Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
13 July 2016
Convicted felon sentenced in Federal Court on weapons chargesRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of an Indianapolis man for possession of a firearm by a convicted felon. Adrian Bullock, 26, was sentenced to 41 months imprisonment by U.S. District Judge Jane Magnus-Stinson in federal court.
“Mr. Bullock terrorized Indianapolis neighborhoods with gun violence for many years,” said Minkler. “He will now have time to think about his crime in the Bureau of Prisons.”
On April 8, 2014, Indianapolis Metropolitan Police Department (IMPD) officers received a complaint of a suspicious vehicle near the 1700 block of N. Oxford Street on the City’s near-Eastside. When officers arrived, they located the suspicious vehicle and saw Bullock get out of it and walk away. Officers recovered a .40 caliber handgun and two assault style semiautomatic rifles in the vehicle, all of which were fully loaded.
Bullock may not legally possess a firearm because he has two felony convictions for narcotic-related crimes.
This case was investigated by the IMPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to Assistant United States Attorney MaryAnn T. Mindrum, who prosecuted this case for the government, Bullock must serve three years of supervised release following completion of incarceration.
City of Miami Resident Pleads Guilty to Possessing 242 Stolen Identities Used in Unemployment and Tax Fraud SchemesRead the Press Release
A City of Miami resident pled guilty to possessing 242 stolen identities used in unemployment and tax fraud schemes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, Miami Office (DOL-OIG), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Yordan Gorotiza, 25, pled guilty to one count of possession of fifteen or more unauthorized access devices (social security numbers) with intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing is scheduled for September 16, 2016 before U.S. District Court Judge Paul C. Huck. At sentencing, Gorotiza faces a maximum of ten years’ imprisonment for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, during a traffic stop of Gorotiza’s vehicle, law enforcement officers found Gorotiza in possession of (among other items) four Florida unemployment cards in the names of other individuals; 26 Visa gift cards; a Florida driver’s license with Gorotiza’s picture but with another individual’s name; and a book bag containing personal identifying information (PII) of 242 different people, including employment records from a business and patient data sheets from a hospital. Several of the sheets contained handwritten driver's license numbers and markings commonly used to represent tax or unemployment benefits filings.
Records from the Florida Department of Economic Opportunity show that between October 1, 2013 and July 11, 2014, at least 64 of the victims had their personal information used without authorization to obtain unemployment benefits, including the victims whose unauthorized unemployment cards Gorotiza possessed during the traffic stop. The total actual loss to the Florida Department of Economic Opportunity was $33,608, and the total intended loss was $192,009. The total intended loss attributable to Gorotiza, including the 178 victims whose social security numbers were not used to obtain unauthorized unemployment benefits, was $281,009.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, and the Aventura Police Department. The case is being prosecuted by Assistant U.S. Attorney Tonya R. Long.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Chinese National Who Conspired to Hack into U.S. Defense Contractors’ Systems Sentenced to 46 Months in Federal PrisonRead the Press Release
A Chinese national who admitted to participating in a years-long conspiracy that involved Chinese military officers hacking into the computer networks of major U.S. defense contractors in order to steal military technical data was sentenced today to 46 months in federal prison.
Today’s sentencing was announced by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Eileen M. Decker of the Central District of California.
“Su Bin’s sentence is a just punishment for his admitted role in a conspiracy with hackers from the People's Liberation Army Air Force to illegally access and steal sensitive U.S. military information,” said Assistant Attorney General Carlin. “Su assisted the Chinese military hackers in their efforts to illegally access and steal designs for cutting-edge military aircraft that are indispensable to our national defense. These activities have serious consequences for the national security of our country and the safety of the men and women of our armed services. This prison sentence reinforces our commitment to ensure that hackers, regardless of state affiliation, are held accountable for their criminal conduct.”
“Protecting our national security interests, including sensitive military information, is the Justice Department’s highest priority,” said U.S. Attorney Decker. “Over the course of years, this defendant sought to undermine the national security of the United States by seeking out information that would benefit a foreign government and providing that country with information it had never before seen. The outstanding efforts of the prosecutors and investigators who developed this case demonstrate our commitment to protecting our nation’s security from all threats. As this case shows, criminals can be held accountable no matter where they are located in the world.”
Su Bin, who is also known as Stephen Su and Stephen Subin, 51, a citizen and resident of the People’s Republic of China, was sentenced today by U.S. District Judge Christina A. Snyder of the Central District of California.
Su told his co-conspirators – military officers in China – whom to target, which files to steal and why the information they stole was significant. During the course of the conspiracy, Su and his co-conspirators stole sensitive military and export-controlled data and sent the stolen information to China.
On March 23, Su pleaded guilty to one count of conspiring to gain unauthorized access to a protected computer and to violate the Arms Export Control Act by exporting defense articles on the U.S. Munitions List contained in the International Traffic in Arms Regulations. Su admitted that he conspired with two persons in China from October 2008 to March 2014 to gain unauthorized access to protected computer networks in the United States – including computers belonging to the Boeing Company in Orange County, California – to obtain sensitive military information and to export that information illegally from the United States to China.
A criminal complaint filed in 2014 and subsequent indictments filed in Los Angeles charged Su, a China-based businessman in the aviation and aerospace fields, for his role in the criminal conspiracy to steal military technical data, including data relating to the C-17 strategic transport aircraft and certain fighter jets produced for the U.S. military. Su was initially arrested in Canada in July 2014 on a warrant issued in relation to this case. Su ultimately waived extradition and consented to be conveyed to the United States in February 2016.
Su admitted that as part of the conspiracy, he sent e-mails to his co-conspirators with guidance regarding what persons, companies and technologies to target during their computer intrusions. One of Su’s co-conspirators gained access to information located on computers of U.S. companies, and he emailed Su directory file listings and folders showing the data that the co-conspirator had been able to access. Su then directed his co-conspirator as to which files and folders his co-conspirator should steal. Once the co-conspirator stole the data, using techniques to avoid detection when hacking the victim computers, Su translated the contents of certain stolen data from English into Chinese. In addition, acoording to Su's admissions and the sentencing documents, Su and his co-conspirators each wrote, revised and emailed reports addressed to the Second Department, General Staff Headquarters, Chinese People’s Liberation Army about the information and technology they had acquired by their hacking activities, including its value, to the final beneficiaries of their hacking activities. Su also admitted that he engaged in the crime for the purpose of financial gain and specifically sought to profit from selling the data the he and his conspirators illegally acquired.
The case was investigated by the FBI’s Los Angeles Field Office’s Cyber Division with assistance from the U.S. Air Force Office of Special Investigations. This case was prosecuted by the U.S. Attorney’s Office of the Central District of California’s Terrorism and Export Crimes Section and Trial Attorney Casey Arrowood and Senior Trial Attorney Robert E. Wallace of the National Security Division’s Counterintelligence and Export Control Section, with support from the Justice Department’s Office of International Affairs.
Chinese National Who Conspired to Hack into U.S. Defense Contractors’ Computer Systems Sentenced to 46 Months in PrisonRead the Press Release
LOS ANGELES – A Chinese national who admitted to participating in a years-long conspiracy that involved Chinese military officers hacking into the computer networks of major U.S. defense contractors in order to steal military technical data was sentenced today to 46 months in federal prison.
Su Bin, who is also known as Stephen Su and Stephen Subin, 51, a citizen and resident of the People’s Republic of China, was sentenced this afternoon by United States District Judge Christina A. Snyder, who also ordered the defendant to pay a $10,000 fine.
Su told his co-conspirators – military officers in China – whom to target, which files to steal and why the information they stole was significant. During the course of the conspiracy, Su and his co-conspirators stole sensitive military and export-controlled data and sent the stolen information to China.
“Protecting our national security interests, including sensitive military information, is the Justice Department’s highest priority,” said United States Attorney Eileen M. Decker. “Over the course of years, this defendant sought to undermine the national security of the United States by seeking out information that would benefit a foreign government and providing that country with information it had never before seen. The outstanding efforts of the prosecutors and investigators who developed this case demonstrate our commitment to protecting our nation’s security from all threats. As this case shows, criminals can be held accountable no matter where they are located in the world.”
On March 23, Su pleaded guilty to one count of conspiring to gain unauthorized access to a protected computer and to violate the Arms Export Control Act by exporting defense articles on the U.S. Munitions List contained in the International Traffic in Arms Regulations. Su admitted that he conspired with two persons in China from October 2008 to March 2014 to gain unauthorized access to protected computer networks in the United States – including computers belonging to the Boeing Company in Orange County, California – to obtain sensitive military information and to export that information illegally from the United States to China.
“Su Bin’s sentence is a just punishment for his admitted role in a conspiracy with hackers from the People's Liberation Army Air Force to illegally access and steal sensitive U.S. military information,” said Assistant Attorney General for National Security John P. Carlin. “Su assisted the Chinese military hackers in their efforts to illegally access and steal designs for cutting-edge military aircraft that are indispensable to our national defense. These activities have serious consequences for the national security of our country and the safety of the men and women of our armed services. This prison sentence reinforces our commitment to ensure that hackers, regardless of state affiliation, are held accountable for their criminal conduct.”
A criminal complaint filed in 2014 and subsequent indictments filed in Los Angeles charged Su, a China-based businessman in the aviation and aerospace fields, for his role in the criminal conspiracy to steal military technical data, including data relating to the C-17 strategic transport aircraft and certain fighter jets produced for the U.S. military. Su was initially arrested in Canada in July 2014 on a warrant issued in relation to this case. Su ultimately waived extradition and consented to be conveyed to the United States in February 2016.
Su admitted that as part of the conspiracy, he sent e-mails to his co-conspirators with guidance regarding what persons, companies and technologies to target during their computer intrusions. One of Su’s co-conspirators gained access to information located on computers of U.S. companies, and he emailed Su directory file listings and folders showing the data that the co-conspirator had been able to access. Su then directed his co-conspirator as to which files and folders his co-conspirator should steal. Once the co-conspirator stole the data, using techniques to avoid detection when hacking the victim computers, Su translated the contents of certain stolen data from English into Chinese. In addition, according to Su's admissions and the sentencing documents, Su and his co-conspirators each wrote, revised and emailed reports addressed to the Second Department, General Staff Headquarters, Chinese People’s Liberation Army about the information and technology they had acquired by their hacking activities, including its value, to the final beneficiaries of their hacking activities. Su also admitted that he engaged in the crime for the purpose of financial gain and specifically sought to profit from selling the data the he and his conspirators illegally acquired.
The case was investigated by the FBI’s Los Angeles Field Office’s Cyber Division with assistance from the U.S. Air Force Office of Special Investigations.
This case was prosecuted by the Terrorism and Export Crimes Section of the United States Attorney’s Office in Los Angeles and the National Security Division’s Counterintelligence and Export Control Section of the Department of Justice, with support from the Justice Department’s Office of International Affairs.
Charlton Man Sentenced to 20 Years in Prison for Child ExploitationRead the Press Release
BOSTON – A Charlton man was sentenced today in U.S. District Court in Worcester in connection with soliciting hundreds of teenage girls on several social media platforms.
Matthew Clem, 31, was sentenced by U.S. District Court Judge Hillman to 20 years in prison and 10 years of supervised release. In April 2016, he pleaded guilty to three counts of producing child pornography. Clem also faces state child rape charges in the Worcester Superior Court.
Clem pretended to be a 15-16 year old boy on several social media platforms in order to meet teenage girls. After chatting with them, Clem proposed that they meet his 19 or 20 year old “cousin,” who Clem claimed was returning from active military duty. The “cousin,” however, was Clem himself who had never served in the military. Evidence on Clem’s cell phone revealed that he had solicited over 1,000 potential victims.
Clem admitted during the plea hearing that in October 2014 he requested and obtained nude photos of a teenage female victim through Kik Messenger, a web-based messaging service. Via text message, Clem specified poses and sexual acts for the victim to photograph and send to him.
From September 2011 to May 2012, Clem video-chatted with another female teenage victim over Skype, a web-based video messaging service. During the video chats, Clem had the victim remove her clothes and conduct sexual acts. Clem also met with the victim and engaged in sexual intercourse with her.
Clem also admitted to communicating with a third teenage victim through Kik Messenger in the spring and fall of 2014. Clem exchanged sexually graphic text messages and images with the teenager and met her on multiple occasions to engage in sexual intercourse.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Worcester District Attorney Joseph D. Early, Jr.; Gregory K. Null, Special Agent in Charge of the U.S. Department of Homeland Security, Office of Inspector General, Office of Investigations; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; North Brookfield Police Chief Mark Smith, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
Carterville Woman Pleads Guilty to Bankruptcy FraudRead the Press Release
On July 12, 2016, Jenny L. Parks-Smith, 42, of Carterville, IL, pled guilty to a bankruptcy fraud charge pending against her in federal court in Benton, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Parks-Smith was indicted on February 2, 2016, as part of an effort to crackdown on those who commit fraud during the course of bankruptcy proceedings in the U.S. Bankruptcy Court for the Southern District of Illinois.
"Bankruptcy fraud harms creditors and erodes confidence in the federal bankruptcy system," United States Attorney Boyce explained. "Individuals who hide their assets during bankruptcy cases are defrauding their creditors. Truth is at the core of any bankruptcy and my office will prosecute those who engage in this type of conduct."
The indictment charged Parks-Smith with concealing assets in her bankruptcy case. In pleading guilty, Parks-Smith admitted that she concealed from the Bankruptcy Court a $17,500 settlement she received for a worker’s compensation claim. Parks-Smith further admitted that she used this money to pay personal and family expenses. Parks-Smith’s chapter 13 bankruptcy case was filed and litigated in the United States Bankruptcy Court in Benton, Illinois.
"Abuse of the bankruptcy system by concealing assets for personal gain threatens the integrity of the bankruptcy system," stated Nancy J. Gargula, U.S. Trustee for Southern Illinois, Central Illinois and Indiana (Region 10). "I am grateful to U.S. Attorney Boyce and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases." The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in Peoria, IL and South Bend, IN.
Parks-Smith’s sentencing hearing is scheduled for October 19, 2016, at 10:30 a.m. at the federal courthouse in Benton. The crime of concealing assets in a bankruptcy case is punishable by up to 5 years in federal prison, and/or a $250,000 fine, not more than three years of supervised release, and restitution.
The charges resulted from a referral by the U.S. Trustee and the investigation was conducted by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation ("FBI") with assistance from members of the Southern District of Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
California Woman and Her Company Sentenced for Clean Air Act ViolationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHEERY WAY, INC., and ELAINE CHIU, age 60, a resident of San Francisco, California, were sentenced today by the Honorable Susie Morgan to five years of probation, a $500,000 fine, and $162,520 in restitution to workers for medical monitoring costs for violating notification requirements under the Clean Air Act.
According to the court documents, on or about April 2, 2011, in the Eastern District of Louisiana, CHEERY WAY, INC., and CHIU did knowingly fail to notify and report to the Louisiana Department of Environmental Quality the demolition of the Mississippi Queen Riverboat which contained regulated asbestos containing material, to wit: wall and ceiling tiles, at least ten days prior to the start of the demolition as required by the Clean Air Act, in violation of Title 42, United States Code, Section 7413(c)(2)(B) and Title 40, Code of Federal Regulations, Section 61.145(b).
Prior to the demolition of the Mississippi Queen, CHIU and agents of CHEERY WAY, INC., had been informed that samples of the wall and ceiling tiles on the old riverboat contained asbestos. However, CHEERY WAY, INC., did not inform the demolition contractor they hired that sampling had been performed. CHEERY WAY, INC., merely told the contractor that the riverboat “might” have asbestos. The inexperienced demolition contractor told CHIU and CHEERY WAY, INC., that he did not believe the vessel contained any asbestos. As a result, workers were not required to take any precautions against the release of asbestos. After receiving a tip about the worksite, the Louisiana Department of Environmental Quality issued the site a Notice of Deficiency and work was stopped. The site was thereafter remediated by another CHIU company at a cost of $245,248.23.
During her five year term of probation, CHIU is prohibited from participating in any capacity in the construction, demolition, or renovation business anywhere in the United States and must ensure that none of the companies she owns or operates will engage in the construction, demolition, or renovation business. Similarly, neither CHEERY WAY, INC., or its agents or employees will engage in the construction, demolition, or renovation business anywhere in the United States.
"Unsafe handling of asbestos endangers human health and can seriously harm the environment,” said Ted Stanich, Acting Director for the U.S. EPA-Criminal Investigation Division. “The defendants knowingly put unsuspecting workers at great risk and threatened the health and safety of the general public. This case should serve notice that when companies and their top managers put Americans at risk, EPA and its partner agencies will hold them accountable.”
“Any business that breaks the law through false statements and illegal actions in order to pollute our soil, air and water does so with a blatant disregard for our health and environment,” said Dr. Chuck Carr Brown, DEQ Secretary. “Crimes of this nature affect all of us, so we encourage anyone with information on any type of illegal environmental activity to contact DEQ and local law enforcement as soon as possible so that we may investigate and bring these violators to justice.”
U.S. Attorney Polite praised the work of the Environmental Protection Agency-Criminal Investigation Division and the Louisiana Department of Environmental Quality-Criminal Investigation Division in investigating this matter. Assistant U.S. Attorney Emily K. Greenfield of the National Security Unit of the United States Attorney’s Office of the Eastern District of Louisiana is in charge of the prosecution.
Bowling Green Physician Charged with Unlawful Distribution and Dispensing of Controlled Substance Causing Serious Physical Injury And/Or Death, Health Care Fraud Resulting in Death, and Conspiracy to Dispense Controlled SubstancesRead the Press Release
50 Count Indictment includes deaths of patients
BOWLING GREEN, Ky. – United States Attorney John E. Kuhn, Jr. today announced the Superseding Indictment of former Warren County, Kentucky, physician Charles Fred Gott on multiple charges of unlawful distribution and dispensing of controlled substances resulting in injury and or death of patients, health care fraud resulting in a patient’s death, and conspiracy to distribute and dispense controlled substances during the course of his professional practice that were not for a legitimate medical purpose, and health care fraud.
Gott, age 63, a formerly licensed physician in the Commonwealth of Kentucky, was initially indicted by grand jury in Bowling Green on June 10, 2015.
Today’s 50 count, superseding indictment adds multiple charges while the alleged criminal activity remains between 2006 and September 19, 2013, in Warren County, Kentucky.
Gott is charged with a single count of conspiring with others to knowingly and intentionally distribute and dispense, not for a legitimate medical purpose in the usual course of professional practice, Schedule II, Schedule III and Schedule IV controlled substances. Included are 14 counts of unlawfully dispensing Methadone and Fentanyl – Schedule II controlled substances, Hydrocodone – a Schedule III controlled substance, and Clonazepam and Oxymorphone – Schedule IV controlled substances.
Further, Gott is charged with three counts of unlawful distribution and dispensing of controlled substances resulting in serious physical injury and/or the death of known patients. According to the charges, on December 8, 2011, Gott knowingly and intentionally distributed Fentanyl, not for a legitimate medical purpose and in the usual course of professional practice, to a patient whose serious physical injury and death on December 13, 2011 resulted from the use of the dispensed substance.
On February 28, 2012, Gott is charged with knowingly and intentionally distributing Hydrocodone, not for a legitimate medical purpose and in the usual course of professional practice, to a patient whose serious physical injury and death on March 2, 2012 resulted from the use of the dispensed substance.
On July 24, 2012, Gott is charged with knowingly and intentionally distributing Methadone, not for a legitimate medical purpose and in the usual course of professional practice, to a patient whose serious physical injury and death on July 28, 2012, resulted from the use of the dispensed substance.
Gott is further charged with a single count of the health care fraud resulting in the death of a patient. According to the superseding indictment, between July 13, 2011, and September 19, 2013, Gott knowingly dispensed and distributed medically unnecessary controlled substance prescriptions to a patient – knowing that the patient would fill her prescriptions at pharmacies, and those pharmacies in turn would submit claims to health care benefit programs for reimbursement and these prescriptions resulted in the patients’ death on February 7, 2013.
Further, during the same time period, Gott is charged with executing a scheme to falsely and fraudulently bill various health care benefit programs, including Medicare and Medicaid, by submitting claims for office visits at a higher code than the service actually provided to patients under his care. Also, Gott is charged with directing staff members to provide medically unnecessary spirometry tests and medically unnecessary electrocardiogram (EKG/ECG) tests to patients, and to falsely and fraudulently bill various health care benefit programs, including Medicare, Medicaid, and Anthem, among others, by submitting claims for medically unnecessary spirometry tests and EKG/ECG tests, for patients. A spirometry test assess lung function in the diagnosis of asthma, chronic obstructive pulmonary disease (COPD) and other conditions that affect breathing.
Gott is further subject to forfeiture to the United States government, any and all proceeds derived from unlawful activity as a result of the offenses alleged in the indictment and the forfeiture of Gott’s license to practice medicine.
If convicted at trial, Gott faces a mandatory minimum of 20 years and up to and including life in prison. Gott is scheduled for arraignment on July 27th, at 10:00 a.m. in Bowling Green.
This case is being prosecuted by Assistant United States Attorneys Mac Shannon, Lettricea Jefferson-Webb and Joseph Ansari. This case was investigated by the Warren County Drug Task Force, Drug Enforcement Administration (DEA) Drug Diversion Section, the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), Kentucky State Police, Office of the Attorney General, Medicaid Fraud and Abuse Division and Federal Bureau of Investigation (FBI). The Warren County Drug Task Force, led by Director Tommy Loving, along with detectives from KSP’s West Drug Enforcement Branch, were instrumental in identifying and developing this case for federal prosecution.
Bowie Drug Trafficker Sentenced to 23 Years in Federal Prison for $108 Million Drug Distribution and Money Laundering ConspiraciesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Andracos Marshall, a/k/a “Draco,” age 42, of Bowie, Maryland, to 23 years in prison, followed by five years of supervised release, for conspiring to distribute cocaine; possession with intent to distribute cocaine; and money laundering conspiracy. Judge Chasanow also entered an order requiring Marshall to forfeit $51,300,000. Marshall was convicted of the federal charges on February 8, 2016, after a 13 day jury trial.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; 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 of Police Robert D. MacLean of the U.S. Park Police; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas Jankowski the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Michael B. Boxler of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Washington Field Division; U.S. Marshal Johnny Hughes; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to evidence presented at his trial, from at least January 2011 through January 2015, Marshall conspired with Anthony Torrell Tatum, Ishmael Ford-Bey and others to distribute cocaine and heroin in Prince George’s County, including Oxon Hill, Maryland, and Washington, D.C. In order to disguise their drug proceeds, Marshall and his co-conspirators used aliases and false identifications and created numerous business entities, which had little, if any, legitimate business.
They also used the aliases and false identifications to rent storage facilities and apartments for their drug trafficking activities. For example, on February 22, 2013, a third party leased an apartment for Marshall in the 3800 block of Tunlaw Road in Washington, D.C. Investigation revealed that Tatum and Ford-Bey were visitors to the apartment. On October 1, 2013, agents executed a search warrant at the apartment and located a safe which contained $823,640 in cash, several expensive watches, and jewelry. Agents also recovered scales, three heat sealers, a coffee grinder, a currency counter and other drug paraphernalia, as well as approximately 150 grams of cocaine base.
Testimony showed that from January 2011 until August 2012, Ford-Bey, assisted by Marshall, received multiple kilogram shipments of cocaine from a source in California. On August 15, 2012, the Texas Department of Public Safety stopped a refrigerated box truck that was transporting 13 boxes, each containing approximately 10 kilograms of cocaine. The boxes were to be delivered to Ford-Bey in Temple Hills, Maryland. A controlled delivery of the boxes from the truck was arranged.
On August 17, 2012, the truck arrived at the meeting location in Marlow Heights, Maryland. A few minutes later, a vehicle registered to Ford-Bey arrived. Law enforcement saw the truck driver and Ford-Bey unloading the drugs into Ford-Bey’s vehicle. Marshall, who was driving another vehicle, followed Ford-Bey as they left the area. As law enforcement officers pursued Ford-Bey, Marshall drove his vehicle in a manner to evade law enforcement. Marshall and Ford-Bey eventually abandoned their vehicles after a high-speed chase on I-495 and ran away. Agents recovered the vehicles, the cocaine, cell phones and other evidence. Marshall remained a fugitive until he was arrested in January 2015.
Four other defendants were convicted and sentenced to federal prison for their participation in the conspiracy:
Anthony Torrell Tatum, age 37, of Arlington, Virginia – 27 years in prison;
Ishmael Ford-Bey, age 40, of Mitchellville, Maryland – 33 years in prison;
Terrin Tamal Anderson, age 29, of Waldorf, Maryland – 12 years in prison; and
David Allen Jones, age 40, of District Heights, Maryland - 45 months in prison.
Judge Chasanow also entered an order requiring Tatum and Ford-Bey to pay a $108 million money judgment, and a forfeiture order for personal property, including luxury vehicles, jewelry and cash.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, Prince George’s County Police Department, U.S. Park Police, U.S. Postal Inspection Service, IRS-CI, ATF, U.S. Marshals Service and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston, Ray D. McKenzie, and Thomas P. Windom, who prosecuted this Organized Crime Drug Enforcement Task Force case.
BPD Cell Block Attendant Indicted for Violatingthe Civil Rights of an Individual in CustodyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Matthew Jaskula, 26, of Buffalo, NY, was indicted by a Federal Grand Jury for one count of willful deprivation of rights under color of law resulting in bodily injury. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
“The Constitutional rights that all citizens of this country enjoy do not expire simply because a person has been taken into custody,” said U.S. Attorney Hochul. “Likewise, the motto ‘to protect and to serve’ applies not just to sworn police officers, but to all who work in any law enforcement capacity. For these reasons, when our Office receives information that a person has been abused by one in authority, we will not hesitate to act, whether the incident occurred on a street or in a jail.”
U.S. Attorney Hochul stated that Jaskula had been working as a Cell Block Attendant with the Buffalo Police Department since 2013. On May 19, 2016, the defendant was working as a Senior Cell Block Attendant.
According to the previously filed criminal complaint, on May 19, 2016, the victim was arrested by two Buffalo Police officers and transported to the cell block area of police headquarters. At approximately 10:00 p.m., the victim, whose hands were handcuffed behind his back, was taken into the fingerprint and mug shot room. The officers and the victim were met by Jaskula and another cell block attendant.
The victim, with his hands still handcuffed behind him, was instructed to face a wall. Within a few seconds, Jaskula grabbed the victim from behind and shoved the victim face-first into a door. The force of the defendant’s actions not only caused the victim to strike the door, it caused the door to fly open and the victim to fall to the ground. On the way to the ground, the victim’s face struck the ledge of a shelf, before striking the floor, face-first.
The defendant’s actions caused the victim to become limp and unresponsive. Jaskula thereafter grabbed the victim by his handcuffed arms and dragged him down a hallway for approximately 10-15 feet to an open cell. The victim began bleeding profusely as he was dragged by the defendant and taken into an open cell. As the victim was pulled into the room, the victim’s head hit the door frame, causing blood to pool on the floor. Once in the room, the victim’s facial injuries caused a large amount of blood to fall onto the seat and floor of the cell.
The victim was later taken by Jaskula and another and put into a restraint chair used for non-compliant prisoners. The defendant left the victim in this chair, without seeking medical treatment for the extensive facial injuries, for approximately an hour and 45 minutes. The cell block area in Buffalo Police headquarters is equipped with a video recording system and Jaskula’s actions were captured on videotape.
As also described in the complaint, Jaskula told two lieutenants on duty that a prisoner had a bloody nose, giving the impression that the victim had the bloody nose when he was brought in by the officers. After one of the lieutenants indicated the victim should go to the Erie County Medical Center, the defendant replied that the victim’s nose was not bleeding anymore and he was refusing medical treatment. At approximately 11:30 p.m., the victim complained of chest pains. The victim was taken to ECMC and treated for nasal bone fractures and a laceration between his nose and right eye.
The defendant will be arraigned on a date and time to be set before U.S. Magistrate Judge Michael J. Roemer. The indictment is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Arizona man pleads guilty to traveling to Louisiana to have sex with a minorRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that an Arizona man pleaded guilty last week to traveling from Texas to Louisiana in order to engage in sexual activity with a minor.
Jonathan Glosch, 27, of Golden Valley, Ariz., pleaded guilty Friday before U.S. Magistrate Judge Carol B. Whitehurst to one count of traveling with intent to engage in illicit sexual conduct. The plea will become final when accepted by U.S. District Judge Patricia Minaldi. According to the guilty plea, Glosch was traveling with an Arizona family in November of 2015 on their way to Louisiana. The family asked Glosch to leave the trip while in Texas. The mother believed he was having an inappropriate relationship with their 14-year-old daughter. Glosch stayed in contact with the daughter telling her that he had feelings for her and that they would run away together. He followed the family to Morgan City, La. On December 3, 2015, he picked up the daughter without the family’s knowledge and drove to Lafayette Parish. Law enforcement agents used information provided by the parents to track the defendant. The juvenile female was found with Glosch, and he was arrested.
Glosch faces 30 years in prison, five years to life of supervised release and a $250,000 fine. He is also required to register as a sex offender. A sentencing date was not set.
The FBI, Lafayette Parish Sheriff’s Office and Morgan City Police Department investigated the case. Assistant U.S. Attorney Robert F. Moore is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lafayette FBI office number is (337) 233-2164.
Appleton Man Sentenced to Ten Years in Federal Prison for Possessing Firearms Stolen from Oshkosh Gun ShopRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on July 12, 2016, Cory M. Yant (age: 35) of Appleton, Wisconsin, was sentenced to 10 years in federal prison for being a felon in possession of a firearm.
A federal grand jury had indicted Yant for offenses related to the May 25, 2015, break-in and burglary of Jon’s Gun Shop in Oshkosh, Wisconsin. According to court filings, Yant and his codefendants stole and then sold on the street 11 semi-automatic firearms, several of which ended up in the hands of convicted felons.
In pronouncing sentence, Chief United States District Court Judge William C. Griesbach agreed that the maximum sentence of 10 years was warranted based on Yant’s conduct and history. Chief Judge Griesbach also determined that in light of Yant’s lengthy criminal record and unrepentant demeanor, his 10-year federal prison sentence will commence only after Yant has finished serving a 4-year state prison sentence for crimes committed in Calumet, Outagamie, and Brown Counties.
The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Winnebago County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
# # #
A Dominican National Indicted for Illegally Re-Entering the U.S.Read the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg has indicted Miguel Antonio Rivera-Lopez for illegally re-entering the United States after having been previously deported.
According to U.S. Attorney Peter Smith, Rivera-Lopez, a 56 year old Dominican national, was arrested by officers of U.S. Immigration and Customs Enforcement on June 12, 2016 as a result of a traffic stop in York, Pennsylvania. Rivera-Lopez had previously been deported after an Immigration Judge in New York ordered his removal pursuant to a conviction for felony drug trafficking of heroin.
The matter was investigated by the U.S. Department of Homeland Security/ Immigration and Customs Enforcement and Removal Operations and the case is being prosecuted by Assistant U.S. Attorney Meredith A. Taylor.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for this offense under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
12 July 2016
Zuni Pueblo Man Sentenced to 17 Years for Second Degree Murder ConvictionRead the Press Release
ALBUQUERQUE – Douglas Burt, 20, a member and resident of Zuni Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to 204 months in prison followed by three years of supervised release for his conviction on a second degree murder charge.
Burt and his co-defendant Dusty Chavez, 23, also a member and resident of Zuni Pueblo, 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. Burt and Chavez were subsequently indicted on murder charges on Nov. 19, 2014.
On Jan. 7, 2016, Burt pled guilty to a felony information charging him with second degree murder. According to the plea agreement, Burt and Chavez 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.
On Jan. 12, 2016, Chavez pled guilty to a felony information charging him with second degree murder. Under the terms of his plea agreement, Chavez will be sentenced within the range of 228 to 276 months in federal prison followed by a term of supervised release to be determined by the court. Chavez is currently scheduled for sentencing on July 14, 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 are prosecuting the case.
Worcester Woman Sentenced for $3.6 Million Food Stamp FraudRead the Press Release
BOSTON – A Worcester woman was sentenced yesterday in U.S. District Court in Worcester in connection with a $3.6 million food stamp fraud scheme that she operated out of her Worcester convenience store.
Vida Ofori Causey, 46, was sentenced by U.S. District Court Judge Timothy S. Hillman to one year and one day in prison, three years of supervised release and ordered to forfeit $3,512,906 to the government. The court ordered restitution to be determined after forfeiture is completed. In December 2015, Causey pleaded guilty to one count of conspiracy to commit SNAP benefits fraud, one count of SNAP fraud, and one count of money laundering.
The Supplemental Nutritional Assistance Program (SNAP), formerly known as the Food Stamp Program, administered by the U.S. Department of Agriculture (USDA), provides eligible households with government subsidies for certain foodstuffs, and allows holders to exchange their SNAP benefits for food at authorized retail food stores.
Causey was the owner and operator of J&W Aseda Plaza, a convenience store on Main Street in Worcester. From April 2010 to October 2014, Causey conspired with others to commit SNAP fraud by purchasing SNAP benefits from recipients rather than exchanging them for food. Causey purchased the benefits at a discounted value of approximately fifty cents for every SNAP dollar. By so doing, Causey caused the USDA to electronically deposit into a bank account she controlled the full face value of the SNAP benefits fraudulently obtained. To provide customers with cash for the SNAP benefits, Causey used the cash she received from customers wishing to utilize MoneyGram services. In order to cover those transactions, she transferred money from the account where her SNAP funds were electronically deposited into the account she used for her MoneyGram business.
During the course of the four-year conspiracy, Causey defrauded the USDA of approximately $3,638,900 in SNAP funds.
United States Attorney Carmen M. Ortiz; William G. Squires, Special Agent in Charge of the U.S. Department of Agriculture, Office of Inspector General, Office of Investigations, Northeast Region; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. The case was prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.
Wickliffe mail carrier indicted for worker's compensation fraudRead the Press Release
A federal grand jury returned a two-count indictment charging Nicole M. Gates of Wickliffe, with false statements and fraud to obtain federal employees’ compensation, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
The indictment alleges that Gates, a mail carrier employed by the U.S. Postal Service, falsely represented her physical limitations in connection with her receipt of workers’ compensation benefits.
Assistant United States Attorney Megan R. Miller is prosecuting the case following an investigation by the U.S. Postal Service Office of Inspector General.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Virginia Electrician Pleads Guilty to Attempting to Obstruct the IRSRead the Press Release
A Cumberland, Virginia, resident pleaded guilty to one count of corruptly endeavoring to impair and impede the due administration of the internal revenue laws, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Richard Alex, a self-employed low-voltage electrician, admitted that he did not file a timely or valid tax return for more than a decade. For tax years 1998 and 2000 through 2003, Alex filed a tax return on which he falsely claimed that he had not earned any income. Alex failed to file any tax returns for the 2004 through 2013 tax years, despite receiving income above the filing threshold each year, as well as numerous warnings and notices from the Internal Revenue Service (IRS).
According to court documents, Alex attempted to conceal his assets and income to prevent the IRS from collecting his unpaid taxes. Starting in 2004, Alex used bank accounts held in the names of nominees to receive income he earned from dispatch companies for subcontract work. Alex also provided false information to a tax return preparer for the purpose of preparing federal tax returns for Alex’s nominee business, Cole Data Services.
Alex’s sentencing hearing is scheduled for Oct. 5. He faces a statutory maximum sentence of three years in prison. Alex also faces financial penalties and a term of supervised release.
Acting Assistant Attorney General Ciraolo commended special agents of IRS–Criminal Investigation, who investigated the case, and thanked the U.S. Attorney’s Office for the Western District of Virginia for their assistance, as well as Trial Attorney Sean Beaty of the Tax Division and Assistant U.S. Attorney C. Patrick Hogeboom, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
U.S. Attorney Ortiz Announces Creation of the Office of Public Affairs and External EngagementRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today the creation of the Office of Public Affairs and External Engagement (OPAEE). The new executive level Office will be led by Christina DiIorio-Sterling who Ortiz appointed as Chief.
“I am thrilled to announce the creation of the Office of Public Affairs and External Engagement,” said U.S. Attorney Ortiz. “Effective public communication and active community engagement are critical to the success of our public safety mission. OPAEE bridges the gap between the courtroom and the public, enhancing the Office’s ability to anticipate, respond and provide assistance to the public and media.”
During Ortiz’s tenure, the U.S. Attorney’s Office has worked to increase public safety through expanded community outreach and engagement. Among other things, Ortiz’s Office has been in local communities fostering communication and positive messaging to youth through the Your Future, Your Decision program in schools. The Office has also led monthly roundtables with the BRIDGES Collaborative (Building Respect in Diverse Groups to Enhance Sensitivity) and expanded outreach efforts to address discrimination in underserved communities. The Office has also become a leader in strategic planning for the successful reintegration of formerly incarcerated individuals helping support their efforts to lead successful and productive lives upon release.
The OPAEE will enhance the efficiency and effectiveness of these efforts by housing them together in a single executive-level unit led by a member of Ortiz’s senior management team. It will also enhance relationships with the law enforcement community by offering training on emerging trends of criminal activity and officer safety, as well as partnership for grant funding. Finally, it will oversee the work of the Office’s skilled and dedicated victim witness coordinators, who provide critical assistance to victims and witnesses in federal cases that range from white collar crime and terrorism to child exploitation and human trafficking.
As Chief of the OPAEE, DiIorio-Sterling, who will continue to serve as the U.S. Attorney’s Office primary spokesperson and advisor to the U.S. Attorney, will supervise a professional staff of public information officers, community relations coordinators, outreach specialists, victim witness advocates, and reentry and law enforcement engagement staff. She will also oversee policymaking and long-range planning in communications strategy, victim witness matters, outreach programs, effective prevention and reentry programs, and cooperative relationships with law enforcement partners.
“I am confident that the OPAEE will enable the U.S. Attorney’s Office to enhance our work both inside and outside of the courtroom,” said U.S. Attorney Ortiz. “Our staff of experienced and dedicated professionals with expertise in media relations, law enforcement coordination, and victim-witness services, will work cooperatively with legal colleagues and law enforcement partners in our common pursuit of justice for all Americans.”
U.S. Attorney Neronha Names Criminal Chief, Deputy Criminal ChiefRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha today announced the appointment of Assistant U.S. Attorney William J. Ferland to the position of Criminal Chief and Assistant U.S. Attorney Sandra R. Hebert to the position of Deputy Criminal Chief.
Mr. Ferland, a career prosecutor for more than 26 years, joined the United States Attorney’s Office in Rhode Island in May 2010, after having served as a Rhode Island state prosecutor for more than 20 years. Mr. Ferland has led numerous high-profile criminal investigations and prosecutions, including the dismantling of the New England La Cosa Nostra in Rhode Island.
Ms. Hebert joined the United States Attorney’s Office in Rhode Island in June 2006, after having served as an Assistant U.S. Attorney in the Western District of Texas and as an officer in the U.S. Army Judge Advocate General Corps at Fort Hood, Texas. Ms. Hebert has led numerous criminal investigations and prosecutions, including the dismantling of several conspiracies which defrauded the government of millions of dollars.
In announcing the appointments, United States Attorney Peter F. Neronha said, “Bill Ferland and Sandy Hebert are experienced, talented attorneys with sound judgment and excellent leadership skills. I have known both of them for many years, and am confident that they will serve this Office and the people of Rhode Island extraordinarily well in their new positions.”
Background
Assistant U.S. Attorney William J. Ferland
Since being appointed an Assistant U.S. Attorney in May 2010, Mr. Ferland has, among his responsibilities, overseen the investigation and federal prosecution of organized crime in Rhode Island. These investigations and prosecutions resulted in the dismantling of the leadership of the New England La Cosa Nostra in Rhode Island, and the prosecution of numerous members and associates of organized crime. Additionally, Mr. Ferland has successfully led several investigations and prosecutions of defendants in arson for profit schemes and numerous violent crime matters, including drug trafficking conspiracies and firearms cases.
Beginning in June 2012, and until his appointment as Criminal Chief, Assistant U.S. Attorney William J. Ferland served as Senior Litigation Counsel.
A former patrolman, detective and police sergeant in East Greenwich from 1982-1990, Mr. Ferland also served in numerous capacities as a R.I. Assistant Attorney General, including Chief of the Criminal Division, Chief of the Narcotics and Organized Crime Unit, Chief of the Welfare Fraud Unit, and as Senior Trial Counsel, coordinating and overseeing the investigation and prosecution of high profile felony matters.
Mr. Ferland graduated magna cum laude from Rhode Island College in May 1982. He earned his Juris Doctor and graduated magna cum laude from New England School of Law in 1989.
Mr. Ferland serves as an adjunct faculty member at Roger Williams University Metropolitan College. Previously, he served as an instructor at the Rhode Island Police Training Academy.
Assistant U.S. Attorney Sandra R. Hebert
Since her appointment as an Assistant U.S. Attorney in the District of Rhode Island in June 2006, Ms. Hebert has led the investigation and prosecution of a wide variety of significant criminal matters, including drug trafficking and white collar crime cases.
Ms. Hebert served as OCEDTF Chief, where she supervised the investigation and prosecution of numerous significant drug traffickers and drug trafficking conspiracies. Additionally, Ms. Hebert oversaw the investigation and dismantling of several wide-ranging conspiracies which defrauded the government of millions of dollars of food stamp program money, and the prosecution of numerous defendants.
Prior to joining the U.S. Attorney’s Office in Rhode Island, Ms. Hebert served as an Assistant U.S. Attorney in the Western District of Texas - Midland Division, beginning in 2004. Prior to that appointment, Ms. Hebert served as an officer in the U.S. Army Judge Advocate General Corps at Fort Hood, Texas. While serving as an Army lawyer, Ms. Hebert was appointed as a Special Assistant U.S Attorney; served as defense counsel for over 30 court-martials; served as a Legal Assistance Attorney; and served as a Claims Attorney. Ms. Hebert rose to the rank of Captain prior to her discharge from the United States Army in 2004.
Ms. Hebert is a 1996 graduate of the University of North Carolina and received her law degree from the University of Virginia School of Law in 1999. After earning her law degree, Ms. Hebert served as a Law Clerk for U.S. District Court Judge John D. Rainey in the U.S. District Court for the Southern District of Texas.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two who worked in Toledo real estate sentenced to two-and-a-half years in prison for $1.5 million bank fraud conspiracyRead the Press Release
Two people who worked in the real estate business in the Toledo area were both sentenced to more than two-and-a-half years in prison for their roles in a $1.5 million conspiracy to defraud several banks, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigations.
Timothy R. Bradley, 41, now of Cary, N.C., and Martha E. Ednie, 54, of Toledo, were each sentenced to 30 months in prison.
Bradley was previously found guilty of one count commit bank fraud and 11 counts of bank fraud. Ednie was previously found guilty of one count commit bank fraud and 20 counts of bank fraud.
Bradley worked as a real estate agent working for various brokerages in the Toledo area, while Ednie was a mortgage broker who operated Apex Mortgage Company. Bradley and Ednie conspired with others, beginning in 2005, to obtain fraudulent mortgage loans by concealing the true purchase price from banks making the loans, according to court documents.
The true purchase price was represented by an “addendum” to the real estate contract, which lowered the purchase price. These addendums were signed near the time of closing and were concealed from the lenders. Unbeknownst to the lenders, they were loaning the home purchasers between 82 percent and 135 percent of each home’s value based on the adjusted addendum purchase price, according to court documents.
Bradley was listed as the real estate agent on the contracts and Ednie secured financing in her role as mortgage broker. Bradley and others attracted buyers to the scheme by advertising the properties as good sources of rental income and assuring cash back at closing, according to court documents.
The investigating agency in this case is the Internal Revenue Service-Criminal Investigations, Toledo. The case is being handled by Assistant United States Attorney Gene Crawford.
Two Kentucky Women Sentenced to Prison for Tax Refund Fraud ConspiracyRead the Press Release
Two Kentucky residents were sentenced to prison today after pleading guilty in January to conspiring to defraud the United States with respect to claims, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky.
Patsy Carnes and Diana Hill were sentenced to 22 and 16 months in prison, respectively. According to court documents, during the years 2011 and 2012, Hill and Carnes worked at the Bailey Switch Pawn Shop in Knox County, Kentucky. There, they conspired with Billy Ray Hamilton and Brian Hamilton, to submit false federal tax returns, sometimes intentionally using personal identifying information without the permission of the named taxpayer.
To advance the conspiracy, Hill and Carnes received and collected taxpayer information, including personal identifying information and provided that information to Billy Ray Hamilton and Brian Hamilton for use in the preparation of false tax returns. Carnes received the fraudulently obtained tax refunds and opened as the sole signature authority of bank accounts into which she knew that some of the fraudulently obtained tax refunds would be deposited.
In addition to the prison terms, U.S. District Judge Amul R. Thupar of the Eastern District of Kentucky ordered Hill to serve three years of supervised release and pay restitution to the Internal Revenue Service (IRS) in the amount of $226,652.89. Judge Thupar ordered Carnes to serve three yearsof supervised release and pay restitution to the IRS in the amount of $226,652.89.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Harvey commended special agents of IRS–Criminal Investigation, who investigated the case and Assistant U.S. Attorney Neeraj Gupta of the Eastern District of Kentucky and Trial Attorney Abigail Burger Chingos of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Two Individuals Indicted in July Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the July 2016 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
DUSTIN RAY BAILEY, age 36, of Oklahoma City, Oklahoma
Possession With Intent To Distribute Methamphetamine
Possession Of Firearm In Furtherance Of A Drug Trafficking Crime
Felon In Possession Of Firearm
ForfeitureThe Indictment alleges that on or about June 27, 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 a firearm, which had been shipped and transported in interstate commerce, in furtherance of a drug trafficking crime, that is, Possession with Intent to Distribute Methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Sallisaw Police Department and the Drug Enforcement Administration. The charges are in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by no less than 5 years or more than 40 years imprisonment, a fine up to $5,000,000.00 or both; Title 18, United States Code, Section 924(c)(1)(A), punishable by not less than 5 consecutive years imprisonment to any other sentence, up to a $250,000.00 fine or both and Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Dean Burris
THOMAS ZACHARY PETERS, age 32, of Lansing, Michigan
Failure To Register As Sex Offender
The Indictment alleges that from in or about November 2015, the exact date being unknown, until on or about June 1, 2016, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Michigan, in Eaton County, on or about April 7, 2005, for the offense of Criminal Sexual Conduct-2nd Degree, traveled in interstate and foreign commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The charge arose from an investigation by the Pittsburg County Sheriff’s Department and the United States Marshals Service. The charge is in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Edward Snow
Two Detained on Drug Trafficking, Bank Fraud ChargesRead the Press Release
PROVIDENCE, R.I. – Robert Wilkins, 25, and Christian M. Domenech, 24, of West Warwick, were arrested today and ordered detained in federal custody following initial appearances in federal court in Providence on drug trafficking and bank fraud charges.
The two men were arrested following an investigation by the FBI Safe Street Task Force into the defendants’ alleged drug trafficking activities, and an investigation by the Rhode Island State Police Financial Crimes Unit into allegations of bank fraud.
Robert Wilkins’ and Christian Domenech’s arrest and detention on federal criminal complaints charging them with trafficking crack cocaine, trafficking heroin and bank fraud are announced by United States Attorney Peter F. Neronha, Harold H. Shaw, Special Agent in Charge of the FBI Boston Division, and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
At the time of their arrest, Wilkins and Domenech were free on court ordered conditions of release on unrelated crimes. Wilkins, after having been sentenced in federal court in November 2014 to serve a sentence of one year and a day for trafficking crack cocaine, was released to federal supervised release in November 2015. His supervised release was set to expire in November 2018.
At the time of his arrest, Domenech was free on bail on a state charge of trafficking heroin, brought by the Newport Police Department in November 2015. Additionally, according to court documents, Domenech was previously convicted in Rhode Island state court on drug trafficking charges.
Wilkins is charged with 15 counts of distribution of crack cocaine, 3 counts of distribution of heroin, and one count each of conspiracy to distribute 28 grams or more of crack cocaine, conspiracy to distribute heroin and bank fraud. Domenech is charged with 12 counts of distribution of crack cocaine, 3 counts of distribution of heroin, and one count each of conspiracy to distribute 28 grams or more of crack cocaine, conspiracy to distribute heroin and bank fraud.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
According to court documents, it is alleged that a three-month investigation by the FBI Safe Streets Task Force into the defendants alleged drug trafficking activity included numerous purchases from the defendants of crack cocaine and heroin, ranging from one gram to seven grams for between $80 dollars and $350 dollars. Each alleged transaction was monitored by law enforcement.
Additionally, according to court documents, a Rhode Island State Police Financial Crimes Unit investigation determined that beginning in December 2015, the defendants allegedly created and deposited bogus checks into bank accounts each established and withdrew some of those funds. It is alleged that Christian Domenech deposited a total of $10,000 in bogus checks and withdrew $2,000 in cash. It is alleged that Robert Wilkins deposited a total of $10,000 in bogus checks and withdrew at total of $2099.55.
Earlier today, FBI Safe Street Task Force agents, with the assistance of the West Warwick Police Department and the DEA, executed a court authorized search of the defendants’ Church Street, West Warwick, residence. An undetermined quantity of cocaine, crack cocaine, heroin and approximately $800 in cash were seized. Law enforcement also seized two vehicles parked at the residence.
The FBI’s Safe Streets Violent Gang Task Force consists of agents and law enforcement officers from the FBI, RI State Police, Providence, Cranston, Woonsocket, and Central Falls Police Departments and the RI Adult Corrections Institutions.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Tahlequah, Tulsa Women Plead Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that REGINA ANN BALLARD, a/k/a REGINA HUMMINGBIRD, age 37, of Tahlequah, Oklahoma, and BRENDA AILEEN AIRINGTON, age 54, of Tulsa, Oklahoma, pled guilty in federal court.
BALLARD pled to an Information charging her with Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C), punishable by up to 20 years imprisonment, up to a $1,000,000.00 fine or both.
AIRINGTON pled guilty to Count 1 of a Superseding Indictment charging her with Drug Conspiracy, in violation of Title 21, United States Code, Section 846, punishable by not less than 10 years imprisonment, up to a $10,000,000.00 fine or both.
The Investigation revealed that Cody McClendon, an Indian Brotherhood (IBH) gang member, a former inmate with the Oklahoma Department of Corrections in McAlester, Oklahoma was utilizing a contraband cellular phone that he kept hidden on his person and inside his prison cell to facilitate the sale and distribution of methamphetamine. McClendon was doing this by using the cellular phone to communicate with co-conspirators via audio phone calls, text messages, and by communicating on the social media website Facebook. BALLARD and AIRINGTON were drug couriers for the organization.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Tahlequah Police Department, the Muskogee Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the Drug Enforcement Administration. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the pleas and ordered the completion of presentence investigation reports. The defendants will remain in the custody of the United States Marshals Service pending sentencing.
Assistant United States Attorney Shannon Henson represented the United States.
Statements from Attorney General Loretta E. Lynch and Deputy Attorney General Sally Q. Yates on the Passing of Associate Deputy Attorney General David MargolisRead the Press Release
Attorney General Loretta E. Lynch and Deputy Attorney General Sally Q. Yates released the following statements today on the passing of Associate Deputy Attorney General David Margolis, senior-most career employee at the Department of Justice.
Statement by Attorney General Lynch:
“David Margolis was a dedicated law enforcement officer and a consummate public servant who served the Department of Justice – and the American people – with unmatched devotion, remarkable skill and evident pride for more than half a century. From his earliest days as a hard-charging young prosecutor with a singular sense of style to his long tenure as one of the department’s senior leaders, David took on our nation’s most pressing issues and navigated our government’s most complex challenges. To generations of Justice Department employees, he was a respected colleague, a trusted advisor and most importantly, a beloved friend. We are heartbroken at his loss and he will be deeply missed. My thoughts and prayers are with David’s family, his friends and all who loved him.”
Statement by Deputy Attorney General Yates:
“David Margolis was the personification of all that is good about the Department of Justice. His dedication to our mission knew no bounds, and his judgment, wisdom and tenacity made him the “go-to” guy for department leaders for over 50 years. David was a good and loyal friend to all of us, and his loss leaves a gaping hole in the department and in our hearts.”
St. Cloud Man Indicted for Stealing More Than $350,000 from Minnesota BreweryRead the Press Release
United States Attorney Andrew M. Luger today announced a superseding indictment charging ADAM JONATHAN MARTIN, 35, for stealing more than $350,000 from a brewery at which he worked, and for fraudulently obtaining an additional $330,000 from purported investors in a fraudulent investment scheme. MARTIN is charged with six counts of wire fraud, three counts of monetary transactions in criminally derived property, and one count of aggravated identity theft.
According to the superseding indictment, while MARTIN was a controller at a Minnesota-based brewery, he stole more than $350,000. After MARTIN left the company in November of 2014, an investigation revealed that in December 2011, MARTIN allegedly transferred more than $240,000 from the company’s business checking account to a business brokerage account that MARTIN opened and controlled.
According to the superseding indictment, MARTIN used his sister-in-law’s name and personal identifying information to open the aforementioned business brokerage account. He listed the name of the business entity on the account as “DCI Change” and characterized his sister-in-law as the “director” of DCI Change.
According to the superseding indictment and documents filed in court, MARTIN used the fraudulently obtained funds for various personal expenses, including to make a $106,000 down payment on a new home. MARTIN also allegedly used his employer’s credit card to pay for $78,000 worth of personal expenses, including on an all-inclusive vacation resort. Finally, the investigation revealed that MARTIN had allegedly stolen $30,000 in cash from the brewery.
According to the superseding indictment and documents filed in court, MARTIN also was involved in a separate Ponzi scheme in which he defrauded friends, relatives, and acquaintances out of more than $330,000, claiming he would make legitimate investments. Instead, he used the victims’ money to pay for personal expenses and to pay off previous investors.
A trial is scheduled for August 29, 2016.
This case is the result of an investigation conducted by the FBI.
This case is being prosecuted by Assistant U.S. Attorney John Kokkinen.
Defendant Information:
ADAM JONATHAN MARTIN, 35
St. Cloud, Minn.
Charges:
-
Wire fraud, 6 counts
-
Money laundering, 3 counts
-
Aggravated identity theft, 1 count
-
Springfield Man Sentenced for Firearm PossessionRead the Press Release
BOSTON – A Springfield man previously convicted of rape was sentenced in U.S. District Court in Springfield today in connection with unlawfully selling a firearm and ammunition.
Hector Nieves, 35, was sentenced by U.S. District Court Judge Mark G. Mastroianni to five years in prison and three years of supervised release. In April 2016, he pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon.
On Sept. 2, 2015, Nieves negotiated the sale of a .22 caliber pistol and ammunition to a cooperating witness. He received the cash from the cooperating witness, and arranged for an associate to deliver the firearm and ammunition. As a result of previous convictions for rape and failure to register as a sex offender, Nieves was prohibited from possessing a firearm and ammunition.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Lawrence J. Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement. The case was also investigated by the Western Massachusetts Gang Task Force. The case was prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Office.
South Florida Resident Sentenced to 4 Years in Prison for Filing Fraudulent BP Fund Claim in Connection with the Deepwater Horizon Explosion and Pollution IncidentRead the Press Release
A South Florida resident was sentenced to 48 months in prison, to be followed by three years of supervised release for her involvement in the filing of a false claim in connection with the Deepwater Horizon explosion and pollution incident in the Gulf of Mexico in April 2010.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Caridad Rioseco Alejandrez, 50, of Key West, Florida, previously pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2.
Her father, Raul Rioseco, 73, of Stock Island, Florida, was sentenced on April 12, 2016 to one year and a day in prison in connection with his involvement in a similar false claim. Rioseco was also ordered to serve six months of house arrest and a three-year term of supervised release. Rioseco was further ordered to make restitution payments to the Deepwater Horizon Fund in the amount of $144,606.57, which represented the money he unlawfully received from the Gulf Coat Claims Facility (GCCF) and the amounts received by certain other individuals based on fraudulent documents Rioseco provided in support of other fraudulent claims. Additionally, Rioseco was ordered to surrender to the State of Florida and the federal government all his permits and licenses associated with commercial fishing activities. Rioseco previously pled guilty to one count of mail fraud.
According to court filings and proceedings, in June 2010, BP established the GCCF for the purpose of administering and settling certain claims of individuals and businesses for costs, damages, and other losses incurred as a result of oil discharges due to the April 20, 2010 explosion and fire on the Deepwater Horizon, an oil exploration rig operating in the Gulf of Mexico. In August 2010, the GCCF began receiving and processing such claims of individuals and businesses for costs, damages, and other losses they had incurred as a result of the Deepwater Horizon incident, paying the claims from a $20 billion private Trust Fund established for that purpose.
Alejandrez and her father, Rioseco, filed fraudulent claims against the fund, in their own names, which resulted in them receiving $35,900 and $55,000, respectively, from the GCCF. The scheme to defraud the GCCF was carried out through mailings and through the use of the Internet, to open the claims and to provide required forms and documentation, including employment verification letters and tax return documents. Alejandrez produced and provided the documents to the GCCF on behalf of herself and her father. The documents were materially false and fraudulent and claimed Alejandrez and Rioseco were adversely affected by the spill and lost income in the months following the incident, when this was not the truth.
Rioseco represented himself to the GCCF to be a commercial fisherman, when he was retired and had not been an active fisherman for many years. A lobster boat, licenses, and permits in his name were in fact being used by others, and Rioseco suffered no loss of income or other adverse effect from the oil spill. Additionally, Rioseco admitted that he facilitated the filing of other false claims, in addition to his own fraudulent claims, by signing and providing notarized “Crewshare Statements” for at least five other individuals attesting that he had employed and paid wages to those persons as boat crewmembers during periods relevant to the GCCF claims process. The fraudulent statements were produced to support claims for compensation which were filed by Alejandrez with the GCCF, claiming approximately $89,000 for economic losses purported to have been suffered as a result of the Deepwater Horizon incident, despite the fact that none of the individuals were crewmembers aboard the vessel or had been fishing during the relevant time period. Additionally, according to the Florida Fish & Wildlife Conservation Commission, the oil spill had little if any effect on the Key West fishing industry with commercial landings in 2010, the year of the spill, and every year since.
Alejandrez created false income tax returns which she provided to the GCCF in support of her claim that her tax and document preparation business, located on Stock Island, lost income after the oil spill because her customers, primarily fishermen operating out of Stock Island, could no longer afford her services. To maximize her compensation, Alejandrez significantly increased her claimed income on returns for 2008 and 2009, over the income actually reflected in the tax returns filed with the Internal Revenue Service for those years. Alejandrez provided similar false documentation in the support of claims for many other individuals. A U.S. Postal Service document analyst evaluated Alejandrez’ bank records and found that contrary to the sworn statements on her claim forms, her income had increased substantially after the oil spill. The United States advised the Court that records established an actual loss due to the fraudulent claims of approximately $500,000, and that the amounts claimed, although not all paid, approached $1.5 million.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, the Department of Commerce, National Oceanic and Atmospheric Administration, Office of Law Enforcement, the United States Coast Guard Investigative Service, U.S. Immigration and Customs Enforcements Homeland Security Investigations and the support provided by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Thomas Watts-FitzGerald, Deputy Chief of the Economic and Environmental Crimes Section.
Members of the public can report fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, including the 2010 Deepwater Horizon oil spill, to the National Center for Disaster Fraud (NCDF) by calling 877-NCDF-GCF (877-623-3423), sending a fax to (225) 334-4707, or emailing [email protected].
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Smithfield Man Sentenced for Being A Felon in Possession of A FirearmRead the Press Release
RALEIGH – The United States Attorney Attorney’s Office for the Eastern District of North Carolina announced that today in federal court today, Chief United States District Judge James C. Dever III sentenced ROGER WATSON, III, 29, of Smithfield, North Carolina to 102 months followed by 3 years supervised release for possession of a firearm by a felon.
WATson was named in an Indictment filed on January 5, 2016 charging him with being a felon in possession of a firearm and he pled guilty to that charge on April 4, 2016.
On June 29, 2015, officers with the Johnston County Sheriff’s Office (JCSO), responded to a burglary on Stewart Road in Four Oaks, North Carolina. Upon arrival, the victim informed officers that he returned home to find an unfamiliar vehicle, later determined to be registered to ROGER WATSON, III, parked in his backyard. Moments later, the victim was confronted by
WATSON and an unidentified male, both of whom pointed firearms at the victim, directed him to move his truck, and then fled the scene. The victim obtained WATSON’S license plate number and provided it to officers, who then responded to the defendant’s residence and observed WATSON driving towards his home. Officers conducted a traffic stop on WATSON and took him into custody. During the arrest, WATSON informed officers they had the wrong car because his car was broken and leaking power steering fluid. He further asserted that he had just purchased the jewelry in his car from an unknown male in Selma, North Carolina. After a search of the defendant’s vehicle and cellular phone, as well as a review of the physical evidence and witness statements, officers linked WATSON to two residential burglaries in Four Oaks, during which forced entry was made into each residence by prying open the front or rear door.
On June 30, 2015, WATSON provided an unprotected statement admitting to the burglaries on Stewart Road, as well as two burglaries on Devils Racetrack Road. WATSON asserted that the victim on Stewart Road owed him money, and that his accomplice (unidentified) took the victim’s gun out of his truck. Thereafter, WATSON kept the gun as collateral. WATSON declined to identify the second suspect, or the location of any additional stolen property.
On July 1, 2015, officers recovered photographs of a rifle and a shotgun stored in WATSON’S cellular phone, firearms which were subsequently confirmed stolen from the burglary on Lee’s Union Church Road. On July 2, 2015, officers served a search warrant at WATSON’S home; however, no additional stolen property was located.
On September 16, 2015, officers met with WATSON’S parents at the Sheriff’s Office storage lot, in order to return WATSON’S vehicle to them; however, the vehicle was inoperable. While attempting to locate the car battery, officers removed the air filter, at which time they discovered a loaded .22 caliber revolver, the handgun stolen from the burglary on Stewart Road.
The investigation revealed WATSON is responsible for the possession of five firearms, all of which were stolen during two residential burglaries between June 18, 2015, and June 29, 2015.
Investigation of this case was conducted by the Johnston County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Frank Bradsher represented the government.
# # #
News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce within 48 hours of release.
Seven Plead Guilty in Multi-State Cocaine ConspiracyRead the Press Release
PITTSBURGH - Seven individuals, including four residents of Western Pennsylvania, two from Texas, and one from Florida, pleaded guilty in federal court to charges of violating federal narcotics and money laundering laws, United States Attorney David J. Hickton announced today.
The defendants listed below pleaded guilty late last month before United States District Judge Arthur Schwab: Jeffrey Turner, age 35, of McKeesport, Pennsylvania; April Racan, age 37, of of McKeesport, Pennsylvania; Joseph Borrelli, age 49, of Glassport, Pennsylvania; Daniel Cosme, age 35, of San Benito, Texas; Hugo Balboa, age 48, of Brownsville, Texas; Brian Kettering, age 29, of Charleroi, Pennsylvania; and
William Coulson, age 50, formerly of McKeesport, Pennsylvania but now of St. Augustine, Florida.In connection with the guilty pleas, the court was advised that between 2011 and 2015, a cocaine source of supply in Brownsville, Texas mailed dozens of packages of cocaine to Jeffrey Turner and April Racan in Elizabeth and McKeesport, in Allegheny County. Approximately eight kilograms (about 18 pounds) of cocaine were sent in this fashion.
Turner and Racan then sold the cocaine to Brian Kettering and others. Although drug proceeds in the form of cash were generally sent back to the source of supply in Texas, during a six-month period of time in 2012, postal money orders were purchased by Kettering and William Coulson, at the direction of Turner and Racan. The money orders totaled at least $116,700 and were sent by Turner and Racan from Pittsburgh back to Texas to a Dairy Queen managed by Daniel Cosme. Cosme turned the money orders over to the source of supply, who used Hugo Balboa to launder the money orders by depositing them into various bank accounts.
Joseph Borrelli, at that time Postmaster in West Newton, Pa., aided the drug conspiracy by providing addresses for vacant homes where the cocaine packages could be sent. When they arrived at the post office, the packages would be diverted to Turner and Racan.
Turner, Racan, Borrelli and Kettering were convicted of conspiracy to distribute cocaine. Turner, Racan, Cosme, Balboa, Kettering and Coulson were convicted of money laundering conspiracy.
Dante Lozano, the eighth individual charged in the indictment, is in custody and in the process of being returned to the Western District of Pennsylvania to face drug and money laundering conspiracy charges.
Judge Schwab scheduled the following dates for sentencing: October 19, 2016 – Racan and Kettering; October 20, 2016 – Cosme; October 26, 2016 – Balboa; October 27, 2016 – Turner; and
November 2, 2016 – Coulson and Borrelli.The law provides for a maximum total sentence of years and up to life in prison, a fine of $ or both on the drug conspiracy count, and a sentence of not more than 20 years in prison, a fine of $500,000, or both on the money laundering conspiracy count.
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 is prosecuting this case on behalf of the government.
The in Pittsburgh and the Drug Enforcement Administration in Brownsville, Texas, conducted the investigation leading to the indictment in this case.
Schenectady heroin dealer sentenced to 60 monthsRead the Press Release
ALBANY, NEW YORK – George R. Hilts, Jr., age 48, of Schenectady, New York, was sentenced today to serve 60 months in prison after being convicted of distributing heroin.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration.
Senior U.S. District Judge Thomas J. McAvoy also sentenced Hilts to serve 3 years of supervised release, to begin upon his release from prison.
On March 4, Hilts pled guilty to selling heroin to another person twice in Schenectady in April 2014.
This case was investigated by the Drug Enforcement Administration and the Schenectady Police Department, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
San Ildefonso Pueblo Man Sentenced for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Juan Pena, 72, an enrolled member of the Pueblo of San Ildefonso who resides in Santa Fe, N.M., was sentenced today in federal court to 24 months in prison followed by five years of supervised release for his child sexual abuse conviction. Pena will be required to register as a sex offender when he completes his prison sentence.
Pena was arrested on Aug. 19, 2015, on an indictment charging him with abusive sexual contact of a minor between the age of 12 and 16 years. The indictment charged Pena with committing the crime on May 25, 2015, in the Pueblo of San Ildefonso in Santa Fe County, N.M.
On Feb. 5, 2016, Pena pled guilty to the indictment without the benefit of a plea agreement. Pena admitted that on May 25, 2015, he engaged in sexual contact with the victim, a child between the age of 12 and 16 years, with intent to abuse, humiliate, harass and degrade the victim.
This case was investigated by the Santa Fe office of the FBI and the Northern Pueblos Agency of the BIA’s Office of Justice Services.
The case was prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Rochester Man Charged with Federal Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. U.S. Attorney William J. Hochul, Jr. announced today that Charles Cummings, of Rochester, New York, was charged with possessing marijuana with intent to distribute, possessing a firearm in furtherance of a drug trafficking crime, and knowingly possessing firearms and ammunition after having been convicted of a felony. The charges carry a maximum possible penalty of life imprisonment, a fine of $500,000, or both.
Assistant U.S. Charles E. Moynihan, who will handle the prosecution of the case, stated that on August 6, 2015, members of the Greater Rochester Area Narcotics Enforcement Team and Members of the Rochester Police Department executed a New York State Court authorized search warrant at 4124 Lake Avenue, in the City of Rochester, and located approximately 30 firearms of various makes and models, as well as 851 rounds of ammunition of various calibers. Law enforcement officers also located approximately twelve ounces of a substance which they believed to be marijuana, which was inside of a safe in a bedroom, as well as over $1,800 in cash, which was inside a wallet in the same bedroom. Cummings was prohibited from possessing firearms and ammunition due to a 1998 conviction for Criminal Possession of a Controlled Substance in the Second Degree.
“Thanks to the actions of the Greater Rochester Area Narcotics Enforcement Team, Rochester Police Department, and ATF, over two dozen firearms have now been removed from the City,” said U.S. Attorney Hochul. “In order to prevent violence and gun crime before it occurs, this Office will continue to assist local law enforcement partners whenever we are able to do so.”
The charges are a culmination of an investigation on the part of the Greater Rochester Area Narcotics Enforcement Team composed of law enforcement personnel from the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Resident Agent in Charge James Burroughs, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
The fact that the defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Residents of Three States Charged with Unlawful Sale of Dietary SupplementsRead the Press Release
As part of the federal government’s ongoing efforts to address unlawful dietary supplements, the Department of Justice announced today criminal cases against three individuals for violations of the federal Food, Drug and Cosmetic Act (FDCA) related to purported disease cures. Each of the three individuals was also the subject of a civil case brought by the department, which they have now agreed to settle by entry of consent decrees of permanent injunction.
Each of the individuals and companies is alleged to have marketed and sold products as treatments for serious diseases including herpes, cancer, Alzheimer’s and AIDS, without obtaining approval from the U.S. Food and Drug Administration (FDA) to distribute such products as drugs.
“These enforcement actions highlight the department’s continued focus on unlawful dietary supplements, including unsupported cures for serious diseases such as cancer, Alzheimer’s, and herpes,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Consumers desperate for help, including Americans facing serious illnesses, sometimes turn to untested substances and forgo proven therapies. The Department of Justice is committed to seeking out those firms that risk public health in favor of profit.”
Guy Lyman and Flor Nutraceuticals LLC
Today, the United States filed a criminal information in the U.S. District Court for the Eastern District of Louisiana, charging Guy Lyman of New Orleans, Louisiana, with one misdemeanor count of introduction of an unapproved new drug into interstate commerce in violation of the FDCA. The information alleges that Lyman distributed the product Herpaflor as a herpes treatment, without receiving approval from FDA to distribute Herpaflor.
The United States simultaneously filed a civil complaint against Lyman and his company, Flor Nutraceuticals LLC, in the Eastern District of Louisiana. The civil complaint alleges that the defendants sold liquid and tablet drug and dietary supplement products named Herpaflor, which they intended as herpes treatments, but that the products were not approved by FDA. Lyman and Flor Nutraceuticals agreed to a consent decree of permanent injunction to prohibit the sale of Herpaflor as a treatment for herpes. The consent decree, which is subject to court approval, was also filed today.
James Hill
Today, the United States also filed a criminal information in the U.S. District Court for the Middle District of Florida, charging James Hill of Ocala, Florida, with one misdemeanor count of distributing an unapproved new drug in violation of the FDCA. The information alleges that Hill distributed the unapproved new drug Viruxo Immune Support (Viruxo) as a treatment for herpes.
The Justice Department previously announced the entry of a consent decree of permanent injunction against Hill on Feb. 26, to resolve a civil complaint filed against him in the Middle District of Florida. The injunction prohibits Hill from selling Viruxo as a herpes treatment.
Clifford Woods and Clifford Woods LLC
The Justice Department also announced today that Clifford Woods, of Los Angeles, California, pleaded guilty to a criminal charge for distribution of an unapproved new drug and agreed to entry of a consent decree. On May 9, Woods pleaded guilty in U.S. District Court for the Central District of California to a one-count information alleging that he promoted and distributed the product Taheebo Life Tea as a treatment for cancer, despite the fact that the product had not been approved as a drug by the FDA.
Woods, along with his company, Clifford Woods LLC, also agreed to a consent decree of permanent injunction to prohibit them from selling products as cures for a variety of diseases. The consent decree, which was entered by the Court on June 27, resolves a civil complaint that the department filed against Woods and Clifford Woods LLC in the Central District of California. The civil complaint alleged that the defendants, doing business as Vibrant Life, sold products that they promoted as treatments for cancer, type 2 diabetes, Alzheimer’s disease, HIV infection and AIDS. For instance, the complaint alleged that the defendants promoted certain products “as a treatment for cancer,” as having “shown results in tumor reduction,” and as being able to “change a cancer cell into a non-malignant cell.” The complaint further alleged that the defendants defrauded consumers by promoting certain products to cure, mitigate, treat, or prevent a disease despite the absence of well-controlled clinical studies or other credible scientific substantiation to support those claims.
Principal Deputy Assistant Attorney General Mizer thanked the Postal Inspection Service for its thorough investigation of these cases. The government is represented in the three criminal cases by Trial Attorney Ann Entwistle and in the three civil cases by Trial Attorney Daniel Zytnick, both of the Civil Division’s Consumer Protection Branch. The government is also represented in the civil case against Hill by Assistant U.S. Attorney Lacy R. Harwell Jr. of the U.S. Attorney’s Office for the Middle District of Florida. Deputy Chief Counsel Perham Gorji and Senior Counsel Claudia J. Zuckerman of the Department of Health and Human Services’ Office of General Counsel – Food and Drug Division provided assistance in these cases. Further assistance was provided by the U.S. Attorney’s Offices for the Eastern District of Louisiana, Middle District of Florida, and Central District of California.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Residents of Three States Charged with Unlawful Sale of Dietary SupplementsRead the Press Release
WASHINGTON – As part of the federal government’s ongoing efforts to address unlawful dietary supplements, the Department of Justice announced today criminal cases against three individuals for violations of the federal Food, Drug and Cosmetic Act (FDCA) related to purported disease cures. Each of the three individuals was also the subject of a civil case brought by the department, which they have now agreed to settle by entry of consent decrees of permanent injunction.
Each of the individuals and companies is alleged to have marketed and sold products as treatments for serious diseases including herpes, cancer, Alzheimer’s and AIDS, without obtaining approval from the U.S. Food and Drug Administration (FDA) to distribute such products as drugs.
“These enforcement actions highlight the department’s continued focus on unlawful dietary supplements, including unsupported cures for serious diseases such as cancer, Alzheimer’s, and herpes,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Consumers desperate for help, including Americans facing serious illnesses, sometimes turn to untested substances and forgo proven therapies. The Department of Justice is committed to seeking out those firms that risk public health in favor of profit.”
Clifford Woods and Clifford Woods LLC
The Justice Department also announced today that in June, Clifford Woods, of Los Angeles, pleaded guilty to a criminal charge for distribution of an unapproved new drug and agreed to entry of a consent decree. On May 9, Woods pleaded guilty in U.S. District Court for the Central District of California to a one-count information alleging that he promoted and distributed the product Taheebo Life Tea as a treatment for cancer, despite the fact that the product had not been approved as a drug by the FDA.
“Mr. Woods preyed upon the hopes of people suffering from cancer and other serious diseases,” said the United States Attorney for the Central District of California, Eileen M. Decker. “In addition to giving these desperate patients false hope, the unlawful sale of dietary supplements poses a risk to public safety because their contents are unregulated.”
Woods, along with his company, Clifford Woods LLC, also agreed to a consent decree of permanent injunction to prohibit them from selling products as cures for a variety of diseases. The consent decree, which was entered by the Court on June 27, resolves a civil complaint that the department filed against Woods and Clifford Woods LLC in the Central District of California. The civil complaint alleged that the defendants, doing business as Vibrant Life, sold products that they promoted as treatments for cancer, type 2 diabetes, Alzheimer’s disease, HIV infection and AIDS. For instance, the complaint alleged that the defendants promoted certain products “as a treatment for cancer,” as having “shown results in tumor reduction,” and as being able to “change a cancer cell into a non-malignant cell.” The complaint further alleged that the defendants defrauded consumers by promoting certain products to cure, mitigate, treat, or prevent a disease despite the absence of well-controlled clinical studies or other credible scientific substantiation to support those claims.
Guy Lyman and Flor Nutraceuticals LLC
Today, the United States filed a criminal information in the U.S. District Court for the Eastern District of Louisiana, charging Guy Lyman of New Orleans, Louisiana, with one misdemeanor count of introduction of an unapproved new drug into interstate commerce in violation of the FDCA. The information alleges that Lyman distributed the product Herpaflor as a herpes treatment, without receiving approval from FDA to distribute Herpaflor.
The United States simultaneously filed a civil complaint against Lyman and his company, Flor Nutraceuticals LLC, in the Eastern District of Louisiana. The civil complaint alleges that the defendants sold liquid and tablet drug and dietary supplement products named Herpaflor, which they intended as herpes treatments, but that the products were not approved by FDA. Lyman and Flor Nutraceuticals agreed to a consent decree of permanent injunction to prohibit the sale of Herpaflor as a treatment for herpes. The consent decree, which is subject to court approval, was also filed today.
James Hill
Today, the United States also filed a criminal information in the U.S. District Court for the Middle District of Florida, charging James Hill of Ocala, Florida, with one misdemeanor count of distributing an unapproved new drug in violation of the FDCA. The information alleges that Hill distributed the unapproved new drug Viruxo Immune Support (Viruxo) as a treatment for herpes.
The Justice Department previously announced the entry of a consent decree of permanent injunction against Hill on Feb. 26, to resolve a civil complaint filed against him in the Middle District of Florida. The injunction prohibits Hill from selling Viruxo as a herpes treatment.
Principal Deputy Assistant Attorney General Mizer thanked the Postal Inspection Service for its thorough investigation of these cases. The government is represented in the three criminal cases by Trial Attorney Ann Entwistle and in the three civil cases by Trial Attorney Daniel Zytnick, both of the Civil Division’s Consumer Protection Branch. The government is also represented in the civil case against Hill by Assistant U.S. Attorney Lacy R. Harwell Jr. of the U.S. Attorney’s Office for the Middle District of Florida. Deputy Chief Counsel Perham Gorji and Senior Counsel Claudia J. Zuckerman of the Department of Health and Human Services’ Office of General Counsel – Food and Drug Division provided assistance in these cases. Further assistance was provided by the U.S. Attorney’s Offices for the Eastern District of Louisiana, Middle District of Florida, and Central District of California.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Peruvian Woman Charged with Smuggling Counterfeit Currency through Logan AirportRead the Press Release
BOSTON – A Peruvian woman was charged in U.S. District Court in Boston in connection with smuggling over $1.2 million in counterfeit $100 bills through Boston’s Logan Airport.
Alejandrina Elsa Quispe Ramirez, 47, was arrested yesterday and charged in a criminal complaint with one count of delivering counterfeit currency and one count of importing counterfeit currency into the U.S. Quispe Ramirez was detained following an initial appearance before U.S. District Court Magistrate Judge Marianne B. Bowler.
It is alleged that authorities learned that Quispe Ramirez would be traveling to the U.S. on July 11, 2016, carrying a large amount of counterfeit U.S. currency concealed in her luggage. According to their U.S. visa applications, the purpose of the visit was allegedly to go to Shriners Hospital for Children. Federal agents confirmed that Quispe Ramirez’s younger son had previously been a patient of the hospital; however, he was not scheduled to return to the hospital until at least November 2016.
As alleged in the complaint, on July 11, 2016, Quispe Ramirez landed at Boston’s Logan Airport and federal agents confirmed that U.S. currency was concealed inside the luggage. The agents followed Quispe Ramirez as she took a taxi from Logan Airport to Somerville, and then transferred to a Mazda SUV with Pennsylvania license plates driven by another man. The agents allegedly stopped the vehicle after the driver made an illegal U turn in the middle of the street. During a search, agents found approximately 140 spindles each with $85,000 in counterfeit $100 notes. In total, the three bags contained approximately $1,212,200 in counterfeit currency.
Each charge provides for a sentence of no greater than 20 years in prison, three years of supervised release a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Division; Nora Ehrlich, Acting Director of Field Operations of U.S. Customs and Board Protection; and David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Lori J. Holik, Chief of Ortiz’s Major Crimes Unit.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pennsylvania Man Admits Stealing More Than $480,000 as Part of Interstate Burglary SchemeRead the Press Release
TRENTON, N.J. – A Lancaster, Pennsylvania, man today admitted transporting goods stolen through a string of commercial burglaries in New Jersey, New York, and Pennsylvania, U.S. Attorney Paul Fishman announced.
Jose Medina, 39, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to a superseding information charging him with one count of conspiracy to transport stolen goods in interstate commerce and one count of transportation of stolen goods in interstate commerce.
According to documents filed in this case and statements made in court:
Jose Medina admitted that from October 2012 through August 2014, he conspired with his brother, Eliezer Medina, 38, of Ronks, Pennsylvania, and others to steal money by burglarizing stores in New Jersey, New York, Pennsylvania, and elsewhere, and thereafter transporting the stolen money across state lines. The conspiracy involved at least 22 burglaries and caused over $480,000 in losses. When committing the burglaries, the conspirators would typically scout the target store in advance, disable the alarm system, and use pry-bars, electrical saws, and other tools to gain access to the stores and safes.
The conspiracy charge to which Jose Medina pleaded guilty is punishable by a maximum penalty of five years in prison and carries $250,000 fine. The interstate transport of stolen goods charge is punishable by a maximum penalty of 10 years in prison and $250,000 fine.
As part of his plea agreement, Medina has agreed to forfeit $487,364.44 in stolen proceeds. Sentencing is scheduled for Oct. 19, 2016.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Timothy Gallagher, and special agents of the FBI in Philadelphia Branch, under the direction of Special Agent in Charge William F. Sweeney Jr., with the investigation leading to today’s guilty plea. He also thanked the Paramus, New Jersey; Wayne, New Jersey; and Pennsauken Township, New Jersey, police departments; the N.J. State Police; and the Lancaster City, Pennsylvania; East Lampert, Pennsylvania; Manor Township, Pennsylvania; Manheim Township, Pennsylvania; and East Hempfield, Pennsylvania, police departments for their work on the case.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Criminal Division in Newark.
Defense counsel: Angelo Servidio, Esq.
Pendleton County man pleads guilty to unlawful possession of a firearmRead the Press Release
ELKINS, WEST VIRGINIA – Kenneth Wayne Davis, 42 of Harper, West Virginia, pled guilty today to unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Davis, who has a previous felony conviction in federal court, was discovered in unlawful possession of a .270 caliber rifle and a 12 gauge shotgun in November 2015 in Pendleton County, West Virginia. Davis was previously convicted of a felony offense of “Armed Bank Robbery” in the United States District Court for the Southern District of West Virginia.
Davis pled guilty today to one count of “Felon in Possession of a Firearm.” He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Forest Service Law Enforcement and Investigations, and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Owner of Debt Collection Company Convicted in Manhattan Federal Court for Massive FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JOHN TODD WILLIAMS, a/k/a “JT,” a/k/a “Joe Steele,” was convicted for conspiring to commit wire fraud in connection with a nationwide debt collection scheme that defrauded more than 6,000 victims throughout the United States out of millions of dollars. WILLIAMS was convicted following a five-day jury trial before the Honorable Richard J. Sullivan. WILLIAMS owned and operated a debt collection company based in Norcross, Georgia, called WILLIAMS, SCOTT & ASSOCIATES, a/k/a “WSA,” a/k/a “Warrant Services Association,” (“WSA”). WILLIAMS and his co-conspirators, whom he employed as debt collectors at WSA, tricked and coerced victims into making payments to WSA by making false threats and telling a host of lies. These threats included falsely stating that warrants had been issued for the victims’ arrest or that criminal charges were pending against them.
Manhattan U.S. Attorney Preet Bharara said: “For owning and operating a debt collection company that tricked, threatened, and coerced vulnerable victims into making payments, a unanimous jury convicted John Williams of conspiracy to commit wire fraud. The conviction today brings an end to Williams’s massive scam that used scare tactics and threats to coerce millions of dollars out of thousands around the country.”
According to the evidence presented at trial:
Between approximately 2009 and May 2014, employees working for WSA, led by WILLIAMS, routinely attempted to trick and coerce thousands of victims throughout the United States into paying millions of dollars in consumer debts through a variety of false statements and false threats. Employees of WSA typically used aliases, sometimes referring to themselves as “Detective” or “Investigator,” falsely advised consumers they had committed purported crimes such as “check fraud” or “depository check fraud,” and told consumers that if they failed to make immediate payments to WSA to resolve the matters, warrants would be issued for their arrest. WSA employees also falsely claimed that WSA had contracts with, or was otherwise affiliated with, certain federal or local law enforcement agencies, including the Department of Justice and the Federal Bureau of Investigation.
Among other false statements, WSA employees also claimed that WSA was a law firm or otherwise worked with lawyers, and that they would have the victims’ driver’s licenses suspended if those victims did not make payment to WSA. To falsely create an appearance of legitimacy, and further trick their victims into making payments, WSA employees routinely used legal terminology to invent legitimate-sounding, but completely bogus, explanations for the supposed imminent arrest of the victims, including for example, that the “statute of limitations” on the victims’ “civil legal rights” had expired and therefore the matter was now a criminal matter that could be resolved only by voluntary payment to WSA, or arrest. WILLIAMS and WSA employees also attempted to collect debts from victims who had already paid off their loans. When victims told WSA employees that they had already paid their debts, they were told, at WILLIAMS’s instruction, that “you can’t pay a debt with a debt instrument,” i.e., a credit card.
In total, from approximately 2009 through approximately May 2014, WSA obtained more than $4.1 million dollars from more than 6,000 victims in all 50 states.
* * *
WILLIAMS was convicted of one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
WILLIAMS is scheduled to be sentenced on October 28, 2016, at 2:30 p.m., by the Honorable Richard J. Sullivan.
Mr. Bharara praised the outstanding investigative work of the FBI. He also thanked the Consumer Financial Protection Bureau (“CFPB”) for referring this case to this Office, and the Federal Trade Commission (“FTC”) for its assistance in this investigation. Mr. Bharara also acknowledged with appreciation the extraordinary partnership between this Office and both the FTC and CFPB in the Office’s ongoing effort to combat consumer fraud.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to:
http://www.usdoj.gov//usao/nys/victimwitness.html
If you wish to report a crime by another debt collector, you may contact the FTC at 1-877-FTC-HELP. For guidance on coping with debt, and information about dealing with debt collection companies in particular, consider the following link to publications issued by the Federal Trade Commission:
http://www.consumer.fgc.gov/articles/0149-debt-collection
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sarah E. Paul and Benet J. Kearney represented the Government at trial.
New York City Police Officer Pleads Guilty to Sexual Exploitation of Children and Receipt of Child PornographyRead the Press Release
Earlier today, Alberto Randazzo, a Sergeant with the New York City Police Department (NYPD), pleaded guilty to two counts of conspiracy to sexually exploit a child and one count of receipt of child pornography. Today’s plea took place before United States District Judge Pamela K. Chen at the federal courthouse in Brooklyn, New York. At sentencing, Randazzo faces a mandatory minimum sentence of 15 years and a maximum of 30 years in prison on each of the top counts.
The plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, and William J. Bratton, Commissioner, New York City Police Department (NYPD).
According to previous court filings and statements made during the plea proceedings, from as early as 2010 through 2013, Randazzo targeted mothers through websites such as Ashley Madison and Match.com and persuaded them to sexually abuse their children so he could view it. Randazzo was caught in February 2013, when a witness found disturbing text messages on Randazzo’s phone and uncovered emails from women sending Randazzo pictures of them molesting their children. When the witness confronted him, Randazzo admitted his sexual interest in mothers having sex with their children.
Based on the information obtained from the witness and the photographs, the Internal Affairs Bureau (IAB) of the NYPD obtained a search warrant for Randazzo’s apartment and found numerous images and videos of child pornography, including a number of videos of child pornography that were created by Randazzo himself. Randazzo was arrested and charged in Queens Criminal Court. At the time of his arrest, Randazzo had been a member of the NYPD for 15 years. While on bail in connection with that case, Randazzo was discovered by Special Agents of HSI to be downloading child pornography, which led to the federal investigation and federal charges being filed.
In announcing the guilty plea, Mr. Capers praised the joint investigative efforts of HSI and the NYPD.
The government’s case is being prosecuted by Assistant United States Attorneys Tyler Smith and Moira Kim Penza.
The Defendant:
ALBERTO RANDAZZO
Age: 39
Astoria, New YorkE.D.N.Y. Docket No. 14-CR-189 (PKC)
New Jersey Couple and Two Diagnostic Companies Ordered to Pay $7.75 Million for Falsifying Diagnostic Test Reports and Failing to Properly Supervise TestsRead the Press Release
Defendants to be Sentenced on Related Criminal Charges in August
NEWARK, N.J. – A Morris County, N.J., couple and their diagnostic imaging companies were ordered to pay more than $7.75 million for knowingly submitting false claims to Medicare for thousands of falsified diagnostic test reports and the underlying tests, U.S. Attorney for New Jersey Paul J. Fishman announced today.
Judge Stanley R. Chesler, sitting in Newark federal court, also found the defendants liable for knowingly submitting false claims for neurological tests conducted without physician supervision.
Judge Chesler ordered Nita K. Patel, 53, and Kirtish N. Patel, 53, both of Rockaway, New Jersey, and two companies that they owned and operated, Biosound Medical Services Inc. and Heart Solution PC, of Parsippany, New Jersey, to pay the United States $5 million in damages and $2.75 million in civil monetary penalties, plus interest for a total of $7,756,865. Judge Chesler ordered these payments after granting the United States’ motion for summary judgment on the two False Claims Act counts of a civil complaint that was filed in November 2015.
The Patels each pleaded guilty Nov. 17, 2015, to informations charging them with health care fraud related to this conduct. Sentencing is currently scheduled for Aug. 16, 2016, before U.S. District Judge William H. Walls.
The government’s civil complaint alleged that defendants created fraudulent diagnostic test reports, forged physician signatures on these reports, and then billed Medicare for the fraudulent reports and the underlying tests that were used solely to create these reports. The complaint also alleged that defendants billed Medicare for neurological tests that they conducted without the required physician supervision.
The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in this case. The whistleblower – a former employee of Biosound who brought the misconduct to the government’s attention – will receive 15 to 25 percent of the more than $7.7 million recovered by the government.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Timothy Gallagher in Newark; and the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading the judge’s order.
The government is represented by Assistant U.S. Attorney Charles Graybow of the U.S. Attorney’s Office Health Care and Government Fraud Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.3 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
The qui tam case is captioned U.S. ex rel. Jane Doe v. Heart Solution, PC, et al., No. 14-3644 (D.N.J.).
Defense counsel:
Kirtish Patel: Anthony Fusco Jr. Esq., Passaic, New Jersey
Nita Patel: Frank Arleo Esq., West Orange, New Jersey
Counsel for relator:
Timothy J. McInnis Esq., New York
New Hampshire Man Sentenced to 20 Years Plus Life in Prison for Domestic Violence and Firearm Charges Arising Out of Saco Home InvasionRead the Press Release
Contact: Darcie N. McElwee
James W. Chapman, Jr.
Assistant United States Attorneys
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Gregory Owens, 59, of Londonderry, New Hampshire, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 20 years plus life in prison for interstate domestic violence and discharging a firearm during and in relation to a crime of violence in connection with a home invasion shooting in Saco, Maine on December 18, 2014. He was also ordered to pay over $80,000 in restitution. He was found guilty following a jury trial on February 16, 2016.
According to trial testimony, on December 18, 2014, Owens drove from New Hampshire to Maine intending to kill his wife who was an overnight guest at the home of friends living in Saco. During the home invasion, Owens shot his wife and the male home owner with a 9mm pistol. Both survived their injuries.
In imposing sentence, Chief Judge Torresen noted that this was one of the most serious crimes she had encountered. She said that the defendant crossed a state line planning to murder his wife and she called his trial testimony denying it “bunk.” “I don’t believe you, no one here believes you.” In imposing the sentence, she recognized that the defendant had exhibited the capacity to commit murder to achieve his ends two times and that she needed to protect the public because he would never change.
The investigation was conducted by the Saco Police Department; the Londonderry Police Department; the Maine and New Hampshire State Police; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Maine State Police Crime Laboratory.
New Bern Man Sentenced to 11 Years for Heroin Distribution and Firearm OffenseRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, Senior United States District Judge Malcolm J. Howard sentenced JAMES WALTON WILLIAMS, 32, of New Bern, North Carolina, to 132 months imprisonment, followed by 5 years of supervised release.
WILLIAMS was named in an Indictment filed on November 9, 2015. On March 7, 2016, WILLIAMS pled guilty to one count of Possession with Intent to Distribute a Quantity of Heroin and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
In June 2014, investigators with the Coastal Narcotics Enforcement Team (CNET) in Craven County, North Carolina, received information that WILLIAMS had traveled to New Jersey and obtained heroin for distribution. On June 18, 2014, CNET
Investigators conducted a traffic stop of a vehicle in Craven County being driven by WILLIAMS. After a canine alerted to the presence of narcotics in the vehicle, a subsequent search revealed a baggie containing an unspecified quantity of cocaine, half of a pill, a pill bottle containing six unknown pills, a cut straw with a powdery residue, and a burnt spoon.
Following his arrest, WILLIAMS agreed to take investigators to where the heroin was hidden. WILLIAMS led investigators to several locations including his house and a storage unit where heroin, methamphetamine, and cocaine were located, as well as one stolen, loaded revolver. WILLIAMS also admitted selling heroin off and on for about two years.
The investigation revealed that from 2011 to August 2014, WILLIAMS was accountable for the possession of at least 699.8 grams of heroin, 4.08 grams of methamphetamine, and .9 gram of cocaine. WILLIAMS is also responsible for possessing a firearm in connection with his drug activities.
Investigation of this case was conducted by the Coastal Narcotics Enforcement Team (CNET). CNET is a multi-agency narcotics unit based in Craven County that functions under the direction and control of the Chief Executives. CNET is comprised of sworn law enforcement detectives from the New Bern Police Department, Craven County Sheriff’s Office, Carteret County Sheriff’s Office, Jones County Sheriff’s Office, Havelock Police Department, Trent Woods Police Department, Bridgeton Police Department, River Bend Police Department, and the Pamlico County Sheriff’s Office. This investigation was also assisted by the Wilmington office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Naval Criminal Investigative Service; District Attorney Scott Thomas; and Pamlico County Sheriff Chris Davis. Assistant United States Attorney Scott Lemmon represented the government.
# # #
News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce within 48 hours of release.
Mother and Daughter Sentenced to Prison for Defrauding USDA’s Summer Food Service ProgramRead the Press Release
NORFOLK, Va. – Cindy Hall, 41, of Monroe, North Carolina, was sentenced today to 15 months in prison for defrauding the USDA’s Summer Food Service Program. Hall was also sentenced to three years of supervised release and ordered to pay $249,225.75 in restitution to the Virginia Department of Health.
Hall’s mother and co-conspirator Stephanie Almond, 61, of Franklin, was sentenced on June 29 to one year and one day in prison, three years of supervised release, and ordered to pay $249,225.75 in restitution.
Hall pleaded guilty on February 3 and Almond pleaded guilty on January 27 to charges of mail fraud, wire fraud and unlawful monetary transactions. According to the statement of facts and evidence at trial, Hall ran a non-profit organization known as Send Thee Community Outreach, allegedly to administer the Summer Food Service Program (SFSP), which is a USDA federally-funded program to feed children during the summer when free-lunch programs end at the conclusion of the school year. The Virginia Department of Health (VDH) administers the SFSP in Virginia. In 2012 and 2013, Hall submitted fraudulent claims to VDH for reimbursement, resulting in almost $250,000 in overpayment to Hall. Almond previously ran her own non-profit organization, Neighborhood Pride, which was a SFSP sponsor from approximately 2008 until 2011, when she was disqualified by VDH. Almond continued to be involved with the program with Hall, until Hall was told she was disqualified by VDH from receiving funds in 2014.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel W. Steven Flaherty, Superintendent of Virginia State Police; June W. Jennings, Inspector General of Virginia; and Phyllis K. Fong, Inspector General for U.S. Department of Agriculture, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Elizabeth M. Yusi and Kevin Hudson 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. 2:15-cr-132.
Montesano Man Pleads Guilty to Illegal Weapons PossessionRead the Press Release
A Montesano man who expressed a desire to attack the police or U.S. Military personnel out of allegiance to the Islamic State of Iraq and the Levant (ISIL), pleaded guilty today to possession of machine guns in U.S. District Court in Tacoma, announced U.S. Attorney Annette L. Hayes. DANIEL SETH FRANEY, 33, a/k/a Abu Dawuud was arrested in February 2016, following an undercover investigation during which he repeatedly violated a permanent protection order prohibiting him from possessing firearms. FRANEY faces up to ten years in prison when sentenced by U.S. District Judge Ronald B. Leighton on October 7, 2016.
According to the plea agreement and other records filed in the case, on multiple occasions between September and November 2015, FRANEY handled several firearms, to include firing fully automatic machineguns on one occasion. He did so while acknowledging he knew he was legally prohibited from possessing firearms.
FRANEY became the target of a federal investigation following reports from members of the public that they had heard FRANEY espouse violent rhetoric, particularly in support of the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. The citizen reports indicated FRANEY had made statements advocating the killing of non-Muslim Americans, particularly members of the U.S. military and law enforcement. One citizen reported that FRANEY repeatedly asked to purchase a firearm from the citizen, despite FRANEY’s admissions that he was not legally allowed to possess firearms.
During the investigation, FRANEY traveled with a person who he thought would assist him in acquiring weapons. In fact, the person was an undercover law enforcement officer who was investigating FRANEY in light of the above referenced reports. During the undercover investigation, FRANEY was captured on audio attempting to acquire firearms, particularly AK-47s. FRANEY also discussed what he deemed were good targets for an attack, all the while repeatedly referring to his support for ISIL.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg for the Western District of Washington, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. The investigation was conducted by the FBI’s Joint Terrorism Task Force, which combines investigators from federal, state, and local law enforcement. Task force members include the Seattle Police Department, the Pierce County Sheriff’s Department, the Federal Protective Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and elements of the U.S. Army’s 902nd Military Intelligence Group. In addition, the Grays Harbor County Sheriff’s Department contributed significantly to this investigation.
Monroe County Firearms Dealers Plead Guilty to National Firearms Act ChargesRead the Press Release
Former firearms and ammunition dealers pled guilty today to National Firearms Act charges, for their unlawful possession of an unregistered firearm.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, and Rick Ramsay, Sheriff, Monroe County Sheriff’s Office, made the announcement.
U.S. Attorney Ferrer stated, “The National Firearms Act imposes restrictions on sales of the most dangerous firearms: including concealable weapons, machine guns and sawed-off shotguns. Prosecuting the unlawful receipt and possession of unregistered firearms is part of our mission to reduce gun violence and make our community safer."
“ATF has a strong partnership with Federal Firearms Licensees. They are our first line of defense in stopping the illegal flow of firearms. These individuals betrayed that partnership and have been held accountable,” said Carlos A. Canino, Special Agent in Charge.
“We work very closely with our many law enforcement partners to disrupt the possession, sale and exportation of illegal firearms in south Florida,” said acting Miami HSI Special Agent in Charge Robert C. Hutchinson. “This was another successful opportunity to support the ATF and Monroe County Sheriff’s Office to protect the Florida Keys.”
“This case was just one example of the close partnership we have here in Monroe County between our local and federal agencies,” said Sheriff Rick Ramsay. “We all have the same goal: keeping our citizens safe.”
Jarvis Nelson Osorio, 36, of Miami Lakes, Thomas Joseph Willi, 52, of Key West, and Outbreak Ordnance, LLC, a federally licensed firearms dealer located in Big Pine Key, each pled guilty to one count of knowingly receiving and possessing an unregistered .38 caliber “cane gun,” a weapon or device capable of being concealed on the person from which a shot can be discharged through the energy of an explosive, in violation of Title 26, United States Code, Sections 5841, 5861(d), and 5871. As part of the defendants’ guilty pleas, Osorio, Willi, and Outbreak Ordnance, LLC must surrender their federal firearms licenses, which are required in order to engage in the business of dealing in firearms.
Sentencing is scheduled for October 4, 2016 before U.S. District Judge Jose E. Martinez. At sentencing, Willi and Osorio each face a maximum of ten years’ imprisonment. The company, Outbreak Ordnance, LLC, faces a maximum fine of $500,000.
According to court documents and information disclosed during hearings before United States Magistrate Judge Lurana S. Snow, Osorio and Willi owned and operated co-defendant Outbreak Ordnance, LLC, a firearms and ammunition retail store. Outbreak Ordnance, LLC was licensed to deal in National Firearms Act (“NFA”) weapons. The NFA is a comprehensive taxing scheme that regulates the manufacture, sale, and transfer of certain specially dangerous and concealable weapons, including short-barreled shotguns, short-barreled rifles, any weapon or device capable of being concealed on the person from which a shot can be discharged through the energy of an explosive, machineguns, silencers, and destructive devices.
According to court documents, on July 16, 2015, ATF agents executed a search warrant at Outbreak Ordnance, LLC’s retail store. There, ATF agents discovered records showing that the defendants unlawfully acquired fifteen unregistered NFA weapons, including a .38 caliber “cane gun.” ATF agents subsequently recovered the unregistered weapons, several of which had been advertised for sale on Outbreak Ordnance, LLC’s publicly accessible Facebook page.
Mr. Ferrer commended the investigative efforts of the ATF, HSI, and the Monroe County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Christopher Browne and Adam Fels.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mescalero Apache Man Pleads Guilty to Federal Arson ChargeRead the Press Release
ALBUQUERQUE – Theodore George Torres, 27, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pled guilty today in federal court in Las Cruces, N.M., to an arson charge. Under the terms of his plea agreement, Torres will be sentenced to 36 months in prison followed by not less than three years of supervised release. Torres also will be required to pay restitution in the amount of $86,299.42 to the victim of his criminal conduct.
Torres was arrested on Dec. 15, 2015, on a federal criminal complaint charging with arson and was indicted on that same charge on April 21, 2016. According to court filings, Torres set fire to a residence of a Mescalero Apache woman. Torres committed the crime on Oct. 30, 2014, on the Mescalero Apache Indian Reservation in Otero County, N.M. The complaint states that Torres was arrested on related tribal charges on Dec. 11, 2014, and remained in tribal custody until his arrest on the federal arson charge.
During today’s proceedings, Torres pled guilty to the indictment and admitted that on Oct. 30, 2014, he maliciously set fire to a dwelling located in Mescalero Apache Reservation. Torres acknowledged that the fire caused $86,299.42 worth of damage.
Torres has been in federal custody since his arrest and remains detained pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Manhattan U.S. Attorney Announces Arrests of Five Honduran National Police for Drug Trafficking and Related Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that five members of the Pólicia National de Honduras, i.e., the Honduran National Police, charged in a Superseding Indictment returned on June 29, 2016, have surrendered to face charges involving an alleged conspiracy to import cocaine into the United States and a related firearms offense. The five defendants, who arrived in the United States yesterday evening and will be presented and arraigned before U.S. Magistrate Judge Frank Maas later today in Manhattan federal court, are: Mario Guillermo Mejia Vargas, Juan Manuel Avila Meza, Carlos Jose Zavala Velasquez, Victor Oswaldo Lopez Flores, and Jorge Alfredo Cruz Chavez. Co-defendant LUDWIG CRISS ZELAYA ROMERO remains at large.
U.S. Attorney Preet Bharara said: “Less than two weeks after we announced charges against six Honduran National Police Officers for engaging in a massive drug conspiracy, five of those officers are now in custody in Manhattan. For allegedly conspiring to move tons of cocaine from the Honduran jungles to American cities, these Honduran police officers will now face these charges in an American court of law.”
According to the allegations contained in the Superseding Indictment[1], other court filings, and statements made during court proceedings:
Between approximately 2004 and approximately 2014, multiple drug-trafficking organizations in Honduras and elsewhere worked together, and with support from the defendants and others, to receive multihundred-kilogram loads of cocaine sent to Honduras from Venezuela and Colombia via air and maritime routes, and to transport the drugs westward in Honduras toward the border with Guatemala and eventually to the United States. For protection from official interference, and in order to facilitate the safe passage through Honduras of multihundred-kilogram loads of cocaine, drug traffickers paid bribes to public officials – including certain members of the Pólicia National de Honduras – for access to information about ongoing investigations, military and law enforcement checkpoints, and planned narcotics interdictions. The Honduran government recently declared an “emergency situation” with respect to the Pólicia National de Honduras, and established a Special Commission with authority to investigate corruption and dismiss or suspend members of the National Police, among other sanctions. As of the filing of this Superseding Indictment, the Special Commission has sanctioned several members of the Pólicia National de Honduras.
The defendants were members of the Pólicia National de Honduras who participated in and supported the drug-trafficking activities of, among others, Fabio Porfirio Lobo, the son of former Honduran president Porfirio Lobo Sosa, who pled guilty to a related drug-trafficking crime on May 16, 2016. In approximately early 2014, Lobo agreed to provide security and logistical support for the transportation through Honduras of a purported multi-ton load of cocaine that Lobo believed belonged to Mexico’s Sinaloa Cartel and would be imported into the United States. Lobo agreed to provide this assistance on the understanding that he would receive a financial stake in the cocaine worth over $1 million in profits. In or about June 2014, Lobo introduced two individuals he understood to be Mexican drug traffickers to the six defendants. During a meeting, the defendants displayed a map of Honduras and illustrated law enforcement checkpoints and a planned route for the cocaine. During the same meeting, the defendants each also agreed to accept a bribe in the amount of approximately $100,000, and to pay their subordinates a total of approximately $200,000 in additional bribes, in order to provide armed security for the cocaine as it transited Honduras before being imported into the United States.
* * *
Mejia Vargas, 46, Avila Meza, 45, Zavala Velasquez, 44, Lopez Flores, 43, and Cruz Chavez, 39, have each been charged with: (1) conspiring to import cocaine into the United States, and (2) conspiring to use and carry firearms during and in relation to, and to possess firearms in furtherance of, the cocaine-importation conspiracy. If convicted, these defendants face a mandatory minimum sentence of 10 years in prison and a maximum term of life in prison.
Lobo, who was arrested in the Republic of Haiti on May 20, 2015, and arrived in the United States on May 21, 2015, pled guilty before Judge Schofield on May 16, 2016, to conspiring to import cocaine into the United States. Lobo is scheduled to be sentenced on September 15, 2016, and faces a mandatory minimum sentence of 10 years in prison and a maximum term of life in prison.
The potential mandatory minimum and maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the Special Operations Division of the Drug Enforcement Administration (“DEA”), the DEA’s New York Division Strike Force, and the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Matthew J. Laroche, and Michael D. Lockard are in charge of the prosecution.
The charges in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manchester Man Arrested for Conspiracy to Distribute and Unlawful Distribution of MethamphetamineRead the Press Release
CONCORD – United States Attorney Emily Gray Rice announced that Rigoberto Ramirez Aldava, 40, of 345 Putnam Street, Apartment #1, Manchester, New Hampshire, appeared today before United States Magistrate Daniel Lynch and was arraigned on a criminal complaint which charges him with conspiracy to distribute and to possess with the intent to distribute controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1) and 846 and distribution of controlled substances, in violation of Title 21, United States Code, Section 841(a)(1).
According to documents that were filed in United States District Court and statements in the court proceeding, Ramirez Aldava, a citizen of Mexico, operated El Patron Sports Bar and Grill, LLC, located at 253 Wilson Street, Manchester, New Hampshire.
As part of the investigation, the United States Drug Enforcement Administration (“DEA”) received information that Ramirez Aldava was in possession of multiple kilograms of methamphetamine. On June 21, 2016, an undercover DEA Task Force Officer met with Ramirez Aldava at a location in Manchester, where Ramirez Aldava provided the undercover officer with a sample of approximately 34 grams of methamphetamine. On June 29, 2016, the undercover officer met with Ramirez Aldava at the same location in Manchester and purchased approximately 372 grams of methamphetamine for $8,000. On July 11, 2016, Ramirez Aldava was arrested as he travelled to a pre-arranged location in Manchester where he intended to sell the undercover officer approximately ten pounds of methamphetamine for $85,000. Approximately 5.13 kilograms were recovered from Ramirez Aldava’s vehicle at the time of his arrest.
A search of El Patron Sports Bar and Grill resulted in the seizure of approximately 2.03 kilograms of methamphetamine. A second search at Ramiez Aldava’s Putnam Street apartment resulted in the seizure of $6,000 of the serialized DEA currency utilized in the June 29th drug sale.
DEA reports that in this area, one gram of methamphetamine typically sells for between $150 to $200 dollars, and in the Northeast, larger quantities of the drug can sell for as much as $50,000 to $60,000 per kilogram.
“Methamphetamine is a highly addictive stimulant that damages the central nervous system and can cause paranoia often associated with violent behavior,” said DEA Special Agent in Charge Michael J. Ferguson. “This record-setting seizure of methamphetamine in New Hampshire demonstrates DEA’s commitment to disrupt and dismantle Mexican drug trafficking organizations who have become the primary manufacturers and distributors of methamphetamine to cities throughout the United States. DEA and its local, state and federal partners are committed to bringing to justice those that distribute this lethal drug.”
United States Attorney Rice said, “I want to thank the Drug Enforcement Administration, and the Manchester and Nashua Police Departments for their work on this case. The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to continue to target drug trafficking organizations which are responsible for the importation of large quantities of controlled substances into New Hampshire from source countries such as Mexico, and to bringing traffickers to justice.”
Magistrate Judge Lynch ordered Ramirez Aldava detained pending trial. The case is being prosecuted by Assistant United States Attorney Jennifer Cole Davis.
###
Man Sentenced for Participating in Prescription Fraud SchemeRead the Press Release
CONCORD – United States Attorney, Emily Gray Rice announced that Geoffrey McIntosh, 36, was sentenced by United States District Judge Paul Barbadoro to serve 100 months in federal prison for his participation in an oxycodone distribution scheme.
McIntosh, most recently of Derry, New Hampshire, pleaded guilty on March 25, 2016, to participating in a conspiracy to distribute, and possess with intent to distribute, oxycodone.
According to documents that were filed in United States District Court and statements in court proceedings, McIntosh and others passed dozens of false prescriptions for OxyContin pills at pharmacies in the Manchester and Nashua areas. McIntosh arranged for runners to pass these fraudulent prescriptions at pharmacies. The runners would then provide the pills to McIntosh in exchange for pills or cash. McIntosh would then sell the pills or have others sell them on his behalf. During the investigation, law enforcement officers identified over 100 fraudulent prescriptions for OxyContin, which were filled in 2009 and 2010.
The case was investigated by the Drug Enforcement Administration, with assistance from other law enforcement agencies, including the Nashua Police Department, Manchester Police Department, Merrimack Police Department, and the New Hampshire State Police. The case was prosecuted by Assistant United States Attorney John J. Farley.
###