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15 July 2016
Heroin Dealer Convicted by Jury of Sex Trafficking and Drug-Related OffensesRead the Press Release
Defendant Sold Heroin and Used Violence, Threats and Coercion to Compel Three Young Heroin-Addicted Women to Prostitute for His Profit in Wisconsin and Minnesota
Monta Groce, 30, of Sparta, Wisconsin, was convicted by a federal jury of three counts of sex trafficking by force, threats of force or coercion; one count of conspiracy to engage in interstate transportation for prostitution; one count of interstate transportation for prostitution; one count of maintaining a property for drug trafficking; one count of using a firearm in furtherance of drug trafficking and one count of witness retaliation. The verdict was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; U.S. Attorney John W. Vaudreuil of the Western District of Wisconsin and FBI Special Agent in Charge Robert J. Shields of the FBI’s Milwaukee Division.
After deliberating for 10 hours, the jury found the defendant guilty on all counts, with the exception of one count of attempted sex trafficking. Sentencing is scheduled for Oct. 19, 2016. The defendant faces a minimum sentence of 20 years in prison and a maximum sentence of life in prison.
“Groce supported the heroin epidemic impacting our country and exploited vulnerable young women by forcing them to engage in prostitution,” said Principal Deputy Assistant Attorney General Gupta. “I commend the trial team, investigators and victim advocates for their incredible work in this case. The Civil Rights Division will continue our vigorous efforts to work with our federal and state partners to hold human traffickers accountable and vindicate the rights of victims.”
“These cases are about horrible violence against women – Groce violently forced vulnerable victims into commercial sex,” said U.S. Attorney Vaudreuil. “The Department of Justice will not tolerate the exploitation of sex-trafficked women and children and we will continue to bring traffickers to justice on their behalf. These crimes, which took place in a small city, demonstrate that sex trafficking is not just a big city issue; it is happening in rural America too.”
“Human traffickers like Monta Groce, who prey on vulnerable women and children, will be aggressively investigated by the FBI from major cities to rural communities such as Sparta, Wisconsin, so the victims may be rescued and the perpetrators brought to justice,” said FBI Special Agent in Charge Shields.
Evidence presented during the four-day trial, including the testimony of the three victims identified in the indictment as Jane Does 1 through 3, revealed that the defendant sold heroin in Sparta between December 2012 and April 2013. During that time, he enticed the victims to begin prostituting for his profit by providing them with heroin and pretending to be in love with them. As their dependency on him increased, he turned to violence and threatened to cut off their heroin supply if they disobeyed him, withheld money earned from prostitution or otherwise refused to prostitute. Groce further kept some of the victims in perpetual debt by fronting them heroin and charging fines as punishment. He advertised the victims on Backpage.com and paid other addicts to drive them from Wisconsin to Minnesota to prostitute. On one occasion, he gave heroin to a male heroin-addict to sell and then accused the man of stealing some of the heroin when he returned after the sale fell through. Groce beat the man in front of two of the victims, pointed a gun at him and threatened to kill him unless he paid Groce for the purportedly missing drugs.
According to her testimony, Jane Doe 1 began using heroin when she was 15 and met the defendant when she was 19, around January 2013. She testified that Groce was initially kind to her, called her beautiful and offered her a place to stay when she had nowhere else to go. He started selling her heroin, and shortly after, he manipulated her emotions to convince her to start prostituting for him. Groce required her to prostitute before giving her heroin, and if she disobeyed him, he punished her by cutting her off, causing her to suffer intense and painful withdrawal symptoms. On one occasion, he burned her face with a cigarette because she withheld money from him. She escaped with the help of Jane Doe 2. Later on in April 2014, the defendant beat, punched and kicked her while calling her a snake and a snitch because she had previously cooperated with law enforcement. After the beating, she was covered in blood and bruises.
Jane Doe 2 testified that she met the defendant when she was 21, around December 2012, after her mother died from a drug overdose. Her mother’s death caused her to start using heroin and the defendant became her dealer. She helped Jane Doe 1 escape from the defendant and then was forced herself to prostitute because, as the defendant put it, she caused him to lose money. On one occasion, when Jane Doe 2 refused to answer a prostitution call, Groce told her that she had to do the call to get her heroin. When she told him that he was not giving her a choice, he pointed to his gun and responded that she always has a choice. On another occasion, the defendant beat Jane Doe 2, throwing her into a bathtub because she had sex with a prostitution customer in his bed, rather than the designated bed for prostitution, which was occupied by another victim and customer.
Jane Doe 3 testified that on one occasion she misplaced a debit card containing money belonging to Groce. In response, Groce ordered her to do a prostitution call to pay him back. Jane Doe 3 had to work that evening at her regular job and told Groce that she did not want to do the call. Groce insisted and told her that if she refused then he would cut off her entire supply of heroin. Jane Doe 3 testified concerning the debilitating symptoms of heroin withdrawal and stated that she did the call for Groce because she feared suffering those symptoms.
The case was investigated by FBI’s Milwaukee Division with assistance from the Sparta Police Department and Monroe County, Wisconsin, Joint Investigative Task Force. The case is being prosecuted by Assistant U.S. Attorney Julie S. Pfluger of the Western District of Wisconsin and Trial Attorney Shan Patel of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Guilty Plea Entered in Drug ConspiracyRead the Press Release
Timothy Edwards, 36, of New Memphis, Illinois, pled guilty on Monday, July 11, 2016, to a three-count Second Superseding Indictment charging him with Conspiracy to Distribute, and Possess with Intent to Distribute, Cocaine and Marihuana, Making a False Statement to a Federal Law Enforcement Officer, and Maintaining Drug-Involved Premises, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today. Edwards’ sentencing hearing has been set for October 21, 2016. Edwards faces penalties for Count 1 of no less than 5 years, no more than 40 years in federal prison, a $5,000,000 fine, or both, 4 years supervised release and a $100 special assessment; for Count 2 no more than 5 years in prison and/or a $250,000 fine, 3 years supervised release and a $100 special assessment; and Count 3 no more than 20 years in prison, a fine of no more than $500,000, or both, 3 years supervised release and a $100 special assessment.
The case was investigated by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI) and the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Former West Haven Housing Authority Director Sentenced to Prison for Receiving $1.5 Million in BribesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL SIWEK, 56, of North Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 48 months of imprisonment, followed by three years of supervised release, for receiving approximately $1.5 million in bribes while serving as the executive director of the West Haven Housing Authority, and for failing to pay taxes on the illegal income.
According to court documents and statements made in court, SIWEK was the executive director of the West Haven Housing Authority (“WHHA”), an agency that received federal funding. As parties of his duties, SIWEK had substantial discretion over awarding WHHA business and contracts. From approximately February 2007 through February 2012, SIWEK received approximately $1.5 million in payments from individuals in exchange for the awarding of business and contracts with the WHHA and entities that the WHHA controlled. SIWEK received these bribes through wire transfers and check payments to himself individually, and to Four Star Development Company LLC, a limited liability corporation that he controlled. SIWEK also received payments that were characterized as “loans,” but which were not subject to any terms or conditions typically associated with commercial loans.
In addition, SIWEK did not report these payments to the IRS, and filed false tax returns that underreported his income and tax liability.
Judge Shea ordered SIWEK to pay restitution in the amount of $1,503,096.91, and back taxes, penalties and interest totaling more than $363,000.
On September 4, 2014, SIWEK pleaded guilty to one count of conspiracy to commit bribery in connection with a program receiving federal funds, one count of bribery and one count of tax evasion.
This matter was investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Sarah Karwan.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Former St. Bernard Parish Deputy Pleads Guilty in Darren Sharper MatterRead the Press Release
U.S. Attorney Kenneth A. Polite and Orleans Parish District Attorney Leon A. Cannizzaro, Jr. announced that BRANDON LICCIARDI, age 31, of Mereaux, Louisiana, pleaded guilty today to conspiracy to distribute Schedule IV controlled substances with the intent to commit crimes of violence, including rape, before the Honorable Jane Triche Milazzo, United States District Court Judge, Eastern District of Louisiana.
Pursuant to a plea agreement, the parties stipulated that LICCIARDI would be sentenced to a term of imprisonment of 17 years, to be served concurrently and co-terminously with any sentence he may receive in the Criminal District Court for the Parish of Orleans. The statutory maximum punishment for the offense is twenty years imprisonment and a fine of $250,000. LICCIARDI’s plea today was part of a global resolution of the charges against him in federal court and the Criminal District Court for the Parish of Orleans. Sentencing is set for October 13, 2016.
LICCIARDI, a former St. Bernard Parish deputy sheriff admitted that he, along with former New Orleans Saint DARREB SHARPER and ERIK NUNEZ, a former waiter at Morton’s Steak House, distributed controlled substances to unsuspecting women and then had sexual relations with them while they were incapacitated.
Most recently, on July 11, 2016, co-defendant ERIC J. NUNEZ pleaded guilty to conspiracy to distribute controlled substances to victims without their knowledge, and with the intent to commit a crime of violent, to wit: sexual battery. Sentencing for NUNEZ is scheduled for October 13, 2016 at 9:30 am.
Previously, on March 22, 2016, co-defendant DARREN SHARPER pleaded guilty to Conspiracy to Distribute a Schedule IV Controlled Substance with the intent to commit rape and two counts of Distribution of a Schedule IV Controlled Substance with intent to commit rape; Sentencing for SHARPER is set for August 18, 2016 at 9:30 am.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter and thanked District Attorney Cannizzaro and the Orleans Parish District Attorney’s Office for their invaluable cooperation. Assistant United States Attorneys Michael E. McMahon, Theodore R. Carter, III, and Brandon Long are in charge of the prosecution.
Former Broker and Bookkeeper in Agape Ponzi Scheme Sentenced to 78 Months’ ImprisonmentRead the Press Release
Earlier today, at the United States District Court in Central Islip, New York, the Hon. Denis R. Hurley sentenced Diane Kaylor, a former broker and bookkeeper of Agape World, Inc. (Agape), to 78 months’ imprisonment and ordered that she pay approximately $179 million in restitution following her convictions on April 21, 2015, after a four-week jury trial, for securities fraud, conspiracy, mail fraud, and wire fraud. These convictions arose out of the Kaylor’s participation in a Ponzi scheme, in which she took $3.6 million in commission payouts for herself, which she spent on home improvements, luxury automobiles, exotic vacations, and other items.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service (USPIS).
“For more than three years, Diane Kaylor and her co-defendants sold lies to thousands of unsuspecting investors,” stated United States Attorney Capers. “Victim investors have been saddled with huge debts, some lost their life’s savings, their retirements have been delayed, and their children have been saddled with unforeseen student loan payments. Kaylor has now been held to account for her role in these crimes.” Mr. Capers expressed his grateful appreciation to the FBI and USPIS, the agencies that led the government’s investigation, and thanked the United States Securities and Exchange Commission for its assistance in the case.
Nicholas Cosmo founded Agape in August 2000, following 21 months in a federal prison for defrauding investors. Between October 2005 and January 2009, Kaylor played a critical role in the scheme, soliciting and obtaining tens of millions of dollars from investors. To induce investments and discourage withdrawals, she misled investors by assuring them that their money would only be used to fund specific, short-term secured bridge loans to commercial borrowers, or to make short-term loans to small businesses, promising to pay investors unusually high rates of returns and representing that investing in Agape carried little or no risk of loss. As a result of these inducements, Kaylor actually raised significantly more money than was needed for the loans, and for her efforts she made approximately $3.6 million.
Kaylor and her co-conspirators paid returns to Agape investors, not from any profits earned on investments, but rather from existing investors’ deposits or money paid by new investors. They then took more than $370 million – approximately $55 million of which came from investors that Kaylor or her sub-brokers convinced to invest in the Ponzi scheme – from approximately 5,000 investors. Of that $370 million, only $22 million actually went to fund bridge loans. Approximately $113 million of investors’ money was used to trade high risk futures and commodities, over $80 million of which was lost in these markets.
As the fraudulent scheme began to unravel, Kaylor continued to deceive investors about Agape’s financial health. On November 3, 2008, Kaylor learned that all of Agape’s 2007 bridge loans were in default or on extension, but did not disclose this information to existing or new investors. Instead, she continued to solicit money from investors. Ultimately, approximately 3,800 investors sustained actual losses totaling more than $150 million.
On October 14, 2011, Cosmo, following his guilty plea, was sentenced to a term of imprisonment of 25 years for his role in the scheme; on February 24, 2016, following his convictions after the same four-week jury trial as Kaylor, Jason Keryc, a broker at Agape, was sentenced to a term of imprisonment of nine years for his role in the scheme; and on April 22, 2016, following his guilty plea, Anthony Ciccone, who was also a broker at Agape, was sentenced to a term of imprisonment of seven years for his role in the scheme. In addition to the convictions of Cosmo, Kaylor, Keryc, and Ciccone, the government’s investigation led to the conviction of five other defendants in the scheme, who are awaiting sentencing before Judge Hurley.
The government’s case is being handled by the Office’s Long Island Criminal and Civil Sections. Assistant United States Attorneys Christopher C. Caffarone, Bradley T. King, Grace M. Cucchissi, and Vincent Lipari are in charge of the prosecution.
The Defendant:
DIANE KAYLOR
Age: 40
Bethpage, New YorkE.D.N.Y. Docket No. 12-CR-357 (S-4)(DRH)
Five Arrested on Federal Charges Related to Two Large New Haven-Area Fencing OperationsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that five men were arrested today on federal charges related to two separate, large-scale fencing operations in the New Haven area.
On June 23, 2016, a grand jury sitting in New Haven returned an indictment charging GEORGE J. CONNELLY, JR., 45, of New Haven, PAUL WILLIAM MUZYKA, 46, of North Haven, and WILLIAM REIDELL, 40, of Branford, with one count of conspiracy and multiple counts of interstate transportation of stolen property. On July 7, 2016, a grand jury sitting in Hartford returned an indictment charging ANDREW SACCO, 43, of East Haven and formerly of Durham, and MATTHEW HARWOOD, 42, of Stratford and formerly of Durham, with one count of conspiracy and multiple counts of interstate transportation of stolen property.
Both indictments were unsealed today, after CONNELLY, MUZYKA, REIDELL, SACCO, and HARWOOD were arrested. They each appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and all were released on $100,000 bonds.
The first indictment alleges that CONNELLY and MUZYKA operated a licensed secondhand store, Ace Amusements, located at 42 Kimberly Avenue in New Haven. CONNELLY and MUZYKA are alleged to have knowingly purchased stolen property from “boosters,” who typically were shoplifters with opioid addictions. The boosters stole the goods from retail stores such as Walmart, Home Depot and Kohl’s. CONNELLY and MUZYKA then resold the stolen goods at Ace Amusements and online at websites such as eBay and Amazon. CONNELLY and MUZYKA also sold property to resellers, including REIDELL, who then resold the property online using online websites.
The second indictment alleges that SACCO and HARWOOD knowingly purchased stolen property from boosters and then resold the property at online websites, including, eBay and Amazon, usually in the names of family members and associates. SACCO and HARWOOD are alleged to have rented cars for boosters for trips to steal items for them. SACCO and HARWOOD met with boosters to purchase the stolen property at various locations, including at MVP Auto, an auto body shop located at 23 Bernhard Road in North Haven.
The charge of interstate transport of stolen property carries a maximum term of imprisonment of 10 years, and the charge of conspiracy carries a maximum term of imprisonment of five years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Federal Bureau of Investigation, with assistance from the Connecticut State Police, United States Marshals Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut Department of Correction, Connecticut Chief State’s Attorney’s Office, and the New Haven, North Haven, Milford, West Haven, Wallingford, Hamden and Orange Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys David T. Huang and John T. Pierpont, Jr.
Final Members of Portsmouth-Based “Corna Sto Boys” Sentenced for Crack Cocaine ConspiracyRead the Press Release
NORFOLK, Va. – Charles Battle, aka C.J., 38, of Portsmouth, was sentenced to 240 months in prison followed by 10 years of supervised released for his role in a conspiracy to distribute crack cocaine. Battle was one of five members or affiliates of the “Corna Sto Boys,” a Portsmouth-based group of crack dealers sentenced to prison this year here in Norfolk. On Monday, Lacharles Hodges, aka Boogie, 29, also of Portsmouth, was sentenced to 151 months in prison for the same crime.
According to court documents, both men, along with other members of the “Corna Sto Boys,” sold crack cocaine across the street from the schoolyard of a Portsmouth elementary school. This was Battle’s third conviction for selling drugs near school property in Portsmouth.
Three other members or affiliates of the same group, Norman Stephenson, aka Bree; Jawanza Johnson, aka Wanza; and Samuel Gray, aka Pig, were sentenced earlier this year:
Name
Age, Hometown
Charges
Status
Charles Battle
38, Portsmouth
Conspiracy to Distribute and Possess with Intent to Distribute 280 Grams or More of Crack Cocaine
Pleaded guilty March 15. Sentenced to 240 months on July 15.
Lacharles Hodges
29, Portsmouth
Conspiracy to Distribute and Possess with Intent to Distribute 280 Grams or More of Crack Cocaine and 5 Kilograms or More of Cocaine
Pleaded guilty March 17. Sentenced to 151 months on July 11.
Norman Stephenson
35, Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute 280 Grams or More of Crack Cocaine
Pleaded guilty February 3. Sentenced to 264 months on June 16.
Jawanza Johnson
36, Portsmouth
Conspiracy to Distribute and Possess with Intent to Distribute 28 Grams or More of Crack Cocaine
Pleaded guilty March 22. Sentenced to 120 months on June 23.
Samuel Gray
36, Portsmouth
Conspiracy to Distribute and Possess with Intent to Distribute 280 Grams or More of Crack Cocaine
Pleaded guilty March 17. Sentenced to 120 months on June 16.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Office; and Tonya D. Chapman, Chief of the Portsmouth Police Department, made the announcement after Battle was sentenced by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorneys Andrew Bosse and Joseph E. DePadilla, and Special Assistant U.S. Attorney John F. Butler, prosecuted the cases.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 2:16cr3 (Battle), 2:16cr18 (Hodges), 2:16cr16 (Stephenson), 2:16cr5 (Johnson), and 2:16cr19 (Gray).
Federal Jury in New Mexico Finds Two Men Guilty of Cocaine and Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict today finding Jose Remberto Guzman-Dominguez, 33, and Miguel Angel Rodriguez-Flores, 47, guilty of narcotics trafficking charges after a five-day trial. U.S. Attorney Damon P. Martinez, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, New Mexico State Police Chief Pete N. Kassetas, and Deputy Chief Jimmy Glascock of the New Mexico Motor Transportation Police announced the verdict.
Guzman-Dominguez, a legal permanent resident from El Salvador who was residing in Las Vegas, Nev., and Rodriguez-Flores, of Hawthorne, Calif., were arrested on Nov. 14, 2015, on a criminal complaint after officers of the New Mexico Motor Transportation Police found approximately 117.15 pounds (53.14 kilograms) of narcotics in their commercial tractor-trailer during a routine inspection at the port of entry on Interstate 10 near Lordsburg, N.M. The two men subsequently were indicted on Feb. 17, 2016, on charges that they conspired to distribute cocaine and heroin and possessed cocaine and heroin with intent to distribute. According to the indictment, defendants committed the three offenses in Hidalgo County, N.M., on the evening of Nov. 13, 2014 and the early morning of Nov. 14, 2015.
Trial on the three-count indictment began July 11, 2016, and concluded this afternoon when the jury returned a verdict of guilty on all counts of the indictment. The evidence at trial established that late on Nov. 13, 2015, and into the early hours of Nov. 14, 2015, the defendants were traveling in a commercial tractor-trailer from Phoenix, Ariz., to Lordsburg. When they entered the port of entry on Interstate 10 in Hidalgo County, the New Mexico Motor Transportation Police stopped their commercial tractor-trailer to conduct a safety inspection. After identifying several safety violations, the inspector continued with a cargo inspection and found that the trailer was fully loaded with large containers of industrial cleaning solution. While inspecting the cargo, the inspector found four cardboard boxes that were different from the industrial cleaning solution containers. One of the boxes was open and contained several cellophane wrapped bundles. Because of Guzman-Dominguez’s nervous behavior and his interest in the contents of the four boxes, the inspector requested assistance from the New Mexico State Police. The officers opened one of the cellophane bundles and found that it contained white powder that tested positive for cocaine. The four boxes contained 51 bundles with a gross weight of 53.14 kilograms.
The jury learned that laboratory tests later performed on the contents of the 51 bundles determined that 46 of the packages contained an aggregate of 105.6 pounds (47.9 kilograms) of cocaine and five packages contained an aggregate of 11.55 pounds (5.24 kilograms) of heroin.
The jury returned its guilty verdict after deliberating approximately four-and-a-half hours.
At sentencing, Guzman-Dominguez and Rodriguez-Flores each face a statutory penalty of a mandatory minimum of ten years and a maximum of life in federal prison. Guzman-Dominguez will be deported after completing his prison sentence. Both remain in custody pending sentencing hearings, which have yet to be scheduled.
The Border Enforcement Security Taskforce of the Las Cruces office of Homeland Security Investigations, New Mexico State Police, and New Mexico Motor Transportation Police investigated this case. Assistant U.S. Attorneys Brock Taylor and Richard Williams of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
District Court Enters Permanent Injunction Against Minnesota Food Manufacturer and Company’s Managers to Prevent Distribution of Adulterated Food ProductsRead the Press Release
The U.S. District Court for the District of Minnesota entered a consent decree of permanent injunction against Kwong Tung Foods Inc. (Kwong Tung Foods) doing business as Canton Foods; the firm’s president and owner, Vieta C. Wang; and vice president, Juney H. Wang, to prevent the distribution of adulterated noodles and sprouts, the Department of Justice announced today.
The Department filed a complaint on July 14, in the U.S. District Court for Minnesota at the request of the U.S. Food and Drug Administration (FDA). The complaint alleged that Kwong Tung Foods violated the federal Food, Drug and Cosmetic Act by causing noodles and sprouts to be adulterated in that they have been prepared, packed and/or held under insanitary conditions whereby the food may have become contaminated with filth or have been rendered injurious to health. According to the complaint, the insanitary conditions included failure to exclude pests and rodents from the facility, failure to maintain equipment and failure to ensure adequate employee sanitation.
“Kwong Tung Foods was repeatedly warned about the insanitary conditions at its Minneapolis food facility,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work aggressively to protect consumers from adulterated food and enforce our nation’s food safety laws.”
In conjunction with the filing of the complaint, the defendants agreed to be bound by a permanent injunction. As part of the settlement, the defendants represented that they have ceased receiving, preparing, processing, packing, holding, or distributing any type of food at or from any location. Under the permanent injunction, if the defendants seek to resume such activity, they must take specific steps to improve the firm’s manufacturing practices, and then receive written approval from FDA.
According to the complaint, in October 2015, FDA inspected Kwong Tung Foods’ facility, located at 1840 E. 38th Street in Minneapolis, and observed numerous insanitary practices, including the defendants’ failure to take necessary precautions to protect against contamination and maintain buildings in good repair. Specifically, according to the complaint, FDA observed evidence of live and dead pests and rodents in production rooms, a black mold-like substance and debris on production equipment, inadequate employee sanitation practices, and potential cross-contamination with major allergens. In addition, FDA observed condensate dripping onto finished bean sprouts, according to the complaint.
FDA inspected Kwong Tung Foods’ facility twice in 2014. As alleged in the complaint, FDA also observed failures to exclude pests from the facility and to adequately maintain equipment and employee sanitation practices.
Under federal law, food processors are required to comply with current good manufacturing practices provided by FDA regulation. The complaint alleged that the defendants violated the law by causing food to become adulterated while it was held for sale after shipment of one or more of its components in interstate commerce.
The government is represented by Trial Attorney Alistair Reader of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Bahram Samie of the U.S. Attorney’s Office for the District of Minnesota, with the assistance of Associate Chief Counsel for Enforcement Jennifer Kang of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Minnesota, visit its website at http://www.justice.gov/usao-mn.
Department of Justice to Conduct After-Action Review of Police Response to Orlando Nightclub Mass ShootingRead the Press Release
The Department of Justice, Office of Community Oriented Policing Services (COPS Office) today announced it will conduct a comprehensive after-action assessment of the Orlando Police Department’s (OPD) response to the mass shooting that took place on June 12 at the Pulse nightclub in Orlando, Florida.
“I commend Orlando Police Chief John Mina for his leadership in asking for this assessment,” said COPS Office Director Ronald Davis. “The lessons learned from this independent, objective and critical review of such a high-profile incident will benefit not only the Orlando Police Department and its community; it will also serve to provide all law enforcement critical guidance and recommendations for responding to future such incidents.”
“Chief Mina has proven to be a tremendous leader of the Orlando Police Department,” said U.S. Attorney A. Lee Bentley, III of the Middle District of Florida. “His decision to seek an independent review of the law enforcement response to the Pulse nightclub shootings is another example of his effective leadership. The results of this review should help not only the Orlando Police Department, but also other law enforcement agencies forced to deal with terrorist attacks.”
Through its Critical Response Technical Assistance program, the COPS Office will bring in a technical assistance provider and use subject matter experts to assess OPD’s preparation and response to the mass shooting, strategies and tactics used during the incident, and how the department is managing the aftermath of the mass casualty event.
The Critical Response Technical Assistance program was designed to provide targeted technical assistance to law enforcement agencies dealing with high-profile events, major incidents or sensitive issues of varying need. The program has been used in a number of other cities, including Minneapolis, Minnesota; San Bernardino, California; Ferguson, Missouri; Tampa, Florida; and Pasco, Washington. Previous after-action assessments have provided valuable guidance on lessons learned and serve as an important tool to help the law enforcement profession advance and grow.
The COPS Office, headed by Director Ronald Davis, is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of more than 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance. For additional information about COPS, please visit www.cops.usdoj.gov.
Defendant Receives Lengthy Sentence for Cell Phone Insurance FraudRead the Press Release
ATLANTA - Laquitta S. Brackins has been sentenced to federal prison for conspiracy to commit mail and wire fraud by defrauding a cell phone insurance provider. Brackins, along with a co-conspirator, filed thousands of false insurance claims on cell phones that did not belong to them and received over $1.6 million worth of cell phones from those claims.
“Cell phone insurance fraud drives up costs for all cell phone consumers,” said U.S. Attorney John Horn. “These defendants submitted thousands of fraudulent claims in the hope they could profit before anyone noticed.”
According to U.S. Attorney Horn, the charges and other information presented in court: Brackins and co-conspirator Nicholas L. Johnson defrauded Asurion Protection Services, LLC, and its cellular service provider clients, by submitting fraudulent cell phone insurance claims. Together, they obtained over $1.6 million worth of cell phones.
As part of the conspiracy, Brackins recruited cell phone subscribers from the Atlanta area and also traveled out of state to find individuals willing to allow her to use their cell phone contracts in her scheme. The defendants also used false identification documents and forged cell phone bills to file fraudulent claims with Asurion. Under Asurion’s insurance program, subscribers receive replacement phones to replace lost or stolen phones covered by the insurance. Brackins was linked with over 3,600 fraudulent submissions and she received over 2,900 phones as a result. After the defendants received the fraudulent phones, they and others involved in the scheme sold the phones to electronic wholesalers in the Atlanta area. Once she was indicted, Brackins fled and lived under false names at various hotels. She continued the scheme, having fraudulently obtained phones sent to her at the hotels.
Laquitta S. Brackins, 35, of Atlanta, Georgia, was sentenced by U.S. District Judge Steve C. Jones to seven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,617,629. Brackins was convicted on these charges on April 19, 2016, after she pleaded guilty to conspiracy to commit mail and wire fraud, as well as to substantive mail and wire fraud counts.
Judge Jones previously sentenced Nicholas L. Johnson, 33, of Atlanta, Georgia, on March 29, 2016, to one year, nine months in prison to be followed by three years of supervised release, and he was ordered to pay restitution in the amount of $191,093. Johnson was convicted of these charges on January 4, 2016, after he pleaded guilty to conspiracy to commit mail and wire fraud, as well as to substantive mail and wire fraud counts.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Christopher J. Huber and Special Assistant United States Attorney Diane C. Schulman prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Court Shuts Down Alabama Tax Return PreparerRead the Press Release
Washington—According to a lawsuit the United States filed in April, a Birmingham, Alabama, tax return preparer continually and repeatedly prepared federal income tax returns that understated her clients’ liabilities or overstated their refunds. Now a federal court in Birmingham has permanently barred her from preparing tax returns for others and it has ordered her to give the United States a list of her customers since 2014.
Jessica Leverett aka Jessica Harris, owns and operates a number of different tax return preparation businesses in and around Birmingham, including Tax Money Now, Dynamic Tax Services, Dynamic Tax Solutions and Express Money Tax, the civil complaint alleged. Leverett’s businesses prepared returns that fabricate Schedule C businesses and business losses to offset their customers’ taxable income from other sources or to increase the customers’ Earned Income Tax Credit, according to the complaint. The complaint also alleged that Leverett’s businesses prepare returns that claim education credits that Leverett’s customers are not entitled to receive and that misreport self-employment income as household employee wages in order to avoid the self-employment tax.
The Internal Revenue Service (IRS) examined 264 returns prepared by Leverett’s businesses and found that 206 understated the customer’s tax due, the complaint alleges. Altogether, Leverett’s activities may have caused the United States to lose over $2.5 million in understated taxes and/or fraudulent refunds, according to the complaint. Leverett did not file a response challenging the government’s allegations.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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Complaint Unsealed Charging 19 Gang Members and Associates with Conspiracy to Possess with Intent to Distribute and Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
Oklahoma City, Oklahoma – A 16-month joint investigation has resulted in a criminal complaint unsealed yesterday afternoon charging 19 gang members and associates with conspiracy to possess and distribute methamphetamine and heroin, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
On Thursday, July 14, 2016, law enforcement officers from the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Bureau of Alcohol Tobacco Firearms and Explosives (ATF), Oklahoma City Police Department (OCPD), Oklahoma State Bureau of Narcotics and Dangerous Drugs (OBN), Internal Revenue Service Criminal Investigation (IRS), and the Oklahoma Department of Corrections (ODOC) executed multiple federal arrest warrants related to this investigation. The charged individuals are:
# Name Age Address1
Richard Joseph Coker
33
Oklahoma State Penitentiary
2
Richard Lee Potts
38
Oklahoma State Penitentiary
3
David Dean Cagle
34
Oklahoma State Penitentiary
4
Chad Nathen Hudson
36
Oklahoma State Penitentiary
5
Christopher Paul Brown
28
Oklahoma State Penitentiary
6
Gary Holden Schneider
29
OKC, OK
7
Angela Renee Harlan
38
Tulsa, OK
8
Robinson Rene Garcia-Aguirre
28
Oklahoma County Jail
9
Eyner Mora Esparza
23
Oklahoma County Jail
10
Tenesia Diane Rodriguez
36
OKC, OK
11
Aisha Bliss Donaldson
27
OKC, OK
12
Zane P. Yargee
22
Oklahoma County Jail
13
Daryl Lloyd Ivey
28
Oklahoma County Jail
14
Nika Deandre Davis
24
OKC, OK
15
Devon Alan Herron
23
OKC, OK
16
Margie Lee Barnhill
28
Newcastle, OK
17
Ricky Lynn Wolfe
37
Tulsa, OK
18
Amanda Heather Holland
43
Oklahoma County Jail
19
Jeremy Antowaine Taylor
34
Oklahoma County Jail
According to the criminal complaint affidavit, agents and task force officers conducted a joint investigation of the leadership of a gang that utilizes contraband cell phones within the prison and the cooperation of outside associates to operate a drug-trafficking operation. According to the complaint affidavit, a number of investigative techniques were used in this investigation, ranging from the use of cooperating defendants and sources, to controlled buys, consensually recorded telephone calls, court-authorized wire and electronic interceptions, and the execution of search warrants. It is alleged that these techniques consistently showed the existence of an extensive conspiracy to distribute large amounts of controlled substances across Oklahoma City and other parts of the state. It is alleged that more than 100 pounds of methamphetamine, firearms, and large amounts of U.S. currency have been seized during this investigation.
If convicted, the defendants each face a maximum penalty of life in federal prison.
This case is the result of a joint investigation by the FBI, DEA, ATF, OBN, OCPD, IRS, and the ODOC. The case is being prosecuted by Assistant U.S. Attorneys David McCrary and Kerry Blackburn.
The public is reminded that a criminal complaint is merely an accusation and that the defendants are presumed innocent unless proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
Cherry Hill Gang Member Sentenced to Almost 23 Years in Federal Prison for Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Asim Benns, a/k/a Seem, age 33, of Baltimore, today to 275 months in federal prison, followed by five years of supervise release, for conspiracy to participate in a racketeering enterprise in connection with his gang activities. Benns was a member of the UDH organization, as well as being a high-ranking member of the Black Guerilla Family gang, overseeing the “up the hill” area of Cherry Hill.
Also today, Judge Russell sentenced UDH gang members Donte Thornton, a/k/a Tay, age 30, of Baltimore to 15 years in federal prison, and James Scott, a/k/a Mook Day, age 24, of Essex, Maryland to 10 years in federal prison, each followed by five years of supervised release, for their participation in the racketeering conspiracy.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
From at least 2007 to 2013, the UDH organization operated in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” or “Down da Hill,” (DDH), and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the DDH section of Cherry Hill. The defendants admitted that as members of UDH they were part of a racketeering enterprise and protected their power, territory and profits through the use of violence, threats of violence, intimidation, robbery, and narcotics trafficking.
According to his plea agreement, Benns admitted that he planned and/or participated in the murders of two rival gang members, and two other shootings. Benns ran a heroin shop in the UDH area, as well as distributing other drugs. In July and August of 2011, Benns and other UDH members robbed two banks, stealing a total of $11,100, which he and the other robbers used to buy drugs that they could sell.
According to Thornton’s plea agreement, he participated in a bank robbery committed on July 19, 2011 with Benns and other UDH members. In addition, Thornton admitted his participation in a 2003 shooting and a 2007 murder of a rival gang member.
Scott, Thornton and Benns all admitted to their participation in the gang’s narcotics trafficking activities. Scott and Thornton admitted that they conspired with other UDH members to distribute at least one kilogram of heroin, five kilograms of powder cocaine, 280 grams of crack cocaine and marijuana. Benns admitted that he conspired with others to distribute between three and 10 kilograms of heroin, and between 840 grams and 2.8 kilograms of crack cocaine.
A total of 35 Cherry Hill gang members have pleaded guilty and 26 of those defendants, including the three sentenced today, have been sentenced to up to 35 years in prison.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Charlotte Jury Delivers Guilty Verdicts Against Leader of Healthcare Fraud Scheme and Co-ConspiratorRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte has convicted the leader and co-conspirator of a health care fraud scheme that fraudulently billed Medicaid for more than $10 million in false claims, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Cynthia Teresa Harlan, 48, of Charlotte, and Claude Bernard McCrae, 38, of Hamlet, N.C., were convicted of one count of health care fraud conspiracy following a four-day trial. Co-defendant Tyree Craig Jones, 38, of Charlotte, pleaded guilty to one count of health care fraud conspiracy on the fourth day of trial. Harlan was also convicted of three counts of making false statements relating to heath care matters, three counts of aggravated identity theft, and one count of obstruction of a health care fraud investigation. Chief U.S. District Judge Frank D. Whitney presided over the trial.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Rose in making today’s announcement.
According to evidence admitted at trial, witness testimony and other information contained in filed court documents:
Between October 2012 and August 2013, Harlan used a network of accomplices, including Jones and McCrae, to carry out an extensive health care fraud scheme involving the fraudulent submission of fake reimbursement claims to Medicaid for services that were never actually provided to beneficiaries. Harlan owned and operated Heartland Consulting and Marketing, Inc., a Charlotte-area company, purportedly specializing in the operation of mental health companies and Medicaid reimbursement. Harlan recruited a team of individuals that included mental health practitioners, note writers, patient recruiters, mental and behavioral health services providers and medical billers, and directed them to fabricate the necessary paperwork used to support the fraudulent claims billed to Medicaid. The fabricated paperwork included the names and beneficiary information of Medicaid recipients, fabricated intake packets, non-existent mental health diagnoses and made-up treatment plans and fake dates of service. It also included fake notes describing therapy services that never occurred. All of this information was organized in a manner to make it appear that the companies and clinicians involved in the scheme had provided legitimate therapy beneficiaries, contrary to the truth. The patient files were intended to deceive Medicaid auditors in case there was an inquiry about the accuracy of the fake claims.
Jones and McCrae were the co-owners of two outpatient mental and behavioral health services companies, Kings of Carolina Care 1, Inc. (Carolina Care 1), and Esteem Family Life Center, LLC (Esteem), both located in Rockingham, N.C. The two men partnered with Harlan and others to submit false reimbursement claims to Medicaid, claiming that the two entities provided mental and behavioral health services to the Medicaid recipients, when, in reality no services were provided at all. According to court records, Jones and McCrae, through Carolina Care 1, attempted to obtain from Medicaid over $5 million in fraudulent reimbursement claims and received over $1.3 million from Medicaid for the fraudulent claims.
Evidence at trial demonstrated that Harlan, Jones and McRae accomplished some of the fraud by misappropriating the Medicaid identification number of doctor. This doctor had never agreed to be part of Carolina Care 1, yet the group claimed that this doctor had provided over $2.3 million in therapy services to Medicaid recipients in just one year. Additionally, evidence presented at trial demonstrated that the false claims submitted by Carolina Care 1 indicated that Carolina Care 1 allegedly serviced over 500 clients in a single day.
Trial evidence also established that Harlan misused the names and Medicaid identification numbers of hundreds of Medicaid beneficiaries, including A.H., B.H. and M.H., in order to accomplish the scheme. According to the mothers of A.H. and M.H., who testified at trial, their children did not have mental health issues and never received any therapy services from any company. Harlan received over $400,000 for her role in the scheme. When Harlan became aware that she was being investigated for Medicaid fraud, Harlan directed some of her co-conspirators to destroy records as well as incriminating emails and text messages relevant to the scheme for the purpose of obstructing the investigation.
“Harlan and her extensive network of fraudsters and cheats repeatedly cheated North Carolina’s Medicaid program of money intended to pay for medical services of those in real need. The U.S. Attorney’s Office will continue to ferret out health care fraud and hold accountable those who cheat important government programs and steal taxpayers’ dollars,” said U.S. Attorney Rose.
“Medicaid fraud deprives much-needed services to poor and disabled North Carolinians and increases health care costs for everyone. The people trusted with the resources to care for others should not use that access to defraud the healthcare system. The FBI will work tirelessly to ensure federal funding is spent in an appropriate and legal manner,” said FBI’s Special Agent in Charge Strong.
To date, the following individuals have been prosecuted federally in connection with this health care fraud conspiracy:
-
Aliya Boss was previously sentenced to 44 months in prison, three years supervised release and was ordered to pay $ 1,135,302.27 in restitution. Boss filed reimbursement claims to Medicaid fraudulently claiming that she had provided mental health and behavioral health services to beneficiaries.
-
Alexander Bass and Torrey Darnell Moton were previously sentenced to 32 and 25 months in prison, respectively, three years of supervised release and were ordered to pay $370,372.37 as restitution.Bass and Moton owned United Rehabilitation Services (URS), in Erwin, N.C., and filed reimbursement claims to Medicaid fraudulently claiming that URS provided mental health and behavioral health services to beneficiaries.
-
Sakeenah Davis and Kino Williams were previously sentenced to 42 and 35 months in prison, respectively, three years supervised release and were ordered to pay $ 506,124.00 in restition. Davis and Williams owned New Choices Youth and Family Services, in Charlotte, North Carolina, and filed reimbursement claims to Medicaid fraudulently claiming that URS provided mental health and behavioral health services to beneficiaries.
-
Jacqueline Ford was previously sentenced to 21 months in prison and three years supervised release and was ordered to pay $442,679.92 restitution. Ford fabricated notes to support the false claims submitted by Carolina Care 1, URS and other companies.
-
Zaria Humphries was previously sentenced to 24 months in prison and three years supervised release and was ordered to pay $222,037 in restitution. Humphries submitted false claims through her company Life Impact Solutions.
-
Tanisha Melvin was sentenced to 33 months in prison, three years of supervised release and was ordered to pay $392,159.81 in restitution.Melvin was responsible for creating fake patient records for the conspiracy.
-
LaChanda Clotiel Parks, also responsible for generating fake patient paperwork, was sentenced to 28 months in prison followed by three years of supervised release, and was ordered to pay $352,565.69 in restitution for her role in the conspiracy.
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Dr. Wanda Webb was sentenced two years probation and ordered to pay $79,338.74 in restitution. Webb also submitted fraudulent claims through her company, Cornerstone Counseling and Consulting.
-
D’Marcus White, also responsible for generating fake patient paperwork, was previously sentenced to two years probation and ordered to pay $543,366.64 in restitution.
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Jason Adam Townsend is also facing health care fraud conspiracy and aggravated identity theft charges, for submitting fraudulent claims through his medical billing services company, Townhall Enterprises, LLC, located in Raeford, N.C.
McCrae is currently released on bond. Jones was remanded to federal custody on July 14, 2016, and Harlan remains in federal custody. A sentencing date for the defendants has not been set yet.
The health care fraud conspiracy charge carries a maximum prison term of 10 years. The maximum prison term for making false statements relating to health care matters is five years per count. The maximum penalty for obstruction of a health care fraud investigation offense carries a maximum prison term of five years and the aggravated identity theft charge carries a mandatory prison term of two years per count, consecutive to any other term of imprisonment.
The investigation was handled by the FBI with assistance from the North Carolina Medicaid Investigations Division. In making today’s announcement, U.S. Attorney Rose also thanked the Rockingham Police Department and the Richmond County Sheriff’s Office for their assistance at trial. The United States is being represented by Assistant U.S. Attorneys Kelli Ferry and Daniel Ryan, of the U.S. Attorney’s Office in Charlotte.
The investigation is the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
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Charleston Felon in Possession Sentenced to Seven Years in Prison in Federal CourtRead the Press Release
Contact Person: Emily Limehouse (843) 727-4381
Columbia, South Carolina---- Acting United States Attorney Beth Drake stated today that Junnie Lavon Williams, age 29, of Charleston, South Carolina was sentenced in federal court in Charleston, South Carolina, for Felon in Possession of Firearm and Ammunition in violation of 18 U.S.C. § 922(g)(1), facing a sentence of up to ten years in prison. Williams was previously convicted of possession with intent to distribute a controlled substance in 2004 and burglary in 2011, making him a prohibited person under the law. United States District Judge David C. Norton of Charleston sentenced Williams to seven years in prison. The term of imprisonment is to be followed by three years of supervised release. Williams pled guilty on January 15, 2016. Facts incorporated into the record at sentencing established that on January 31, 2015, a City of Charleston Police Department officer approached Williams because he fit the description of a person reportedly smoking marijuana on the sidewalk of North Market Street. Williams fled as the officer approached. Williams fell entering a construction site and attempted to discard an object from his front waist band. The officer detained Williams and discovered a black Smith and Wesson .380 caliber pistol loaded with six rounds of ammunition within arm's reach of Williams. Williams was also carrying a second loaded magazine in his pocket. The pistol's serial number had been filed off and black marker covered the scratch marks. Officers conducted an NCIC query and determined that Williams was a convicted felon prohibited from possessing a firearm. The conviction was a result of an investigation conducted by the City of Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys Nathan Williams and Emily Limehouse of the Charleston office prosecuted the case.
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Carole S. Rendon sworn in as U.S. Attorney for the Northern District of OhioRead the Press Release
Carole S. Rendon was sworn in as United States Attorney for the Northern District of Ohio this morning.
In that role, she is the chief federal law enforcement officer in Ohio’s northern 40 counties. The office is tasked with enforcing a wide range of criminal and civil statutes, including the prosecution of crimes including public corruption, civil rights, drug trafficking, fraud, human trafficking, firearms crimes and other violations.
“I am humbled by this honor,” Rendon said. “I look forward to continuing to work on our region’s most pressing challenges, including the opioid epidemic and police/community relations.”
U.S. District Judge Solomon Oliver delivered the oath to Rendon. A formal investiture ceremony will take place next month.
Rendon served from 2009 through 2016 as the First Assistant United States Attorney. In that role, she was responsible for the daily operation of the United States Attorney’s Office, including oversight of significant civil and criminal matters, litigation, strategic planning, community outreach, agency coordination, and office policies and procedures.
During that time, she was lead counsel on U.S. v. City of Cleveland, an exhaustive investigation of the Cleveland Division of Police which resulted in significant changes to areas including use of force, crisis intervention with the mentally ill, community engagement, bias-free policing, search and seizure, accountability, training, equipment and staffing. It is viewed as a national model for police reform.
She was also instrumental in developing the U.S. Attorney’s Task Force on Heroin and Opioids, which seeks to find comprehensive solutions to Northern Ohio’s heroin and opioid epidemic. She also was a driving force behind the Northeast Ohio Cyber Consortium, a cross-sector public-private partnership designed to reduce the region’s vulnerability to cyber attacks.
Rendon is a 1987 graduate of Northwestern University School of Law. She began her career as a law clerk to the Honorable Joel Flaum on the Seventh Circuit Court of Appeals. Carole then entered the Attorney General’s Honors Program in the Criminal Division of the Department of Justice and was assigned to the Organized Crime Strike Force Unit in Boston, Massachusetts, which later was merged into the United States Attorney’s Office.
In the Strike Force, she handled a series of investigations and prosecutions of corruption in the Boston Police Department and international Asian organized crime. In April 1994, Rendon became Chief of the Organized Crime Drug Enforcement Task Force, where she oversaw all of the major federal narcotics prosecutions.
In 1998, Rendon returned home to Cleveland and joined Messerman & Messerman. She later started the firm of Kushner & Rendon. In 2007, Carole seized the opportunity to join the women-owned litigation firm of Giffen & Kaminski. In each of those firms, Carole had both an active civil and criminal practice in federal and state court.
COPS Office to Conduct After-Action Review of Police Response to Orlando Nightclub Mass ShootingRead the Press Release
The Department of Justice, Office of Community Oriented Policing Services (COPS Office) today announced it will conduct a comprehensive after-action assessment of the Orlando Police Department’s (OPD) response to the mass shooting that took place on June 12 at the Pulse nightclub in Orlando, Florida.
Statement from U.S. Attorney Bentley:
“Chief Mina has proven to be a tremendous leader of the Orlando Police Department. His decision to seek an independent review of the law enforcement response to the Pulse nightclub shootings is another example of his effective leadership. The results of this review should help not only the Orlando Police Department, but also other law enforcement agencies forced to deal with terrorist attacks.”
Click this link to view the COPS Office press release in its entirety.
CIA Imposter Sentenced to Prison for FraudRead the Press Release
ALEXANDRIA, Va. – Wayne Shelby Simmons, 62, of Annapolis, Maryland, a former Fox News commentator who has falsely claimed he spent 27 years working for the Central Intelligence Agency (CIA), was sentenced today to 33 months in prison for major fraud against the government, wire fraud, and a firearms offense. Simmons was also ordered to serve three years of supervised release, to forfeit two firearms and $175,612 in criminal proceeds, and to pay restitution to his victims.
“Wayne Simmons is a fraud,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Simmons has no military or intelligence background, or any skills relevant to the positions he attained through his frauds. He is quite simply a criminal and a con man, and his fraud had the potential to endanger national security and put American lives at risk in Afghanistan. I want to thank the agents and prosecutors for their efforts on this complicated case.”
“With this sentencing, Simmons now faces the consequences of his criminal activity, deceit, and dishonesty,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “He fraudulently obtained positions with the U.S. government by lying about his previous employment and history, and further, defrauded a victim through a bogus real estate investment scheme. Simmons abused people's trust for his own selfish gain, and in doing so placed lives at risk and jeopardized national security.”
“Mr. Simmons never worked at CIA and we are pleased that justice was served in this case,” said Dean Boyd, Director of CIA’s Office of Public Affairs.
Simmons pleaded guilty on April 29. According to court documents, Simmons defrauded the government in 2008 when he obtained work as a team leader in the U.S. Army’s Human Terrain Systems program, in 2009 when he attempted to obtain work with the State Department’s Worldwide Protective Service, and again in 2010 when he was deployed to Afghanistan as a senior intelligence advisor on the International Security Assistance Force’s Counterinsurgency Advisory and Assistance Team (CAAT). To obtain these positions and the security clearances they required, Simmons made false statements about his financial, employment, and criminal history, including that he had worked for the CIA, that he had previously possessed a top secret security clearance, and that his prior criminal convictions related to his supposed clandestine work. In order to obtain the CAAT position, Simmons also lied about the nature of the work he had done just a year earlier with the Human Terrain Systems program, a program from which he had been forced to resign prior to deployment. The government’s investigation determined that Simmons was never associated with the CIA in any capacity and that during the years he claims to have worked for the agency, he was instead working in a variety of capacities and having various run-ins with the law. His work activities from 1973-2000 include: defensive back for the New Orleans Saints NFL team, nightclub doorman, manager at a rent-by-the-hour hot tub business, bookie, operator of a limousine business and an AIDS-testing business, mortgage broker, and employment at an anti-graffiti business. During that time, the defendant was also convicted of state firearms, assault, and gambling charges and federal firearms charges.
Simmons also defrauded an individual victim, identified as E.L., out of $125,000 in connection with a bogus real estate investment. As part of the fraud, Simmons sent E.L. promised monthly disbursements to make it appear as if her funds had been invested as promised and repeatedly lied to her about the whereabouts of her money in order to perpetuate the fraud. There was never any actual real estate investment project, and Simmons simply spent the funds.
Finally, when Simmons was arrested in this case, he was found to be in possession of two firearms, which he was prohibited from possessing on account of his prior felony convictions.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T. S. Ellis, III. Assistant U.S. Attorneys Paul J. Nathanson and James L. Trump prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1: 15-cr-293.
Brooklyn Man Sentenced for Conspiracy to Defraud U.S. Defense Contractors and ID Theft Fraud Scheme Targeting TD BankRead the Press Release
ALEXANDRIA, Va. – Solomon Oyesanya, 34, of Brooklyn, New York, was sentenced today to 60 months in prison for his participation in two fraud schemes arising out of the Eastern District of Virginia and the Eastern District of Pennsylvania and resulting in intended losses exceeding $1.5 million.
Specifically, Oyesanya was sentenced to 27 months in prison for defrauding U.S. defense contractors by conspiring to commit wire fraud, and a concurrent term of 60 months in prison for committing bank fraud and aggravated identity theft in connection with a scheme to defraud TD Bank. Oyesanya also was ordered to serve a total of five years on supervised release, forfeit $25,000 in criminal proceeds, and pay restitution to his victims.
U.S. Defense Contractor Scheme
On March 28, Oyesanya pleaded guilty to conspiring to commit wire fraud in connection with a scheme to defraud U.S. defense contractors. According to court documents, Oyesanya was part of a conspiracy, led by two Nigerian nationals, to fraudulently obtain computer hardware and products from contractors and vendors who were approved to do business with the U.S. Government, specifically the U.S. Department of Defense (U.S. DoD). To accomplish this scheme, members of the conspiracy created fake U.S. DoD and other U.S. government agency websites and email accounts (sometimes called “spoofed” websites and email accounts), and placed fraudulent government purchase orders with victim contractors and vendors for large quantities of computer hardware and similar products.
In furtherance of the spoofing conspiracy, Oyesanya, using false identification, picked up or attempted to pick up fraudulently ordered shipments from legitimate carriers to divert the shipments to co-conspirators in Nigeria.
According to court documents, the victimized defense contractors suffered actual losses attributable to Oyesanya in excess of $160,000 and intended losses attributable to Oyesanya in excess of $970,000.
TD Bank Scheme
On May 12, Oyesanya pleaded guilty to bank fraud and aggravated identity theft in connection with a scheme to defraud TD Bank. According to court documents, beginning no later than March 3, 2011, and continuing until at least November 2012, Oyesanya conspired with other persons to defraud TD Bank out of money by fraudulently accessing TD Bank customer accounts without the customer’s knowledge or consent to withdraw funds. Oyesanya and his co-conspirators gained access to the accounts of legitimate TD Bank customers by using means of legitimate customer identification, such as customers’ names, dates of birth, addresses, and social security numbers, as well as falsified drivers’ licenses. Oyesanya and his co-conspirators made deposits in the form of counterfeit checks, small amounts of cash, or a small denomination money order into existing TD Bank customer accounts in order to learn account information, or, if in the form of a fraudulent check, to withdraw funds before TD Bank discovered that the check was fraudulent. They also obtained online access to customer accounts as well as access to new ATM debit cards and PIN numbers in the names of existing TD Bank customers.
According to court documents, to cover up their scheme, Oyesanya and his co-conspirators often posed as the legitimate TD Bank customers and instructed TD Bank to change the customers’ phone numbers to prevent the customers from being notified of the withdrawal of funds from their accounts. Furthermore, Oyesanya and his co-conspirators used the fraudulently obtained ATM debit cards to withdraw cash at ATM machines and make purchases at merchants such as Target, Walmart, and the U.S. Postal Service.
As a result of this scheme, TD Bank suffered actual losses exceeding $500,000 and intended losses exceeding $760,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Jeffrey Thorpe, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Cyber Field Office; Kevin Perkins, Special Agent in Charge of the FBI’s Baltimore Field Office; and Brian A. Michael, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Philadelphia, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Michael Lowe of the U.S. Attorney’s Office for the Eastern District of Pennsylvania originally prosecuted this case. Assistant U.S. Attorneys Kellen S. Dwyer and Alexander P. Berrang and Special Assistant U.S. Attorney John D. Filamor continued the prosecution of this case in the Eastern District of Virginia.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-69 and Case No. 1:16-cr-90.
Beaufort Man Gets More than Five Years in Federal Prison for Possession of Twelve Stolen GunsRead the Press Release
Contact Person: Emily Limehouse (843) 727-4381
Columbia, South Carolina---- Acting United States Attorney Beth Drake stated that Malcolm Anthony Moore, age 23, of Beaufort, South Carolina was sentenced today in federal court in Charleston, South Carolina for Possession of Stolen Firearms in violation of 18 U.S.C. § 922(j). United States District Judge Richard M. Gergel of Charleston sentenced Moore to 63 months. Moore pled guilty on February 18, 2016. Facts incorporated into the record at the sentencing established that on three different occasions, search warrants were executed on Moore's residence, and officers seized numerous firearms. Moore admitted that he planned to traffic the firearms. In total, 31 firearms were involved, twelve of which were stolen. The conviction was the result of an investigation conducted by the Beaufort County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys Nathan Williams and Emily Limehouse of the Charleston office prosecuted the case.
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Bank Robber Sentenced to over 13 Years in Federal Prison for Seven Robberies Committed During One Week in 2013Read the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Keith Dunmore, age 47, of Washington, D.C., today to 162 months in federal prison, followed by three years of supervised release, for bank robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation-Baltimore Field Office; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Maryland Attorney General Brian E. Frosh.
According to his plea agreement and other court documents, from June 7 through June 20, 2014, Keith Dunmore, his brother Dallas Dunmore, Derrick Hart and Teddy McCain robbed or attempted to rob banks in Maryland and Virginia. In each robbery the conspirators passed notes to bank employees threatening to use violence and implying the possession of firearms unless the employees provided the money. During the robbery on June 20, 2013, which Keith Dunmore committed alone, he brandished a gun at the teller. The conspirators divided the proceeds of the bank robberies amongst themselves.
Keith and Dallas Dunmore generally entered the bank and presented the teller with a note demanding money. On one occasion the note stated that Dallas Dunmore had a gun, while on two other occasions Dallas Dunmore told the teller that he or another conspirator had a gun. McCain waited outside during each robbery. Hart also waited outside during the robberies, except on June 19, 2013, when Hart entered the bank with Keith and Dallas Dunmore. On June 20, 2013, Keith Dunmore entered a bank in Largo, Maryland, handed the bank teller a note that demanded money, and brandished a firearm. The teller gave $2,040 to Keith Dunmore, who fled the bank.
The total proceeds from the seven robberies in which Keith Dunmore participated are $10,477. The total proceeds from the five robberies in which Dallas Dunmore participated are $5,370; and the total proceeds from the six robberies in which Hart and McCain participated are $8,437.
Co-conspirators Dallas Eric Dunmore, age 49, of Washington, D.C., was sentenced to 163 months in prison; Derrick Hart, age 45, of District Heights, Maryland, was sentenced to 75 months in prison; and Teddy McCain, age 56, of Germantown, Maryland, was sentenced to six years in prison. Each was also ordered to pay restitution in the full amount of the loss to the banks.
United States Attorney Rod J. Rosenstein praised the FBI; Prince George’s and Montgomery County Police Departments; the Arlington, Fairfax, and Alexandria, Virginia Police Departments; and the Maryland Attorney General’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas Mitchell, who prosecuted the case.
Albuquerque Man Pleads Guilty to Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Daniel Jiron, 41, of Albuquerque, N.M., pled guilty today in federal court to heroin and methamphetamine trafficking charges. Under the terms of his plea agreement, Jiron will be sentenced within the range of 72 to 96 months in prison followed by five years of supervised release. The guilty plea was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division.
Jiron and 14 co-defendants were charged in Dec. 2013, with drug trafficking and firearms charges as the result of an 18-month investigation by DEA and the HIDTA Region I Narcotics Task Force into a drug trafficking organization allegedly led by David Reynolds, 33, of Albuquerque, N.M., that distributed large quantities of heroin in Bernalillo and Santa Fe Counties, N.M. The investigation was designated as part of the Organized Crime Drug Enforcement Task Forces (“OCDETF”) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Jiron was charged in a 15-count superseding indictment that also charged Reynolds and 13 others with conspiring to distribute heroin in Bernalillo and Santa Fe Counties from Sept. 2012 through Dec. 2013. It also charged Gene Solis, 21, with distributing heroin on three occasions in fall 2012; Humberto Hernandez, Jr., 39, with distributing methamphetamine on seven occasions between Feb. and Aug. 2013; and Jose Martinez-Encinias, 43, with possession of heroin and cocaine with intent to distribute in June 2013, and possession of firearms in furtherance of a drug trafficking crime. Reynolds also was charged with money laundering. The superseding indictment included forfeiture provisions seeking a money judgment of at least $1.3 million and property and assets obtained directly or indirectly from the commission of the crimes alleged in the indictment. A second superseding indictment that added additional charges subsequently was filed in June 2016.
In Aug. 2015, Jiron was charged in a separate case with a methamphetamine trafficking offense. The indictment in this second case charged Jiron with possessing methamphetamine with intent to distribute in Bernalillo County on Sept. 3, 2013.
During today’s proceedings, Jiron resolved the charges in both cases by entering a guilty plea to the heroin trafficking conspiracy in the first case and a felony information charging him with methamphetamine trafficking. In entering the guilty plea, Jiron admitted that between Sept. 28, 2012 and Dec. 12, 2013, he received heroin on consignment from a co-conspirator and redistributed the heroin in Albuquerque. Jiron also admitted possessing methamphetamine that was seized by law enforcement officials who executed a search warrant at his resident on Sept. 3, 2013. Jiron remains in federal custody pending a sentencing hearing, which has yet to be scheduled.
Two of Jiron’s co-defendants previously entered guilty pleas. Teddy Archuleta, 34, of Albuquerque, pled guilty to a felony information charging him with conspiracy to distribute heroin on Oct. 15, 2015. At sentencing, Archuleta faces a statutory maximum penalty of a mandatory minimum of five years and a maximum of 40 years in prison. Miguel Baca, 40, also of Albuquerque, pled guilty to a conspiracy charge on June 6, 2016. Baca faces a statutory penalty of a mandatory minimum of ten years and a maximum of life in prison when he is sentenced. Baca and Archuleta remain detained in federal custody pending sentencing hearings, which have yet to be scheduled.
The remaining 12 defendants have entered pleas of not guilty. If convicted on the drug trafficking charges in the superseding indictment, each defendant faces a maximum penalty of a mandatory minimum ten years to a maximum of life in prison. If convicted on the firearms charge, Martinez-Encinias also faces a mandatory five year prison sentence to be served consecutive to any prison sentence imposed on the drug trafficking charges. Reynolds faces up to ten years in prison if convicted on the money laundering charge. Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region I Narcotics Task Force, with assistance from the Bernalillo County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorneys Timothy S. Vasquez and Joel R. Meyers pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
The HIDTA Region I Narcotics Task Force is comprised of the Albuquerque Police Department, Albuquerque office of the DEA, Pojoaque Tribal Police Department, Rio Rancho Police Department, Sandoval County Sheriff’s Office and the Valencia County Sheriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
40 Individuals Charged with Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On July 12, 2016, a federal grand jury in the District of Puerto Rico returned an indictment against 40 defendants charged with conspiracy to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration and the Puerto Rico Police Department (PRPD), Carolina Strike Force Unit, are in charge of the investigation, with the collaboration of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the US Marshals.
The indictment alleges that beginning in 2009, the organization distributed crack, heroin, cocaine, and marihuana, at the Sábana Abajo Public Housing Project in Carolina and other areas nearby, all for significant financial gain and profit.
The forty defendants acted in different roles in order to further the goals of their organization, to wit: leaders, drug point owners, enforcers, managers, runners, sellers, and facilitators. Twenty-two defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime.
The defendants are: Roberto Rodríguez-Rivera, a.k.a. “Chova”; Chayanne Fernández-Garay, a.k.a “Cantante”; Carlos Clemente-Bultrón, a.k.a. “Tiki”; Luis Marcano-Oquendo, a.k.a. “Tito Escopeta”; Luis O. Rivera-Torres, a.k.a. “Cepillo”; Manuel Pérez-Calderón, a.k.a. “Chichón”; Jean Carlos Fernández-Garay, a.k.a. “Bebo”; Jonathan Fernández-Garay, a.k.a. “Gungle”; Edwin R. Andino-Acevedo, a.k.a. “Pitbul”; Rafael Tanco-Pizarro, a.k.a. “Rafi Tiniebla”; Juan A. Tanco-Báez, a.k.a. “Anthony”; Peter A. Rosario-Serrano; Yomar Clemente-Bultrón, a.k.a. “Búho”; Leandro A. Martínez-Vizcarrondo; Julio E. Núñez-Ortiz, a.k.a. “Piru”; Cynthia González-Landrau; Jacqueline Torres-Serrano; Wadys A. Vázquez-Guzmán, a.k.a. “Guadi”; José Ortiz-Cordero, a.k.a. “Trombo”; Ulises Rivera-Salamán; Jorge Rodríguez-Andino; José Cepeda-Martínez, a.k.a. “Zurdo”; José Loiz Calderón, a.k.a. “Chein”; Charlie Clemente-Andino, a.k.a. “Baby”; David Isaac Febus, a.k.a. “Durán”; Wendemar Andino-Acevedo, a.k.a. “Wen”; Julio Quiñones-Filomeno, a.k.a. “Heli”; David García-Pagán, a.k.a. “Davo”; Melvis I. García-Ramos, a.k.a. “Paciencia”; Yashira González-Álvarez; José Rafael Rivera-Díaz, a.k.a. “Joselito”; Richard Medina-Serrano, a.k.a. “Palomita”; Yariliz Fernández-Garay; Orangel López-Rosado; Javier Ulises Rivera-Salamán, a.k.a. “Tingo”; Ricardo Torres-Díaz, a.k.a. “Richi”; Luis E. Muñoz-Ayuso, a.k.a. “Panteón”; Kevin Velázquez-Rodríguez, aka “Pollo”; and Amaury J. Salamán-Morales.
The defendants and their co-conspirators routinely possessed, carried, brandished and used firearms to protect themselves and their drug trafficking organization, maintain control of their drug points, intimidate and retaliate against other drug trafficking organizations and expand their drug trafficking activities. Armed individuals provided security to the drug point at the housing project and got paid by the organization.
“This particular organization was very violent in nature and operated mostly in Carolina PR. As part of the investigation many weapons such as rifles, fully automatic handguns and regular handguns were seized from members of the organization,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue investigating and prosecuting these individuals who dedicate their lives to criminal activities.”
“The dismantlement of this Drug Trafficking Organization (DTO) is part of our agency's constant and arduous mission. We will continue intervening, disrupting and dismantling DTOs that detriment the quality of life of the people who live in Public Housing Projects, as well as the Puerto Rican society in general,” said Matt Donahue, DEA's Caribbean Division Special Agent in Charge.
Assistant U.S. Attorney Teresa Zapata-Valladares is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
14 July 2016
Zuni Pueblo Man Sentenced to More Than 20 Years for Second-Degree Murder ConvictionRead the Press Release
ALBUQUERQUE – Dusty Chavez, 23, a member and resident of Zuni Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to 248 months in prison followed by five years of supervised release for his conviction on a second-degree murder charge. Chavez’s co-defendant, Douglas Burt, 20, also a member and resident of Zuni Pueblo, was sentenced to 17 years in prison followed by five years of supervised release on July 12, 2016.
Chavez and Burt were arrested in Nov. 2014, on a criminal complaint charging them with murdering a man on Oct. 28, 2014, in the Zuni Indian Reservation in McKinley County, N.M. Chavez and Burt were subsequently indicted on murder charges on Nov. 19, 2014.
Chavez pled guilty to a felony information charging him with second-degree murder on Jan. 12, 2016. According to the plea agreement, Chavez and Burt instigated a fight with the victim during which Chavez threw the victim to the ground and then kicked and punched the victim. Burt also kicked the victim; Chavez hit the victim in the head with a rock; and Burt stabbed the victim in the chest. The autopsy report revealed that the victim died as a result of blunt force trauma to the head and stab wounds to the chest. Burt pled guilty to a felony information charging him with second-degree murder on Jan. 7, 2016.
This case was investigated by the Gallup office of the FBI and the Zuni Pueblo Tribal Police Department. Assistant U.S. Attorneys Elaine Y. Ramirez and Kyle T. Nayback prosecuted the case.
Watertown Man Sentenced for Illegally Possessing MachinegunsRead the Press Release
SYRACUSE, NEW YORK – Bruce Fowler, 60, of Watertown, New York, was sentenced by Senior U.S. District Judge Norman A. Mordue to a term of imprisonment of 1 year and 1 day to be followed by 3 years of supervised release for illegally possessing three (3) machinegun conversion devices, announced United States Attorney Richard S. Hartunian. The sentence followed his March 9, 2016 guilty plea.
It is illegal to possess fully automatic machine guns in the United States, and cannot legally be offered for sale. Realizing that, Fowler bought conversion devices from a foreign supplier and used them to convert a Glock handgun and an AR-15 rifle to fire as fully automatic. He also purchased two high capacity magazines for the Glock handgun. When confronted by U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agents about these purchases, Fowler initially denied that he had done so, then admitted to only the purchases known by ATF at the time and surrendered those devices to ATF while concealing that he had purchased yet another device. When confronted by ATF about that final conversion device, Fowler admitted making that purchase as well, but claimed that he had discarded it and other materials in a trash dumpster.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives-Syracuse Resident Office, and was prosecuted by Assistant U.S. Attorney Ransom P. Reynolds.
United States Files Lawsuit to Recover Monetary Damages Associated with 2013 Mountain Fire in San Bernardino National ForestRead the Press Release
LOS ANGELES – A federal lawsuit filed today seeks nearly $25 million in damages from the owner of a Mountain Center residence and the property’s caretakers for alleged negligence that led to the 2013 Mountain Fire, which burned for more than two weeks and scorched over 27,500 acres, more than half of which was in the San Bernardino National Forest.
The civil complaint alleges negligence and violations of California law as being the cause of the fire that started on July 15, 2013, and burned a large swath of the San Jacinto Mountains, for a time threatening the town of Idyllwild and forcing over 5,000 residents to evacuate. An investigation determined that the fire started when an electrical discharge inside of an improperly maintained electrical junction box “shot sparks and hot material out of the box and onto dry ground vegetation below,” according to the lawsuit.
The Mountain Fire started on property known as Gibraltar West that is owned by Tarek M. Al-Shawaf, who is the lead defendant in the lawsuit. The complaint also names as defendants James D. Nowlin and Donna L. Nowlin, who were the caretakers employed by Al-Shawaf.
The defendants had a duty “to properly inspect and maintain their electrical equipment, electrical wires, and electrical junction boxes to ensure that they were safe, properly secured, and clear from dangerous conditions,” the complaint alleges.
“Property owners and their agents have a responsibility to ensure that property under their control is maintained in a safe fashion,” said United States Attorney Eileen M. Decker. “In addition to endangering countless lives, including those of firefighters who battle these large-scale blazes, the failure to properly manage the property and the electrical equipment on the property in this case cost taxpayers approximately $24 million dollars.”
The United States Forest Service expended considerable resources to suppress the Mountain Fire, including deploying more than 3,000 firefighters, 250 fire engines, 20 helicopters and 10 airplanes. The complaint specifically alleges that the Forest Service spent more than $15 million to fight the fire, that the fire caused more than $9 million in damages to natural resources, and that more than $300,000 had to be spent to perform emergency rehabilitation. “The damages to the United States include, but are not limited to: mitigation, rehabilitation, and reforestation of burned areas; loss of and damage to timber, habitat, wildlife, watershed, earth, scenery, and environment; aesthetic values; loss of use and recreation; soil damage; and erosion,” according to the lawsuit.
The federal lawsuit comes after the Forest Service made demands that Al-Shawaf and the Nowlins pay for the costs and damages associated with the fire. The defendants have not paid any of the money demanded by the government.
While the lawsuit alleges that the Forest Services suffered losses of nearly $25 million, the defendants could also be ordered to pay intangible environmental damages for harm caused to the San Bernardino National Forest, as well as interest and penalties.
This matter was investigated by the United States Forest Service and the California Department of Forestry and Fire Prevention.
This case is being handled by Assistant United States Attorney Garrett Coyle of the Civil Division.
Two Charged with Conspiracy and Fraud for Ticket SchemeRead the Press Release
PITTSBURGH – Two Western Pennsylvania residents have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and wire fraud, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on June 21 and unsealed yesterday, named Jamie J. McNamara, 32, of Washington, Pa., and Michael F. Schoedel, 26, of Pittsburgh, Pa.
According to the indictment, from on or about March 1, 2014 to March 17, 2014, McNamara and Schoedel falsely represented that they had tickets to entertainment events to potential purchasers on Craigslist. They would then have potential purchasers wire money for these tickets, but McNamara and Schoedel did not provide any tickets.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tullett Prebon and ICAP Restructure Transaction after Justice Department Expresses Concerns about Interlocking DirectoratesRead the Press Release
The Department of Justice announced today that the restructuring of the $1.5 billion transaction between Tullett Prebon Group Ltd. (Tullett Prebon) and ICAP plc addresses the Department’s concerns that the transaction would violate Section 8 of the Clayton Act by creating an interlocking directorate. An interlocking directorate is where one person – or an agent of one person or company – sits on the board of directors of two competitors.
As originally structured, the transaction would have resulted in ICAP owning 19.9 percent of Tullett Prebon and having the right to nominate one member of Tullett Prebon’s board of directors. Given that ICAP and Tullett Prebon would continue to compete after the transaction, the department had serious concerns that ICAP’s ability to nominate a Tullett Prebon board member would create an interlocking directorate in violation of Section 8 of the Clayton Act. The revised agreement will provide that ICAP will not own any part of Tullett Prebon after the transaction and will have no right to nominate a member of Tullett Prebon’s board of directors.
“Robust competition depends on competitors being actually independent of each other – that’s what Section 8 requires,” said Principal Deputy Assistant Attorney General Renata Hesse of the department’s Antitrust Division. “As originally proposed, this deal would have violated that core principle – creating a cozy relationship among competitors.”
Section 8 of the Clayton Act was enacted to provide a bright line rule prohibiting interlocking directorates which could otherwise facilitate coordination among competitors. Section 8 serves a prophylactic purpose “to nip in the bud incipient violations of the antitrust laws by removing the opportunity or temptation to such violations through interlocking directorates,” according to United States v. Sears, Roebuck & Co., 111 F. Supp. 614, 616 (S.D.N.Y. 1953).
During the investigation, the division cooperated with the United Kingdom’s Competition and Markets Authority, the Australian Competition and Consumer Commission and the Competition Commission of Singapore.
Tullett Prebon, a publicly-held British corporation headquartered in London, United Kingdom, and operating in the United States, is a leading provider of voice, hybrid and purely electronic brokerage services across asset classes. Tullett Prebon reported 2015 annual revenues of $1.18 billion.
ICAP is also headquartered in London and operates in the United States. After the transaction, the company will be called NEX Group Ltd. and will focus on providing electronic trading platforms for numerous asset classes and associated market data and services. ICAP reported annual revenues of $1.78 billion for its fiscal year ending March 2016.
Troy Resident Sentenced for Marriage FraudRead the Press Release
ALBANY, NEW YORK – Mary Opoka, age 56, of Troy, New York, was sentenced today to 3 years of probation following a jury conviction for marriage fraud.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
The sentence was issued by Senior United States District Court Judge Thomas J. McAvoy and followed a one-week trial in November 2015. As part of the sentence, Opoka must also complete 150 hours of community service.
The evidence at trial established that in October 2011, Opoka, a U.S. citizen, married Gaurav Mehta, in Troy. At the time Gaurav Mehta was an alien unlawfully present in the United States. The fraudulent marriage was designed to enable Gaurav Mehta to stay in the United States as a spouse of a U.S citizen.
Opoka was tried and found guilty along with Gaurav Mehta, age 36, and Isha Mehta, also known as Isha Kamboj, also known as Isha Johnson, age 33. The Mehtas are citizens of India. Yesterday, Judge McAvoy sentenced each of them to 3 years of probation and payment of a $2,000 fine, following their jury convictions for marriage fraud and immigration fraud.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Troy Man Indicted for Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBANY, NEW YORK – Gregory L. Clark, age 26, of Troy, New York, was indicted yesterday for being a felon in possession of a firearm and ammunition.
The announcement was made by U.S. Attorney Richard S. Hartunian, Troy Police Chief John F. Tedesco, and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
Clark is charged with possessing a loaded Ruger .357 caliber revolver. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
If convicted, Clark faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Clark has been in custody since April 2, 2016. On that day, according to a criminal complaint, Troy Police officers responding to a report of a man with a gun found Clark hiding in a closet in an apartment in the Lansingburgh section of Troy. They also found the loaded Ruger revolver in the closet.
This case is being investigated by the Troy Police Department and ATF, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Transient with Multiple Felonies Charged with Unlawful Possession of RifleRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that a Malcolm Tanner, 52, of Burlington, Vermont has been charged by a criminal complaint with possessing a .22 caliber semi-automatic rifle after having been convicted of multiple felonies. Tanner appeared before United States Magistrate Judge John M. Conroy yesterday, and was detained pending a detention hearing on July 15, 2016.
According to the affidavit filed with the complaint, Burlington Police officers had numerous involvements with Tanner dating back to June 2016, after Burlington residents reported a disorderly man with a rifle. Special agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), through coordination with the New Hampshire Department of Public Safety, determined that Tanner had been convicted of four felonies in the State of New Hampshire. On July 13, 2016, ATF special agents observed Tanner on Riverside Avenue in Burlington, riding a bicycle with what appeared to be a rifle on his back. The ATF agents stopped Tanner to examine the rifle, and determined the weapon to be a Sears Roebuck and Co. .22 caliber semi-automatic rifle, loaded with seven rounds of ammunition in its magazine.
If convicted, Tanner faces a maximum of ten years of imprisonment and a $250,000 fine. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines.
The United States Attorney emphasizes that the charge in the complaint is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
United States Attorney Eric S. Miller commended the investigative efforts of ATF and the support received from the Burlington Police Department.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan Ophardt. Tanner is represented by the Office of the Federal Public Defender for the District of Vermont.
Three Members of Grant County Methamphetamine Trafficking Ring Plead Guilty to Federal ChargesRead the Press Release
ALBUQUERQUE – Three members of a Grant County methamphetamine trafficking ring, including the ringleader, pled guilty late yesterday afternoon to methamphetamine trafficking charges. The three were part of a group of 12 defendants who were indicted in April 2015, as the result of an investigation that began in March 2014, and targeted a drug trafficking organization led by Daniel Lee Jacquez, 34, of Silver City, N.M., that distributed methamphetamine in Grant County, N.M. Three other defendants previously entered guilty pleas in this case.
The 12 defendants were charged in a 34-count indictment with participating in a drug trafficking conspiracy and committing a series of substantive drug trafficking offenses and a firearms offense. The conspiracy count charged all 12 defendants with conspiring to distribute methamphetamine in Grant County from March 2014 through April 2015. Eight counts charged certain defendants with distributing or possessing with intent to distribute methamphetamine, 24 counts charge certain defendants with using communications devices (telephones) to facilitate drug trafficking crimes, and one charged a defendant with being a felon in possession of a firearm.
During yesterday’s proceedings, Jacquez pled guilty to a felony information charging him with participating in a methamphetamine trafficking conspiracy. In entering the guilty plea, Jacquez admitted that from March 2014 through April 2015, he and his co-defendants distributed five to 15 kilograms of methamphetamine in Grant County. Jacquez also admitted that law enforcement agents discovered numerous firearms and ammunition in his residence when they executed a search warrant on April 30, 2015. Under the terms of his plea agreement, the lead defendant, Jacquez will be sentenced to 108 months in prison followed by a term of supervised release to be determined by the court.
Gary Lee Romero, 31, of Santa Clara, N.M., also pled guilty yesterday to a felony information charging him with participating in a methamphetamine trafficking conspiracy, and admitted working with his co-defendants to distribute approximately 500 grams to 1.5 kilograms of methamphetamine in Silver City between March 2015 and April 2015. At sentencing, Romero faces a statutory minimum of five years and a maximum of 40 years in prison.
Freddy J. Lucero, 47, of Silver City, also pled guilty yesterday to a felony information charging him with a methamphetamine trafficking conspiracy. At sentencing, Lucero faces a maximum penalty of 20 years in federal prison.
Three other defendants previously have entered guilty pleas in this case. Bernice Holguin Miranda, 50, of Silver City, pled guilty on Sept. 16, 2015, and Lynette Medina, 42, of Silver City, pled guilty on Nov. 19, 2015, to conspiracy charges and to using communication devices to facilitate a drug trafficking crime. At sentencing, Miranda and Medina each face a statutory minimum of five years and a maximum of 40 years in prison. Judah Grande Mondello, 31, of Arenas Valley, N.M., pled guilty on May 25, 2016, to a conspiracy charge, two counts of distributing methamphetamine, and to using a communication device to facilitate a drug trafficking crime. At sentencing, Mondello faces a statutory minimum of ten years and a maximum of life in federal prison.
Sentencing hearings for the six defendants who have entered guilty plea have yet to be scheduled.
The remaining six defendants have entered not guilty pleas to the indictment and are pending trial. Charges in indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The case was investigated by the Las Cruces offices of the DEA, HSI and FBI with assistance from the U.S. Marshals Service and the New Mexico State Police. Assistant U.S. Attorney Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office is prosecuting this case.
The investigation leading to the filing of charges in this case was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Texas Felon Sentenced to Ten Years for Unlawfully Possessing Firearms and Ammunition in New MexicoRead the Press Release
ALBUQUERQUE – Dylan Henry Ritter, 36, of Gardendale, Texas, was sentenced today in federal court in Albuquerque, N.M., to 120 months in prison followed by three years of supervised release for violating the federal firearms laws. The sentence was announced by U.S. Attorney Damon P. Martinez, U.S. Marshal Conrad E. Candelaria, and Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Ritter was arrested on Oct. 7, 2014, on a criminal complaint charging him with being a felon in possession of firearms and ammunition on Sept. 19, 2014, in Bernalillo County, N.M. According to the complaint, Ritter was traveling through New Mexico after absconding from the jurisdiction of a Texas state court to avoid a sentencing hearing when he was arrested by the U.S. Marshals Service. Deputy U.S. Marshals seized numerous firearms and rounds of ammunition when they searched Ritter’s hotel room and travel trailer following his arrest.
Ritter was indicted on Nov. 5, 2014, and charged with being a felon in possession of firearms and ammunition. According to the indictment, Ritter was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses including first degree burglary, attempted robbery, attempted theft by receiving stolen property, aggravated assault, felon in possession of firearm, possession of a dangerous weapon, burglary and attempted theft of a rental vehicle. Ritter pled guilty to the indictment on April 8, 2016, without the benefit of a plea agreement.
This case was investigated by the Albuquerque offices of the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Presiliano Torrez prosecuted the case.
Ten Alleged Members of Sunland Park Heroin Trafficking Ring Facing Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Ten individuals are facing heroin trafficking charges as the result of a DEA-led investigation targeting a heroin trafficking ring operating out of Sunland Park, N.M. The eight-month investigation concluded this morning after nine of the ten defendants had been arrested. U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, and Chief Jaime Reyes of the Sunland Park Police Department announced the results of the investigation.
The investigation targeted a heroin trafficking organization allegedly led by Raymundo Muñoz, 67, of Sunland Park, N.M., that allegedly obtained its heroin from Juan Francisco Rivera, 60, of El Paso, Tex. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
In announcing the charges, U.S. Attorney Damon P. Martinez said, “At a time when communities throughout New Mexico are suffering the devastating impact of a heroin and opioid epidemic that is ravaging our nation, the law enforcement community has to prioritize targeting drug trafficking organizations that are feeding this epidemic. As part of the New Mexico HOPE Initiative, DEA has answered the call and is working with law enforcement agencies throughout the state to dismantle these drug trafficking organizations. The U.S. Attorney’s Office is doing its part by aggressively prosecuting these organizations.”
“Last year over 44,000 people died in the United States as a result of a drug overdose, many of those as a result of heroin and opioid abuse,” said DEA Special Agent in Charge Will R. Glaspy. “The DEA and our law enforcement partners are committed to targeting those criminal organizations that are smuggling and distributing this poison and thus fueling this national epidemic.”
“The charges announced today are the result of great teamwork between the Sunland Police Department, DEA, the U.S. Attorney’s Office and several other agencies,” said Chief Jaime Reyes of the Sunland Park Police Department. “I am proud of the work that the men and women of the Sunland Police Department do every day to make our community a safer place for families to live and thrive.”
The ten alleged members of the heroin trafficking ring are charged in a 30-count indictment with participation in a heroin trafficking conspiracy and a series of substantive heroin trafficking offenses. The conspiracy charge alleges that all ten defendants conspired to distribute heroin in Doña Ana County and elsewhere between May 8, 2016 and July 12, 2016. It also includes 23 counts charging certain defendants with distributing heroin or possessing heroin with intent to distribute and six counts charging certain defendants with using communications devices (telephones) to facilitate heroin trafficking crimes.
According to the indictment, Rivera routinely supplied Muñoz with heroin, in quantities ranging from two to nine ounces, which was smuggled by couriers into the United States across the international border in El Paso. The indictment alleges that Muñoz took the heroin to his Sunland Park residence where he distributed the drugs to others. Members of the conspiracy allegedly used telephones to negotiate their heroin deals, arrange for heroin deliveries, and pay for the heroin.
Three of the defendants charged in the indictment, Muñoz, Rivera and Blanca Elisa Tovar, 41, of El Paso, were arrested on July 11, 2016, on a criminal complaint charging them with participating in a heroin trafficking conspiracy. The complaint alleges that the DEA arrested the trio after Tovar crossed the international border into El Paso and was driven by Rivera to a meeting with Muñoz. According to the criminal complaint, DEA seized 7.2 ounces of heroin from the vehicle in which Rivera and Tovar were traveling and a large amount of cash from Muñoz. Thereafter the DEA executed a search warrant at Muñoz’s residence in Sunland Park and seized another five ounces of heroin, $45,000 in cash and a firearm. Muñoz, Rivera and Tovar made their initial appearances on the criminal complaint in federal court in Las Cruces on July 13, 2016, and remain in federal custody pending preliminary hearings and detention hearings scheduled for July 18, 2016.
This morning, six more of the defendants were arrested on the charges in the indictment during an early morning arrest operation. The nine defendants who have been arrested will make their initial appearances on the indictment in federal court in Las Cruces on July 15, 2016. One defendant has yet to be arrested and is considered a fugitive.
During the course of the investigation, DEA agents and task force officers seized approximately a pound of heroin, more than $53,000 in cash and three firearms. These seizures include the heroin, cash and firearm seized on July 11, 2016.
The Las Cruces office of the DEA and Sunland Police Department investigated these cases with assistance from the El Paso office of the FBI, the U.S. Border Patrol, and the Gang Unit of the El Paso Police Department. In addition, the U.S. Marshals Service and the Doña Ana County Sheriff’s Office participated in today’s law enforcement operation. Assistant U.S. Attorneys Dustin C. Segovia and Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office are prosecuting these cases as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Indictment in United States v. Muñoz, et al., 16-CR-3043-RB
Summary of the Charges
Count 1 of the Indictment charges all ten defendants with participating in a conspiracy to distribute heroin. The defendants face the following statutory maximum penalties if convicted on this count: Muñoz and Rivera each face imprisonment for not less than ten years or more than life and a $10,000,000.00 fine; Sanchez and Delgadillo each face imprisonment for not less than five years or more than 40 years and a $5,000,000.00 fine; and the remaining defendants each face imprisonment for up to 20 years and a fine of up to $1,000,000.00.
Counts 2, 6, 17-18 and 22-23 charge certain defendants with using communications devices (telephones) to facilitate drug trafficking crimes. The statutory maximum penalty for a conviction on each of these counts is imprisonment for not more than four years and a $250,000.00 fine.
Counts 3, 5, 8, 10, 12-13, 19, 21, 24 and 26-30 charge certain defendants with possessing 100 grams and more of heroin with intent to distribute. The statutory maximum penalty for a conviction on each of these counts is imprisonment for a mandatory minimum five years and a maximum of 40 years and a $5,000,000.00 fine.
Counts 4, 7, 9, 11, 14-16, 20 and 25 charge certain defendants with distributing heroin or possessing heroin with intent to distribute. The statutory maximum penalty for a conviction on each of these counts is imprisonment for not more than 20 years and a $1,000,000.00 fine.
Charges Against Defendants
Raymundo Muñoz, 47, of Sunland Park, N.M., is charged in Counts 1, 3-21 and 24-30 of the indictment. Muñoz was arrested on July 11, 2016.
Juan Francisco Rivera, 60, of El Paso, Tex., is charged in Counts 1, 3, 5, 8, 10, 12-16, 19, 21 and 24-30 of the indictment. Rivera was arrested on July 11, 2016.
Eleodoro Sanchez, 61, of Canutillo, Tex., is charged in Counts 1, 4, 9 and 11 of the indictment. Sanchez was arrested today.
Salvador Delgadillo, 37, of El Paso, Tex., is charged in Count 1 of the indictment. Delgadillo was arrested today.
Carlos Diaz, 36, of El Paso, Tex., is charged in Count 1 of the indictment. Diaz was arrested today.
Morhiama Abigail Avila, 28, a U.S. citizen who resides in Juarez, Chihuahua, Mexico, is charged in Counts 1, 3, 5, 8, 10, 12 and 13 of the indictment. Avila has yet to be arrested and is considered a fugitive. A photograph of Avila is attached to this press release. Individuals with information about Avila’s whereabouts are asked to contact the DEA at (915) 892-4613.
Sandra Francis Guzman, 52, of El Paso, Tex., is charged in Counts 1, 14-16, 19, 21 and 24-26 of the indictment. Guzman was arrested today.
Blanca Elisa Tovar, 41 of El Paso, Tex., is charged in Counts 1 and 27-30 of the indictment. Tovar was arrested on July 11, 2016.
Alberto Lozano-Morales, 43, of Sunland Park, N.M., is charged in Counts 1, 2, 6, 7 and 18 of the indictment. Lozano-Morales was arrested today.
Armando Daniel Marquez, 53, Sunland Park, N.M., is charged in Counts 1, 18-19 and 22-23 of the indictment. Marquez was arrested today.
Criminal Complaint United States v. Muñoz, et al., 16-MJ-2891-LAM
The criminal complaint charges Muñoz, Rivera and Tovar with participating in a heroin trafficking conspiracy on July 11, 2016. If convicted, each defendant faces a statutory maximum penalty of imprisonment for a mandatory minimum five years and a maximum of 40 years and a $5,000,000 fine.
Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
Munoz Complaint Munoz Indictment
Tahlequah Woman Sentenced to 48 Months Probation for Use of Communication Device in Furtherance of Drug TraffickingRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that BRITTANI M. ROSS, age 26, of Tahlequah, Oklahoma, was sentenced to 4 years probation for USE OF A COMMUNICATION DEVICE IN FURTHERANCE OF DRUG TRAFFICKING, in violation of Title 21, United States Code, Section 843(b).
The charges arose from an investigation by the Tulsa County Sheriff’s Department, Tahlequah Police Department and the Drug Enforcement Administration.
The Information alleged that on or about April 1, 2015, within the Eastern District of Oklahoma, the defendant, BRITTANI M. ROSS, knowingly, intentionally, and unlawfully used a communication facility, that is: a telephone (cellular or otherwise) in committing, causing, and facilitating acts constituting a felony under Title 21, United States Code, Section 846, in that the Defendant used a telephone to discuss various matters concerning Drug Conspiracy.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.
Assistant United States Attorney Shannon Henson represented the United States.
Sun Valley, California, Man Pleads Guilty to Firearm Possession, Aggravated Identity TheftRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that GRIFFIN MICHAEL SKYLER TAYLOR, age 30, of Sun Valley, California, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and AGGRAVATED IDENTITY THEFT, in violation of Title 18, United States Code, Sections 1028A(1).
The charges arose from an investigation by the Sallisaw Police Department and the United States Secret Service.
The Information alleged that on or about April 14, 2016, within the Eastern District of Oklahoma, the defendant having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The Information further alleges that on or about March 16, 2016, within the Eastern District of Oklahoma, the defendant did knowingly possess, without lawful authority, a means of identification of another person.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment, up to a $250,000 fine or both. However, if the Armed Career Criminal Act applies, the range of punishment will be not less than 15 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Dean Burris represented the United States.
Stevenson, Alabama, Police Chief Convicted of Civil Rights Offenses for Assaulting and Failing to Protect ArresteeRead the Press Release
The Justice Department announced today that a federal jury convicted the Chief of Police of Stevenson, Alabama, Daniel Winters, 56, of two counts of deprivation of civil rights under color of law: one count for beating an arrestee, identified as D.F., and one count for failing to protect the victim from harm.
According to evidence presented at trial, on March 22, 2015, Winters and a civilian friend went to a residence to investigate suspicions that property had been stolen from the friend’s business and was located at the residence. Upon arrival, Winters and his friend entered the residence without a search warrant and encountered the victim, D.F. Winters and his friend then began to beat D.F. The beating moved outside where Winters and his friend continued to strike and kick the victim in front of the residence. Over the course of approximately five minutes, Winters not only participated in the beating, but stood by watching his friend beat D.F. and did nothing to stop it. A passing motorist called 911 to report the beating. D.F. was left bloody with wounds to his face, chest and back and was taken to the jail at the Stevenson Police Department. While at the jail, D.F. began to spit up blood. A jailor requested Winters’ permission to call an ambulance, but Winters refused the request. Eventually, the jailor received permission from another supervisor and D.F. was transported to a hospital where he received medical attention.
“This police chief abused his authority, broke the law and violated the public trust,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “When law enforcement leaders engage in egregious, unlawful conduct – as this defendant did here – they do a disservice to the thousands of hard-working officers who perform their difficult, demanding jobs each day with integrity and distinction.”
“Civil rights enforcement is a priority of our office and the trial team on this case did an excellent job of putting the evidence together and presenting it to the jury,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama.
Winters faces a statutory maximum sentence of 20 years in prison for the civil rights charges. Sentencing is scheduled for Oct. 27, 2016, before U.S. District Judge Madeline H. Haikala of the Northern District of Alabama.
This case is being investigated by the FBI and Alabama’s State Bureau of Investigation. The matter is being prosecuted by Deputy Chief Laura Hodge of the Northern District of Alabama and Trial Attorney Samantha Trepel of the Civil Rights Division’s Criminal Section.
South Bend Man Sentenced to 180 Months for Drug TraffickingRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Roman Olvera, 29, of Elkhart, Indiana was sentenced before Judge Jon E. DeGuilio for distribution of controlled substances and carrying a firearm during and in relation to a drug trafficking crime.
Olvera was sentenced to 180 months’ imprisonment and 4 years of supervised release.
According to documents filed in this case, on September 25, 2015, Olvera distributed heroin and marijuana to another person. Olvera admitted to carrying a firearm to protect himself from being robbed of drugs or proceeds during the transaction. When arrested on February 14, 2016, Olvera had approximately 114 grams of methamphetamine in his possession.
This case was prosecuted as a result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Jesse M. Barrett.
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Sentencings for July 13 - 14, 2016Read the Press Release
Joshua Aaron Stevens, 35, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 14, 2016, for sexual exploitation of a child. Stevens was arrested in Cheyenne, Wyoming. He received 264 months imprisonment, to be followed by a life-term of supervised release, and was ordered to pay a $500.00 fine and $100.00 special assessment. Restitution will be determined at a later date. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force, the Office of Homeland Security and the Federal Bureau of Investigation.
Joe Cruz Proo, 46, of, Riverton, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on July 13, 2016, for possession with intent to distribute methamphetamine and for possession of a firearm in furtherance of a drug trafficking crime. Proo was arrested in Riverton, Wyoming. He received 81 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment and restitution in the amount of $500.00. This case was investigated by the Riverton Police Department, the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Schoharie Man Sentenced to 18 Months for Defrauding FEMARead the Press Release
ALBANY, NEW YORK – Scott A. Clapper, Jr., age 31, of Schoharie, New York, was sentenced today to 18 months in prison for making false statements and submitting false documents in connection with government benefits he received following Hurricane Irene.
The announcement was made by United States Attorney Richard S. Hartunian and Giovanni Tiano, Special Agent in Charge of the Department of Homeland Security’s Office of Inspector General, Detroit Field Office.
Senior U.S. District Judge Thomas J. McAvoy also ordered Clapper to serve 3 years of supervised release, to begin upon Clapper’s release from prison; to pay $16,426 in restitution to the Federal Emergency Management Agency (FEMA); and to pay a $1,300 special assessment to the Court. Clapper will serve the 18-month prison sentence concurrently with state prison sentences he is currently serving for burglary convictions unrelated to his defrauding of FEMA. He becomes eligible for state parole in March 2019.
As part of his guilty plea in January, Clapper admitted to making false statements and submitting false documents to FEMA following Hurricane Irene, which struck New York in August 2011 and made uninhabitable the Schoharie County home in which Clapper was living at the time.
Clapper told FEMA that his monthly rent at his new home, in Westerlo, was $1,200, when it was really $500. In an effort to document the $1,200 monthly rent, Clapper also submitted to FEMA fake lease agreements and rent receipts containing the forged signature of his landlord. Clapper received $16,426 from FEMA as a result of these falsehoods.
This case was investigated by the Detroit Field Office of the Department of Homeland Security’s Office of Inspector General, and was prosecuted by Assistant United States Attorney Michael Barnett.
San Diego man pleads guilty to making a false statement to a federally insured financial institutionRead the Press Release
CHARLESTON, W.Va. – A San Diego man pleaded guilty today to submitting a false draw request on a construction loan from United Bank, announced Acting United States Attorney Carol Casto. Daniel Berg, 60, entered his guilty plea to making a false statement to a financial institution.
Berg admitted that in the summer of 2004, he and another individual formed a real estate development company called Mountain America, LLC, and purchased land near the town of Union in Monroe County to develop a residential community. The development was called Walnut Springs Mountain Reserve. Mountain America operated primarily out of an office located in Lewisburg.
In April 2005, Berg assisted an individual in submitting a construction loan application to United Bank in Fayetteville for the purpose of building a home on a parcel in Walnut Springs Mountain Reserve. On May 13, 2005, United Bank approved the construction loan. Following approval of the loan, Berg admitted that through Mountain America he submitted a false draw request on the construction loan for over $68,000 in reimbursement for purported construction expenses. United Bank approved this draw and deposited the funds into Mountain America’s construction control checking account. On May 19, 2005, Berg wrote a check for over $37,000 from the Mountain America construction control account to another individual. Those funds were used for expenses unrelated to home construction in Walnut Springs Mountain Reserve.
Berg faces up to 30 years in federal prison and a $1 million fine when he is sentenced on November 8, 2016.
The investigation was conducted by the FBI. Assistant United States Attorney Larry R. Ellis is in charge of the prosecution. The plea hearing was held before Senior United States District Judge David A. Faber.
Please note: The headline above has been corrected from the original version released on July 14, 2016.
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San Antonio Trio Sentenced to Federal Prison for Mail Theft, Bank Fraud and Aggravated Indentity Theft SchemeRead the Press Release
In San Antonio today, a federal judge sentenced 35-year-old Miranda Davee to 29 months in federal prison for her role in mail theft, bank fraud and aggravated identity theft scheme announced United States Attorney Richard L. Durbin, Jr. and United States Postal Inspection Service Inspector in Charge Adrian Gonzalez.
In addition to the prison term, Chief United States District Judge Orlando Garcia ordered that Davee be placed on supervised release for a period of three years after completing her prison term.
Davee is the final defendant to be convicted and sentenced to federal prison in this investigation. On June 30, 2016, Judge Garcia sentenced 41–year-old Frederick Bockelman and 33–year-old Jacquelynne Cortez to 51 months and 45 months in federal prison, respectively. Judge Garcia ordered that all three defendants joint and severally pay a total of $68,705.08 restitution.
Last year, all three defendants pleaded guilty to one count of bank fraud and one count of aggravated identity theft.
According to court records, the defendants schemed to steal checks and other items from U.S. Mail depositories in and around the San Antonio area beginning in November 2014. Utilizing the stolen information, including bank checks, the defendants created, and subsequently used, fraudulent drivers’ licenses to negotiate fraudulent checks at various businesses in Bexar County.
“The Postal Inspection Service has sought those who steal mail for hundreds of years. Postal Inspectors investigate a wide variety of crimes in our mission to protect the integrity of the U.S. Mail. This investigation was an excellent example of a partnership between local and federal law enforcement agencies working together to bring down this conspiracy. When criminals use the mail to defraud, Postal Inspectors will not hesitate to ensure they are brought to justice,” stated United States Postal Inspector in Charge Adrian Gonzalez.
All three defendants have remained in federal custody since their arrests in June and July of last year
The case resulted from an investigation by the United States Postal Inspection Service together with the Selma Police Department. Assistant United States Attorney Tom Moore prosecuted this case on behalf of the Government.
Ronald Rup, Jr. Imprisoned for Equipment Theft from Agri-MarkRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Ronald Rup Jr., 54, a former resident of Fairfax who now lives in Essex Junction, was sentenced today in United States District Court in Brattleboro to 27 months of imprisonment following his guilty plea to a charge of wire fraud. U.S. District Judge J. Garvan Murtha also ordered that Rup serve three years of supervised release following completion of his prison term and pay restitution of more than $1.5 million. The court directed Rup to surrender to the Bureau of Prisons on September 13 to begin serving his sentence.
Last October, the United States Attorney filed a criminal information charging Rup with wire fraud and Rup pleaded guilty to that charge in November. According to the information, Rup was employed by Agri-Mark as its manager of IT infrastructure. Several years ago, when Agri-Mark was constructing a new headquarters in Waitsfield, Rup was the employee responsible for purchasing the IT network equipment for the facility. As part of his criminal scheme, Rup caused Agri-Mark to purchase more than 100 pieces of switching equipment than were needed to serve the new building. The switches were expensive – many costing $8500 or more. Between about April 2012 and March 2014, Rup stole the extra switches from Agri-Mark's inventory and sold them over the Internet to a Texas company which specializes in buying and selling new and used IT networking equipment. Rup sold the switches for about one-third of their cost to Agri-Mark. The Texas company paid for the switches by depositing funds into Rup's PayPal account. Altogether, Rup realized more than $475,000 from the sales. He used the money to buy vehicles, snowmobiles, motorcycles and jewelry, and to pay for improvements to his home.
This case was investigated by the Federal Bureau of Investigation.
Rup is represented by Brooks McArthur. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Quinton Man Pleads Guilty to Possession of Firearm with Obliterated Serial NumberRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that MICHAEL CHRISTOPHER CONDI, age 38, of Quinton, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, on two (2) separate occasions, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e)(1) and POSSESSION OF FIREARM WITH OBLITERATED SERIAL NUMBER, in violation of Title 18, United States Code, Sections 922(k) and 924(a)(1).
The charge arose from an investigation by the Muskogee Police Department, the Muskogee County Sheriff’s Department and the Bureau of Alcohol, Tobacco and Firearms. The defendant was indicted in June, 2016.
The Indictment alleged that on or about January 22, 2016, within the Eastern District of Oklahoma, the defendant having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm with an obliterated serial number and ammunition, which had been shipped and transported in interstate commerce.
The Indictment further alleges that on or about April 13, 2016 within the Eastern District of Oklahoma, the defendant having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment, up to a $250,000 fine or both. However, if the Armed Career Criminal Act applies, the range of punishment will be not less than 15 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Dean Burris represented the United States.
Pittsburgh Felon Admits Illegally Possessing Gun and AmmunitionRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of a federal firearm violation, United States Attorney David J. Hickton announced today.
Donte Lamont Hall, age 26, pleaded guilty to one count before Senior United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that on January 8, 2016, Hall, a convicted felon, was in possession of a firearm and ammunition.
Judge McVerry scheduled sentencing for Oct. 24, 2016, at 9:30 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Troy Rivetti is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pittsburgh Police Department, and the Allegheny County Adult Probation Office conducted the investigation that led to the prosecution of Hall.
Philadelphia Man Sentenced to Prison for Assault with Intent to Commit MurderRead the Press Release
Jackson, Miss - Ruben Cruz, 26, originally of Philadelphia, Mississippi, was sentenced on Tuesday, July 12, 2016, by Senior U.S. District Judge David C. Bramlette III, to 180 months in prison followed by three years of supervised release for assault with intent to commit murder and the use of a firearm during a crime of violence, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway.
The assault took place on the Choctaw Indian Reservation located near Philadelphia, Mississippi.
This case was investigated by the Federal Bureau of Investigation with assistance from the Choctaw Police Department. Assistant U.S. Attorney Pat Lemon prosecuted the case.
Pharr Woman Charged with Bank FraudRead the Press Release
McALLEN, Texas – A former bank employee has surrendered to federal authorities following allegations she stole more than $1 million from customer accounts, announced U.S. Attorney Kenneth Magidson. Cynthia Luna Rodriguez, 43, of Pharr, surrendered this morning and is expected to make her initial appearance before U.S. Magistrate Judge Ronald Morgan at 10:00 a.m. today. According to the criminal complaint, filed yesterday and unsealed today, Rodriguez worked at PlainsCapital Bank in Edinburg. Following her termination, employees discovered documents at her desk including a 1099 statement belonging to one of the victims, according to the allegations. The statement had allegedly been altered with whiteout over the address and interest earned sections and new information typed over them. The new address was actually a private mailbox that Rodriguez leased, according to the charges. The criminal complaint alleges there were multiple accounts that had the address information changed. Those accounts allegedly had a significant number of unauthorized withdrawls. Law enforcement executed a search warrant on Rodriguez’s private mailbox, at which time they discovered multiple mailings to account holders at her private mailbox address. Further investigation revealed a large amount of unexplained money being deposited into some of Rodriguez’s accounts, corresponding with the time of the unauthorized withdrawls from the victim accounts, according to the charges. The victim accounts allegedly belonged to individuals who interacted with Rodriguez directly when she was employed at the bank. The complaint alleges the accounts primarily belonged to elderly individuals and to individuals living out of the country whom were not likely to regularly monitor their accounts. When account holders or their representatives came in to close their statements, Rodriguez would allegedly move money from another victim’s account to backfill the account about to be closed. A forensic audit conducted by an outside accounting firm determined that approximately $1.3 million was taken from six victim accounts over an eight-year time span, according to the charges. If convicted, Rodriguez faces up to 30 years in federal prison and a possible $1 million fine. The FBI conducted the investigation. Assistant U.S. Attorney Joseph Leonard is prosecuting the case. A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.Pharmacy Burglar Sentenced to 112 Months ImprisonmentRead the Press Release
Michael Katzin, 35 of Philadelphia was sentenced to 112 months’ imprisonment yesterday by the U.S. District Court Judge Gene E.K. Pratter after having been found guilty by a jury in January 2016 of one count of conspiracy to commit pharmacy burglary, one count of conspiracy to possess with the intent to distribute controlled substances, one count of pharmacy burglary, and one count of possession with the intent to distribute controlled substances, announced United States Attorney Zane David Memeger.
The defendant conspired and agreed with his brothers Harry Katzin and Mark Katzin, both convicted previously, and others known and unknown to the grand jury, to enter Rite Aid pharmacies, including the Rite Aid pharmacy located at 1852 Brownsville Rd, Feasterville-Trevose, Pennsylvania on November 18, 2010, and the Rite Aid pharmacy located at 807 S. 4th Street, Hamburg, Pennsylvania on December 16, 2010, with intent to steal materials and compounds containing any quantity of a controlled substance, including amphetamine salts, dextroamphetamine, fentanyl, methylphenidate, dexmethylphenidate, morphine sulfate, meperidine, oxymorphone, tapentadol, codeine sulfate, hydromorphone, hydrocodone, hydrocodone APAP, hydrocodone chlorpheniram, oxycodone, and oxycodone APAP, each a Schedule II controlled substance; and whose replacement value was not less than $500, and to knowingly and intentionally possess these controlled substances with the intent to distribute them.
As part of its verdict, the jury found the defendant guilty of burglarizing the Rite Aid Pharmacy at 807 South 4th Street, Hamburg, Pennsylvania on December 16, 2010, with intent to steal materials and compounds containing any quantity of a controlled substance, including to Schedule II and other controlled substances, including amphetamine salts, dextroamphetamine, fentanyl, methylphenidate, dexmethylphenidate, morphine sulfate, meperidine, oxymorphone, tapentadol, codeine sulfate, hydromorphone, hydrocodone, hydrocodone APAP, hydrocodone chlorpheniram, oxycodone, and oxycodone APAP; all Schedule II controlled substances; and whose replacement value was not less than $500, and possessed these controlled substances with intent to distribute them.
The case was investigated by agents from the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the Southampton Township Police Department, and the Hamburg Borough Police Department, and was prosecuted by Assistant United States Attorney Thomas M. Zaleski.
Owner of Costa Rican Call Center and Two Others Plead Guilty to Defrauding Elderly through Offshore Sweepstakes SchemeRead the Press Release
Two U.S. citizens and a Canadian citizen have pleaded guilty for their roles in a $9 million “sweepstakes fraud” scheme to defraud hundreds of U.S. residents, many of them elderly, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
Jeffrey Robert Bonner, 37, of Sacramento, California; Cody Trevor Burgsteiner, 33, of Houston; and Darra Lee Shephard, 57, of Calgary, Alberta, pleaded guilty this week before U.S. Magistrate Judge David Keesler of the Western District of North Carolina to various counts of conspiracy to commit wire fraud and mail fraud, wire fraud, conspiracy to commit money laundering and international money laundering, all in connection with a Costa Rican telemarketing fraud scheme. Sentencing dates have not been set.
As part of their guilty pleas, Bonner, Burgsteiner and Shephard each admitted that from approximately 2007 through November 2012, they worked in a call center located in Costa Rica, which Bonner owned, where they placed telephone calls to U.S. residents, falsely informing them that they had won a substantial cash prize in a “sweepstakes.” The victims, many of whom were elderly, were told that in order to receive the prize, they had to pay for a purported “refundable insurance fee,” the defendants admitted. Bonner, Burgsteiner and Shephard admitted that once they received the money, they contacted the victims again to tell them that their prize amount had increased, due to either a clerical error or because other winners had been disqualified. The victims were then told to send additional money to pay for new purported fees, duties and insurance to receive the now larger sweepstakes prize, the defendants admitted. The defendants further admitted that they and their co-conspirators continued their attempts to collect additional money from the victims until an individual either ran out of money or discovered the fraudulent nature of the scheme. To mask that they were calling from Costa Rica, the conspirators utilized voice over internet protocol (VoIP) phones that displayed a 202 area code, giving the false impression that they were calling from Washington, D.C., they admitted. According to admissions made in connections with their pleas, the defendants and their co-conspirators often falsely claimed that they were calling on behalf of a U.S. federal agency to lure victims into a false sense of security.
Bonner, Burgsteiner, Shephard and their co-conspirators were responsible for causing approximately $9 million in losses to hundreds of U.S. citizens.
The U.S. Postal Inspection Service, FBI, Internal Revenue Service-Criminal Investigation, Federal Trade Commission and Department of Homeland Security investigated the case, and the Criminal Division’s Fraud Section supervised the investigation. Senior Litigation Counsel Patrick Donley and Trial Attorneys William Bowne and Gustav Eyler of the Fraud Section are prosecuting the case.