutor of the Year by Texas Narcotic Officers AssociationRead the Press Release
DALLAS — Assistant U.S. Attorney P.J. Meitl was named Prosecutor of the Year during the Texas Narcotic Officers Association (TNOA) 2016 Conference in Fort Worth, Texas, this week, announced U.S. Attorney John Parker of the Northern District of Texas.
TNOA President Tommy Hale presented the award to AUSA Meitl on Wednesday evening at the organization’s awards banquet. The TNOA, established in 1970, is dedicated to providing high quality training for law enforcement professionals. Its membership, not exclusive to narcotic officers, includes local, state and federal peace officers, reserve officers, prosecutors, law enforcement personal and other national and international associates.
“This award from the Texas Narcotic Officers Association is true recognition of P.J.’s dedication to making our communities safer by aggressively prosecuting drug trafficking, fraud, violent crime and public corruption cases,” said U.S. Attorney Parker. “His work ethic and drive on behalf of the United States are unparalleled; P.J. is indeed an exemplary representative of our office and the Department of Justice and truly deserving of this recognition. Thank you to the TNOA for the great work of its members in fighting crime and for recognizing AUSA Meitl.”
AUSA Meitl has been a federal prosecutor in the Criminal Division of the Dallas headquarters office of the Northern District of Texas since January 2013. AUSA Meitl received his undergraduate degree from the University of California in Santa Barbara in 2001. He obtained his law degree and Master of Business Administration from Georgetown University in May 2006. Prior to becoming an AUSA, he worked in private practice at a major law firm in Washington, D.C.
AUSA Meitl has a proven track record of working hand-in-hand with local, state and federal authorities to rid communities of dangerous criminals. While AUSA Meitl currently works in the Organized Crime Drug Enforcement Task Force (OCDETF) section of the Criminal Division where he prosecutes complex drug trafficking organizations, he carries a diverse caseload that includes all types of cases, such as complex fraud, violent crime and public corruption, and he is recognized as one of the District’s “go to” prosecutors. Just in the past year, AUSA Meitl has prosecuted more than 120 defendants from cases brought by the Drug Enforcement Administration, Texas Department of Public Safety, Federal Bureau of Investigation, U.S. Department of Health and Human Services and other law enforcement agencies.
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Akron man in custody in connection with Huntington heroin overdosesRead the Press Release
HUNTINGTON, W.Va. – An Akron, Ohio man is in federal custody in connection with a rash of heroin overdoses earlier this month in Huntington, United States Attorney Carol A. Casto and Huntington Chief of Police Joe Ciccarelli announced today. Bruce Lamar Griggs, 22, was arrested in Ohio and is being held on the basis of a federal criminal complaint filed in the Southern District of West Virginia, which charges Griggs with distribution of heroin.
According to an affidavit submitted in support of the criminal complaint by Huntington Police Department (“HPD”) Sgt. Paul Hunter, the investigation of Griggs began August 15, 2016, when the HPD responded to a large number of heroin overdoses in a short period of time in the area of St. Louis Avenue and Marcum Terrace. The affidavit states that one of the overdose victims identified the seller of the heroin as Griggs and that numerous others provided corroborating information linking the heroin to Griggs. The affidavit also states that surveillance video shows a person matching Griggs’ description engaging in activity indicative of hand-to-hand drug distribution in the Marcum Terrace area shortly before the overdoses began. A copy of the complaint and a redacted version of the affidavit, which are publicly available, are attached to this release.
Griggs was arrested by officers of the Tallmadge, Ohio police department and made an initial appearance yesterday before a United States magistrate judge in the Northern District of Ohio. He will be transported back to West Virginia to face the criminal charge against him.
The case is being investigated by the HPD and the Huntington Violent Crime and Drug Task Force.
NOTE: The criminal complaint in this case is only an accusation. The defendant is presumed innocent unless and until proven guilty in a court proceeding.
Complaint
Redacted Affidavit
25 August 2016
Wyoming Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
Robert Wayne Vawdrey, 53, of Robertson, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 22, 2016, for being a felon in possession of a firearm. Vawdrey was arrested in Evanston, Wyoming. He received 15 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Game and Fish Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Wichita Man Charged in Federal Court with Kidnapping St. Louis TeenRead the Press Release
WICHITA, KAN. - A Wichita man was charged Wednesday in U.S. District Court in Wichita with kidnapping a teenage girl from St. Louis, Acting U.S. Attorney Tom Beall said.
Johnny Angel Vallejo, 49, Wichita, Kan., is charged with one count of kidnapping a minor born in 1999, and one count of transporting a minor across state lines to engage in sexual activities.
An affidavit filed in the case alleges the investigation began Aug. 19 when the Kansas Highway Patrol was notified that a teenager had been taken from the St. Louis area and the kidnapper was traveling south on the Kansas Turnpike. Investigators tracked the teenager’s phone to Wichita. They interviewed Vallejo at his residence in the 1200 block of South Washington, but did not find the teenager.
Later, the KHP responded to a call about a distraught teenager. They found the victim at the Bionic Burger restaurant at 3257 E. Harry. They learned Vallejo had first contacted the teenager on Facebook and had traveled to St. Louis to visit the teenager. On Aug. 19, Vallejo picked up the teenager at school. Vallejo made threats and forced the teenager to accompany him to Kansas.
If convicted, Vallejo faces up to life in federal prison on the kidnapping charge, and not less than 10 years and a fine up to $250,000 on the transportation charge. The Kansas Highway Patrol and the Wichita Police Department investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Waterbury Store Operators Charged with Food Stamp FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that TALLAT MAHMOOD, 63, of Waterbury, RAUL CARLOS MONARCA, 40, of Waterbury, and TAHIR SHAHZAD, 32 of Harrison, N.Y., have been arrested on criminal complaints charging them with federal food stamp fraud and illegally trafficking in food stamp benefits at a retail food store in Waterbury. MAHMOOD and MONARCA were arrested by federal law enforcement agents on August 18 and SHAHZAD surrendered to authorities yesterday afternoon.
The federal food stamp program, also known as the Supplemental Nutrition and Assistance Program (SNAP), is administered by the U.S. Department of Agriculture’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with food stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
According to the criminal complaints, MAHMOOD, MONARCA and SHAHZAD worked at WB Trade Fair Grocery, located at 43 Willow Street in Waterbury. From November 2014 until June 2016, MAHMOOD, MONARCA and SHAHZAD illegally allowed customers to redeem their food stamp benefits for cash and other ineligible items, including cigarettes, glass pipes, bongs and hookahs. The store operators often charged a premium for these illegal transactions.
According to the complaints, given the stock of eligible food items at the store, the number of registers, and the customer amenities, it is estimated that WB Trade Fair Grocery could lawfully redeem at most between $120,000 to $240,000 per year in food stamp benefits. However, during this approximately 18-month period, food stamp redemptions at the store totaled approximately $3.2 million.
Following their arrests, MAHMOOD, MONARCA and SHAHZAD appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven. MAHMOOD and SHAHZAD were ordered to surrender their passports and were released on bond. MONARCA was ordered detained.
If convicted, the defendants each face a maximum term of imprisonment of five years, a fine of up to $250,000 and full restitution to the government.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Agriculture, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Neeraj N. Patel.
United States Postal Service Employee Charged with Theft of MailRead the Press Release
BIRMINGHAM – A federal grand jury on Wednesday indicted a U.S. Postal Service employee for stealing gift cards from the mail, announced U.S. Attorney Joyce White Vance and Special Agent in Charge Maximo Eamiguel, Southern Area Field Office, United States Postal Service, Office of Inspector General.
A two-count indictment filed in U.S. District Court charges TERRILL CHATMAN, 48, of Birmingham, with theft of mail by a Postal Service employee in September and October of 2015. According to the indictment, Terrill Chatman stole a $50 Publix gift card from the mail in Birmingham in September 2015, and the next month stole a $10 Walmart gift card.
The maximum penalty for theft of mail by a Postal Service employee is five years in prison and a $250,000 fine.
The Postal Service Office of Inspector General investigated the case, which Assistant U.S. Attorney Davis Barlow is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney’s Office and U.S. Marshals Service Warn of Jury Duty Phone ScamRead the Press Release
Montgomery, Ala. – Twice this week a criminal impersonated a U.S. Marshal and threatened senior citizens, announced U.S. Attorney George L. Beck Jr., and U.S. Marshal Thomas Hession, both of the Middle District of Alabama. The basics of the scam are simple: the criminal contacts the victim, tells the victim that he or she has missed federal jury duty, and demands the victim pay a fine to avoid being arrested.
To make the scheme believable, the scammer provides the victim with factual information such as the title and badge number of a law enforcement officer or court official, the name of a federal judge, and the courthouse address. Scammers are even using technology to mask their phone number on caller ID and make it appear as if the call is actually coming from the court or a government agency. This tactic is called “spoofing” and has become very common with scammers nationwide. In some cases, the scammer may carry the scheme out via email with an official looking email address.
The U.S. Marshals have received several calls inquiring about this scheme over the past few days and are advising the public that this is a scam. If you receive a jury duty related call or email, do not provide any personal information or send money. The Federal Courts do not call or email prospective jurors or ask for money or personal information and they never serve an arrest warrant by phone. Real, valid arrest warrants are always served in person. The court also does not demand the payment of money in lieu of arrest, nor does it accept payment via prepaid card.
Anyone that receives a “Jury Duty Scam” phone call or email should report it right away to their local United States Marshals Service office, or the local FBI office. If available, please have the caller ID or email address information of the scammer when you call. Here, in Montgomery, the public can report the scam to the U.S. Marshals at (334) 223-3094.
Two men sentenced for heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two men, one from Detroit and one from Barbour County, were sentenced for their role in the distribution of heroin, United States Attorney William J. Ihlenfeld, II, announced.
Jeffrey Motley, 25, of Philippi, West Virginia, was sentenced to 46 months in prison today for distributing heroin. Motley pled guilty in March 2016 to one count of “Aiding and Abetting Distribution of Heroin Within 1,000 Feet of a Protected Location.”
Craig Coffee, 48, of Detroit, Michigan, was sentenced to 27 months in prison for distributing heroin. Coffee pled guilty in March 2016 to one count of “Aiding and Abetting the Distribution of Heroin.”
Assistant United States Attorney Zelda E. Wesley prosecuted the cases on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.
U.S. District Judge Irene M. Keeley presided.
Two Men Indicted on Federal Drug Trafficking ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on August 24, a grand jury in Harrisburg indicted two men on charges of possessing and conspiring to possess and distribute methamphetamine.
According to United States Attorney Peter Smith, the indictment charges Delfin Ricardo-Hechevarria, 55, Albany, NY, and Jorge Gonzalez-Gonzalez, 59, Reading, PA, with possessing methamphetamine and with conspiring to distribute methamphetamine on July 3, 2016 in Cumberland County. Both men were arrested when a search of their vehicle incident to a traffic stop led to the seizure of methamphetamine. Both defendants are in custody.
The investigation was conducted by the Drug Enforcement Administration in Harrisburg, the Pennsylvania State Police, and the Cumberland County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney William A. Behe.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. The maximum penalty under federal law on each charge is life imprisonment and a mandatory minimum term of imprisonment, a term of supervised release following imprisonment, and a fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Defendants Plead Guilty in Nevada Standoff CaseRead the Press Release
LAS VEGAS, Nev. – Two of the 19 defendants charged in the Nevada criminal case involving the armed standoff over Cliven Bundy’s trespassing cattle, pleaded guilty today to felony charges before Chief U.S. District Judge Gloria M. Navarro, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Federal law enforcement officers must be able to engage in their official duties, including executing federal court orders, without fear of assault or losing their lives,” said U.S. Attorney Bogden. “Persons who impede and interfere with the official duties of these law enforcement officers will be prosecuted to the full extent of the law.”
Gerald A. DeLemus, 61, of Rochester, N.H., pleaded guilty to one count of conspiracy to commit an offense against the United States and one count of interstate travel in aid of extortion.
Blaine Cooper, 36, of Humboldt, Ariz., pleaded guilty to one count of conspiracy to commit an offense against the United States and one count of assault on a federal officer.
Both defendants are scheduled to be sentenced on Dec. 1. DeLemus faces up to five years in prison on the conspiracy count, up to 20 years in prison on the extortion count, and fines of up to $250,000 on each count. Cooper faces up to five years in prison on the conspiracy count, up to 20 years in prison on the assault count, and fines of up to $250,000 on each count.
DeLemus and Cooper are the first of 19 defendants charged in the case to plead guilty. The remaining 17 defendants, including Cliven D. Bundy, Ryan C. Bundy, and Ammon E. Bundy, are scheduled for trial beginning in February 2017.
Beginning on about March 28, 2014, federal law enforcement officers from the U.S. Bureau of Land Management (BLM) and the National Park Service (NPS) were attempting to execute federal court orders authorizing them to remove and impound Cliven Bundy’s cattle that were trespassing on federal public lands in and around Bunkerville, Nev. Bundy had trespassed on the public lands for over 20 years, refusing to obtain the legally-required permits or pay the required fees to keep and graze his cattle on the land. In an effort to prevent the federal law enforcement officers from removing the cattle, the defendants are alleged to have recruited and organized followers to use armed force against them, and on April 12, 2014, the defendants led a massive armed assault against the officers in order to extort them into abandoning the cattle that they had gathered.
DeLemus’ plea agreement states that he learned of Cliven Bundy and placed a telephone call from New Hampshire to Cliven Bundy in Nevada on or about April 8, 2014. During that call, DeLemus understood Bundy to tell him that federal officers had guns and that Bundy needed “bodies.” DeLemus agreed to assist Bundy. Shortly thereafter, DeLemus gathered multiple firearms and gunmen, and they traveled from New Hampshire to Nevada. DeLemus arrived in Bunkerville on or about April 13, 2014, after the cattle had been forcibly obtained by Bundy and his conspirators. For weeks thereafter, DeLemus provided personal security for Bundy and other conspirators, organized and led other gunmen in conducting patrols and manning security checkpoints, called for others to travel to Bunkerville, and displayed firearms and made public statements to show and threaten force. DeLemus admitted that when he traveled to Nevada, he joined a conspiracy to display force and aggression in order to influence, impede or interfere with the duties of federal law enforcement officers.
Cooper’s plea agreement states that he knew that Cliven Bundy and his sons and others planned to thwart, impede and interfere with the impoundment operations, and that he knowingly agreed to participate in the plan by recruiting others to join the conspiracy and encouraging and inciting others to confront and interfere with federal law enforcement officers and by providing protection for Cliven Bundy. Cooper knew other members of the conspiracy used and carried firearms and planned to use and carry them to display force and aggression against law enforcement officers. Cooper admitted that on April 12, 2014, at least one member of the conspiracy assaulted federal law enforcement officers by brandishing a firearm during the impoundment operations in order to intimidate and instill fear in the officers.
The case is being investigated by the FBI and BLM. It is being prosecuted by Assistant U.S. Attorneys Steven W. Myhre and Nicholas D. Dickinson and Special Assistant U.S. Attorneys Nadia J. Ahmed and Erin M. Creegan.
Trade Show Manager Sentenced to Prison for $376K Fraud SchemeRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 14 months incarceration and $376,603 in restitution on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence yesterday on Anthony Allen Aubrey, 50 of White Oak, PA.
According to the information presented to the court, the court was advised that Aubrey was a trade show manager for Phillips Home Healthcare Solutions responsible for setting up venues and hiring vendors for everything from carpentry to food. He had a good working relationship with Carpenter Connection (CC) and at Aubrey’s request CC would pay vendors and individuals on behalf of PHHS who could not be easily paid through the PHHS system due to timing and administrative issues. In turn CC would be reimbursed by PHHS. Aubrey developed a relationship with Melissa Dougherty and hired her to assist with some of the trade shows. However, the relationship became romantic and Aubrey began to request additional payments for her for services she did not perform or had already been paid for. He created and/or inflated Dougherty’s invoices on his company laptop to support the fraudulent payments. He asked CC by email to issue checks to her and have them overnighted by FedEx. One of those checks forms the basis for Count One. When an audit revealed discrepancies and Aubrey was questioned, he admitted what he had done and cooperated fully. The loss to PHHS was $376,603.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigating leading to the successful prosecution of Anthony Allen Aubrey.
Topeka Man Sentenced to 35 Years for Drug TraffickingRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced Thursday to 35 years in federal prison for drug trafficking, Acting U.S. Attorney Tom Beall said.
Faustino Soto, 43, Topeka, Kan., was convicted on one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm by a user of controlled substances.
Prosecutors told the court that during an investigation that began in the fall of 2013 Soto was identified as a multi-pound supplier of methamphetamine to a trafficking organization that was operating in Franklin, Shawnee, Anderson, and Douglas counties in Kansas. When investigators served a search warrant at Soto’s residence in the 100 block of SE Rice Road in Topeka they recovered methamphetamine, firearms, and more than $17,000 in cash.
In sentencing Soto, the judge took into account evidence that Soto obstructed justice by intimidating three witnesses prior to trial.
Beall commended the Kansas Bureau of Investigation and Assistant U.S. Attorney Sheri Catania for their work on the case.
Three more defendants plead guilty for roles in California-to-West Virginia drug conspiracyRead the Press Release
Los Angeles father and son each face up to 40 years; Mexican national faces up to 5 years
CHARLESTON, W.Va. – Three defendants pleaded guilty today for their roles in a California-to-West Virginia methamphetamine conspiracy, announced United States Attorney Carol Casto. Rafael Garcia Serrato, 45, and Cesar Garcia, 20, a father and son from Los Angeles, each pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine. Marco Antonio Bojorquez-Rojas, 21, a Mexican national residing in California, pleaded guilty to interstate travel in furtherance of a drug crime.
Serrato and Garcia admitted that in March 2016, they, along with other codefendants, arranged to transport five pounds of methamphetamine from California to West Virginia. Serrato and Garcia further admitted that they packed a vehicle with the drugs. Serrato and Garcia also admitted that they maintained telephone contact with the vehicle as it traveled to West Virginia to keep apprised of the progress of the drug delivery. Garcia admitted that on March 25, 2016, he flew from Los Angeles to Huntington to collect money for the drugs being delivered to West Virginia. On March 26, 2016, law enforcement stopped the vehicle transporting the methamphetamine in South Charleston and recovered the drugs.
Bojorquez-Rojas admitted that in January 2016, he traveled with some of his codefendants to Charleston from California to collect money for methamphetamine that had been delivered to West Virginia. On January 11, 2016, law enforcement executed a search warrant on a hotel room where Bojorquez-Rojas and some his codefendants, including Serrato and Garcia, were staying and recovered a bag containing $12,000 cash. Bojorquez-Rojas also admitted that this cash was payment for a portion of the methamphetamine that had been delivered to West Virginia. Bojorquez-Rojas additionally admitted that in March 2016, he traveled from California to Huntington to collect money for methamphetamine that had been driven to Huntington by codefendants Kelly Newcomb and Cara Linn Monasmith. Shortly after the arrival of Bojorquez-Rojas in Huntington on March 19, 2016, law enforcement arrested him and three of his codefendants in a Huntington hotel room.
Serrato and Garcia face at least five and up to 40 years in federal prison when they are sentenced on December 6, 2016. Bojorquez-Rojas faces up to five years in federal prison when he is sentenced on December 7, 2016.
This prosecution is the result of a multi-agency investigation that led to an eight-count indictment implicating 14 defendants, including Serrato, Garcia, and Bojorquez-Rojas. All of their codefendants are presumed innocent unless and until proven guilty in a court of law. As part of this conspiracy, Daniel Ortiz-Rivera, a Mexican national, and Velarian Sylvester Carter, of Beckley, previously pleaded guilty to conspiring to distribute more than 50 grams of methamphetamine. Ortiz-Rivera is scheduled to be sentenced on October 11, 2016. Carter is scheduled to be sentenced on October 13, 2016. Additionally, three women who were used as mules to transport methamphetamine, Danielle Dessaray Estrada, of Los Angeles, Kelly Newcomb, of Nevada, and Cara Linn Monasmith, also of Nevada, pleaded guilty to interstate travel in furtherance of a drug crime. Estrada and Newcomb are scheduled to be sentenced on October 6, 2016. Monasmith is scheduled to be sentenced on November 8, 2016.
The FBI, Homeland Security Investigations, the United States Postal Inspection Service, the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
Southbridge Man Pleads Guilty to Illegally Exporting Assault Rifle and Pistol PartsRead the Press Release
Boston – A Southbridge, Mass., man was sentenced yesterday in U.S. District Court in Worcester in connection with illegally shipping hundreds of firearm parts to people in 20 countries, including France, Finland, Indonesia, New Zealand, Thailand, Spain, Australia, and Germany.
David L. Maricola, 60, was sentenced by U.S. District Court Judge Timothy S. Hillman to 33 months in prison, three years of supervised release and ordered to forfeit 30 firearms and more than 1,000 firearm components. In April 2016, Maricola pleaded guilty to a 32-count indictment charging him with conspiracy, illegally exporting defense articles, making false statements on customs forms, and money laundering.
In 2015, Maricola and Arto Laatikanien, a 32-year old Finnish citizen, were indicted in connection with illegally exporting hundreds of assault rifle and firearm components, including parts for M16, M4, AR-15 assault rifles, Glock pistols, and UZI submachine guns.Between November 2010 and March 2012, Maricola shipped more than $100,000 worth of firearm components to Laatikainen in Finland though the U.S. Postal Service.After receiving the parts, Laatikainen sold them to criminal organizations in Finland, including the Cannonballs Outlaw Motorcycle Gang.Numerous firearm parts Maricola illegally exported to Laatikanien were used in two gang shootings in Finland.During one of the shootings that occurred on December 31, 2012, one person was killed and another seriously wounded.
At the plea hearing, Maricola admitted to illegally exporting and conspiring to illegally export hundreds of firearm parts overseas using the Postal Service, lying on customs declaration forms about the contents and value of the articles he was sending, and money laundering. Maricola acknowledged that he had obtained many of the parts he illegally exported overseas from Gunbroker.com, and instructed his customers to send money to him using Paypal. Additionally, Maricola admitted that he repeatedly falsely described gun parts on customs forms as merely being “AIRSOFT” or replica firearms rather than being for actual, lethal guns. On numerous occasions, Maricola also falsely described AR-15 assault rifles parts as “aluminum sculptures.”
Laatikanien remains in Finland as Finland does not extradite its own nationals.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Craig Rupert, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office; and Michael S. Imbrogna, Special Agent in Charge of the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Boston Field Office, made the announcement today. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and U.S. Postal Inspection Service provided substantial assistance during the investigation. The case is being prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of Ortiz’s National Security Unit.
South Paris Man Sentenced to 21 Months for Illegally Possessing a FirearmRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Andrew Bean, 51, of South Paris, Maine was sentenced today in U.S. District Court by Judge D. Brock Hornby to 21 months in prison and three years of supervised release for possessing a firearm after being convicted of four felony offenses. He pleaded guilty on April 26, 2016.
According to court records, on November 21, 2015, a Maine Game Warden discovered Bean in possession of a 12-gauge shotgun in the Paris, Maine area. Bean was prohibited from possessing firearms based on prior felony convictions for Operating Under the Influence and for Operating after Revocation in 2002 and, again, in 2006.
The case was investigated by the Maine Warden Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Sixteen Defendants Charged in Criminal Complaints Alleging Broad-Ranging Drug Trafficking ConspiracyRead the Press Release
SAN FRANCISCO – A total of sixteen defendants have been named thus far in a federal criminal complaint alleging a broad-ranging criminal conspiracy to traffic methamphetamine, heroin, cocaine, and other drugs in both the Eastern and Northern Districts of California, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin. The complaint, unsealed today, and related documents filed in the Eastern District of California allege that the following defendants participated in the conspiracy:
- Oscar Vladimir Escalante, aka “Cuddy,” aka “Hoggy”
- Melina Patricia Escalante
- Claudia Munoz
- Jorge Gomez, aka “George”
- Alfredo Guadalupe Ortiz, aka “Pep”
- David Vigil aka “Chepp,” aka “Carlos”
- Julian Marc Reayoung, aka “Marcus”
- Christian Victor Vanleer, aka “Buggy,” aka “Buggy B”
- Michael Anthony Vicochea, aka “Mikey,” aka "Money Mike"
- Ignacio Gonzalez, aka “Pelon”
- Daniel Medina-Garay;
- Adam Mustafa Abdelwahhab
- Louis Ramirez, aka “Louie”
- Joel Salcedo
- Sean Constantine Chin, aka “Miami”
- James Hinkle, aka “Big Jim”
According to the complaint, the defendants all were part of a conspiracy whose objective was to distribute large quantities of heroin, cocaine, methamphetamine and prescription pills. The conspirators also maintained marijuana grow houses in San Francisco, Oakland, Antioch, Discovery Bay, Tracy, and Delano, California.
According to the complaint, Oscar Escalente orchestrated many aspects of the alleged conspiracy, including working with an armorer to modify firearms so as to make them fully automatic for use in furtherance of the conspiracy. The complaint also describes the various roles that the defendants allegedly played in the conspiracy. The allegations set out the following:
- Melina Escalante, Oscar’s wife, assisted him in laundering the proceeds of his drug business;
- Claudia Munoz, Oscar’s girlfriend, managed utilities and rental of real property for the grow houses;
- Jorge Gomez managed a number of the grow houses;
- David Vigil managed cultivation in a grow house and supplied methamphetamine;
- Alfredo Ortiz assisted in the operations at four grow houses;
- Julian Reayoung distributed heroin, methamphetamine, and marijuana;
- Christian Vanleer distributed heroin, cocaine, and alprazolam;
- Michael Vicochea operated a grow house and distributed methamphetamine;
- Ignacio Gonzalez managed a grow house and collected money from people who received drugs;
- Daniel Medina-Garay distributed heroin and functioned as a street-level dealer;
- Adam Abdelwahhab modified firearms to make them fully automatic and then supplied them to the conspirators;
- Louis Ramirez assisted in growing and distributing marijuana and concentrated cannabis;
- Joel Salcedo supplied heroin and methamphetamine to Oscar Escalante and Michael Vicochea;
- Sean Chin was involved with at least one marijuana grow; and
- James Hinkle assisted with growing and transporting marijuana plants.
All the defendants were charged with engaging in a conspiracy to distribute heroin, cocaine, methamphetamine, alprazolam, and 100 or more marijuana plants, in violation of 21 U.S.C. § 846; and illegal use of a communication facility, in violation of 21 U.S.C. § 843(b). In addition, Oscar Escalante, Vicochea, Abdelwahhab, and Salcedo were charged with possession of a machine gun, in violation of 18 U.S.C. § 922(o); and Oscar and Melina Escalante, Munoz, Reayoung, and Vicochea were charged with money laundering, in violation of 18 U.S.C. § 1956(h). The maximum statutory penalty for a violation of 21 U.S.C. §§ 841(a)(1) and 846 is 40 years’ imprisonment and a fine of $5,000,000; the maximum statutory penalty for a violation of 21 U.S.C. § 843(b) is 4 years’ imprisonment and a fine of $250,000; the maximum statutory penalty for a violation of 18 U.S.C. § 922(o) is 10 years; and the maximum statutory penalty for a violation of 18 U.S.C. § 1956(h) is 20 years. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Yesterday, the DEA made 17 arrests and searched at least 14 locations in coordinated activity. The defendants are scheduled to make the following appearances for detention hearings:
Defendant
Next appearance before
U.S. Magistrate Judge*
David Vigil
8/26/2016
James Hinkle
8/29/2016
Oscar Escalante
8/31/2016
Melina Escalante
8/29/2016
Claudia Munoz
8/29/2016
Jorge Gomez
8/30/2016
Alfredo Ortiz
8/30/2016
Julian Reayoung
Not yet scheduled
Christian Vanleer
8/26/2016
Michael Vicochea
8/31/2016
Ignacio Gonzalez
8/30/2016
Daniel Medina-Garay
8/30/2016
Adam Abdelwahhab
8/31/2016
Louis Ramirez
8/29/2016
Joel Salcedo
9/6/2016
Sean Chin
8/29/2016
* All appearances will be made before U.S. Magistrate Judge Kandis Westmore except Vigil and Hinkle who will appear before U.S,. Magistrate Judge Stanley A. Boone, in Sacramento and Salcedo who will appear before U.S. Magistrate Judge Donna M. Ryu in San Jose.
This case is the product of an investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Special assistance was provided by the San Ramon Police Department with additional assistance from the Marin County Sheriff and the Oakland Police Department.
Sex Trafficking Operation Results in ArrestsRead the Press Release
PIERRE, S.D. - Attorney General Marty Jackley, United States Attorney Randolph J. Seiler, Rapid City Police Chief Karl Jegeris, and Pennington County Sheriff Kevin Thom announce that the Division of Criminal Investigation, the South Dakota Internet Crimes Against Children (ICAC) Task Force, and Homeland Security Investigations have conducted investigations into sex trafficking in Rapid City.
“It is important that we protect our children with law enforcement operations that focus on removing sexual predators from our streets. Our operations continue to protect children and send a message that South Dakota is off-limits to anyone seeking to harm our children,” said Jackley.
“Despite the intense publicity and focus on human trafficking these past few years, these undercover operations serve as a somber reminder that some people will throw caution to the wind and succumb to their perverted instincts,” said U.S. Attorney Randy Seiler. “I’m proud of the joint collaboration displayed by law enforcement and our united efforts to bring sex traffickers to justice.”
The investigation resulted in the following felony arrests for sex crimes:
Marshall Brown, 26, Ellsworth AFB, SD, Attempted Enticement of a Minor Using the Internet (18 USC 2422(b)) and Attempted Transfer of Obscene Material to a Minor (18 USC 1470)
Duane Hosek, 61, Rapid City, SD, Attempted Enticement of a Minor Using the Internet (18 USC 2422(b)) and Attempted Transfer of Obscene Material to a Minor (18 USC 1470)
Ryan Kammerer, 26, Box Elder, SD, Attempted Enticement of a Minor Using the Internet (18 USC 2422(b))
Brendan Leiter, 24, Elkhart, IN, Attempted Enticement of a Minor Using the Internet (18 USC 2422(b))
Noah Schottenstein, 27, Rapid City, SD, Attempted Enticement of a Minor Using the Internet (18 USC 2422(b))
Andries Snyman, 42, Isabel, SD, Attempted Enticement of a Minor Using the Internet (18 USC 2422(b))
Cody Two Lance, 33, Rapid City, SD, Attempted Enticement of a Minor Using the Internet (18 USC 2422(b)) and Attempted Transfer of Obscene Material to a Minor (18 USC 1470)
Joel Zupnik, 51, Ft. Collins, CO, Attempted Enticement of a Minor Using the Internet (18 USC 2422(b))
The mandatory minimum penalty upon conviction for Attempted Enticement of a Minor Using the Internet is 10 years in prison, up to life. Hosek, Two Lance, and Brown, could face an additional 10 years in prison if convicted of the Attempted Transfer of Obscene Material to a Minor.
All these individuals are presumed innocent until such time as proven guilty.
The Attorney General’s Office would like to extend its appreciation to the Rapid City Police Department, Pennington County Sheriff’s Office, Sturgis Police Department and Homeland Security Investigations for their efforts and continued cooperation.
Seven people indicted for conspiracy to traffic cocaine in East LiverpoolRead the Press Release
Seven people were named in a 79-count indictment for their roles in a conspiracy to traffic crack and powder cocaine in and around East Liverpool, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Indicted are: Brady Carmichael, 26, of Columbus; Bryan Carmichael, 27, of Columbus; Guy Dorsey, 54, of Wellsville; Katie Riley, 26; Jacqueline Riley, 30; Phyllis Chamberlain, 55, and Allana Baker, 30, all of East Liverpool.
It was part of the conspiracy that the Carmichaels and Katie Riley transported cocaine from the Columbus area to East Liverpool between June and July 2016. The Carmichaels and Riley would then convert the cocaine into crack cocaine for redistribution around the East Liverpool area, according to the indictment.
The Carmichaels and Katie Riley supplied crack cocaine to Baker, Chamberlain and Dorsey for redistribution around the East Liverpool area. The defendants used cellular telephones, code words and phrases to facilitate their drug trafficking activities, according to the indictment.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration and the Columbiana County Drug Task Force. The case is being prosecuted by Assistant United States Attorney David M. Toepfer.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Serial Bank Robber, Arrested as a Result of a Crime Stopper’s Tip, is Sentenced to 125 Months in Federal PrisonRead the Press Release
DALLAS — A Dallas man, Joshua Sefnathn Chavez, 24, who admitted robbing or attempting to rob five banks in the Dallas-Fort Worth metroplex during the first two weeks of September 2015, was sentenced today by U.S. District Judge Jane J. Boyle to 125 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Chavez pleaded guilty in March 2016 to five counts of bank robbery. He admitted entering each of the following five banks with the intent to commit bank robbery. In most of the robberies, he acted similarly, handing a teller a bank bag and note, indicating it was a robbery, and indicating he had a gun. In all but the bank robbery in North Richland Hills, the teller complied, giving Chavez cash.
September 1, 2015 Chase Bank, 11611 Preston Road, Dallas
September 3, 2015 First Convenience Bank, 752 Wynnewood Village Shopping Center, Dallas
September 3, 2015 Bank of Texas, 3200 Heritage Trace Parkway, Fort Worth
September 9, 2015 Wells Fargo Bank, 6700 Iron Horse Boulevard, North Richland Hills
September 10, 2015 Comerica Bank, 2121 Maple-Routh Connection, Dallas
The Dallas Police Department issued a press release to the local media and to social media asking for the public’s help in identifying the bank robber. Crime Stopper’s received a tip identifying Chavez as the suspect.
The FBI and the Dallas Police Department investigated the case. Assistant U.S. Attorney Keith Robinson prosecuted.
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Serial Armed Robber Sentenced to 15 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Michael Toliver, age 40, of Baltimore, today to 15 years in federal prison, followed by three years of supervised release for a series of armed robberies. Judge Hollander also entered an order requiring Toliver to pay restitution totaling $13,577.17.
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; Chief James W. Johnson of the Baltimore County Police Department; Commissioner Kevin Davis of the Baltimore Police Department; and Chief Gary Gardner of the Howard County Police Department.
According to his plea agreement and court documents, from May 17 to June 4, 2014, Toliver and others robbed commercial businesses located in Baltimore, Baltimore County and Howard County at gunpoint. In several of the robberies co-defendant Marcus Gray stood at the door and acted as the lookout, while Toliver pointed a gun at employees and demanded money. Toliver admitted to robbing the following stores in Maryland:
Exxon gas station, Forest Rd., Columbia, on May 17; Burger King, Rolling Mills Road, Dundalk, on May 17; Bob Evans, Wholesale Club Dr., Nottingham, on May 19; Safeway Food Stores, Harford Rd., Baltimore, on May 23; Dunkin Donuts, Reisterstown Rd., Baltimore on May 23; Sprint, Baltimore National Pike, Baltimore, on May 24; Royal Farms, Pulaski Highway, Baltimore, on May 31; BP gas station, Park Heights Ave., Baltimore, on May 31; Royal Farms, Southwick Dr., Baltimore, on May 31; and
Royal Farms, Edmondson Ave., Baltimore, on June 4.During the Dunkin Donuts robbery on May 23, 2014, Toliver struck the manager in the head with a handgun, causing injury. During the Sprint store and BP gas station robberies, Toliver fired his gun into the floor or ceiling, when the managers of each store did not open the store’s safe.
Law enforcement reviewed video recordings of the robberies and identified Toliver as one of the robbers. On June 4, 2014, law enforcement arrested Toliver and executed a search warrant on his car. They seized a handgun and ammunition, along with a BB gun, a SWAT vest and gloves. Gray was arrested the following day. Law enforcement executed additional search warrants and seized from Toliver’s residence another handgun, ammunition, $3,780 in coins or cash, and clothing worn by Toliver during several robberies. Subsequent investigation revealed that the gun seized from Toliver’s vehicle was the gun fired during the BP Gas station robbery.
Marcus Gray, age 42, of Baltimore, previously pleaded guilty to his participation in several of the robberies and awaits sentencing.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore City Police Department, Howard County Police Department and Baltimore County, City and Howard County State’s Attorney=s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.
Russian Cyber-Criminal Convicted of 38 Counts Related to Hacking Businesses and Stealing More Than Two Million Credit Card NumbersRead the Press Release
Hacking Scheme Defrauded Banks of More Than $169 Million
A federal jury today convicted a Vladivostok, Russia, man of 38 counts related to his scheme to hack into point-of-sale computers to steal and sell credit card numbers to the criminal underworld, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Annette L. Hayes of the Western District of Washington.
Roman Valerevich Seleznev, aka Track2, 32, was convicted after an eight-day trial of 10 counts of wire fraud, eight counts of intentional damage to a protected computer, nine counts of obtaining information from a protected computer, nine counts of possession of 15 or more unauthorized access devices and two counts of aggravated identity theft. U.S. District Judge Richard A. Jones of the Western District of Washington scheduled sentencing for Dec. 2, 2016.
According to testimony at trial and court documents, between October 2009 and October 2013, Seleznev hacked into retail point-of-sale systems and installed malicious software (malware) to steal credit card numbers from various businesses from a server he operated in Russia. Many of the businesses were small businesses, some of which were restaurants in Western Washington, including the Broadway Grill in Seattle, which was forced into bankruptcy following the cyber assault.
Evidence presented at trial demonstrated that the malware would steal the credit card data from the point-of-sale systems and send it to other servers that Seleznev controlled in Russia, the Ukraine or in McLean, Virginia. Seleznev then bundled the credit card information into groups called “bases” and sold the information on various “carding” websites to buyers who would then use the credit card numbers for fraudulent purchases, according to the trial evidence. Testimony at trial revealed that Seleznev’s scheme caused 3,700 financial institutions more than $169 million in losses.
When Seleznev was taken into custody in July 2014 in the Maldives, his laptop contained more than 1.7 million stolen credit card numbers, some of which were stolen from businesses in Western Washington. The laptop also contained additional evidence linking Seleznev to the servers, email accounts and financial transactions involved in the scheme.
Seleznev is charged in a separate indictment in the District of Nevada with participating in a racketeer influenced corrupt organization (RICO) and conspiracy to engage in a RICO, as well as two counts of possession of 15 or more counterfeit and unauthorized access devices. Seleznev is also charged in the Northern District of Georgia with conspiracy to commit bank fraud, one count of bank fraud and four counts of wire fraud. An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Secret Service Electronic Crimes Task Force investigated the case. The task force includes detectives from the Seattle Police Department and the U.S. Secret Service Cyber Intelligence Section in Washington, D.C. Trial Attorney Harold Chun of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Norman M. Barbosa and Seth Wilkinson of the Western District of Washington are prosecuting the case. The CCIPS Cyber Crime Lab and its Director, Ovie Carroll, provided substantial support for the prosecution. The Office of International Affairs and the U.S. Attorney’s Office of the District of Guam also provided assistance in this case.
Russian Cyber-Criminal Convicted Following Eight-Day TrialRead the Press Release
Seattle – A federal court jury today convicted Roman Valerevich Seleznev, aka “Track2,” 32, of Vladivostok, Russia, of 38 counts related to his scheme to hack into point-of-sale computers to steal and sell credit card numbers to the criminal underworld, announced U.S. Attorney Annette L. Hayes. The jury deliberated six hours following an eight-day trial. U.S. District Judge Richard A. Jones scheduled sentencing for December 2, 2016.
The 40-count indictment charged Seleznev with the theft and sale of more than 2.9 million credit card numbers. According to testimony at trial and court documents, between October 2009 and October 2013, Seleznev hacked into retail point-of-sale systems and installed malicious software to steal credit card numbers from various businesses. Many of the businesses were small businesses, and included restaurants and pizza parlors in Western Washington. The Broadway Grill in Seattle was one of the better known victim businesses, which was forced into bankruptcy following the cyber attack.
Seleznev operated a server in Russia that he used to install malware on the point-of-sale computer systems. The malware would steal the credit card data from the point-of-sale systems and send it to other servers controlled by Seleznev, including in the Ukraine and McLean, Virginia. Seleznev would bundle the credit card information into groups called “bases” and sell the information on various criminal “carding” websites. The buyers would then use the credit card numbers for fraudulent purchases. Testimony at trial revealed that 3,700 financial institutions lost more than $169 million because of the scheme.
When Seleznev was taken into custody in July 2014 in the Maldives, his laptop contained more than 1.7 million stolen credit card numbers– some from businesses in Western Washington. Also on the laptop was additional evidence linking Seleznev to the servers, email accounts and financial transactions involved in the scheme.
In closing arguments prosecutors told the jury that if they “follow the digital fingerprints” Seleznev left across the internet, they would find “one of the most prolific credit card thieves in history.”
In particular, Seleznev was convicted of ten counts of wire fraud, eight counts of intentional damage to a protected computer, nine counts of obtaining information from a protected computer, nine counts of possession of 15 or more unauthorized access devices and two counts of aggravated identity theft. Wire fraud is punishable by up to thirty years in prison and a $1 million fine. Intentionally causing damage to a protected computer resulting with a loss of more than $5,000 is punishable by up to ten years in prison and a $250,000 fine. Obtaining information from a protected computer is punishable by up to five years in prison and a $250,000 fine. Possession of more than 15 unauthorized access devices is punishable by up to ten years in prison and a $250,000 fine. Aggravated identity theft is punishable by an additional two years in prison on top of any sentence for the underlying crimes. It is important to keep in mind that these are maximum possible sentences that could be imposed on individual counts in this case. They are not a statement of what the United States will recommend at the time of sentencing. Further, in determining what sentence to impose, at the time of the sentencing hearing, the Court will apply the United States Sentencing Guidelines to the specific facts of this case to come up with a non-binding sentencing guidelines range.
Seleznev is also charged in a separate indictment in the District of Nevada with participating in a racketeer influenced corrupt organization (RICO) and conspiracy to engage in a racketeer influenced corrupt organization, as well as two counts of possession of 15 or more counterfeit and unauthorized access devices. Seleznev is also charged in the Northern District of Georgia with conspiracy to commit bank fraud, one count of bank fraud, and four counts of wire fraud.
The Seattle case was investigated by the U.S. Secret Service Electronic Crimes Task Force, which includes detectives from the Seattle Police Department and the U.S. Secret Service Cyber Intelligence Section in Washington, D.C. The case is being prosecuted by Assistant U.S. Attorneys Norman M. Barbosa and Seth Wilkinson of the Western District of Washington and Trial Attorney Harold Chun of the Criminal Division’s Computer Crime and Intellectual Property Section. The U.S. Department of Justice Cyber Crime Lab, and its Director, Ovie Carroll, provided substantial support for the prosecution. The Office of International Affairs and the U.S. Attorney’s Office for the District of Guam also provided assistance in this case.
Redding Man Sentenced to over 11 Years in Prison for Child Pornography OffenseRead the Press Release
SACRAMENTO, Calif. — Michael Ray Robertson, 64, of Redding, was sentenced today by United States District Judge Morrison C. England Jr. to 11 years and three months in prison for distribution of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between June 2012 and November 2012, undercover investigators located a computer in the Redding area making child pornography available over a peer-to-peer file sharing service. Agents executed a search warrant at Robertson’s residence and located a computer containing numerous images and videos depicting the sexual exploitation of children and making those files available to others over the internet. On March 24, 2016, Robertson pleaded guilty to distribution of child pornography.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) as part of “Operation Sunflower,” which was a nationwide investigation targeting purveyors of child pornography that began in 2012. The name is based on a case in which a sunflower-shaped highway road sign identified in online images led to the rescue of an 11-year-old girl in Kansas. Assistant United States Attorney Matthew G. Morris prosecuted the case.
“Operation Sunflower resulted in more than two dozen arrests in northern California alone and HSI’s tireless work to identify child predators and rescue their unwitting victims are ongoing,” said Ryan L. Spradlin, the special agent in charge who oversees HSI’s investigative efforts throughout northern California. “Bringing the perpetrators of these crimes to justice not only furthers public safety, we believe it also sends a powerful message to those who sexually exploit children online that cyberspace affords no refuge from detection.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Port St. Lucie Resident Charged with Running Fraudulent Tax Preparation BusinessRead the Press Release
A Port St. Lucie resident is charged in a fifty-two count indictment with running a fraudulent tax preparation business in order to file fraudulent tax returns on behalf of her clients and for filing false individual returns on her own behalf.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Dianne Mowatt, 39, of Port St. Lucie, Florida, is charged by indictment with fifty counts of assisting in the filing of false tax returns and two counts of filing false tax returns, in violation of Title 26, United States Code, Sections 7206(2) and (1). If convicted, Mowatt faces a maximum statutory sentence of three years’ imprisonment, a fine of $100,000, and one year of supervised release, as to each count.
According to the indictment, from January 1, 2012 and into 2016, Mowatt owned, operated, or otherwise provided services to Mowatt Financial Services and Proven Tax Services, both being tax return preparation businesses located in Port Saint Lucie and Miami, Florida. Mowatt prepared and submitted individual tax returns (Forms 1040), with accompanying schedules, to the IRS on behalf of taxpayers claiming false deductions and credits for tax years 2011 through 2014. Mowatt also filed false individual returns for herself for the tax years 2010 and 2011 by falsely claiming five different people as her dependents.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys Russell Killinger and Marton Gyires.
An indictment is merely an allegation and every defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Operator of Store in Epsom Pleads Guilty to Misbranding ChargeRead the Press Release
CONCORD, NEW HAMPSHIRE: Brett Scott, 24, pleaded guilty in the United States District Court for the District of New Hampshire to a federal charge related to the sales of misbranded drugs, announced United States Attorney Emily Gray Rice.
According to court documents and statements at the plea hearing, Scott operated a “Smoke N Discount,” a retail store in Epsom, New Hampshire. A law enforcement investigation showed that the store was selling synthetic cannabinoid products with names like “Colorado Kush” and “Peak Ultra.” The investigation found that the products being sold at the store contained analogues of controlled substances.
The labels of the synthetic cannabinoid products sold at the store were misleading in multiple ways. The packaging misleadingly indicated that the products were not for human consumption, when in fact, the products were intended for human consumption and ingested by consumers. The packaging made misleading representations suggesting that the product was not unlawful by representing what the package did not contain, but did not identify the actual ingredients that were contained in the packages. The labels did not contain information bearing the name and place of business of the manufacturer, packer, or distributor. The labels also did not contain adequate directions for use or adequate warnings for use.
As part of his plea agreement, Scott agreed to forfeit $30,000 to the United States.
United States Magistrate Judge Andrea Johnstone scheduled sentencing for December 12, 2016.
Synthetic cannabinoids are green leafy materials that have been sprayed with chemicals. These products (commonly referred to as “spice” or “K2”) are often marketed as incense or potpourri. As in this case, the packaging materials often contain attractive logos that are designed to appeal to young people. Although the products are often identified as “not for human consumption,” the products are smoked in order to obtain a high. The chemicals that are sprayed on the products to produce the high are often illegal controlled substances or analogues of illegal controlled substances. The ingestion of these types of illegal products has caused some users to experience a variety of medical side effects and has led to numerous hospitalizations.
This investigation was conducted by the Drug Enforcement Administration’s Tactical Diversion Squad, with assistance from the New Hampshire State Police and the Epsom and Concord Police Departments
The case was prosecuted by Assistant United States Attorney John J. Farley.
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Ogdensburg Man Charged with Producing Child PornographyRead the Press Release
PLATTSBURGH, NEW YORK – Harry McCarthy, age 55, of Ogdensburg, New York, was indicted yesterday for sexually exploiting a child for the purpose of creating child pornography, and for distributing, receiving, possessing and transporting child pornography.
The announcement was made by United States Attorney Richard S. Hartunian; Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation; and New York State Police Superintendent George P. Beach II.
McCarthy appeared today before United States Magistrate Judge Gary L. Favro and was detained pending further proceedings. If convicted of all charges, McCarthy faces at least 15 years and up to 30 years in prison for each charge of child exploitation, and at least 5 years and up to 20 years for each charge of distributing, receiving, and transporting child pornography. If convicted, McCarthy would also face mandatory, post-imprisonment supervised release of at least 5 years and up to life, and would be required to register as a sex offender. 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.
According to the indictment, in 2013 and 2014, McCarthy induced a 13-year-old child into engaging in sexually explicit conduct for the purpose of creating images of such conduct. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Katherine Kopita.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/
Norwich Resident Admits Role in Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PIERRE JEUDY, 56, of Norwich, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of wire fraud stemming from his involvement in an insurance fraud scheme.
According to court documents and statements made in court, between April 2011 and February 2014, JEUDY and others participated in a scheme to stage approximately 50 car crashes in eastern Connecticut for the purpose of defrauding automobile insurance companies and enriching themselves. A high percentage of these planned crashes were single-vehicle accidents on remote roads where there were no witnesses other than the occupants of the crashed vehicle. After each staged accident, the defendants filed fraudulent property damage and bodily injury claims with various automobile insurance companies. They then collected payouts on the fraudulent claims from the victim insurance companies. These payouts typically ranged from about $10,000 to about $30,000 per accident.
In pleading guilty, JEUDY admitted his personal involvement in a staged automobile crash in Norwich on October 22, 2013.
JEUDY was arrested on May 20 and is released on bond. He is a citizen of Haiti and a lawful permanent resident of the U.S.
Judge Meyer scheduled sentencing for November 29, 2016, at which time JUEDY faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Federal Bureau of Investigation, the Norwich Police Department and the National Insurance Crime Bureau, with the assistance of the Mohegan Tribal Police Department. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.