Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
11 August 2016
Texas Man Charged with Running Fraudulent Investment CompaniesRead the Press Release
A Texas man was charged with fraud and obstruction of justice in an indictment unsealed today involving two investment companies that allegedly defrauded investors resulting in losses of approximately $900,000.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John R. Parker of the Northern District of Texas and Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Office made the announcement.
Stanley Jonathan Fortenberry, 50, of San Angelo, was charged with three counts of mail fraud, two counts of wire fraud and one count of obstructing an official proceeding. Fortenberry was arrested this morning and made his initial appearance in court this afternoon.
According to the indictment, from 2013 to 2014, Fortenberry ran Wattenberg Energy Partners, which raised funds for oil and gas drilling projects in northern Colorado. Fortenberry allegedly set up the company in his son’s name because Texas and Pennsylvania state securities regulators had previously ordered Fortenberry to not sell unregistered securities in oil drilling projects. The indictment alleges that Fortenberry used a network of salespeople to call and solicit individuals to invest in drilling projects. Rather than designate investors’ funds for drilling projects as promised, the indictment alleges that Fortenberry spent the vast majority of the funds on himself and the company’s fundraising operation. The indictment also alleges that in order to make Wattenberg more appealing to investors, Fortenberry misled investors into believing that Wattenberg had substantive control over the drilling projects when, in reality, Wattenberg was merely a fundraising operation that passed along funds to other companies that actually had control.
From 2010 to 2012, Fortenberry also allegedly ran a separate fraudulent scheme conducted through Premier Investment Fund. According to the indictment, through Premier, Fortenberry raised funds from investors for social media projects run by another company connected to the country music industry. The indictment alleges that Fortenberry misrepresented to investors the profitability of the company and how he would be compensated. The company earned no profits and Fortenberry spent approximately half of the funds raised on himself, according to the indictment.
In total, the indictment alleges that Fortenberry defrauded investors out of approximately $900,000 through both companies.
In October 2014, Fortenberry allegedly gave false and misleading testimony in an administrative proceeding before the U.S. Securities and Exchange Commission (SEC), which was investigating Fortenberry at the time for misusing funds that investors had entrusted to Premier.
The charges in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Dallas Office investigated the case. Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Sean Long of the Northern District of Texas are prosecuting the case. The SEC has provided assistance in this matter.
South Bay Man Pleads Guilty to Obscenity Charge for Sending Photo in Response to Ad to Have Sex with 13-Year-Old GirlRead the Press Release
LOS ANGELES – A San Pedro man who responded to an Internet advertisement to have sex with a young girl and sent a photograph of his genitals has pleaded guilty to a federal obscenity charge.
Joshua Paul Crouch, 28, pleaded guilty yesterday to attempted transfer of obscene material to a minor.
As a result of the guilty plea before United States District Judge John F. Walter, Crouch faces a statutory maximum sentence of 10 years in federal prison when he is sentenced on October 24.
According to court documents, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and other law enforcement agencies, posted an advertisement for commercial sex acts on backpage.com. Crouch responded to the ad on March 30 and agreed to pay $60 to receive oral sex from what he thought was a 13-year-old girl, but who in fact was an undercover law enforcement officer.
During the text conversation with the undercover agent and another “girl” that Crouch thought was 15, he sent a photograph of his genitals to the older “girl” to entice the younger “girl” to engage in prohibited sexual conduct, according to the plea agreement filed in this case.
Crouch followed the directions provided by the undercover agent and was arrested when he arrived at hotel room in San Pedro to have oral sex with the 13-year-old girl in exchange for $60.
“Men who solicit sex from minors are an integral part of the underground sex trade that victimizes young people,” said United States Attorney Eileen M. Decker. “This undercover investigation and federal prosecution demonstrates that we are focusing on identifying customers and commercial sex traffickers who prey upon women and children.”
“As this case makes clear, sexual predators who believe they can stalk minors online anonymously and with impunity are very much mistaken,” said Joseph Macias, special agent in charge for HSI in Los Angeles. “The coercion of minors into prostitution is unconscionable under any circumstances and HSI is using every tool and resource at its disposal to hold the perpetrators in these cases accountable for their crimes.”
As a result of his conviction in this case, Crouch will be required to register as a sex offender.
This case was investigated by HSI’s Human Trafficking Group, the Los Angeles Police Department, the Los Angeles Sheriff's Department, and the U.S. Department of State.
Six Indicted for Conspiring to Grow Marijuana in Shasta Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Salvador Guzman-Juarez, 28, of Mexico; Dolores Castorena, 75, of Los Angeles; Pedro Nolasco-Sanchez, 36, of Mexico; Fidel Nolasco-Sanchez, 32, of Mexico; Zenon Nolasco-Sanchez, 32, of Mexico; and Juan Nolasco-Sanchez, 27, of Mexico, charging them for conspiracy to cultivate marijuana and marijuana cultivation in the Shasta-Trinity National Forest, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between June 1, 2016, and July 8, 2016, the defendants were involved in the cultivation of 10,293 marijuana plants at a site along Big French Creek in Shasta-Trinity National Forest. The defendants were arrested on July 8, 2016. In addition to the cultivation charges, the defendants are charged with committing depredation of federal lands and resources. Salvador Guzman-Juarez, Pedro Nolasco-Sanchez, Fidel Nolasco-Sanchez, Zenon Nolasco-Sanchez, and Juan Nolasco-Sanchez are in custody. Dolores Castorena has been released on bail pending trial.
This case is the product of an investigation by the U.S. Forest Service, the Trinity County Sheriff’s Department, the North State Marijuana Investigations Team, the California National Guard CAMP Team, and the California Department of Fish and Wildlife. Assistant United States Attorney Owen Roth is prosecuting the case.
If convicted, the defendants each face a maximum statutory penalty of five years in prison and a $500,000 fine for the cultivation offenses and up to 10 years in prison and a fine of up to $250,000 for the depredation of public lands and resources offense. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sentencings for August 2 - August 8, 206Read the Press Release
Michelle Lynn Chambers, 35, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 8, 2016, for failure to disclose income. Chambers, as a representative payee for a Supplemental Security Income Benefits recipient, knowingly concealed and failed to disclose her full household income in order to continue to receive those benefits in amounts greater than she was authorized to receive. Chambers received five years of supervised probation and was ordered to pay a $100.00 special assessment and restitution in the amount of $57,900.34. This case was investigated by the Social Security Administration.
Emmanuel Huitron-Guizar, aka Emmanuel Guizar-Valencia, 29, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on August 3, 2016, for illegal re-entry of a previously deported alien into the United States. Huitron-Guizar was arrested in Gillette, Wyoming. He received time served, plus ten days, was ordered to pay $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Joseph David Roberts, 30, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on August 3, 2016, for conspiracy to distribute 50 grams or less of heroin. Roberts was arrested in Cheyenne, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $400.00. This case was investigated by the Wyoming Division of Criminal Investigation.
Sarian Althea Leavitt, 39, of Evanston, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on August 2, 2016, for conspiracy to distribute at least 500 grams of methamphetamine. Leavitt was arrested in Evanston, Wyoming. She received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $400.00. This case was investigated by the Wyoming Division of Criminal Investigation.
Senior Officers of Italian Oil Tanker Admit Concealing the Discharge of Oily Waste at SeaRead the Press Release
NEWARK, N.J. – Two senior engineering officers employed by an Italian shipping company admitted today they deliberately concealed their vessel’s discharge of oily waste into the sea, U.S. Attorney Paul J. Fishman announced.
Girolamo Curatolo, 50, of Custonaci, Sicily, the chief engineer of an oil tanker, the M/T Cielo di Milano, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiring to violate the Act to Prevent Pollution from Ships. Danilo Maimone, 31, of Furci Siculo, Sicily, the ship’s first assistant engineer, pleaded guilty to an information charging him with conspiring to obstruct justice.
According to documents filed in this case and statements made in court:
The vessel, owned by D’Amico Shipping Italia S.p.A. and managed by D’Amico Societa di Navigazione S.p.A., visited ports in New Jersey multiple times, as well as ports in Maryland and Florida. Curatolo admitted that the crew had intentionally bypassed required pollution prevention equipment by discharging oily waste from the engine room through its sewage system into the sea. He also admitted that he falsified the vessel’s Oil Record Book, a required log regularly inspected by the U.S. Coast Guard. Curatolo admitted he made false statements to the Coast Guard during its inspection of the M/T Cielo di Milano in January 2015, instructing lower-level crew members to make false statements and destroying the vessel’s sounding log – which records the contents of storage tanks aboard the vessel, including those containing oily waste – by ripping the pages out and burning it in the vessel’s boiler after the Coast Guard had boarded the vessel.
Maimone admitted concealing the discharge of oily waste as well as causing a false Oil Record Book to be presented to the Coast Guard during its inspection of the vessel. He admitted making false statements and instructing lower-level crew members to make false statements during the January 2015 inspection.
The charges to which Curatolo and Maimone pleaded guilty each carry a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss resulting from the offenses. Sentencing for both is scheduled for Nov. 21, 2016.
U.S. Attorney Fishman credited special agents of the U.S. Coast Guard Investigative Service, under the direction of Special Agent in Charge Richard D. Cox, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorneys Kathleen P. O’Leary of the U.S. Attorney’s Office Health Care and Government Fraud Unit and Kelly Graves of the U.S. Attorney’s Office General Crimes Unit in Newark, and Trial Attorney Brandy Parker of the Environmental Crimes Section of the U.S. Department of Justice Environment and Natural Resources Division.
Defense counsel:
Curatolo: Michael G. Chalos Esq. of New York
Maimone: Ronald A. Sarachan Esq. of Philadelphia
San Antonio Texas Mexican Mafia Member Admits Role in Death of Balcones Heights Police Officer Julian PesinaRead the Press Release
In San Antonio this morning, 35-year-old Texas Mexican Mafia (TMM) member Jerry Idrogo (aka “Spooks”) pleaded guilty to a federal charge claiming responsibility for two murders including the murder of Balcones Heights Police Officer Julian Pesina in May 2014 announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Xavier Rodriguez, Idrogo pleaded guilty to one count of conspiracy to participate in a Racketeering Influenced and Corrupt Organization (RICO). As a result, Idrogo faces up to life in federal prison.
According to court records, Idrogo, a TMM Northside Sergeant, admitted to killing TMM member Billy Padilla in San Antonio on August 26, 2013, for failing to turn over drug proceeds to the organization. Also, Idrogo admitted to participating in the murder of Officer Pesina outside his “Notorious Ink Tattoo and Piercing Studio” on May 4, 2014. The factual basis filed in this case states that although he was a police officer, Pesina was simultaneously claiming membership in the TMM, had tattoos consistent with such membership, and was selling drugs to TMM members. Idrogo, acting upon the orders of a superior, TMM member Ruben “Menace” Reyes, drove his co-defendants, 38-year-old TMM prospect Alfredo Cardona and 27–year-old TMM-member-in-bad-standing Jesse Santibanez, to Pesina’s business where Cardona and Santibanez shot and killed Pesina.
By pleading guilty, Idrogo also admitted to conspiring with others to interfere with Commerce by extortion and to distribute methamphetamine, cocaine and heroin in furtherance of the Texas Mexican Mafia’s criminal enterprise. Idrogo admittedly collected the “dime.” The “dime” is a 10 percent tax imposed by the TMM on individuals who sell narcotics in their territory for assistance in collecting drug debts as well as a degree of protection from robbery and competing drug dealers.
Idrogo remains in federal custody awaiting sentencing scheduled for November 16, 2015. Cardona and Santibanez, who remain in federal custody, await jury selection and trial scheduled for October 17, 2016. Reyes, who faces life imprisonment, is awaiting sentencing in September after pleading guilty last month to five counts of aiding and abetting the using and discharging of a firearm during and in relation to a crime of violence; and, five counts of violent crime (murder) in aid of racketeering (VICAR).
This investigation was conducted by the FBI together with the San Antonio Police Department, Texas Department of Public Safety Criminal Investigations Division, Bexar County Sheriff’s Department, Frio County Sheriff’s Department, and the Texas Department of Criminal Justice.
Porcupine Woman Indicted in Death of ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that a Porcupine, South Dakota, woman has been indicted by a federal grand jury for First Degree Murder, Felony Child Abuse-Aggravated Battery of an Infant, and Felony Child Abuse & Neglect.
Katrina Shangreaux, a/k/a Katrina White Whirlwind, age 28, was indicted on August 9, 2016. Shangreaux appeared before U.S. Magistrate Judge Daneta Wollmann on August 10, 2016, and pleaded not guilty to the Indictment. The penalty upon conviction is mandatory life imprisonment and/or a $250,000 fine and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Shangreaux inflicting blunt trauma to a child, causing his death. The charges are merely an accusation and Shangreaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Bureau of Indian Officers Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Sarah B. Collins and Megan J. Poppen are prosecuting the case.
Shangreaux was remanded to the custody of the U.S. Marshals Service pending trial.
Pittsburgh Man Sentenced to Prison for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 80 months in prison, to be followed by a term of five years’ supervised release, on his conviction of conspiracy to distribute and possess with intent to distribute powder cocaine and crack cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Christopher James Brooks, 34, of Pittsburgh, Pa.
According to information presented to the court, from October 2013, and continuing to in and around April 2014, in the Western District of Pennsylvania and elsewhere, Brooks conspired with others to distribute and possess with the intent to distribute 500 grams or more of powder cocaine, and 280 grams or more of crack cocaine. In addition, during that same time frame, Brooks and several of his co-conspirators possessed firearms in furtherance of that drug trafficking.
Assistant United States Attorney Troy Rivetti and Tonya Sulia Goodman prosecuted this case on behalf of the government.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Brooks.
Phenix City Man Sentenced to 25 Years in Prison for Gun and Drug ChargesRead the Press Release
Montgomery, Alabama – Antonio Darset King, Sr., 47, of Phenix City, Alabama was sentenced today to 25 years in prison following his conviction on federal gun and drug charges, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
In March 2016, a federal jury convicted King of possessing a firearm during a drug trafficking offense, of being a felon in possession of a firearm, and for possessing cocaine with the intent to sell it. Evidence at trial established that in February 2014, Russell County Sheriff’s Office investigators executed a search warrant at King’s Phenix City residence. There they recovered a firearm, more than 5 grams of cocaine, and approximately $3,000 dollars in cash.
Testimony in court showed that King intended to sell the cocaine recovered by investigators and that he had a firearm for the purpose of protecting his drug trafficking trade. Additionally, because King had previously been convicted of a felony, federal law prohibited him from possessing a firearm.
“I truly appreciate the assistance we received from the U.S Attorney’s Office and ATF in this case,” stated Russell County Sheriff Heath Taylor. “King was one of the most dangerous individuals I have encountered during my law enforcement career. The citizens of Russell County are safer today with him off the streets.”
“This focused investigation will have a lasting impact on reducing firearms related violence and taking drugs off the streets of the Phenix City area,” stated ATF Special Agent in Charge Steve Gerido. “This result demonstrates the continued dedication by ATF, the U.S. Attorney’s Office, and the Russell County Sheriff’s Office to identify and investigate violent criminals who lessen the quality of life in our neighborhoods.”
“I am pleased that the court removed this dangerous individual from our community for a significant amount of time and I hope it sends a message,” said U.S. Attorney Beck. “Those who peddle poison and use guns in their trade are a threat to our safety and our way of life.”
The Russell County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated this case. Assistant United States Attorney Todd A. Brown prosecuted the case.
Owner of Bankrupt Berkeley Wine Shop Pleads Guilty to Running A Wine Ponzi SchemeRead the Press Release
OAKLAND – John E. Fox, the owner of Premier Cru, a now-bankrupt wine shop based in Berkeley, has pleaded guilty to wire fraud, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The plea agreement follows the filing of charges in June 2016 that the wine shop owner engaged in fraud.
Fox, 66, of Concord, Calif., co-founded Premier Cru in 1980, and eventually moved it to University Avenue in Berkeley. Premier Cru generally sold wine in two ways: through a physical retail store and through a “pre-arrival” or “wine futures” business. Though its pre-arrival wine business, Premier Cru sold to its customers wine of which Premier Cru had not taken possession. The business was based on the premise that Premier Cru would contract to buy wine from Europe and then, after having contracted to purchase wine, would sell it, through Premier Cru’s website or salespeople, to customers before it arrived in the United States. Specifically, Fox agreed that, through the website, he promised that the company would deliver European wines to customers within a time period of approximately six months to two years after customers had paid for the wine.
According to today’s plea agreement, Fox acknowledged he orchestrated a massive scheme to defraud through Premier Cru’s pre-arrival wine business by selling wine that he knew he would never be able to deliver to his customers. Fox admitted that, in many instances, he falsified purchase orders for wine that he had not contracted to purchase, entered them into Premier Cru’s inventory for sale, and then sold or caused Premier Cru’s salespeople to sell the phantom wine. He acknowledged that, between 2010 to 2015, he sold or attempted to sell approximately $20 million worth of phantom wine that he had never actually purchased prior to entering them onto Premier Cru’s inventory.
In addition, in instances where Fox actually did contract with foreign suppliers on behalf of Premier Cru to purchase wine, he generally promised to pay the foreign suppliers within 30 days. Fox admitted that he knew Premier Cru would not be able to make payment within 30 days, or in some cases, ever, because he embezzled money from Premier Cru’s business accounts and diverted money coming in from current customers to obtain wine for prior customers who had never received their wine.
According to the plea agreement, Fox embezzled funds from the Premier Cru accounts by both using Premier Cru’s business account to make payments for personal expenses and by making substantial cash transfers from the Premier Cru business accounts to personal accounts in his own name and in fake names. Fox used the embezzled funds to pay for personal credit cards; memberships to private golf clubs; the purchase or lease of expensive cars including Corvettes, Ferraris, a Maserati, and various Mercedes-Benzes; and a variety of additional personal expenses, including more than $900,000 on women he met online.
Premier Cru eventually filed for bankruptcy under Chapter 7 of the Bankruptcy Code. At the time of Premier Cru’s bankruptcy, customers had paid at least approximately $45 million for wine that they had not received. On June 28, 2016, Fox was charged with a single count of wire fraud in violation of 18 U.S.C. § 1343.
Fox’s sentencing hearing is scheduled for December 14, 2016, before the Honorable James Donato, U.S. District Judge, in Oakland. The maximum statutory penalty for a violation of 18 U.S.C. § 1343 is twenty years’ imprisonment and $250,000 or twice the amount gained or lost as a result of the scheme. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Benjamin Kingsley is prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Online Retailer Pleads Guilty for Fixing Prices of Wall PostersRead the Press Release
Second Defendant to Plead Guilty in Ongoing Investigation
An e-commerce retailer pleaded guilty today for conspiring to fix the prices of posters sold online, the Department of Justice announced today.
Trod Ltd. (doing business as Buy 4 Less, Buy For Less and Buy-For-Less-Online), a U.K. company headquartered in Birmingham, England, pleaded guilty to fixing the prices of certain posters sold online through Amazon Marketplace from as early as September 2013 until in or about January 2014. Trod Ltd. was indicted by a federal grand jury in the Northern District of California in San Francisco on Aug. 27, 2015.
“E-commerce is among the fastest growing segments of our economy,” said Acting Assistant Attorney General Renata Hesse for the Justice Department’s Antitrust Division. “For this robust growth to continue, customers must be confident that they will receive the same benefits of vigorous competition on the web as they do at brick-and-mortar stores. We will continue to ensure that happens by investigating and prosecuting schemes that harm online shoppers.”
According to the indictment, Trod Ltd. and its co-conspirators agreed to adopt specific pricing algorithms for the sale of certain posters sold on Amazon Marketplace, with the goal of offering online shoppers the same price for the same product and coordinating changes to their respective prices.
This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online wall décor industry, which is being conducted by the Antitrust Division’s San Francisco Office with the assistance of the FBI’s San Francisco Division. Anyone with information on price fixing or other anticompetitive conduct related to other products in the wall décor industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at 415-553-7400.
Ohio man pled guilty to possessing counterfeit moneyRead the Press Release
CLARKSBURG, WEST VIRGINIA –Donald R. Jordan, 26, of Galloway, Ohio pled guilty to possession of counterfeit money, United States Attorney William J. Ihlenfeld, II, announced.
Jordan was found in possession of two counterfeit one hundred dollar bills, one counterfeit fifty dollar bill, and two counterfeit twenty dollar bills in Harrison County, WV.
He pled guilty to one count of “Possessing Counterfeit Obligations and Securities.” He faces up to twenty years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andy R. Cogar and Sarah W. Montoro prosecuted the case on behalf of the government. The United States Secret Service investigated.U.S. District Judge Irene M. Keeley presided.
Odessa Tax Return Preparer Indicted by Federal Grand JuryRead the Press Release
In Midland, a federal grand jury indicted Juan Alfonso Gonzalez Camacho for his role in a scheme that resulted in the issuance of fraudulent Income Tax return refunds announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
The indictment, returned on June 22, 2016, and unsealed today in El Paso, charges Camacho with 14 counts of aiding and abetting the preparation of a false Tax Return. According to the indictment, from January 2011 until April 15, 2013, Camacho prepared and filed income tax returns which claimed deductions to which the defendant knew the taxpayers were not entitled. Based on the 14 counts charged in the indictment, authorities estimate that Camacho’s actions resulted in fraudulent refunds totaling an estimated $162,000.
IRS Criminal Investigation Special Agent in Charge William Cotter said, “IRS-Criminal Investigation Special Agents use their investigative and financial expertise to detect and hold accountable abusive preparers who falsely tell taxpayers they are eligible for tax credits that they are not entitled to receive. Taxpayers should always insist on reviewing their return before signing it, and question any items they do not fully understand.”
Camacho was arrested in El Paso yesterday and had his initial appearance in federal court there this afternoon. During his initial appearance, Camacho was placed on a $10,000 bond. His arraignment is scheduled for 3:45pm on August 18, 2016, before United States Magistrate Judge David Counts in Midland.
This continuing investigation is being conducted by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney William F. Lewis, Jr. is prosecuting this case on behalf of the Government.
Oakdale Man Admits Defrauding Prospective Homebuilders and InvestorsRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to a charge of wire fraud, United States Attorney David J. Hickton announced today.
Thomas Slack, age 67, of Oakdale, Pa., pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Slack engaged in a scheme to fraudulently obtain money from prospective home builders seeking financing through loan programs administered through the United States Department of Agriculture ("USDA") Rural Development offices. Slack was a member and director of the Great Falls Development Group, a company which falsely purported to be an established residential real estate developer and builder. Slack falsely represented to prospective home builders and investors that he was associated with the USDA's Rural Development loan programs and that he could underwrite and pre-qualify applicants for the loan programs. Slack's false representations induced prospective home builders and investors to send approximately $24,425 to him, believing that he was actively engaged in building homes and securing financing for the homes through the USDA, when, in fact, he was not.
Judge Schwab scheduled sentencing for Dec. 16, 2016 at 9 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The United States Department of Agriculture Office of the Inspector General conducted the investigation that to the prosecution of Slack.
Northern Michigan Woman Charged WIth Wire Fraud and Money Laundering in Multi-Million Dollar Scheme to DefraudRead the Press Release
Sarah Frances Bolhuis Has Agreed To Plead Guilty For Her Role In A $7.5 Million Scheme
GRAND RAPIDS, MICHIGAN — Sarah Frances Bolhuis, 70, of Antrim County, Michigan, was charged with two felonies in connection with a scheme to defraud others of their money, U.S. Attorney Patrick A. Miles, Jr. announced today. Federal investigators believe that more than 50 individuals in Michigan, Indiana, Illinois, and Florida may have fallen victim to the fraud and collectively lost more than $5 million in the scheme.
The felony charges filed today in U.S. District Court in Grand Rapids allege that Sarah Bolhuis devised and executed a scheme to defraud to obtain money from others between 2006 and 2015. As part of the scheme, the government alleges that Bolhuis, operating under the names American Financial (AMFI), TriLogic, and Prestige Benefits, falsely represented to prospective clients that she was engaged in the business of providing various financial services and investment loan opportunities. In truth, as alleged in the Felony Information, Bolhuis did not use client money as promised; instead, she made payments to a business partner, made return-of-principal and other payments to clients, paid "finder fees" to individuals who successfully recruited new clients, and paid various personal living and entertainment expenses. Bolhuis also is alleged to have laundered proceeds of the fraud by depositing into a bank account money she obtained from one victim and withdrawing $27,500 from the same account to make a payment to another victim.
Bolhuis has signed a plea agreement in which she waived her right to indictment by a Grand Jury and agreed to enter guilty pleas to the wire fraud and money laundering charges. In the plea agreement filed with the Court today, Bolhuis has admitted making the following false and fraudulent misrepresentations and promises concerning the financial services she claimed to provide:
- She falsely claimed that her business provided short term funding to adult foster care homes and to individuals seeking debt refinancing;
- She falsely claimed she would invest certain client money in overseas accounts;
- She falsely represented that certain funds would be invested in silver coins;
- She falsely promised that she was making payments on a client’s home mortgage (including a second mortgage taken out by the client to fund investments with Bolhuis) using interest and/or fees earned from the investments; and
- She promised to pay some of her clients between 3% and 5% interest per month on the principal monies provided to her by her clients. Some clients were promised even higher interest rates.
Additionally, Bolhuis admitted in the plea agreement that the total amount of money obtained in the scheme was approximately $7.5 million. Although some of those funds were paid to participants during the course of the scheme, more than $5 million in fraudulent proceeds must be repaid to the victims.
Bolhuis faces a maximum sentence of 20 years in prison on the fraud charge and a maximum sentence of 10 years in prison for money laundering. The Court will determine the sentence after considering the federal sentencing guidelines and statutory sentencing factors. An arraignment and change of plea will be scheduled with the Court. Until a defendant enters a plea and is found guilty, charges in a Felony Information are merely accusations, and a defendant is presumed innocent unless and until proven guilty in a court of law.
Internal Revenue Service Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI) are investigating this matter. Assistant U.S. Attorney Christopher O’Connor is prosecuting the case.
Individuals who believe they may be victims of the fraud and have not yet been interviewed by the Internal Revenue Service or the Federal Bureau of Investigation may contact the FBI office in Traverse City at (231) 946-7201 to provide information concerning their participation. Victims of the fraud may obtain information concerning this case, including a copy of the Felony Information and Plea Agreement, and notifications of court dates, by visiting the U.S. Attorney’s victim assistance website at: http://www.justice.gov/usao-wdmi/victim-and-witness-assistance-program/vw-large-cases, or by calling the victim coordinator at (616) 808-2034.
END
North Las Vegas Man Sentenced to 30 Years in Prison for 2011 Robbery of Convenience Store/Gas Station with ShotgunRead the Press Release
LAS VEGAS, Nev. – A North Las Vegas man with a violent criminal history who robbed a Las Vegas convenience store and gas station with a long-barreled shotgun in the summer of 2011, was sentenced today by U.S. District Judge Andrew P. Gordon to 30 years in prison, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Tracey Brown, 40, was convicted by a jury in 2015 of one count of interference with commerce by robbery, one count of brandishing a firearm in relation to a crime of violence, and one count of felon in possession of a firearm. A co-defendant, Teshae Gallon, pleaded guilty in 2013 to brandishing a firearm in furtherance of a crime of violence, and was sentenced to three years in prison.
“We focus our federal prosecutions of persons who are committing commercial store robberies on those who have prior serious felony convictions,” said U.S. Attorney Bogden. “These persons are more appropriately handled in the federal system, where there is no parole.”
According to court records and trial testimony, on July 26, 2011, Brown, armed with a long-barrel shotgun, robbed a gas station mini-mart located on S. Rainbow Boulevard in Las Vegas. After robbing the store, Brown got into a getaway car driven by Gallon. Their vehicle was stopped a short while later, and Brown fled. Brown was apprehended when a canine dog found him hiding under a bush.
Brown has six violent felony convictions in Nevada. In 1994, he was convicted of burglary and grand larceny auto while possessing a shotgun. In 2000, he was convicted of burglary with a deadly weapon and robbery with a deadly weapon, as well as conspiracy to commit robbery. In 2010, he was convicted of robbery. In 2015, he was convicted of multiple counts of first degree kidnapping, burglary with a deadly weapon, robbery with a deadly weapon, burglary and robbery.
This case was investigated by the FBI, the Las Vegas Metropolitan Police Department, and the Las Vegas Deputy City Marshal Unit as part of the Safe Streets Task Force and Project Safe Neighborhoods program. The case was prosecuted by Assistant U.S. Attorney Daniel J. Cowhig.
North Carolina Man Pleads Guilty to Check Fraud SchemeRead the Press Release
LYNCHBURG, VIRGINIA – A North Carolina man, who conspired with others to make money by cashing checks that had been stolen or altered, pled guilty yesterday to federal conspiracy and aggravated identity theft charges, United States Attorney John P. Fishwick Jr. announced.
Mario LaShawn Clinton, 39, of Mount Holly, North Carolina, pled guilty Wednesday afternoon in the United States District Court for the Western District of Virginia in Lynchburg to one count of conspiracy to commit bank fraud and related offenses against the United States and two counts of aggravated identity theft.
“Mr. Clinton, and those he conspired with, used a variety of tools and techniques to alter checks and steal money from unsuspecting individuals and businesses,” United States Attorney Fishwick said today. “We will continue to be vigilant in holding accountable those who commit frauds against our banking system, individuals and the United States.”
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney Laura Day Rottenborn and Special Assistant United States Attorney Kari Munro, Clinton, and others he conspired with, agreed to help each other make money by cashing checks that were stolen and altered. Typically, members of the conspiracy, including Clinton, stole checks from the mail in and around business locations, including corporate office parks and other business districts.
Clinton, and other members of the conspiracy, altered the stolen checks, or caused them to be altered, to reflect a new payee name, and in some instances, an increased amount. Members of the conspiracy used razor blades, erasers, typewriters and other tools to alter the checks. Clinton purchased and disposed of typewriters frequently in order to dispose of key evidence of his crimes.
In addition, Clinton and other members of the conspiracy recruited individuals to cash the fraudulent checks at issuing banks. Typically the conspiracy used women for this role, however men were used as check cashers on occasion. The conspiracy primarily took place in the Western District of Virginia and Western District of North Carolina, however, members of the conspiracy did make check cashing trips to locations as far away as Pennsylvania, Missouri and Tennessee.
The investigation of the case was conducted by the United States Postal Inspection Service, the Franklin County Sheriff’s Office the Bedford County Sheriff’s Office and the Mount Holly, North Carolina Police Department. Assistant United States Attorney Laura Day Rottenborn and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Non-Indian Sex Offender from Vanderwagon Pleads Guilty to Sexual Abuse and Kidnapping Charges Involving Navajo ChildRead the Press Release
ALBUQUERQUE – William Detwiler, 67, a non-Indian who resides in Vanderwagon, N.M., pled guilty today in federal court in Albuquerque, N.M., to child sexual abuse and kidnapping charges. Under the terms of his plea agreement, Detwiler will be sentenced within the range of 120 to 150 months in federal prison followed by a term of supervised release to be determined by the court. Detwiler will be required to register as a sex offender after completing his prison sentence.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and New Mexico State Police Chief Pete N. Kassetas.
Detwiler, who has a prior conviction for criminal sexual contact with a minor, was arrested on May 31, 2016, on a four-count indictment, charging him with two counts of aggravated child sexual assault and two counts of kidnapping. According to the indictment, Detwiler kidnapped an Indian child under the age of 16 years and sexually abused the victim on two occasions between Nov. 2013 and June 2014. Detwiler was charged with committing the four crimes on the Navajo Indian Reservation in McKinley County, N.M.
During today’s plea hearing, Detwiler pled guilty to a felony information charging him with abusive sexual contact and kidnapping. In entering the guilty plea, Detwiler admitted that in Nov. 2013, 2013, he engaged in sexual contact with the victim and acknowledged that the victim was under the age of 16 years. Detwiler further admitted that on a date between Aug. 1, 2014 and Sept. 30, 2014, he kidnapped a different Indian child under the age of 16 years.
Detwiler remains in federal custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the New Mexico State Police. It is being prosecuted by Assistant U.S. Attorneys Nicholas Marshall and Novaline D. Wilson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates under this initiative.
New York Man Pleads Guilty to Conspiracy to Provide Material Support to ISIL in Connection with Planned New Year’s Eve AttackRead the Press Release
Emanuel L. Lutchman, 26, of Rochester, New York, pleaded guilty today to conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL).
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney William J. Hochul Jr. of the Western District of New York and Special Agent in Charge Adam S. Cohen of the FBI’s Buffalo, New York Division made the announcement.
Lutchman pleaded guilty before U.S. District Judge Frank P. Geraci Jr. of the Western District of New York. He has been detained in federal custody since his arrest by members of the FBI’s Rochester Joint Terrorism Task Force (JTTF) on Dec. 30, 2015. Sentencing is scheduled for Nov. 15, 2016, before Judge Geraci, where Lutchman faces a statutory maximum sentence of 20 years in prison, a $250,000 fine and a lifetime term of supervised release. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
“Emanuel Lutchman admitted to conspiring with an ISIL member located overseas and planned to kill innocent civilians on U.S. soil in the name of the terrorist organization,” said Assistant Attorney General Carlin. “Countering terrorist threats remains the highest priority of the National Security Division, and we will continue our efforts to bring to justice those who conspire to provide material support to foreign terrorist organizations. I want to thank the many agents, analysts and prosecutors who contributed to the disruption of this deadly plot.”
“Residents of this community can now sleep better knowing that a person who wanted to kill in the name of an infamous terrorist group – right on the streets of our city – will no longer be a threat,” said U.S. Attorney Hochul.
As part of his guilty plea, Lutchman admitted that he conspired with an individual known as Abu Issa Al-Amriki, a now-deceased ISIL member in Syria, and planned to conduct an attack against civilians using knives and a machete on New Year’s Eve in 2015. Lutchman admitted that he intended to conduct an attack that could be claimed by ISIL and that could also help him gain membership into ISIL when he thereafter traveled overseas to join the terrorist organization.
According to court documents, Lutchman posted on social media expressions of support for ISIL, including images, videos and documents relating to ISIL and violent jihad. Lutchman also downloaded and watched terrorism-related videos, including videos relating to ISIL and the now-deceased terrorist Anwar al-Awlaki. The defendant also maintained a digital collection of documents relating to terrorism and terrorist groups, including all of the issues of Inspire magazine and other documents designed to provide guidance to individuals seeking to travel overseas to engage in violent jihad or engage in “lone wolf” terrorist attacks in the United States and elsewhere.
In December 2015, Lutchman obtained an online document written by an ISIL member in Syria, in which the ISIL member provided guidance to ISIL supporters who were seeking to travel overseas to join ISIL, including advice about preparation for violent jihad; the use of security measures while traveling to avoid apprehension by law enforcement authorities; instructions for killing non-believers and infidels, or “kuffar;” and contact information for the ISIL member and Al-Amriki.
According to the plea agreement, on Dec. 25, 2015, Lutchman initiated online contact with Al-Amriki, who identified himself as an ISIL member in Syria. In a series of subsequent communications, Al-Amriki told Lutchman to plan an attack on New Year’s Eve and kill a number of kuffar. Al-Amriki advised the defendant to write something before the attack and give it to the ISIL member so that after the attack the ISIL member could post it online to announce Lutchman’s allegiance to ISIL. Al-Amriki told Lutchman that whatever Lutchman sends to ISIL, they would keep it until the attack was complete and then post it and publicize the attack on the Internet. Al-Amriki emphasized that Lutchman is “behind enemy lines,” that Lutchman was the closest person to their most hated enemy and that Lutchman has the chance to do things that ISIL wishes it could do. Lutchman ultimately told Al-Amriki that he has a couple of “brothers” that want to make hijra and plan an attack. Al-Amriki encouraged Lutchman to complete an attack and stated that, if the Syrian borders open and the attack does not succeed, he would help Lutchman and his “brothers” make hijra. Al-Amriki told Lutchman to show ISIL how serious he is, stating, “New years is here soon. Do operations and kill some kuffar.” Lutchman told Al-Amriki that he hates it in the United States, that he wants to join the ranks of ISIL and that he is ready to “give everything up” to be in Syria with ISIL. Al-Amriki told Lutchman, for the time being, to do what he can in the United States.
In late December 2015, Lutchman was communicating with other individuals (referred to as Individuals A, B, and C in the plea agreement) who, unbeknownst to Lutchman, were cooperating with the FBI. In these communications, Lutchman made statements expressing his strong support of ISIL and his desire to travel overseas to join ISIL, and also discussed in detail his online communications with Al-Amriki and the ISIL member. In subsequent communications, Lutchman referred at various times to Individuals A, B and C as “brothers” who would be involved in the New Year’s Eve attack.
Lutchman admitted that on Dec. 27, 2015, he and Al-Amriki discussed potential targets, and Al-Amriki told Lutchman to find the most populated area and kill as many people as possible and reiterated that, after the operation was done, he would vouch for Lutchman and the other participants in the attack and he would start sending “brothers” to ISIL in Libya, to which Lutchman agreed.
Lutchman admitted that he met with Individual C on Dec. 28, 2015, and indicated that he wanted to target a club or bar and proposed that they kidnap a couple of people and kill them. Lutchman stated that they would have to wear masks during the operation in order to avoid getting caught by law enforcement authorities.
Lutchman admitted that on the evening of Dec. 29, 2015, Lutchman and Individual C went to a store in Rochester to purchase weapons and supplies for the attack, including two black ski masks, two knives, a machete, zip-ties, duct tape, ammonia and latex gloves. Lutchman told Individual C that “the operation is a go,” and noted that any victims would have to be killed. The defendant and Individual C discussed making a video before the operation, at Al-Amriki’s direction, in which they would explain their rationale for the attack and swear bayah (allegiance) to the leader of ISIL, Abu Bakr al-Baghdadi. Lutchman said that he planned to release the video after the completion of the attack.
Lutchman admitted that on Dec. 30, 2015, he made a video pledging allegiance to ISIL and al-Baghdadi, and stated that ISIL was going to establish the caliphate in the land of Islam. In reference to the planned New Year’s Eve attack, Lutchman stated, “the blood that you spill of the Muslim overseas we gonna spill the blood of the kuffar,” and asked Allah to “make this a victory.” In the video, Lutchman covered all of his face except for his eyes and he held one index finger in the air, which is a sign commonly used by ISIL members and supporters. Immediately thereafter, law enforcement agents arrested Lutchman and recovered the items purchased by Lutchman and Individual C the previous day from Lutchman’s residence.
The investigation was conducted by the FBI’s Rochester JTTF. The case is being prosecuted by Assistant U.S. Attorney Brett A. Harvey of the Western District of New York, with the assistance of Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.
New York Man Pleads Guilty to Conspiracy to Provide Material Support to ISIL in Connection with Planned New Year’s Eve AttackRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051WASHINGTON – Emanuel L. Lutchman, 26, of Rochester, New York, pleaded guilty today to conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL).
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney William J. Hochul Jr. of the Western District of New York and Special Agent in Charge Adam S. Cohen of the FBI’s Buffalo, New York Division made the announcement.
Lutchman pleaded guilty before U.S. District Judge Frank P. Geraci Jr. of the Western District of New York. He has been detained in federal custody since his arrest by members of the FBI’s Rochester Joint Terrorism Task Force (JTTF) on Dec. 30, 2015. Sentencing is scheduled for November 15, 2016, at 3:30 p.m. before Judge Geraci, where Lutchman faces a statutory maximum sentence of 20 years in prison, a $250,000 fine and a lifetime term of supervised release. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
“Emanuel Lutchman admitted to conspiring with an ISIL member located overseas and planned to kill innocent civilians on U.S. soil in the name of the terrorist organization,” said Assistant Attorney General Carlin. “Countering terrorist threats remains the highest priority of the National Security Division, and we will continue our efforts to bring to justice those who conspire to provide material support to foreign terrorist organizations. I want to thank the many agents, analysts and prosecutors who contributed to the disruption of this deadly plot.”
“Residents of this community can now sleep better knowing that a person who wanted to kill in the name of an infamous terrorist group – right on the streets of our city – will no longer be a threat,” said U.S. Attorney Hochul.
As part of his guilty plea, Lutchman admitted that he conspired with an individual known as Abu Issa Al-Amriki, a now-deceased ISIL member in Syria, and planned to conduct an attack against civilians using knives and a machete on New Year’s Eve in 2015. Lutchman admitted that he intended to conduct an attack that could be claimed by ISIL and that could also help him gain membership into ISIL when he thereafter traveled overseas to join the terrorist organization.
According to court documents, Lutchman posted on social media expressions of support for ISIL, including images, videos and documents relating to ISIL and violent jihad. Lutchman also downloaded and watched terrorism-related videos, including videos relating to ISIL and the now-deceased terrorist Anwar al-Awlaki. The defendant also maintained a digital collection of documents relating to terrorism and terrorist groups, including all of the issues of Inspire magazine and other documents designed to provide guidance to individuals seeking to travel overseas to engage in violent jihad or engage in “lone wolf” terrorist attacks in the United States and elsewhere.
In December 2015, Lutchman obtained an online document written by an ISIL member in Syria, in which the ISIL member provided guidance to ISIL supporters who were seeking to travel overseas to join ISIL, including advice about preparation for violent jihad; the use of security measures while traveling to avoid apprehension by law enforcement authorities; instructions for killing non-believers and infidels, or “kuffar;” and contact information for the ISIL member and Al-Amriki.
According to the plea agreement, on Dec. 25, 2015, Lutchman initiated online contact with Al-Amriki, who identified himself as an ISIL member in Syria. In a series of subsequent communications, Al-Amriki told Lutchman to plan an attack on New Year’s Eve and kill a number of kuffar. Al-Amriki advised the defendant to write something before the attack and give it to the ISIL member so that after the attack the ISIL member could post it online to announce Lutchman’s allegiance to ISIL. Al-Amriki told Lutchman that whatever Lutchman sends to ISIL, they would keep it until the attack was complete and then post it and publicize the attack on the Internet. Al-Amriki emphasized that Lutchman is “behind enemy lines,” that Lutchman was the closest person to their most hated enemy and that Lutchman has the chance to do things that ISIL wishes it could do. Lutchman ultimately told Al-Amriki that he has a couple of “brothers” that want to make hijra and plan an attack. Al-Amriki encouraged Lutchman to complete an attack and stated that, if the Syrian borders open and the attack does not succeed, he would help Lutchman and his “brothers” make hijra. Al-Amriki told Lutchman to show ISIL how serious he is, stating, “New years is here soon. Do operations and kill some kuffar.” Lutchman told Al-Amriki that he hates it in the United States, that he wants to join the ranks of ISIL and that he is ready to “give everything up” to be in Syria with ISIL. Al-Amriki told Lutchman, for the time being, to do what he can in the United States.
In late December 2015, Lutchman was communicating with other individuals (referred to as Individuals A, B, and C in the plea agreement) who, unbeknownst to Lutchman, were cooperating with the FBI. In these communications, Lutchman made statements expressing his strong support of ISIL and his desire to travel overseas to join ISIL, and also discussed in detail his online communications with Al-Amriki and the ISIL member. In subsequent communications, Lutchman referred at various times to Individuals A, B and C as “brothers” who would be involved in the New Year’s Eve attack.
Lutchman admitted that on Dec. 27, 2015, he and Al-Amriki discussed potential targets, and Al-Amriki told Lutchman to find the most populated area and kill as many people as possible and reiterated that, after the operation was done, he would vouch for Lutchman and the other participants in the attack and he would start sending “brothers” to ISIL in Libya, to which Lutchman agreed.
Lutchman admitted that he met with Individual C on Dec. 28, 2015, and indicated that he wanted to target a club or bar and proposed that they kidnap a couple of people and kill them. Lutchman stated that they would have to wear masks during the operation in order to avoid getting caught by law enforcement authorities.
Lutchman admitted that on the evening of Dec. 29, 2015, Lutchman and Individual C went to a store in Rochester to purchase weapons and supplies for the attack, including two black ski masks, two knives, a machete, zip-ties, duct tape, ammonia and latex gloves. Lutchman told Individual C that “the operation is a go,” and noted that any victims would have to be killed. The defendant and Individual C discussed making a video before the operation, at Al-Amriki’s direction, in which they would explain their rationale for the attack and swear bayah (allegiance) to the leader of ISIL, Abu Bakr al-Baghdadi. Lutchman said that he planned to release the video after the completion of the attack.
Lutchman admitted that on Dec. 30, 2015, he made a video pledging allegiance to ISIL and al-Baghdadi, and stated that ISIL was going to establish the caliphate in the land of Islam. In reference to the planned New Year’s Eve attack, Lutchman stated, “the blood that you spill of the Muslim overseas we gonna spill the blood of the kuffar,” and asked Allah to “make this a victory.” In the video, Lutchman covered all of his face except for his eyes and he held one index finger in the air, which is a sign commonly used by ISIL members and supporters. Immediately thereafter, law enforcement agents arrested Lutchman and recovered the items purchased by Lutchman and Individual C the previous day from Lutchman’s residence.
The investigation was conducted by the FBI’s Rochester JTTF. The case is being prosecuted by Assistant U.S. Attorney Brett A. Harvey of the Western District of New York, with the assistance of Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.
New Orleans Man Pleads Guilty in Interstate Heroin CaseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LEJEUNE HARRIS, age 43, of New Orleans, pled guilty today to one count of conspiracy to distribute one kilogram or more of heroin, one count of possession with intent to distribute 100 grams or more heroin, and one count of attempted possession with intent to distribute 100 grams or more heroin.
According to court records, law enforcement officers found four packages of heroin weighing one kilogram in total during a traffic stop of a Fiat on Interstate-10 East in Calcasieu Parish. The driver admitted that she had been paid $1,000 in cash to drive the heroin from LARRY DUPOR in Houston to HARRIS at a car wash in New Orleans East. The driver stated that she had made similar trips before to deliver heroin between DUPOR and HARRIS, and she agreed to assist law enforcement by following through with a delivery of ‘sham’ heroin to HARRIS. The driver was instructed by DUPOR to deliver three of the four heroin packages to HARRIS, and she proceeded to the car wash in New Orleans East under law enforcement surveillance with three ‘sham’ packages. There she was met by HARRIS, who took the ‘sham’ packages weighing approximately 750 kilograms in total and then handed the driver $2,000 in cash. HARRIS entered the car wash office, and surveillance agents then entered the scene and detained HARRIS. Agents obtained a search warrant for the car wash office and recovered an additional 479 grams of heroin in a hidden area where the three packages of ‘sham’ heroin were also found.
HARRIS faces a term of imprisonment of at least 20 years and up to life for the conspiracy charge, due in part to a prior felony drug conviction. U.S. District Judge Jane Triche Milazzo set sentencing on November 10, 2016. DUPOR is scheduled for re-arraignment before Judge Milazzo on August 25, 2016.
U.S. Attorney Polite praised the work of the Homeland Security Investigations in investigating this matter. Assistant United States Attorney Michael B. Redmann is in charge of the prosecution.
New Orleans Business Owner Sentenced to 80 Months in Prison for Role in $3.3 Million Fraud SchemeRead the Press Release
WASHINGTON – The owner of a New Orleans company that defrauded Medicare of more than $3.3 million was sentenced today to 80 months in prison for directing the scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office and Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Regional Office made the announcement.
Tracy Richardson Brown, 46, of New Orleans, was sentenced by U.S. District Judge Stanwood R. Duval Jr. of the Eastern District of Louisiana, who also ordered Brown to pay $2,004,391.63 in restitution.
On April 30, 2016, Brown, who owned and operated medical equipment supply company Psalms 23 DME LLC (Psalms), was convicted on 18 counts of health care fraud, conspiracy and related charges. Evidence introduced at the five-day trial showed that Brown paid patient recruiters for the names and billing information of Medicare beneficiaries in and around New Orleans. The evidence that was presented also showed that Brown used this information to cause Psalms to bill Medicare for power wheelchairs, accessories and various knee, elbow and back braces supposedly provided to these beneficiaries. However, according to the evidence presented at trial, the vast majority of these patients did not need, and often did not receive or even want, this equipment. The evidence at trial demonstrated that Brown caused Psalms to bill Medicare for more than $3.3 million in claims, a vast percentage of which were fraudulent, and Medicare paid Psalms approximately $2 million on these claims. At her sentencing, Judge Duval stated that the sentence was based, in part, upon Brown’s use of elderly people to commit a “reprehensible crime.”
The FBI and HHS-OIG investigated the case. Fraud Section Trial Attorney William Kanellis and Assistant U.S. Attorney Patrice Sullivan of the Eastern District of Louisiana in New Orleans prosecuted the case.
New Orleans Business Owner Sentenced to 80 Months in Prison for Role in $3.3 Million Fraud SchemeRead the Press Release
The owner of a New Orleans company that defrauded Medicare of more than $3.3 million was sentenced today to 80 months in prison for directing the scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Regional Office made the announcement.
Tracy Richardson Brown, 46, of New Orleans, was sentenced by U.S. District Judge Stanwood R. Duval Jr. of the Eastern District of Louisiana, who also ordered Brown to pay $2,004,391.63 in restitution.
On April 30, 2016, Brown, who owned and operated medical equipment supply company Psalms 23 DME LLC (Psalms), was convicted on 18 counts of health care fraud, conspiracy and related charges. Evidence introduced at the five-day trial showed that Brown paid patient recruiters for the names and billing information of Medicare beneficiaries in and around New Orleans. The evidence that was presented also showed that Brown used this information to cause Psalms to bill Medicare for power wheelchairs, accessories and various knee, elbow and back braces supposedly provided to these beneficiaries. However, according to the evidence presented at trial, the vast majority of these patients did not need, and often did not receive or even want, this equipment. The evidence at trial demonstrated that Brown caused Psalms to bill Medicare for more than $3.3 million in claims, a vast percentage of which were fraudulent, and Medicare paid Psalms approximately $2 million on these claims. At her sentencing, Judge Duval stated that the sentence was based, in part, upon Brown’s use of elderly people to commit a “reprehensible crime.”
The FBI and HHS-OIG investigated the case. Fraud Section Trial Attorney William Kanellis and Assistant U.S. Attorney Patrice Sullivan of the Eastern District of Louisiana in New Orleans prosecuted the case.
New Jersey Man Charged with Possession with Intent to Distribute HeroinRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal Grand Jury in Harrisburg returned an indictment yesterday charging Manel Smith, age 39, with possession with intent to distribute heroin. Smith is a resident of New Jersey and was driving a car through Lebanon County when he was stopped.
This matter was investigated by the Pennsylvania State Police and the Drug Enforcement Agency. Prosecution has been assigned to Assistant U.S. Attorney Chelsea Schinnour.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 40 years in prison, 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.
# # #
New Haven Man Pleads Guilty to Federal Carjacking OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KYLE VALENTINE, 25, of New Haven, pleaded guilty today before U.S. Magistrate Judge Robert A. Richardson in Hartford to a federal carjacking offense.
According to court documents and statements made in court, on January 1, 2016, two men from out of state who were driving a rented 2015 Volkswagen Passat were victims of an armed carjacking in the vicinity of Hobart Street and Myrtle Street in Meriden. The victims reported that they had stopped to ask an individual, later identified as VALENTINE, for directions to a gas station. VALENTINE told the victims to follow his car, which they did. After traveling a few minutes, VALENTINE’s car stopped and another individual pointed a handgun at one of the victims who was sitting in the passenger seat of the car, opened the door and stated “I want everything.” The victims exited the car and VALENTINE and the other individual stole their wallets and cell phones and then drove away in the Passat.
VALENTINE pleaded guilty to one count of taking a motor vehicle from a person by force and violence or by intimidation, an offense that carries a maximum term of imprisonment of 15 years. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on November 2, 2016.
VALENTINE is detained pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the East Haven, Meriden, Milford and New Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Mississippi Woman Sentenced to 12 Years in Prison for Conspiring to Provide Material Support to ISILRead the Press Release
Jaelyn Delshaun Young, 20, of Starkville, Mississippi, was sentenced today to serve 144 months in prison for conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and Special Agent in Charge Donald Alway of the FBI’s Jackson, Mississippi Division made the announcement.
On March 30, Young pleaded guilty before Chief U.S. District Judge Sharion Aycock of the Northern District of Mississippi, who imposed today’s sentence and ordered Young to serve a 15 year term of supervised release following her imprisonment.
Young pleaded guilty to conspiring with Muhammad Oda Dakhlalla, 23, also of Starkville, to provide material support to ISIL. Dakhlalla pleaded guilty to the same charge on March 13 and will be sentenced on Aug. 24.
The investigation was conducted by the FBI’s Jackson Division Joint Terrorism Task Force and the Washington Field Office. The case was prosecuted by Assistant U.S. Attorneys Clay Joyner and Bob Norman of the Northern District of Mississippi and Trial Attorney Rebecca Magnone of the National Security Division’s Counterterrorism Section.
Mississippi Woman Sentenced in Mail Fraud InvestigationRead the Press Release
OXFORD, Mississippi – U.S. Attorney Felicia C. Adams of the Northern District of Mississippi, Inspector in Charge Tom Noyes of the U.S. Postal Inspection Service, and U.S. Veteran’s Affair Resident Agent in Charge John Ramsey announce that Tammi Henderson Palasini, 53, of Indianola, Mississippi, was sentenced yesterday by Chief U.S. District Judge Sharion Aycock to 53 months in prison, concurrent with the sentence imposed by the State of Mississippi, 3 years Supervised Release following imprisonment and restitution in the amount of $2,441,884.01.
Palasini had previously plead guilty to devising and executing a scheme to defraud investors, including U.S. Military veterans, through the use of the U.S. Mail, in violation of 18 U.S.C. 1341.
U.S. Attorney Felicia C. Adams said, “The acts committed by Ms. Palasini tell a disturbing tale of avarice and greed. She defrauded veterans and other investors for her own financial gain. The sentence Palasini received reinforces the message that federal courts view fraud as a serious crime that warrants significant punishment. The United States Attorney’s Office is committed to holding fraudsters like Palasini accountable for their illegal activities.”
Palasini was remanded to the custody of the U.S. Marshals Service to await transfer to the facility designed by the Bureau of Prison for service of the sentence.
The investigation was conducted by the U.S. Postal Inspection Service and U.S. Department of Veteran Affairs, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Robert W. Coleman II.
Mexican National Indicted for Illegal Re-EntryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FAUSTINO JUAREZ-CASTILLO, age 31, was charged today in a one-count Indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the Indictment, JUAREZ-CASTILLO reentered the United States after he was previously deported on October 28, 2011. If convicted, JUAREZ-CASTILLO faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Members of Seattle Drug Trafficking Organization Indicted for Distribution of HeroinRead the Press Release
SEATTLE – The leader of a multi-national drug trafficking organization was arrested earlier this week and was returned to the United States yesterday from Mexico, announced U.S. Attorney Annette L. Hayes. Four members of the organization were arrested June 23, 2016, in Washington State. Conspiracy leader RICARDO RAMACHO, aka Ricky Ramacho, 34, fled from law enforcement from his residence in Mexico. He was located and arrested August 9, 2016. The indictment follows a two year investigation spanning multiple states and Mexico. It charges five individuals with distributing large amounts of heroin – some of it smuggled from Arizona to Washington hidden behind door panels in rental cars. During the June arrests, investigators searched three locations in Seattle and one in Renton.
“Heroin continues to take a terrible toll on people in our community and across this country,” said United States Attorney Annette L. Hayes. “I commend the dogged work of the FBI and Bellevue Police Department to stop those who peddle this drug and profit from the misery of those who are addicted to it. Their pursuit of those involved -- no matter where they are located -- is an important part of the effort to stop this terrible scourge.”
RAMACHO was taken into custody without incident Tuesday August 9th, in Playas de Tijuana near Tijuana, Mexico, by Baja California State Preventive Police, in close coordination with the FBI legal attaché office at the U.S. Embassy in Mexico City. Mexican authorities repatriated RAMACHO yesterday, transferring him to FBI custody. RAMACHO, a U.S. citizen, made his initial appearance yesterday in U.S. District Court for the Southern District of California, in San Diego.
According to the indictment and court records, within the last five years, the defendants participated in a drug distribution ring remotely directed by defendant RAMACHO from his residence in the Tijuana, Mexico area. Beginning in June 2014, law enforcement authorities used a variety of tools including telephone record analysis, confidential sources, and surveillance to observe activities of this drug organization. Investigators observed a drug supply purchase in Arizona and numerous drug sales at a Seattle residence in the Hillman City neighborhood and at a Seattle gas station in the Beacon Hill area. Investigators observed defendants at a Renton business search vehicle compartments that were later flagged by a law enforcement K-9 for the scent of narcotics.
“Once again, investigations like this one prove the essential value of strong law enforcement partnerships and our ability to work together to meet a common goal,” said Special Agent in Charge Frank Montoya, Jr., of the FBI’s Seattle division. “In this case, it enabled us to effectively target multiple subjects across the country and internationally. Our joint efforts enabled us to identify and shut down a significant drug-trafficking activity and key elements of the organization supporting it. The FBI is particularly appreciative of our law enforcement partners in Mexico.”
“This operation was the result of close cooperation and collaboration between several Federal, State, and Local law enforcement agencies and prosecutors, including investigators from the Eastside Narcotics Task Force and the FBI’s Safe Streets Task Force,” said Bellevue Police Chief Steve Mylett. “I am very proud of the hard work of these dedicated law enforcement professionals. As a result of this large scale operation, a well-organized drug trafficking operation has effectively been dismantled, and the entire Puget Sound region is safer.”
Those arrested on the indictment include:
Ricardo Ramacho, aka Ricky Ramacho, 34, recently residing near Tijuana, Mexico
Alexa Rae Bockmier, 25, of Seattle, Washington (on June 15, 2018 charges against Bockmier were dismissed due to her successful completion of Drug Reentry DREAM Court)
Cody Alan Clay, 28, of Renton, Washington
Burrell Michael de Bose, aka “O.G.,” 64, of Seattle, Washington
Nicholas Matthew Bond, 30, of Seattle, WashingtonThe charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. This investigation was led by the FBI’s Seattle Division and Bellevue Police Department’s (BPD’s) Eastside Narcotics Task Force (ENTF). The ENTF is composed of BPD officers, and agents and officers from the Washington State Patrol (WSP), US Postal Inspection Service, and the Redmond, Kirkland, and Mercer Island police departments in partnership with the King County Prosecuting Attorney’s Office. Special Weapons and Tactics (SWAT) teams from the FBI, BPD, and WSP conducted the arrests, and King County Sheriff’s Office assisted with the searches.
The case is being prosecuted by Assistant United States Attorney Mark Parrent.
Manchester Man Sentenced to 20 Years After Being Convicted on Continuing Criminal Enterprise Drug ChargesRead the Press Release
CONCORD, New Hampshire – United States Attorney, Emily Gray Rice announced that Alkis Nakos, 37, of Manchester was sentenced to 20 years in federal prison after a jury convicted him on drug conspiracy and continuing criminal enterprise charges last August. The sentence was the statutory mandatory minimum applicable to Nakos.
According to documents that were filed in United States District Court, Nakos served as the New Hampshire leader of an international drug distribution network that brought high grade marijuana from Canada for distribution in the United States. In addition to smuggling cash back to Canada, the organization used proceeds from the sale of marijuana to purchase large quantities of cocaine that were then shipped into Canada. In August 2015, a jury found Nakos guilty of conspiring to distribute more than one thousand kilograms of marijuana during the period from 2008 through 2014. They also found Nakos guilty of engaging in a continuing criminal enterprise during the same period.
Evidence obtained in the investigation established that Nakos used the proceeds from the sale of marijuana to fund the purchase of luxury cars and jewelry, to fund structural improvements to his home, and that he spent more than $658,000 in gambling at Foxwoods Resort and Casino.
The United States requested that the jury’s verdict on the count two conspiracy charge be vacated to avoid a constitutional issue under the Double Jeopardy Clause. The court granted the government’s request and sentenced Nakos on the continuing criminal enterprise charge.
The case was investigated by the New Hampshire State Police, the Drug Enforcement Administration and the Manchester Police Department.
###
Manchester Man Pleads Guilty to Role in Credit Union RobberyRead the Press Release
CONCORD, N.H.– Emily Gray Rice, United States Attorney for the District of New Hampshire, announced that Derek Potocki, 31, previously of Manchester, New Hampshire, pleaded guilty before Senior United States District Judge Steven J. McAuliffe to an Indictment charging him with one count of aiding and abetting bank robbery in violation of Title 18, United States Code, Sections 2113(a) and 2.
According to court documents and statements made in court, in March 2015 Potocki pressured Melissa Boucher, 27, previously of Manchester, to rob a bank for him. Potocki selected the bank and provided Boucher with instructions including how to dress and disguise her appearance. The two proceeded to the Member’s First Credit Union at 44 Bridge Street in Manchester on the morning of March 3, 2015. Boucher, who was unarmed at the time, did as she had been instructed, entering the bank alone, passing the note to the teller, and making out with a sum of cash. She then fled with the cash, and the proceeds were divided between her and Potocki. Boucher then utilized a portion of the proceeds to purchase heroin, on which she overdosed. When paramedics were able to resuscitate her, large amounts of cash fell out of her clothing. She was arrested and has remained in custody on a New Hampshire state parole violation since that date. Potocki took his portion of the funds and fled the area.
Boucher previously pleaded guilty to her role in the robbery and is scheduled for sentencing on September 9, 2016 in front of U.S. District Judge Landya McCafferty.
Potocki’s plea agreement includes a binding stipulated sentence of 72 months’ incarceration. A sentencing hearing has been scheduled for November 22, 2016, in front of Judge McAuliffe. At that time, the Court will decide whether to accept the plea agreement and impose the agreed-upon period of incarceration, as well as any other conditions of Potocki’s sentence. Potocki also faces a mandatory restitution order to the Member’s First Credit Union.
This matter is being investigated by the Manchester Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Charles L. Rombeau.
###
Man Sentenced to 49 Months for Possessing Molotov CocktailsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that William Lovell Smith, 48, of Buffalo, New York, who was convicted of receiving and possessing aa destructive device, that is, Molotov cocktails, was sentenced to a term of imprisonment of 49 months by United States District Court Judge William M. Skretny. This term of imprisonment, which will be followed by a term of 3 years supervised release, also included restitution in the amount of $70,000, to be paid to the victim. This sentence was the result of the defendant pleading guilty to a violation of Title 18, United States Code, Section 5861(d).
Assistant United States Attorney Joel L. Violanti, who handled the case, stated the defendant assisted in manufacturing at least two (2) Molotov cocktails. Molotov cocktails are devices generally consisting of glass bottles filled with gasoline around which are placed a fuse or method of ignition, and are designed to ignite and burn upon breaking. The particular devices were used on November 1, 2011, for the purpose of burning an occupied dwelling on Schreck Avenue, Buffalo, New York.
The successful prosecution was the culmination of an investigation on the part of the Alcohol, Tobacco, Firearms, and Explosives (ATF) under the direction of Special Agent in Charge, Delano A. Reid, and the Buffalo Fire Investigation Unit under the direction of Buffalo Fire Commissioner Garnell Whitfield.
Man Indicted for Growing Marijuana on National Forest Land in Trinity County and Stabbing a Police CanineRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Francisco Barcellos-Ramirez, 34, of Mexico, charging him with conspiring to manufacture and manufacturing marijuana, damaging public lands, and harming a police canine, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between April 30, 2016, and July 21, 2016, Barcellos-Ramirez conspired to cultivate marijuana in the Shasta-Trinity National Forest, near the town of Wildwood. He was arrested on July 21, 2016, when law enforcement searched the marijuana-cultivation site that contained over 1,600 marijuana plants. During the arrest, Barcellos-Ramirez stabbed a police dog several times in the neck and face. The dog had to be transported by helicopter to Redding for emergency medical care but survived.
This case is the product of an investigation by the United States Forest Service, the Trinity County Sheriff’s Office, and the California Department of Fish and Wildlife.
If convicted of the drug offenses, Barcellos-Ramirez faces a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. The remaining crimes carry a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Man Indicted for Armed Robbery of Mail Carrier in Rancho CordovaRead the Press Release
SACRAMENTO, Calif. — Juan Carlos Maldonado, 21, of Sacramento, was indicted today for the armed robbery of a U.S. Postal Service letter carrier in Rancho Cordova, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 21, 2016, Maldonado and others obtained a sport utility vehicle, removed its plates, stalked a U.S. letter carrier, and then robbed the carrier at gunpoint in a Rancho Cordova neighborhood. During the robbery, Maldonado and his associates raided the postal truck, stealing property of the United States and over 800 items of U.S. Mail. Following the robbery, they rifled through the stolen mail for personal identification and financial information, which Maldonado used and provided to others for use, to defraud financial institutions. Maldonado is charged with one count of robbery of a U.S. mail carrier, four counts of bank fraud, one count of aggravated identity theft, and two counts of possessing robbery proceeds.
On June 30, 2016, Maldonado was arrested by the El Dorado County Sheriff’s Office at the Red Hawk Casino while attempting to access proceeds from credit cards stolen during the June 21, 2016 robbery.
San Francisco Division Inspector in Charge Rafael Nunez stated: “Working with the U.S. Attorney's Office and our partners in law enforcement, Postal Inspectors arrested this individual for the armed robbery of a U.S. Postal Service Letter Carrier. Protecting postal employees from harm is the U.S. Postal Inspection Service's top priority.”
This case is the product of an investigation by the United States Postal Inspection Service and the United States Postal Inspection Service’s Narcotic and Economic Crimes Investigations Task Force (NECI) with assistance from the El Dorado County Sheriff’s Office, the El Dorado County District Attorney’s Office, and the Rancho Cordova Police Department. NECI is a partnership between local and federal law enforcement to combat theft and unlawful use of the U.S. Mail. The Placer County District Attorney’s Office and Sutter County Sheriff’s Office have each dedicated law enforcement personnel to the task force. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
If convicted, Maldonado faces a maximum statutory penalty of up to 30 years in prison and a $1 million fine for the bank fraud, a mandatory two years in prison consecutive to any other term for the aggravated identity theft, and up to 10 years in prison and a $1 million fine for robbery of a U.S. mail carrier and possession of robbery proceeds. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Lodi Man Indicted for Distributing Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Jarod Perdichizzi, 29, of Lodi, charging him with distribution of child pornography, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Perdichizzi used the Kik messenger service to chat online about having sexual contact with a minor female. He then emailed photos of minors engaged in sexually explicit conduct to an undercover federal agent. After executing a federal search warrant at Perdichizzi’s residence, agents found a thumb drive containing hundreds of images of child pornography. Perdichizzi has been in custody since his arrest on July 28, 2016.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Special Assistant United States Attorney Josh F. Sigal is prosecuting the case.
If convicted, Perdichizzi faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Lincoln County Man Sentenced for Trafficking Synthetic DrugsRead the Press Release
St. Louis, MO – Richard Gross, Winfield, MO, was sentenced today to 150 months in prison on multiple counts involving the trafficking of synthetic drugs. Additionally, as part of these convictions, the defendants have agreed to the forfeiture of assets and property totaling in excess of $6.5 million.
According to court documents, Richard Gross and co-defendant Paul Berra manufactured synthetic cannabinoids known on the street as “K 2” and “Incense” and synthetic cathinones known on the street as “Bath Salts.” These products were sold to stores in a number of states. However, their largest customer was Gross’ mother, co-defendant Pam Tabatt, who was the largest retailer of synthetic drugs in the Eastern District of Missouri. She sold the synthetic drugs through South 94 Bait and Tackle in St. Charles County and Smoke Sensations, Nights of Rave in St. Louis County.
Gross, Winfield, MO, pled guilty in April to one felony count each of conspiracy to distribute and possess with the intent to distribute controlled substance analogues intended for human consumption, conspiracy to fraudulently receive and distribute misbranded products in interstate commerce, conspiracy to import controlled substance analogues into the United States and conspiracy to receive, sell and facilitate transportation of smuggled goods. He appeared today for sentencing before United States District Judge John A. Ross.
Pamela Tabatt, St. Peters, MO, pled guilty to related charges in March. She was sentenced July 20 to 150 months in prison and ordered to pay a $25,000 fine. Paul Berra, Jr., Warrenton, MO, entered his plea in January and was sentenced in May to 34 months in prison.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service Criminal Investigation, Drug Enforcement Administration, the Postal Inspection Service and the Federal Bureau of Investigation. Additional assistance was received from the St. Louis County Police Department, St. Charles County Sheriff’s Department, MO Lake Area Narcotics Enforcement Group, Metropolitan Enforcement Group for Southern IL, Southern Illinois Drug Task Force, the Illinois Attorney General’s Office, as well as the prosecuting attorney's offices in St. Louis County, MO; St. Charles County, MO; Madison County, IL and St. Clair County, IL. Assistant United States Attorneys James Delworth and Erin Granger handled the case for the U.S. Attorney's Office.
KC Man Sentenced for Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to commit several armed robberies at restaurants in the metropolitan area.
William H. Parker III, 21, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 10 years in federal prison without parole.
Parker pleaded guilty on April 19, 2016, to participating in the conspiracy to commit armed robberies, to one count of armed robbery and to one count of using a firearm during a crime of violence.
Parker is the fifth and final defendant to plead guilty and be sentenced for the armed robbery conspiracy and related charges. Isiah G. Etienne, 21, of Blue Springs, and Jeremy Hunter, also known as “Heat,” 26, of Kansas City, were each sentenced to 10 years in federal prison without parole. Mikah M. Labayen, 20, of Blue Springs, was sentenced to six years in federal prison without parole. Renargo L. Martin, 46, of Kansas City, Mo., was sentenced to five years in federal prison without parole.
Parker, Etienne, Labayen, Martin and Hunter each admitted that he participated in a conspiracy to rob several fast food restaurants in the Kansas City area in the fall of 2014. Parker, Labayen and Etienne were employed at a Chipotle restaurant in Blue Springs. Using their knowledge of procedures commonly used by such establishments, conspirators would wait until the end of a business day, and then rob restaurants by waiting until an employee opened a door to take trash out of the premises. They rushed the door to gain access, and then forced the manager or shift supervisor to give them access to the restaurant’s safe. Conspirators threatened restaurant employees with an assault rifle in order to force their cooperation.
Conspirators robbed a Chipotle restaurant in Lee’s Summit, Mo., on Nov. 3, 2014, taking $1,600; a Burger King restaurant in Independence, Mo., on Nov. 10, 2014, taking $914 and again on Nov. 30, 2014, taking $565; and a Chipotle restaurant in Blue Springs on Nov. 16, 2014, taking $6,800.
Following these robberies, Parker, Etienne and Labayen were captured after an attempted robbery of a motel.
This case was prosecuted by Assistant U.S. Attorney Patrick Edwards. It was investigated by the Kansas City, Mo., Police Department, the Lee’s Summit, Mo., Police Department, the Blue Springs, Mo., Police Department and the FBI.
Justice Department Sues Mississippi for Discriminating Against Adults with Mental IllnessRead the Press Release
The Justice Department today filed a complaint against the state of Mississippi, alleging that it violates the Americans with Disabilities Act (ADA) and Civil Rights of Institutionalized Persons Act (CRIPA) by failing to provide adults with mental illness with necessary integrated, community-based mental health services. The community integration mandate of the ADA and the Supreme Court’s decision in Olmstead v. L.C. require states to make services available to people with disabilities – including people with mental illness – in the most integrated setting appropriate to their needs.
The state’s failure to provide services in community settings forces adults with mental illness to access services and care in segregated state hospitals, including the Mississippi State Hospital, East Mississippi State Hospital, North Mississippi State Hospital and South Mississippi State Hospital. Under Olmstead, unnecessarily forcing people with disabilities to enter institutions to get services constitutes unlawful discrimination.
In December 2011, after conducting a comprehensive investigation, the department found that the state’s system for serving individuals with mental health disabilities violates the ADA. The department found that the state unnecessarily institutionalizes adults and children with disabilities and fails to ensure that they have access to necessary services and supports in the community. The state has recognized these failures but has not yet implemented the required reforms to meet the needs of persons with disabilities.
“When individuals with mental illness receive the services they need, they are better able to find meaningful work, secure stable housing, build personal relationships, and avoid involvement with the criminal justice system,” said Attorney General Loretta E. Lynch. “For far too long, Mississippi has failed people with mental illness, violating their civil rights by confining them in isolating institutions. Our lawsuit seeks to end these injustices, and it sends a clear signal that we will continue to fight for the full rights and liberties of Americans with mental illness”
“When individuals with mental illness get the services they need and the care they deserve, they can live and work in their own communities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Mississippi violates the ADA by denying residents with disabilities the services the law requires and the support they deserve, forcing them to cycle in and out of state hospitals, emergency rooms and jails. The Justice Department’s lawsuit demonstrates our firm commitment to vindicate the rights of people with mental illness.”
“In Mississippi, adults with mental illness receive inadequate mental health care – care that is too often in segregated, institutional placements,” said U.S. Attorney Gregory Davis of the Southern District of Mississippi. “Mississippi has not developed the necessary supports in the community to prevent unnecessary institutionalization as required by the ADA.”
The complaint alleges that gaps and weaknesses in the state’s mental health system too often subject adults with mental illness to needless trauma, especially during a crisis. According to the complaint, adults with mental illness who experience a crisis in Mississippi often spend days in local emergency rooms and jail holding facilities that are ill-equipped to address their needs, before ultimately being transported to the state’s psychiatric hospitals. This costly and traumatic process could be avoided if adults with mental illness received proven and effective services in the community to prevent and deescalate crises, enable them to maintain safe housing and assist them in finding and holding employment.
Since issuing its findings letter, the department engaged in discussions with the state to reach a settlement resolving the violations the department identified. The parties, however, were ultimately unable to come to an agreement that would ensure the needed services and supports for people with disabilities in Mississippi. In order to vindicate the rights of adults with mental illness under the ADA, the United States has filed this lawsuit under the ADA and CRIPA. The United States is also participating as amicus in ongoing litigation against Mississippi in Troupe v. Barbour, a case that addresses the state’s ADA obligations toward children with mental health disabilities. The United States remains committed to resolving all of the violations the department identified in its findings letter.
For more information on the department’s Civil Rights Division, please visit www.justice.gov/crt.
Mississippi Olmstead Complaint
Justice Department Files Lawsuit Against New Mexico State University Alleging Discrimination in Pay Against Female CoachRead the Press Release
ALBUQUERQUE – The Justice Department announced today that it has filed a lawsuit alleging that New Mexico State University and its Board of Regents (NMSU) discriminated against a female former assistant track coach on the basis of sex by paying her less than similarly-situated men in violation of Title VII of the Civil Rights Act of 1964.
The Justice Department’s complaint was filed in the U.S. District Court for the District of New Mexico and alleges that, over the relevant periods of time, NMSU paid Meaghan Harkins thousands of dollars less per year than it paid to two male assistant track coaches with similar responsibilities, in violation of Title VII. Title VII is a federal statute that prohibits employment discrimination – including discrimination in compensation – on the basis of sex, race, color, national origin and religion.
“Women deserve the same salary and the same respect as their male colleagues with similar job duties,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Lawsuits like this one demonstrate the Justice Department’s steadfast commitment to enforcing federal law to close the wage gap.”
“This lawsuit reflects the recognition by the Department of Justice of the bedrock principle of equal pay for equal work and that this principle must be applied to all employees within the public sector workforce,” said U.S. Attorney Damon P. Martinez of the District of New Mexico.
Harkins originally filed a charge of sex discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s El Paso Area Office investigated the charge and found reasonable cause to believe that NMSU discriminated against Harkins. After unsuccessful conciliation efforts, the EEOC referred the charge to the Justice Department.
Enforcement of federal employment discrimination laws remains a top priority of the Justice Department. More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
NMSU Complaint
Justice Department Files Lawsuit Against New Mexico State University Alleging Discrimination in Pay Against Female CoachRead the Press Release
The Justice Department announced today that it has filed a lawsuit alleging that New Mexico State University and its Board of Regents (NMSU) discriminated against a female former assistant track coach on the basis of sex by paying her less than similarly-situated men in violation of Title VII of the Civil Rights Act of 1964.
The Justice Department’s complaint was filed in the U.S. District Court for the District of New Mexico and alleges that, over the relevant periods of time, NMSU paid Meaghan Harkins thousands of dollars less per year than it paid to two male assistant track coaches with similar responsibilities, in violation of Title VII. Title VII is a federal statute that prohibits employment discrimination – including discrimination in compensation – on the basis of sex, race, color, national origin and religion.
“Women deserve the same salary and the same respect as their male colleagues with similar job duties,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Lawsuits like this one demonstrate the Justice Department’s steadfast commitment to enforcing federal law to close the wage gap.”
“This lawsuit reflects the recognition by the Department of Justice of the bedrock principle of equal pay for equal work and that this principle must be applied to all employees within the public sector workforce,” said U.S. Attorney Damon P. Martinez of the District of New Mexico.
Harkins originally filed a charge of sex discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s El Paso Area Office investigated the charge and found reasonable cause to believe that NMSU discriminated against Harkins. After unsuccessful conciliation efforts, the EEOC referred the charge to the Justice Department.
Enforcement of federal employment discrimination laws remains a top priority of the Justice Department. More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
New Mexico State University Complaint
Johnstown Man Sentenced to Prison for Possessing Crack Cocaine while on Supervised ReleaseRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., has been sentenced in federal court to six years in prison and four years’ supervised release on his conviction of violating federal narcotics laws. He was also sentenced to a consecutive one year term of incarceration for violating the conditions of his supervised release, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on George J. Lawrence, V, 31, of Johnstown, Pa.
According to information presented to the court, on April 23, 2013, Lawrence possessed more than 28 grams of cocaine base with the intent to distribute it.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Lawrence.
Honduran National Sentenced for Illegal Re-EntryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EDUARDO URBINA-JUAREZ, age 28, was sentenced today after previously pleading guilty to a one-count Indictment that charged him with illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
U.S. District Judge Nannette Brown sentenced URBINA-JUAREZ to serve six months imprisonment and ordered him to pay a special assessment of $100. Following the completion of his sentence, URBINA-JUAREZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Hedge Fund Manager Charged in Manhattan Federal Court with Scheme to Defraud InvestorsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced the arrest and unsealing of a complaint charging NICHOLAS MITSAKOS with securities and wire fraud in connection with a scheme to induce investments in a hedge fund by misrepresenting the fund’s performance and assets under management. From at least May 2014 through August 2016, MITSAKOS fraudulently solicited investments in a hedge fund that he had founded, Matrix Capital (“Matrix”), by distributing marketing materials claiming that Matrix had millions of dollars under management and had achieved outsized returns since 2012. In or about September 2015, one entity (“Victim-1”) invested approximately $2 million with MITSAKOS based on these representations. The claims that MITSAKOS made to help secure this investment, however, were false. Matrix had no assets under management and its returns were based on a hypothetical stock portfolio that had been retroactively altered on multiple occasions in order to enhance the fund’s supposed performance. And rather than invest Victim-1’s money as promised, MITSAKOS misappropriated parts of this money to pay personal expenses and expenses associated with his administration of the fund. MITSAKOS surrendered to law enforcement today in Los Angeles and will be presented in the United States District Court for the Central District of California.
In a separate action, the SEC filed civil charges against MITSAKOS.
U.S. Attorney Preet Bharara said: “Nicholas Mitsakos, founder of Matrix Capital, allegedly promised huge returns and told would-be investors that he had ‘a little more than $60 million’ in his hedge fund. But as alleged, Mitsakos essentially ran an imaginary portfolio, which just tracked the performance of certain stocks without actually having a financial position in them. Instead, Mitsakos allegedly spent much of his investors’ money on car payments, credit cards, and rent.”
According to the allegations in the Complaint unsealed in Manhattan federal court:[1]
In or about October 2013, MITSAKOS created an entity called Matrix Capital. Matrix purported to be a “long-short” hedge fund that invested in undervalued securities and sold overvalued securities short. In order to raise capital for Matrix, MITSAKOS and another co-conspirator (“CC-1”) sent marketing materials and newsletters to numerous investors. Certain of these materials claimed that Matrix had returns “exceed[ing] all major indices,” including returns of approximately 25.4% in 2012, 66.3% in 2013, 20.9% in 2014, and 49.5% between January and October of 2015. MITSAKOS also told investors that these returns were based on actual trades, and that he had millions of dollars under management. In one communication with a potential investor, for example, MITSAKOS represented that he had “a little more than 60 million” of assets under management at the time.
These representations were all false. Matrix had not achieved the returns MITSAKOS and CC-1 had represented to investors, and had no real assets before receiving an investment from Victim-1 in or about September 2015. Instead, MITSAKOS and CC-1 maintained a hypothetical portfolio that tracked the performance of certain stocks. MITSAKOS and CC-1 retroactively manipulated this portfolio from time to time to improve its performance. In or about May 2014, for example, MITSAKOS sent CC-1 an email stating, “Let’s talk about our monthly performance in 2014…. [T]here are some big monthly losses that I don’t think we would’ve had if we were managing the portfolio. I know this is a bit of revisionist history....” Later that day, CC-1 suggested “trim[ming]” two positions that had performed poorly in order to “see what that does to the performance [of the fund].” The revised hypothetical performance figures from these changes were then disseminated to potential investors as returns on actual investments.
Based in part on misrepresentations about Matrix’s performance and assets under management, among other things, Victim-1 invested approximately $2 million with MITSAKOS. MITSAKOS, however, only used a portion of this amount – about $1.2 million – to actually buy and sell stocks. Of the remaining amount, MITSAKOS spent hundreds of thousands of dollars on business expenses and personal expenses like car payments, credit cards, and rent before Victim-1 learned what had come of its investment. MITSAKOS’s trading of the $1.2 million that he did invest, moreover, resulted in significant losses.
* * *
MITSAKOS is charged with one count of conspiring to commit securities and wire fraud, one count of securities fraud, and one count of wire fraud. The conspiracy charge carries a maximum term of five years in prison. The securities and wire fraud charges each carry a maximum term of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the exceptional work of the Office’s criminal investigators, and thanked the Securities and Exchange Commission for its assistance.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Robert Allen is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
16-222 ###
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Hazleton Resident Charged with Drug Distribution Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Grand Jury in Scranton indicted a Luzerne County man on August 9, charging him with drug distribution resulting in death.
According to United States Attorney Peter Smith, between July 5, 2016 and July 7, 2016, Luis Antonio Zayas, age 46, of Hazleton, possessed and distributed fentanyl, a controlled substance, resulting in the death of another.
Zayas is also charged with possession and distribution of a controlled substance to a pregnant individual. The distribution of the controlled substance allegedly occurred within 1,000 feet of a daycare center with an outdoor playground.
The Indictment was unsealed August 10, following Zayas’ arrest and initial appearance before United States Magistrate Judge Joseph F. Saporito. A detention hearing is scheduled for August 18, 2016.
The charges stem from a joint investigation by the Drug Enforcement Administration (DEA), and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
U.S. Attorney Smith said, “This is not just another drug case. It is a tragic result of the public health menace presented by the plague of extremely dangerous and enhanced drugs, coupled with the consequences of untreated addiction and the increasing presence of deadly components, such as fentanyl, in the substances. The harm to users, their loved ones and communities is devastating. For that reason the charges, are, and will continue to be, the most serious ones available to this office.”
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
For information on overdose death statistics for Pennsylvania, see the attached 2015 Pennsylvania State Coroners Association Report on Overdose Death Statistics.
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.
In this case, the maximum penalty under the federal statute for drug distribution resulting in death is life imprisonment. Because the distribution is alleged to have occurred within 1,000 feet of a protected area, the maximum penalties for the charges are doubled. As such, the maximum penalty for possession with intent to distribute a controlled substance is 40 years imprisonment and a $2,000,000 fine. Distribution of a controlled substance to a pregnant individual carries a mandatory 12 months incarceration.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature 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.
# # #
Hartford Man Sentenced to 5 Years in Federal Prison for Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANCISCO SANCHEZ-REYES, also known as “Chino,” 38, of Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, in September 2014, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End. The investigation, which included the use of court-authorized wiretaps and controlled purchases of heroin, crack cocaine and firearms, resulted in federal charges against approximately 30 individuals.
The investigation revealed that Melvin Castro, also known as “Humacoa,” controlled the distribution of heroin in the Park Street, Babcock Street and Zion Street area of Hartford. The Task Force orchestrated the purchase of more than 2,700 bags of heroin and six firearms from Castro during the investigation. Wiretaps captured numerous conversations in which Castro coordinated hundreds of additional sales of heroin, and revealed that SANCHEZ-REYES was a trusted associate of Castro who also was involved in the distribution of heroin.
SANCHEZ has been detained since his arrest on June 15, 2015. On March 9, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin.
Castro also pleaded guilty and, on May 13, 2016, was sentenced to 84 months of imprisonment.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit, Shooting Task Force and South Conditions Unit have provided valuable assistance to the investigation, and the U.S. Marshals Service and Capitol Region Emergency Response Team (CREST) assisted with the arrests.
This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Members of Los Solidos attended call-ins that were held in April 2014 and August 2014.
Harrisburg Man Indicted for Possession of Heroin, Crack Cocaine, and A FirearmRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg indicted Tyshawn Jones yesterday for possession with intent to distribute heroin and crack and possession of a firearm in furtherance of drug trafficking.
According to U.S. Attorney Peter Smith, Jones, a 19 year old resident of Harrisburg, was arrested by Dauphin County Probation Officers when they found heroin, crack, and a firearm on Jones during a visit to the home in which he was residing.
The matter was investigated by the Dauphin County Probation Office, the Harrisburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant U.S. Attorney Scott R. Ford.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for this offense is up to life in prison, 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.
# # #
Georgia Man Sentenced to 15 Years Imprisonment for Conspiracy to Produce Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DANIEL NOLAN DEVOR, age 41, of Brunswick, Georgia, was sentenced today for conspiracy to produce child pornography
U.S. District Judge Nannette Jolivette Brown sentenced DEVOR to 180 months imprisonment and supervised release for fifteen years after his release. DEVOR will also have to register as a sex offender upon his release from prison.
According to court documents, in November 2013, DEVOR was arrested by Special Agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”), after they determined that DEVOR was responsible for conspiring with Abita Springs resident Jonathan Johnson and others to create and post videos depicting the sexual exploitation of children on the Internet. DEVOR has been in custody since his arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Polite praised the work of Homeland Security Investigations and the U.S. Postal Inspection Service in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba, was in charge of the prosecution.
Former Social Security Employee Sentenced to Nine Months in Prison for Theft of BenefitsRead the Press Release
Miguel Gutierrez, 42, of Bernville, Pennsylvania, was sentenced today to nine months in prison, and ordered to pay restitution in the amount of $7,122.86 and a fine of $4,000, pursuant to his prior guilty plea to three counts of wire fraud, announced United States Attorney Zane David Memeger. The defendant, a former Claims Representative in Social Security Administration’s Reading field office, used his access to Social Security’s computer systems at his job to redirect Social Security benefits payable to others, to a bank account in his own name. Defendant Gutierrez redirected several benefit payments before Social Security’s internal control systems detected his theft. The Honorable Jeffrey Schmehl ordered the defendant to repay the Social Security Administration for all stolen funds, and pay a $4,000 fine in addition to that restitution. In imposing the prison sentence, the court noted that the defendant’s former position as a government employee, entrusted with access to Social Security’s computer system, required a term of imprisonment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Former Mayor of Lawrence Charged with EmbezzlementRead the Press Release
TOPEKA, KAN. - A former mayor of Lawrence was charged in federal court Thursday with embezzling thousands of dollars from a food bank in Douglas County, Acting U.S. Attorney Tom Beall said.
Jeremy Farmer, 32, Lawrence, Kan., was charged with one count of embezzlement. According to court documents, the crimes took place while Farmer was the executive director of Just Food, a food bank in Douglas County. Just Food serves more than 40 partner agencies with frozen meat and fresh produce as well as bread and food donated from community drives. The organization and its partners play a key role in fighting hunger in Douglas County.
According to court documents, prosecutors allege that from 2013 until Farmer resigned from Just Food and from his position as mayor of Lawrence in August 2015 he used his access to Just Foods’ bank accounts and accounting systems to steal more than $5,000 from the organization.
If convicted, he faces a penalty of up to 10 years in federal prison and a fine up to $250,000. The FBI and the Internal Revenue Service – Criminal Investigation investigated. Assistant U.S. Attorney Rich Hathaway is prosecuting.
Former Delaware county sheriff’s deputy sentenced in theft caseRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler, announced today the sentencing of a former Delaware County Sheriff’s Deputy on theft charges. Arlan D. Johnson, 56, Muncie, was sentenced to six months of home incarceration by U.S. District Judge Tanya Walton Pratt.
Johnson served as lieutenant with the Delaware County Sheriff’s Department (DCSD) and was a firearms instructor. As part of his job duties, Johnson routinely purchased ammunition for the DCSD to be used for duty and training purposes. Johnson ordered ammunition from a private federally licensed firearms dealer in Seven Mile, Ohio. After Johnson ordered ammunition for the DCSO from the firearm’s dealer, he submitted purchase invoices to the DCSO finance officer, who presented the invoice to the Delaware County auditor for payment.
Beginning in January 2012, and continuing to at least August 5, 2015, Johnson began converting a percentage of the ammunition he purchased for the DCSO to his use by selling the ammunition to purchasers in person and online. Johnson used the funds he obtained from the sale of DCSO ammunition he stole for his own personal expenditures such as paying gambling debts and for other personal expenses. In total, Johnson stole at least $8,580 worth of ammunition.
According to Tiffany J. McCormick, who prosecuted this case for the government, Johnson must serve three years of probation and make restitution of $8,500 to Delaware County.