Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 23 May 2016
Fort Totten, North Dakota, Man Sentenced to Federal Prison for Aggravated Sexual Abuse of a ChildRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on May 23, 2016, Jade Shilo OldRock, 42, of Fort Totten, ND, was sentenced before US District Judge Ralph R. Erickson after a federal jury found him guilty on July 17, 2015, of Sexual Abuse of a Child and Commission of a Federal Sex Offense by a Registered Sex Offender. OldRock was sentenced to a total of 40 years on the two counts, plus 10 years of supervised release. OldRock was also ordered to pay a $200 special assessment to the Crime Victims’ Fund.
In or about May 2014, OldRock was temporarily residing at the residence of the victim, who had not yet attained the age of 12, when he and the victim’s father came home from a night of drinking. The victim testified at trial that she woke up when OldRock began performing a sexual act on her while she was asleep.
OldRock has a previous conviction for Sexual Abuse of a Minor in 1998. Because he committed this offense while he was a registered sex offender, a consecutive 10 years was imposed along with the underlying 30-year minimum mandatory sentence for the sexual abuse of a child under the age of 12.
This case was investigated by the Federal Bureau of Investigation (FBI) and the Bureau of Indian Affairs - Fort Totten Agency.
Assistant US Attorneys Janice Morley and Matt Greenley prosecuted this case.
Fort Thompson Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Stuart Dion, age 32, was indicted on May 17, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 19, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about April 16, 2016, at Fort Thompson, Dion forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with an officer from the Bureau of Indian Affairs, while said officer was engaged in the performance of his official duties.
The charge is merely an accusation and Dion is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Dion was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Former VP Sentenced for Embezzling from Houston Police Federal Credit UnionRead the Press Release
HOUSTON – A 66-year-old former ex-vice president of the Houston Police Federal Credit Union has been ordered to federal prison for embezzlement that occurred for approximately 18 years, announced U.S. Attorney Kenneth Magidson. Cheryl Vickers was charged in a criminal information that was filed Dec. 7, 2015. She pleaded guilty Jan. 20, 2016.
Today, U.S. District Judge Melinda Harmon ordered Vickers to serve 41 months in prison and to pay $1,247,785 in restitution to the Houston Police Federal Credit Union. Prior to today’s sentencing, Vickers made a lump sum payment of $949,148 into the registry of the court to be applied toward the restitution owed.
At the time of her plea, she admitted that between January 1997 and February 2015 she embezzled at least $1,247,785 from the Houston Police Federal Credit Union while employed there as vice-president of accounting.
The embezzlement was ultimately discovered following her retirement in February 2015. At that time, a credit union customer brought in a “stale” check to have it re-issued. A “stale” check is an old check that has been issued by the credit union but never cashed. When credit union records showed that Vickers had already reissued the stale check, the credit union conducted an audit of Vickers’ banking activity.
The audit revealed that from January 1997 until her retirement, Vickers had embezzled at least $1,247,785 by various means, including, but not limited to, re-issuing stale checks. The credit union maintained a ledger of its stale checks which showed that Vickers reissued stale checks to credit card companies to pay her personal credit card bills. This included a Feb. 4, 2015, reissued stale check in the amount of $7,800 to pay her Chase Bank credit card bill. Some of the reissued checks even had her credit card number hand-written on them.
Vickers admitted that while employed at the Houston Police Federal Credit Union, she took credit union money without authorization or permission.
She was permitted to remain on bond pending her surrender to federal prison.
The charges are the result of an investigation conducted by FBI with assistance from the Federal Deposit Insurance Corporation – Office of Inspector General. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Former USD Basketball Star Sentenced for Camp Pendleton TheftsRead the Press Release
Special Assistant U.S. Attorney Kathleen J. O’Hara (619) 546-7945
NEWS RELEASE SUMMARY – May 23, 2016
SAN DIEGO – Former University of San Diego women’s basketball star Dominique Conners, 26, was sentenced today by U.S. District Judge Michael M. Anello to 90 days house arrest and three years’ probation for thefts she committed at Camp Pendleton in order to fund her gambling addiction. Judge Anello also ordered Conners to pay $11,779 in restitution after she stole the wedding gifts of a newly married couple who were staying at a beach cottage at the Del Mar Beach Resort on Camp Pendleton.
Ms. Conners, a graduate of La Jolla Country Day School, went on to star for the University of San Diego Torreos. Conners, a WNBA draft prospect, also played professional basketball in the Czech Republic. According to court documents and other admissions, her thefts at Camp Pendleton began shortly after she returned to the United States from Europe. Records showed that Ms. Conners was gambling several thousand dollars a week and had access to Camp Pendleton because her father is a retired Marine. Ms. Conners had been ordered to attend counseling for gambling addiction after her arraignment in November 2015.
The victims in this case had just been married and had over $11,000 in cash gifts in their beach cottage. Shoe prints were found on the window sill and a forensic analysis of Ms. Conners’s shoes matched her to the crime scene. One victim stated, “I felt violated and the false sense of security (on a military installation) was overwhelming.” Another victim said, “She stole a large sum of money from us. Money that was to help start our new life together after we got married.”
The Marine Corps Criminal Investigations Division (CID) conducted the investigation. The victims were able to recover their lost property.
CID also linked Ms. Conners to several other vehicle thefts. In those cases, Ms. Conners stole cash and gift cards from unlocked vehicles at the beach, but left the wallets and other personal items behind. Ms. Conners was ordered to pay restitution for those thefts as well.
DEFENDANTS
Dominique Conners Age: 26 Oceanside, CA
SUMMARY OF CHARGES
18 U.S.C. § 661 – Theft within the Special Maritime or Territorial Jurisdiction
AGENCY
Criminal Investigative Division, United States Marine Corps
Former Employee of Albuquerque Halfway House Pleads Guilty to Sexually Abusing Female InmatesRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Special Agent in Charge Monte A. Cason of the Department of Justice Office of Inspector General, Dallas Field Office, announced that a former employee of a halfway house in Albuquerque, N.M., has pleaded guilty to sexually abusing six female inmates who were under his custodial authority.
Eric Trujillo, 35, of Albuquerque, entered his guilty plea in federal court this morning to a six-count felony information charging him with sexually abusing persons in official detention. Under the terms of the plea agreement, Trujillo will be sentenced within the range of four to 15 years in federal prison followed by a term of supervised release to be determined by the court. Trujillo also will be required to register as a sex offender.
Trujillo was arrested in Nov. 2015, on a seven-count indictment charging him with aggravated sexual abuse and sexual abuse of persons in official detention. The indictment charged Trujillo with sexually abusing four women who were living at a halfway house in Bernalillo County, N.M., that provided lodging and other services for federal inmates under a contract with the U.S. Bureau of Prisons. According to the indictment, Trujillo committed the crimes between June 2012 and March 2014, while he was employed as a resident monitor by the halfway house.
The indictment was superseded on March 23, 2016, to add two more sexual abuse charges. The new charges alleged that between May 2012 and Sept. 7, 2012, Trujillo sexually assaulted two more women who were residing at the halfway house.
During today’s proceedings, Trujillo pled guilty to six counts of sexual abuse of a person in official detention. In entering the guilty plea, Trujillo admitted that between May 2012 and March 2014, he engaged in sexual acts with six female inmates who were living at the halfway house pursuant to a contract with the U.S. Bureau of Prisons. Trujillo acknowledged that at the time, he was employed as a resident monitor and guard by the halfway house and that the victims were in official detention and under his custodial, supervisory and disciplinary authority.
Trujillo was remanded into custody after entering his guilty plea. He will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Dallas Field Office of the Department of Justice Office of Inspector General with assistance from the Albuquerque Police Department, and is being prosecuted by Assistant U.S. Attorneys Novaline D. Wilson and Sarah J. Mease.
Former Detroit Public Schools Director of Grant Development Charged with FraudRead the Press Release
Criminal charges were filed today against Carolyn StarkeyDarden, a former Detroit Public Schools Director of Grant Development, alleging federal program fraud, announced U.S. Attorney Barbara L. McQuade.
Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
The charging document, known as a criminal information, charges that between 2005 and 2012, Carolyn StarkeyDarden, 69, of Detroit, as president and/or agent of companies she established to provide supplemental educational services to eligible students in Michigan, obtained at least $1,275,000 from DPS through a scheme in which she submitted fraudulent invoices for payment to DPS for tutorial services that were never rendered to DPS students.
United States Attorney Barbara L. McQuade said, “We hope that our work to uncover fraud in public school systems will deter others from stealing funds intended to educate children.”
“Ms. StarkeyDarden cheated the students of Detroit Public Schools out of valuable resources by fraudulently billing for her company’s services,” said David P. Gelios, Special Agent in Charge, FBI Detroit Division. “In fact, Detroit students were cheated twice by this scheme. Students that needed tutoring never received it, and money that could have been spent on other resources was paid to Ms. StarkeyDarden as part of her fraud scheme.”
StarkeyDarden faces up to 10 years in prison and fines of up to $250,000 on the charge of Federal Program Theft.
This case was investigated by agents of the FBI. This case is being prosecuted by Assistant United States Attorney Dawn N. Ison.
The FBI Detroit Area Corruption Task Force (DACTF) is led by the FBI Detroit Field Office, and consists of Special Agents and law enforcement officers with the FBI Detroit; the Detroit Police Department; the Michigan State Police; the Michigan Attorney General’s Office; the Internal Revenue Service – Criminal Investigation Division; the U.S. Department of Housing and Urban Development–Office of Inspector General; the U.S. Environmental Protection Agency–Office of Inspector General; the U.S. Department of Transportation–Office of Inspector General; the U.S. Department of Homeland Security–Office of Inspector General; the U.S. Department of Education–Office of Inspector General; and the U.S. Department of Labor–Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
A Criminal Information 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.
Former Deschutes County Sheriff's Office Captain Pleads Guilty to EmbezzlementRead the Press Release
EUGENE, Ore – Former Deschutes County Sheriff’s Office Captain Scott Raymond Beard, 46, of Bend, Oregon, pleaded guilty today to four felony offenses related to an embezzlement scheme where he stole $205,000 in taxpayer funds and laundered some of the tainted cash. The government alleges Beard laundered the cash to pay expenses on behalf of his co-defendant, Krista Jean Mudrick, 35, of Bend, Oregon. Mudrick is also a former employee of the Deschutes County Sheriff’s Office and is charged with making false statements to the FBI and IRS about Beard’s expenditures of the ill-gotten gains. Her case is pending, and she is presumed innocent.
Beard appeared in court today and, pursuant to a plea agreement, pleaded guilty to two counts of theft of funds from a federally funded program, and two counts of money laundering. A related count, passport fraud, was dismissed.
United States District Judge Michael McShane presided over Beard’s guilty plea and will sentence him on August 23, 2016. Beard faces up to twenty years in prison and will pay full restitution to Deschutes County.
This case was investigated by the FBI, IRS-Criminal Investigation, and the Deschutes County Sheriff’s Office. Assistant U.S. Attorney Christopher Cardani is prosecuting the case.
Former Deputy Sentenced in Multiple Fraud SchemesRead the Press Release
Contact Person: T. DeWayne Pearson (803) 929-3000
Columbia, SC - United States Attorney Bill Nettles stated that former Richland County Sheriff’s Deputy Maribel Crespo, age 40, of Columbia, South Carolina, was sentenced to 12 months and one day imprisonment for her role in multiple fraud schemes, including trafficking in counterfeit goods, impersonating a federal agent and tax fraud. According to information presented during her guilty plea, Crespo sold counterfeit luxury goods including fake Michael Kors handbags and Rolex watches over the internet. Additionally, Crespo posed as an officer of the Department of Homeland Security to defraud undocumented aliens by charging them thousands of dollars for counterfeit immigration paperwork. Crespo also entered a guilty plea for preparing fraudulent tax returns for other former Richland County Sheriff’s Deputies by adding false and fictitious information to the returns. Crespo would attach children’s information to the returns so that she could claim them as false dependents in an effort to artificially inflate the amount of the tax returns. The children used were typically citizen children of non-citizen Hispanics in the Columbia area. Crespo would forward a part the tax return to the parents of the dependent, some to herself and the remainder to the tax filer. Based on IRS calculations, Crespo caused over $100,000 in loss to the Treasury based on the fraudulent returns.
Internal Revenue Special Agent in Charge Thomas J. Holloman III said, “IRS, Criminal Investigation takes seriously any attempts to steal taxpayer money through false claims for refunds; and certainly when those false claims are made by someone sworn to uphold the law.” Special Agent in Charge of HSI Atlanta Nick S. Annan said “Criminal counterfeiters are economic parasites who harm legitimate businesses that pay taxes, create jobs and support our national economy. Anyone who thinks counterfeiting is a victimless crime should realize the proceeds of black-market sales are often funneled to support criminal organizations. Further, defrauding the government harms law-abiding citizens everywhere who pay their fair share and as such these cases will continue to be a major investigative priority for ICE Homeland Security Investigations.” The case was investigated by the Department of Homeland Security - Immigration and Customs Enforcement and the Internal Revenue Service and was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
#####
Former Anchorage Prosecutor Sentenced to over 13 Years in Prison for Massive Wire Fraud and Money Laundering SchemeRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a former Anchorage resident and former municipal prosecutor was sentenced to 160 months in prison for perpetrating a massive wire fraud and money laundering scheme encompassing $52 million. This is the largest wire fraud and money laundering conviction by amount ever prosecuted in Alaska.
Mark Avery, 57, who last resided in San Francisco, California, was sentenced today by U.S. District Judge Ralph R. Beistline. In addition to the prison term, Avery was also ordered to serve five years of supervised release, pay a $100,000 fine, and pay restitution to the May Smith Trust in the amount of $45,925,737.57. Avery was convicted on Feb. 29, 2016, following a two-week jury trial, of three counts of wire fraud, six counts of money laundering, one count of bank fraud, and one count of making false statements to a bank.
Avery was indicted by a federal grand jury in Anchorage in 2013. The indictment alleged that he defrauded the May Wong Smith and the May Smith Trust, of over $52 million dollars. Avery was, at the time, a trustee of the trust and used his influence to obtain access to $52 million of trust assets, all of which he expended in a period of six months. The jury’s verdict found that, in 2005 and 2006, Avery siphoned over $31 million of trust assets in a wire fraud scheme that defrauded the May Smith Trust.
Avery was re-charged after the Ninth Circuit Court of Appeals reversed Avery’s conviction on similar charges for honest services wire fraud in 2013 based on a Supreme Court decision that found the theory of honest services fraud under which Avery was previously convicted unconstitutional. The revised indictment filed against Avery charged that Avery engaged in a scheme to defraud the trust and May Wong Smith. Avery served as a trustee and lawyer to the May Smith Trust from early 2002, and received yearly compensation in the amount of $600,000 in trustee fees for his fiduciary role. Avery was also owner/operator of Avery and Associates, L.L.C., Security Aviation, Inc., and Regional Protective Services, L.L.C. Avery’s companies, many of which were created after receipt of trust funds, were engaged in air charter services, aeromedical evacuation, legal services, development of real property, and court imposed electronic monitoring.
During the trial, the jury heard that May Wong Smith was born in China in 1922 and, shortly after World War II, married Stanley Smith, a citizen of Australia. Stanley Smith amassed millions of dollars from post-war business investments and became a quiet benefactor of various charitable organizations. Stanley Smith died in 1968 and May Wong Smith never remarried.
In the early 1980s, May Wong Smith began to show signs of dementia and her mental condition began to deteriorate to the point where she was not capable of living without assisted care. The May Smith Trust was established on October 10, 1982, to provide for May Wong Smith’s support and maintenance during her life and certain charitable purposes after her death. Due to her mental condition, she had full time live-in care, who were hand-picked by Avery, from at least 1991 until her death in Nassau, Bahamas, on July 15, 2006. In spite of her compromised mental capacity, she remained a trustee until her death in July 2006.
The indictment alleged that Avery engaged in a scheme wherein he pledged assets of the May Smith Trust as collateral to secure a $52 million loan for himself. The jury’s verdicts found that Avery defrauded May Wong Smith and the May Smith Trust by using the $52 million loan funds for his personal use and to invest in various businesses without any indicia of normal business practices. The money was obtained and spent with no written business plan, no controls over how the money was to be spent, no repayment terms, no promissory note and none of the common safeguards of commercial investments. At trial the evidence showed that Avery exhausted the $52 million he obtained from the trust in six months using the funds for various purchases including two World War II era fighters, a P-51D Mustang, and an F4U-4 Corsair, other antique aircraft, real estate, a personal mortgage payoff, a 47' Carver Yacht, and a 37' heavy-duty patrol boat.
Avery was also convicted of bank fraud and making false statements to Wells Fargo Bank in October 2006 in connection with a $500,000 line of credit. Avery failed to list the $52 million dollar debt when applying for the loan, which, if listed, would have been material in Wells Fargo’s decision in evaluating the loan.
“Today’s sentencing brings to a close a lengthy investigation of one of the largest fraud cases perpetrated in Alaska,” said U.S. Attorney Loeffler. “Mr. Avery’s conduct involved a massive breach of fiduciary obligations and just convictions for someone who used his access to these huge funds to defy the wishes and bequests of the Smiths and spend their trust funds on personal debts, whims, wishes and pie in the sky ventures unsupported by any business planning. I commend the dedication of the IRS, FBI and prosecutors in this office who picked up this investigation and brought it forward to today’s result.”
“IRS Criminal Investigation is uniquely trained to follow the money in sophisticated and complex financial crimes such as the one perpetrated by Mark Avery. We will continue to partner with the FBI and DOJ in defense of those victimized by white collar crime,” stated Special Agent in Charge Teri Alexander.
Felon and Gang Member Sentenced to Federal Prison for Role in Meth DistributionRead the Press Release
A felon who conspired to distribute methamphetamine was sentenced March 29, 2016, to 15 years in federal prison.
Israel Grimaldo 26, from Sioux City, Iowa, received the prison term after a December 21, 2015, guilty plea to conspiracy to distribute methamphetamine. Grimaldo was previously convicted of a felony drug offense in Woodbury County, Iowa, on August 28, 2008.
Evidence presented at the guilty plea and sentencing hearings revealed that Grimaldo was involved in a conspiracy from about January 2013 through January 2014 that distributed at least 50 grams of pure methamphetamine. During and in relation to this conspiracy, defendant repeatedly obtained, possessed, and re-distributed methamphetamine. For example, he did so on both November 25, 2013 (distributing 7 grams of methamphetamine while armed with a firearm) and December 2, 2013 (distributing 3.5 grams of methamphetamine in a city park) among other times.
In furtherance of his illegal drug trafficking activities, defendant possessed firearms to intimidate his drug customers, guard himself, protect his illegal drugs and drug proceeds, and even rob individuals with whom he had drug disputes. For example, on November 25, 2013, defendant possessed a firearm in his waistband while involved in the 7 gram meth deal previously described, and on December 13, 2013 defendant participated in the robbery of a man (in the presence of a child) in connection with an illegal drug dispute. After the robbery, defendant and an accomplice fled from Iowa into Nebraska where they were later captured.
Grimaldo was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Grimaldo was sentenced to 180 months’ imprisonment. A special assessment of $100 was imposed. He must also serve an eight-year term of supervised release after the prison term. There is no parole in the federal system.
Grimaldo is being held in the United States Marshal’s custody until he can be transported to a federal prison.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 14-4068.
The case was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration , Sioux City, Iowa Police Department, Homeland Security Investigations (HIS); Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Follow us on Twitter @USAO_NDIA.
Federal Grand Jury Indicts Members of New Orleans Heroin Trafficking OrganizationRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green of the Middle District of Louisiana announced today the unsealing of a federal grand jury indictment against five members of a heroin trafficking network operating in the St. Roch neighborhood of New Orleans. As detailed below, the indictment charges the defendants with serious drug trafficking offenses.
-
Miguel L. Joseph, also known as “Pretty,” age 29, of New Orleans, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute heroin; distribution of heroin; unlawful use of a communications facility; and forfeiture.
-
Edward Lawrence, also known as “Burger,” age 32, of New Orleans, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute heroin; distribution of heroin; unlawful use of a communications facility; and forfeiture.
-
Vantrell Toomer, age 44, of Houston, Texas, and New Orleans, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute heroin; possession with intent to distribute heroin; and forfeiture.
-
Michelle Marie Jefferson, age 31, of New Orleans, Louisiana, is charged with charged with conspiracy to distribute and possess with the intent to distribute heroin; unlawful use of a communications facility; and forfeiture.
-
Danielle Denise Taylor, age 42, of New Orleans, Louisiana, is charged with charged with conspiracy to distribute and possess with the intent to distribute heroin; and forfeiture.
United States Attorney Green stated: “Our office, together with the FBI and our other federal, state, and local law enforcement partners, will aggressively pursue those who contribute to the heroin epidemic raging across our communities and country. I greatly appreciate the dedication of the agents and prosecutors working on this important matter.”
FBI New Orleans Division Special Agent-in-Charge Jeff Sallet stated: “The FBI and the people of New Orleans will not tolerate the scourge of gang activity including narcotics distribution and violence which accompanies this behavior. The New Orleans Gang Task Force is committed to bringing those involved in this illegal behavior to justice and dismantling criminal organizations we encounter during the course of our investigations.”
This matter is being investigated by the FBI New Orleans Division's Gang Task Force, with the assistance of the New Orleans Police Department, the St. Tammany Parish Sheriff's Office, the Jefferson Parish Sheriff's Office, and the Orleans Parish District Attorney's Office. This matter is being prosecuted by Assistant United States Attorneys Cam T. Le and Ryan Rezaei of the Middle District of Louisiana, who are serving as Special Attorneys to the United States Attorney General.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
-
El Monte Flores Gang Member Sentenced to 210 months in Federal Prison on Multiple Racketeering ChargesRead the Press Release
LOS ANGELES – An El Monte man who pled guilty to four separate crimes related to gang activity has been sentenced to serve 210 months in federal prison.
Christian “Bossy” Lafargo, 30, was sentenced Thursday by United States District Judge John A. Kronstadt after pleading guilty to multiple charges, including Racketeer Influenced and Corrupt Organizations (“RICO”) Conspiracy, Violent Crime in Aid of Racketeering -– Attempted Murder, Violent Crime in Aid of Racketeering – Conspiracy to Commit Murder, and Discharging a Firearm During and in Relation to a Crime of Violence.
The case was based on Lafargo’s activities in the El Monte Flores (“EMF”) gang, one of the oldest street gangs in Los Angeles County. According to the government’s sentencing papers, EMF has hundreds of Mexican Mafia affiliated gang members, spanning several generations. The Mexican Mafia is a powerful and violent prison gang that controls drug distribution and other illegal activities within the California penal system and on the streets of Southern California by organizing Latino street gang members for the purpose of establishing a larger network for the Mexican Mafia’s illegal activities. If a street gang does not comply with the demands of the Mexican Mafia, the prison gang will order the assault or murder the offending gang’s members, whether they are in custody or on the streets.
According to the indictment, the EMF gang seeks to control parts of the San Gabriel Valley through violence and intimidation, while deriving profits from its drug-trafficking operations and the scheme of “taxing” persons within the community. The crimes of EMF include drug-trafficking, extortion, theft, robbery, assault, hate crimes against African-Americans, and murder.
Lafargo, a long-time EMF member, participated in drug distribution, extortion, and crimes of violence on behalf of the enterprise and the most aggravating aspect of defendant’s offense conduct was his violent activity on behalf of the gang. In 2009, Lafargo beat and kicked a victim in the head and assaulted this victim while Lafargo possessed marijuana for distribution along with a 9mm firearm. In 2010, Lafargo attempted to kill a co-defendant, Jose Salas, because Salas had instructed an unidentified co-conspirator to sell drugs in the same area where Lafargo was selling drugs on behalf of Mexican Mafia members.
Even during his periods of incarceration, LaFargo continued to participate in criminal activity on behalf of the gang and Mexican Mafia within the walls of the State Prison.
“Gang violence like that employed by the EMF gang terrorizes the community and often victimizes the innocent,” said United States Attorney Eileen M. Decker. “Lafargo was an integral part of that violence and was unwilling to stop committing crimes, even when in State Prison. The sentence imposed in this case will protect the El Monte community for over 17 years.”
Lafargo was the latest defendant sentenced by Judge Kronstadt in the case against the EMF gang:
• Rafael Lomeli, 38, of El Monte, was sentenced to 130 months in custody on May 5, 2016;
• Mark Salazar, 25, of El Monte, was sentenced to five years in prison on April 21, 2016;
• Enrique Lopez, 50, of El Monte, was sentenced to 65 months in custody on March 24, 2016;
• Marie Gutierrez, 56, of El Monte, was sentenced to 27 months in custody on February 4, 2016; and
• Hiram Ramirez, 48, of El Monte, was sentenced to 32 months in custody on December 17, 2015.
Jose Salas, 38, of El Monte, has pled guilty and admitted to attempting to murder Lafargo and another gang member after Lafargo failed in his attempt to murder Salas. Salas has agreed to a sentence of 15 years in prison and will be sentenced later this year. James Gutierrez, 53, of El Monte, a Mexican Mafia member who was a “shotcaller” of the gang has pled guilty to conspiring to violate the RICO Act, conspiring to distribute controlled substances, including methamphetamine and heroin, and conspiring to launder money. Gutierrez has also agreed to a sentence of 15 years in prison and will be sentenced later this year.
The investigation into the EMF gang was conducted by a task force that included the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; IRS Criminal Investigation; and the El Monte Police Department.
Eighth Circuit Court of Appeals Affirms Conviction for Being a Felon in Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announces that the Eighth Circuit Court of Appeals has affirmed the district court in appeal no.15-1175, United States of America, appellee, v. Lance Majestic House, appellant.
House argued that the district court erred in denying his motion to suppress photographic identification evidence and that the identification tainted subsequent witness identifications of House as the suspect.
In July 2013, various witnesses saw a man pointing a handgun at another man in central Sioux Falls. The descriptions of the man with the handgun by different witnesses at each location were nearly identical. When confronted by police, House ran from the scene. Law enforcement showed a photo lineup that included House to the eyewitnesses, each of whom chose the photograph of House as matching the man they saw.
In January 2014, House was indicted by a grand jury for being a felon in possession of a firearm. At his jury trial, before the Honorable United States District Court Judge Karen E. Schreier, several witnesses made in-court identifications of House as the man they observed holding a firearm in July 2013. The jury returned a guilty verdict, and House was sentenced to 78 months of imprisonment, followed by three years of supervised release.
In today’s published opinion, the federal court of appeals affirmed the district court in all respects.
The case was investigated by the Sioux Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Jennifer Mammenga prosecuted the case at trial and handled the appeal for the government.
Easton Man Pleads Guilty to Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that on May 20, 2016, PAUL CARPENTER, 64, of Easton, waived his right to indictment and pleaded guilty to one count of filing a false tax return.
According to court documents and statements made in court, CARPENTER operated a chiropractic practice in Bridgeport. For the 2008 and 2009 tax years, CARPENTER intentionally mischaracterized personal expenses as deductible business expenses on his Schedule C relating to his chiropractic practice, including college tuition and numerous personal retail purchases. For the 2008 tax year, CARPENTER took false deductions totaling $308,084, resulting in a tax loss of $106,395, and for the 2009 tax year, he took false deductions totaling $183,283, resulting in a tax loss of $81,199
Judge Bolden scheduled sentencing for September 7, 2016, at which time CARPENTER faces a maximum term of imprisonment three years. CARPENTER has paid all back taxes, plus interest and penalties.
This matter has been investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Eagle Butte Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Cletis Creek, age 54, was indicted on May 17, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 19, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 1, 2016, and May 17, 2016, Creek, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under State Law, failed to register and update his registration.
The charge is merely an accusation and Creek is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Creek was released on bond pending trial. A trial date has not been set.
Eagle Butte Man Charged with Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child.
Lawrence Oakie, age 34, was indicted on April 13, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 16, 2016, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 30 years up to life in custody and/or a $250,000 fine, no less than five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
It is alleged that sometime between August 28, 2015, and August 31, 2015, Oakie knowingly engaged and attempted to engage in a sexual act with a child under the age of 12 at a home in Todd County, South Dakota.
The charge is merely an accusation and Oakie is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Oakie was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Man Charged with AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury and Assault by Strangulation and Suffocation.
Ronnie Antelope, Sr., a/k/a Ronald Noisy Hawk, Sr., was indicted on May 17, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 19, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about April 18, 2016, Antelope unlawfully assaulted his spouse, intimate partner and dating partner, and strangled her, resulting in serious bodily injury.
The charges are merely accusations and Antelope is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Antelope was released to a third party pending trial. A trial date has not been set.
Cape Girardeau Man Charged with Interstate Domestic Violence for 2011 Murder of his WifeRead the Press Release
Cape Girardeau, MO - The United States Attorney's Office announced today the unsealing of an indictment charging James Clay Waller II with Interstate Domestic Violence in violation of Title 18, United States Code, Section 2261(a)(1). The offense of Interstate Domestic Violence was enacted by Congress in 1994 as part of the Violence Against Women Act. A violation of the Act includes a possible prison sentence up to life imprisonment.
The indictment alleges that in June of 2011, Waller traveled back and forth between Illinois and Missouri with the intent to kill his wife, Jacque Sue Waller, and did in fact murder her. The indictment also seeks forfeiture of any proceeds that might be derived from a manuscript intended to be published as a book that details the facts of the murder.
In 2012 Waller was charged under state law with the murder of his wife, despite the fact that her body had never been recovered. That prosecution was resolved with Waller pleading guilty in exchange for a twenty-year sentence and leading authorities to the unmarked grave in Illinois where he had hidden and buried his wife’s body. During the guilty plea, Waller was specifically advised by the Court that any resolution of the state charges was not necessarily binding on federal authorities.
United States Attorney Richard Callahan commended the Cape Girardeau County Prosecuting Attorney’s Office for its handling of the state prosecution. He noted that although it is highly unusual for his office to follow a state prosecution with a federal prosecution of basically the same criminal conduct, "the facts and circumstances of this case begged for such a prosecution."
This murder has been investigated by a host of law enforcement agencies, including the Federal Bureau of Investigation, the Cape Girardeau County Major Case Squad, the Jackson City Police Department, the Cape Girardeau City Police Department, the Missouri State Highway Patrol and the Cape Girardeau County Sheriff’s Department.
The federal prosecution of the case will be handled by Assistant United States Attorney Larry H. Ferrell.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Canadian-Iranian Citizen Sentenced to Three Years in Prison for Conspiring to Violate Iran SanctionsRead the Press Release
Ali Reza Parsa, 45, a Canadian-Iranian dual citizen and resident of Canada, was sentenced to three years in prison for his participation in a conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).
The sentence was announced by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Preet Bharara of the Southern District of New York.
“Over the course of six years, Parsa repeatedly violated export control laws and aided Iranian entities in procuring high-tech electronic components that have both commercial and military uses,” said Assistant Attorney General Carlin. “With this sentence, he will be held accountable for circumventing important U.S. laws designed to protect our national security interests. One of our top national security priorities remains safeguarding our national assets from those who may wish to do us harm.”
“As he admitted in court, Ali Reza Parsa conspired to purchase high-tech electronic components – some used in the production of rockets and missiles – from American companies for eventual delivery to Iran through Canada,” said U.S. Attorney Bharara. “He has now been sentenced to three years in prison for his violation of federal law.”
Parsa was arrested in October 2014 following an investigation by the FBI and U.S. Department of Commerce’s Bureau of Industry and Security (BIS). He pleaded guilty on Jan. 20, 2016, before U.S. District Judge Ronnie Abrams of the Southern District of New York, who also imposed Friday’s sentence.
According to the indictment filed against Parsa and other court documents publicly filed in this case and statements made in court proceedings, including at Friday’s sentencing hearing:
Between approximately 2009 and 2015, Parsa conspired to obtain high-tech electronic components from American companies for transshipment to Iran and other countries for clients of Parsa’s procurement company in Iran, Tavan Payesh Mad, in violation of U.S. economic sanctions. To accomplish this, Parsa used his Canadian company, Metal PM, to place orders with U.S. suppliers and typically had the parts shipped to him in Canada or to a freight forwarder located in the United Arab Emirates, and then shipped from these locations to Iran or to the location of his Iranian company’s client. Parsa provided the U.S. companies with false destination and end-user information about the components in order to conceal the illegality of these transactions.
Parsa’s criminal scheme targeted numerous American technology companies. The components that Parsa attempted to procure included cryogenic accelerometers, which are sensitive components that measure acceleration at very low temperatures. Cryogenic accelerators have both commercial and military uses, including in applications related to ballistic missile propellants and in aerospace components such as liquid-fuel rocket engines.
In addition, following his arrest and while incarcerated, Parsa continued to violate the IEEPA and the ITSR by conducting business for Metal PM and Tavan Payesh Mad, including by ordering parts from German and Brazilian companies for Iranian customers. Parsa subsequently directed a relative to delete email evidence of his ongoing business transactions while in jail and emphasized the need for secrecy in their dealings.
Neither Parsa nor any other individual or entity involved in transactions that gave rise to his conviction applied for or obtained a license from the U.S. Department of the Treasury’s Office of Foreign Assets Control for the transactions.
Assistant Attorney General Carlin joined U.S. Attorney Bharara in praising the outstanding investigative work of the FBI and BIS.
This case was prosecuted by Assistant U.S. Attorneys Michael D. Lockard and Anna Skotko of the Southern District of New York, with assistance provided by Trial Attorney Mariclaire Rourke of the National Security Division’s Counterintelligence and Export Control Section.
Canadian-Iranian Citizen Sentenced in Manhattan Federal Court to Three Years in Prison for Conspiring to Violate Iran SanctionsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that ALI REZA PARSA, a Canadian-Iranian dual citizen and resident of Canada, was sentenced on Friday, May 20, 2016, to three years in prison for his participation in a conspiracy to violate the International Emergency Economic Powers Act (“IEEPA”) and the Iranian Transactions and Sanctions Regulations (“ITSR”). PARSA was arrested in October 2014 following an investigation by the Federal Bureau of Investigation (“FBI”) and United States Department of Commerce, Bureau of Industry and Security (“BIS”). PARSA pled guilty on January 20, 2016, before U.S. District Judge Ronnie Abrams, who imposed Friday’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “As he admitted in court, Ali Reza Parsa conspired to purchase high-tech electronic components – some used in the production of rockets and missiles – from American companies for eventual delivery to Iran through Canada. He has now been sentenced to three years in prison for his violation of federal law.”
Assistant Attorney General John P. Carlin said: “Over the course of six years, Parsa repeatedly violated export control laws and aided Iranian entities in procuring high-tech electronic components that have both commercial and military uses. With this sentence, he will be held accountable for circumventing important U.S. laws designed to protect our national security interests. One of our top national security priorities remains safeguarding our national assets from those who may wish to do us harm.”
According to the Indictment filed against PARSA and other court documents publicly filed in this case and statements made in court proceedings, including Friday’s sentencing:
Between approximately 2009 and 2015, PARSA conspired to obtain high-tech electronic components from American companies for transshipment to Iran and other countries for clients of PARSA’s procurement company in Iran, Tavan Payesh Mad, in violation of U.S. economic sanctions. To accomplish this, PARSA used his Canadian company, Metal PM, to place orders with U.S. suppliers and typically had the parts shipped to him in Canada or to a freight forwarder located in the United Arab Emirates, and then transshipped from these locations to Iran or to the location of his Iranian company’s client. PARSA provided the U.S. companies with false destination and end-user information about the components in order to conceal the illegality of these transactions.
PARSA’s criminal scheme targeted numerous American technology companies. The components that PARSA attempted to procure included cryogenic accelerometers, which are sensitive components that measure acceleration at very low temperatures. Cryogenic accelerators have both commercial and military uses, including in applications related to ballistic missile propellants and in aerospace components such as liquid-fuel rocket engines.
In addition, following his arrest and while incarcerated at the Metropolitan Detention Center, PARSA continued to violate the IEEPA and the ITSR by conducting business for Metal PM and Tavan Payesh Mad, including by ordering parts from German and Brazilian companies for Iranian customers. PARSA subsequently directed a relative to delete email evidence of his ongoing business transactions while in jail, emphasizing the need for secrecy in their dealings.
Neither PARSA nor any other individual or entity involved in transactions that gave rise to his conviction applied for or obtained a license from the U.S. Department of the Treasury’s Office of Foreign Assets Control for the transactions.
* * *
In addition to the 36-month prison term, PARSA, 45, was ordered to pay a $100 special assessment.
Mr. Bharara praised the outstanding investigative work of the FBI and BIS. He also thanked the U.S. Department of Justice’s National Security Division’s Counterintelligence and Export Control Section.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael D. Lockard and Anna Skotko are in charge of the prosecution.
Bremerton, Washington Man Pleads Guilty to Production of Child PornographyRead the Press Release
Spokane– Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Larry Gutierrez, age 50, of Bremerton, Washington, pled guilty to the criminal charge of production of child pornography. United States District Judge Salvador Mendoza, Jr. accepted Gutierrez’s guilty plea and scheduled a sentencing hearing for August 23, 2016, at 11:15 a.m. in Spokane, Washington.
According to information disclosed during the court proceedings, on September 23, 2014 the mother of a 9 year-old girl in Spokane, Washington reported that she (the mother) found child pornography on her child’s phone. The child was interviewed and she stated that she met a man on the communication application Kik Messenger. The child sent the man nude images of herself, per his request. Subsequent search warrants revealed the man was Gutierrez.
During their investigation, law enforcement agents discovered a communication chat between Gutierrez and the child. In the chat the child tells Gutierrez that she is in 4th grade and also tells him when she will turn ten years old. During the chat, Gutierrez sends the child several images of a younger athletic male, claiming the photos were of him, which they were not. Gutierrez made specific requests that the child send him pornographic videos showing her genitalia. A few days later, Gutierrez chatted that if the child did not send him more images, he would post her images along with her Kik Messenger name so other adult men could contact her.
Search warrants executed on Gutierrez’s electronic devices revealed similar images of a great number of other children. Gutierrez had some children hold a sign indicating their age as shown in those images. One child is seen holding a sign indicating her tender age and then another sign which reads, “Stop blackmailing me.” Gutierrez threatened several children by claiming that he would post their photos if they did not send what he was asking for.
“Sextortion” is a serious crime that occurs when someone threatens to distribute your private and sensitive material if you don’t provide them images of a sexual nature, sexual favors, or money. The perpetrator may also threaten to harm your friends or relatives by using information they have obtained from your electronic devices unless you comply with their demands. Sextortion can have devastating effects on young victims from all walks of life, and it is easy to become a victim.
Online perpetrators might gain a person’s trust by pretending to be someone they are not. They lurk in chat rooms and record young people who post or live-stream sexually explicit images and videos of themselves, or they may hack into a person’s electronic devices using malware to gain access to files and control the person’s web camera and microphone without she/he knowing it.
Here are some things individuals can do to avoid becoming a sextortion victim:
• Never send compromising images of yourself to anyone, no matter who they are—or who they say they are.
• Do not open attachments from people you do not know.
• Turn off your electronic devices and web cameras when you are not using them.
Michael C. Ormsby stated: “If you are receiving sextortion threats, you are not alone. It is likely the perpetrator is an adult pretending to be a teenager, and you are just one of the many victims being targeted by the same person. Young people should not be afraid to talk to an adult and/or to call the FBI. If you believe you’re a victim of sextortion, or know someone else who is, call your local FBI office or toll-free at 1-800-CALL-FBI.”
Additional information about sextortion can be found online at:
FBI: https://www.fbi.gov/news/stories/2015/july/sextortion/video/what-is-sextortion
DOJ: https://www.justice.gov/psc/videos
https://www.justice.gov/psc/video/sextortion-public-service-announcement-60-seconds
https://www.justice.gov/psc/national-strategy-child-exploitation-prevention-and-interdiction
Bowling Green man charged with conspiracy and wire fraudRead the Press Release
A criminal information was filed charging John E. Moon, 69, of Bowling Green, with conspiracy and wire fraud, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
Moon owned AlphaCare Services Inc. (ACS) and served as treasurer of the Construction Contractors Employer Group LLC (CCEG). CCEG was made up of general contractors from Northwest Ohio and served its members by collecting, processing and paying their employment expenses, such as payroll and worker’s compensation premiums, according to the information.
Moon embezzled money CCEG from 2002 through 2016. In one example, Moon made a wire transfer of $15,624 from a CCEG account to an ACS account. Then Moon and others wrote checks from the ACS account for their own personal benefit, according to the information.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation in Sandusky. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Area Tax Preparer Pleads Guilty to Tax ChargesRead the Press Release
St. Louis, MO – Ricker Brooks pled guilty to charges involving his preparation of false tax returns by overstating business expenses of a client for the tax years 2009 and 2010. Brooks owns Brooks Accounting Service, providing accounting and tax preparation services. Zondra Jones owns Alliance In-Home Care Services, which provides home health care services to individuals.
According to court documents, after Jones reviewed the tax returns that Brooks prepared for her, she thought that the contract labor expense for her business was overstated. Although there was discussion between the two of them regarding the overstatement, Jones and Brooks agreed to file the tax returns with the overstatement. After the IRS began to investigate the returns, Brooks prepared false 1099 forms and check schedules which falsely represented payments made by Alliance In-Home Care Services to contract employees. Jones provided these false documents to the IRS.
"Today, Mr. Brooks admitted that he blatantly ignored the tax laws by preparing false tax returns," said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. "Dishonest return preparers use a variety of methods to cheat the government, including falsifying information on the tax returns to generate larger refunds for their clients."
Brooks, St. Louis County, Missouri, pled guilty to one felony count of conspiracy to defraud the United States and two felony counts of aiding and assisting in the preparation of a false income tax return. He appeared today before United States District Judge Ronnie L. White. Sentencing has been set for August 23, 2016.
Zondra Jones, Florissant, Missouri, pled guilty last November to related charges and is awaiting sentencing on May 26, 2016.
Conspiracy carries a maximum penalty of five years in prison and or fines up to $250,000; aiding in the preparation of a false income tax return carries a maximum penalty of three years prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney's Office.
Architect of Offshore Fraud Haven Pleads Guilty to $250 Million Money Laundering SchemeRead the Press Release
BROOKLYN, NY – Earlier today, Robert Bandfield, a U.S. citizen and resident of Belize, pleaded guilty to money laundering conspiracy for facilitating the stock manipulation of more than 40 U.S. publicly-traded companies and then laundering more than $250 million in profits through unidentifiable debit cards and attorney escrow accounts. Pursuant to his plea agreement with the government, Bandfield has agreed to forfeit, among other things, $1 million and all his rights and interests in three corporate entities -- IPC Management Services LLC, IPC Corporate Services Inc., and IPC Corporate Services LLC (collectively, IPC Corp.) -- that he founded and controlled in Belize. When sentenced, Bandfield faces up to 20 years in prison.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York (IRS-CI); and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations, New York (HSI).
In announcing the guilty plea, Mr. Capers extended his grateful appreciation to the agencies that led the government’s investigation and thanked the Securities and Exchange Commission (SEC), the Department of Justice’s Office of International Affairs (OIA), the Department of State’s Diplomatic Security Service (DSS), and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG) for their cooperation and assistance in the case
According to the court filings and facts presented at the plea hearing, between January 2009 and September 2014, Bandfield and his co-conspirators engaged in three interrelated schemes: (1) to induce U.S. investors to purchase stock in various thinly-traded U.S. public companies through fraudulent promotion of the stock, concealment of their ownership interests in the companies, and fraudulent manipulation of artificial price movements and trading volume in the stocks of those companies; (2) to circumvent the payment of capital gains taxes and the IRS’s reporting requirements under the Foreign Account Tax Compliance Act (FATCA); and (3) to launder the fraudulent proceeds from the stock manipulation schemes to and from the United States through debit cards and attorney escrow accounts. Through these schemes, Bandfield helped his corrupt clients -- who included more than 100 U.S. citizens and residents -- launder more than $250 million in fraudulent proceeds.
To facilitate these interrelated schemes, Bandfield and his co-conspirators created shell companies in Belize and the West Indies for the corrupt clients and placed nominees at the helm of these companies. This structure was designed to conceal the clients’ ownership interest in the stock of U.S. public companies, in violation of U.S. securities laws, and enable the corrupt investors to engage in trading under the nominee’s names through brokerage firms also set up in Belize. For example, this structure enabled Bandfield’s clients to manipulate the stock of Cynk Technology Corp, which traded on the U.S. OTC markets under the ticker symbol CYNK. Bandfield’s clients concealed their ownership of “all the free trading” or unrestricted shares of CYNK through shell companies incorporated by IPC Corp. Prior to May 15, 2014, there had been no trading in CYNK stock for 24 trading days. Over the next two months, the stock of CYNK rose from $0.06 per share to $13.90 per share, a more than $4 billion stock market valuation for a company that had no revenue and no assets.
Bandfield’s scheme also enabled the U.S. corrupt clients evade reporting requirements to the IRS by concealing the proceeds generated by the manipulated stock transactions through the shell companies and their nominees. For example, in response to a request received by a U.S. corrupt client from a U.S. transfer agent who had to determine whether the proceeds from manipulative stock trading transaction were taxable under U.S. law, Bandfield forwarded an IRS Form signed by co-defendant Andrew Godfrey as the nominee for the shell company which had been set up at the request of the client. At one point during the government’s investigation, Bandfield boasted to an undercover law enforcement agent that he had specifically designed this “slick” corporate structure to counter President Barack Obama’s new laws, a reference to FATCA.
An example of how the defendants’ scheme enabled U.S. corrupt clients to launder the proceeds from their fraudulent trading in U.S. public companies was the production of unidentifiable debit cards for the clients allowing them to freely transfer their proceeds back into the United States.
Today’s guilty plea took place before United States District Judge I. Leo Glasser.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jacquelyn Kasulis, Winston Paes, and Michael Keilty are in charge of the prosecution. Assistant United States Attorney Brian Morris of the Office’s Civil Division is responsible for the forfeiture of assets.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The Defendant:
ROBERT BANDFIELD
Age: 71
Belize City, BelizeEDNY Docket No. 14-CR-476 (ILG)
Albuquerque Man Pleads Guilty to Discharging Firearm During Robbery of Commercial BusinessRead the Press Release
ALBUQUERQUE – Raiff Harland Hayes, 25, of Albuquerque, N.M., pleaded guilty in federal court this morning to discharging a firearm during the robbery of a commercial business. Under the terms of his plea agreement, Hayes will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court.
Hayes was arrested on Aug. 18, 2015, on a criminal complaint charging him with violating the Hobbs Act and federal firearms laws. According to the complaint, Hayes robbed ABQ Interlock, a business located at 2444 Menaul Blvd. NE in Albuquerque, on the afternoon of July 27, 2015. According to surveillance video, Hayes pointed a firearm at two employees, fired a shot into the ceiling, placed a bag on the counter, and demanded that the employees put cash into his bag. On July 28, 2015, one of the employees identified Hayes as the robber from a photo array. Thereafter Hayes was arrested on state charges that were later dismissed in favor of federal prosecution.
Hayes was indicted on Sept. 10, 2015, and charged with violating the Hobbs Act and discharging a firearm during a crime of violence on July 27, 2015, in Bernalillo County, N.M.
During today’s proceedings, Hayes pled guilty to Count 2 of the indictment and admitted discharging a firearm during the armed robbery of a business engaged in interstate commerce. Hayes remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in Albuquerque and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Norman Cairns is prosecuting the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Friday 20 May 2016
Washington, Pa., Woman Charged with Trafficking Heroin Resulting in Serious Bodily InjuryRead the Press Release
PITTSBURGH – Quiote Guarino, of Washington, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of trafficking in heroin and fentanyl, which resulted in serious bodily injury, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on May 17 and unsealed today, charged Guarino, 24, with possession with intent to distribute and distributing heroin and fentanyl, which resulted in serious bodily injury to at least one person, in February 2016.
The law provides for a maximum total sentence of not less than twenty years, and up to life in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Katherine A. King is prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration, the Washington County Drug Task Force, the Pennsylvania Office of the Attorney General, the Pennsylvania State Police, the Washington County District Attorney’s Office, and numerous local police departments including the Canonsburg Police Department, the Donora Police Department, the Monessen Police Department, and the Charleroi Police Department, as well as the Washington County Sheriff’s Department, the Washington County Adult Probation Office, the Washington County Coroner’s Office, and the Allegheny County Medical Examiner’s Office, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Warren County Man Sentenced to Prison for Possessing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Youngsville, Pennsylvania, has been sentenced in federal court to 35 months in jail on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Tyler Mitchell Engle, 24, of Youngsville, Pennsylvania.
According to information presented to the court, Engle possessed computer images depicting minors engaging in sexually explicit conduct.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Engle.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Waldorf Man Sentenced to 13 Years in Prison for Stealing Guns from a Federally Licensed Firearms Dealer and Setting the Store on FireRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore Chuang sentenced Edward White, age 46, of Waldorf, Maryland, today to 13 years in prison, followed by five years of supervised release, for theft of firearms and use of fire during the commission of a felony, in connection with the robbery and arson of a federally licensed firearms dealer.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Charles County Sheriff Troy Berry.
“ATF worked hand-in-hand with the Charles County Sheriff's Office as well as federal prosecutors to build a strong case against Mr. White in an effort to hold him responsible for the theft of firearms and arson of Fred's Sporting Goods,” said ATF Acting Special Agent in Charge Frank Riehl. “The hard work of ATF's DNA chemists and the Charles County Forensic Science Unit provided unquestionable scientific evidence as to White's participation in this crime.”
According to his plea agreement, in February 2014, White planned to burglarize Fred’s Sports and Furniture, a federally licensed firearms dealer in Waldorf, Maryland. In preparation for the burglary White took photographs outside and inside the store, including the fence, gate, the padlock used to secure the gate, guns, and display cases containing the guns. White also accessed the roof of the store by climbing the HVAC system at the rear of the building, and took photos of the roof and the HVAC system. White’s DNA was recovered from a beam next to the HVAC system. White shared the photos with at least one co-conspirator.
On October 13, 2014, co-conspirators robbed Fred’s Sports and set it on fire. Specifically, co-conspirators cut the chain and padlock previously photographed by White, using bolt cutters provided by White. At least one co-conspirator climbed onto the roof of the building and cut a hole in the roof at the same location photographed by White. A co-conspirator entered the store and gathered more than 70 handguns from display cases throughout the store. After more than an hour, the co-conspirators poured an accelerant on the floor throughout the interior of the store, exited through the hole in the roof and ignited the accelerant. The fire destroyed Fred’s Sports and rendered the building uninhabitable.
Law enforcement officers recovered White’s cell phone near the rear of the store. The phone contained the photos of Fred’s Sports taken by White.
On November 6, 2014, law enforcement executed a search warrant at White’s home and recovered a .380 handgun stolen from Fred’s Sports and five .40 caliber rounds of ammunition. White’s DNA was found on the firearm. White, who was not under arrest at the time, agreed to go with law enforcement officers to the Charles County Sheriff’s Office, where he requested to use the rest room. While in the toilet stall, White placed a black cloth object in the trash can next to the toilet. Law enforcement subsequently searched the trash can and discovered a black cloth belly band holster containing a .40 caliber semi-automatic handgun, loaded with a magazine and 10 rounds of ammunition. This firearm was also stolen from Fred’s Sports on October 13, 2014. The next day, law enforcement searched White’s car and recovered the bolt cutters used during the robbery.
In addition to the two stolen guns recovered from White, several of the firearms stolen from Fred’s Sports were recovered in Washington, D.C., including: two guns used in separate shootings - one in which the victim was found next to the gun; one gun used in a robbery; one gun used in a carjacking; one gun recovered from a brothel; and two guns used in separate domestic altercations.
United States Attorney Rod J. Rosenstein commended the ATF and Charles County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Daniel C. Gardner, who prosecuted the case.
Village of Westfield Employee Pleads Guilty to Illegally Dumping Sewage into Chautauqua CreekRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Andrew Thompson, 34, of Westfield, NY, pleaded guilty to violation of the Clean Water Act before U.S. Magistrate Judge Jeremiah J. McCarthy. The charge carries a maximum penalty of one year in prison, and a fine up to $25,000 per day of violation.
Assistant U.S. Attorney, Aaron J. Mango, who is handling the case, stated that the defendant was the Chief Operator of the Waste Water Treatment Plant for the Village of Westfield, N.Y. On June 12, 2014, a malfunction occurred at the West Side Pump Station located in the Village. The pump station was unable to pump the untreated sewage flowing through the station, which resulted in untreated sewage being discharged into Chautauqua Creek. Based on an alarm that was triggered due to the sewage overflow, Thompson was aware of the discharge of sewage into the creek.
The following day on June 13, 2014, as workers were attempting to fix the pump station, the defendant directed them to discharge the untreated sewage pumped out of the pump station into Chautauqua Creek. Thompson did not have a permit issued under the Clean Water Act for the discharge of untreated sewage, a pollutant, into the creek and acted negligently in allowing the untreated sewage to be discharged in such a manner.
The plea is the result of an investigation by agents of the Environmental Protection Agency, under the direction of Vernesa Jones-Allen, Special Agent-In-Charge and the New York State Department of Environmental Conservation under the direction of Captain Frank Lauricella.Sentencing is scheduled for August 16, 2016, before U.S. Magistrate Judge Jeremiah J. McCarthy.
Village of Westfield Employee Pleads Guilty to Illegally Dumping Sewage into Chautauqua CreekRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Andrew Thompson, 34, of Westfield, NY, pleaded guilty to violation of the Clean Water Act before U.S. Magistrate Judge Jeremiah J. McCarthy. The charge carries a maximum penalty of one year in prison, and a fine up to $25,000 per day of violation.
Assistant U.S. Attorney, Aaron J. Mango, who is handling the case, stated that the defendant was the Chief Operator of the Waste Water Treatment Plant for the Village of Westfield, N.Y. On June 12, 2014, a malfunction occurred at the West Side Pump Station located in the Village. The pump station was unable to pump the untreated sewage flowing through the station, which resulted in untreated sewage being discharged into Chautauqua Creek. Based on an alarm that was triggered due to the sewage overflow, Thompson was aware of the discharge of sewage into the creek.
The following day on June 13, 2014, as workers were attempting to fix the pump station, the defendant directed them to discharge the untreated sewage pumped out of the pump station into Chautauqua Creek. Thompson did not have a permit issued under the Clean Water Act for the discharge of untreated sewage, a pollutant, into the creek and acted negligently in allowing the untreated sewage to be discharged in such a manner.
The plea is the result of an investigation by agents of the Environmental Protection Agency, under the direction of Vernesa Jones-Allen, Special Agent-In-Charge and the New York State Department of Environmental Conservation under the direction of Captain Frank Lauricella.Sentencing is scheduled for August 16, 2016, before U.S. Magistrate Judge Jeremiah J. McCarthy.
Veterans Treatment Court Established for Louisville Area Veterans Charged with Federal CrimesRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr., in conjunction with U.S. District Court Judge David J. Hale, U.S. District Court Magistrate Judge Colin H. Lindsay, Chief U.S. Probation Officer Kathryn B. Jarvis, Chief of Staff Robley Rex VA Medical Center Dr. Mary Lee Rothchild, and Chief Federal Defender Scott Wendelsdorf, today announced the newly established Veterans Treatment Court (VTC) Program for the Western District of Kentucky.
“Our nation is indebted to our veterans for their service and sacrifice," stated U.S. Attorney Kuhn. "Many return from combat with serious mental health and substance abuse issues that often go untreated. We have learned that these challenges sometimes lead to criminal behavior,” stated U.S. Attorney John Kuhn. “We expect this program will curb recidivism in our veteran community and promote sober and crime-free lives that our veterans deserve.”
"Our agency is committed to helping connect those on our case loads with the opportunities, skills, and resources for change. To that end, the Veteran Treatment Court allows us to more intentionally target and tailor our efforts to better serve justice involved veterans. Developing this program also helped us identify new veteran specific community resources which will allow us to better serve all veterans, not just those who are eligible for the treatment court," stated Kathryn Jarvis, Chief U.S. Probation Officer.
“The Robley Rex VAMC and Veterans Justice program is proud and honored to be a partner with the Western District Federal court, the U.S Attorney’s Office and the U.S. Probation and Parole office in the implementation of the Western District Federal Veterans treatment court. The Veterans treatment court is a model for assisting our Veteran population who have found themselves legally involved due to their often times untreated co-occurring mental health and substance abuse treatment issues or their difficulties with adjusting to civilian life. This partnership will include matching the legally involved Veteran with a mentor as well as identifying and addressing their housing, employment and pro-social needs, in order to empower their continued service to our community post military as they work within this partnership to resolve their criminal offense,” stated Sonny Hatfield, U.S. Department of Veterans Affairs.
The VTC allows qualified veterans charged with certain non-violent federal crimes to enroll in an intensive court-managed treatment program as an alternative to prison. This program was made possible through a collaborative agreement between the U.S. District Court, the U.S. Attorney's Office, the U.S. Probation Office, and the U.S. Department of Veterans Affairs. The mission of the VTC is to promote community safety and reduce recidivism by helping justice-involved veterans obtain needed mental health and addiction treatment. Voluntary participants will be monitored and held accountable by the Court-managed program to insure participants attain treatment and rehabilitation.
Veterans who have not been convicted of or charged with violent or sexual offenses may enter the VTC Program in one of three ways: as defendants facing federal misdemeanor charges; as defendants facing federal felony charges; or as felons facing revocation of supervised release after having served any sentence of incarceration.
Veterans Treatment Court requires enrollees to engage in intensive multi-stage professional counseling and treatment for issues involving substance abuse, mental health, disability, finances, and other difficulties, including those related to their military service. They must also abide by strict conditions, follow rigorous treatment plans, and attend scheduled hearings before a judge.
Most participants will be required to participate in the program for 18 months. Upon successfully completion of the voluntary program, veterans can expect the U.S. Attorney’s Office to reduce the charges to a lesser offense, refer the Veteran-Participant to Pretrial Diversion, or dismiss the charges entirely. Most importantly, Veteran-Participants will receive treatment that may help them regain hope for a sober and crime-free life.
The VTC program is only possible due to the availability of rehabilitative programs offered by the VA. Because the VTC program's essential treatment and counseling services are furnished by the VA Medical Center, veterans must be eligible to receive VA benefits in order to participate.
According to a report by the Bureau of Justice Statistics, the number of military veterans in jails and prisons continues to drop since 1978, when 24 percent of prisoners were veterans. Currently veterans make up 8 percent of the inmate population in local jails, state facilities and federal prison. The increasing number of Veterans’ Courts is partly credited for the lower incarceration rate. However, a Department of Veterans Affairs study determined that from 1999 through 2010, between 18 and 22 veterans commit suicide each day in the United States.
A Memorandum of Understanding (MOU) was signed today by officials from each participating agency during a ceremony held in the Gene Snyder United States Courthouse. The MOU establishes the rights and responsibilities of each stakeholder involved in the VTC program and outlines the expectations for the program's veteran-participants.
U.S. Attorney’s Office Hosts Mock Trial Academy for Fifth Graders from Gabe Allen Elementary School in West DallasRead the Press Release
DALLAS — The U.S. Attorney’s Office for the Northern District of Texas’s Mock Trial Academy, conducted as part of the District’s ongoing Crime Prevention and Community Outreach component of the Justice Department’s Smart on Crime initiative, concluded this week with fifth grade students from Gabe Allen Elementary School in West Dallas participating in a mock trial held in a federal courtroom in Dallas.
“Establishing a positive relationship with today’s youth is vital to the prevention of crime and violence in our communities,” said U.S. Attorney John Parker of the Northern District of Texas. “Through this Mock Trial Academy, these students directly interacted with professionals in law and law enforcement, gaining not only an insider’s perspective of our legal system, but an opportunity to explore career opportunities in law enforcement and criminal justice.”
Approximately 30 fifth-graders met with representatives from the U.S. Attorney’s Office throughout the academy to learn about our criminal justice system. The students were guided through the trial process and had an opportunity to further develop their listening, problem solving, and communication skills.
All of the participants in this week’s mock trial were students who played the roles of judge, court security officers, lawyers, witnesses and jurors in the case of U.S. v. Mary Witch, in which defendant Witch was accused of kidnapping Hansel and Gretel. The court was brought to order by the young judge and young bailiffs ensured courtroom procedures were followed. After hearing the evidence presented, the group of 12 young jurors, who had not heard about the case prior to trial, had the opportunity to deliberate, decide on a verdict, and present that verdict to the court.
Following the mock trial, a graduation ceremony, where the students were presented certificates and junior U.S. Attorney badges, and a reception were held in the U.S. Attorney’s Office.
Smart on Crime, a DOJ initiative announced in 2013, acknowledges that while aggressive enforcement of federal criminal statutes remains necessary, we cannot arrest and incarcerate our way to becoming a safer nation. To be effective, federal efforts must also focus on other components of criminal justice, like crime prevention and reentry. In fact, during last month’s Smart on Crime’s National Reentry Week in north Texas, the District sponsored and coordinated several events to raise awareness of the importance of reentry work.
More information about Smart on Crime may be found here. Information regarding Reentry efforts in the Northern District of Texas may be found here and resources regarding the Department’s Reentry efforts may be found here.
# # #
Two More Convicted in Multi-State Heroin RingRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that two more defendants have been convicted in Operation Goldy Locks for their roles in a multi-state heroin ring which involved disguising heroin as oxycodone pills in order to maximize profits. Both defendants remain in custody and are scheduled to be sentenced on September 1, 2016. A total of eleven (11) defendants were indicted in this matter. Five (5) defendants have been convicted thus far.
On May 18, 2016, JUSTIN R. SCOTT, age 32, of Baton Rouge, Louisiana, pled guilty before Chief U.S. District Judge Brian A. Jackson to conspiring to distribute and possess with intent to distribute heroin, in violation of Title 21, United States Code, Section 846. Scott admitted that, between January 1, 2014, and February 18, 2015, he conspired with individuals in California and Louisiana to distribute thousands of heroin pills that had been pressed to resemble oxycodone. Once delivered to Baton Rouge from California, the pills were distributed to mid-level drug dealers and ultimately sold to drug abusers in East Baton Rouge and Livingston Parishes. Scott admitted to knowing that the pills contained heroin and that he intended to sell and profit from the sale of significant amounts of heroin.
On May 18, 2016, KEENAN HARRIS, JR., age 36, of Denham Springs, Louisiana, pled guilty before Chief Judge Jackson to distributing heroin, in violation of Title 21, United States Code, Section 841. Specifically, he admitted to re-distributing over 500 heroin pills on October 14, 2014, which he had received from Scott and which had been pressed to resemble oxycodone.
U.S. Attorney Green stated: “This case illustrates one of the many dangers associated with the use of any illegal drugs, namely, the inability of the user to know for sure what is contained in the drugs purchased. This danger can indeed be fatal. I am grateful for the hard work of the DEA, the prosecutor from my office, and the many federal, state, and local law enforcement agencies who collectively pursued this criminal organization.”
Eric L. Watson, the Acting Assistant Special Agent-in-Charge of the New Orleans Field Division of the U.S. Drug Enforcement Administration stated: “By removing these criminals from the streets of Louisiana, they can no longer distribute this toxic poison to our communities. Through remarkable partnerships with state, federal and local law enforcement, we are making major progress in preventing heroin trafficking from taking hold in our communities. This investigation is a compelling example of that success."
This matter was investigated by the U.S. Drug Enforcement Administration’s Tactical Diversion Squad in the Baton Rouge Office and the Internal Revenue Service - Criminal Investigation Division, with assistance from the Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, Iberville Parish Sheriff’s Office, and Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Three MS-13 Members Convicted in RICO ConspiracyRead the Press Release
A federal jury convicted three defendants today of multiple charges related to a racketeering enterprise known as La Mara Salvatrucha, or MS-13.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland, Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office, Chief Hank Stawinski of the Prince George’s County, Maryland, Police Department, Chief J. Thomas Manger of the Montgomery County, Maryland, Police Department and Prince George’s County State’s Attorney Angela D. Alsobrooks made the announcement.
Jorge Enrique Moreno-Aguilar, aka Flaco and Castigato, 22, of District Heights, Maryland; Juan Alberto Ortiz-Orellana, aka Chele and Furia, 27, also of District Heights; and Minor Perez-Chach, aka Minor Chach-Perez, Little Bad and Bryant Sacarias, 25, of Hyattsville, Maryland, were convicted by a federal jury sitting in the U.S. District Court for the District of Maryland. All three defendants were found guilty of conspiracy to participate in a racketeering enterprise and murder in aid of racketeering. Additionally, Moreno-Aguilar and Ortiz-Orellana were convicted of conspiracy to commit murder in aid of racketeering, and Ortiz-Orellana and Chach-Perez were also convicted on various related firearms charges.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to evidence presented at trial, from at least 2009 through October 2014, MS-13 members planned and committed murders, attempted murders, assaults and robberies in Prince George’s, Montgomery and Frederick Counties. Gang members also extorted brothel operators and owners of other illegal businesses and tampered with and retaliated against witnesses, among other crimes. Trial evidence demonstrated that Moreno-Aguilar and Ortiz-Orellana were members and associates of the MS-13 Sailors Locotes Salvatrucha Westside Clique and Perez-Chach was a member of the MS-13 Langley Park Salvatrucha Clique.
Trial evidence demonstrated that on January 2013, Moreno-Aguilar and Ortiz-Orellana targeted an individual associated with the rival 18th Street gang, obtained photographs of the victim and conspired to murder him with other members of MS-13. On March 12, 2013, Moreno-Aguilar and Ortiz-Orellana went to Capitol Heights, Maryland and shot the victim multiple times outside his home, killing him.
According to the trial evidence, in the early morning hours of Feb. 23, 2013, Perez-Chach met a man whom he believed to be a member of MS-13 who had testified against MS-13 members in federal trials. In fact, the victim was not the witness from the previous MS-13 trials, according to trial evidence. Perez-Chach followed the victim to his home in Hyattsville, where he stabbed the victim to death while another member of MS-13 attacked the victim with a machete, trial evidence demonstrated. Evidence presented at trial showed that during his arrest on May 20, 2013, Perez-Chach was found to be in illegal possession of a firearm and ammunition.
In addition to these convictions, 8 of the other 13 defendants charged in this investigation have pleaded guilty to their roles in the racketeering conspiracy.
HSI Baltimore, Prince George’s County Police Department, Montgomery County Police Department, Prince George’s County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office investigated the case. Trial Attorneys Kevin Rosenberg and Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan are prosecuting the case.
Three MS-13 Members Convicted in Murder ConspiracyRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Jorge Enrique Moreno-Aguilar, aka “Flaco,” and “Castigato,” age 22; Juan Alberto Ortiz-Orellana, aka “Chele” and “Furia,” age 27, both of District Heights, Maryland; and Minor Perez-Chach, aka “Minor Chach-Perez,” “Little Bad” and “Bryant Sacarias,” age 25, of Hyattsville, Maryland, on charges related to a racketeering enterprise known as La Mara Salvatrucha, or MS-13.
The convictions were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Hank Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Montgomery County State’s Attorney John McCarthy.
All three defendants were found guilty of conspiracy to participate in a racketeering enterprise and murder in aid of racketeering. Moreno-Aguilar and Ortiz-Orellana were each convicted of conspiracy to commit murder in aid of racketeering. Ortiz-Orellana was also convicted of discharge of a firearm during a crime of violence, and murder resulting from the brandishing/discharge of a firearm during a crime of violence. Perez-Chach was also convicted of unlawful possession of a firearm and ammunition by an alien, and unlawful possession of a firearm and ammunition by a felon.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to evidence presented at the three-week trial, from at least 2009 through October 2014, MS-13 members planned and committed murders, attempted murders, assaults, and robberies in Prince George’s, Montgomery, and Frederick Counties. Gang members also extorted brothel operators and owners of other illegal businesses and tampered with and retaliated against witnesses, among other crimes. Moreno-Aguilar and Ortiz-Orellana were members and associates of the MS-13 Sailors Locotes Salvatrucha Westside (SLSW) Clique and Perez-Chach was a member of the MS-13 Langley Park Salvatrucha (LPS) Clique.
In January 2013, defendants Moreno-Aguilar and Ortiz-Orellana targeted an individual associated with the rival 18th Street gang, obtaining photographs of the victim from Facebook and conspiring to murder him with other members of MS-13. On March 12, 2013, Moreno-Aguilar and Ortiz-Orellana went to Capitol Heights, Maryland and Ortiz-Orellana shot the victim multiple times outside his home, killing him.
In the early morning hours of February 23, 2013, Perez-Chach met a man in a restaurant whom he believed to be a member of MS-13 who had previously testified against MS-13 members in federal trials in Greenbelt, Maryland. In fact, the victim was not the witness from the previous MS-13 trials, according to trial evidence. Perez-Chach followed the victim to his home in Hyattsville, Maryland where he stabbed the victim to death while another member of MS-13 attacked the victim with a machete. During his arrest on May 20, 2013, Perez-Chach was found in illegal possession of a firearm and ammunition.
All three defendants face a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise, and a mandatory sentence of life in prison for murder in aid of racketeering. Moreno-Aguilar and Ortiz-Orellana face a maximum of 10 years imprisonment for conspiracy to commit murder in aid of racketeering. Ortiz-Orellana also faces a mandatory sentence of life in prison for murder resulting from the use and discharge of a firearm during a crime of violence; and a minimum of ten years for discharging of a firearm during a crime of violence. Perez-Chach also faces a maximum sentence of 10 years in prison for being a felon in possession of firearm and ammunition, and 10 years for being an alien in possession of firearm or ammunition. Moreno-Aguilar was acquitted of brandishing/discharge of a firearm during a crime of violence, and murder resulting from the brandishing/discharge of a firearm during a crime of violence.
U.S. District Judge Roger W. Titus has scheduled sentencing for all three defendants on October 12, 2016.
In addition to these convictions, 8 of the other 13 defendants charged in this investigation have pleaded guilty to their roles in the racketeering conspiracy.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, Prince George’s County and Montgomery County Police Departments, and Prince George’s and Montgomery Counties State’s Attorney’s Offices for their work in the investigation and proceedings. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Lindsay Eyler Kaplan as well as Trial Attorneys Kevin Rosenberg and Catherine K. Dick with the Justice Department’s Organized Crime and Gang Section.
Tampa Brothers Convicted in Child Sex Trafficking ConspiracyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Maurice Williams (25, Temple Terrace) guilty of child sex trafficking and possession of child pornography. He faces a maximum penalty of life in federal prison. A sentencing hearing is scheduled for August 24, 2016. His brother, Antawan Hudson (30, Tampa), pleaded guilty to all charges on the first day of trial and also faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for August 16, 2016. Williams and Hudson were indicted on November 4, 2015.
According to testimony and evidence presented at trial, Williams conspired with Hudson to traffic underage females by fraud, force, and coercion in the commercial sex trade. Williams and Hudson worked together to post online prostitution ads for the victims and then transported the girls throughout central Florida to have sex with customers. After the victims had sex with the customers, Williams and Hudson took some or all of the money and, in exchange, offered the victims drugs, alcohol, and beauty appointments.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Stacie Harris and Daniel George.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Superseding Indictment Returned Charging Robbery, Murder of a Witness, and ObstructionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GREGORY DENSON, 53, ESCRELITA CARMOUCHE, 49, and KYRA D. MORRIS-GRIFFITH, 35, all of New Orleans, were charged today in a thirteen-count Seventh Superseding Indictment. DENSON and CARMOUCHE were charged with Conspiracy to violate the Hobbs Act, which prohibits interference with interstate commerce through violence. Defendant DENSON was also charged with various robberies and weapons offenses as well as the murder of an individual to stop that individual from providing information to law enforcement authorities about his (DENSON’S) activities. Defendant, MORRIS-GRIFFITH is charged with obstruction of a federal grand jury investigation.
U.S. Attorney Polite reiterated that the charges in the Seventh Superseding Indictment are merely charges, and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Michael M. Simpson and Michael E. McMahon are in charge of the prosecution.
Storage Facility Manager Sentenced for Drug TraffickingRead the Press Release
PROVIDENCE, R.I. – Kwame Davis, 42, of Pawtucket, a former manager of a storage facility business located in Pawtucket, was sentenced today to 77 months in federal prison for trafficking cocaine and heroin from his office at the storage facility.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Davis to serve 4 years supervised release upon completion of his prison term. Davis pleaded guilty in U.S. District Court in Providence on February 10, 2016, to one count each of possession with the intent to distribute cocaine and possession with the intent to distribute heroin.
Davis’ sentence is announced by United States Attorney Peter F. Neronha, Pawtucket Police Chief Paul King, East Providence Police Chief Christopher J. Parella, and Michael J. Ferguson, Special Agent in Charge of DEA in New England.
According to court records and information presented to the court, in June 2015, Pawtucket and East Providence Police detectives, and members of the Rhode Island DEA Drug Task Force, conducted an investigation into Kwame Davis’ drug trafficking activities. On multiple occasions, undercover purchases of drugs were made from Davis while he was in his office at his place of employment.
On June 24, 2015, law enforcement executed a court authorized search of Davis’ office and seized 540 grams of cocaine, 19 grams of heroin, and various items used in the packaging and distribution of drugs.
Davis has been detained since his arrest on June 24, 2015.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
St. Louis Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
On May 20, 2016, Scott E. Smith, a thirty-one year old St. Louis, MO, man pled guilty in federal district court, in East St. Louis, to Failure to Register as a Sex Offender, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Smith is scheduled for sentencing on August 26, 2016, at which time he faces a maximum potential sentence of 10 years in prison and a fine up to $250,000, 5 years to life supervised release after his release from prison, and a mandatory special assessment of $100.
On January 14, 2008, Smith was convicted of Aggravated Criminal Sexual Abuse in Madison County, Illinois, and was required to register as a sex offender. Smith signed a Missouri Sex Offender Registration Form on September 3, 2014, while at the Booneville Correctional Center in Missouri. On June 24, 2015, Waterloo, Illinois police officers received an anonymous tip that Smith was living and working in Waterloo, Illinois. Officers then went to Smith’s place of employment to interview him. Smith admitted he had been working and living in Waterloo, Illinois, since March 2015, without updating his Missouri Sex Offender Registration Form, or registering as a sex offender in the State of Illinois, within three days of arrival.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the United States Marshals Service and is assigned to Assistant United States Attorney Daniel T. Kapsak.
Sheppard Pratt Director and Her Husband Sentenced to Prison in Illegal $2.7 Million Billing SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar today sentenced Lyneth Nyabiosi, age 50, to 48 months in prison, and her husband, Willie Evans III, a/k/a “James Davies” and “James Davis,” age 54, both of Bear, Delaware, to 41 months in prison, both followed by three years of supervised release. The defendants had previously pleaded guilty to conspiring to commit mail fraud arising from a scheme to falsely bill Nyabiosi’s employer, Sheppard Pratt Health Systems, for approximately $2.7 million for work purportedly performed by a company that the defendants secretly controlled. Judge Bredar also ordered the defendants to forfeit and pay restitution of $2,742,791, and to forfeit two residences located in Bear and Newark, Delaware and three vehicles.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
Sheppard Pratt Health System is a private, non-profit health system in Maryland which offers mental health, substance use and special education services. Sheppard Pratt’s main campus is located in Towson, Maryland. From November 2005 to September 2014, Nyabiosi was the director of the Health Information Management Department (HIM Department) of Sheppard Pratt. The department was responsible for maintaining patient medical records. As the director, Nyabsiosi was the highest ranking employee in the HIM Department.
According to their plea agreements, Nyabiosi and Evans controlled and operated an entity named Information Management Solutions Technology (IMST), which was designed to appear as an independent third party contractor, but was in fact created by the defendants to execute the fraud scheme. On March 7, 2007, Nyabiosi, on behalf of Sheppard Pratt, entered into a contract with IMST to manage medical records for Sheppard Pratt. Nyabiosi never informed Sheppard Pratt that she and her husband were affiliated with IMST, in violation of Sheppard Pratt’s conflict of interest policy. To further hide their affiliation with IMST, Evans signed the contract on behalf of IMST as “James Davies,” a purported regional account representative at IMST. Thereafter, Evans continued to represent himself to Sheppard Pratt staff as “James Davis,” an account representative, even though no such person was ever affiliated with IMST.
From 2007 to 2014, the defendants submitted over 180 false invoices requesting that Sheppard Pratt pay IMST for work which was never performed, or for excessively inflated amounts for the work that was actually performed. For example, IMST picked up approximately 2,863 boxes of patient records from Sheppard Pratt for short-term storage, yet the invoices falsely represented that IMST had picked up over 500,000 boxes of patient records. Other invoices and documents provided to Sheppard Pratt falsely represented that IMST had picked up and was storing 20,270 boxes of records from the company Iron Mountain, when in fact, IMST never picked up a single box. And on two separate occasions in 2009, the defendants sent invoices to Sheppard Pratt for purported work on a project to digitize older patient records. The defendants paid a third party company $26,395 to complete the work, but they billed Sheppard Pratt $546,510.
Nyabiosi personally approved all of the false invoices, causing Sheppard Pratt to mail checks to IMST totaling $2,742,791. The defendants deposited the money in their bank account for their personal use.
In September 2014, the law firm representing Sheppard Pratt contacted “James Davis” using IMST contact information provided by the defendants. On September 4, 2014 and September 14, 2014, counsel for Sheppard Pratt met with Evans, who falsely represented himself to be “James Davis” and never revealed himself to be Nyabiosi’s husband. Evans falsely told the law firm that he, “James Davis,” alone owned IMST and was in charge of running the business.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein also commended Sheppard Pratt for its internal investigation and for bringing the matter to the attention of law enforcement. Mr. Rosenstein thanked Assistant United States Attorney Rachel M. Yasser, who prosecuted the case.
San Jose Man Convicted on Sex Tourism and Obstruction ChargesRead the Press Release
SAN FRANCISCO – A federal jury convicted Michael Lindsay of traveling with intent to engage in illicit sexual conduct, engaging in illicit sexual conduct in foreign places, attempted witness tampering, and obstruction of justice announced United States Attorney Brian J. Stretch and Homeland Security Investigations (“HSI”) Special Agent in Charge Ryan Spradlin.
In its verdict, handed down late yesterday, the jury found that defendant traveled from San Francisco to Manila, the capital of the Republic of the Philippines, intending to have sex with a minor, and had sex with a minor while there. The jury also found that defendant attempted to tamper with a witness and obstructed justice. The guilty verdict followed a 4-day jury trial before the Honorable Charles R. Breyer, U.S. District Judge.
The evidence at trial established that Lindsay, 56, of San Jose, owned a condominium in the Manila area, and frequently traveled there. During trips in May and August of 2012, Lindsay had sex with a 13-year-old girl. Evidence at trial showed that defendant used instant messaging to communicate with the girl’s mother and arrange meetings for sex. After meetings, defendant paid the girl’s mother. In addition, defendant’s later email communications established that after a federal grand jury charged him, he engaged in attempted witness tampering and obstruction of justice.
On December 13, 2012, a grand jury returned an indictment charging defendant with traveling with intent to engage in illicit sexual conduct in foreign places, in violation of 18 U.S.C. § 2423(b), and one count of engaging in illicit sexual conduct in foreign places, in violation of 18 U.S.C. § 2423(c). On February 9, 2016, a federal grand jury returned a second superseding indictment, adding charges of attempted witness tampering, in violation of 18 U.S.C. § 1512(b), and obstruction of justice, in violation of 18 U.S.C. § 1503.
The investigation began when the HSI received a report in the Philippines that defendant had sex with a minor while in the Philippines, and that he paid the minor’s mother. HSI arrested defendant on November 8, 2012, at San Francisco International Airport, when he attempted to return to the Philippines for another visit.
Assistant U.S. Attorneys Laura Vartain and Katherine Wawryzniak are prosecuting the case with the assistance of Helen Yee, Theresa Benitez, and Patricia Mahoney. This prosecution is the result of HSI investigations in both the Philippines and the United States.
Defendant is currently in custody. Defendant's sentencing hearing is scheduled for August 3, 2012, before Judge Breyer in San Francisco. The maximum statutory penalty for each count in violation of 18 U.S.C. § 2423(b) and 18 U.S.C. § 2423(c) is 30 years, the maximum penalty for attempted witness tampering in violation of 18 U.S.C. § 1512(b) is 20 years, and the maximum penalty for obstruction of justice in violation of 18 U.S.C. § 1503 is 10 years. In addition, the maximum fine is $250,000 for each count, plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Rochester Man Pleads Guilty to Crack Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Lorenzo Snow, 43, of Rochester, NY, pleaded guilty to conspiracy to distribute crack cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that from December 2011 until February 17, 2012, Snow, who has two prior felony drug convictions, supplied a co-conspirator, Angelina Evans, with crack cocaine. Evans then sold the cocaine out of a residence at 129 Lock Street in Lockport, NY. On numerous occasions in January and February 2012, Evans sold crack supplied by Snow from that location to an individual while being monitored by law enforcement officers. On February 17, 2012, officers executed a search warrant at the residence and found an ounce of powder cocaine, and smaller quantities of crack and marijuana.
Evans previously pleaded guilty to the same offense for her role in the conspiracy and was sentenced in December 2013 to time-served.
The plea is the result of an investigation by the Niagara County Drug Trask Force, under the direction of Niagara County Sheriff James Voutour, and Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
Sentencing is scheduled for September 1, 2016, at 1:00 p.m. before Judge Arcara.
Ride or Die Gang Member Sentenced to Life in Prison Following Convictions on RICO, Drugs and Murder ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SIDNEY PATTERSON, a/k/a “Duda Man” age 24, of New Orleans, was sentenced today after having previously been found guilty of violating the Racketeer Influenced Corrupt Organization Act “RICO,” as well as drug conspiracy, firearms conspiracy and murder charges.
U.S. District Judge Susie Morgan sentenced PATTERSON to serve the remainder of his life in prison.
In August 2015, PATTERSON, DELOYD JONES and BYRON JONES were convicted following an eight-day trial. According to evidence presented at trial, the defendants were members of the “Ride or Die” gang, which they also referred to as “R.O.D.” The Ride or Die gang was initially formed in or about 2007 and continued to exist through in or about 2013. During the course of the federal investigation into the gang, agents learned that the defendants used a house, located at 1632 Mandeville Street, among other locations, as a base of operations to package, sell, and store narcotics, as well as store firearms. The gang controlled the St. Roch neighborhood for its narcotics distribution activities through violence and threats of violence, to include murder, attempted murder, and assaults. The jury found PATTERSON guilty of one murder and two attempted murders.
The defendants were three of twelve defendants charged with conspiring to distribute cocaine base and possess firearms in furtherance of their drug trafficking crimes. DELOYD JONES and BYRON JONES were previously sentenced to life in prison. Prior to trial, nine defendants pled guilty to various charges. ANDREALIE LEWIS was previously sentenced to 48 months incarceration; TYONE BURTON was previously sentenced to 121 months of incarceration; ERVIN SPOONER and PERRY WILSON were each previously sentenced to 108 months of incarceration; TRE CLEMENTS was previously sentenced to 96 months of incarceration; NYSON JONES was previously sentenced to 87 months of incarceration; ROMALIS PARKER was previously sentenced to 70 months of incarceration; TYRONE BURTON and MORRIS SUMMERS were each previously sentenced to 60 months of incarceration.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Assistant United States Attorneys Nolan D. Paige and Marquest Meeks, along with former Special Assistant United States Attorney Brian Ebarb, who was assigned from the Orleans Parish District Attorney’s Office, were in charge of the prosecution.
Probationer Gets Sentenced to 10 Years in PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Theoridotes Collins (39, Sarasota) to 10 years in federal prison for being a felon in possession of a firearm while on state probation. The Court also ordered him to forfeit a firearm and ammunition seized from his residence. Collins was found guilty in a stipulated bench trial on February 16, 2016.
According to court documents, on April 21, 2015, Collins was convicted of fraudulent use of a credit card and fraudulent use of personal identification arising out of a robbery in front of a Dollar Tree in Bradenton. He later used his victim’s credit/debit card. The Circuit Court sentenced Collins to a one-year term of probation for the credit card fraud charge. At the time of his conviction, Collins had 19 prior convictions, including a home invasion robbery.
After Collins was placed on probation, the Manatee County Sheriff’s Office shared information with the Sarasota Police Department and ATF regarding Collins’s association with individuals suspected of being involved in recent shootings. On June 11, 2015, less than two months after Collins had been placed on state probation, the Florida Department of Corrections, Probation and Parole Field Service Office conducted a probation search of Collins’s residence in Sarasota. After two occupants falsely stated Collins was not at home, law enforcement officers saw him running out his back door into a neighbor’s yard. Collins was taken into custody and returned to the residence. During a search of his bedroom, the probation officers found a 9mm rifle and .40 caliber ammunition hidden between his mattress and a mattress pad. They also located crack cocaine, powder cocaine, baggies, a digital scale, and cash in the bedroom.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program – a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, and Regina Lombardo, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials including Sarasota Police Chief Bernadette DiPino and Manatee County Sheriff W. Brad Steube. It is also a part of ATF’s Frontline strategy to reduce gun violence in our communities.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sarasota Police Department, and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Rachel Jones and Simon Gaugush.
Private Violin Teacher Charged in White Plains Federal Court with Transporting, Receiving, and Possessing Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Angel M. Melendez, the Special Agent-in-Charge of the New York Office of the United States Immigration and Customs Enforcement (“ICE”), Homeland Security Investigations (“HSI”), announced today the voluntary surrender of NICHOLAS SZUCS for transporting, receiving, and possessing child pornography. SZUCS, a private violin teacher, surrendered today at the White Plains federal courthouse and was presented before United States Magistrate Judge Judith C. McCarthy.
Manhattan U.S. Attorney Preet Bharara stated: “The allegations in this case are particularly disturbing and sad. A private violin teacher, who works with children, stands accused of allegedly victimizing children. Thanks to the efforts of the Westchester County District Attorney’s Office and Homeland Security Investigations, SZUCS’s alleged illicit conduct was brought to light, and he will now have to answer to these serious charges.”
HSI Special Agent-in-Charge Angel M. Melendez stated: “This music teacher allegedly violated his position of trust and robbed the victims of their innocence. HSI agents will continue to police the cyber space to investigate and bring to justice those individuals who exploit the most vulnerable segment of our society- our children.”
As alleged in the criminal Complaint unsealed today in White Plains federal court[1]:
From at least 2012 to 2015, SZUCS possessed, transported, and received images and videos containing child pornography. According to the Complaint, SZUCS used a peer to peer file sharing network to download child pornography. Searches of an external hard drive and a laptop belonging to SZUCS revealed hundreds of images and videos of child pornography. SZUCS also attempted to have the laptop destroyed before law enforcement could seize it.
SZUCS is charged with one count each of transporting and of receiving child pornography, each of which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, and one count of possessing child pornography, which carries a maximum sentence of 10 years in prison. Each of the three counts also carries a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of Homeland Security Investigations. He also thanked the Westchester County District Attorney’s Office, including their High Tech Squad, for their assistance in the investigation.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. Investigators staff this hotline around the clock. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorney Jennifer Beidel is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
###
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Physician Assistant Ordered to Pay $77,900, Excluded from Medicare and Medicaid, and Sentenced to Six Months' Home Detention for Accepting $12,600 in Illegal KickbacksRead the Press Release
GRAND RAPIDS, MICHIGAN— U.S. Attorney Patrick Miles announced that Ronald Mingle, age 73, a physician assistant from Alma, Michigan, was sentenced to pay $62,900 in restitution to Medicare and Medicaid, a $15,000 fine, and to serve six months of home detention for accepting $12,600 in illegal kickbacks for referring patients to medical clinics, physical therapy clinics, and a home health care agency. Mingle is the eleventh person, and the fifth physician assistant, convicted of felony charges in connection with a joint federal-state investigation into a kickback scheme initiated by clinic owner Babubhai Rathod. Mingle will also be mandatorily excluded from participating with the Medicare and Medicaid programs for at least five years.
In sentencing Mingle, U.S. District Judge Janet T. Neff stated that accepting kickbacks is "a tremendously serious crime" affecting programs that "successfully meet the needs of low income people for medical services." Judge Neff further noted that when a person "cheats the government, you cheat everyone."
U.S. Attorney Miles emphasized that, "Paying kickbacks for patient referrals distorts the motives of health care professionals. Paying or receiving illegal referral payments can result in felony criminal charges, exponential financial liability, mandatory exclusion from Medicare and Medicaid, as well as professional licensing sanctions."
"Paying kickbacks for the referral of Medicare or Medicaid patients is a serious crime," said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. "Kickbacks inappropriately influence health care practitioners’ medical decision making process, lead to overutilization and/or up-coding of services, and further increase program costs. The OIG will continue to aggressively pursue kickback allegations to ensure the integrity of the Medicare and Medicaid programs and protect vital taxpayer dollars."
This case was the result of a coordinated effort by the U.S. Attorney’s Office for the Western District of Michigan, the Michigan Attorney General’s Office, the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, and Blue Cross Blue Shield of Michigan. Assistant U.S. Attorneys Raymond E. Beckering III and Adam B. Townshend prosecuted this matter.
END
Parkersburg man pleads guilty to attempted production and possession of child pornographyRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man pleaded guilty today to federal child pornography crimes, announced Acting United States Attorney Carol Casto. Jeremy L. Kelley, 39, entered his guilty plea in federal court in Charleston to attempted production of child pornography videos and images and possession of child pornography.
Kelley admitted that on September 6, 2014, he intentionally placed a Motorola cellphone in a vent located above a shower in a bathroom. Kelley further admitted that he placed the cellphone in the vent so that he could secretly record a minor in the shower. Law enforcement located a removable media device at Kelley’s Parkersburg residence in November 2015, and an analysis of that device revealed over 600 images of child pornography. More than 600 images of child pornography were also located on a Nexus cellphone and a computer used by Kelley at his place of employment in Pleasants County, located in the Northern District of West Virginia. Kelley also admitted to sharing some of the child pornography over the Internet. Kelley’s prosecution was the result of federal, state, and local law enforcement agencies working together in both the Northern and Southern Districts of West Virginia.
“This joint investigation demonstrates the commitment across law enforcement to bringing a child predator to justice,” said Acting United States Attorney Carol Casto. “Without this collaboration, this successful prosecution would not be possible.”
Kelley faces a mandatory prison sentence of 15 years and a maximum fine of $500,000 when he is sentenced on August 25, 2016. Under the terms of the plea agreement, Kelley agreed to pay restitution to the victims and register as a sex offender. Following his release from prison, Kelley will be placed on supervised release for 30 years.
The investigation was conducted by DHS Homeland Security Investigations, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and the Parkersburg Police Department. Assistant United States Attorneys Lisa G. Johnston and Sarah W. Montoro are in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is being brought as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
- Follow us on Twitter: SDWVNews
Owner of Tax Preparation Business Pleads Guilty to Tax FraudRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Eyob Tilahun, 30, of St. Louis, MO, formerly the owner of a local tax return preparation business known as "Tax King," pled guilty to a charge of conspiring to submit false claims to the United States Government.
Tilahun owned and operated several Tax King locations in St. Louis, Missouri, and one in East St. Louis, Illinois. In the pleading guilty today, Tilahun admitted that Tax King’s return preparers were trained and instructed to increase their customers’ refunds by falsifying certain information on their tax returns. The false information that was placed on the returns included: (1) false Business Income and Schedules Cs which caused the clients to qualify for larger Earned Income Credits ("EICs"); (2) false wages, which again caused the clients to qualify for larger EICs; (3) false education expenses which enabled the clients to qualify for American opportunity education credits; and (4) false information regarding fuel taxes which qualified the clients for federal fuel tax credits.
Tilahun admitted that he profited from the scheme by charging Tax King’s clients fees which ranged from approximately $400 to $650. The indictment in the case alleges that the return preparers also profited by requesting cash "tips" from the clients that ranged from approximately $100 to $1,000.
"Tilahun and his business, Tax King, caused money to be stolen money from all Americans," Acting United States Attorney Porter stated. "Theft from our citizens, whether done by a gun or a computer, is simply unacceptable. Our office will continue all efforts to bring to justice those who cheat the American public."
"While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government, the tax-paying public and their own clients," said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. "Taxpayers should be careful in selecting the tax professional who will prepare their returns."
The sentencing hearing for Tilahun is set for August 26, 2016, at 10:00 a.m. The charge of conspiring to submit false claims carries a maximum sentence of 10 years in federal prison, up to a $250,000 fine, and restitution.
Four other defendants in the case have previously pled guilty. On April 29, 2016, Mason B. Richmond, 31, of St. Louis, MO, and Lakesha R. Wilson, 28, of East St. Louis, IL, both pled guilty in to conspiring to submit false claims and related tax charges. Richmond worked as a return preparer at Tax King location at 900 N. Grand in St. Louis. Wilson worked as a return preparer at the East St. Louis, IL, Tax King. Wilson is scheduled to be sentenced on August 5, 2016, and Richmond’s sentencing is set for August 12, 2015. Tanesa L. Beverly, 32, of Belleville, IL, and Melissa L. Wiley, 34, of Granite City, IL, both pled guilty in May 2015. Both Beverly and Wiley were return preparers at the East St. Louis Tax King. Beverly and Wiley are scheduled to be sentenced on September 9, 2016.
Charges are still pending against two additional return preparers from the East St. Louis location. The trial of Edric A. Russell, 35, and Pierre J. Carter, 33, both of East St. Louis, is scheduled to begin on August 22, 2016, at the Federal Courthouse in East St. Louis. As to those defendants, the public is reminded that they are presumed innocent of the charges until proven guilty beyond a reasonable doubt.
The investigation is being conducted by agents from the Fairview Heights, Illinois, and St. Louis, Missouri Offices of the Internal Revenue Service – Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
The prosecution of this case is being coordinated with the United States Attorney’s Office for the Eastern District of Missouri. Several of the return preparers from the St. Louis locations of Tax King have been charged in federal court in St. Louis.
Owings Mills Man Sentenced to Prison for the Robbery of an Owings Mills Jewelry Store Including Kidnapping and Brandishing a GunRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Grigoriy (Greg) Zilberman, age 25, of Owings Mills, Maryland, today to three years in prison, followed by five years of supervised release, for conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence, in connection with the robbery of a jewelry store, including a home invasion robbery, carjacking and kidnapping. Judge Motz also entered an order requiring Zilberman to pay restitution of $500,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, Zilberman was part of a conspiracy, led by Stanislav “Steven” Yelizarov, to rob an Owings Mills jewelry store. In the course of the conspiracy, Zilberman participated in an armed home invasion robbery designed to obtain firearms for use in the later robbery of the jewelry store.
Specifically, on July 22, 2012, S. Yelizarov, his brother, MaratYelizarov, Zilberman and Aleksey Sosonko, robbed a home in Reisterstown, Maryland. Zilberman had been a guest in the home on a number of occasions and knew that the residents of the home owned firearms. After conducting surveillance of the home for several days prior to the robbery, at 2:30 a.m. on July 22, 2012, the conspirators, dressed all in black and wearing ski masks and latex gloves, entered the home through the garage door. S. Yelizarov was armed with a handgun when they entered the residence. The other three men grabbed long guns as they entered the home and carried them with them. A resident of the home was asleep when the four robbers entered his bedroom and woke him up, pointing guns at him and shining flashlights in his eyes. S. Yelizarov beat the resident when he tried to resist while M. Yelizarov tied up the resident with a belt and a cord. The robbers ransacked the home for about an hour, looking for firearms and other valuables. After the robbers left, the resident was able to free himself and call police. The resident was taken to the hospital for treatment of his injuries. Among the items stolen from the house were 10 long guns (rifles and shotguns), a crossbow, a laptop computer, and jewelry. Numerous electronic devices including computers and televisions were destroyed during the robbery. The value of the items stolen was approximately $10,000.
S. Yelizarov also devised a plan to commit the jewelry store robbery and recruited Zilberman, Sosonko, M. Yelizarov, Igor Yasinov, Peter Magnis, Sorhib Omonov and others to participate in the robbery. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance and attaching a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee.
According to their plea agreements, on January 15, 2013, Zilberman enticed the employee to visit his home, in order to alert the other co-conspirators of the employee’s whereabouts. While the employee was at Zilberman’s home, the other conspirators met at S. Yelizarov’s residence to prepare for the kidnapping and robbery, including preparing the firearms and donning masks and gloves. Early in the morning on January 16, 2013, M. Yelizarov and Omonov followed the employee from Zilberman’s home and notified the other conspirators of the employee’s location so they could follow the employee. S. Yelizarov, Sosonko, Yasinov, and Magnis used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms which were supplied by S. Yelizarov, the conspirators removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location. Once at the location, Sosonko, Yasinov, Magnis, and S. Yelizarov continued to brandish firearms and threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. The employee complied and at approximately 3:52 a.m., Sosonko and S. Yelizarov drove the employee’s vehicle from the remote location to the jewelry store. Yasinov and Magnis stayed with the employee. M. Yelizarov and Omonov were stationed near the jewelry store to act as look-outs. S. Yelizarov and Sosonko entered the jewelry store and stole jewelry, stones, and watches, valued at about $500,000, then drove back to the remote location. The employee was then placed back into the trunk of his car and driven to another location, where he was left. The employee was able to kick his way out of the trunk through the back seat of his car.
On January 18, 2013, S. Yelizarov sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant. On January 19, 2013, S. Yelizarov traveled to Brooklyn, New York to sell some of the jewelry and stones taken during the robbery, receiving over $100,000. On January 21, 2013, he returned to Maryland and divided the cash proceeds among the members of the conspiracy and others. S. Yelizarov determined how much each participant received based on his perception of the risk and the conduct of each participant.
On January 25, 2013, S. Yelizarov was arrested in Buffalo, New York, on charges of federal misuse of a passport. From January 25 through February 2, 2013, S. Yelizarov placed calls directing M. Yelizarov, Sosonko, and others, to remove from his residence and dispose of evidence related to the jewelry store robbery, including cash from the sale of the jewelry, firearms used during the conspiracy, the law enforcement light bar, the GPS device, a laptop computer, and other evidence of the crimes.
Stanislav “Steven” Yelizarov, age 26, of Pikesville, Maryland, was sentenced to 30 years in prison, after he pleaded guilty to a robbery conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence. Marat Yelizarov, age 27, of Pikesville, and Aleksey Sosonko, age 35, of Owings Mills, were sentenced to 18 years and 14 years in prison, respectively. Peter Aleksandrov Magnis, age 28, of Hydes, Maryland, and Sorhib Omonov, age 27, of Baltimore, were sentenced to seven years in prison and four years in prison, respectively. Judge Motz also entered an order requiring all of the sentenced defendants to pay restitution of $500,000. Igor Yasinov, age 26, of Baltimore, also pleaded guilty and is awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.
Oregon Woman Pleads Guilty in $1.2 Million Federal Income Tax Refund Fraud SchemeRead the Press Release
Conspired with Others to Prepare and File at Least 224 False Income Tax Returns
An Oregon woman pleaded guilty today to one count of conspiracy to defraud the government with respect to claims, one count of wire fraud and one count of aggravated identity theft for running a federal income tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Billy J. Williams of the District of Oregon and Special Agent in Charge Teri Alexander of the Internal Revenue Service – Criminal Investigation (IRS-CI).
Danyelle Calcagno, 41, admitted to filing at least 224 false federal income tax returns that fraudulently claimed a total of $1,220,246 in tax refunds, generally between $3,500 and $7,000 per return. Calcagno filed the fraudulent tax returns using Internet access at Portland-area hotels to disguise the source of filing. Calcagno filed the false tax returns using the names and social security numbers of other individuals obtained directly and through recruiters, including Latisha L. Simmons, 36, of Phoenix, Arizona.
Calcagno directed the IRS to deposit the income tax refunds into bank accounts and onto stored value debit cards that she could access and control in order to divide the proceeds of the fraud and make it more difficult for law enforcement to identify Calcagno as the filer of the false tax returns. Calcagno received at least $25,000 in fraudulently obtained income tax refunds into her own bank accounts.
Calcagno faces a statutory maximum sentence of 10 years in prison on the conspiracy charge, 20 years in prison on the wire fraud charge and a mandatory term of two years in prison on the aggravated identity theft charge, which will be in addition to any other term of imprisonment she receives. Calcagno also faces financial penalties and a term of supervised release. As part of her plea agreement, Calcagno agreed to pay restitution to the IRS in the amount of $742,754.
In October 2015, Simmons was sentenced to 39 months in prison after pleading guilty to one count of wire fraud, one count of false claims against the government and one count of aggravated identity theft. According to her plea agreement, Simmons filed more than 50 false tax returns with the IRS that fraudulently claimed more than $400,000 in refunds.
Acting Assistant Attorney General Ciraolo, U.S. Attorney Williams and Special Agent in Charge Alexander thanked special agents of IRS-CI, who investigated this case and Trial Attorney Leslie A. Goemaat of the Tax Division and Assistant U.S. Attorney Quinn P. Harrington of the District of Oregon, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.