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5 August 2016
Boise Man Sentenced for Distributing MethamphetamineRead the Press Release
BOISE – Jeremy Blaine Harris, 39, of Boise, Idaho, was sentenced yesterday to 70 months in federal prison for distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Harris to serve five years of supervised release. Harris pleaded guilty on May 25, 2016.
According to evidence presented in court, Harris distributed one ounce of methamphetamine to an undercover officer on July 20, 2015. At the time he distributed the methamphetamine, Harris was on parole after having been convicted of second degree murder in 1993 for shooting and killing a thirteen year-old girl during a home burglary in Minidoka County, Idaho. Harris has a pending hearing before the Idaho Commission of Pardons and Parole.
The case was investigated by the Drug Enforcement Administration and the Boise Police Department as an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF partners include the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s (ICE); Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
Bethlehem Felon in Possession of A Firearm Sentenced to 84 MonthsRead the Press Release
Julio Stewart, 31 years old of Bethlehem, Pennsylvania, was sentenced today by the Honorable Jeffrey L. Schmehl, Judge, United States District Court, to 84 months’ imprisonment, three years supervised release, a $2000 fine, and $100 special assessment fee, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli. On May 2, 2016, Stewart pled guilty to one count of possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli. The Indictment charged that on May 6, 2015, in Bethlehem, the defendant possessed a Ruger, Model P94, 9mm handgun, with an obliterated serial number, loaded with ten live rounds of ammunition, after having previously been convicted in a court of the Commonwealth of Pennsylvania of a crime punishable by imprisonment for a term exceeding one year.
The case was investigated by the Federal Bureau of Investigation, Allentown Field Office, the Northampton County District Attorney’s Office, and the Bethlehem Police Department, and is being prosecuted by Assistant United States Attorney John Gallagher and Special Assistant United States Attorney Kelly Lewis Fallenstein.
Baltimore Heroin Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Brian T. McClurkin, age 28, of Baltimore, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from June through September 2014, McClurkin conspired with Phillip Vaughn and others to distribute heroin in Baltimore. During July and August, McClurkin was overheard by law enforcement discussing the distribution of heroin on his cell phone. On August 27, 2014, members of the Baltimore Police Department and DEA conducted undercover purchases of heroin from Vaughn and a co-conspirator. During the purchases, Vaughn was observed brandishing a firearm. Vaughn and the co-conspirator were subsequently arrested and the gun and additional quantities of heroin were recovered. Both the heroin distribution and the firearm were discussed by McClurkin during calls intercepted by law enforcement.
McClurkin admitted that during his participation in the conspiracy between 100 grams and 1 kilogram of heroin was distributed.
Phillip Vaughn, age 26, of Baltimore, previously pleaded guilty to his role in the conspiracy and was sentenced to five years in federal prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Armed Heroin Dealer IndictedRead the Press Release
Jacksonville, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Matthew Barker (33, Jacksonville) with distribution of heroin and possession of a firearm in furtherance of that crime. If convicted on all counts, he faces a maximum penalty of life in federal prison. The indictment also notifies Barker that the United States intends to forfeit any firearms or ammunition involved in the offense.
According to the indictment, Barker distributed heroin in February and July 2016. He used a gun to further his drug distribution activity on one of those occasions.
An indictment is merely a formal charge that a defendant has committed one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville Sheriff’s Office, the Federal Bureau of Investigation and the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Frank Talbot.
4 August 2016
White Oak Man Sentenced to Prison for Role in Cross-Country Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 57 months’ imprisonment on his conviction of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on David Irwin, 44, of White Oak, Pa.
According to information presented to the Court, in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, David Irwin was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the purposes of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the 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 Irwin.
Weston Man Charged with Insider TradingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven returned an indictment yesterday charging EDWARD J. KOSINSKI, 68, of Weston, with insider trading.
As alleged in the indictment, on January 29, 2014, KOSINSKI entered into a Clinical Study and Research Agreement with an authorized agent of Regado Biosciences, Inc., formerly a Delaware corporation whose common stock traded on the NASDAQ under the ticker symbol “RGDO.” KOSINSKI, as a Principal Investigator for Regado’s clinical trial, was required to maintain in strict confidence all confidential information it received from Regado or its agent during the course of the clinical trial. In May 2014, KOSINSKI owned 40,000 shares of Regado common stock.
The indictment further alleges that, on June 29, 2014, KOSINSKI and other principal investigators received an email from the clinical trial team stating that there had been several allergic reactions during the clinical trial, the acceptance of new subjects was put on hold and the Data and Safety Monitoring Board (“DSMB”) would be reviewing the recent events. On June 30, 2014, while in possession of this non-public information, KOSINSKI sold his 40,000 shares of Regado common stock for between $6.59 and $7.00 per share. On July 2, 2014, after the close of the market, Regado publicly announced that the DSMB initiated an unplanned review of the clinical trial and patient enrollment had been suspended until the DSMB completed its review. On July 3, 2014, the stock fell $3.95 from the days previous closing price, to close at $2.81.
It is alleged that, by selling his shares of Regado stock, KOSINSKI avoided a loss of approximately $160,000.
The indictment further alleges that, on July 29, 2014, KOSINSKI and other principal investigators received an email from the clinical trial team stating that a death occurred in the clinical trial and that the trial was on hold. On July 31, 2014, while in possession of this material, non-public information, KOSINSKI purchased 50 Regado common stock put option contracts with a strike price of $2.50. On August 25, 2014, before the market opened, Regado publicly announced that it permanently halted the clinical trial and the price of Regado common stock fell approximately 60 percent. KOSINSKI then purchased 5,000 shares of Regado common stock for approximately $1.13 per share and exercised his put options, netting more than $3,000.
The indictment charges KOSINSKI with two counts of securities fraud-insider trading, an offense that carries a maximum term of imprisonment of 20 years. KOSINSKI appeared today before U.S. Magistrate Judge Robert A. Richardson in Hartford, entered a plea of not guilty to the charges and was released on a $500,000 bond.
The case has been assigned to U.S. District Judge Vanessa L. Bryant in Hartford.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Heather Cherry.
In a parallel action, the Securities and Exchange Commission today announced related civil charges against KOSINSKY. (Securities and Exchange Commission v. Edward J. Kosinski 3:16-cv-01322)
Wasilla Woman Sentenced to Six Months Community Confinement, Five Years Probation, and 240 Hours of Community Service for $72,560 Federal Grant FraudRead the Press Release
Anchorage, Alaska — U.S. Attorney Karen L. Loeffler announced today that a Wasilla woman was sentenced in federal court in Anchorage for two counts of making false claims to the United States Department of Agriculture (USDA).
Crystal Jean Boze, 39, of Wasilla, Alaska, was sentenced today by Chief U.S. District Judge Timothy Burgess to five years of probation, including six months’ community confinement, 240 hours of community service, and restitution in the amount of $61,415.
According to Assistant U.S. Attorney Andrea Hattan, who prosecuted the case, Boze’s company, Green Winter Farms LLC (a farming company located in Palmer, Alaska), was awarded a $72,103 grant by the USDA Natural Resources Conservation Service in 2012, and a $49,689 grant by USDA Rural Development in 2013. The grants required Boze to pay for items in advance, then seek reimbursement from USDA. Boze was also required to certify that each claim for reimbursement was accurate. Prior to submitting the false claims at issue in this case, USDA personnel explicitly told Boze that advances of grant funds were not permitted.
Nevertheless, three times between February 2013 and June 2013, Boze knowingly made and presented three false and fraudulent claims to USDA seeking payment of USDA grant funds. In support of each of her false claims, Boze also knowingly presented false and fraudulent purchase invoices as supporting documentation for each claim. The USDA disbursed a total of $48,610 to Boze before her fraud was discovered. Boze’s fraud also caused a $12,805 loss to a small Colorado vendor from which Boze obtained grant funds to purchase a green house, but failed to pay. As part of her sentence, Boze must pay full restitution, plus post-judgment interest, to both USDA and the Colorado vendor.
U.S. Attorney Loeffler commended the Federal Bureau of Investigation (FBI) and the USDA for their investigation of this case.
Walbridge man accused of embezzling from labor unionRead the Press Release
A former labor union official was indicted on charges that he embezzled from the union, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Guy Gokey, 65, of Walbridge, Ohio, was charged in a two-count indictment with one count of embezzlement from a labor organization and one count of making a false statement on a labor organization report.
Gokey served as financial secretary for Glass Molders and Plastics AFL-CIO, Local 59, from 1986 through 2014. He embezzled approximately $14,074 from the union, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Department of Labor, Office of Labor-Management Standards, in Cleveland, Ohio. The case is being handled by Assistant United States Attorney Noah P. Hood.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Vice Lords Leader Sentenced to 20 Years in Prison for Gang-Related ShootingRead the Press Release
A leader of the Vice Lords street gang was sentenced today to 20 years in prison for attempted murder in aid of racketeering in connection with the May 7, 2015, shooting of a family of four with an AK-47 in Detroit.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division Office, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Chief James Craig of the Detroit Police Department made the announcements.
Antonio Clark, aka Cheeto, 26, of Detroit, pleaded guilty on Jan. 27, 2016, to two counts of attempted murder in aid of racketeering and use and carry of a firearm during and in relation to a crime of violence.
According to Clark’s plea agreement, the Vice Lords is a national gang engaged in a variety of crimes, including murder, robbery, narcotics trafficking and witness intimidation. The Vice Lords’ leaders are located in both Chicago and Detroit, and the gang is broken down into various “sets,” “decks,” or “branches,” including the Detroit-based Traveling Vice Lords, Insane Vice Lords, Imperial Insane Vice Lords, Conservative Vice Lords and Mafia Insane Vice Lords. Clark admitted that members who seek to leave the gang oftentimes endure a physical beating, known as a “beat out,” by multiple Vice Lords members, or are targeted for killing, known as a “green light.”
Clark admitted that in May 2015, he and other members of the Vice Lords were searching for two brothers who had left or attempted to leave the gang. According to the plea agreement and sentencing documents, Clark and at least eight other Vice Lords met on May 7, 2015, to discuss a plan of action and Clark brought a loaded AK-47 to the meeting. Clark admitted that later that day, he and other Vice Lords traveled to the intended victims’ house in broad daylight. According to sentencing documents, Clark fired the AK-47 23 times, hitting the brothers, their mother and a 15-year-old sister. In addition, sentencing documents reflect that a five-year-old boy was present but not shot. All of the victims survived the shooting.
Seven other Vice Lords defendants also have pleaded guilty to charges relating to the shooting, four of whom have been sentenced: Aramis Wilson, 25, of Detroit, was sentenced to 150 months in prison; Dion Robinson, 38, of Detroit, was sentenced to 121 months in prison; Jonathan Kinchen, 23, of Detroit, was sentenced to 120 months in prison; and Kojuan Lee, 20, of Detroit, was sentenced to 97 months in prison.
The charges and convictions related to the May 7, 2015, shooting are just one component of the federal government’s prosecution of the Vice Lords street gang, which has led to the arrests and convictions of dozens of Vice Lords leaders and members over the last few years. In two trials during March and May 2015, juries convicted eight leaders and members of the Phantom Outlaw Motorcycle Club, many of whom were also leaders and members of the Vice Lords, for various crimes, including a mass-murder plot against a rival organization and the shooting of a member of another rival organization. Among those convicted was Antonio Johnson, aka MT and Mister Tony, the National President of the Phantoms and the Three-Star General over all of the Vice Lords in Michigan. On Sept. 8, 2015, Johnson was sentenced to 35 years in prison for racketeering conspiracy, murder conspiracy in aid of racketeering, assault with a dangerous weapon in aid of racketeering, aiding and abetting the use and carry of firearms during and in relation to a crime of violence and felon in possession of a firearm.
The arrests and convictions in this case are, in part, the result of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. Through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and FBI, law enforcement authorities linked various acts of violence in Detroit to the Vice Lords street gang, and identified the leaders and key members of the gang, who now have been held accountable.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The ATF, FBI and Detroit Police Department are investigating the case. Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Mark Bilkovic of the Eastern District of Michigan are prosecuting the case.
Two New Haven Men Plead Guilty to Distributing Drugs Involved in Spate of OverdosesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANK PINA, 57, and STEVEN WHALEY, 48, both of New Haven, each pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of possession with intent to distribute, and distribution of, controlled substances. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on June 23, 2016, 17 individuals in New Haven overdosed after consuming narcotics. Three of the victims died. An investigation being conducted by the DEA and New Haven Police Department revealed that many or all of the victims believed the substance they were consuming was cocaine. However, based in part on DEA laboratory testing, it appears that the cocaine was laced with fentanyl, a powerful opioid that can be at least 50 times more powerful than heroin. Naloxone, an emergency drug used to treat opioid overdoses, was effective in treating at least some of the victims, which indicates that the ingested substance contained an opioid. Analysis of the substance involved in the overdoses is not yet completed.
The investigation revealed that PINA supplied drugs both directly and through various middlemen to several of the individuals who overdosed on June 23, 2016. WHALEY was identified as an associate of PINA who sometimes served as a middleman.
PINA and WHALEY were arrested on June 27. At the time of his arrest, WHALEY was in possession of cocaine packaged for sale.
PINA and WHALEY are scheduled to be sentenced on October 31 and November 1, respectively. They both face a maximum term of imprisonment of 20 years.
This ongoing investigation is being conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the New Haven Police Department. The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Middlebury Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Douglas P. Morabito.
Two Investment Advisors Charged with Securities Fraud in Connection with Sales of Unit Investment TrustsRead the Press Release
Two investment advisors are charged with conspiring to commit securities fraud in connection with a multi-million dollar scheme to sell unit investment trusts.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
David Garcia Villasana, 48, and Yul L. Pinto, 41, both of Miami, are charged by criminal information with one count of conspiracy to commit securities fraud, in violation of Title 15, United States Code, Sections 78j(b) and 78ff(a) and Title 17, Code of Federal Regulations, Section 240.10b-5. Villasana and Pinto face a maximum statutory sentence of five years in prison and a fine up to $250,000. The case is assigned to U.S. District Judge James I. Cohn in Ft. Lauderdale.
According to court documents, including the information, Villasana and Pinto operated Great Financial Consultants L.C. (“Great Financial”) and York Kingdom International, Inc., in the Brickell area of Miami. Villasana and Pinto, who previously had worked as investment advisors in Venezulea, solicited wealthy investors throughout the United States that had ties to Venezuela. Villasana and Pinto created investment offering documents entitled “Global Capital Builder,” among other references, to make it appear that investments with York Kingdom and Great Financial had a track record of producing high rates of return. During telephone conversations, Villasana and Pinto promised investors safety and security of the investments, by claiming that the profits could be withdrawn at any time and that the submitted monies would be placed into specific investments or categories of investments. The pitch to investors included false representations that investors’ monies would be invested in a diversified portfolio of stocks and bonds in a manner that tracked other, well known investment trusts. Villasana and Pinto also falsely represented to investors that York Kingdom and Great Financial operated as affiliates of European-based investment companies.
The court documents further allege that upon receipt of investor monies, Villasana and Pinto did not invest the funds as promised. Instead, Villasana and Pinto used more than $2.2 million of investor funds to purchase goods and services for themselves, including a Bentley and several BMW automobiles.
According to court documents, Villasana and Pinto would transmit to investors periodic “Unit Allocation Statements” that represented that the investors’ funds had appreciated in value, and to purportedly show that the investors held a certain number of “units” in specific investment trusts, or mutual funds. In reality, the information on these statements was fabricated by Villasana and Pinto, as the investors’ money was never placed in any such investments. When investors contacted York Kingdom and Great Financial and attempted to cash in on their investments, Villasana and Pinto provided a series of false explanations about the status of their monies and alleged that return payments would be forthcoming. Toward the end of the scheme, Villasana and Pinto failed to respond to investor requests to cash in on their investments or have their money returned.
Mr. Ferrer commended the investigative efforts of the FBI. The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Allison Lehr.
A criminal information is merely an allegation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Indicted for Growing Marijuana on National Forest LandRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned two separate indictments today, charging marijuana cultivation in the Shasta-Trinity National Forest and the Lassen National Forest, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents in the first case, Clemente Lopez, 31, a Mexican national, was arrested by law enforcement officers on July 26, 2016, during a search of a marijuana-cultivation site in the Shasta-Trinity National Forest, near the town of Wildwood. The site contained over 9,800 marijuana plants. During the arrest, another suspect fled the scene after stabbing a Trinity County Sheriff’s Department K-9 in the neck. The K-9 survived.
This case is the product of an investigation by the U.S. Forest Service and the Trinity County Sheriff’s Department. Assistant U.S. Attorney James Conolly is prosecuting the case.
According to court documents in the second case, on July 25, 2016, Jose Madrigal, 67, and Cesar Mendoza-Madrigal, 44, were arrested at a marijuana cultivation site containing approximately 6,900 marijuana plants in the Lassen National Forest, near Judd Creek. In addition to the cultivation charges, both defendants were charged with committing depredation of federal land and resources.
This case is the product of an investigation by the U.S. Forest Service, the Department of Fish and Wildlife, the Tehama County Sheriff’s Office, and the Tehama Interagency Drug Enforcement task force. Assistant U.S. Attorney Owen Roth is prosecuting the case.
If convicted, the Lopez faces a maximum statutory penalty of 20 years in prison and a $1 million fine for each count. If convicted, Madrigal and Mendoza-Madrigal face a statutory maximum of five years in prison and a fine of up to $500,000 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.
Three Area People Indicted on Federal Fraud Charges Involving Check-Kiting SchemeRead the Press Release
St. Louis, MO – Three area people, including an inmate at the Jennings Correctional Facility, were indicted on multiple fraud counts involving a conspiracy to commit various fraudulent schemes, including check-kiting, which they term as “piggybacking.” Check-kiting occurs when an individual takes advantage of the small window of time between when checks are deposited into an account and the financial institution upon which the checks are drawn provides notice to the depositing institution that the check will not be honored.
According to the indictment, the purpose of the conspiracy was to open bank accounts at Bank of America and U.S. Bank and use an existing account at Regions Bank to deposit worthless checks. They disbursed from the artificially inflated accounts through cash and ATM withdrawals, writing checks and making debit card purchases before the worthless checks were determined to be invalid by Bank of America, U.S. Bank and Regions Bank. Taion Brown and Pierre Watson recruited Justice Carter and other individuals to open bank accounts and provide checks from existing accounts in exchange for payment for their participation in the scheme to defraud Bank of America, U.S. Bank and Regions Bank.
Taion Brown, St. Louis, MO, and Pierre Watson, St. Louis, MO, were indicted by a federal grand jury on August 3 on one felony count each of conspiracy to commit bank and wire fraud, three felony counts of bank fraud and one felony count of aggravated identity theft. Justice Carter, St. Louis, MO, was indicted on one felony count of conspiracy to commit bank and wire fraud and one felony count of bank fraud.
If convicted, each count of conspiracy to commit bank and wire fraud and bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million. Aggravated identity theft is a mandatory two years in prison, consecutive to any other term of imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Secret Service, the Federal Bureau of Investigation and St. Louis County Police Department. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Texas Man Convicted of Filing False Tax Returns and Corruptly Endeavoring to Impede the IRSRead the Press Release
Yesterday, a Austin, Texas, businessman was convicted by a federal jury on four counts of filing false tax returns and corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to the evidence presented at trial, Victor Antolik owned and operated a commercial janitorial business in Austin, San Antonio and Houston, Texas, for which he used a variety of business names, including Diversified Building Services Inc., DBS Services Inc., Partners in Cleaning, PIC Building Services and BSI Industries. Antolik also earned income as a real estate agent, real estate broker and property manager. Antolik earned a portion of his real estate income through his companies SGN Realty Inc. and Signature Realty Services. Antolik submitted to the Internal Revenue Service (IRS) four false individual income tax returns on which he underreported his income for tax years 2004, 2007 and 2008. In addition, between 1998 and 2014, Antolik attempted to obstruct the IRS by, among other things, attaching altered Forms W-2 and 1099 to his tax returns, providing false information to his accountants that were used to prepare both corporate and individual income tax returns on his behalf and using nominees to conceal income and assets.
“The jury’s verdict holds Mr. Antolik accountable for his decades-long effort to conceal income and obstruct the IRS,” said Principal Deputy Assistant Attorney General Ciraolo. “Individuals who file false tax returns and fail to pay their fair share threaten the integrity of our nation’s tax system. The department, working with its partners at the IRS, remains committed to prosecuting those individuals who act as though they are above the law.”
“Victor Antolik’s attempts to hide his income from the IRS finally caught up with him as a jury found him guilty of filing false returns and impeding the due administration of the IRS,” said Chief Richard Weber of the IRS-Criminal Investigation (IRS-CI). “Individuals who file false returns to avoid paying their fair share of taxes are simply stealing from honest American taxpayers. The IRS and Department of Justice remain determined and vigilant in ferreting out such schemes and bringing these criminals to justice.”
Antolik faces a statutory maximum sentence of three years in prison on each count, as well as a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo thanked agents of the IRS-CI, who investigated the case and Tax Division Trial Attorneys Robert A. Kemins and David Zisserson, who prosecuted the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Western District of Texas for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tax Return Preparer Pleads Guilty to Preparing and Filing False Tax Returns with the IRSRead the Press Release
WASHINGTON - A Guilford County, North Carolina, resident pleaded guilty today to four counts of aiding and assisting in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
Marvin Flythe, 53, admitted that he ran a tax preparation business in Greensboro, North Carolina, called “TAXHOVA.” Between January 2012 and January 2015, Flythe admitted preparing and filing numerous individual income tax returns for clients on which he reported false business losses and false unreimbursed employee business expenses. Flythe maintained a YouTube video channel on which he advertised TAXHOVA. Flythe admitted to filing at least 36 false returns for clients, for which $130,949 in fraudulent refunds were paid. Flythe also admitted to filing false personal returns for himself for tax years 2011, 2012 and 2013 and to failing to file his 2014 return.
Flythe is scheduled to be sentenced on Nov. 14. He faces a statutory maximum sentence of three years in prison for each count of aiding and assisting in the preparation of false tax returns, as well as a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of Internal Revenue Service Criminal Investigation, who investigated the case, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Anand Ramaswamy of the Middle District of North Carolina, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
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Tahlequah Man Pleads Guilty to Drug Conspiracy, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JIMMY W. SEQUICHIE JR., age 25, of Tahlequah, Oklahoma, pled guilty to DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(B) and POSSESSION OF FIREARM IN FURTHERANCE OF A DRUG TRAFFICKING CRIME, in violation of Title 18, United States Code, Sections 924(c)(1)(A) and 2.
The Superseding Indictment filed on March 8, 2016, alleges that from in or about the end of 2013 and continuing until on or about January 27, 2016, in the Eastern District of Oklahoma, the defendant, did willfully and knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and the Distribution of 50 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
It further alleges that on or about November 25, 2015, within the Eastern District of Oklahoma, the defendant did knowingly possess a firearm in furtherance of a drug trafficking crime.
The Investigation revealed that Cody McClendon, an Indian Brotherhood (IBH) gang member, while an inmate with the Oklahoma Department of Corrections in McAlester, Oklahoma was utilizing a contraband cellular phone that he kept hidden on his person and inside his prison cell to facilitate the sale and distribution of methamphetamine. McClendon was doing this by using the cellular phone to communicate with co-conspirators via audio phone calls, text messages, and by communicating on the social media website Facebook. SEQUICHIE was an enforcer who would threaten or commit acts of violence to assist in the collection of drug debts for the organization and would receive methamphetamine in return for his services.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Tahlequah Police Department, the Muskogee Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the Drug Enforcement Administration. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment on count one is not less than 5 years and not more than 40 years imprisonment up to a $5,000,000.00 fine or both and count two is punishable by not less than 5 years imprisonment to be served consecutive to any other term of imprisonment imposed.
Assistant United States Attorney Shannon Henson represented the United States.
Statement of United States Attorney for the Central District of California after today’s ruling by the Ninth Circuit Court of Appeals in the consolidated Los Angeles County Sheriff’s casesRead the Press Release
LOS ANGELES – Today United States Attorney for the Central District of California Eileen M. Decker issued the following statement regarding the ruling of the Ninth Circuit Court of Appeals in the consolidated Los Angeles County Sheriff’s cases:
“The Ninth Circuit Court of Appeals' categorical rejection of the arguments raised by the seven former members of the Los Angeles County Sheriff's Department speaks volumes. Although the actions of these seven defendants tarnished the department they claimed to serve, we recognize that their criminal actions are not reflective of the conduct of the entire Los Angeles Sheriff’s Department, the vast majority of whom serve our community with integrity and honor every day.”
Six Men Charged in Manhattan Federal Court with Sex Trafficking of MinorsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”) announced the unsealing this morning of an indictment charging six defendants: NASHEAN FOLDS, a/k/a “Snow,” a/k/a “Nae Heffner,” DAVID HIGHTOWER, a/k/a “Haze,” GREGORY LUCK, a/k/a “Boogz,” a/k/a “Boogley,” TREMAIN MOORE, a/k/a “Trey Dub,” a/k/a, “Frass,” COREY ROPER, a/k/a “Sneaks,” and ANTWONE WASHINGTON, a/k/a “Bigbank Gotti,” a/k/a “Adam Reyes.” Each defendant was charged with conspiracy to commit sex trafficking of minors, sex trafficking of minors, and conspiracy to travel in interstate commerce and use facilities in interstate commerce to promote sex trafficking. ROPER was also charged with kidnapping. HIGHTOWER and MOORE were arrested on June 13, 2016 pursuant to a criminal complaint containing related charges and have been in federal custody since that time. LUCK, FOLDS, and ROPER were arrested yesterday and presented in Manhattan federal court before Magistrate Judge Barbara Moses. WASHINGTON remains at large. The case is assigned to United States District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara said: “The six defendants in this case allegedly trafficked minors for the purpose of using them as sex workers. The defendants’ alleged crime is particularly insidious in that they selected the victims specifically because of their vulnerable nature and their inability to fend for themselves. This office, along with our law enforcement partners at the FBI and NYPD, will continue to find, investigate and prosecute those engaged in sex trafficking.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Contrary to what some believe, the teenagers who get tangled up in the sex trade don’t do it for fun when they are abused and belittled by their pimps. These men allegedly knew exactly how to manipulate the girls in this case, and used their vulnerabilities against them so the subjects could make some cash. The FBI and our law enforcement partners are out every day and night doing all we can to track down the victims and stop the pimps from moving on to their next targets.”
New York Police Commissioner William J. Bratton said: “As alleged, the individuals preyed upon the vulnerable and uneducated, exploiting children for sex and profit. Protecting children is the most important work this department does. I am particularly proud of the detectives and agents who arrested those who carried out these heinous crimes that are alleged in today’s indictment.”
As alleged in the Indictment, the Complaint against HIGHTOWER and MOORE, and in other documents previously filed in Manhattan federal court[1]:
Beginning in or about February 2015 through the present, each of the defendants agreed to engage in sex trafficking of minor female victims, and actually did traffic at least four minor female victims in the Southern District of New York and elsewhere, and also agreed to travel in interstate commerce and use facilities of interstate commerce to promote their sex trafficking activities.
ROPER is also charged with kidnapping a female victim in or about February 2016.
As explained in the Complaint, sex traffickers like the defendants typically recruit vulnerable minor victims who lack education, a stable home, family support, and who have suffered past physical and emotional trauma. Sex traffickers often use their minor victims’ need for shelter, stability, and affection as a means to sexually exploit their victims for their own financial gain. Similarly, such sex traffickers or pimps often prey on young adult women who suffer many of the same vulnerabilities. Once these sex traffickers have recruited victims, they advertise them on websites dedicated to “escort” services and on classifieds websites. To evade detection by law enforcement, advertisements are posted in the adult entertainment section of the website and purport to offer individuals as mere escorts, but the advertisements signal that they are, in fact, offering individuals for sale for commercial sex acts.
It is also common for domestic sex traffickers to set rules for their victims, control their actions, and take their earnings. Often, if a victim violates one of the rules set by a sex trafficker, punishment is meted out in the form of physical violence. A violation of the rules could include, among other things, failing to answer the trafficker’s phone calls, leaving the area where the victim is supposed to be soliciting or servicing customers, not making enough money for the day, or holding back money from the sex trafficker.
In or about March 2016, prior to being charged in the Complaint, MOORE and HIGHTOWER were arrested on state charges after they brought three minor victims to Athens, Georgia, to promote their sex trafficking enterprise.
* * *
FOLDS, 20, is from Staten Island; LUCK, 20, WASHINGTON, 24, ROPER, 24, HIGHTOWER, 23, and MOORE, 22, are all from Queens, New York. All of the defendants face a maximum term of life in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentences imposed on the defendants will be determined by the Court.
A chart containing the names of the defendants, and the charges and maximum penalties they face, is attached.
Mr. Bharara praised the outstanding investigative work of the New York City Police Department’s Human Trafficking Team and the Federal Bureau of Investigation. Mr. Bharara also thanked the Georgia Bureau of Investigation, the District Attorney’s Office for Athens-Clarke County, the U.S. Attorney’s Office for the Middle District of Georgia, the Department of Homeland Security Investigations, the U.S. Attorney’s Office for the District of New Jersey, the Office of the State Attorney for the Third Judicial Circuit, the Nassau County District Attorney’s Office, the Nassau County Police Department, the Office of the Middlesex County Prosecutor, and the Edison New Jersey Police Department for their critical support and cooperation throughout the investigation.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Amanda L. Houle and Lara Pomerantz are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
16-218 ###
CHARGES
DEFENDANTS
MAXIMUM PENALTIES
Sex trafficking conspiracy
NASHEAN FOLDS
DAVID HIGHTOWER
GREGORY LUCK
TREMAINE MOORE
COREY ROPER
ANTWONE WASHINGTON
Life in prison
Sex trafficking of a minor
NASHEAN FOLDS
DAVID HIGHTOWER
GREGORY LUCK
TREMAINE MOORE
COREY ROPER
ANTWONE WASHINGTON
Life in prison
Mandatory minimum: 15 years in prison
Kidnapping
COREY ROPER
Life in prison
Conspiracy to use and travel in interstate commerce to promote unlawful activity
NASHEAN FOLDS
DAVID HIGHTOWER
GREGORY LUCK
TREMAINE MOORE
COREY ROPER
ANTWONE WASHINGTON
5 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Shreveport man sentenced to 66 months in prison for drug and firearm chargesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport man was sentenced to 66 months in prison for possession of marijuana with intent to distribute and possession of firearms in furtherance of drug trafficking.
Latrenton D. Washington, 29, of Shreveport, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession with intent to distribute marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime. He was also sentenced to three years of supervised release. According to the April 8, 2016 guilty plea, while executing a warrant for another defendant at Washington’s residence on August 12, 2014, Shreveport police and Louisiana Probation and Parole agents discovered marijuana, scales and drug packaging items along with a loaded Romarm WASR-10 semi-automatic (AK-47 style) rifle with a drum magazine holding 65 rounds of 7.62x39 mm ammunition and a loaded Taurus .45 caliber pistol in Washington’s bedroom.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF, Louisiana Department of Corrections Probation and Parole, and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Settlement with U.S. and Pennsylvania Requires Consol Energy to Implement Water Management Upgrades to Protect Ohio RiverRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA) and the state of Pennsylvania, announced today that Consol Energy Inc., CNX Coal Resources and Consol Pennsylvania Coal Co. LLC (Consol) have agreed to implement extensive water management and monitoring activities to prevent contaminated discharges of mining wastewater from the Bailey Mine Complex (Complex) in Greene and Washington Counties, Pennsylvania, to the Ohio River and its tributaries.
In a consent decree filed in federal court today in Pittsburgh, Pennsylvania, the company also agreed to continue to prevent certain discharges from the Complex, conduct regular long-term-monitoring to ensure sufficient storage capacity to prevent future discharges, develop contingency plans should future discharges become likely and implement an environmental management system to ensure compliance with the Clean Water Act and other applicable environmental laws. In addition Consol, the largest producer of coal from underground mines in the United States, will pay a $3 million civil penalty for Clean Water Act violations.
“We will continue to vigorously protect our District’s waterways and other vital natural resources,” said U.S. Attorney David J. Hickton for the Western District of Pennsylvania. “Today’s settlement ensures that our rivers remain safe for future generations to use and enjoy.”
“Mining operations that discharge to our rivers, lakes and streams have an obligation to comply with our nation’s laws that protect those water bodies, as well as public health,” said Regional Administrator Shawn M. Garvin for the EPA. “The actions required by today’s settlement represent a major step forward in protecting local waterways and the health of communities.”
The U.S. government’s complaint, filed concurrently with the settlement, alleges chronic exceedances of osmotic pressure (OP) and other limits in Consol’s Clean Water Act discharge permits. The discharges primarily enter into tributaries of the Ohio River. OP is the standard used in Pennsylvania to protect aquatic life from excess amounts of total dissolved solids (TDS). Too much TDS going into a water body can increase the salinity of the water and harm aquatic life and impact drinking water quality.
“Protecting Pennsylvania’s waterways is a top priority of DEP and we will not allow companies to pollute our rivers and streams,” said Acting DEP Secretary Patrick McDonnell. “CONSOL has agreed to improve their facilities to prevent future discharges, and the actions today will go a long way towards ensuring Pennsylvania’s waters are protected.”
Under the terms of the consent decree, Consol has agreed to:
- Complete and maintain certain water management measures to prevent discharges from certain outfalls at the Complex;
- Monitor and report quarterly and annually, to ensure adequate storage capacity to prevent future discharges;
- Submit and implement a plan for achieving long term compliance through advanced treatment in the event of projected exhaustion of storage capacity;
- Develop and implement an environmental management system to ensure environmental compliance throughout the Complex; and,
- Pay a $3 million civil penalty.
These measures will continue to reduce TDS in mining waters discharged to streams from the Complex. EPA estimates that implementation of the consent decree by Consol will eliminate more than 2.5 million pounds of pollutants in the form of TDS.
The consent decree, which is subject to a 30-day public comment period and final court approval, is available at: https://www.justice.gov/enrd/consent-decrees
Settlement with U.S. and Pennsylvania Requires Consol Energy to Implement Water Management Upgrades to Protect Ohio RiverRead the Press Release
WASHINGTON — The Department of Justice, the U.S. Environmental Protection Agency (EPA) and the state of Pennsylvania, announced today that Consol Energy Inc., CNX Coal Resources and Consol Pennsylvania Coal Co. LLC (Consol) have agreed to implement extensive water management and monitoring activities to prevent contaminated discharges of mining wastewater from the Bailey Mine Complex (Complex) in Greene and Washington Counties, Pennsylvania, to the Ohio River and its tributaries.
In a consent decree filed in federal court today in Pittsburgh, Pennsylvania, the company also agreed to continue to prevent certain discharges from the Complex, conduct regular long-term-monitoring to ensure sufficient storage capacity to prevent future discharges, develop contingency plans should future discharges become likely and implement an environmental management system to ensure compliance with the Clean Water Act and other applicable environmental laws. In addition Consol, the largest producer of coal from underground mines in the United States, will pay a $3 million civil penalty for Clean Water Act violations.
“We will continue to vigorously protect our District’s waterways and other vital natural resources,” said U.S. Attorney David J. Hickton for the Western District of Pennsylvania. “Today’s settlement ensures that our rivers remain safe for future generations to use and enjoy.”
“Mining operations that discharge to our rivers, lakes and streams have an obligation to comply with our nation’s laws that protect those water bodies, as well as public health,” said Regional Administrator Shawn M. Garvin for the EPA. “The actions required by today’s settlement represent a major step forward in protecting local waterways and the health of communities.”
The U.S. government’s complaint, filed concurrently with the settlement, alleges chronic exceedances of osmotic pressure (OP) and other limits in Consol’s Clean Water Act discharge permits. The discharges primarily enter into tributaries of the Ohio River. OP is the standard used in Pennsylvania to protect aquatic life from excess amounts of total dissolved solids (TDS). Too much TDS going into a water body can increase the salinity of the water and harm aquatic life and impact drinking water quality.
“Protecting Pennsylvania’s waterways is a top priority of DEP and we will not allow companies to pollute our rivers and streams,” said Acting DEP Secretary Patrick McDonnell. “CONSOL has agreed to improve their facilities to prevent future discharges, and the actions today will go a long way towards ensuring Pennsylvania’s waters are protected.”
Under the terms of the consent decree, Consol has agreed to:
- Complete and maintain certain water management measures to prevent discharges from certain outfalls at the Complex;
- Monitor and report quarterly and annually, to ensure adequate storage capacity to prevent future discharges;
- Submit and implement a plan for achieving long term compliance through advanced treatment in the event of projected exhaustion of storage capacity;
- Develop and implement an environmental management system to ensure environmental compliance throughout the Complex; and,
- Pay a $3 million civil penalty.
These measures will continue to reduce TDS in mining waters discharged to streams from the Complex. EPA estimates that implementation of the consent decree by Consol will eliminate more than 2.5 million pounds of pollutants in the form of TDS.The consent decree, which is subject to a 30-day public comment period and final court approval, is available at: www.justice.gov/enrd/.
Sanford Man Pleads Guilty to Firearms ChargesRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that William Klingensmith, 46, of Sanford, Maine, pleaded guilty today in U.S. District Court to possession of firearms by a prohibited person.
According to court records, Klingensmith possessed eleven firearms at different times between February and July 2015. He used two of them for target shooting at a range in Fairfield and had nine of them hanging on the wall of his former residence in Waterville. He was prohibited from possessing them because in 2010 he was convicted in Maine of domestic violence assault, a misdemeanor crime of domestic violence.
The defendant faces up to 10 years in prison, a $250,000 fine, and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waterville Police Department.
San Jose Man Sentenced to Eight Years in Prison for Sex Tourism and Obstruction of JusticeRead the Press Release
SAN FRANCISCO – Michael Lindsay was sentenced to eight years’ imprisonment yesterday after being convicted of traveling with intent to engage in illicit sexual conduct, engaging in illicit sexual conduct in foreign places, attempted witness tampering, and obstruction of justice announced United States Attorney Brian J. Stretch and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The sentence was handed down by Honorable Charles R. Breyer, U.S. District Judge.
Lindsay, 56, of San Jose, was convicted after a 4-day jury that concluded on May 19, 2016. The jury found that Lindsay traveled from San Francisco to Manila, the capital of the Republic of the Philippines, intending to have sex with a 13-year-old girl. He used instant messaging to communicate with the girl’s mother and to arrange meetings for sex. During trips to Manila in May and August of 2012, Lindsay had sex with the minor and paid the girl’s mother. HSI arrested Lindsay on November 8, 2012, at San Francisco International Airport, when he attempted to return to the Philippines for another visit.
“Sex tourism is a dangerous and insidious industry,” said U.S. Attorney Brian J. Stretch. “Today’s sentence serves as a reminder that U.S. law reaches and punishes those who, like the defendant, exploit the poverty and vulnerability of young children wherever in the world they may live in order to engage in illicit sexual conduct.”
“This sentence has brought accountability for the heinous actions of the defendant,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “Sex tourism is a cruel global underground industry. HSI will continue to work closely with our law enforcement partners to pursue anyone who seeks to exploit innocent victims through this crime.”
On December 13, 2012, a grand jury returned an indictment charging Lindsay with traveling with intent to engage in illicit sexual conduct in foreign places, in violation of 18 U.S.C. § 2423(b), and one count of engaging in illicit sexual conduct in foreign places, in violation of 18 U.S.C. § 2423(c). Email communications established that after a federal grand jury charged him, Lindsay engaged in attempted witness tampering and obstruction of justice. On February 9, 2016, a federal grand jury returned a second superseding indictment, adding charges of attempted witness tampering, in violation of 18 U.S.C. § 1512(b), and obstruction of justice, in violation of 18 U.S.C. § 1503. He was convicted on counts.
Judge Breyer also ordered a five-year term of supervised release, which includes a requirement that defendant register as a sex offender.
Assistant U.S. Attorneys Laura Vartain and Katherine Wawryzniak are prosecuting the case with the assistance of Helen Yee, Theresa Benitez, and Patricia Mahoney. This prosecution is the result of HSI investigations in both the Philippines and the United States.
Robert L. Capers Joined Queens District Attorney and Queens Borough President at the First-Ever Hate Crimes ForumRead the Press Release
Robert L. Capers, United States Attorney for the Eastern District of New York joined Queens District Attorney Richard A. Brown and Queens Borough President Melinda Katz at the first-ever Hate Crimes Forum yesterday in Queens Borough Hall, where law enforcement and community leaders and advocates discussed in depth what constitutes a hate crime and how these crimes are investigated and prosecuted.
“My office shares the commitment of the District Attorneys, law enforcement agencies and advocacy groups within the Eastern District of New York to making the district a safer place for everyone, by conducting outreach to prevent hate crimes and assisting our state partners or bringing federal prosecutions as appropriate,” stated U.S. Attorney Capers. “Crimes motivated by bias - whether against a race, gender, religious affiliation, sexual orientation or otherwise - will be addressed head on, with the goal of justice for all. We cannot reach our full potential and promise as a country until every person can live free from discrimination, harassment and violence.”
District Attorney Brown said, “In 1987, my office was the first District Attorney’s Office in New York City to establish a unit specifically focused on the prosecution of individuals who victimize others based on their own prejudices. Hate crimes – whether motivated by sexual orientation, gender, religious or ethnic bias – will never be tolerated in Queens County.”
Queens Borough President Katz said, “Yesterday’s Hate Crimes Forum helped reconvene a broad spectrum of community leaders, advocates and stakeholders to review the laws and procedures related to how hate crimes are investigated and prosecuted. Hate crimes are taken very seriously in the Borough of Queens, and combating it requires the collaboration of various entities. Thank you to District Attorney Brown, the NYPD and U.S. Attorney Robert Capers for working with my office to host this important forum.”Assistant Commissioner for the Law Enforcement Bureau at the New York City Commission on Human Rights Sapna V. Raj said, “Everyone in New York City deserves to be treated with dignity and respect. The Commission enforces one of the strongest City anti-discrimination laws in the nation and strives to educate every New Yorker about protections under the law. Yesterday’s forum provided a great opportunity for advocates and community members to learn about the City’s many resources and services available to victims of discrimination.”
More than 50 different community groups and organizations attended the Hate Crimes Forum, which included formal presentations from the invited speakers and a question and answer segment to zero in on community concerns.
Featured Speakers Included:
▸ Robert L. Capers, the U.S. Attorney for the Eastern District of New York
▸ Deputy Inspector Mark Magrone, the commanding officer of the New York City Police Department’s Hate Crimes Task Force
▸ Queens Assistant District and Section Chief Attorney Michael E. Brovner, of District Attorney Brown’s Gang Violence and Hate Crimes Bureau
▸ Assistant Commissioner Sapna V. Raj, of New York City’s Commission on Human Rights
▸ Lead Advisor Rama Issa, Community Relations Bureau, of the New York City Commission on Human Rights
The goal of the forum was to reach out to the vibrant Queens community of organizations and community groups in order to provide information about the law enforcement response to hate crimes. The turnout reflected a vast diversity of ethnic, racial, religious, sexual orientation and geographical interest, to name a few. In turn, it also provided an opportunity for law enforcement representatives to hear about the community concerns in regards to this topic, as well as some others.In addition to the featured speakers, there were several pieces of hate crime prevention artwork displayed at the venue. The thought-provoking images were created for an annual art contest and exhibition established by the Organization of Chinese Americans-New York Chapter. The competition was designed to engage young people and to encourage them to speak out against hate crimes through creative expression.
The conference was organized by Assistant District Attorney Mariela Palomino Herring, Bureau Chief of District Attorney Brown’s Gang Violence and Hate Crimes Bureau, under the supervision of Executive Assistant District Attorney Jesse Sligh, Special Prosecutions Division, and in collaboration with Susie Tanenbaum, Director of Immigrant and Intercultural Affairs, Queens Borough President’s Office.
Raymond “Shrimp Boy” Chow Sentenced to Life in Prison for Murder and Various Racketeering CrimesRead the Press Release
SAN FRANCISCO – Kwok Cheung Chow, AKA Raymond Chow, AKA Ha Jai, AKA Shrimp Boy was sentenced today to life in prison following his convictions for racketeering, murder, money laundering, and conspiracy charges, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael Batdorf. The sentence was handed down by the Honorable Charles R. Breyer, United States District Judge.
Chow, 55, of San Francisco, served as the Dragonhead, or leader, of the San Francisco-based Chee Kung Tong organization. On January 8, 2016, a federal jury found Chow guilty of criminal activities in connection with the racketeering organization and additional conspiracies. In all, Chow was charged with 162 counts including 125 counts of money laundering, aiding and abetting the laundering of proceeds of narcotics sales, conspiring to deal in illegal sales of goods (including 50 cases of Hennessey XO and 27 cases of Johnnie Walker Blue Label Scotch Whiskey), and engaging in the illegal sale of cigarettes (over 10,000). Chow originally was charged with various racketeering related crimes in a criminal complaint filed March 24, 2015. The complaint charged that the purposes of the organization included the illegal trafficking of controlled substances, extortion, and participation in the collection of illegal debts. On October 15, 2015, the charges were formally amended in a Third Superseding Indictment to include murder. Chow was charged with and convicted of arranging the murder of Allen Leung and conspiring with others to murder Jim Tat Kong. The jury found Chow guilty of every one of the 162 charges leveled against him.
In sentencing Chow, Judge Breyer said, “The murder in this case [of Mr. Leung] that requires the life sentence was particularly callous because it was the removal of an obstacle to your ascension to power. So whether you paid for it, or not, the question is: what is your motivation for doing so? And your motivation for doing so was to take over the leadership role of the tong and corrupt their purposes.”
“Today, Mr. Chow was sentenced to serve the rest of his life in prison,” said U.S. Attorney Brian J. Stretch. “We hope that this prosecution and the resulting sentence provides the victims and their families with some measure of satisfaction that Mr. Chow will never again be free to continue with his life of crime.”
“This sentence reflects our commitment to vigorously pursue justice for the victims and community that Mr. Chow preyed off of for so long,” said FBI Special Agent in Charge John F. Bennett. “We hope that the sentence brings some form of closure for the families of Allen Leung and Jim Tat Kong, and shows that type of greed and violence will not be tolerated.”
“This was a case about power and greed,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “From narcotics trafficking to public corruption and murder, Mr. Chow laundered millions of dollars in drug and other illegal proceeds for a profit. Today’s sentencing closes the chapter on Mr. Chow’s life of crime.”
In addition to the life term of imprisonment, Judge Breyer also sentenced Chow to pay a special assessment of $16,200, to pay restitution in the amount of $15,881.60, and to forfeit $225,000. The Judge also issued an order enjoining Chow and others from profiting from his life story. Chow has been in custody since his arrest on March 26, 2014, and will begin serving his life sentence immediately.
Assistant U.S. Attorneys William Frentzen, Susan Badger, S. Waqar Hasib, and David Countryman prosecuted the case with the assistance of Rosario Calderon, Kurt Kosek, Ana Guerra, Marina Ponomarchuk, Victoria Etterer, Lance Libatique, and Bridget Kilkenny. The prosecution is the result of an investigation by Federal Bureau of Investigation; the U.S. Marshal Service, San Francisco Police Department Gang Task Force; Oakland Police Department; Internal Revenue Service, Criminal Investigation; New York Police Department; Mercer County New Jersey Sheriff's Office; and the San Francisco and Alameda County Sheriff’s Departments.
Rapid City Man Sentenced for Production of Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City man convicted of Production of Child Pornography was sentenced on July 29, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Wallace Arthur Beane, age 53, was sentenced to 30 years in custody, a lifetime of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Beane was indicted on April 21, 2015, and pleaded guilty on January 8, 2016. The charge related to Beane knowingly producing images of child pornography on his phone in 2014 and 2015. These images would be taken after he lured the children into his apartment with candy, alcohol, cigarettes, little pink pills, clothing and/or money.
This case was investigated by the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Beane was immediately turned over to the custody of the U.S. Marshals Service.
Quincy Man Sentenced for Possession of Firearms and AmmunitionRead the Press Release
BOSTON – A Quincy man was sentenced today in U.S. District Court in Boston in connection with being a convicted felon in possession of a firearms and ammunition.
George J. Perry, 40, who was classified by the Court as an armed career criminal, was sentenced by U.S. District Court Judge Rya W. Zobel to 15 years in prison and three years of supervised release. In February 2016, Perry pleaded guilty to being a felon in possession of a firearms and ammunition.
In February 2015, law enforcement became aware that Perry had assaulted a individual in Waltham with a firearm earlier in the day. Law enforcement officers located Perry and found in his backpack two loaded semi-automatic firearms. One of the firearms, a .40 caliber IWI Desert Storm, was loaded with 10 rounds of .40 caliber ammunition. The other firearm was a 9mm Ruger semi-automatic loaded with 17 rounds of 9mm ammunition. Perry was later interviewed and admitted to stealing the firearms from another individual earlier in the day. The other individual, Zeph Pitt, of Waltham, was later located and found to be in possession of five other firearms and thousands of rounds of various caliber ammunition.
Pitt, a previously convicted felon, was convicted of being a felon in possession of firearms and ammunition and scheduled to be sentenced in November 2016.
United States Attorney Carmen M. Ortiz; Lawrence J. Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco Firearms & Explosives, Boston Field Division; and Waltham Police Chief Keith MacPherson, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Previously Convicted Felon from Union County, New Jersey, Charged with Illegally Possessing FirearmsRead the Press Release
NEWARK, N.J. – An Elizabeth, New Jersey, man who allegedly sold guns to an undercover federal agent was arrested this morning and charged with possessing firearms as a previously convicted felon, U.S. Attorney Paul J. Fishman announced.
Daniel Bigelow, 27, is charged by complaint with one count of being a felon in possession of a firearm. He made his initial appearance this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
After obtaining information that he was illegally selling firearms in New Jersey, special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted controlled purchases with Bigelow. On April 12, 2016, Bigelow allegedly sold a Hi-Point Model 995 9mm rifle and a .357 Smith and Wesson revolver to an undercover federal agent. At the time, Bigelow had at least one prior felony conviction in Union County Superior Court.
The felon-in-possession of a firearm charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited ATF special agents, under the direction Special Agent in Charge George P. Belsky in Newark, with the investigation. He also thanked the Elizabeth Police Department for their work in the case.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Pimp Sentenced to 30 Years in Federal PrisonRead the Press Release
LAS VEGAS, Nev. – A California man was sentenced today by U.S. District Judge James C. Mahan to 30 years in prison and lifetime supervised release following his jury convictions for felony sex trafficking offenses involving a minor, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Assisted by his partner, this five-time convicted felon preyed on his minor victim simply for the purpose of enriching his own pocketbook,” said U.S. Attorney Bogden. “We will work with our local and federal law enforcement partners to ensure that the persons who engage in this type of criminal activity are arrested and prosecuted.”
Daniel James Barnes, 33, of Merced, Calif., was found guilty on April 6 of one count of conspiracy to commit sex trafficking of a child, one count of sex trafficking of a child, one count of transportation of a minor for prostitution, and one count of conspiracy to commit sexual exploitation of a child.
According to the court records, in April 2013, co-defendant, Amber Lynn Marquardt met a 15-year-old girl in the area of Boulder Highway and Tropicana in Las Vegas where they were both working as prostitutes. Marquardt introduced the girl to her pimp, Barnes, and the girl went to work for Barnes the following day and provided all of her earnings to him. That night, Barnes, Marquardt, and the female victim traveled to California, spending one night in a motel in Modesto, and approximately two weeks in motels in and around Merced. In Merced, Marquardt took sexually explicit photographs of the 15-year-old female and posted them on the internet site, MyRedbook.com, commonly used by pimps and prostitutes to promote their business. The 15-year-old female worked as a prostitute while they stayed in Merced, and provided all of her earnings to Barnes. After two weeks in California, Barnes, Marquardt and the 15-year-old girl drove back to Las Vegas and checked into a hotel on the Boulder Highway. The 15-year-old was arrested in May in the area of Tropicana and Polaris after she solicited an undercover Las Vegas Metropolitan Police Department detective for sex. Barnes and Marquardt were arrested in September 2013 at a motel in Santa Rosa, Calif.
Barnes has five prior felony convictions in California related to narcotics, burglary, and evading arrest.
Marquardt pleaded guilty to transportation of a minor for prostitution, and was sentenced on May 31 to 41 months in prison and five years of supervised release.
The case was investigated by the FBI and Las Vegas Metropolitan Police Department, and prosecuted by Assistant U.S. Attorney Cristina D. Silva.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Pennsylvania man sentenced for cocaine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ralph Gaston, 25, of Monroeville, Pennsylvania was sentenced to 77 months in prison for cocaine distribution, United States Attorney William J. Ihlenfeld, II, announced.
Gaston admitted to distributing cocaine in Harrison County, WV. He pled guilty in February 2016 to one count of “Distribution of Cocaine Base.”
Assistant United States Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Passaic County, New Jersey, Man Charged with String of Bank RobberiesRead the Press Release
NEWARK, N.J. – A Passaic, New Jersey, man has been arrested and charged in connection with a spree of bank robberies in Hudson, Union, and Passaic counties last month, U.S. Attorney Paul J. Fishman announced today.
Quentin Morales, a/k/a “Quinton Morales,” 25, is charged by criminal complaint with four counts of bank robbery and one count of attempted bank robbery. He appeared Aug. 3, 2016, before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained. Prior to his arrest Morales was one of Newark FBI’s most wanted bank robbers.
According to the complaint, Morales robbed, or attempted to rob, the following New Jersey banks:
Bank
Location
Date
Wells Fargo Bank
Kearny, New Jersey
June 24, 2016
Capital One Bank*
Elizabeth, New Jersey
June 27, 2016
Wells Fargo Bank
Kenilworth, New Jersey
June 30, 2016
Wells Fargo Bank
Linden, New Jersey
July 6, 2016
Wells Fargo Bank
Clifton, New Jersey
July 13, 2016
*attempted bank robbery
At each bank, Morales presented a note demanding cash from bank tellers. During the July 13, 2016, robbery, for example, Morales handed the teller a note which stated: “You are being robbed. Give me all your large bills. No alarms. No dye packs. You got 10 seconds.” On at least two occasions, Morales said he had a gun and urged bank tellers to hurry. He was apprehended on Aug. 2, 2016, by officers of the N.J. State Parole Board.
Each bank robbery or attempted bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI’s Violent Crimes/Interstate Theft Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked the N.J. State Parole Board and the Kearny, Elizabeth, Kenilworth, Linden, Clifton, Union Township and Newark police departments, as well as the Essex County Prosecutor’s Office for their efforts in the investigation and apprehension of Morales.
The government is represented by Special Assistant U.S. Attorney Stephanie Raney of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and the allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender
Passaic County, New Jersey, Man Charged with String of Bank RobberiesRead the Press Release
NEWARK, N.J. – A Passaic, New Jersey, man has been arrested and charged in connection with a spree of bank robberies in Hudson, Union, and Passaic counties last month, U.S. Attorney Paul J. Fishman announced today.
Quentin Morales, a/k/a “Quinton Morales,” 25, is charged by criminal complaint with four counts of bank robbery and one count of attempted bank robbery. He appeared Aug. 3, 2016, before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained. Prior to his arrest Morales was one of Newark FBI’s most wanted bank robbers.
According to the complaint, Morales robbed, or attempted to rob, the following New Jersey banks:
Bank
Location
Date
Wells Fargo Bank
Kearny, New Jersey
June 24, 2016
Capital One Bank*
Elizabeth, New Jersey
June 27, 2016
Wells Fargo Bank
Kenilworth, New Jersey
June 30, 2016
Wells Fargo Bank
Linden, New Jersey
July 6, 2016
Wells Fargo Bank
Clifton, New Jersey
July 13, 2016
*attempted bank robbery
At each bank, Morales presented a note demanding cash from bank tellers. During the July 13, 2016, robbery, for example, Morales handed the teller a note which stated: “You are being robbed. Give me all your large bills. No alarms. No dye packs. You got 10 seconds.” On at least two occasions, Morales said he had a gun and urged bank tellers to hurry. He was apprehended on Aug. 2, 2016, by officers of the N.J. State Parole Board.
Each bank robbery or attempted bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI’s Violent Crimes/Interstate Theft Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked the N.J. State Parole Board and the Kearny, Elizabeth, Kenilworth, Linden, Clifton, Union Township and Newark police departments, as well as the Essex County Prosecutor’s Office for their efforts in the investigation and apprehension of Morales.
The government is represented by Special Assistant U.S. Attorney Stephanie Raney of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and the allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender
Norway Citizen Charged with Making Threatening Interstate CommunicationsRead the Press Release
Contact: Michael J. Conley
Craig M. Wolff
Assistant United States Attorneys
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that Espen Brungodt, 28, of Norway, was arrested and charged in U.S. District Court by criminal complaint with making threatening interstate communications.
According to court records, on August 3, 2016, Brungodt sent an email to the Portland Police Department in which he threatened to kill police officers.
The defendant will make an initial appearance in U.S. District Court in Portland today at 2:00 p.m.
He faces up to five years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Portland Police Department.
A criminal complaint is merely an accusation and a defendant is presumed innocent unless proven guilty in a court of law.
North Country Man Pleads Guilty to Illegal Gun PurchaseRead the Press Release
ALBANY, NEW YORK – Donald J. Shappy, Jr., age 57, of Keeseville, New York, pled guilty today to making a false statement during the purchase of a firearm.
The announcement was made by United States Attorney Richard S. Hartunian, Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) New York Field Division, and New York State Police Superintendent George P. Beach II.
Shappy admitted that on March 7, 2016, he falsely certified that he was the true purchaser of a Henry Repeating Arms .22 caliber rifle when he then knew that he was purchasing the firearm for his nephew, Jonathon Shappy, who had been denied the ability to purchase the same rifle two days earlier.
Jonathan Shappy is charged with aiding and abetting his uncle’s false statements. He is presumed innocent until proven guilty.
As a result of his conviction, Donald Shappy faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced by U.S. District Judge Mae D’Agostino on December 1, 2016. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
North Carolina man charged with providing support to ISILRead the Press Release
A Charlotte, North Carolina, man was arrested this morning on a federal complaint charging him with conspiring to provide material support to the Islamic State of Iraq and Levant (ISIL), a designated foreign terrorist organization.
Erick Jamal Hendricks, 35, tried to recruit people to train together and conduct terrorist attacks in the United States on behalf of ISIL, according to a criminal complaint unsealed today in U.S. District Court in the Northern District of Ohio.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Office.
According to the complaint, in June 2015, an individual (CW-1) was arrested in the Northern District of Ohio after attempting to purchase an AK-47 assault rifle and ammunition from an undercover law enforcement officer. CW-1 had pledged allegiance to ISIL in social media and made statements expressing interest in conducting attacks in the United States.
Hendricks had contacted CW-1 over social media to recruit him in the spring of 2015, according to the complaint. Hendricks allegedly told CW-1 that he “needed people” and wanted to meet in person; that there were several “brothers” located in Texas and Mexico; that he was attempting to “get brothers to meet face to face;” and that he wanted “to get brothers to train together.”
According to the complaint, CW-1 said that Hendricks tested his religious knowledge and commitment, inquiring about his willingness to commit “jihad,” to die as a “martyr” and his desire to enter “jannah” (paradise). CW-1 understood these statements to mean that Hendricks was recruiting people to train together for the purpose of conducting a terrorist attack in the U.S. and to see if CW-1 was suitable for recruitment, according to the allegations. CW-1 allegedly believed that Hendricks and the “brothers in Texas and Mexico” may have been responsible for a thwarted terrorist attack in Garland, Texas, on May 3, 2015, and therefore CW-1 decided to stay away from social media for a period following the attack to minimize detection by law enforcement.
Hendricks also allegedly communicated over social media with several other people, including an undercover FBI employee (UCE-1). According to the complaint, on April 16, 2015, Hendricks instructed UCE-1 to download the document “GPS for the Ghuraba in the U.S.”, which included a section entitled “Final Advice” which advocated that “brothers and sisters” should not allow themselves to go to jail. This section also allegedly encouraged Muslims to die as a “Shaheed” (martyr), to “Boobie trap your homes,” to “lay in wait for them” and to “never leave your home without your AK-47 or M16.” According to the complaint, Hendricks also directed UCE-1 to communicate online with other people and stated “It’s hard to sift through brothers;” “Allah chooses only the few;” and “Everyday I do this day in and day out.”
Hendricks allegedly told another person that his goal was to create a sleeper cell to be trained and housed at a secure compound that would conduct attacks in the United States. He mentioned that potential targets included military members whose information had been released by ISIL and the woman who organized the “Draw Prophet Mohammad contest,” and he claimed to have 10 members signed up for his group, according to allegations in the complaint.
On April 23, 2015, Hendricks allegedly used social media to contact Elton Simpson, who, along with Nadir Hamid Soofi, was inspired by ISIL and launched the attack on the “First Annual Muhammad Art Exhibit and Contest” in Garland. Simpson and Soofi opened fire, wounding a security guard, before Garland police returned fire and killed both Simpson and Soofi. According to the complaint, Hendricks also connected UCE-1 with Simpson via social media; communicated with UCE-1 about the contest in Garland; and directed UCE-1 to go to the contest. Hendricks allegedly said: “If you see that pig (meaning the organizer of the contest) make your ‘voice’ heard against her.” According to the complaint, he also asked UCE-1 a series of questions related to security at the event, including: “How big is the gathering?” “How many ppl?” “How many police/agents?” “Do you see feds there?’ “Do you see snipers?” and “How many media?” Shortly thereafter, Simpson and Soofi committed the attack on the cartoon drawing contest.
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Hendricks faces a statutory maximum sentence of 15 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI’s offices in Cleveland; Columbia, South Carolina; Baltimore; and Charlotte, North Carolina, with assistance from the Justice Department’s National Security Division and the U.S. Attorney’s Offices in the Northern District of Ohio, District of Maryland, District of South Carolina and the Western District of North Carolina.
North Carolina Man Charged with Conspiring to Provide Material Support to ISILRead the Press Release
A Charlotte, North Carolina, man was arrested this morning on a federal complaint charging him with conspiring to provide material support to the Islamic State of Iraq and Levant (ISIL), a designated foreign terrorist organization.
Erick Jamal Hendricks, 35, tried to recruit people to train together and conduct terrorist attacks in the United States on behalf of ISIL, according to a criminal complaint unsealed today in U.S. District Court in the Northern District of Ohio.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Office.
According to the complaint, in June 2015, an individual (CW-1) was arrested in the Northern District of Ohio after attempting to purchase an AK-47 assault rifle and ammunition from an undercover law enforcement officer. CW-1 had pledged allegiance to ISIL in social media and made statements expressing interest in conducting attacks in the United States.
Hendricks had contacted CW-1 over social media to recruit him in the spring of 2015, according to the complaint. Hendricks allegedly told CW-1 that he “needed people” and wanted to meet in person; that there were several “brothers” located in Texas and Mexico; that he was attempting to “get brothers to meet face to face;” and that he wanted “to get brothers to train together.”
According to the complaint, CW-1 said that Hendricks tested his religious knowledge and commitment, inquiring about his willingness to commit “jihad,” to die as a “martyr” and his desire to enter “jannah” (paradise). CW-1 understood these statements to mean that Hendricks was recruiting people to train together for the purpose of conducting a terrorist attack in the U.S. and to see if CW-1 was suitable for recruitment, according to the allegations. CW-1 allegedly believed that Hendricks and the “brothers in Texas and Mexico” may have been responsible for a thwarted terrorist attack in Garland, Texas, on May 3, 2015, and therefore CW-1 decided to stay away from social media for a period following the attack to minimize detection by law enforcement.
Hendricks also allegedly communicated over social media with several other people, including an undercover FBI employee (UCE-1). According to the complaint, on April 16, 2015, Hendricks instructed UCE-1 to download the document “GPS for the Ghuraba in the U.S.”, which included a section entitled “Final Advice” which advocated that “brothers and sisters” should not allow themselves to go to jail. This section also allegedly encouraged Muslims to die as a “Shaheed” (martyr), to “Boobie trap your homes,” to “lay in wait for them” and to “never leave your home without your AK-47 or M16.” According to the complaint, Hendricks also directed UCE-1 to communicate online with other people and stated “It’s hard to sift through brothers;” “Allah chooses only the few;” and “Everyday I do this day in and day out.”
Hendricks allegedly told another person that his goal was to create a sleeper cell to be trained and housed at a secure compound that would conduct attacks in the United States. He mentioned that potential targets included military members whose information had been released by ISIL and the woman who organized the “Draw Prophet Mohammad contest,” and he claimed to have 10 members signed up for his group, according to allegations in the complaint.
On April 23, 2015, Hendricks allegedly used social media to contact Elton Simpson, who, along with Nadir Hamid Soofi, was inspired by ISIL and launched the attack on the “First Annual Muhammad Art Exhibit and Contest” in Garland. Simpson and Soofi opened fire, wounding a security guard, before Garland police returned fire and killed both Simpson and Soofi. According to the complaint, Hendricks also connected UCE-1 with Simpson via social media; communicated with UCE-1 about the contest in Garland; and directed UCE-1 to go to the contest. Hendricks allegedly said: “If you see that pig (meaning the organizer of the contest) make your ‘voice’ heard against her.” According to the complaint, he also asked UCE-1 a series of questions related to security at the event, including: “How big is the gathering?” “How many ppl?” “How many police/agents?” “Do you see feds there?’ “Do you see snipers?” and “How many media?” Shortly thereafter, Simpson and Soofi committed the attack on the cartoon drawing contest.
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Hendricks faces a statutory maximum sentence of 15 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI’s offices in Cleveland; Columbia, South Carolina; Baltimore; and Charlotte, North Carolina, with assistance from the Justice Department’s National Security Division and the U.S. Attorney’s Offices in the Northern District of Ohio, District of Maryland, District of South Carolina and the Western District of North Carolina.
New Orleans Man Pleads Guilty to Drug and Firearms ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LEROY SMITH, age 32, of New Orleans, pled guilty yesterday to conspiracy to distribute and to possess with the intent to distribute 100 grams or more of acetyl fentanyl and 100 grams or more of heroin. SMITH also pled guilty to possessing firearms in furtherance of his drug-trafficking activities.
According to court documents, in 2014 and 2015, SMITH and others engaged in a conspiracy to distribute acetyl fentanyl and heroin to over twenty different customers in the New Orleans area. SMITH worked with his co-conspirators to order and receive packages of acetyl fentanyl from a source in China. In April 2015, law enforcement intercepted two packages of acetyl fentanyl that were mailed from the Chinese source to associates of SMITH in the New Orleans area. The packages contained a total of one-and-a-half kilograms of acetyl fentanyl, which SMITH planned to package and resell as “heroin” in the New Orleans area. At the time of his arrest on July 13, 2015, SMITH was in possession of heroin, drug paraphernalia, almost $3000 in United States currency, and multiple loaded firearms.
SMITH is facing a mandatory minimum sentence of ten years in prison and a maximum life sentence for the drug conspiracy charge and a mandatory sentence of at least five years in prison for the firearm charge. U.S. District Judge Ivan L.R. Lemelle set sentencing for November 2, 2016.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, United States Customs and Border Protection, United States Postal Service, Louisiana State Police, New Orleans Police Department, Jefferson Parish Sheriff Office, St. Bernard Parish Sheriff Office, St. Charles Parish Sheriff Office, and Kenner Police Department in investigating this matter. Assistant United States Attorneys Brandon S. Long and Nicholas D. Moses are in charge of the prosecution.
Mexico City Man Sentenced to 168 Months in Prison for Consiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA- On August 3, 2016, Jaime Castillo Gomez, 39, of Mexico City, Mexico, was sentenced by Senior United States District Court Judge James E. Gritzner to 168 months in prison announced United States Attorney Kevin E. VanderSchel. Castillo Gomez was also ordered to a five year term of supervised release, to follow his imprisonment.
On February 26, 2016, Castillo Gomez pled guilty to conspiracy to distribute methamphetamine, which was the result of an investigation by law enforcement of methamphetamine trafficking that occurred in the Omaha-Council Bluffs metro area for over a one-year time period. Beginning at least as early as November of 2014, and continuing through September of 2015, Castillo Gomez conspired with multiple other individuals to distribute at least 1.5 kilograms of methamphetamine in the Southern District of Iowa and elsewhere.
This matter was investigated by the Federal Bureau of Investigation’s Greater Omaha Safe Streets Task Force and the Southwest Iowa Narcotics Enforcement Task Force. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Mescalero Apache Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Raybert Darin Ahidley, 29, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pled guilty today in federal court in Las Cruces, N.M., to a sexual abuse of a minor charge.
Ahidley was arrested on Feb. 8, 2016, on a criminal complaint charging him with sexually abusing a minor who was between 12 and 16 years of age in Otero County, N.M. The criminal complaint indicated that the victim is also a member of the Mescalero Apache Nation.
During today’s proceedings, Ahidley pled guilty to a felony information charging him with sexually abusing a minor. In entering the guilty plea, Ahidley admitted that he was 29 years old when he engaged in a sexual act with the victim who was 15 years old at the time. Ahidley further admitted that the abuse took place on the Mescalero Apache reservation in Otero County.
At sentencing, Ahidley faces a statutory maximum penalty of 15 years in federal prison. He will be required to register as a sex offender after he completes his prison sentence. Ahidley remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services. The case is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office 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/.
Members of Queens-Based Drug Trafficking Crew Indicted for Heroin Trafficking Conspiracy, Kidnapping, and Firearms OffensesRead the Press Release
Earlier today, an indictment was unsealed charging Gonzalo Erick Aguilar Vargas, also known as “Erick Aguilar” and “Erick Vargas,” Hillary Calle, Kiancin Lee, also known as “Mala,” Monica Vargas, and Ricky Vargas with conspiring to traffic heroin, conspiring to kidnap, kidnapping, and possessing and brandishing firearms in relation to the charged heroin trafficking and kidnapping crimes. The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Steven M. Gold at the federal courthouse in Brooklyn, New York.
The charges and arrests were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Angel M. Melendez, Special Agent-in-Charge, New York, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI); James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
As alleged in the indictment, on February 6, 2015, a member of the defendants’ drug trafficking crew was arrested while picking up a parcel containing heroin sent from Ecuador through John F. Kennedy International Airport into Queens, New York. The crew member was released from law enforcement custody later that day. The following day, the defendants kidnapped the crew member and his female companion in Manhattan so that their leader, Gonzalo Erick Aguilar Vargas, could confront him regarding the lost parcel of heroin. Hillary Calle, Monica Vargas, and Ricky Vargas drove the two victims to New Jersey and then returned with them through Manhattan to Queens, where they waited for other crew members to arrive. Kiancin Lee and another crew member subsequently arrived and ordered the kidnapped crew member into a vehicle. When he refused, Ricky Vargas, Kiancin Lee, and the other crew member viciously assaulted him using firearms. The victim crew member ultimately escaped and his female companion was later released.
“As detailed in the indictment, the defendants were members of a drug trafficking organization that imported heroin from Ecuador through John F. Kennedy Airport and distributed it throughout the New York City area,” stated United States Attorney Capers. “The defendants allegedly kidnapped and viciously assaulted a member of their crew after he was arrested in another case in order to enforce their control over the crew’s activities. As this prosecution demonstrates, we are committed to working closely with our local partners, including city, state, and federal law enforcement, to rid our communities of the ravages of drug trafficking and its related violence.” Mr. Capers extended his grateful appreciation to the Office of Queens County District Attorney Richard A. Brown for its assistance with this investigation and prosecution, as well as the New York Field Office of United States Customs and Border Protection.
“Drugs and guns are a deadly combination and every seizure makes our community safer. These arrests and indictments demonstrate our relentless pursuit to remove drug traffickers from our streets,” said HSI New York Special Agent-in-Charge Melendez. “The safety of our communities is one of HSI’s top priorities. HSI and our state, federal, and local law enforcement partners pool information and resources to target drug smuggling and related criminal elements.”
“Underscoring the brutality linked with drug trafficking, the Vargas organization’s alleged crimes are a reminder of the dark side of drug trafficking-firearms offenses, kidnappings, and assaults. By working with our federal, state, and local law enforcement partners, five alleged members of a violent heroin trafficking organization were investigated, indicted, and arrested,” said DEA New York Special Agent-in-Charge Hunt.
“This investigation is the latest example of the multi-agency collaboration needed to combat crime from Ecuador to the tarmac at John F. Kennedy airport. That collaboration that resulted in today’s arrest for alleged kidnapping and firearms offenses was all to further an illicit and violent drug business,” said New York City Police Commissioner Bratton. “I commend the work of the investigators and prosecutors involved in making this case.”
The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of all counts, defendants Gonzalo Erick Aguilar Vargas, Kiancin Lee, and Ricky Vargas face a mandatory minimum of 17 years’ imprisonment and a maximum of life imprisonment. The defendants Hillary Calle and Monica Vargas face a mandatory minimum of 10 years’ imprisonment and a maximum of life imprisonment.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Patrick T. Hein is in charge of the prosecution.
The Defendants:
GONZALO ERICK AGUILAR VARGAS, also known as “Erick Aguilar” and “Erick Vargas”
Age: 23HILLARY CALLE
Age: 23KIANCIN LEE, also known as “Mala”
Age: 23MONICA VARGAS
Age: 44RICKY VARGAS
Age: 24E.D.N.Y. Docket No. 16-CR-406
Mellette County Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mellette County, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 4, 2016, by U.S. District Judge Roberto A. Lange.
Helen Ann Clifford, age 44, was sentenced to 42 months in custody, 3 years of supervised release, a $1,000 fine, and $100 special assessment to the Federal Crime Victims Fund. Clifford was also ordered to forfeit U.S. currency and two handguns seized by law enforcement in September 2015.
Clifford was indicted for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person by a federal grand jury on January 21, 2016. She pled guilty to Conspiracy to Distribute a Controlled Substance on April 19, 2016.
From May 2014 through September 2015, Clifford received and distributed methamphetamine in South Dakota. The individuals who provided Clifford with large amounts of methamphetamine knew she intended to engage in further distribution. It was reasonably foreseeable to Clifford that more than 50 grams of methamphetamine would be distributed during the course of this conspiracy.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Clifford was immediately turned over to the custody of the U.S. Marshals Service.
Manhattan U.S. Attorney Charges 46 Leaders, Members, and Associates of Several Organized Crime Families of La Cosa Nostra with Wide-Ranging Racketeering ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), and James A. McCarty, Acting District Attorney for Westchester County, announced today the unsealing of an Indictment charging 46 defendants for their alleged roles in a sprawling and long-running racketeering conspiracy composed of leaders, members, and associates of the Genovese, Gambino, Luchese, Bonanno, and Philadelphia Organized Crime Families of La Cosa Nostra (“LCN”), who worked together to engage in a multitude of criminal activities throughout the East Coast of the United States between Springfield, Massachusetts, and Southern Florida (the “East Coast LCN Enterprise” or the “Enterprise”). The defendants are charged with racketeering conspiracy, arson, illegal trafficking in firearms, and conspiracy to commit assault in aid of racketeering.
Thirty-nine of the defendants charged were taken into custody today. During the arrests, law enforcement officers recovered, among other items, three handguns, a shotgun, gambling paraphernalia, and more than $30,000 in cash.
Two defendants, CONRAD IANNIELLO and PASQUALE MAIORINO, a/k/a “Patty Boy,” were already in federal custody on other charges. Another defendant, JOHN LEMBO, was already in custody on state charges and will be transferred to federal custody. Six defendants, JOSEPH MERLINO, a/k/a “Joey,” PASQUALE CAPOLONGO, a/k/a “Patsy,” a/k/a “Pat C.,” a/k/a “Mustache Pat,” a/k/a “Fish,” FRANK TRAPANI, a/k/a “Harpo,” CARMINE GALLO, CRAIG BAGON, BRADLEY SIRKIN, a/k/a “Brad,” were arrested this morning in Florida, and will be presented in federal court in West Palm Beach later today. Two defendants, FRANCESCO DEPERGOLA, a/k/a “Frank,” and RALPH SANTANIELLO were arrested this morning in Massachusetts, where they face additional federal charges, and will be presented in federal court in Springfield, Massachusetts later today. All other defendants arrested today will be presented in Manhattan federal court before U.S. Magistrate Judges Barbara Moses, Frank Maas, and Gabriel W. Gorenstein this afternoon. Two defendants, NICHOLAS DEVITO, a/k/a “Nicky,” and ANTHONY CIRILLO, surrendered today. One defendant, HAROLD THOMAS, a/k/a “Harry,” is expected to surrender in the next few days. Three defendants, ANTHONY CAMISA, a/k/a “Anthony the Kid,” LAURENCE KEITH ALLEN, a/k/a “Keith Allen,” and WAYNE KREISBERG remain at large. The case is assigned to United States District Judge Richard J. Sullivan.
Manhattan U.S. Attorney Preet Bharara said: “Today’s charges against 46 men, including powerful leaders, members and associates of five different La Cosa Nostra families, demonstrate that the mob remains a scourge on this city and around the country. From loansharking and illegal gambling, to credit card and health care fraud, and even firearms trafficking, today’s mafia is fully diversified in its boundless search for illegal profits. And as alleged, threatening to assault, maim and kill people who get in the way of their criminal schemes remains the go-to play in the mob’s playbook.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “The indictment reads like an old school mafia novel, where extortion, illegal gambling, arson and threats to ‘whack’ someone are carried out along with some modern-day crimes of credit card skimming. But the 40-plus arrests of mob associates, soldiers, capos, and a boss this morning show this isn’t fiction. As alleged, Genovese, Gambino, Luchese, and Bonanno LCN crime families are still carrying out their criminal activities from Mulberry Street here in New York City to areas of Springfield, Massachusetts. The FBI, working with our task force partners from the New York Police Department, are just as steadfast investigating and rooting out organized crime as wise guys are to bringing it our streets. We thank all our partners on this multi-year investigation, including the FBI field offices from New Haven, Newark, Miami and Boston for their assistance with operations.”
NYPD Commissioner William J. Bratton said: “The charges applied today to these 46 individuals deal a significant blow to La Cosa Nostra, which the NYPD is committed to putting out of business. As alleged, in typical mob fashion, the rackets ran from Springfield to South Florida and left no scheme behind. These mobsters seemed to use every scheme known to us, from arson, to shake-downs, violence, health care fraud, and even untaxed cigarettes to keep the racket going. I want to thank my friends Preet Bharara and Diego Rodriguez for their work at the Justice Department and FBI for making today’s case possible and their collaborative efforts during my tenure as Commissioner of the NYPD.”
Westchester County Acting District Attorney James A. McCarty said: “I want to congratulate the prosecutors and investigators whose combined efforts resulted in today’s indictment. Those charged with these crimes believe they can commit them at will, undetected and without consequence. These dedicated members of law enforcement through their actions, have made it clear that those individuals who commit these crimes will be rooted out.”
According to the allegations in the Indictment[1], which was filed in Manhattan federal court, and other publicly filed documents:
The instant charges are the culmination of a multi-year joint investigation conducted by the Federal Bureau of Investigation (“FBI”), FBI-NYPD Organized Crime Task Force, the Westchester County District Attorney’s Office, the New York City Police Department (“NYPD”), and this Office. The evidence includes thousands of hours of consensual recordings obtained by a cooperating witness (“CW-1”) and an FBI Special Agent working in an undercover capacity (“UC-1”). CW-1 worked under PASQUALE PARRELLO, a/k/a “Patsy,” believed to be a Genovese Capo in charge of a crew based out of a restaurant that bears his name in the Bronx, New York (Pasquale’s Rigoletto, hereinafter “Rigoletto”). At one point, with PARRELLO’S approval, CW-1 began working under JOSEPH MERLINO, a/k/a “Joey,” believed to be the Boss of the Philadelphia Crime Family, who resided in southern Florida for part of the year. UC-1 worked under EUGENE O’NOFRIO, a/k/a “Rooster,” a Genovese Acting Capo in charge of crews on Mulberry Street in New York, New York, and Springfield, Massachusetts. As evidenced by the consensual recordings made by CW-1 and UC-1, the myriad criminal schemes pursued by PARRELLO, MERLINO, O’NOFRIO, and their underlings were in many respects intertwined.
The Enterprise charged in the Indictment is composed of leaders, members, and associates of the Genovese, Gambino, Luchese, Bonanno, and Philadelphia Crime Families of LCN, who worked together and coordinated with each other to engage in a multitude of criminal activities throughout the East Coast of the United States, including in Springfield, Massachusetts, the Bronx and Manhattan, Philadelphia, Pennsylvania, and Southern Florida. The members of the Enterprise have been involved in gambling, extortionate collection of loans, other extortion activities, arson, conspiracies to commit assaults in aid of racketeering, trafficking in unstamped and cigarettes, gun trafficking, access device fraud, and health care fraud. The members of the Enterprise include, but are not limited to, PASQUALE PARRELLO, a/k/a “Patsy,” a/k/a “Pat,” JOSEPH MERLINO, a/k/a “Joey,” EUGENE O’NOFRIO, a/k/a “Rooster,” CONRAD IANNIELLO, ISRAEL TORRES, a/k/a “Buddy,” ANTHONY ZINZI, a/k/a “Anthony Boy,” ANTHONY VAZZANO, a/k/a “Tony the Wig,” a/k/a “Muscles,” ALEX CONIGLIARO, FRANK BARBONE, RALPH BALSAMO, PASQUALE MAIORINO, a/k/a “Patty Boy,” JOHN SPIRITO, a/k/a “Johnny Joe,” VINCENT CASABLANCA, a/k/a “Vinny,” MARCO MINUTO, PAUL CASSANO, a/k/a “Paul Cassone,” DANIEL MARINO, JR., a/k/a “Danny,” JOHN LEMBO, a/k/a “Johnny,” MITCHELL FUSCO, a/k/a “Mitch,” REYNOLD ALBERTI, a/k/a “Randy,” VINCENT TERRACCIANO, a/k/a “Big Vinny,” JOSEPH TOMANELLI, a/k/a “Joe,” AGOSTINO CAMACHO, a/k/a “Augie,” NICHOLAS DEVITO, a/k/a “Nicky,” ANTHONY CASSETTA, a/k/a “Tony the Cripple,” NICHOLAS VUOLO, a/k/a “Nicky the Wig,” BRADFORD WEDRA, MICHAEL POLI, a/k/a “Mike Polio,” PASQUALE CAPOLONGO, a/k/a “Patsy,” a/k/a “Pat C.,” a/k/a “Mustache Pat,” a/k/a “Fish,” ANTHONY DEPALMA, a/k/a “Harpo,” a/k/a “Harp,” JOHN TOGNINO, a/k/a “Tugboat,” MARK MAIUZZO, a/k/a “Stymie,” JOSEPH DIMARCO, HAROLD THOMAS, a/k/a “Harry,” RICHARD LACAVA, a/k/a “Richie,” VINCENT THOMAS, a/k/a “Vinny,” ANTHONY CAMISA, a/k/a “Anthony the Kid,” FRANK TRAPANI, a/k/a “Harpo,” ANTHONY CIRILLO, CARMINE GALLO, JOSEPH FALCO, a/k/a “Joe Cub,” FRANCESCO DEPERGOLA, a/k/a “Frank,” RALPH SANTANIELLO, LAURENCE KEITH ALLEN, a/k/a “Keith Allen,” CRAIG BAGON, BRADLEY SIRKIN, a/k/a “Brad,” and WAYNE KREISBERG, the defendants.
To protect and expand the Enterprise’s business and criminal operations, members and associates of the Enterprise assaulted, threatened to assault, and destroyed the property of people who engaged in activity that jeopardized: (i) the power and criminal activities of the Enterprise and the power and criminal activities of their respective LCN Families; (ii) the power of leaders of the Enterprise; and (iii) the flow of criminal proceeds to the leaders of the Enterprise. Members and associates of the Enterprise promoted a climate of fear in the community through threats of economic harm and violence, as well as actual violence, including assault and arson. Members and associates of the Enterprise generated or attempted to generate income for the Enterprise through firearms trafficking, extortion, operating illegal gambling businesses, health care fraud, credit card fraud, selling untaxed cigarettes, making extortionate extensions of credit, and other offenses. Members and associates of the Enterprise at times engaged in criminal conduct or coordinated their criminal activities with leaders, members, and associates of their respective LCN Families. At other times, members and associates of the Enterprise met with leaders, members, and associates of their respective LCN Families to resolve disputes over their criminal activities.
Enterprise members PASQUALE PARRELLO, a/k/a “Patsy,” a/k/a “Pat,” JOSEPH MERLINO, a/k/a “Joey,” and EUGENE O’NOFRIO, a/k/a “Rooster,” the defendants, supervised and controlled other members of the Enterprise engaged in illegal schemes, including those that were the objects of the conspiracy. At various times, members and associates of the Enterprise (including those who are leaders, members, and associates of different LCN families) met, coordinated, and worked together with PARRELLO, MERLINO, and O’NOFRIO, and each other, as well as other members and associates of their respective LCN Families, to engage in criminal activity.
To avoid law enforcement scrutiny, members and associates of the Enterprise conducted meetings surreptitiously, typically using coded language to make arrangements for meetings, and meeting at rest stops along highways and at restaurants.
Certain members and associates of the Enterprise engaged in and conspired to engage in the following violent crimes:
Arson of Vehicle Belonging to Victim-1
In early 2011, an individual (“Victim-1”) operated an illegal gambling establishment on Saw Mill River Road, Yonkers, New York, which was around the corner from a similar establishment (the “Yonkers Club”) run by ANTHONY ZINZI, a/k/a “Anthony Boy,” and other associates of the charged Enterprise. ZINZI and others paid PARRELLO tribute from the profits from the Yonkers Club.
While PARRELLO was on federal supervision stemming from a federal conviction in this Court, the Yonkers Club struggled. Indeed, Victim-1’s club was more successful than the Yonkers Club. ZINZI suggested to other members of the conspiracy that they light Victim-1’s vehicle on fire while it was outside of Victim-1’s club. Then, on or about March 7, 2011, co-defendant MARK MAIUZZO, a/k/a “Stymie,” and others not charged in the above-referenced Indictment located Victim-1’s vehicle, poured gasoline into the vehicle, and lit it on fire.
Conspiracy to Assault and Assault of Victim-2
On or about June 5 and 6, 2011, PARRELLO ordered ZINZI and Ronald “The Beast” Mastrovincenzo (now deceased) to assault a panhandler (“Victim-2”) in the area of Arthur Avenue and Fordham Road, Bronx, New York. ZINZI and Mastrovincenzo enlisted the help of ISRAEL TORRES, a/k/a “Buddy,” and others. Victim-2 had been bothering some female customers in the parking lot nearby Rigoletto, and these women complained to PARRELLO.
ZINZI, TORRES, Mastrovincenzo, and others, on PARRELLO’s orders to “break” Victim-2’s knees, went looking for Victim-2. Eventually, Victim-2 was beaten by Mastrovincenzo and CW-1 (prior to CW-1’s cooperation with the Government). A New York State wiretap revealed that after the beating, Mastrovincenzo told ZINZI, in sum and substance: “[r]emember the old days in the neighborhood when we used to play baseball? . . . A ball game like that was done.” After the beating, TORRES and ZINZI helped Mastrovincenzo and CW-1 in hiding and disposing of evidence.
Conspiracy to Extort Victim-1
PASQUALE CAPOLONGO, a/k/a “Patsy,” a/k/a “Pat C.,” a/k/a “Mustache Pat,” a/k/a “Fish,” a Luchese associate and longtime bookmaker, placed large bets on behalf of several “professional gamblers,” to help conceal their status as professionals. CAPOLONGO also placed bets himself as a gambler. In 2011, CW-1 gave CAPOLONGO access to gambling accounts controlled by individuals known as bookmakers so that CAPOLONGO could place bets on those accounts on behalf of professional gamblers. In turn, CW-1 received approximately 10 percent of the winnings and was also responsible to the bookmaker for the losses. As part of this arrangement, in late 2011, CAPOLONGO obtained betting accounts on Victim-1’s book through CW-1. In December 2011, CAPOLONGO, on behalf of his bettors, won approximately $30,000 from sports wagers CAPOLONGO placed in Victim-1’s book. Victim-1 refused to pay CAPOLONGO.
On or about December 12, 2011, CW-1 met with PARRELLO and explained that CAPOLONGO won approximately $30,000 on sports wagers and that CW-1 was unable to collect because Victim-1 was refusing to pay despite CW-1’s affiliation with PARRELLO. CW-1 asked PARRELLO to intervene on his behalf and sought assistance in collecting the approximately $30,000 debt from Victim-1. PARRELLO agreed to help collect the debt.
Between about December 2011 and March 2014, PARRELLO sent ZINZI, TORRES, VINCENT TERRACCIANO, a/k/a “Big Vinny,” and others to threaten and intimidate Victim-1, and collect the money for the debt. On one such occasion, PARRELLO told them: “You get Buddy [TORRES] and let Buddy go there and choke him [Victim-1], choke him. I want Buddy to choke him, choke him, actually choke the motherfucker…and tell him, ‘Listen to me…next time I’m not gonna stop choking… I’m gonna kill you.’”
Conspiracy to Extort Victim-3
Victim-3 was working as a bookmaker and had accounts with defendant JOHN TOGNINO, a/k/a “Tugboat,” who worked under by ALEX CONIGLIARO. CONIGLIARO suspected that Victim-3 had allowed professional bettors to place bets and, as a result of their winning bets, CONIGLIARO owed approximately $400,000 to the winning bettors.
On or about February 21, 2012, PARRELLO summoned Victim-3 to Rigoletto. There, CONIGLIARO, PARRELLO, and IANNIELLO confronted Victim-3 in a small room in the basement of the restaurant, threatening and intimidating him. Ultimately, CONIGLIARO refused to pay the money owed.
Conspiracy to Extort Victim-4
An unindicted co-conspirator (“CC-1”) operated a gambling club in the Bronx, New York. CC-1 was affiliated with PARRELLO, and, from in or about 2012 to in or about 2013, CC-1 paid PARRELLO approximately $500 per week in tribute in connection with the Bronx gambling club. Another individual, Victim-4, owed tens of thousands of dollars to CC-1. PARRELLO directed CW-1 to find Victim-4 to collect the money. TORRES and co-defendant JOHN SPIRITO, a/k/a “Johnny Joe,” a made member of the Bonanno family, tried to get a picture of Victim-4. The plan was to identify Victim-4, bring Victim-4 to an isolated area, and confront Victim-4 about the debt.
Conspiracy to Extort Victim-5
Victim-5 was a gambler who gave CW-1 access to gambling accounts. As a result, Victim-5 incurred a debt that he did not pay. At the same time, Victim-5 separately owed money to defendants VINCENT CASABLANCA, a/k/a “Vinny,” and PASQUALE MAIORINO, a/k/a “Patty Boy,” members of the Luchese and Bonanno crime families, respectively. PARRELLO worked with others, including members of the Genovese and Bonanno crime families, to ensure that Victim-5 paid the debt. Among other things, PARRELLO stated, in a recorded conversation, that members of PARRELLO’s crew should:
[C]ut his [Victim-5’s] fuckin’ tire. That way he has to change the tire. So then you know you can catch up with him. Give him a flat. Take the air out of the tire, whatever the fuck you got to do. Then you catch up with him because then he’s there, ya know, he’s got to get it fixed, he can’t go nowhere, and then you surround the mother fucker. That’s how yous do it.
PARRELLO further stated, “go ahead, get this motherfucker. Don’t make a mistake. Get your fuckin’ money.” Co-defendant ZINZI provided an icepick to use to slash the tire of Victim-5’s car in order to carry out PARRELLO’s order. Eventually, Victim-5 agreed to make weekly payments on Victim-5’s outstanding debt.
Conspiracy to Assault Victim-6
On or about January 22, 2013, Genovese associate and defendant ANTHONY VAZZANO, a/k/a “Tony the Wig,” a/k/a “Muscles,” was stabbed in the neck by Victim-6 during an altercation at a bar in the Bronx, New York (the “Bar”). VAZZANO was at the Bar with Mastrovincenzo and others when the stabbing occurred. After that, associates of PARRELLO’s crew, including Mastrovincenzo and TORRES, among others, at PARRELLO’s direction, agreed to assault Victim-6 in retaliation for the stabbing. During one such conversation, TORRES stated that they would “whack” and “maim this mother fucker [Victim-6].” PARRELLO instructed Mastrovincenzo to “keep the pipes handy and pipe him, pipe him, over here [gesturing to the knees], not on his head.”
Gun Trafficking
Between about January and March 2012, MITCHELL FUSCO, a/k/a “Mitch,” sold eleven firearms on three separate dates to CW-1. Mastrovincenzo also sold guns to CW-1 and the Enterprise, including six firearms on five separate occasions between 2012 and 2013. During a June 27, 2012 consensually recorded conversation, PARRELLO asked CW-1 if the guns were “clean” and directed CW-1 to “get some nines.”
On or about August 20, 2012, CW-1 met with Mastrovincenzo and ZINZI. During this recorded meeting, Mastrovincenzo asked CW-1 and ZINZI how many guns he should get, and ZINZI told Mastrovincenzo, “at least a hundred.”
Additional Criminal Activity
In addition to the violent crimes described above, members and associates also conspired to, and in some cases did, work together and coordinate with each other to perpetrate a number of other crimes.
a. Loansharking. Members of the East Coast LCN Enterprise, including, but not limited to, PARRELLO, O’NOFRIO, HAROLD THOMAS, VINCENT THOMAS, a/k/a “Vinny,” FRANCESCO DEPERGOLA, a/k/a “Frank,” and RALPH SANTANIELLO, the defendants regularly made and took extortionate loans (“loansharking”) as part of the business of the East Coast LCN Enterprise. In connection with one such loan, HAROLD THOMAS said to AGOSTINO CAMACHO, a/k/a “Augie,” who owed an outstanding debt to HAROLD THOMAS: “If you don’t have my money the first of the month you will never hear another sound I give you [my] word on that. . . . If you miss don’t call me. You’ve had enough breaks. I’ve just given you the biggest break in your life. . . . [I]n about a minute I’m going to go over to the car and take the fucking pistol and I’m going to kill you.”
b. Gambling. Illegal gambling was a significant part of the regular course of business of certain members of the East Coast LCN Enterprise. Dozens of members of the Enterprise engaged in two different types of illegal gambling activities as a way to generate money for the Enterprise: (1) casino-style club gambling and (2) sports gambling.
i. Casino-Style Club Gambling. At various times relevant to the Indictment, PARRELLO, TORRES, ZINZI, VAZZANO, CAMACHO, and MAIUZZO, a/k/a “Stymie,” the defendants operated the above-mentioned Yonkers Club. Several nights a week, the Yonkers Club held poker tournaments, dice tournaments, and took bets on horse races. The owners of the Yonkers Club (the “House”) took a percentage of the gambling proceeds. Additionally, the Yonkers Club generated profits through the installation of illegal poker machines.
ii. Sports Gambling. At various times relevant to the Indictment, multiple members of the East Coast LCN Enterprise operated several gambling operations as a way to enrich the Enterprise. Members of the Enterprise, playing different roles in the sports gambling operations, utilized gambling websites based in the United States and abroad to keep track of wagers and proceeds.
c. Cigarettes. Receiving, causing others to receive, and profiting from the purchase of contraband cigarettes was part of the regular business of certain members of the East Coast LCN Enterprise, including, but not limited to, PARRELLO, O’NOFRIO, TORRES, ZINZI, VAZZANO, SPIRITO, CASABLANCA, REYNOLD ALBERTI, a/k/a “Randy,” TERRACCIANO, JOSEPH TOMANELLI, a/k/a “Joe,” CAMACHO, NICHOLAS DEVITO, a/k/a “Nicky,” NICHOLAS VUOLO, a/k/a “Nicky the Wig,” BRADFORD WEDRA, HAROLD THOMAS, RICHARD LACAVA, a/k/a “Richie,” and VINCENT THOMAS, the defendants. At various times relevant to the Indictment, these defendants obtained, caused others to obtain, and profited from the obtaining of, hundreds of cases of contraband cigarettes, which did not bear a stamp evincing payment of applicable cigarette taxes, with a street value of more than approximately $3 million.
d. Credit Card Fraud Conspiracy. In or around 2012, PARRELLO, TORRES, PASQUALE MAIORINO, a/k/a “Patty Boy,” JOHN LEMBO, a/k/a “Johnny,” and ALBERTI, the defendants, and others known and unknown, conspired to obtain and use a credit card “skimmer” — a small device that captures and retains unwitting credit card owners’ personal identifying information — to steal credit card information and use the information to create new fraudulent credit cards which could, in turn, be used to make unauthorized purchases.
e. Health Care Fraud. At various times relevant to the Indictment, PARRELLO, MERLINO, RALPH BALSAMO, CAMACHO, DEVITO, MICHAEL POLI, a/k/a “Mike Polio,” CARMINE GALLO, BRAD SIRKIN, a/k/a “Brad,” and WAYNE KREISBERG, the defendants, were involved in a scheme targeting providers of health insurance (the “Victim Insurers”), by causing, and causing others to cause, corrupt doctors to issue unnecessary and excessive prescriptions for expensive compound cream (“Prescription Compound Cream”) that were then billed to the Victim Insurers. Had the Victim Insurers known the fraudulent nature of the scheme — that wrongful kickbacks were paid to doctors to write, and to patients to request and receive, unnecessary and excessive prescriptions for the Prescription Compound Cream — the Victim Insurers would not have issued reimbursements for the Prescription Compound Cream.
* * *
A chart containing the ages, residency information, and charges against the defendants, as well as the maximum penalties they face is attached. The maximum penalties 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 work of the Federal Bureau of Investigation in this case. He thanked the NYPD for their assistance. Mr. Bharara also noted that the investigation is continuing.
Assistant U.S. Attorneys Amanda Kramer, Abigail Kurland, Jessica Lonergan, and Jonathan Rebold, along with Special Assistant U.S. Attorney Lauren Abinanti of the Westchester County District Attorney’s Office, are in charge of the prosecution. The case is being handled by the Office’s Violent and Organized Crime Unit.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
UNITED STATES V. PARRELLO, ET AL.
DEFENDANT
AGE
CITY OF RESIDENCE
CHARGES
MAX SENT.
Alberti, Reynold
47
Bronx, NY
18 U.S.C. § 1962(d)
20 years
Allen, Laurence Keith
46
Costa Rica
18 U.S.C. § 1962(d)
20 years
Bagon, Craig
56
Boca Raton, FL
18 U.S.C. § 1962(d)
20 years
Balsamo, Ralph
46
Bronx, NY
18 U.S.C. § 1962(d)
20 years
Barbone, Frank
44
Queens, NY
18 U.S.C. § 1962(d)
20 years
Camacho, Agostino
40
Yonkers, NY
18 U.S.C. § 1962(d)
20 years
Camisa, Anthony
24
Unknown
18 U.S.C. § 1962(d)
20 years
Capolongo, Pasquale
67
West Palm Beach, FL
18 U.S.C. § 1962(d)
20 years
Casablanca, Vincent
49
Bronx, NY
18 U.S.C. § 1962(d)
20 years
Cassano, Paul
37
Nanuet, NY
18 U.S.C. § 1962(d)
20 years
Cassetta, Anthony
48
Belmar, NJ
18 U.S.C. § 1962(d)
20 years
Cirillo, Anthony
51
Englewood Cliffs, NJ
18 U.S.C. § 1962(d)
20 years
Conigliaro, Alex
56
Staten Island, NY
18 U.S.C. § 1962(d)
20 years
Depalma, Anthony
70
Stony Point, NY
18 U.S.C. § 1962(d)
20 years
Depergola, Francesco
60
Springfield, MA
18 U.S.C. § 1962(d)
20 years
Devito, Nicholas
64
Monticello, NY
18 U.S.C. § 1962(d)
20 years
DiMarco, Joseph
46
Bronx, NY
18 U.S.C. § 1962(d)
20 years
Falco, Joseph
72
Bronx, NY
18 U.S.C. § 1962(d)
20 years
Fusco, Mitchell
52
Yonkers, NY
18 U.S.C. § 1962(d)
18 U.S.C. § 922(a)(1)(A) &
18 U.S.C. 2
20 years
5 years
Gallo, Carmine
38
Delray Beach, FL
18 U.S.C. § 1962(d)
20 years
Ianniello, Conrad
72
In Custody
18 U.S.C. § 1962(d)
20 years
Kreisberg, Wayne
39
Parkland, FL
18 U.S.C. § 1962(d)
20 years
LaCava, Richard
67
Pelham, NY
18 U.S.C. § 1962(d)
20 years
Lembo, John
50
In Custody
18 U.S.C. § 1962(d)
20 years
Maiorino, Pasquale
56
In Custody
18 U.S.C. § 1962(d)
20 years
Maiuzzo, Mark
37
Scarsdale, NY
18 U.S.C. § 1962(d), 18 U.S.C. § 844(h) &
18 U.S.C. § 2
20 years
10 years
Marino, Jr., Daniel
49
Short Hills, NJ
18 U.S.C. § 1962(d)
20 years
Merlino, Joseph
54
Boca Raton, FL
18 U.S.C. § 1962(d)
20 years
Minuto, Marco
80
Upper Saddle River, NJ
18 U.S.C. § 1962(d)
20 years
O’Nofrio, Eugene
74
East Haven, CT
18 U.S.C. § 1962(d)
20 years
Parrello, Pasquale
72
Tuckahoe, NY
18 U.S.C. § 1962(d), 18 U.S.C. § 1959(a)(6)
20 years
20 years
Poli, Michael
31
Bronx, NY
18 U.S.C. § 1962(d)
20 years
Santaniello, Ralph
49
Longmeadow, MA
18 U.S.C. § 1962(d)
20 years
Sirkin, Bradley
54
Boca Raton, FL
18 U.S.C. § 1962(d)
20 years
Spirito, John
34
Bronx, NY
18 U.S.C. § 1962(d)
20 years
Terracciano, Vincent
40
Yonkers, NY
18 U.S.C. § 1962(d)
20 years
Thomas, Harold
71
Bronx, NY
18 U.S.C. § 1962(d)
20 years
Thomas, Vinny
69
Bronx, NY
18 U.S.C. § 1962(d)
20 years
Tognino, John
74
Bronx, NY
18 U.S.C. § 1962(d)
20 years
Tomanelli, Joseph
70
Yonkers, NY
18 U.S.C. § 1962(d)
20 years
Torres, Israel
66
Queens, NY
18 U.S.C. § 1962(d), 18 U.S.C. § 1959(a)(6)
20 years
20 years
Trapani, Frank
63
Boca Raton, FL
18 U.S.C. § 1962(d)
20 years
Vazzano, Anthony
51
Brewster, NY
18 U.S.C. § 1962(d)
20 years
Vuolo, Nicholas
71
Bronx, NY
18 U.S.C. § 1962(d)
20 years
Wedra, Bradford
61
Mt. Vernon, NY
18 U.S.C. § 1962(d)
20 years
Zinzi, Anthony
73
Bronx, NY
18 U.S.C. § 1962(d), 18 U.S.C. § 844(h) &
18 U.S.C. § 2
20 years
10 years
[1] The charges contained in the Indictments are merely accusations and the defendants are presumed innocent unless and until proven guilty.
MS-13 Gang Members Pled Guilty to Murder of 19-Year-Old Man on Long IslandRead the Press Release
Earlier today, defendants Milton Contreras and Jose Osmin Rubio pled guilty to the murder of a 19-year-old victim on Long Island. The guilty pleas were entered before United States Magistrate Judge Ramon E. Reyes, Jr., at the federal courthouse in Brooklyn, New York. In the past month, two additional defendants pled guilty and admitted their participation in the murder – defendant Byron Lopez pled guilty before United States District Court Judge Margo Brodie on July 5, 2016, and defendant Oscar Welman Espinoza-Merino pled guilty before Judge Reyes on July 28, 2016. When sentenced, the defendants face up to life imprisonment, as well as restitution and a fine.
The guilty pleas were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, New York, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations, (HSI); Delano A. Reid, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF); and William J. Bratton, Commissioner, New York City Police Department.
In announcing thee guilty pleas, U.S. Attorney Capers expressed his grateful appreciation to the Suffolk County Police Department for its assistance with the investigation.
As detailed in the superseding indictment, the four defendants are members of the Jamaica, Queens and/or Brentwood, Long Island chapters of the violent street gang La Mara Salvatrucha, also known as “MS-13.” On February 25, 2014, Lopez, Espinoza-Merino, Contreras and Rubio directed the victim, fellow gang member Sidney Valverde, to travel to Long Island under the false pretense that they needed him to assist in gang business there. In fact, the co-conspirators planned to kill Valverde because they believed that he was providing information about the gang’s activities to law enforcement. After Valverde arrived in Long Island, the co-conspirators shot him in the back of the head and left his body on Miller Place Beach in Suffolk County where it was discovered by a beachcomber approximately two weeks later.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in this district. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 30 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Alixandra Smith is in charge of the prosecution.
The Defendants:
BYRON LOPEZ
Age: 25
Queens, New YorkOSCAR WELMAN ESPINOZA-MERINO (“Speedy” and “Petey”)
Age: 23
Brentwood, New YorkMILTON CONTRERAS (“Diabolico”)
Age: 20
Brentwood, New YorkJOSE OSMIN RUBIO (“Slow”)
Age: 25
Brentwood, New YorkE.D.N.Y. Docket No. 14-463 (MKB) (RER)
Local Man Indicted on Federal Fraud ChargesRead the Press Release
St. Louis, MO – Eddie Lee Regans was indicted on multiple fraud charges after using clients' personal information to obtain credit to be used for his personal use, racking up charges of approximately $89,000.
On January 22, 2010, Eddie Lee Regans pled guilty to the felony offenses of aggravated identity theft and bank fraud stemming from his use of the names of others in order to open business accounts at various financial institutions throughout the St. Louis metropolitan area. Upon being released from an 84-month term of incarceration, Regans was ordered to submit to the supervision of the United States Probation Office for an additional five years. One of the terms of supervision prevented Regans from creating, managing or operating any business entity without the written approval of the probation office.
The indictment alleges that between August 2015 and July 2016, using the name Eddie Lee, Regans advertised himself as a contractor by distributing flyers to customers at various home improvement stores and other retail establishments in the St. Louis metropolitan area. Regans also established an internet website and Yellow Pages entry in which he claimed to provide home repair and general contractor services through a company called All Rehab & Repair. He also falsely claimed to have been accredited by the Better Business Bureau. In response to complaints by consumers and its own investigation, the Better Business Bureau issued an alert warning consumers from doing business with Regans and his companies. In addition to All Rehab & Repair, Regans used the following names when advertising his business: Reasonable Quality Work; Repair and Rehab; All Rehab Repairs and Affordable Quality Works. Regans obtained prospective customers’ identifying information by promising that his company would finance their home repairs, and believing his representations, several customers provided their names, dates of birth, social security numbers and addresses. As Regans did not operate any company through which he could provide financing, he used the identifying information to open, and attempt to open, credit accounts at the home improvement stores Menards and Lowes. Rather than use the credit accounts for the benefits of the homeowners, Regans utilized the accounts to purchase items for his benefit.
Eddie Regans, St. Louis, MO, was indicted by a federal grand jury on Wednesday, August 3, on two felony counts of fraudulent use of access devices, one felony count of mail fraud and six felony counts of aggravated identity theft.
If convicted, fraudulent use of access devices carries a maximum penalty of 10 years in prison and/or fines up to $250,000; mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000 and aggravated identity theft is a mandatory two years in prison consecutive to any other term of imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Postal Inspection Service. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Kratom Seized in California by United States Marshals ServiceRead the Press Release
LOS ANGELES - The U.S. Attorney’s Office for the Central District of California and the Federal Drug Administration (FDA) announced today that the United States Marshals Service seized more than 100 cases of products labeled as containing the dangerous and unapproved ingredient Kratom.
The products are distributed by Nature Therapeutics LLC, which does business as Kratom Therapy and is located in Grover Beach, California. The seized products are marketed under the brand name Kratom Therapy, and are worth approximately $150,000. The U.S. Attorney’s Office filed a civil forfeiture complaint in the U.S. District Court for the Central District of California, alleging that the seized Kratom products are unapproved new drugs and misbranded drugs under the Federal Food, Drug, and Cosmetic Act.
The FDA is warning consumers not to use any products labeled as containing the botanical substance Kratom. Mitragyna speciosa, commonly known as Kratom, grows naturally in Thailand, Malaysia, Indonesia and Papua New Guinea. Serious concerns exist regarding the toxicity of Kratom in multiple organ systems. Consumption of Kratom can lead to a number of health impacts including, respiratory depression, vomiting, nervousness, weight loss and constipation. Kratom has been indicated to have both narcotic and stimulant-like effects and withdrawal symptoms may include hostility, aggression, excessive tearing, aching of muscles and bones and jerky limb movements.
"Kratom is a drug that has very serious health effects on users,” said United States Attorney Eileen Decker. “We will continue to partner with the FDA to protect the public from the distribution of unapproved and mislabeled substances like Kratom.”
Prior to the complaint being filed, the FDA inspected the Grover Beach facility and also found that Nature Therapeutics’ website and social media sites included claims establishing that the company’s Kratom Therapy products are drugs because they are intended for use in the cure, mitigation, or treatment of various diseases. The FDA has not approved Nature Therapeutics’ products for any use. In addition, the complaint alleged that Nature Therapeutics’ products are also misbranded drugs because their labeling fails to provide adequate directions for use. The California Department of Public Health embargoed the products on behalf of the FDA.
“The FDA will continue to take aggressive enforcement action to safeguard the public from harmful drug products illegally marketed as treatments for which they have not been studied or approved,” said Melinda Plaisier, the FDA’s associate commissioner for regulatory affairs.
In February 2014, the FDA issued an import alert regarding the use of imported dietary supplements and bulk dietary ingredients that are, or contain, Kratom without a physical examination.
Health care professionals and consumers should report any adverse events related to products containing Kratom to the FDA’s MedWatch Adverse Event Reporting program. To file a report, use the MedWatch Online Voluntary Reporting Form. The completed form can be submitted online or via fax to 1-800-FDA-0178.
This case was handled in the United States Attorney’s office by Assistant United States Attorney Katie Schonbachler.
Justice Department Files Suit Against Harris County, Texas, over Polling Place Accessibility for Voters with DisabilitiesRead the Press Release
The Justice Department filed a complaint today in the Southern District of Texas alleging that Harris County, Texas, violated the Americans with Disabilities Act (ADA) by failing to provide accessible polling places for voters with disabilities. Many polling places in Harris County have architectural barriers – such as steep ramps and narrow doors – that make them inaccessible to voters who use wheelchairs or have mobility impairments, or voters who are blind or have vision impairments.
“Like all voters, individuals with disabilities deserve the opportunity to vote at their local polling place – where they can greet neighbors, meet candidates and discuss the issues in their community,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “But many voters with disabilities in Harris County lack equal access to this basic and most fundamental right. Our lawsuit seeks to safeguard the right to vote and fulfill the ADA’s promise of equal opportunity for people with disabilities.”
“Access to voting for all eligible citizens is a priority in this district, partially evidenced by the recently created Civil – Civil Rights Section within our office,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “This division civilly enforces federal civil rights laws including the Americans with Disabilities Act, among many others. We will continue to work with the Department of Justice and investigate and remedy such alleged violations to ensure all U.S. citizens are treated fairly and equally.”
The lawsuit seeks a court order that would require accessibility improvements to polling places in all future elections, training for poll workers to implement and maintain accessibility features at polling places as well as changes to the county’s polling place site selection process to ensure accessibility.
Title II of the ADA prohibits public entities, such as Harris County, from discriminating against people with disabilities in their programs, services and activities. With respect to polling places, public entities are required to select and use polling places that are accessible. To read the department’s findings regarding Harris County’s polling places, see https://www.ada.gov/harris_county_lof.htm. To learn more about ADA requirements for polling place accessibility or about the ADA and other laws protecting the rights of voters with disabilities, visit www.ada.gov/ta-pubs-pg2.htm.
Those interested in finding out more about the ADA can call the department’s toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD), or access the ADA website at www.ada.gov.
Harris County Complaint
Justice Department Completes Review of ASCAP and BMI Consent Decrees, Proposing No Modifications at This TimeRead the Press Release
ASCAP and BMI Licenses Must Continue to Allow Music Users to Publicly Perform All Works Held by Each Organization
The Department of Justice announced today the conclusion of its investigation into proposed modifications to antitrust consent decrees binding the American Society of Composers, Authors and Publishers (ASCAP) and Broadcast Music, Inc. (BMI), determining that no modifications are warranted at this time. The investigation by the department’s Antitrust Division also confirmed that the consent decrees require each organization to offer “full-work” licenses that convey to radio stations, television stations, bars, restaurants, digital music services, and other music users the right to publicly perform, without risk of copyright infringement, all works in ASCAP’s and BMI’s repertories. The Antitrust Division explained the bases for its conclusions in a detailed statement available at https://www.justice.gov/atr/antitrust-consent-decree-review-ascap-and-bmi-2015.
The Antitrust Division opened its investigation in 2014 following requests by ASCAP and BMI that the Antitrust Division join them in proposing modifications to the court-ordered consent decrees. The Antitrust Division met and spoke with dozens of industry stakeholders on numerous occasions during the course of its investigation, and obtained the input of industry participants and members of the public through public comment solicitations in June 2014 and September 2015. The Antitrust Division considered the views of all of these stakeholders before reaching its conclusions.
ASCAP and BMI are performing rights organizations that license public performance rights in compositions held by their hundreds of thousands of songwriter and publisher members. Since 1941, when the United States originally brought civil antitrust lawsuits against ASCAP and BMI, both organizations have been subject to consent decrees, which are designed to prevent anticompetitive effects arising from their collective licensing of music performance rights. Both consent decrees have been amended periodically since their entry. The ASCAP consent decree was last amended in 2001 and the BMI consent decree was last amended in 1994.
Closing Statement
Investment Advisor Admits to Orchestrating $21M Dollar Ponzi Scheme, Using Client Funds to Purchase $2.5 Million Home, Failure to Pay TaxesRead the Press Release
PROVIDENCE, R.I. – Patrick E. Churchville, 47, of Barrington, R.I., owner and president of ClearPath Wealth Management, LLC, formerly located in Providence and Barrington, admitted in federal court in Providence today that he orchestrated a $21 million dollar Ponzi scheme, stole $2.5 million dollars of investors’ funds to purchase a waterfront home, and failed to pay more than $820,000 in personal federal income taxes.
Appearing before U.S. District Court Chief Judge William E. Smith, Churchville pleaded guilty as charged in an Information filed on July 5, 2016, to five counts of wire fraud and one count of tax fraud, announced United States Attorney Peter F. Neronha, Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation.
According to court documents and information presented to the court, an investigation by the FBI, IRS Criminal Investigation and the United States Attorney’s Office determined that in the spring of 2008 through October 2011, Churchville and ClearPath, on behalf of their client investors, invested approximately $18 million dollars in JER Receivables, an entity incorporated in Maryland. In June 2010, Churchville became aware that the investments with JER were no longer producing returns and that ClearPath had been subjected to fraudulent and misleading representations by the principals of JER. Churchville failed to notify his client investors that he had lost millions of dollars of invested funds.
According to court documents, in order to hide the fact that he had lost millions of dollars of client investor funds through his dealings with JER Receivables, and to continue to operate his business and reap his investment fees, Churchville misappropriated approximately $21 million dollars of investment money. To obtain the $21 million dollars, Churchville misused investor money already under his control and obtained new investor funds. He used this money to pay back the JER investors and told them, falsely, that the money was the return on their investments. To induce new investments to carry out the schemes, Churchville lied and told investors that ClearPath’s previous investments with JER Receivables had been successful and produced high rates of return.
Additionally, the investigation determined that in 2011, Churchville created a scheme to obtain $2.5 million dollars, using investors’ funds as collateral without their knowledge, to purchase a personal residence in Barrington. Churchville failed to report the $2.5 million dollars as income on his personal tax returns, resulting in a loss to the IRS of $820,528.
Churchville, who was ordered by the court to home detention with GPS electronic monitoring, is scheduled to be sentenced on October 25, 2016.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
United States Attorney Peter F. Neronha acknowledges and thanks the United States Postal Inspection Service - Boston Division for their assistance in the investigation of this matter.
Patrick Churchville is also a defendant in a U.S. Securities and Exchange Commission civil matter.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
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Indictment: KU Grad Student Made False Claims He Served as Translator for U.S. Army in IraqRead the Press Release
KANSAS CITY, KAN. - A University of Kansas graduate student was indicted Wednesday on charges of making false claims on an application for a visa that he had served as a translator for the U.S. Army in Iraq, Acting U.S. Attorney Tom Beall said today.
Goran Sabah Ghafour, 34, who has been living in Lawrence, Kan., is charged with one count of visa fraud and two counts of aggravated identity theft.
Ghafour initially was charged in a criminal complaint filed July 19 in federal court. The complaint alleged that while he was a graduate teaching assistant in the journalism department at KU he applied for an immigrant visa. He submitted an application under a special provision for former Iraqi nationals who worked for the U.S. military in Iraq. To support his application he submitted letters purporting to be from two brigadier generals verifying his service and supporting his application. Investigators later determined that the letters were fabricated by Ghafour and the two officers had not written or signed the letters.
If convicted, he faces a penalty of up to 10 years in federal prison and a fine up to $250,000 on the visa charge, and not less than two years consecutive to the other count on the identity theft charges. Homeland Security Investigations investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
OTHER GRAND JURY INDICTMENTS
Joshua Grimm, 32, Leavenworth, Kan., is charged with one count of distributing child pornography. The indictment alleges he used instant messaging software to distribute images of child pornography. The crime is alleged to have occurred June 3, 2016, in Leavenworth County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Kim Flannigan is prosecuting.
Imon L. Wright, 34, Kansas City, Kan., is charged with one count of possession with intent to distribute marijuana, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred July 30, 2016, in Wyandotte County, Kan.
If convicted, he faces a penalty of up to 20 years in federal prison and a fine up to $1 million on the marijuana charge, not less than five years and a fine up to $250,000 on the first firearm charge, and up to 10 years and a fine up to $250,000 on the second firearm charge. The Bureau of Alcohol, Tobacco, Firearms and Tobacco investigated. Acting U.S. Attorney Tris Hunt is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment: Bank Employee in Great Bend Embezzled More Than $73,600Read the Press Release
KANSAS CITY, KAN. - A former employee of a bank in Great Bend was indicted Wednesday on a charge of embezzling more than $73,600, Acting U.S. Attorney Tom Beall said.
Kaden Herman, 19, Great Bend, Kan., is charged with one count of embezzlement by a bank employee.
The indictment alleges that in May 2016 Herman was working for Landmark National Bank in Great Bend when he embezzled more than $73,600 from the bank. If convicted, he faces a penalty of up to 30 years in federal prison and a fine up to $1 million. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
OTHER GRAND JURY INDICTMENTS
Richard Earl Talmage, 35, Wichita, Kan., is charged with failing to register as required by the federal Sex Offender Registration and Notification Act. The crime is alleged to have occurred from March 20, 2016, to July 15, 2016, in Sedgwick County, Kan.
If convicted, he faces a penalty of up to 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.