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27 July 2016
Fairview Beach Heroin Dealer Sentenced to PrisonRead the Press Release
RICHMOND, Va. – Leonard Paul Baumgardner, 39, of King George, was sentenced today to 54 months in prison for possession with intent to distribute heroin with three years of supervised release.
Baumgardner pleaded guilty on April 26. According to court documents, on December 9, 2015, December 10, 2015, December 11, 2015, and December 17, 2015, the King George County Sheriff’s Department, utilizing a confidential informant (CI), made controlled purchases of a controlled substance from Baumgardner at his King George residence. On December 18, 2015, DEA agents along with the King George Sheriff’s Office and the Virginia State Police Tri-County Task Force executed a search warrant at the residence. During the search, 24.3 grams of heroin and a firearm, a Cobra .380 Denali Pistol, were recovered. Baumgardner was arrested at that time and has been held without bond during the pendency of the case.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Steve F. Dempsey, Sherriff for King George County, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney S. David Schiller prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16cr24.
East Chicago Man Sentenced to 37 Months in PrisonRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David A. Capp, announced that Antonio Perkins, 26, of East Chicago, Indiana was sentenced in Hammond Federal Court before Judge Rudy Lozano for possession with intent to distribute heroin.
Perkins was sentenced to 37 months’ imprisonment followed by 3 years of supervised release.
According to documents filed in this case, on or about August 18, 2015, Perkins possessed with intent to distribute heroin, and he was held responsible at sentencing for distribution of at least 20 but less than 40 grams of heroin as being involved in his offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was handled by Assistant United States Attorney Dean R. Lanter.
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District Man Pleads Guilty to Shooting Former Girlfriend and Another Man, Wounding Her and Killing HimRead the Press Release
WASHINGTON – Tavon Moore, 27, of Washington, D.C., has pled guilty to charges stemming from a domestic violence incident in which he shot his former girlfriend and another man, wounding her and killing him, U.S. Attorney Channing D. Phillips announced today.
Moore pled guilty on July 26, 2016, in the Superior Court of the District of Columbia, to charges of voluntary manslaughter while armed and assault with a dangerous weapon. The plea agreement, which is contingent upon the Court’s approval, calls for a sentence of 15 years in prison, which would be followed by five years of supervised release. The Honorable Lynn Leibovitz scheduled sentencing for Sept. 23, 2016.
According to the government’s evidence on March 4, 2016, just before 3 p.m., Moore’s ex-girlfriend and a friend, Noel Rezene, 26, drove to Moore’s apartment in the 3300 block of 23rd Street SE. Also in the car was the 2-year-old child of the ex-girlfriend and Moore. Shortly after arriving, Moore’s ex-girlfriend brought their child to the apartment. She then came across Moore outside the apartment building, and the two argued. During the course of the argument, Mr. Rezene displayed a firearm and asked Moore to stop speaking in a disrespectful manner. The ex-girlfriend then went to retrieve the child from the apartment. Moore also proceeded to return to his apartment. Mr. Rezene followed them both into the building.
The ex-girlfriend then retrieved the child and fled with her to her car, which was parked in a nearby parking lot. Mr. Rezene then began shooting through the door of Moore’s apartment and into the apartment that was then occupied by the defendant and his family.
Moore retrieved a firearm from within the apartment and began shooting back through the door at Mr. Rezene, striking him at least once. Mr. Rezene fled towards the car, which by then was occupied by Moore’s ex-girlfriend and the child. As Mr. Rezene neared the car, Moore shot him again, causing Mr. Rezene to stumble and drop his firearm. Mr. Rezene got into the car and Moore’s ex-girlfriend backed the vehicle away, trying to flee. Moore chased after the car, firing multiple shots into it, striking both Mr. Rezene and the ex-girlfriend. At least one shot went through the front windshield on the driver’s side. The child was not struck by any gunfire.
Moore’s ex-girlfriend drove to a nearby hospital, where Mr. Rezene was pronounced dead from the gunshot wounds inflicted by the defendant. She received treatment for multiple gunshot wounds to her right arm and the right side of her torso.
During his plea, Moore acknowledged that he was not acting in self-defense when shooting his ex-girlfriend, and even if his actions against Mr. Rezene were taken in self-defense, by following him outside and continuing to shoot, he used excessive force.
Moore has been convicted of multiple prior domestic violence assaults against his ex-girlfriend, and was on probation for one of those assaults at the time of the shooting. That probation has since been revoked.
In announcing the plea, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Seventh Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker of the Victim/Witness Assistance Unit; Paralegal Specialist Stephanie Siegerist; Criminal Investigator John Marsh, and Intern Anthony Jankowski. He also commended the efforts of Assistant U.S. Attorneys Christopher Bruckmann and Akhi Johnson, who investigated and prosecuted the case.
Danbury Physician and Mental Health Practice Pay $36,000 to Settle False Claims Act AllegationsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTON FRY, M.D. and CPC ASSOCIATES, INC. have entered into a civil settlement agreement with the federal government in which they will pay $36,704 to resolve allegations that they violated the False Claims Act.
DR. FRY, a psychiatrist, founded CPC ASSOCIATES, a mental health practice with offices in Danbury.
The government alleges that DR. FRY and CPC ASSOCIATES submitted improper claims to Medicare for psychiatric services that were provided over the phone to certain Medicare beneficiaries, instead of by meeting with the beneficiaries in the office and treating them in person. Medicare permits certain types of “telehealth” services where the patient is in a rural health professional shortage area and where the provider uses an interactive audio and video communications system that permits real-time communication between the provider and the patient. However, the patients treated over the phone by DR. FRY and CPC ASSOCIATES were not located in rural health professional shortage areas and DR. FRY and CPC ASSOCIATES did not use interactive audio and video communications. They simply treated certain Medicare patients by phone.
To resolve the government’s allegations under the False Claims Act, DR. FRY and CPC ASSOCIATES have agreed to pay $36,704, which covers conduct occurring from January 1, 2009 through June 1, 2015.
A complaint against DR. FRY and CPC ASSOCIATES was filed in the U.S. District Court in Connecticut under the qui tam, or whistleblower, provisions of the False Claims Act. The relators (whistleblowers), Jodi Cohen, a former patient of Dr. Fry, and Medical Bill Consultants, LLC, a billing company, will receive a share of the proceeds of the settlement in the amount of $6,239. The whistleblower provisions of the False Claims Act provide that the whistleblower is entitled to receive a percentage of the proceeds of any judgment or settlement recovered by the government.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and Auditor Kevin Saunders.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Columbus Businessman Sentenced to 142 Months for Wire Fraud, Money LaunderingRead the Press Release
COLUMBUS, Ohio – David H. DeMathews, 63, of Columbus, was sentenced in U.S. District Court to 142 months in prison and ordered to pay approximately $730,000 in restitution for one count of wire fraud and one count of money laundering.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the sentence handed down today by U.S. District Judge Michael H. Watson.
DeMathews used his positions as Director of National Accounts and Executive Vice President of American Escrow and Title Services, Inc. (AETS), and President of DEMCO Advisory Corporation (DEMCO) to execute a financial fraud scheme.
DeMathews told some victims he would invest their money in the construction of multi-million dollar buildings that were supposed to generate repayment to the investors. He promised some victims he would invest their money in Starbucks franchise opportunities in Central America, hospital projects in Panama and Nicaragua, and a water treatment plant in Florida.
He also used some victims’ investments to make partial repayments to other victims, in order to convince those victims that AETS and DEMCO were generating income, and to encourage those victims to make additional investments in AETS and DEMCO.
From 2009 through April 2014, DeMathews had no legitimate income of any kind. He received approximately $911,000 for the purpose of executing his scheme, and misappropriated those funds for primarily his personal use. Those personal expenditures included, but were not limited to: mortgage payments on two houses, numerous lavish big game hunting trips and other vacations to Europe and South Africa, expensive retail purchases, and effectively all of the defendant’s daily living expenses.
DeMathews also used the investors’ money to satisfy monthly restitution payment obligations ordered in the amount of approximately $3.7 million related to a federal criminal case in the Central District of California, in which he was convicted of multiple counts of loan and credit application fraud in April 2000.
“Mr. DeMathews is responsible not only for wiping away the financial resources of many families—the effects of which will be felt for years to come—but also for causing profound levels of stress and emotional injury,” Acting U.S. Attorney Glassman said. “He preyed on vulnerable victims. For example, he induced a mentally incompetent woman to invest her engagement ring. Another victim was forced to surrender individual life insurance policies, before being diagnosed with cancer and learning that he did not have long to live and would be leaving his family with no means of financial stability.”
To carry out his most recent scheme, DeMathews fraudulently: created at least two shell companies; had business cards made; provided paperwork from foreign companies and governments that were written in different languages; continuously sent emails to the victims convincing them that he was traveling and working very hard to get the alleged projects secured; had others open bank accounts for him so that he never had any identifiable assets in his name; laundered victim money to pay his $200 monthly restitution obligation for his 2000 fraud conviction in the Central District of California; requested that Google suppress search results related to his prior federal convictions on similar charges so that his victims could not easily discover his past charges; advised victims that he was the President of DEMCO and doctored a letterhead to perpetrate his fraud and provided complex blueprints and similar documents to victims to convince them that he was working on specific projects.
He was indicted by a federal grand jury in March 2015 and pleaded guilty in March 2016.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
Cleveland woman indicted for bank robberies in Highland Heights, Euclid and BedfordRead the Press Release
A Cleveland woman was indicted for her role in bank robberies in Highland Heights, Bedford and Euclid, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Te’aira Perry, 26, was indicted on three counts of bank robbery.
The indictment alleges that Perry and others aided and abetted one another in robbing a U.S. Bank in Highland Heights on June 26, 2013, of approximately $13,400, and attempting to rob a Charter One Bank in Bedford on August 21, 2013. It further alleges that Perry and four men – Germain D. Davis, Jr., Julian Anderson, Shawn Caldwell, and Dejuan Brown – aided and abetted one another in robbing a PNC Bank in Euclid, on January 24, 2014, of approximately $39,900.
Davis, Anderson, Caldwell, and Brown all pleaded guilty to this robbery in 2014.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses, and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation, the Highland Heights Police Department, the Bedford Police Department and the Euclid Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland woman indicted for Social Security fraudRead the Press Release
A federal grand jury returned a one-count indictment charging Jacqueline Davis, 50, of Cleveland, with theft of government funds, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that Davis stole $53,650.90 in Social Security benefits by intentionally concealing and failing to report to the Social Security Administration her return to work and continued employment. She did so knowing that it would affect her entitlement to Social Security disability benefits.
Special Assistant United States Attorney Lisa J. Sanniti is prosecuting the case following an investigation by the SSA Office of Inspector General.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cleveland sex offender faces child pornography chargesRead the Press Release
A grand jury returned a two-count indictment charging Adam Libbey-Tipton, 29, of Cleveland, with one count of accessing with intent to view visual depictions of minors engaged in sexually explicit conduct; and one count of possessing visual depictions of minors engaged in sexually explicit conduct, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Libbey-Tipton is a registered sex offender, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian McDonough following an investigation by the Cleveland Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Centreville Man Sentenced for Sex Trafficking of A MinorRead the Press Release
Demerous E. Foxworth, 25, of Centreville, Illinois, was sentenced on Friday, July 22, 2016, in the U.S. District Court to 135 months in prison for Commercial Sex Trafficking of a Minor and Use of a Facility of Interstate Commerce to Promote an Unlawful Activity, United States Attorney Donald S. Boyce announced today. Foxworth was also ordered to pay a $500 fine and $200 special assessment. When Foxworth is released from prison, he will be on federal supervised release for an additional 10 years.
Documents filed in the District Court establish that in the summer of 2014, Foxworth contacted a 16-year-old female and established a sexual relationship with her. Shortly after meeting the minor, Foxworth offered to help her make money by engaging in illegal prostitution. Foxworth thereafter repeatedly posted advertisements on the internet offering for the minor victim to engage in prostitution, for which Foxworth received a portion of the money. In addition, starting in October 2012 and continuing until October 2015, Foxworth recruited five adult women to engage in illegal prostitution. He facilitated the prostitution of the five women by posting advertisements on the internet and arranging transportation and/or accommodations for the calls received in answer to the advertisements. Foxworth received a portion of the money made by each woman for engaging in the acts of prostitution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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."
This investigation was conducted by the St. Louis County Police Department and the Federal Bureau of Investigation, St. Louis and Springfield Offices. The case was prosecuted by Assistant United States Attorney Ali Summers.
Cement Manufacturer Cemex to Reduce Harmful Air Pollution from Five Plants under Settlement with EPA and Justice DepartmentRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Cemex Inc., under which the company will invest approximately $10 million to cut emissions of harmful air pollution at five of its cement manufacturing plants in Alabama, Kentucky, Tennessee and Texas to resolve alleged violations of the Clean Air Act. Under the consent decree lodged in the U.S. District Court for the Eastern District of Tennessee, Cemex will also pay a $1.69 million civil penalty, conduct energy audits at the five plants, and spend $150,000 on energy efficiency projects to mitigate the effects of past excess emissions of nitrogen oxides (NOx)from its facilities.
“The cement sector is a significant source of air pollution posing real health risks to the communities where they reside, including vulnerable communities across the U.S. who deserve better air quality than they have gotten over the years,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This agreement will require Cemex to pay a penalty and install important pollution controls to achieve reductions in harmful air emissions, thereby making Cemex a better neighbor to local residents.”
“This settlement requires Cemex to use state of the art technology to reduce harmful air pollution, improving public health in vulnerable communities across the South and Southeast,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “EPA is committed to tackling clean air violations at the largest sources, cutting the pollutants that cause respiratory illnesses like asthma.”
The five Cemex facilities produce Portland cement, a key ingredient in concrete, mortar, and stucco are located in Demopolis, Alabama, Louisville, Kentucky, Knoxville, Tennessee, and New Braunfels and Odessa, Texas. The Knox County, Tennessee, and Louisville air pollution control authorities participated in this settlement.
Cemex is required to install pollution control technology that will reduce emissions of NOx and establish strict limits for sulfur dioxide (SO2) emissions, which will improve air quality in local communities. Cemex will install and continuously operate a selective non-catalytic reduction system for controlling NOx at the five plants and meet emission limits that are consistent with the current best available control technology for NOx. EPA estimates this will result in NOx emissions reductions of over 4,000 tons per year. Each facility will also be subject to strict SO2 emission limits.
NOx and SO2, two key pollutants emitted from cement plants, have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. The pollutants are converted in the air into fine particles of particulate matter that can cause severe respiratory and cardiovascular impacts and premature death. Reducing these harmful air pollutants will benefit the communities located near the Cemex plants, particularly communities disproportionately impacted by environmental risks and vulnerable populations, including children.
This settlement is part of EPA’s National Enforcement Initiative to control harmful emissions from large sources of pollution, which includes cement manufacturing plants, under the Clean Air Act’s Prevention of Significant Deterioration requirements. The total combined SO2 and NOx emission reductions secured from cement plant settlements under this initiative will exceed 75,000 tons each year once all the required pollution controls have been installed and implemented.
The settlement is subject to a 30-day public comment period and final court approval. Information about submitting a public comment is available at: www.justice.gov/enrd/consent-decrees.
Birmingham Man Sentenced to Five Years in Prison for Selling HeroinRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to more than five years in prison for possessing with intent to distribute heroin, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
U.S. District Judge Karon O. Bowdre sentenced KATIAH MATEEN “BONE” GRIFFIN, 35, to five years and four months in prison on one count of possessing with intent to distribute 100 grams, or about 3.5 ounces, of heroin. Griffin pleaded guilty to the charge in November. He has remained in custody.
According to Griffin’s plea agreement with the government, he sold the heroin to a confidential informant working with the West Alabama Narcotics Task Force for $12,500 in October 2013.
DEA and the West Alabama Narcotics Task Force investigated the case, which Assistant U.S. Attorney L. James Weil Jr. prosecuted.
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Bedford man indicted on federal drug and firearms chargesRead the Press Release
A Bedford man was indicted on drug and firearms charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Norman L. Hunter, 43, is accused of distributing more than 500 grams of cocaine as well as illegally possessing five firearms, despite a previous felony conviction.
Matthew A. Martin, 31, of San Diego, is also named in the three-count indictment, accused of distributing more than 500 grams of cocaine.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses, and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the Drug Enforcement Administration.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Bank Embezzler ArrestedRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Shanice Mano, 23, of Anchorage, Alaska, was arrested on July 25, 2016, and was arraigned yesterday in federal court on a criminal complaint charging her with bank embezzlement. The complaint alleges that she had embezzled over $100,000 from her former employer, Credit Union 1.
According to the complaint, Mano was a teller at Credit Union 1 when she accessed customer accounts without authority and transferred money to accounts that she had control over and from which she was able to make withdrawals.
The law provides for a maximum sentence of 30 years in prison and a fine of $1 million or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The FBI conducted the investigation leading to the arrest.
A complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilty beyond a reasonable doubt.
Albuquerque Felon Sentenced to Prison for Federal Firearms ConvictionRead the Press Release
ALBUQUERQUE – Marcos Barela, 28, of Albuquerque, N.M., was sentenced today in federal court to 70 months in prison followed by three years of supervised release for violating the federal firearms laws.
Barela was charged by federal indictment on Oct. 7, 2015, with unlawfully possessing a firearm and ammunition on May 4, 2015, in Bernalillo County, N.M. According to the indictment, Barela was prohibited from possessing firearms or ammunition because of his prior criminal history, which includes felony convictions for embezzlement, robbery, conspiracy to commit robbery, possession of a controlled substance, battery on a peace officer, arson and criminal damage to property.
Barela was arrested on a warrant for a state probation violation on May 4, 2015. Barela subsequently was arrested on the federal indictment Jan. 21, 2016, after he was transferred to federal custody from state custody.
On April 1, 2016, Barela pled guilty to the indictment and admitted that on May 4, 2015, he possessed a loaded firearm, which was in his pants’ pocket when he was arrested.
This case was investigated by the Albuquerque offices of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the DEA with assistance from the 2nd Judicial District Attorney’s Office and the Probation and Parole Division of the New Mexico Corrections Department.
Assistant U.S. Attorney David M. Walsh prosecuted the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
44 Individuals Indicted for Drug Trafficking in the Municipality of MayagüezRead the Press Release
SAN JUAN, Puerto Rico – U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced three indictments and the arrest of 44 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances, and possession of firearms. The agencies in charge of the investigation are Homeland Security Investigations (HSI) and the Police of Puerto Rico (POPR).
One of the indictments, returned on July 19, 2016, by a federal grand jury and unsealed in federal court today, charges 40 individuals with conspiracy to knowingly and intentionally possess with intent to distribute cocaine, cocaine base (crack), marijuana, Percocet and Xanax, all within 1,000 feet of the real property comprising the Columbus Landing Public Housing Project, all for significant financial gain and profit.
The indictment alleges that beginning in 2010, the organization established drug distribution points among several housing projects in the Municipality of Mayagüez. The 40 co-conspirators acted in different roles in order to further the goals of their organization, to wit: supplier, drug point owners, runners, sellers, and facilitators.
Some of the defendants would routinely possess, carry, brandish and use firearms to protect themselves and the drug trafficking organization from rival gangs. Twenty-two of the defendants are facing one count of using and carrying firearms during and in relation to a drug trafficking crime.
Another four count indictment, returned on July 19, 2016, by a federal grand jury and unsealed in federal court today, charges 3 individuals with conspiracy to knowingly and intentionally possess with intent to distribute cocaine, cocaine base (crack), and marihuana, all within 1,000 feet of the real property comprising the Columbus Landing Public Housing Projects, all for significant financial gain and profit.
The third indictment returned on the same date charges one individual with possession of a firearm and ammunition after having been previously convicted of a crime punishable by imprisonment for a term exceeding one year.
“Federal and local law enforcement agencies remain committed to work tirelessly to target and eliminate the most significant threats to our communities,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
Assistant U.S. Attorney Dina Ávila-Jiménez is in charge of the prosecution of the case. If convicted, the defendants charged with drug trafficking face a minimum sentence of 10 years up to life in prison. If convicted, the defendant charged alone with possessing a firearm after being convicted of a felony crime faces a maximum term in prison of 10 years. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
26 July 2016
Wilmington Man Charged with Threatening Arson to Boston’s Largest MosqueRead the Press Release
BOSTON – A Wilmington man was charged and arrested today in connection with making threats over Facebook to burn a local mosque and harm Muslims and with unlawfully possessing ammunition.
Patrick Keogan, 44, of Wilmington, was charged in a criminal complaint with making a threat over Facebook to injure or intimidate another individual or to unlawfully damage or destroy a building by means of fire and of being a convicted felon in possession of ammunition. Keogan is scheduled to appear before U.S. District Court Chief Magistrate Judge Jennifer C. Boal this afternoon.
According to charging documents, on or about Nov. 14, 2015, Keogan threatened the Islamic Society of Boston Cultural Center (ISBCC), a Roxbury-based cultural center that offers a mosque and educational, spiritual, and social services to the New England Muslim community. Keogan posted on the ISBCC’s Facebook page an image depicting a mosque in flames with lettering superimposed that stated “Burn your local mosque,” along with the statement “Hello scumbags,” next to a smiley face emoji. Keogan allegedly posted the same threatening image on the Facebook page of the Islamic Society of Northeastern University (ISNU).Through a warrant authorizing a search of Keogan’s Facebook account, law enforcement investigators found posts that approved burning mosques as early as 2013. For example, in 2013 Keogan shared a post with the following summary: “On July 4th, Joplin, Missouri's Islamic Center — the city's only mosque — suffered roof damage after an unidentified man set it on fire by tossing a burning object onto the building.” Keogan wrote in response: “Somewhere out there is an unknown hero. The people’s champion. A true God amongst mortal men. May your days be many & troubles be few my good man.” On or about Nov. 17, 2015, Keogan posted a status update saying, “Canada enters the Mosque Burning Winter Olympics of 2016 early! Who will take the Gold? Who will take the Silver? and WHO will take the Bronze??? We'll have to wait til the snow clears to find out folks but lets keep our fingers crossed for some fierce competition! And remember- you (yes you) are a qualified competitor of your own nation- so get out there and help your Country be number one in this winter’s Mosque Burning Olympics!”
According to court documents, Keogan’s Facebook account also showed that, despite his statutory prohibition as a convicted felon from possessing firearms and ammunition, Keogan continued to buy, sell, trade, build, modify, possess and shoot firearms and ammunition. After obtaining a warrant to place a GPS tracking device on Keogan’s car, federal agents tracked Keogan to a gun store in New Hampshire on or about May 1, 2016. Keogan allegedly purchased two boxes of 8mm rifle ammunition and two bags of loose 8mm rifle ammunition, and then drove the ammunition directly back to his residence in Wilmington.
The charging statutes each provide a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge Federal Bureau of Investigation, Boston Field Division; Lawrence J. Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Wilmington Police Chief Michael Begonis, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Scott Garland of Ortiz’s Civil Rights Enforcement Team.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Washington CPA Pleads Guilty to Filing False Tax ReturnsRead the Press Release
A Spokane, Washington, certified public accountant pleaded guilty today to three counts of making and subscribing false corporate income tax returns announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael C. Ormsby for the Eastern District of Washington.
Roger Stadtmueller, 53, admitted owning Zazz Inc., a corporation under which he provided accounting and consulting services, including income tax preparation, bookkeeping and financial auditing for clients. Stadtmueller admitted that he made and subscribed false and fraudulent corporate tax returns for Zazz for the calendar years 2006, 2007 and 2008, by understating Zazz’s gross receipts by approximately $1.8 million.
Sentencing is scheduled for Oct. 11 at 2:30 p.m. Stadtmueller faces a statutory maximum sentence of three years in prison and financial penalties for each of the three counts of filing false corporate tax returns. Stadtmueller also agreed to pay restitution to the Internal Revenue Service (IRS) in the amount of $400,000.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Ormsby commended special agents of the IRS-Criminal Investigation, who investigated the case, and Senior Litigation Counsel Corey J. Smith and Trial Attorneys Lisa L. Bellamy and Eric C. Schmale of the Tax Division, who are prosecuting the case.
Valencia County Man Sentenced to Five Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Joseph Baldonado, 30, of Los Lunas, N.M., was sentenced today in federal court in Albuquerque, N.M., to 60 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Baldonado was arrested in Jan. 2016, on a criminal complaint charging him with distribution of methamphetamine in Valencia County, N.M. According to the complaint, Baldonado sold quantities of methamphetamine to an undercover agent on the following dates: 58.2 ounces on Jan. 6, 2016, 58.8 ounces on Jan. 12, 2016, and 57.2 ounces on Jan. 22, 2016.
Baldonado was subsequently indicted on Feb. 9, 2016, and charged with three counts of distribution of methamphetamine on Jan. 6, 12, and 22, 2016, in Valencia County.
On April 15, 2016, Baldonado pled guilty to Count 3 of the indictment charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Baldonado admitted possessing more than 50 grams of methamphetamine on Jan. 22, 2016, and selling it to another person for $1,600.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region I Narcotics Task Force and was prosecuted by Assistant U.S. Attorney Eva M. Fontanez.
The HIDTA Region I Narcotics Task Force is comprised of the Albuquerque Police Department, Albuquerque office of the DEA, Pojoaque Tribal Police Department, Rio Rancho Police Department, Sandoval County Sheriff’s Office and the Valencia County Sheriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
U.S. Attorney Zachary T. Fardon and Other Law Enforcement Officials to Hold News Conference Today at 2:00 P.M.Read the Press Release
U.S. Attorney Zachary T. Fardon, FBI Chicago Special Agent in Charge Michael J. Anderson, Chicago Police Superintendent Eddie T. Johnson and other law enforcement officials will hold a news conference today to announce significant new indictments.
The news conference will begin at 2:00 p.m. in the 9th Floor Press Room of the U.S. Attorney’s Office, Dirksen Federal Building, 219 S. Dearborn, Chicago IL 60604. Media credentials will be required to access the Press Room, which will be open beginning at 1:15 p.m.
WHO: Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent in Charge of the Chicago Office of the FBI; Eddie T. Johnson, Superintendent of the Chicago Police Department; and several other law enforcement officials from the Chicago area and Indiana.
WHAT: The officials will announce significant new indictments against numerous alleged gang members.
WHERE: U.S. Attorney’s Office, 9th Floor Press Room in the Dirksen Federal Building, 219 S. Dearborn, Chicago IL 60604
WHEN: Tuesday, July 26, 2016, 2:00 p.m.
Two Pittsburgh Men Charged in Heroin Distribution SchemeRead the Press Release
PITTSBURGH - Two Pittsburgh residents have been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Darnell Payne, 30, and Daniel Jones, 29, as defendants.
According to the indictment, from in and around January 2016, and continuing thereafter to in and around July 2016, Payne and Jones conspired with one another and others both known and unknown to distribute and possess with intent to distribute one kilogram or more of heroin, a Schedule I controlled substance.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Katherine A. King is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) comprised of members drawn from the Drug Enforcement Administration, the Allegheny County Sheriff’s Department, the Baldwin Borough Police Department, the Duquesne Police Department, Homeland Security Investigations, the Munhall Police Department, the Pennsylvania State Police, the City of Pittsburgh Bureau of Police, the Scott Township Police Department, and the West Homestead Police Department, along with assistance from the Borough of McKees Rocks Police Department, the Borough of Ambridge Police Department, the Borough of Sewickley Police Department, the Crescent Township Police Department, the City of Aliquippa Police Department, the Borough of New Brighton Police Department, and the Pennsylvania Attorney General’s Office, conducted the investigation leading to the indictment in this case. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Men Dubbed the ‘Cowboy Gun Bandits’ Found Guilty of Armed Robbery Spree Involving Large-Caliber HandgunRead the Press Release
LOS ANGELES – Two men who earned the moniker the “Cowboy Gun Bandits” for brandishing a large-caliber revolver during a series of robberies – starting with gas stations and culminating in a bank robbery that netted them over $55,000 – were convicted today in federal court.
Dominic Dorsey, 48, of Hollywood, and Reginald Bailey, 71, of the Jefferson Park district of Los Angeles, were found guilty of 11 felony counts – conspiracy to interfere with commerce in violation of the Hobbs Act, five specific Hobbs Act robberies and five counts of using a firearm during the robberies.
The jury that heard evidence during a trial that lasted just over two weeks found Dorsey and Bailey guilty of five robberies:
• a September 24, 2013, robbery at a Shell gas station in Woodland Hills;
• an October 6, 2013, robbery at an ARCO gas station in Newhall;
• an October 18, 2013, robbery at a Chevron gas station in Woodland Hills;
• an October 25, 2013, robbery at an ARCO gas station in Encino; and
• a November 5, 2013, robbery of a Citibank branch in Glendale that netted more than $55,000.
In addition to these robberies, the jury heard evidence in relation to the conspiracy count that Dorsey and Bailey also committed robberies at three other gas stations in October 2013.
Many of the robberies were captured by video surveillance, which allowed investigators to determine that one of the robbers was missing part of his ring finger on his left hand. The video surveillance evidence helped lead authorities to Bailey, whose left hand is missing a portion of his ring finger.
“These defendants participated in a series of brazen robberies involving guns aimed at terrorized employees,” said United States Attorney Eileen M. Decker. “While the robbers were extremely careful in concealing their identities during the robberies, the excellent work of law enforcement authorities led to their identification and convictions at trial.”
“Task Force members who partnered to work this case and others are able to identify and remove violent armed robbers from the streets of Los Angeles by utilizing resources at the state and federal level,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Field Office. “A collaborative effort by detectives, agents and prosecutors paid off as evidenced by today’s verdicts, and as scores of victims robbed at gunpoint during the defendants’ robbery spree receive justice.”
“I am always impressed by the collective talents of our Robbery Homicide detectives who worked tirelessly on this case along with our law enforcement partners to identify and locate these violent offenders who preyed upon our communities” LAPD Chief Charlie Beck said. “This is truly another example of solid investigative police work,” Beck concluded.
Each of the Hobbs Act violations – a total of six – carries a statutory maximum penalty of 20 years in federal prison. The gun violations carry potential life sentences, but also would bring mandatory minimum sentences of seven years for the first count and 25 years for each of the four additional counts, which means Dorsey and Bailey are expected to receive sentences of at least 107 years in federal prison.
United States District Judge Christina A. Snyder, who presided over the trial, is scheduled to sentence the two defendants on November 14.
The investigation into the string of robberies by the “Cowboy Gun Bandits” was conducted by Los Angeles Metropolitan Task Force on Violent Crime, which is made up of investigators with the Federal Bureau of Investigation, the Los Angeles Police Department and the Los Angeles Sheriff’s Department. The Glendale Police Department provided substantial assistance during the investigation.
This case was prosecuted by Assistant United States Attorney Jeffrey M. Chemerinsky of the Violent and Organized Crime Section and Assistant United States Attorney Joseph D. Axelrad of the Organized Crime and Drug Enforcement Task Force.
Tulsa Man Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JACOB HORTON MASTERS JR., age 55, of , Oklahoma, pled guilty to DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), 841(b)(1)(A).
The Indictment alleged that beginning in or about the end of 2013, the exact date being unknown to the Grand Jury, and continuing until on or about January 27, 2016, within the Eastern District of Oklahoma and elsewhere, the defendant did knowingly and intentionally conspire, confederate and agree with others to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
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. MASTERS was a methamphetamine distributor and maintained money for the organization.
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 is not less than 10 years imprisonment, a fine up to $10,000,000.00 or both.
Assistant United States Attorney Shannon Henson represented the United States.
Three Local Restaurants Resolve Access Complaints Under the American with Disabilities ActRead the Press Release
CEDAR RAPIDS, IA – The U.S. Attorney’s Office recently settled access complaints against three local restaurants under the Americans with Disabilities Act (“ADA”). The Hacienda Las Glorias, Lone Star Steakhouse, and The Irish Democrat, all covered under Title III of the ADA, agreed to comply with the Act’s provisions ensuring equal access within the restaurants.
United States Attorney for the Northern District of Iowa Kevin W. Techau stated, “This office is committed to the full and fair enforcement of the Americans with Disabilities Act. These agreements demonstrate the vital importance of the Act so that people with disabilities can enjoy access to restaurants and businesses.”
The Hacienda Las Glorias, Cedar Rapids, Iowa, agreed to address several access issues including agreeing to install a first floor bathroom in its restaurant by August 15, 2016, which previously was only provided in its basement. Hacienda Las Glorias will also ensure accessibility to its parking, restaurant entrances, waiting area, bar area, and dining areas by June 15, 2017.
Delaine Petersen, a longtime ADA advocate and former Executive Director at The Arc of East Central Iowa, stated she “Appreciates the perseverance that the Justice Department exerted to gain ADA compliance at Hacienda Las Glorias. The result of the department’s efforts will allow all citizens with disabilities or without the right to fully access and patronize this establishment. The settlement is a strong statement that all citizens can and should be able to fully utilize the community.”
Lone Star Steakhouse & Saloon, Cedar Rapids, Iowa, agreed to correct certain features of the restaurant that prevented persons with disabilities from accessing portions of the restaurant. Lone Star agreed to bring ramps, dining areas, and bathrooms into compliance with the Act. Lone Star will submit reports to the U.S. Attorney’s Office for three years or until all barriers to access are resolved.
The Irish Democrat Pub & Grill, Cedar Rapids, Iowa, agreed to remove barriers that prevented persons with disabilities from accessing portions of the restaurant. The Irish Democrat agreed to make the front entrance, dining areas (including free standing tables, bars and booths) and its toilet rooms accessible to persons with disabilities. The Irish Democrat will submit reports to the U.S. Attorney’s Office for three years or until all barriers to access are resolved.
David Thielen, Executive Director of The ARC of East Central Iowa offered, “The mission at The Arc is to empower people with intellectual and related disabilities to engage in lifelong opportunities to live, learn, work and play with dignity, freedom, and full inclusion in their communities. This settlement will now afford the freedom of so many people with disabilities of full inclusion in our community, especially at these dining facilities. We are pleased at the outcome of this decision and pleased to see these restaurants will remedy the issues.”
The settlement documents detailing the terms of the agreements are attached to this release.
These matters were handled by Assistant United States Attorney Stephanie Wright and the Disabilities Rights Section of the United States Department of Justice.
The public may access the U.S. Attorney’s website to file an ADA complaint at www.justice.gov/usao/ian. After completing the form, it may be sent by mail, fax, or e mail. You may learn more about the Americans with Disabilities Act by going to the Department of Justice web page at www.ada.gov.
Today is the 26th anniversary of the signing of the ADA.
Follow us on Twitter @USAO_NDIA.
Three Brooklyn Men Charged in Manhattan Federal Court for Two Bank BurglariesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriquez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced that MICHAEL MAZZARA, CHARLES KERRIGAN, and ANTHONY MASCUZZIO were arrested this morning for their roles in bank burglaries in Brooklyn and Queens, New York, earlier this year. MAZZARA, KERRIGAN, and MASCUZZIO will be presented later today in Manhattan federal court before United States Magistrate Judge Ronald L. Ellis.
Manhattan U.S. Attorney Preet Bharara said: “In the dark of the night, these defendants allegedly blowtorched their way through the roofs and into the vaults of two different banks, stealing over $5 million in cash and customer valuables kept in safe deposit boxes. Through their brazen bank heists, the defendants allegedly stole not just people’s money, but their memories too, leaving in their destructive wake gaping holes and looted vaults. But these bank jobs also left enough of a trace for the FBI and NYPD, whose good old-fashioned police work led to the charges and arrests announced today.”
FBI Assistant Director-in-Charge Diego Rodriquez said: “The Mazzara bank robbery crew did more than just allegedly steal money from banks, they took irreplaceable mementos from people who believed those items were far too valuable to be kept at home. These men were allegedly after the money, but they also took heirlooms, jewelry, documents and family photos and tossed them aside. Those items held little value to the men accused in this case, but we hope the community finds some solace in the fact that they will no longer be able to commit these thefts.”
NYPD Commissioner William J. Bratton said: “These heists resembled scenes from the movie Heat – the work of a crew that was well organized, meticulous, and elusive to law enforcement. This investigation was conducted with painstaking persistence. Left with few clues after the heists, our crime scene teams hunted for every shred of evidence. From the plywood purchased at a nearby Home Depot, to the torches from a Brooklyn welder used to muscle into the vault, the picture slowly came into focus, resulting in today’s arrests and charges.”
According to the Complaint[1]:
Between April 2016 and the present, MAZZARA, KERRIGAN, and MASCUZZIO were part of a crew that burglarized banks in Brooklyn and Queens, New York, by cutting into the banks’ vaults, and stealing a total of approximately $5 million in cash, jewelry, diamonds, stock certificates, and other valuables. Specifically, from about April 8 to April 10, 2016, MAZZARA, KERRIGAN, and others burglarized an HSBC Bank branch in Brooklyn, and from about May 19 to May 22, 2016, MAZZARA, KERRIGAN, MASCUZZIO, and others burglarized a Maspeth Federal Savings Bank branch in Queens. On both occasions, the burglars used acetylene blowtorches to cut into the top of the banks’ vaults from the roof of the building. At the Maspeth Federal Savings Bank branch, they shielded their activities from view by constructing a plywood shed on the roof of the bank. The burglars then entered the vaults from above, broke open safe deposit boxes, and took both cash belonging to the bank and customers’ valuables from the safe deposit boxes. The crew obtained approximately $330,000 in cash and an unknown amount in valuables from the HSBC branch, and approximately $296,000 in cash and $4.3 million in valuables from the Maspeth bank. Surveillance footage captured some of MAZZARA, KERRIGAN, and MASCUZZIO’s activities as they prepared for and executed the burglaries. Financial records and video surveillance also showed MAZZARA and MASCUZZIO purchasing some of the supplies that appear to have been used in the Maspeth burglary.
* * *
MAZZARA, 44, KERRIGAN, 40, and MASCUZZIO, 36, all of Brooklyn, New York, are each charged with one count of conspiracy to commit bank burglary, which carries a maximum sentence of five years in prison; and one count of bank burglary, which carries a maximum sentence of 20 years in prison. MAZZARA and KERRIGAN have also been charged with a second count of bank burglary, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the efforts of the FBI, the NYPD, and the Drug Enforcement Administration in this investigation. He also thanked the U.S. Probation Office, the New York State Police, and the New York National Guard Counter Drug Task Force for their assistance. He added that the investigation is continuing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Benet J. Kearney and David W. Denton, Jr., are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint forth herein constitute only allegations, and every fact described should be treated as an allegation.
Thomas Martinez Sentenced to 27.5 Years for Federal Carjacking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Thomas Martinez, 26, of Albuquerque, N.M., was sentenced today to 330 months in prison for his conviction on federal carjacking and firearms charges arising out of a one-day violent crime spree. Martinez will be on supervised release for five years after he completes his prison sentence
The sentence was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden E. Eden, Jr., of the Albuquerque Police Department (APD).
The U.S. Attorney said that Martinez was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. “As a general matter, the initiative targets violent and repeat offenders based on their prior felony convictions. Periodically, we prosecute individuals without prior serious convictions because they are have engaged in extraordinarily violent conduct that seriously jeopardized the community’s safety,” said U.S. Attorney Martinez. “Martinez was prosecuted under the initiative based on a one-day violent crime spree on July 22, 2015, which endangered the lives of numerous Albuquerque residents and several officers.”
“This case reflects the partnership we have with the U.S. Attorney’s Office and other critical agencies. Our community is safer when we work together,” said 2nd Judicial District Attorney Kari E. Brandenburg.
ATF Special Agent in Charge Thomas G. Atteberry added, “Today’s sentencing reflects how seriously we enforce the federal firearms laws. If a criminal chooses to use a firearm during the commission of a violent crime as Martinez did, he better be prepared to spend a long time in federal prison.”
“Mr. Martinez showed a blatant disregard for our victim, three children, our officer and our community during his dangerous crime spree,” APD Police Chief Police Gorden E. Eden Jr. said. “We truly appreciate our law enforcement partners and the U.S. Attorney’s Office for their efforts to ensure this violent offender was sentenced under the ‘worst of the worst’ initiative.”
Martinez was charged with carjacking and firearms offenses in a criminal complaint filed on July 23, 2015. He subsequently was indicted on Aug. 11, 2015, and charged with two counts of carjacking and two counts of brandishing and discharging a firearm during a crime of violence. According to the indictment, Martinez committed all four crimes on July 22, 2015, in Bernalillo County, N.M., as he attempted to evade APD officers who were seeking to arrest him on a warrant arising out of an unrelated state court case.
Martinez committed the first carjacking as he attempted to flee from officers who were conducting surveillance near a hotel in northeast Albuquerque. Martinez ran to a sedan occupied by a driver and three children as the driver was entering a ramp onto Interstate 40. Martinez brandished a firearm at the driver, pushed the driver into the sedan’s passenger seat, and used the sedan to continue his flight from the officers. The children were able to get out of the vehicle before Martinez drove away with the driver. An APD officer who was attempting to prevent the carjacking was dragged by the Chevrolet as Martinez drove away. As Martinez continued his flight, the driver of the sedan attempted to get Martinez to stop the vehicle, and Martinez responded by discharging the firearm in an attempt to shoot the driver. When Martinez slowed down, the driver was able to jump out of the sedan.
Martinez continued his flight in the sedan and abandoned the vehicle in a neighborhood in southeast Albuquerque. There Martinez forced his way into another vehicle which was occupied by an older man seated in the front passenger seat. As Martinez began to drive away, another man confronted Martinez, got into the vehicle, and began fighting with Martinez. During the fight, Martinez attempted to discharge his gun at the man. Shortly thereafter, the man was able to disarm Martinez, and Martinez was arrested by APD officers on state charges.
Martinez was arrested on the federal charges on Oct. 7, 2015, after he was transferred from state custody to federal custody. The related state charges against Martinez were dismissed in favor of federal prosecution.
On Dec. 11, 2015, Martinez pled guilty to two counts of carjacking and one count of discharging a firearm during a crime of violence.
This case was investigated by the ATF office in Albuquerque and APD with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Paul Mysliwiec prosecuted the case as part of the “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Thirty Four Alleged Gang Members Charged with Participating in Racketeering Conspiracy Involving Guns, Assaults and Attempted Murders in Chicago and SuburbsRead the Press Release
CHICAGO — Two federal indictments unsealed in Chicago today charged 34 members of the Latin Kings street gang with participating in a criminal organization that assaults and attempts to murder its rivals and violently protects its territories in the city and suburbs.
Authorities uncovered the alleged gang activity through dual investigations conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF). During the course of the multi-year probes, law enforcement agents confiscated more than 40 firearms, including two AR-15 assault rifles.
The indictments allege that members of the Latin Kings violently enforced discipline within its ranks and retaliated against rivals and former members to prevent cooperation with law enforcement. Its members and associates engaged in various acts of violence, including murder, attempted murder, assault with dangerous weapons, arson, and extortion, according to the indictments. The charges include the attempted murders of rival gang members and a Melrose Park Police officer.
Thirty four alleged Latin Kings are charged with racketeering conspiracy. A 35th alleged Latin King is charged in the indictment with selling a firearm without a license. The 36th and final defendant is an alleged Latin King charged in a criminal complaint with being a felon in possession of a firearm.
Several of the defendants were arrested this week and have begun making initial appearances in federal court in Chicago.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Lindsay Murphy, Acting Special Agent-in-Charge of the Chicago Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and Eddie T. Johnson, Superintendent of the Chicago Police Department. The officials recognized the substantial investigative assistance of the Melrose Park Police Department, Maywood Police Department, Cook County Sheriff's Police Department, Joliet Police Department, Evergreen Park Police Department, Bolingbrook Police Department, Orland Park Police Department, Palos Park Police Department, Hammond (Ind.) Police Department, and East Chicago (Ind.) Police Department.
The indictments pertain to alleged Latin King activities in two Chicagoland areas – the Southeast Side of Chicago, including the south suburbs, and the western suburbs of Maywood and Melrose Park.
Southeast Region (Chicago and South Suburbs)
U.S.A. v. Cavillo, et al, 16 CR 463
The Southeast Region of the Latin Kings contains over a dozen chapters, all of which answer to a regional structure of leadership, according to the indictment. Each chapter is typically named after the city in which it operates, or by a street or streets that run through the chapter. Among the Chicago chapters included in the Southeast Region were 82nd Street, 88th and 89th Streets, 97th Street, 99th Street, 102nd Street, 104th Street, and the Roseland neighborhood. Other regional chapters operated in the south suburbs of Blue Island, Dolton, Harvey and Chicago Heights, as well as in Kankakee and communities across the border in Indiana, according to the indictment.
The indictment charges three alleged high-ranking Latin Kings who enforced discipline and adherence to the gang’s rules and were known as “Regional Enforcers.” The three Southeast Regional Enforcers charged in the indictment are RAUL CAVILLO, 33, of Chicago; JOEL NUNEZ, 39, of Chicago; and CARLOS PADILLA JR., 35, of Chicago.
Also charged in the indictment are several alleged chapter leaders, known within the hierarchy as “Incas,” and their second in command, known as “Caciques.” According to the indictment, PAUL VASQUEZ, 43, of Chicago, served as Inca of the 82nd Street chapter; RUBEN PORRAZ, 36, of Chicago, was Inca of the 89th Street chapter; EDWARD DELGADO JR., 31, of Chicago, and LUIS GOMEZ, 31, of Chicago, were at times Incas of the 97th Street chapter; MIGUEL DENAVA, 27, of Chicago, served as Inca of the 99th Street chapter; and ELOY FUENTES, 31, of Chicago, was Inca of the 104th Street chapter. Incas are considered the highest authority within a chapter and oversaw the unlawful affairs of the Latin Kings in their areas, according to the indictment.
Caciques charged in the indictment include RAYMOND VASQUEZ, 30, of Chicago, who worked in the 97th Street chapter; and CARLOS CARTAGENA, 35, of Calumet City, in the 102nd Street chapter, according to the indictment.
Raymond Vasquez and three “Soldiers” of the chapter are charged in the indictment with using a dangerous weapon to assault an individual on Dec. 2, 2012, in south suburban Burnham. The purpose of the assault was to maintain and increase their position in the Latin Kings, the indictment states. The soldiers are identified in the indictment as FERNANDO CHAVEZ, 31, of Lansing; ISRAEL MATA, 33, most recently in state custody in Indiana on firearm charges; and EDGAR GONZALEZ, 32, of Whiting, Ind. Chavez is a convicted felon who is also charged with illegally possessing a Smith & Wesson .38-caliber pistol in Chicago in the summer of 2014, the indictment states.
Several other firearm-related offenses are charged in the indictment. A chapter soldier, ROY VEGA, 33, of Chicago, is charged with brandishing and discharging a firearm during a violent assault on July 5, 2014, in Chicago. Paul Vasquez is charged with attempting to transfer a loaded Tec-DC9 semi-automatic pistol to other Latin King members on Oct. 25, 2015, in Chicago, according to the indictment. Delgado is charged with being a felon in possession of a loaded Tauras .380-caliber semi-automatic pistol in Chicago, the indictment states. Delgado also faces a drug-related charge for allegedly distributing cocaine in the city in April 2014.
Also charged in the indictment is JUAN JIMENEZ, 33, of Blue Island, who allegedly served as the Southeast Regional Treasurer. Jimenez collected dues from the chapters as a way of financially supporting the activities of the region, the indictment states.
“M-Town” Section (Melrose Park and Maywood)
U.S.A. v. Gennell, et al, 16 CR 462
Included within the Midwest Region of the Latin Kings were numerous sections of the gang, including the Maywood section and the Melrose Park section, which collectively were referred to as the “M-Town” section. The geographical location controlled by the Maywood section included the area east of 25th Avenue, west of 1st Avenue, north of Lake Street, and south of North Avenue, in the western suburbs of Maywood and Melrose Park, according to the indictment.
The M-Town section was divided into two groups, known as “circles,” the indictment states. A group of older members were referred to as the “junior” circle or “older” circle, while a group of younger members were referred to as the “Pee-Wee” or “Shorty” circle. During periods when the M-Town section was split into an older and younger circle, each circle had its own set of leaders, but the ranking members of the younger circle still reported to the ranking members of the older circle, according to the indictment.
The hierarchy within the M-Town section was similar to the rankings in other Latin King sections, including the roles of Incas, Caciques, Enforcers, Soldiers and others, the indictment states. Several leaders of the M-Section, including three Incas and three Caciques, have been charged in the indictment. The three Incas are identified as PIERE PAOLO GENNELL, 30, of Melrose Park, and JOSE F. HERNANDEZ, 45, of Maywood, both of whom served at various times as Inca of the older circle; and DAVID PEREZ, 26, of Melrose Park, an Inca of the younger circle. The Caciques include older circle members ULISES DE LA CRUZ, 28, of Melrose Park, and MIGUEL MARTINEZ, 31, of Grayslake; and younger circle Cacique RUBEN MORENO, 24, of Melrose Park.
Gennell and Perez, along with two younger circle enforcers and a soldier, are charged in the indictment with attempting to murder an individual in Melrose Park on May 11, 2014, according to the indictment. During the attempted murder, the two enforcers, EFRAIN MEDINA, 26, of Maywood, and JOSE PENA, 21, of Melrose Park, personally discharged a firearm that left the victim badly injured and permanently disfigured, according to the indictment.
EDGAR VELARDE-SALDANA, 33, of Maywood, a soldier in the younger circle of the M-Town section, is charged in the indictment with attempting to murder a Melrose Park police officer on July 6, 2014. The officer was assisting agents from the Federal Bureau of Investigation at the time of the attempted killing, according to the indictment. The following month, Velarde-Saldana brandished and discharged a .45-caliber pistol during the course of a separate violent crime in Maywood, the indictment states.
Several other firearm-related offenses are charged in the indictment. Perez is facing gun charges for being a felon in possession of five pistols, a shotgun and a rifle in Maywood, Melrose Park and Hinsdale in the summer of 2014, according to the indictment. MARIO A. HERNANDEZ, 41, of Maywood, is a convicted felon who allegedly illegally possessed a Smith & Wesson 556-caliber rifle.
The investigations were conducted under the umbrella of the OCDETF program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations.
The public is reminded that indictments contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The racketeering conspiracy charge generally carries a maximum sentence of 20 years in prison, but a life sentence is possible for certain underlying racketeering activities referenced in the indictments. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Assistant U.S. Attorneys Brian Wallach, Derek Owens and Vikas Didwania are representing the government in the Cavillo, et al, case.
Assistant U.S. Attorneys Jennie Levin, Matthew Hernandez and Morris Pasqual are representing the government in the Gennell, et al, case.
Gennell et al indictment
Cavillo et al indictment
Texan Sentenced to 90 Months in Prison for Trafficking Drugs in Lea CountyRead the Press Release
ALBUQUERQUE – Arturo Dominguez Morales, 45, of Lamesa, Texas, was sentenced today in federal court in Las Cruces, N.M., to 90 months in prison for his methamphetamine trafficking conviction. Morales will be on supervised release for 6 years after completing his prison sentence.
Morales was arrested on June 30, 2015, on a criminal complaint charging him with possession of methamphetamine with intent to distribute in Lea County, N.M. According to the complaint, agents with the Lea County Drug Task Force (LCDTF) discovered more than 230 grams of methamphetamine in Morales’ vehicle after learning from confidential sources that Morales was bringing large amounts of methamphetamine into Hobbs, N.M., for distribution.
On Sept. 30, 2015, Morales pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Morales admitted that on June 28, 2015, the LCDTF found 232 grams of methamphetamine in his vehicle. Morales also admitted that he was delivering the methamphetamine to another individual.
This case was investigated by the Las Cruces office of the DEA and the LCDTF and was prosecuted by Assistant U.S. Attorney Terri J. Abernathy.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
State Street Bank to Pay $382 Million to Settle Allegations of Fraudulent Foreign Currency Exchange PracticesRead the Press Release
BOSTON – Carmen M. Ortiz, the United States Attorney for the District of Massachusetts, Andrew J. Ceresney, Director of the Division of Enforcement for the Securities and Exchange Commission (SEC), and Thomas E. Perez, the United States Secretary of Labor (DOL), announced today that State Street Bank and Trust Company, a Massachusetts-based financial institution, agreed to pay a total of at least $382.4 million, including $155 million to the Department of Justice (DOJ), $167.4 million in disgorgement and penalties to the SEC, and at least $60 million to ERISA plan clients in an agreement with the DOL, to settle allegations that it deceived some of its custody clients when providing them with indirect foreign currency exchange (FX) services.
As part of the settlement with the Department of Justice, State Street, a Massachusetts-based financial company, admitted that contrary to its representations to certain custody clients, its State Street Global Markets division (SSGM) generally did not price FX transactions at prevailing interbank market rates. Instead, State Street admitted that SSGM executed FX transactions by applying a predetermined, uniform mark-up (if the custody client was a FX purchaser) or mark-down (if the custody client was an FX seller) to the prevailing interbank rate for FX. State Street is also alleged to have falsely informed custody clients that it provided “best execution” on FX transactions, that it guaranteed the most competitive rates available on FX transactions, and that it priced FX transactions based on a variety of factors when, in fact, prices were largely driven by hidden mark-ups designed to maximize State Street’s profits.
“State Street’s custody clients, many of whom were public pension funds, financial institutions, and non-profit organizations, had a right to expect that State Street would execute transactions in an honest and forthright manner,” said United States Attorney Carmen M. Ortiz. “Instead, State Street executed FX transactions in a manner that enabled it to reap substantial profits at the expense of its custody clients. Today’s settlement reflects a significant and appropriate penalty for State Street’s deceptive conduct.”
“State Street misled custody clients about how it priced their trades and tucked its hidden markups into a corner where they were unlikely to notice,” said Andrew J. Ceresney, Director of the SEC’s Division of Enforcement. “Financial institutions cannot mislead their customers about their trading costs.”
“When financial institutions charged with safeguarding retirement plan assets put the firm’s interests ahead of the best interest of their plan clients, or fail to candidly disclose fees, we will hold them accountable. Retirement security is a pillar of middle class life, and the Labor Department and our federal partners are committed to using our authority to protect it,” said Secretary of Labor Thomas E. Perez.
Pursuant to the proposed settlements and other agreements, State Street will pay a total of $382.4 million, of which $155 million will be paid as a civil penalty to the United States to resolve the allegations made by the Department of Justice that State Street violated the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), by committing fraud affecting financial institutions. The United States’ investigation arose from whistleblowers who filed a declaration pursuant to FIRREA.
The SEC has approved a separate agreement to settle the SEC’s investigation concerning State Street’s indirect FX services. Under the terms of the agreement, the Commission will enter an administrative order against State Street, only after the U.S. District Court gives final approval to State Street’s proposed settlement with private plaintiffs in pending securities class action lawsuits concerning its indirect FX pricing service. The administrative order will find that State Street violated Section 34(b) of the Investment Company Act of 1940 (Investment Company Act) and caused violations of Section 31(a) of the Investment Company Act and Rule 31a-1(b) thereunder, by providing its registered investment company (RIC) clients with trade confirmations and monthly transaction reports that were materially misleading in light of State Street’s representations about how it priced FX transactions. Under the terms of the order, State Street will be required to disgorge $75 million in ill-gotten gains and $17.4 million in prejudgment interest, to be paid to RIC clients, and also pay the SEC a civil penalty of $75 million.State Street is simultaneously resolving DOL’s claims under the Employee Retirement Income Security Act (ERISA) by agreeing to pay at least $60 million to State Street’s ERISA plan customers who, DOL found, sustained losses in connection with the conduct alleged above. This amount will be distributed to ERISA plan customers in conjunction with the settlement of certain private class action lawsuits. DOL alleges in the settlement that State Street made false or misleading representations concerning certain FX trades, and concealed from its plan customers how it priced those trades. In the settlement State Street represents that it now makes and will continue to make detailed disclosures to its customers with respect to its FX pricing, and that it now refrains and will continue to refrain from making representations regarding its FX pricing that are not accurate.
State Street will pay an additional $147.6 to resolve private class action lawsuits filed by the Bank’s customers alleging similar misconduct.
The case was handled by Assistant U.S. Attorneys Justin O’Connell and Abraham George of Ortiz’s Civil Division. The SEC’s investigation was conducted by Senior Enforcement Counsels Sue Curtin, Cynthia Storer Baran and Andrew Palid, Senior Trial Counsel Deena Bernstein, and Assistant Regional Director Celia Moore, all of the Boston Regional SEC Office, and Stuart Jackson of the Division of Economic and Risk Analysis. The DOL’s case was investigated by the Employee Benefits Security Administration’s Boston Regional Office with assistance from Senior Trial Attorneys Suzanne Reilly, Nathan Goldstein, and Nathan Henderson, and ERISA Counsel Marjorie Butler.
State Street Bank to Pay $382 Million to Settle Allegations of Fraudulent Foreign Currency Exchange PracticesRead the Press Release
U.S. Attorney Carmen M. Ortiz for the District of Massachusetts, Director Andrew J. Ceresney of the Division of Enforcement for the Securities and Exchange Commission (SEC) and Secretary Thomas E. Perez of the U.S. Department of Labor (DOL), announced today that State Street Bank and Trust Company, a Massachusetts-based financial institution, agreed to pay a total of at least $382.4 million, including $155 million to the Department of Justice, $167.4 million in disgorgement and penalties to the SEC and at least $60 million to ERISA plan clients in an agreement with the DOL, to settle allegations that it deceived some of its custody clients when providing them with indirect foreign currency exchange (FX) services.
As part of the settlement with the Department of Justice, State Street admitted that contrary to its representations to certain custody clients, its State Street Global Markets division (SSGM) generally did not price FX transactions at prevailing interbank market rates. Instead, State Street admitted that SSGM executed FX transactions by applying a predetermined, uniform mark-up (if the custody client was a FX purchaser) or mark-down (if the custody client was an FX seller) to the prevailing interbank rate for FX. State Street is also alleged to have falsely informed custody clients that it provided “best execution” on FX transactions, that it guaranteed the most competitive rates available on FX transactions and that it priced FX transactions based on a variety of factors when, in fact, prices were largely driven by hidden mark-ups designed to maximize State Street’s profits.
“State Street’s custody clients, many of whom were public pension funds, financial institutions and non-profit organizations, had a right to expect that State Street would execute transactions in an honest and forthright manner,” said U.S. Attorney Ortiz. “Instead, State Street executed FX transactions in a manner that enabled it to reap substantial profits at the expense of its custody clients. Today’s settlement reflects a significant and appropriate penalty for State Street’s deceptive conduct.”
“State Street misled custody clients about how it priced their trades and tucked its hidden markups into a corner where they were unlikely to notice,” said Director Ceresney. “Financial institutions cannot mislead their customers about their trading costs.”
“When financial institutions charged with safeguarding retirement plan assets put the firm’s interests ahead of the best interest of their plan clients, or fail to candidly disclose fees, we will hold them accountable,” Secretary Perez. “Retirement security is a pillar of middle class life, and the Labor Department and our federal partners are committed to using our authority to protect it.”
Pursuant to the proposed settlements and other agreements, State Street will pay a total of $382.4 million, of which $155 million will be paid as a civil penalty to the United States to resolve the allegations made by the Department of Justice that State Street violated the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), by committing fraud affecting financial institutions. The United States’ investigation arose from whistleblowers who filed a declaration pursuant to FIRREA.
The SEC has approved a separate agreement to settle the SEC’s investigation concerning State Street’s indirect FX services. Under the terms of the agreement, the Commission will enter an administrative order against State Street, only after the U.S. District Court gives final approval to State Street’s proposed settlement with private plaintiffs in pending securities class action lawsuits concerning its indirect FX pricing service. The administrative order will find that State Street violated Section 34(b) of the Investment Company Act of 1940 (Investment Company Act) and caused violations of Section 31(a) of the Investment Company Act and Rule 31a-1(b) thereunder, by providing its registered investment company (RIC) clients with trade confirmations and monthly transaction reports that were materially misleading in light of State Street’s representations about how it priced FX transactions. Under the terms of the order, State Street will be required to disgorge $75 million in ill-gotten gains and $17.4 million in prejudgment interest, to be paid to RIC clients, and also pay the SEC a civil penalty of $75 million.
State Street is simultaneously resolving DOL’s claims under the Employee Retirement Income Security Act (ERISA) by agreeing to pay at least $60 million to State Street’s ERISA plan customers who, DOL found, sustained losses in connection with the conduct alleged above. This amount will be distributed to ERISA plan customers in conjunction with the settlement of certain private class action lawsuits. DOL alleges in the settlement that State Street made false or misleading representations concerning certain FX trades, and concealed from its plan customers how it priced those trades. In the settlement State Street represents that it now makes and will continue to make detailed disclosures to its customers with respect to its FX pricing and that it now refrains and will continue to refrain from making representations regarding its FX pricing that are not accurate.
State Street will pay an additional $147.6 to resolve private class action lawsuits filed by the bank’s customers alleging similar misconduct.
The case was handled by Assistant U.S. Attorneys Justin O’Connell and Abraham George of Ortiz’s Civil Division. The SEC’s investigation was conducted by Senior Enforcement Counsels Sue Curtin, Cynthia Storer Baran and Andrew Palid, Senior Trial Counsel Deena Bernstein and Assistant Regional Director Celia Moore, all of the Boston Regional SEC Office and Stuart Jackson of the Division of Economic and Risk Analysis. The DOL’s case was investigated by the Employee Benefits Security Administration’s Boston Regional Office with assistance from Senior Trial Attorneys Suzanne Reilly, Nathan Goldstein and Nathan Henderson, and ERISA Counsel Marjorie Butler.
Spokane Doctor Sentenced to Life Imprisonment Following a Jury Verdict for 12 Counts of Aggravated Sexual Abuse of ChildrenRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Craig A. Morgenstern, age 47, of Nine Mile Falls, Washington was sentenced to 12 life terms in federal prison after a jury found him guilty of 12 counts of Aggravated Sexual Abuse of a Child. Senior United States District Judge W. Fremming Nielsen also imposed a 30-year term of imprisonment for each of Morgenstern’s 18 convictions for Production and Attempted Production of Child Pornography; a 20-year term of imprisonment for Morgenstern’s two convictions for Travel with Intent to Engage in Illicit Sexual Contact with a Minor; and, a 20-year term of imprisonment for Morgenstern’s conviction for Receipt of Child Pornography.
According to evidence introduced at trial, Morgenstern sexually assaulted six young boys and produced child pornography images of the assaults from 2008 through 2014. The victims ranged in age from 7 to 15 years old at the time of the assaults. Evidence at trial also established that Morgenstern traveled to Idaho, Mississippi, and Tennessee in order to sexually molest the same victims and produce child pornography images for his own sexual gratification. Evidence also established that Morgenstern would incapacitate his victims using drugs so that the victims were unaware of the sexual abuse and so that Morgenstern to continue his crimes and avoid detection.
Evidence at trial established that Morgenstern’s crimes were discovered after one of his victims, then a minor child less than 14 years old, escaped from the Morgenstern’s residence in Stevens County on October 18, 2014 after awaking to Morgenstern sexually assaulting him during the early morning hours. Subsequent investigation and evidence lead to the discovery of the additional victims.
At sentencing, Senior Judge Nielsen recounted the basis for the Jury’s 33 guilty verdicts against Morgenstern and noted that the evidence against him was overwhelming. Senior Judge Nielsen also found that Morgenstern obstructed justice by attempting to destroy much of the evidence of his crimes prior to his arrest. Prior the Court’s imposition of sentence, several victims and members of the victims’ families addressed the Court and Morgenstern, recounting the effect of Morgenstern’s crimes.
In addition to imposing imprisonment, Senior Judge Nielsen also ordered the forfeiture of numerous electronic devices and other materials that Morgenstern used to produce and maintain his collection of child pornography, the forfeiture of approximately $30,000 remaining from the sale of Morgenstern’s house, and restitution of approximately $10,000 to the families of the victims.
Michael C. Ormsby said “Morgenstern is every parent’s nightmare. Morgenstern preyed on families by grooming both the parents and children into trusting him so that he could be alone with his victims. Once alone with his victims he would drug them, sexually molest them and produce graphic images and videos of his molestation of the victims. The trauma associated with Morgenstern’s actions cannot be overstated and the damage caused by the Morgenstern to the victims by his sexual exploitation of them and breach of their trust is immeasurable.”
The investigation of this case was conducted by the Federal Bureau of Investigation and the Stevens County Sheriff’s Office. The case was prosecuted by Stephanie J. Lister and James A. Goeke, Assistant U.S. Attorneys for the Eastern District of Washington, as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Schenectady Felon Pleads Guilty to Possessing GunRead the Press Release
ALBANY, NEW YORK – Lawrence Giggetts, age 36, of Schenectady, New York, pled guilty today to illegally possessing a firearm.
The announcement was made by United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
As part of his plea, Giggetts admitted to possessing a Raven .25 caliber handgun with a serial number that had been defaced in an attempt to remove it. A prior felony conviction prevented Giggetts from legally possessing a firearm.
Giggetts faces up to 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 on November 22, 2016 by Senior United States District Judge Gary L. Sharpe. 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 Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
San Bernardino Woman Pleads Guilty to Sex Trafficking a 16 Year-Old GirlRead the Press Release
ALEXANDRIA, Va. – Christina Ann Traylor, 27, of San Bernardino, California, pleaded guilty today to charges of sex trafficking a minor.
According to the statement of facts filed with the plea agreement, Traylor, together with her boyfriend, recruited the minor victim for the purposes of having her engage in commercial sex work. Traylor caused the minor to perform commercial sex acts in Harrisonburg and Craigsville. Together with her boyfriend, Traylor drove the minor to New Orleans, Louisiana, where she demanded that the minor continue to perform commercial sex acts. After the minor refused to prostitute, Traylor assaulted her and drove her across the country to San Bernadino, California, where Traylor forced the minor to prostitute on the street. The minor was recovered by law enforcement and returned to Virginia.
Traylor faces a mandatory minimum of ten years and a maximum penalty of life in prison when sentenced on December 2. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Whitney Dougherty Russell is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16CR159.
San Antonio Man Sentenced to Federal Prison on Child Pornography ChargeRead the Press Release
Earlier today, 34-year-old Luis Armando Ontiveros of San Antonio was sentenced to 145 months in federal prison followed by a 30 years of supervised release for receiving of child pornography announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
On April 25, 2016, Ontiveros pleaded guilty to the charge. By pleading guilty, Ontiveros admitted that from July 2013 until November 2015, he downloaded images and videos involving child pornography from the Internet.
In November 2015, federal authorities arrested Ontiveros following the execution of a search warrant at his residence. A subsequent forensics examination of seized materials, including the defendant’s computer and related media, revealed the presence of approximately 700 images and 270 videos depicting prepubescent children, many of which were engaged in sadistic or masochistic conduct. Ontiveros has remained in federal custody since his arrest.
This investigation was conducted by the FBI’s San Antonio Child Exploitation Task Force. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the 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 www.projectsafechildhood.gov.
Rochester Man Sentenced for Enticement of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Jason Cortese, 34, of Greece, NY, who was convicted of enticement of a minor, was sentenced to 135 months in prison and 10 years supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that Cortese used the internet and a smart phone to persuade a 12 year old minor to engage in sexually explicit activity. This activity included engaging in sexually explicit chats, attempting to have the minor send sexually explicit images of themselves and to receive and distribute images of child pornography.
A family member of the minor notified law enforcement officials after seeing the contents of the 12-year-old’s cell phone which included chats between the minor and the defendant. Cortese was known to the minor as a family friend. The minor disclosed that the two started chatting directly with one another through Facebook and then through Kik and Instagram.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn and the Irondequoit Police Department, under the direction of Chief Richard Tantalo. The task force includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Quinault Tribal Member Sentenced to Three Years in Prison for Brutal Assault on Intimate PartnerRead the Press Release
A 24-year-old member of the Quinault Tribe was sentenced today in U.S. District Court in Tacoma to three years in prison and three years of supervised release for Assault Resulting in Serious Bodily Injury, announced U.S. Attorney Annette L. Hayes. RICKY LEE LOGAN, pleaded guilty in March 2016, to repeatedly assaulting his girlfriend during the period May 25-29 while both were on Tribal Trust land on the Quinault Reservation. At sentencing U.S. District Judge Benjamin H. Settle noted that LOGAN was under the influence of methamphetamine at the time of the assaults saying “Your use of drugs has led to violent behavior….(The victim) was seriously injured as the result of this conduct.”
According to records in the case, on May 29, 2015, Quinault Tribal Police found the victim with bruising all over her back, side, face, jaw, and neck, and black eyes. She had puncture wounds on her hands. Her lungs had collapsed from the repeated beatings, and she had broken ribs. The woman was rushed to the hospital and has since recovered. LOGAN was indicted federally for the assault in October 2015.
Because LOGAN is a tribal member and the assault occurred on Tribal land the case is under the jurisdiction of federal courts.
The case was investigated by the Quinault Tribal Police and the FBI.
The case was prosecuted by Assistant United States Attorneys J. Tate London and Ye-Ting Woo.
Press AdvisoryRead the Press Release
There will be a press conference today at 1:00 p.m. to announce federal charges against three men in connection with recent bank burglaries in New York, that resulted in the theft of over $5 million in cash and valuables.
WHO:
Preet Bharara, United States Attorney for the Southern District of New York
Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation
William J. Bratton, Commissioner of the New York City Police Department
WHAT:
Press Conference
WHEN:
Tuesday, July 26th, 2016 at 1:00 p.m.
WHERE:
U.S. Attorney’s Office, Southern District of New York
1 St. Andrew’s Plaza
New York, NY 10007
CONTACT:
James Margolin, Dawn Dearden, Nicholas Biase (212) 637-2600
NOTE: Please arrive early to permit clearance through security. Please silence all cell phones, PDAs, and pagers before start of press conference.
Orange County Man Who Allegedly Impersonated ICE Agent Faces Federal ChargeRead the Press Release
SANTA ANA, California – An Orange County man who allegedly posed as an agent with U.S. Immigration and Customs Enforcement (ICE) in an attempt to extort money from at least one female victim made his first federal court appearance this afternoon after being charged with impersonating a federal officer.
Luis A. Flores-Mendoza, 26, of Santa Ana, was arrested Monday by Special Agents with ICE Homeland Security Investigations (HSI). He was charged in a criminal complaint that federal prosecutors filed last week.
Flores-Mendoza was initially arrested and charged in state court earlier this month after an investigation by the Placentia Police Department.
According to the federal complaint, the female victim told Placentia police detectives that Flores-Mendoza arrived at her workplace last month clad in police tactical gear, including a vest, badge, and a firearm, which later proved to be a pellet gun. After allegedly identifying himself as an ICE agent, the victim said Flores-Mendoza presented her with a letter, purportedly from ICE, stating there was an immigration case against her. The defendant then allegedly instructed the victim to pay him $5,000 to prevent her and her child from being deported. At the time of his original arrest on the state charge earlier this month, Flores-Mendoza was driving a vehicle equipped with police-style strobe lights and a siren.
“Impersonating a federal agent not only harms the victim who encounters the impersonator, but it can also undermine the public’s confidence in law enforcement officers,” said United States Attorney Eileen M. Decker. “In this case, the defendant allegedly posed as a federal agent in an effort to extort money from a vulnerable victim, who fortunately reported it to police.”
“We’re committed to safeguarding the public from scam artists and others who exploit people’s fears for no other reason than to enrich themselves,” said Joseph Macias, Special Agent in charge of HSI’s Los Angeles office. “We’re concerned this defendant may have preyed on others, and we’re asking anyone who may have been victimized by this individual to come forward.”
HSI and the Placentia Police Department are continuing to investigate this case. Authorities urge members of the public who have information that may be relevant to this ongoing probe to contact the Placentia Police Department or ICE’s toll-free tip line – 1-866-DHS-2ICE – or use the agency’s online tip form.
At his court appearance this afternoon, Flores-Mendoza was ordered freed on a $10,000 bond, and he was directed to appear for his arraignment on August 29.
A criminal complaint contains allegations that a defendant has committed a crime. The defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of the impersonation charge, Flores-Mendoza faces a statutory maximum penalty of three years in federal prison.
This case is being prosecuted by Assistant United States Attorney Robert J. Keenan.
Ninth Nigerian Extradited to Mississippi to Face Federal Internet Fraud ChargesRead the Press Release
Gulfport, Miss – A ninth Nigerian national has been extradited from South Africa to face charges on a nine-count federal indictment filed in the Southern District of Mississippi involving various internet fraud schemes, announced U.S. Attorney Gregory K. Davis. Previously one South African was extradited from South Africa and an additional Nigerian from Canada.
Gabriel Oludare Adeniran, 30, appeared before U.S. Magistrate Judge Robert H. Walker in Gulfport on Monday for arraignment on two counts of conspiracy to commit mail, wire and bank fraud, as well as identity theft, access device fraud and theft of government funds, and one count of conspiracy to commit money laundering.
This case is set for trial on January 17, 2017. Adeniran faces a maximum penalty of 55 years in prison on the charges.
The indictment in this case alleges a West African transnational organized crime enterprise involved in numerous complex financial fraud schemes over the internet. This mass marketing fraud includes romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial and credit card account take-overs. Potential victims can find information and a claim form on the website for the United States Attorney’s Office for the Southern District of Mississippi at: http://www.justice.gov/usao/mss/scams.
The Department of Homeland Security, Homeland Security Investigations and the United States Postal Inspection Service are investigating this fraud. The case in Mississippi will be prosecuted by Assistant U.S. Attorney Annette Williams, along with Conor Mulroe of the Organized Crime Gang Section and Peter Roman of the Computer Crimes Intellectual Property Section.
An indictment is a formal charge against a defendant. Under the law, an indictment is merely an accusation and a defendant is presumed innocent until proven guilty.
New York Gang Member Sentenced to Federal Prison for Attempted Firearms TraffickingRead the Press Release
BRUNSWICK, GA- Qaaid Reddick, 33, of Brooklyn, New York was sentenced last week by Chief U.S. District Court Judge Lisa Godbey Wood to 82 months in prison for his role in the attempted exchange of heroin and cocaine for a cache of firearms.
According to evidence presented during guilty plea and sentencing hearings, Reddick, a Bloods Gang leader, and Brandon Conway, 22, both New York residents, traveled from New York to Brunswick, Georgia to trade heroin and cocaine for a cache of firearms. Reddick and Conway were attempting to obtain firearms to take back to New York so they could be disseminated to others and used in crimes. Reddick and Conway delivered the drugs to a person at a hotel room in Brunswick, Georgia. In the hotel room, Reddick and Conway were shown the cache of firearms they ordered, which included semi-automatic weapons and an assault rifle. To their surprise, Reddick and Conway were dealing with an undercover ATF agent. Reddick and Conway were quickly arrested in the hotel room without incident.
United States Attorney Ed Tarver stated, “Georgia is often referred to as a ‘source state’ for out-of-state gang members looking for firearms. This U.S. Attorney’s Office and our federal and state law enforcement partners will continue to disrupt the illegal pipeline of guns from Georgia to the hands of those peddling drugs, fear and crime in neighborhoods throughout our great nation.”
At an earlier sentencing hearing, Reddick’s coconspirator, Brandon Conway, was sentenced to 7 months in prison and 3 years of supervised release. There is no parole in the federal system.
The case was investigated by the ATF, the GBI and the Glynn County Sheriff’s Department. Assistant United States Attorney E. Greg Gilluly, Jr. prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Navajo Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Rob Begay, 24, an enrolled member of the Navajo Nation who resides in Twin Lakes, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to an indictment charging him with involuntary manslaughter.
Begay was arrested on Dec. 2, 2015, on a criminal complaint charging him with involuntary manslaughter. Begay was indicted on Dec. 17, 2015, and was charged with killing a Navajo woman on Nov. 28, 2015, while driving under the influence of alcohol. According tot the indictment, Begay committed the crime on the Navajo Indian Reservation in McKinley County, N.M.
During today’s change of plea hearing, Begay pled guilty to the indictment and admitted killing the victim by driving recklessly while under the influence of alcohol. Begay admitted that because of his intoxication he was incapable of exercising clear judgment and a steady hand in operating a vehicle.
At sentencing, Begay faces a statutory maximum penalty of eight years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Jack Burkhead.
Mount Vernon Tax Preparer Convicted of Obstructing the IRS and 38 Counts of Aiding and Assisting Preparation of False and Fraudulent Tax ReturnsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that tax preparer SAMUEL GENTLE, the owner of a tax preparation business named GenGen, Inc., in Mount Vernon, New York, was found guilty on charges of obstructing the IRS and aiding and assisting the preparation of false and fraudulent individual income tax returns for his clients. GENTLE was convicted yesterday after a five-day jury trial before U.S. District Judge Cathy Seibel.
Manhattan U.S. Attorney Preet Bharara said: “As a jury found after trial, Samuel Gentle abused his position of trust as a tax preparer by systematically violating the nation’s income tax laws. The investigation that led to this conviction underscores our commitment, as well as that of our partners at the IRS, in pursuing and prosecuting people who circumvent our tax laws.”
As established by the evidence at trial:
From 2010 through 2014, GENTLE’s tax preparation business prepared and submitted to the IRS, on average, 3,200 tax returns each year. Some of these tax returns were false and fraudulent in that they contained various inflated deductions for unreimbursed employee business expenses, gifts to charity, and Schedule C business expenses.
As part of the investigation of this matter, an undercover IRS agent posed as a client of GENTLE’s. During the operation, the agent provided GENTLE with a Form W-2 showing income from wages. Despite being provided no records to support any other deductions, GENTLE included false and fraudulent deductions for unreimbursed employee business expenses and gifts to charity on the tax return he prepared for the undercover agent. GENTLE’s inclusion of these false and fraudulent deductions caused the return to fraudulently claim a refund.
GENTLE also failed to report on his own tax returns nearly half of the $1 million in receipts that he received for his tax preparation services from 2010 through 2014. He spread the receipts across eight bank accounts at five banks. In addition, he failed to issue W-2’s or Forms 1099 to himself or his employees, further concealing from the IRS the amount of receipts he and his business received.
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GENTLE, 59, of Mount Vernon, New York, was found guilty on all 39 counts submitted to the jury, including one count of interfering with the administration of the internal revenue laws and 38 counts of aiding and assisting the preparation of false and fraudulent U.S. tax returns, each of which carries a maximum sentence of three years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
GENTLE’s sentencing is scheduled for October 25, 2016.
Mr. Bharara praised the IRS for their outstanding work in the investigation.
This matter is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jennifer Beidel, Margery Feinzig, and James McMahon are in charge of the case.
Mishawaka Man Sentenced to 87 Months for Hobbs Act RobberyRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Jamar Crawford, 22, of Mishawaka, Indiana was sentenced before Judge Jon E. DeGuilio for Hobbs Act Robbery and using a firearm in during a crime of violence.
Crawford was sentenced to 87 months’ imprisonment and 2 years of supervised release.
According to documents filed in this case, on August 29, 2015, Crawford and a co-defendant entered a liquor store in South Bend armed with a shotgun and robbed the store of cash. They then fled the business and were apprehended by South Bend Police Officers.
This case was prosecuted as a result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
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Mexican National Indicted for Illegally Re-Entering the United StatesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton has indicted Marcos Osorio Villalba for illegally re-entering the United States after having been previously deported.
According to United States Attorney Peter Smith, the Indictment charges a 38 year old Mexican national with unlawfully returning to the United States after having been deported to Mexico in 2014. Osorio Villalba was removed from the country after a conviction in federal court in Ohio for his involvement in a heroin conspiracy.
The investigation was conducted by the U.S. Department of Homeland Security/ Immigration and Customs Enforcement and Removal Operations. The case is being prosecuted by Assistant United States Attorney Sean A. Camoni.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Media Advisory: Press Conference on Wednesday at Daytona Beach Police DepartmentRead the Press Release
WHO:
United States Attorney A. Lee Bentley, III
ATF Assistant Special Agent in Charge Trevor A. Velinor
Daytona Beach Police Chief Michael Chitwood
State Attorney R.J. Larizza
WHAT:
Press conference to announce the unsealing of indictments and arrests of multiple individuals involved in firearms and drug trafficking.
WHEN:
Wednesday, July 27, 2016, 11:00 A.M. EST
WHERE:
Daytona Beach Police Department
129 Valor Boulevard (Second Floor)
Daytona Beach, Florida 32114
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license).
Media may begin arriving at 10:15 A.M.
Please RSVP to [email protected] by 5:00 p.m. on Tuesday, July 25, 2016.
Maryland man sentenced for drug distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – William Tillman, 50, of Annapolis, Maryland was sentenced to 21 months in prison for heroin distribution, United States Attorney William J. Ihlenfeld, II, announced.
Tillman admitted to distributing heroin in April 2014 in Berkeley County, WV. He pled guilty in April 2016 to one count of “Aiding and Abetting the Distribution of Heroin.”
West Virginia Assistant Attorney General and Special Assistant United States Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force investigated.
Chief U.S. District Judge Gina M. Groh presided.
Maquoketa Man Charged with Distributing Fentanyl AnalogueRead the Press Release
Joshua Manning, age 22, from Maquoketa, Iowa, has been charged with one count of distribution of furanyl fentanyl. The charge is contained in an Indictment unsealed on July 22, 2016, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about March 3, 2016, Manning distributed a substance called furanyl fentanyl. The Indictment alleges that furanyl fentanyl is an analogue of fentanyl, and that Manning knew that the substance was intended for human consumption.
If convicted, Manning faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and up to a lifetime of supervised release following any imprisonment.
Manning appeared on July 22, 2016, in federal court in Cedar Rapids and was held without bond. Manning’s next appearance for a status hearing is set for August 24, 2016.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the Dubuque Drug Task Force, Maquoketa Police Department, and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-01031-LTS.
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Manitowoc Man Sentenced to 12 years on Drug and Firearm ChargesRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on July 25, 2016, Steven R. Schenian, Jr. (age: 38) of Manitowoc, Wisconsin, appeared in federal court in Green Bay and was sentenced to 12 years in federal prison for his involvement in a conspiracy to distribute cocaine and carrying a firearm in furtherance of a drug trafficking offense.
In pronouncing sentence, Chief United States District Court Judge William C. Griesbach noted the “special danger to the community” inherent when drug traffickers possess firearms. The judge condemned Schenian Jr.’s involvement in several violent drug-related acts, including the beating of a drug associate whom he suspected of theft. He concluded that Schenian Jr. was deserving of a substantial prison sentence. Following his release from prison, Schenian Jr. will serve 10 years on federal supervised release.
The case was investigated by the Drug Enforcement Administration, the Manitowoc County Sheriff’s Office, and the Manitowoc Area MEG Unit. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Louisville, Woman Sentenced to Eight Years in Prison for Conspiracy to Sex Traffic A Louisville, Kentucky, MinorRead the Press Release
LOUISVILLE, Ky. – A Louisville, Kentucky, woman was sentenced today in United States District Court by District Judge David J. Hale to eight years in prison, followed by tens years of supervised release, for conspiracy to sex traffic a minor, announced U. S. Attorney John E. Kuhn, Jr.
Crystal Bradshaw, a/k/a Crystal Thurman, 42, pleaded guilty to the charge on March 16, 2016. Her co-defendant, Ralph Goodwin, was sentenced earlier this month, by Judge Hale, to ten years in prison for sex trafficking of the 15-year-old female, including soliciting the minor to engage in commercial sex acts and transporting the minor with the intent that the minor engage in prostitution.
According to court records, Bradshaw admitted that in June of 2015, she made contact with Goodwin through seekingarrangements.com, a “sugar daddy” website. They met shortly thereafter and established a relationship wherein Bradshaw would have sexual relations with Goodwin in exchange for money and other things of value.
On August 7, 2015, Bradshaw approached a 15-year-old female in a Louisville park. Bradshaw took the minor female to a Marriott Hotel in Louisville, where the minor engaged in sexual contact with Goodwin. From August 7, 2015, to August 9, 2015, Goodwin stayed at the hotel in Louisville with Bradshaw and the minor victim.
On August 9, 2015, the three left the hotel and Bradshaw received $600-$700 from Goodwin, but the minor was not paid. Goodwin drove the minor to his home in Clarksville, Tennessee. Eventually, the minor contacted a friend on Goodwin’s computer. The friend contacted the minor’s mother, which resulted in the Montgomery County, TN Sheriff’s Office discovering the minor at Goodwin’s Clarksville home. In Louisville, and in Tennessee, Goodwin provided the victim with things of value.
This case was prosecuted by Assistant United States Attorney Amanda Gregory and was investigated by the Federal Bureau of Investigation (FBI).
Little Rock Doctor Sentenced to Prison for Health Care FraudRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David Shepard, Assistant Special Agent in Charge for the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Special Agent in Charge CJ Porter of U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) announced today that Monday evening Dr. Robert Barrow, 63, of Little Rock, was sentenced to two years in federal prison for conspiring to commit health care fraud, bringing to a close a multi-year federal investigation that began because of an anonymous tip.
At the conclusion Monday’s hearing, U.S. District Court Judge J. Leon Holmes, citing the vulnerability of the healthcare system to abusive billing practices by providers and the need to deter other medical professionals, sentenced Dr. Barrow to 24 months’ imprisonment to be followed by three years of supervised release and ordered him to pay $734,936.52 in total restitution, along with a $100 special assessment.
"Those who defraud the healthcare industry do so at their peril," Thyer said. "Dr. Robert Barrow deceived his patients and their insurers, and now he is going to federal prison. His sentence ought to serve as a warning to anyone tempted to cheat the system. Rooting out those who do not heed this warning will continue to be a focus of the United States Attorney’s Office and its partners at the FBI and HHS-OIG."
Dr. Barrow and his wife, Angela Barrow, owned and operated a Little Rock medical clinic named "Your Doctor’s Office." From 2005 to 2012, he associated with a local massage therapist (Billy Marc Young), to whom Dr. Barrow referred patients and for whom Dr. Barrow billed services under his own provider number, as if they were performing physical therapy. During the scheme "Your Doctor’s Office" became a local insurer’s second-highest biller for physical therapy statewide, ahead of hospitals and dedicated rehab facilities. Although Dr. Barrow purported to supervise Young, he billed for Young’s services at times when Dr. Barrow and his wife were on vacation in places like Las Vegas, Hawaii, and London.
At his change of plea hearing on October 13, 2015, Dr. Barrow admitted that he was "willfully blind" to the illegal nature of his billing practices in relation to Young, that he had abused the trust of his patients and their health insurers, and he had billed millions of dollars for Young’s services.
"As a health care provider, Dr. Barrow chose to commit fraud instead of protecting Medicare and other health care programs," FBI ASAC Shepard said. "Dr. Barrow’s sentencing demonstrates our resolve to bring these actions to justice. We appreciate the efforts of the United States Attorney’s Office in the Eastern District to protect taxpayer dollars and ensure that perpetrators of these fraud schemes are held accountable."
The restitution award included over $32,000 to a group of 40 former patients who bore out-of-pocket expenses for Young’s services believing that they were receiving physical therapy. Dr. Barrow’s single largest victim, Arkansas Blue Cross Blue Shield (ABCBS), was awarded over $680,000 in restitution but agreed to subordinate its claim to those of former patients so that they would receive full compensation before ABCBS is repaid.
Dr. Barrow’s co-conspirator, Young, previously pled guilty in case number 4:14-CR-56 DPM to making false statements in connection with health care and was sentenced in December 2015 to serve one year and one day in federal prison.
This case began because of an anonymous tip to a fraud hotline. Patients are encouraged to be vigilant in the fight against health care fraud. Report any suspicious activity to the FBI (1-800-CALL-FBI), HHS-OIG (1-800-HHS-TIPS), and your insurance provider.
The FBI and HHS-OIG jointly investigated this matter over the course of several years. Assistant United States Attorneys Alex Morgan and Shannon Smith prosecuted the case for the United States.
Lebanese National Extradited from Malaysia to Face Charges in Wide-Ranging Counterfeit Currency Plot with Ties to Lebanon and IranRead the Press Release
Defendant Sold High-Quality Counterfeit U.S. Currency to Undercover Secret Service Agent Posing as Member of New York-Based Criminal Enterprise
On July 22, Louay Ibrahim Hussein had his initial appearance at the federal courthouse in Brooklyn, New York, before U.S. Magistrate Judge Lois Bloom. Hussein is charged in connection with his leadership role in a wide-ranging scheme to distribute large quantities of high-grade counterfeit U.S. currency believed to be produced with support from sponsors in Lebanon and Iran for sale and use in markets across the globe, including in the United States and Europe. Hussein, a Lebanese national, was arrested in Kuala Lumpur, Malaysia, in 2014, and arrived in the United States on Thursday, July 21, following extradition proceedings. Earlier today, Hussein was ordered detained by U.S. Magistrate Judge Robert M. Levy until he can satisfy the terms and conditions of a proposed substantial bond package.
The charges were announced by U.S. Attorney Robert L. Capers for the Eastern District of New York, Special Agent in Charge David E. Beach for the U.S. Secret Service’s New York Field Office and Assistant Director in Charge Diego G. Rodriguez for the Federal Bureau of Investigation’s New York Field Office (FBI).
As alleged in the complaint and related filings, the charges against the defendant arose from a long-term undercover investigation in which the defendant and his co-conspirators sold hundreds of thousands of dollars in counterfeit currency to an agent with the U.S. Secret Service who was posing as a member of a New York-based criminal enterprise. Over the course of several months in 2012, the defendant, through intermediaries located overseas, sold the agent nearly $150,000 in high-quality counterfeit $100 bills and nearly $150,000 in counterfeit Euro notes. In October 2013, the defendant attempted to make another sale to the agent in Cyprus of approximately $300,000 in counterfeit currency, again through intermediaries. In June 2014, the defendant and co-defendant Nazer Al-Shekh Mosa aka Mohammed Hasan Haidar, a Syrian national, sold the undercover agent approximately $170,000 in counterfeit currency in Kuala Lumpur, Malaysia. Hussein and Mosa were arrested in August 2014 in Malaysia, pursuant to provisional arrest requests from the United States, during an attempt to sell additional counterfeit currency to the undercover agent. Mosa waived extradition last year, pleaded guilty to conspiracy to distribute counterfeit currency on April 20, and is awaiting sentence. A U.S. - based co-conspirator, Mouafak Al Sabsabi, also was arrested in August 2014. Al Sabsabi pled guilty to conspiracy to distribute counterfeit currency and was sentenced principally to time served and a three year term of supervised release on May 31.
The investigation has revealed that Hussein and his co-defendants are members of a multinational criminal network engaged in the production and distribution of counterfeit U.S. currency. In conversations with the undercover agent and others, Hussein claimed to have access to as much as $800 million in high-quality counterfeit U.S. currency for sale to clients based in Iran and elsewhere, and offered to procure weapons, narcotics and counterfeit currency and to have them shipped through U.S. ports.
“The reliability of U.S. currency is a pillar of the global financial system. As alleged, counterfeiters such as the defendant and his co-conspirators exploited that reliability and threatened the stability it provides, all to serve their own greed,” said U.S. Attorney Capers. “This investigation sends the message around the world that counterfeiters, wherever located, can and will be brought to justice.”
U.S. Attorney Capers extended his grateful appreciation to the New York Field Offices of the U.S. Secret Service and the FBI, to the Justice Department’s Office of International Affairs and to the Royal Malaysian Police and Attorney General’s Chambers for their assistance in the investigation and in effecting the defendant’s extradition.
“This investigation highlights the immeasurable effectiveness of law enforcement partnerships in combatting fraud,” said Secret Service Special Agent in Charge Beach. “We will continue to work closely with our domestic and international partners to defeat criminal enterprises and protect the Nation’s financial infrastructure.”
“We are pleased that Louay Ibrahim Hussein was extradited and will now face the U.S. justice system for his role in a charged international counterfeit currency ring,” said Assistant Director in Charge Rodriguez. “As uncovered in a multi-year investigation with the U.S. Secret Service, we allege Hussein and his co-conspirators sold more than a half a million dollars of counterfeit U.S. currency with the help of sponsors in Lebanon and Iran. Additionally, Hussein claimed to have access to millions more. Counterfeit currency doesn’t just devalue authentic currency, it weakens markets and global economies.”
The charges in the complaint are merely allegations and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant U.S. Attorneys Samuel P. Nitze and J. Matthew Haggans are in charge of the prosecution.