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7 July 2016
Houston Woman Pleads Guilty in Conspiracy to Traffick Heroin Using MegabusRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARTHA QUINONES, age 51, of Houston, Texas, pled guilty today to conspiracy to distribute and to possess with intent to distribute over one kilogram of heroin.
QUINONES was one of eight defendants charged in a 21-count Superseding Indictment on September 18, 2015. According to court documents, this Indictment resulted from an FBI investigation into a heroin-trafficking organization operating primarily around Loyola Avenue and Harmony Street in Central City, New Orleans. QUINONES was one of two sources who traveled via Megabus from Houston to New Orleans, carrying half-kilogram quantities of heroin for distribution in the New Orleans area.
QUINONES is facing not less than 10 years and a maximum of life imprisonment, as well as a possible fine of up to $10,000,000. U.S. District Judge Carl J. Barbier set sentencing on October 13, 2016.
U.S. Attorney Polite praised the work of the FBI New Orleans Gang Task Force (NOGTF), Saint Tammany Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Honduran National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JORGE PULIDO-HERRERA, a/k/a JORGE LICONA-CERRATO, age 46, a citizen of Honduras, was sentenced after previously pleading guilty to a one-count Bill of Information for illegal reentry of removed alien.
U.S. District Judge Carl J. Barbier sentenced PULIDO-HERRERA to time served, followed by one year of supervised release, and a $100.00 special assessment. Additionally, PULIDO-HERRERA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to the Bill of Information, on or about March 15, 2016, PULIDO-HERRERA was found in the United States after having been officially deported and removed on or about December 8, 1999.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Honduran Man Pleads Guilty to Illegally Reentering the United States After Having Been Previously DeportedRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Alexander Alcerro-Romero, of Honduras, pleaded guilty to a one-count indictment alleging that he illegally reentered the United States after having been previously deported.
In March of 2016, an ICE ERO Deportation Officer developed information which indicated that the defendant, a Honduran national, was illegally present in the United States after having been deported on two previous occasions. On April 11, 2016, the defendant was observed by ICE-ERO Deportation Officers entering a silver sedan that was parked directly in front of the defendant’s residence in Nashua, New Hampshire.
A vehicle stop was conducted during which the Deportation Officer approached the defendant and asked him in English if he had a driver’s license. The defendant responded “not one from this country” and presented the Deportation Officer with a Honduran identity document. After verbally confirming that the defendant was a Honduran national, the deportation Officer asked the defendant if he had any immigration documents that allowed him to be in the U.S. The defendant responded “no”, and was then taken into ICE custody for being illegally present in the United States and transported to the ERO-MAN office for administrative processing.
Fingerprint impressions taken at the time of processing were compared to fingerprints on record with the Department of Homeland Security. The fingerprint comparison confirmed that the defendant had been deported from the United States to Honduras in 2005 and 2008.
Alcerro-Romero will be sentenced at 10:00 AM on November 15, 2016, and will be deported after serving his sentence.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
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Galveston Pimp Found Guilty on Charges of Sex Trafficking of MinorsRead the Press Release
GALVESTON, Texas – A jury sitting in Galveston has returned guilty verdicts against a Galveston man on one charge of conspiracy to commit sex trafficking of minors and four counts of sex trafficking of minors, announced U.S. Attorney Kenneth Magidson. The jury convicted Charles Devan Fulton Sr., 39, late yesterday following a six-day trial and approximately four hours of deliberation.
Co-defendants Charmell Latonya Potts, 31, Dominique Warner, 23, and Lawrence James Julian, 22, all of Galveston, previously pleaded guilty.
The jury found Fulton engaged in a conspiracy with the others between June 1, 2014, through April 1, 2015, in which they engaged in conspiracy to recruit, entice and harbor minors to engage in sex trafficking. Fulton aka “Black” or “Blacc,” was the leader of the group and ordered Potts to post pictures of two of the identified minor victims in prostitution ads on line. Warner aka “Meathead,” Julian aka “Wolf” and Potts also drove the minor females to hotels where the minors would engage in commercial sex acts.
The jury heard that the minors engaged in hundreds of commercial sex acts over the course of the conspiracy. The victims testified at trial, as did Potts, that Fulton would keep the money the children earned performing commercial sex acts. The jury also heard that Fulton used force, threats of force, fraud or coercion against two of the victims. In addition, testimony revealed Fulton had sex with the victims knowing they were minors, that he provided them with drugs and he had no legitimate source of income.
Fulton attempted to convey his innocence and that police were just out to get him. The jury was not convinced and found him guilty on five counts.
Fulton faces up to life in prison and is set for sentencing in October 2016. He will remain in custody pending that hearing.
The FBI and the Galveston Police Department investigated with the assistance of the Galveston County District Attorney’s Office. Assistant U.S. Attorneys Sherri Zack and Julie Searle prosecuted the case.
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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Four Conspirators Indicted in Chicago-Based Stolen Identity Refund Fraud SchemeRead the Press Release
A federal grand jury sitting in Chicago, Illinois, returned an indictment, which was unsealed yesterday, charging four Chicago-area residents with conspiracy to commit theft of government money, wire fraud, theft of government money, aggravated identity theft and access device fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Zachary T. Fardon of the Northern District of Illinois.
The indictment charges Roxann Gist, Dominique King, Nellyvette Mojica and Rosa Alverio, with conspiracy to commit theft of government money. Gist and King also are charged with wire fraud, aggravated identity theft and access device fraud. Mojica and Alverio also are charged with theft of government money.
According to the indictment, Gist and King used the means of identification of other individuals without their knowledge and consent in order to prepare and file false tax returns that claimed large tax refunds. The refund checks were mailed to addresses in the Chicago area or electronically deposited into bank accounts controlled by the defendants and others. After Mojica and Alverio received a number of the fraudulent refund checks into accounts under their control, they split the proceeds with Gist and King. From 2012 to 2015, the defendants and others received in excess of $1.3 million in fraudulent tax refunds.
If convicted, the defendants each face a statutory maximum sentence of five years in prison for the conspiracy count. Gist and King also face a statutory maximum sentence of 20 years in prison for wire fraud, 10 years in prison for access device fraud and a mandatory minimum sentence of two years in prison for each count of aggravated identity theft, which must run consecutive to any other sentence imposed by the court. Mojica and Alverio also face a statutory maximum sentence of 10 years in prison for the theft of government money counts. In addition, the defendants face potential fines, forfeiture and restitution.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Ryan R. Raybould and Timothy M. Russo of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Four Conspirators Indicted in Chicago-Based Stolen Identity Refund Fraud SchemeRead the Press Release
WASHINGTON – A federal grand jury sitting in Chicago, Illinois, returned an indictment, which was unsealed yesterday, charging four Chicago-area residents with conspiracy to commit theft of government money, wire fraud, theft of government money, aggravated identity theft and access device fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Zachary T. Fardon of the Northern District of Illinois.
The indictment charges ROXANN GIST, DOMINIQUE KING, NELLYVETTE MOJICA and ROSA ALVERIO with conspiracy to commit theft of government money. Gist and King also are charged with wire fraud, aggravated identity theft and access device fraud. Mojica and Alverio also are charged with theft of government money.
According to the indictment, Gist and King used the means of identification of other individuals without their knowledge and consent in order to prepare and file false tax returns that claimed large tax refunds. The refund checks were mailed to addresses in the Chicago area or electronically deposited into bank accounts controlled by the defendants and others. After Mojica and Alverio received a number of the fraudulent refund checks into accounts under their control, they split the proceeds with Gist and King. From 2012 to 2015, the defendants and others received in excess of $1.3 million in fraudulent tax refunds.
If convicted, the defendants each face a statutory maximum sentence of five years in prison for the conspiracy count. Gist and King also face a statutory maximum sentence of 20 years in prison for wire fraud, 10 years in prison for access device fraud and a mandatory minimum sentence of two years in prison for each count of aggravated identity theft, which must run consecutive to any other sentence imposed by the court. Mojica and Alverio also face a statutory maximum sentence of 10 years in prison for the theft of government money counts. In addition, the defendants face potential fines, forfeiture and restitution.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Ryan R. Raybould and Timothy M. Russo of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Former Youngstown man sentenced to more than three years in prison for bank fraud involving Mahoning County homesRead the Press Release
A former Youngstown man was sentenced to more than three years in prison for crimes related to the purchase of a dozen homes in Mahoning County, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Steven D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
R. Allen Sinclair, 52, of Suwanee, Georgia, was sentenced to 41 months in prison and ordered to pay approximately $830,000 in restitution. He pleaded guilty earlier this year to bank fraud.
Sinclair was the owner and operator of Newport Investments, LLC and Newport Development, Inc. in Youngstown. He advertised that the company was in the business of buying, renovating and selling residential real estate properties, according to court documents.
Sinclair, through his companies, solicited money from investors, promising them annual returns of about 10 percent and telling them their funds would be used for the acquisition and renovation of properties in Youngstown. Sinclair knew that the properties needed little or no renovation. Instead, he converted the money for his personal use, according to court documents.
Beginning in 2005, Sinclair acquired the 12 properties—in Youngstown, Canfield, Struthers and Austintown—through land trusts he created for each property. Sinclair fraudulently misled the sellers into believing the land trusts had assumed the mortgage payments. After making minimal monthly payments, Sinclair then stopped paying the mortgages and did not notify the sellers, who were unaware they were still obligated to the loans, according to court documents.
As a result, the properties went into foreclosure, causing substantial losses to the lenders and the federal agencies that insured them, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Robert J. Patton and Suzana Krstevski Koch following an investigation by the Federal Bureau of Investigation, with assistance from the U.S. Department of Housing and Urban Development - Office of Inspector General and the Ohio Attorney General’s Office.
Former Rensselaer County Corrections Officer SentencedRead the Press Release
ALBANY, NEW YORK – Former Rensselaer County Corrections Officer Mark A. Piche, age 47, of Poestenkill, New York, was sentenced today to 1 year of probation and to pay a $5,000 fine for obstructing the administration of the internal revenue laws.
The announcement was made by United States Attorney Richard S. Hartunian; Shantelle P. Kitchen, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation; and New York State Police Superintendent George P. Beach II.
Piche pled guilty on September 9, 2013 to instructing employees of his restaurant, Red Front LLC in Troy, New York, to make false statements to Special Agents from IRS-Criminal Investigation, who were investigating the restaurant’s tax filings and payments.
Between 2007 and 2011, Piche caused Red Front to file false quarterly returns with the IRS. Those false returns underreported the payroll and employment taxes owed by Red Front as follows: $4,460.64 in 2007, $4,469.28 in 2008, $5,704.07 in 2009, $7,873.80 in 2010, and $6,777.75 in 2011. From December 15, 2011 through June 20, 2012, Piche instructed Red Front employees to state falsely to federal agents that Red Front had accurately reported and withheld taxes due on its employees’ wages.
As part of his sentence, issued by Senior U.S. District Judge Gary L. Sharpe, Piche must pay restitution in the amount of $29,285.54 to the U.S. Department of Treasury. In 2012, Piche was required to resign his position as a corrections officer with the Rensselaer County Sherriff’s Office, as a precondition to his entering into a plea agreement with the government.
This case was investigated by IRS-Criminal Investigation and the Albany Special Investigations Unit of the New York State Police, and was prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Former Rabobank Derivatives Trader Pleads Guilty for Scheme to Manipulate LIBOR BenchmarkRead the Press Release
A former Coöperatieve Centrale Raiffeisen-Boerenleebank B.A. (Rabobank) derivatives trader, who worked in Hong Kong and Singapore as the bank’s Head of Money Market and Derivatives Trading for Northeast Asia, pleaded guilty today to conspiracy to commit wire fraud and bank fraud for his role in a scheme to manipulate the London InterBank Offered Rate (LIBOR) to Rabobank’s advantage.
Assitant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antiturst Division and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement.
Paul Thompson, 50, of Dalkeith, Western Australia, pleaded guilty before U.S. District Judge Jed S. Rakoff of the Southern District of New York, who set sentencing for Nov. 9, 2016.
“Confidence in the integrity of our financial markets is critical to the stability of the U.S. economy,” said Assistant Attorney General Caldwell. “Trillions of dollars in derivative contracts, loans, consumer debt and other financial products are linked to LIBOR, but Thompson schemed to manipulate this important benchmark to advantage his bank’s own trading positions. This case demonstrates that we will work with our partners around the world to bring to justice those whose crimes threaten our financial markets, wherever they reside.”
“The defendant conspired to manipulate LIBOR, putting his interests above those who depend on LIBOR as a reliable, impartial reference rate,” said Deputy Assistant Attorney General Snyder. “The Antitrust Division will continue to work with our colleagues in the Criminal Division and the FBI to ensure that individuals who conspire to cheat or manipulate markets are held accountable for their crimes.”
“In today’s plea, a former Rabobank executive admitted to his role in conspiring to manipulate the LIBOR interest rate to his bank’s advantage,” said Assistant Director in Charge Abbate. “This multi-year investigation represents the ongoing effort of the FBI and its domestic and international law enforcement and regulatory partners to identify and stop those who commit complex financial crimes effecting the United States, no matter where they operate or reside.”
Thompson is the fourth individual to plead guilty in this matter: Paul Robson, Lee Stewart and Takayuki Yagami, former Rabobank traders, pleaded guilty to one count of conspiracy in connection with their roles in the scheme. Another former Rabobank employee, Tetsuya Motomura, of Tokyo, has been charged and awaits trial.
LIBOR is an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if they borrowed from other banks. LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts tied to LIBOR were valued at approximately $450 trillion. At the time relevant to the charges, LIBOR was published by the British Bankers’ Association (BBA), a trade association based in London. LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities. The published LIBOR “fix” for Yen and U.S. Dollar (USD) LIBOR at a specific maturity is the result of a calculation based upon submissions from a panel of 16 banks, including Rabobank.
According to admissions made in connection with his plea, Thompson traded derivative products tied to the USD and Japanese Yen LIBOR rates. In an effort to increase the profitability of his derivative positions, Thompson entered into a scheme with several other Rabobank employees to influence the rate to Rabobank’s advantage, he admitted. Electronic communications offered at Allen and Conti’s trial showed that Thompson schemed with Paul Robson, a former Rabobank trader responsible for submitting Rabobank’s Yen LIBOR rate to the BBA, and others, to make LIBOR submissions calculated to increase the profitability of Thompson’s derivatives positions. For example, on May 19, 2006, Thompson informed Robson that his net exposure to the three-month duration of the Yen LIBOR rate was 125 billion Yen and asked Robson to “sneak your 3m libor down a cheeky 1 or 2 [basis points] because “it will make a bit of diff for me.” On Nov. 8, 2006, Thompson wrote to Robson, “Got a few big 3mth fixings in next 2 days, any chance you cud bump [LIBOR] up a couple?” And on May 10, 2006, Robson informed another Rabobank submitter that, “for info I’ve been asked by my Singapore man [Thompson] to help him out with a silly low 6m fixing today.”
On Nov. 5, 2015, a federal jury in the Southern District of New York convicted Anthony Allen, formerly Rabobank’s Global Head of Liquidity and Finance, and Anthony Conti, formerly Rabobank’s primary U.S. Dollar LIBOR submitter, for their roles in the scheme. They were sentenced to 24 months and 12 months and a day in prison, respectively. On Oct. 29, 2013, Rabobank entered into a deferred prosecution agreement with the department and agreed to pay a $325 million penalty to resolve violations arising from Rabobank’s LIBOR submissions.
The FBI’s Washington Field Office is conducting the investigation. Senior Litigation Counsel Carol L. Sipperly and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Trial Attorney Michael T. Koenig of the Antistrust Division are prosecuting the case. The Criminal Division’s Office of Internaional Affairs has provided assistance in this matter.
The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad. The Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, has played a major role in the LIBOR investigation. The Securities and Exchange Commission has also played a significant role in the LIBOR series of investigations and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the Rabobank investigation. The department also thanked the Australian Attorney-General’s Department, the Australian Federal Police and the Western Australia Police for their assistance. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit www.stopfraud.gov.
Former Cumming Police Officer Charged with Accepting Bribe for Unlawfully Accessing a Law Enforcement DatabaseRead the Press Release
ATLANTA – Former Cumming, Georgia, Police Officer Nathan VanBuren has been arraigned after being charged with wire fraud and computer fraud.
“This former police officer allegedly used his position to access sensitive information in exchange for money,” said U. S. Attorney John Horn. “This type of conduct unfortunately impairs the hard work of the police as well as the community’s trust in law enforcement.”
“Investigations into allegations of public corruption involving police officers is a disheartening, but very necessary duty of the FBI. People have a right to demand that their public safety officers possess integrity and a sense of fairness as they carry out their duties. The FBI asks that anyone with information regarding such matters to contact their nearest FBI field office,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: In July 2015, VanBuren, in his official capacity as a police officer, responded to a 911 call at a citizen’s home in Cumming, Georgia. The citizen was arrested. In July and August 2015, VanBuren and the citizen had additional communications. During those communications, VanBuren allegedly asked the citizen for a loan because his wages were being garnished and he had incurred financial debt due to his son’s medical and surgical expenses. In reality, VanBuren’s salary was not being garnished and his son was not ill. The citizen reported VanBuren’s actions and agreed to cooperate with law enforcement.
While cooperating with law enforcement, the citizen provided VanBuren $5,000 in response to VanBuren’s repeated requests for money. During that meeting, the citizen asked whether VanBuren would search a sensitive police database to determine whether an individual was an undercover police officer. In exchange for $1,000, VanBuren unlawfully accessed the law enforcement database and provided the results of that search to the citizen. VanBuren resigned before he was terminated by the Cumming Police Department.
Nathan VanBuren, 34, of Cumming, Georgia, was arraigned before United States Magistrate Judge Janet F. King. He was indicted by a federal grand jury on June 29, 2016.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation. The Cumming Police Department and Forsyth County, Georgia, Sheriff’s Office assisted with the investigation.
Assistant United States Attorney Jeffrey Brown is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Cumberland County Attorney Pleaded Guilty to Income Tax EvasionRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Karl E. Rominger, age 43, a former attorney in Carlisle, plead guilty today before United States District Court Judge Sylvia H. Rambo in Harrisburg to tax evasion and failure to file a federal tax return. Rominger was previously charged in June 2016.
According to United States Attorney Peter Smith, in 2012, Rominger attempted to evade federal income taxes due and owing for the calendar years 2006, 2007, 2008, 2009 and 2010, all years in which Rominger received taxable income. Rominger made false statements to agents of the Internal Revenue Service (IRS) concerning the location of his business operating accounts, with the intent to evade and defeat the actions of the IRS. Rominger also failed to file a federal income tax return for the calendar year 2012.
Pursuant to a plea agreement, Rominger agreed to pay restitution in the amount of $116,822.
The charges stem from an investigation by the Internal Revenue Service. The case is being prosecuted by Assistant United States Attorney Joseph J. Terz.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is six years of imprisonment, a term of supervised release following imprisonment, and a $125,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Bethel Resident Pleads Guilty to Distributing Heroin Involved in OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RYAN BUDD, 25, formerly of Bethel, waived his right to indictment and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of possession with intent to distribute, and distribution of, heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on March 1, 2016, at approximately 11:39 p.m., Danbury Police responded to a service station on the report of a woman in medical distress in a restroom. At the location, officers observed the victim on her knees, with her face on the floor, taking a deep gasping breath every 20 seconds. The victim also was holding a syringe.
The victim was transported to the hospital, where she was placed on life support. She has since recovered from the overdose.
At the service station, officers collected various items as evidence, including a second syringe, three “folds” of heroin and two cell phones.
The investigation identified BUDD as the heroin source of supply in this overdose case.
BUDD was arrested on March 9, 2016, and is released on a $100,000 bond. He currently resides in Branford.
Judge Meyer scheduled sentencing for September 29, 2016, at which time BUDD faces a maximum term of imprisonment of 20 years.
This investigation is being conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, the Danbury Police Department and the Wilton Police Department. The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Middlebury Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Florida Investment Adviser Charged with Defrauding Clients of Almost $800,000Read the Press Release
An Indictment[1] was unsealed today charging Sean Donald Premock, 43, of Ft. Lauderdale, Florida, with nine counts of mail fraud, nine counts of wire fraud, one count of securities fraud, and one count of investment adviser fraud, announced United States Attorney Zane David Memeger.
The indictment alleges that Premock, a Florida stockbroker and investment adviser who started his own investment and financial planning companies after being fired by his previous employer for selling investments that were not approved by his employer, used his companies to defraud clients, most of whom were elderly, convincing the clients to invest with him by promising to invest their money in stocks, bonds, annuities, hedge funds, and “safe” investments, while in reality Premock spent most of their money on himself and used some of the money to pay other clients. The indictment further alleges that Premock continued to hold himself out as a stock broker and investment adviser even after his licenses were suspended and after he was permanently barred by FINRA from working as a stock broker or otherwise associating with a firm that sold securities to the public, and that he failed to disclose the suspension and permanent bar to his clients.
Premock faces a maximum sentence of 385 years’ imprisonment, a five-year period of supervised release, a $9,510,000 fine, and a $2,000 special assessment, and a likely advisory sentencing guideline range of 87 – 108 months’ imprisonment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty
Final Defendant Scheduled for Second Gang Trial Pleads Guilty to Racketeering ConspiracyRead the Press Release
COLUMBUS, Ohio – Thomas A. Coates, 30, formerly of Columbus, pleaded guilty in U.S. District Court today to one count of racketeering conspiracy. Coates was originally scheduled to stand trial with Lance Green, who also pleaded guilty, on July 11 in the second of three trials involving the organized criminal enterprise known as the Short North Posse.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien and Columbus Police Chief Kim Jacobs announced the plea entered into today before U.S. District Judge Algenon L. Marbley.
A total of 20 individuals were indicted in the racketeering case with charges that included murders, attempted murders, drug trafficking, weapons offenses, witness tampering, extortion and robbery.
A United States District Court jury convicted five co-defendants of racketeering and murder earlier this month. After a two-month trial, the group of defendants was convicted on all counts, which accounted for 10 of 14 previously unsolved murders.
A final trial is currently scheduled to begin on September 26 for the remaining defendants.
Racketeering conspiracy is a crime punishable by up to 20 years in prison.
Acting U.S. Attorney Glassman commended the two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez, and Special Assistant U.S. Attorney Jimmy Lowe of Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.
Felon Pleads Guilty to Unlawful Possession of FirearmRead the Press Release
BOISE – Donovan Langford, 45, of California, pleaded guilty yesterday to unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Donovan was indicted by a federal grand jury in Boise on March 8, 2016.
According to the plea agreement, on February 1, 2016, Donovan knowingly possessed a twenty-gauge shotgun while in McCall, Idaho. Langford was prohibited from possessing firearms due to a 2004 burglary conviction in California.
The charge of unlawful possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, three years supervised release and a $100 special assessment.
Sentencing is set for October 4, 2016, before Senior United States District Judge Edward J. Lodge, at the federal courthouse in Boise.
The case was investigated by the Idaho State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration as well as the Organized Crime and Drug Enforcement Task Force (OCDETF) which includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Federal Grand Jury Adds Defendant and Murder Charge to Indictment Against Bandidos Outlaw Motorcycle Organization LeadershipRead the Press Release
In San Antonio, a federal grand jury has returned a superseding indictment against the highest ranking leaders of the Bandidos Outlaw Motorcycle Organization (OMO) adding a murder charge and a new defendant to the federal racketeering indictment returned in January.
That announcement was made today by United States Attorney Richard L. Durbin, Jr., Western District of Texas; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; and San Antonio Police Chief William McManus.
The superseding indictment, unsealed this morning in San Antonio, incorporates the charges contained in the original federal grand jury indictment against Bandidos National President Jeffrey Fay Pike, National Vice President John Xavier Portillo and National Sergeant at Arms Justin Cole Forster. Pike, age 60 of Conroe, TX; Portillo, age 56 of San Antonio; and, Forster, age 31 of San Antonio are accused of directing, sanctioning, approving and permitting other members of the organization to carry out racketeering acts including murder, attempted murder, assault, intimidation, extortion and drug trafficking to protect and enhance the organization’s power, territory, reputation and profits.
According to the superseding indictment, the Bandidos OMO declared it was “at war” with the Cossacks OMO. The superseding indictment specifically alleges a number of violent acts committed by Bandidos OMO members in furtherance of this “war.” The superseding indictment also alleges that Portillo, Forster and other members of the Bandidos OMOM were engaged in trafficking methamphetamine and cocaine and maintained an agreement with the Texas Mexican Mafia wherein Bandidos OMO members were not required to pay the 10-percent “dime” to the Texas Mexican mafia in exchange for permission to traffic narcotics.
The superseding indictment also alleges that Portillo and Southwest San Antonio Chapter member Frederick Cortez (aka “Fast Fred”) were involved in the retaliation murder of Robert Lara in January 2002 in Atascosa County for killing one of their own. Javier Negrete, a member of the same Bandidos OMO chapter as Portillo and Cortez, was killed outside a San Antonio bar in October 2001. Federal authorities arrested Cortez yesterday.
Pike, Portillo and Forster are charged with one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; one count of conspiracy to commit violent crimes in aid of racketeering (VICAR); and, one count of conspiracy to interfere with commerce by extortion.
Portillo is also charged with three substantive VICAR counts, plus one count of conspiracy to possess with intent to distribute methamphetamine and cocaine; one count of possession with intent to distribute cocaine; and, one count of felon in possession of a firearm. Forster is also charged with one count of conspiracy to possess with intent to distribute methamphetamine and cocaine; and, two counts of possession with intent to distribute methamphetamine. Cortez is charged with one substantive VICAR count.
Portillo, Forster and Cortez remain in federal custody. Pike is currently out on bond pending trial. Jury selection is currently scheduled for October 11, 2016. Upon conviction, the defendants face up to life in federal prison.
This ongoing investigation is being conducted by the FBI, DEA and Texas DPS together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, and the Bexar County District Attorney’s Office. Assistant United States Attorneys Eric J. Fuchs and Joey Contreras are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Dallas Woman Pleads Guilty to Indictment - Admits Making Harassing Phone Calls to University and Municipal Police DepartmentsRead the Press Release
DALLAS — A Dallas woman appeared in federal court this morning and pleaded guilty before U.S. Magistrate Judge Paul D. Stickney to a three-count indictment alleging she made harassing telephone calls to university and municipal police departments throughout the U.S. and Canada to falsely report she was a purported victim or purportedly injured, announced U.S. Attorney John Parker of the Northern District of Texas.
Tameira Janell Smith, 23, of Dallas, pleaded guilty to three counts of making harassing telephone calls. She faces a maximum statutory penalty of two years in federal prison and a $250,000 fine for each count. Restitution could also be ordered. Sentencing is set for October 21, 2016, before Chief U.S. District Judge Barbara M. G. Lynn.
Smith, who is now in custody, was arrested on October 13, 2015, and she was released on supervised pretrial release. On June 24, 2016, the government filed a motion for detention and a hearing was held on June 30, 2016. The court found she had violated her conditions of pretrial release by committing a crime while on release.
According to the order entered after that hearing, Smith was required to obtain mental health treatment and to not commit any new crimes as part of the conditions for her release. At that hearing, however, an emergency room nurse testified that in early June 2016 she was asked to assist two other nurses with an uncooperative and difficult patient, Smith, who was about to be admitted. Smith refused to change into the hospital scrubs as required for admission, and based on her conduct, the hospital’s police department was contacted. As the nurses tried to change her clothes, and when this nurse removed Smith’s headband, Smith struck this witness nurse in the chest, injuring her and causing her to lose her balance. Smith was then found to have a razor blade hidden in her hair. Smith has been charged at the state for assaulting the nurse.
The detention order further states that Smith has been in and out of treatment several times during her pretrial release, and her behavior as described by the nurse witness at the hearing is consistent with the testimony at Smith’s initial detention hearing in October 2015. The detention order further states that Smith continued to place first responders and medical personnel at risk.
According to the indictment and factual resume filed in the case, from approximately May 7, 2015, and continuing to approximately October 1, 2015, Smith made a series of at least 15 contacts with university and municipal police departments falsely in the U.S. and Canada reporting she was a purported victim, or purportedly injured. She would not give her name or even provide a false name when contacting police. Upon receiving the calls, the police departments responded as if a true emergency existed by deploying emergency personnel and vehicles, including police cruisers, fire trucks, and ambulances.
Many times, Smith was not injured nor even in the area where she reported the false emergencies to police dispatchers. In some of the later instances, however, Smith staged a scene, called police, and waited for emergency personnel to arrive.
Throughout the scheme, Smith used a telecommunications device and software that allowed her to transmit originating phone numbers that were not her own, thereby concealing her identity and location.
The FBI is investigating the case. Assistant U.S. Attorney Lori Walker is in charge of the prosecution.
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Covington Man Pleads Guilty to Illegally Possessing a Firearm, Transporting Stolen FirearmsRead the Press Release
ROANOKE, VIRGINIA – A previously convicted felon, who under federal law is prohibited from possessing a firearm, pled guilty today in federal court to breaking into a federally licensed firearms dealer and stealing two dozen firearms with hopes of later selling them, United States Attorney John P. Fishwick Jr. announced today.
David Christopher Martin, 40, of Covington, Va., pled guilty today in the United States District Court for the Western District of Virginia in Roanoke to one count of being a previously convicted felon illegally in possession of a firearm and one count of transporting one or more stolen firearms in interstate commerce from Virginia to South Carolina.
According to evidence presented at today’s hearing by United States Attorney Fishwick, Martin admitted that on or about April 4, 2016 he used a rock to break the glass of the front door of Mountain Top Hunting and Fishing, a federally licensed firearms dealer located in Covington, Va. After breaking the glass of the front door, Martin entered the store through the broken window. Martin admitted that prior to the burglary he “cased” the business, examining the layout, inventory and security. To make his escape easier, he disassembled part of a fence at the rear of the store. Additionally, Martin purchased a set of wire cutters to disable what he believed to be part of the alarm system.
Once inside the store, Martin used the wire cutters to break the glass of a display cabinet where handguns were on display. He took what he thought to be the most valuable handguns and put them into a red bag and left the store with 24 handguns. Martin later admitted he planned to sell the handguns for approximately $6,000 and split the money with his girlfriend.
Early on the morning of April 4, 2016, Martin got into a van with co-worker to travel to Florida for a pressure washing job at a paper mill, taking the guns with him in the red bag. At one point during the trip, the driver of the van told Martin if he had anything illegal in the van he needed to get rid of it. At a rest stop near Yemassee, South Carolina, Martin got out of the van and hid the guns in the nearby woods, taking a picture of a unique tree near where he hid the guns, which were later recovered by federal agents.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives offices in Roanoke, Virginia, Charleston, South Carolina and Jacksonville, Florida, the Covington Police Department, the Allegheny County Sheriff’s Office, the Bloomingdale, Georgia Police Department, Colleton County Sheriff’s Office in South Carolina and the Nassau County Florida Sheriff’s Office. United States Attorney John P. Fishwick Jr. and Assistant United States Attorney Anthony P. Giorno prosecuted the case for the United States.
Conspirators Sentenced to Federal Prison in Scheme to Fraudulently Obtain over $1.4 Million in Unemployment BenefitsRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Yaw Bempa-Boateng, age 35, of Silver Spring, Maryland, to 30 months in prison; and sentenced Carmen Benitez, age 29, of Scranton, Pennsylvania, and Dulce Oleo, age 39, of the Bronx, New York, each to 18 months in prison, for a conspiracy to fraudulently obtain over $1.4 million in unemployment benefits. Judge Hollander also ordered that Bempa-Boateng, Benitez and Oleo serve three years of supervised release following their prison sentence, and that they forfeit and pay restitution of: $801,710.40; $388,878; and $191,122, respectively.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robin Blake, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; and Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division.
According to their plea agreements, from 2012 to 2015, Bempa-Boateng, Benitez, and Oleo conspired with Diameter Akala and others to cause the Maryland Department of Labor, Licensing and Regulation (DLLR) and the Pennsylvania Department of Labor and Industry (DLI), which administered the unemployment insurance benefit programs in their respective states, to issue fraudulent unemployment by submitting false applications for monetary benefits.
Oleo, her son Wilfred Mendez, and other members of the conspiracy obtained the personally identifying information (PII) of individuals, including Maryland residents. Akala filed false documentation with DLLR and DLI in the names of fictitious companies, falsely stating that the fictitious companies employed and paid wages to actual individuals. In fact, no unemployment insurance taxes were ever paid to DLLR or DLI in the names of the fictitious companies. Akala, electronically and by phone, filed claims in Maryland and Pennsylvania for unemployment benefits in his own name and the names of other individuals, including his cousin, Benitez, and Bempa-Boateng, falsely claiming that they previously worked for those fictitious companies. Akala used the PII of individuals who had given permission to have their information used, as well as many who did not.
Akala and other members of the conspiracy used residential mailing addresses of Bempa-Boateng, Benitzez and Oleo, as well as other co-conspirators in Maryland, New York, the District of Columbia, Pennsylvania and Virginia to register and receive correspondence for the fictitious companies, and apply for and receive unemployment benefits in the form of prepaid debit cards. In exchange for the use of their addresses, the co-conspirators received funds obtained through the fraud, typically in the form of a fraudulently obtained prepaid debit card. The members of the conspiracy regularly contacted DLLR and DLI, falsely representing themselves either to be a representative of one of the fictitious companies or an individual entitled to unemployment benefits. Akala moved between different states in order to retrieve correspondence addressed to fictitious companies and individuals, including prepaid debit cards issued by DLLR and DLI.
Bempa-Boateng, Benitez and co-conspirators Wilfred Mendez, Tawana McClain, Ferny Alexander Moreno Puente, Wilfredo Torres and his half-brother, Eric Gonzalez, agreed to have Akala file fraudulent unemployment claims in their names. Oleo, Mendez, Moreno Puente and Torres also provided the personal identification information and/or addresses of other individuals to file additional false claims in the names of those individuals, and others. The co-conspirators used the fraudulently obtained unemployment benefits prepaid debit cards that were mailed directly to them or provided to them by Akala, at ATMs or stores in order to withdraw and use the funds. Some of the cards were in their names, but some of the cards were in the names of other individuals. Generally, the conspirators kept a portion of the fraudulently obtained funds for themselves and provided the remainder to Akala. Torres also allowed his business address to be used to file fraudulent unemployment benefit claims and when the unemployment benefits debit cards arrived, he either used them or distributed them to co-conspirators.
During the course of the conspiracy the actual loss was approximately $1,468,463.80 in fraudulently obtained unemployment benefits.
Diameter Akala, age 43, of Silver Spring, Maryland, Washington, D.C. and New York, faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud and a mandatory minimum of two years in prison, consecutive to any other sentence, for aggravated identity theft. As part of his plea agreement, Akala will also be required to pay restitution and forfeiture in the full amount of the loss, approximately $1,468,463.80. Judge Hollander has scheduled sentencing for Akala on August 4, 2016, at 10:00 a.m.
Oleo’s son, Wilfred Mendez, age 21, of Bronx, New York; Eric Gonzalez, age 34, of Alexandria, Virginia; Tawana McClain, age 51, of Washington, D.C.; Ferny Alexander Moreno Puente, age 26, of Gaithersburg, Maryland; and Wilfredo Torres, age 36, of Alexandria, Virginia, previously pleaded guilty to their roles in the scheme and are awaiting sentencing.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken 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’s 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.
United States Attorney Rod J. Rosenstein commended the Department of Labor – OIG and U.S. Postal Inspection Service for their work in the investigation, and praised the Maryland Department of Labor, Licensing and Regulation and the Pennsylvania Department of Labor and Industry for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sean R. Delaney, who is prosecuting the case.
Cincinnati-Area Man Pleads Guilty to Plot to Attack U.S. Government OfficersRead the Press Release
Defendant was Directed to Launch Attacks by Deceased ISIL Recruiter Junaid Hussain
Munir Abdulkader, 21, of West Chester, Ohio, pleaded guilty to attempting to kill officers and employees of the United States, providing material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and possession of a firearm in furtherance of a crime of violence. Abdulkader was charged for his plot to kill an employee of a U.S. military installation and then attack a local police station, all in the Southern District of Ohio.
The unsealing today of the charges and plea agreement were announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio and Special Agent in Charge Angela Byers of the FBI’s Cincinnati Field Division.
According to the statement of facts admitted by Adbulkader as part of his guilty plea, beginning in at least July 2014 and continuing into 2015, Abdulkader expressed his support for ISIL on Twitter. From approximately March 2015 to mid-April 2015, Abdulkader began speaking with a confidential human source (CHS) about his desire and intention to travel to Syria in order to join ISIL, and then began making plans and preparations to travel overseas. He secured a passport, saved money for the trip and researched the necessary logistical details. However, in approximately late April 2015, Abdulkader expressed concerns about his ability to travel and postponed his original departure date of approximately May 2, 2015.
In May 2015, Abdulkader was in communication with one or more individuals located overseas who he understood were members of ISIL. One of the individuals was a member of ISIL identified as Junaid Hussein. Through these communications, Hussein directed and encouraged Abdulkader to plan and execute a violent attack within the United States. Abdulkader communicated with Hussein and the CHS about a plan to kill an identified military employee on account of his position with the U.S. government. The plan included abducting the employee at the employee’s home and filming the execution. After killing the employee, Abdulkader planned to perpetrate a violent attack on a police station in the Southern District of Ohio using firearms and Molotov cocktails.
In preparation for the attacks, Abdulkader asked the CHS to purchase a vest for holding ammunition. On or about May 18, 2015, Abdulkader conducted surveillance on a police station in the Southern District of Ohio. On or about May 20, 2015, Abdulkader went to a shooting range, learned how to operate certain firearms and practiced shooting the firearms. Abdulkader also negotiated the purchase of a firearm, an AK-47 assault rifle. On May 21, 2015, in a controlled purchase, Abdulkader bought the AK-47 assault rifle and was subsequently arrested.
Abdulkader was charged by complaint on May 22, 2015. An information was filed against Abdulkader on March 2, 2016, and he pleaded guilty to the three charges in the information on March 24, 2016, before U.S. District Judge Michael R. Barrett of the Southern District of Ohio.
Attempted murder of government employees and officials carries a maximum sentence of 20 years in prison. Material support of a foreign terrorist organization carries a maximum sentence of 15 years in prison. Possession of a firearm in furtherance of an attempted crime of violence carries a mandatory sentence of five years in prison.
Assistant Attorney General Carlin and Acting U.S. Attorney Glassman commended the investigation of this case by the JTTF. The case is being prosecuted by Assistant U.S. Attorney Tim Mangan and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section.
Career Criminal Pleads Guilty to Drug and Firearm OffensesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Derrick Bernard Farmer (40, Tampa) has pleaded guilty to possessing with the intent to distribute crack cocaine and possessing a firearm as a convicted felon. He faces a minimum mandatory term of 15 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, during January 2016, Farmer served as the crack cocaine source for two individuals who then sold the drugs to an undercover detective. On February 3, 2016, law enforcement executed a search warrant at Farmer’s apartment in Tampa and found crack cocaine, drug paraphernalia, and three firearms. Farmer had multiple prior felony drug convictions and therefore is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
This is another case prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) Comprehensive Anti-Gang Initiative (CAGI). The program’s objective is to reduce criminal gangs, violent crime, illegal drugs, and guns through combined enforcement, prosecution, prevention, and re-entry efforts.
British Virgin Islands Man Sentenced to ThreeMonths in Prison for Alien SmugglingRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez sentenced today Ashemba Frett, 22, of Tortola, British Virgin Islands, to three months’ imprisonment and three years of supervised release for encouraging and inducing aliens to illegally enter the United States, United States Attorney Ronald W. Sharpe announced. Judge Gomez ordered Frett to pay a $100 special assessment and perform 300 hours of community service.
On March 3, 2016, Frett pleaded guilty to encouraging and inducing aliens to illegally enter the United States. According to the plea agreement filed with the court, the United States Coast Guard (USSG) conducted a safety stop on a vessel in Jersey Bay, St. Thomas, U.S. Virgin Islands. The vessel was operated by an unidentified individual. Frett jumped into the water, but was apprehended by the Coast Guard. A Haitian national and a national from the Dominican Republic were on-board the vessel. Frett admitted that the Dominican Republic national paid him $700 to travel to St. Thomas from Tortola and that Frett knew he did not possess the proper documents to lawfully enter the United States.
The case was investigated by the USSG, U.S. Customs and Border Protection, Office of Air and Marine, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Bangor Resident Sentenced to Five Years in Prison for his Part in Crack Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that David Chaisson, 23, of Bangor was sentenced to five years in prison and a three-year term of supervised released for his part in a crack cocaine distribution conspiracy that stretched from New Haven, Connecticut to Bangor.
According to court records, the defendant illegally distributed crack in Penobscot County and elsewhere between January 2010 and August 2013. He sold and distributed the cocaine base in multiple half gram and gram amounts to others. The half-gram bags were sold for $50 each and the gram bags were sold for $100 each. The defendant was responsible for collecting proceeds from his transactions and returning the money to the person from whom he had obtained the cocaine base. The defendant profited in money and/or cocaine base for the transactions that he engaged in.
The ultimate source for the cocaine base was in the New Haven, Connecticut area and it was transported to the Bangor area by others in the conspiracy including members and associates of the Red Side Guerilla Brimms, a street gang affiliated with the Almighty Blood Nation, a national street gang. In fact, during his involvement in the conspiracy Chaisson allowed gang member Christian Turner to live in his Old Town residence and deal crack from the location. In imposing sentence, the Court held Chaisson responsible for providing a “safe haven” for Turner and other gang members who came to Bangor to distribute the crack.
The case was investigated by the Maine Drug Enforcement Agency, the New Haven, Connecticut Office of the Bureau of Alcohol Tobacco Firearms and Explosives, and the New Haven Connecticut Department of Police Services.
Armed Career Criminal Sentenced to 15 Years in Prison for Federal Firearms ViolationRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced yesterday a Charlotte man to 15 years in prison for a federal firearms violation, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Jesmene Lockhart, 26, was also ordered to serve three years under supervised release after he is released from prison.
According to the filed court documents and statements made in court, on September 27, 2014, law enforcement officers responding to a 911 call approached Lockhart’s vehicle, which was parked near Marlow Avenue in Charlotte. The officers seized from the driver-side floorboard a pistol loaded with a 31 round magazine and one bullet in the chamber. Officers also recovered from the pocket of the driver’s side door a fully loaded 10 capacity magazine. Court records show that Lockhart has a prior offense and is prohibited from possessing a handgun. He pleaded guilty in July 2015 to one count of possession of a firearm by a convicted felon. Court records indicate that Lockhart was convicted in 2006 of conspiracy to commit armed robbery and robbery with a dangerous weapon and at sentencing he qualified as an armed career criminal.
The investigation was handled by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charlotte Mecklenburg Police Department. Assistant U.S. Attorney Jennifer Dillon prosecuted the case.
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In two separate cases, Judge Conrad also sentenced two Charlotte men on federal gun charges. Laquan Marcell Wilson, 37, and Michael Lamar Perry, 29, were sentenced to 84 months and 46 months in prison and three years of supervised release, respectively. They each pleaded guilty to one count of possession of a firearm by a convicted felon. Perry also pleaded guilty to one count of possession with intent to distribute marijuana.
According to court documents and court proceedings, on June 23, 2014, CMPD officers arrived at an apartment complex located at the intersection of Milton Road and Barrington Drive, in Charlotte. The officers approached Wilson, who was standing with a group of people in an area that is recognized by law enforcement as an open air drug market. According to court records, officers recovered from Wilson a handgun, which was tucked into his waistband, and illegal substances, including crack cocaine and marijuana cigarettes. Court records show that Wilson has a prior offense and is prohibited from possessing a handgun.
Court documents filed in Perry’s case show that on September 11, 2013, CMPD officers arrived at a residence located on Lexington Circle, in Charlotte, in response to complaint regarding drug activity. As the officers approached the residence, they observed Perry through the open front door, reaching into a kitchen cabinet that contained what appeared to be marijuana. Officers entered the residence and while executing a search warrant they seized drugs, over $10,000 in cash and a revolver and ammunition which belonged to Perry. Court records show that Perry has a prior felony conviction and is prohibited from possessing a firearm.
At sentencing, both Wilson and Perry received sentencing enhancements for possession of a firearm in connection with another felony offense.
ATF and CMPD handled Wilson’s investigation. The Drug Enforcement Administration (DEA) and CMPD investigated Perry’s case. Assistant U.S. Attorney William Miller prosecuted both cases.
Anderson man indicted on fraud chargesRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the indictment of an Anderson man on six counts of wire fraud, two counts of making false statements on a loan or credit application, and one count of making false declarations before the court. Kwame Abdul-Haqq, 52, Anderson, was indicted by a federal grand jury in Indianapolis.
Robert Borum has a lengthy criminal history in New York, including convictions for attempted murder, kidnapping, robbery and burglary. Borum legally changed his name in 1993 to Kwame Abdul-Haqq. In December 2006, Adbdul-Haqq applied for a job as a correctional officer with the Indiana Department of Corrections (IDOC). In completing his job application, Abdul-Haqq lied about and failed to disclose his criminal history under the name Robert Borum. The IDOC subsequently hired Abdul-Haqq as a correctional officer at the Pendleton Correctional Facility, where Abdul-Haqq was employed from February 2007 until early 2015. The six counts of wire fraud are based on the last six wire transfers of Abdul-Haqq’s wages from the IDOC to his bank account.
In January 2009, Adbul-Haqq applied for a Federal Housing Administration (FHA) refinance of his existing mortgage on a house he owned in Ingalls, Indiana. Then, in August 2013, he applied for mortgage assistance from FHA on the same house. On both applications, Abdul-Haqq falsely stated that he lived in the home as his primary residence when in fact he was renting the home to another person for $850 a month. Abdul-Haqq and his wife were living in a separate residence in Anderson, Indiana at the time.
In December 2012, Adbul-Haqq perjured himself when he made false statements about his income to the United States District Court for the Southern District of Indiana on an application to file a lawsuit against the IDOC without paying filing fees.
This case was investigated by United States Department of Housing and Urban Development-Office of Inspector General, Special Agent Jared Burns, and the Indiana State Police.
According to Assistant United States Attorney Jonathan A. Bont who is prosecuting this case for the government, Abdul-Haqq faces up to 30 years’ imprisonment for making false statements each loan and credit application, up to 20 years on each wire fraud count, and up to five years on the perjury count.
Alleged Bank Robber DetainedRead the Press Release
PROVIDENCE, R.I. – Joseph W. Lavoie, 49, of Providence, was ordered detained in federal custody today on federal bank robbery and arson charges. It is alleged that on Wednesday Lavoie robbed and set fire to a North Providence branch office of Citizens Bank.
Lavoie is charged by way of a federal criminal complaint with one count each of bank robbery and use of fire to commit a federal felony.
Lavoie’s arrest and detention are announced by United States Attorney Peter F. Neronha, Acting North Providence Police Chief Christopher J. Pelagio, and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
According to court documents, it is alleged that shortly before 10:00 AM on Wednesday, Lavoie telephoned the FBI and threatened to rob and burn down a bank. Lavoie allegedly made the call while at the North Providence branch office of Citizens Bank. While speaking with an FBI agent on the telephone, Lavoie was heard asking someone for the address of the bank, which he then relayed to the FBI agent. Lavoie made the call moments before he allegedly jumped over the counter and announced to a teller, “This is a robbery.” It is alleged that Lavoie opened the cash drawer and began removing cash which he then stuffed inside his sweatshirt. It is alleged that during the robbery, Lavoie grabbed, assaulted and threatened a female teller, and then ignited several items inside the bank.
North Providence Police Department patrol units were dispatched to the bank while the robbery was in progress. First responders observed multiple individuals exiting the bank as black smoke filled the interior of the building. Officers entered the bank where they encountered and detained Lavoie who was located standing behind the teller counter.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Albuquerque Woman Sentenced for Federal Mail Theft ConvictionRead the Press Release
ALBUQUERQUE – Crystal Devon Romero, 33, of Albuquerque, N.M., was sentenced today in federal court to 15 months in prison followed by three years of supervised release for her conviction on theft of mail charges.
Romero and codefendant Michelle Josephine Candelaria, 25, also of Albuquerque, were arrested on Jan. 19, 2016, on a criminal complaint charging them with conspiracy and theft of mail. The complaint alleged that the two women conspired with each other to steal mail in Jan. 2015, in Bernalillo County, N.M. Romero and Candelaria pried open cluster mailboxes and stole mail from them. A search of the truck Romero and Candelaria used to carry out their mail theft scheme uncovered stolen mail, including checks that had been altered and debit/credit cards.
On Feb. 29, 2016, Romero and Candelaria pled guilty to felony informations charging them with stealing mail from Jan. 12, 2016 through Jan. 15, 2016. The guilty pleas were entered without the benefit of plea agreements.
At sentencing, Candelaria faces a maximum of five years in federal prison. Her sentencing hearing has yet to be scheduled.
This case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Nicholas Jon Ganjei.
Albuquerque Felon Sentenced to Prison for Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Francisco Roberto Esquibel, Jr., 34, of Albuquerque, N.M., was sentenced today in federal court to 80 months in prison followed by three years of supervised release for unlawfully possessing a firearm and ammunition.
Esquibel was charged in a criminal complaint filed on June 11, 2015, with being a felon in possession of a firearm and ammunition. The complaint alleged that Esquibel unlawfully possessed a stolen firearm at his residence in Albuquerque on June 10, 2015. According to the complaint, the Albuquerque Police Department (APD) found the firearm while arresting Esquibel on an outstanding warrant.
Esquibel was subsequently indicted on July 31, 2015. According to the indictment, Esquibel was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony crimes, including conspiracy to commit armed robbery, aggravated battery with a deadly weapon, felon in possession of a firearm, receiving or transferring a stolen motor vehicle, and possession of controlled substance with intent to distribute.
On Feb. 11, 2016, Esquibel pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Albuquerque office of Homeland Security Investigations and APD. Assistant U.S. Attorney Jacob Wishard prosecuted the case as part of 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 and violent offenders, primarily based on their prior convictions, from counties with the highest violent crime rates under this initiative.
6 July 2016
Virginia Man Sentenced to Prison for Role in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
Conspired with Others to Seek Over $1.5 Million in Fraudulent Refunds
A federal district court judge sentenced a Virginia man today to 47 months in prison for his involvement in a far-reaching stolen identity refund fraud scheme in which he worked with others to seek over $1.5 million in income tax refunds through the filing of fraudulent federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Channing D. Phillips of the District of Columbia, Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Bradley King, 35, of Fredericksburg, Virginia, is among approximately 20 participants in this scheme who have pleaded guilty to charges in the U.S. District Court for the District of Columbia. According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $42 million. King pleaded guilty earlier this year to one count of conspiracy to defraud the United States with respect to claims, one count of theft of public money and one count of aiding and abetting in fraud and related activity in connection with identification documents.
King was sentenced by U.S. District Judge Ellen S. Huvelle of the District of Columbia. In addition to the prison term, he must also pay $493,436 in restitution to the IRS and a forfeiture money judgment in the amount of $5,400. Following his prison term, King will be placed on three years of supervised release.
According to the government’s evidence, King participated in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought for tax years 2005 through 2013, often in the names of people whose identities had been stolen, including the elderly, residents of assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of and refunds were issued to, people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
According to documents filed with the court, King’s involvement in the scheme began in 2008 and continued through July 2015. Initially, he permitted co-conspirators to use his name, social security number and residential address for the creation and submission of fraudulent income tax returns. From March 2010 through July 2015, he recruited others to provide him with means of identification for use in preparing and filing fraudulent returns. He also recruited others to permit the use of their residential addresses on fraudulent returns that he prepared and filed. King split the proceeds of the fraudulently obtained U.S. Treasury checks with his co-conspirators. In addition, he and others used bank accounts for the negotiation of refund checks that were issued in the names of other persons. Finally, according to the court documents, he sold fraudulently obtained refund checks to another individual in June 2015.
Taking together the losses generated by the use of residential addresses and bank accounts under his control, including checks associated with his co-conspirators, King was responsible for the filing of approximately 444 fraudulent returns that sought more than $1.5 million. These actions led to a total actual loss of approximately $493,436 to the U.S. Treasury, based on the negotiation of a total of 153 U.S. Treasury checks listing addresses under his control and/or negotiated by his recruits.
In announcing the sentence, Acting Assistant Attorney General Ciraolo, U.S. Attorney Phillips, Special Agent in Charge Jankowski, Inspector in Charge Kelokates and Assistant Inspector General Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialists Donna Galindo and Julie Dailey. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
Virginia Man Sentenced to 47 Months in Prison for Role in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
WASHINGTON – A federal district court judge sentenced a Virginia man today to 47 months in prison for his involvement in a far-reaching stolen identity refund fraud scheme in which he worked with others to seek over $1.5 million in income tax refunds through the filing of fraudulent federal income tax returns, announced U.S. Attorney Channing D. Phillips, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Bradley King, 35, of Fredericksburg, Virginia, is among approximately 20 participants in this scheme who have pleaded guilty to charges in the U.S. District Court for the District of Columbia. According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $42 million. King pleaded guilty earlier this year to one count of conspiracy to defraud the United States with respect to claims, one count of theft of public money and one count of aiding and abetting in fraud and related activity in connection with identification documents.
King was sentenced by U.S. District Judge Ellen S. Huvelle of the District of Columbia. In addition to the prison term, he must also pay $493,436 in restitution to the IRS and a forfeiture money judgment in the amount of $5,400. Following his prison term, King will be placed on three years of supervised release.
According to the government’s evidence, King participated in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought for tax years 2005 through 2013, often in the names of people whose identities had been stolen, including the elderly, residents of assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of and refunds were issued to, people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
According to documents filed with the court, King’s involvement in the scheme began in 2008 and continued through July 2015. Initially, he permitted co-conspirators to use his name, social security number and residential address for the creation and submission of fraudulent income tax returns. From March 2010 through July 2015, he recruited others to provide him with means of identification for use in preparing and filing fraudulent returns. He also recruited others to permit the use of their residential addresses on fraudulent returns that he prepared and filed. King split the proceeds of the fraudulently obtained U.S. Treasury checks with his co-conspirators. In addition, he and others used bank accounts for the negotiation of refund checks that were issued in the names of other persons. Finally, according to the court documents, he sold fraudulently obtained refund checks to another individual in June 2015.
Taking together the losses generated by the use of residential addresses and bank accounts under his control, including checks associated with his co-conspirators, King was responsible for the filing of approximately 444 fraudulent returns that sought more than $1.5 million. These actions led to a total actual loss of approximately $493,436 to the U.S. Treasury, based on the negotiation of a total of 153 U.S. Treasury checks listing addresses under his control and/or negotiated by his recruits.
In announcing the sentence, U.S. Attorney Phillips, Acting Assistant Attorney General Ciraolo, Special Agent in Charge Jankowski, Inspector in Charge Kelokates and Assistant Inspector General Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialists Donna Galindo and Julie Dailey. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
United States Attorney Announces Federal Criminal Investigation into Death of Alton SterlingRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today “the FBI’s New Orleans Division, the Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Louisiana have opened a civil rights investigation into the death of Alton Sterling. The Justice Department will collect all available facts and evidence and conduct a fair, thorough, and impartial investigation. As this is an ongoing investigation we are not able to comment further at this time.”
Three Defendants Enter Guilty Pleas to Money Laundering ConspiracyRead the Press Release
St. Thomas, USVI – On July 6, 2016, Tamisha Mc Bean, 32, of St. Thomas, pleaded guilty in federal court on St. Thomas, to conspiracy to launder monetary instruments, United States Attorney Ronald W. Sharpe announced. Co-defendants Demincia Dore, 30, of St. Thomas, and Kishma Weeks, 26, of St. Croix, pleaded guilty on June 30, 2016 and July 5, 2016, respectively, to the same charge. Sentencings for all three defendants are scheduled for November 3, 2016.
According to the plea agreements filed with the court, between July 2012 and December 2013, Mc Bean, Weeks and Dore joined a drug trafficking conspiracy whose members shipped barrels containing at least 700 kilograms but less than 1,000 kilograms of marijuana concealed in “Chow Mein” cans from Los Angeles, California to St. Thomas utilizing a trucking service. Weeks and Dore later deposited the proceeds from the marijuana sales into their bank accounts in St. Thomas and subsequently wired the proceeds electronically to members of the conspiracy in the mainland United States. Mc Bean, on the other hand, utilized the bank accounts of Jamila Felix, a member of the conspiracy, to deposit and later wire marijuana proceeds from Felix’s bank accounts. Mc Bean, Weeks and Dore face a maximum sentence of 20 years, and a fine of not more than $500,000, or twice the value of the property involved in their transactions, whichever is greater.
On May 16, 2016, co-defendants Clarence Griffin, Robert Brown pled guilty to drug trafficking conspiracy and Jamila Felix pled guilty to money laundering conspiracy. On April 20, 2016, co-defendant Larry Thompson also pled guilty to misprision of felony.
“To be truly effective in our efforts to stop the illicit distribution of drugs, it is not enough to interrupt their flow. Members of law enforcement must also make drug trafficking unprofitable to criminals such as those involved in this conspiracy,” said U.S. Attorney Ronald W. Sharpe. This investigation and the resulting guilty pleas clearly demonstrate that the U.S. Attorney’s Office and our law enforcement colleagues are committed to dismantling the illicit drug trade.”
"The defendants in this case were part of a large-scale drug trafficking conspiracy and engaged in a money laundering conspiracy to conceal the proceeds of the marijuana sales. IRS Criminal Investigation is committed to unraveling financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money. We will continue to work with the U.S. Attorney's Office and other law enforcement partners to enforce the law and follow the money, wherever it leads,” said Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI).
This case is the result of a joint investigation by the U.S. Drug Enforcement Administration and IRS-CI. It was prosecuted by Assistant United States Attorney Delia L. Smith.
Three Convicted of Kidnapping ChildrenRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old woman admitted she aided her sister in kidnapping two children from their Corpus Christi home, announced U.S. Attorney Kenneth Magidson. Georgia Gregg pleaded guilty today, while her sister - Jada Gregg-Warren, 32 - and her sister’s boyfriend - Ivan Francisco Alvarez-Benavente, 26, pleaded guilty June 30, 2016.
The court heard that Gregg and Gregg-Warren, both of Corpus Christi, kidnapped the young children, ages five and four, from their residence on the night of Aug. 19, 2015. After the kidnapping, the two women travelled to McAllen with the children. Alvarez-Benavente, a Mexican citizen, followed them in a separate vehicle.
The Corpus Christi Police Department (CCPD) immediately disseminated an Amber Alert in pursuit of all three adults and the two children. As part of the alert, a Child Abduction Response Team was deployed with the assistance of the FBI and U.S. Marshals Service (USMS).
Authorities learned that Gregg returned to Corpus Christi while the couple and the children entered Mexico and stayed at a residence close to the Alvarez-Benavente family. Through a collaborative effort between the U.S. and Mexican authorities, the couple and the children were brought to the U.S. Dec. 16, 2015, at which time Gregg-Warren and Alvarez-Benavente were arrested.
Senior U.S. District Judge Hayden Head accepted the pleas and has set sentencing for Oct. 6, 2016. Both sisters face up to life in federal prison and a possible $250,000 maximum fine. Alvarez-Benavente faces up to 15 years and a possible $125,000 fine.
All three have been and will remain in custody pending their sentencing hearing.
The charges are the result of the investigative efforts of the FBI, CCPD and the USMS. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
The Fourth of July and the End of RamadanRead the Press Release
On the Fourth of July, we celebrated our nation’s independence founded on the principle that all people are created equal and able to worship freely. For centuries, religious freedom has been a pillar of American society and a beacon for those persecuted for their faith. This year, July 5th marked the end of Ramadan, the month of intense prayer, dawn-to-dusk fasting and nightly feasts for millions of Muslims. The juxtaposition prompts reflection on anti-Muslim threats and violence we have witnessed in our country.
Connecticut has not been immune to such shameful acts. On the night of the November 2015, just hours after the terrorist attacks in Paris, a man used a high-powered rifle to shoot into the Baitul Aman Mosque in Meriden. Four shots pierced the Mosque, one passed directly through the prayer area before exiting the building. No one was injured as the attack occurred late at night when no worshippers were inside. Law enforcement responded quickly, determined to restore a sense of security and calm to the Muslim congregation. Prosecutors from our office worked with the FBI, ATF and Meriden Police Department and quickly identified the shooter - Ted Hakey, a former Marine whose property abutted that of the Mosque. After executing search warrants of his house and Facebook account, which revealed evidence of hatred toward Islam and Muslims, he was charged with the federal hate crime of destruction of religious property. On June 17, Mr. Hakey was sentenced to six months in prison for assaulting the mosque’s congregants in the peaceful practice of their religion.
Mr. Hakey’s acts are not isolated. The Department of Justice has led more than 1,000 investigations and 45 prosecutions of anti-Muslim acts of hatred and bigotry. After the Paris attacks, an individual in Florida was arrested for threatening to firebomb two mosques in the St. Petersburg area, and sentenced to a year and a day in prison. In Utah, a man pleaded guilty to tearing a Muslim woman’s hijab off of her head on a plane. This intolerance is fueled by rhetoric that incorrectly seeks to paint all Muslims with a broad brush when, in fact, the overwhelming majority of Muslims—including prominent Muslim leaders in Connecticut—condemn and stand against acts of terrorism that harm innocent people.
A remarkable thing happened in the Hakey prosecution. Mr. Hakey sought and received forgiveness from the congregation at the Baitul Aman Mosque. We applaud the congregation for their extraordinary grace and generosity of spirit - a gesture reflective of true Islam as the promotion of peace and harmony in the world. Last month, we honored the Mosque’s leader at our annual law enforcement awards ceremony. More broadly, we deeply appreciate the dedicated efforts of our Muslim partners throughout the State to keep our communities safe and secure.
As the federal prosecuting office in Connecticut, it is the job of the U.S. Attorney’s Office to secure and protect citizens of all races, religions, ethnic backgrounds and sexual orientations. Our federal prosecutors have forged partnerships with Muslim leaders throughout the state, as well as with Sikh leaders who are often perceived to be Muslim, to help ensure the safety of all our communities and create an environment of trust that recognizes the humanity and dignity of all. We have trained hundreds of police officers about Islam and Sikhism; held anti-bullying workshops at schools and mosques; and launched a Multi-Cultural Advisory Council to gain insight from community members about how best we can serve all communities that we protect.
In the end, anti-Muslim vitriol itself undermines our security. Hateful and vicious rhetoric only strengthens the evil of terrorists who rely heavily on the narrative that America and the West hate Islam. We must rise above our anger to defeat the terrorists’ message of violence, intolerance, and hate.
To the vast majority of our Connecticut residents who recognize that our diversity as a nation makes us stronger, make your voices heard: let the Muslim members of our community know that they are a valued part of our whole. It is the responsibility of all of us to lift up the voices of tolerance, respect, and mutual understanding. We all must pledge to remove hatred and intolerance from our midst, and to stay true to the principles of liberty, justice and equality that define America at its best. The light of our nation shines brightest when its people reflect the promise and values of America.
Tampa Man Sentenced to 50 Years for Child Sexual Exploitation OffensesRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore has sentenced Donald Daniel Robinson (30, Tampa) to 50 years in federal prison for producing, possessing, and distributing child pornography. He pleaded guilty on February 16, 2016.
According to court documents, the Florida Department of Law Enforcement (FDLE) began an investigation after receiving numerous tips from the National Center for Missing and Exploited Children concerning an Internet user at Robinson’s residence who had distributed files containing child pornography through various social networking websites. On July 8, 2015, agents from FDLE and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations executed a search warrant at Robinson’s home. Multiple images of child pornography, including images of local children, were found during the search.
According to victims and evidence obtained from Robinson’s phone, Robinson had posed as a female online to coerce children to produce and send the explicit images to him. The images included minors engaged in sexually explicit conduct. Additionally, two victims told agents that Robinson had persuaded them to perform sex acts on him.
"This lengthy prison sentence is reflective of the heinous nature of the crime committed and a result of the hard work of our HSI special agents and FDLE," said Susan L. McCormick, special agent in charge of HSI Tampa. "This criminal stole the innocence of young children and HSI will do everything in our power to protect our children and bring to justice those involved in these despicable crimes.”
“This case puts into perspective that crimes like this begin with live victims who are children,” said Tom Foy, FDLE Tampa’s Special Agent in Charge. “The suspect in this case manipulated children for his benefit. FDLE and HSI will continue this effort to protect our children from those who would use their innocence and youth for their advantage and criminal activity.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
It is another case 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.
Statement of U.S. Attorney Joyce Vance on the University of Alabama's Action Plan to Combat Racial Discrimination in Fraternities and SororitiesRead the Press Release
BIRMINGHAM – The University of Alabama, which claims the largest fraternity and sorority community in the nation with regard to overall fraternity and sorority membership, today announced the adoption of an action plan to enhance the University’s ability to prevent and respond to racial discrimination, and to increase diversity within the University’s fraternities and sororities. In developing the plan, the University consulted with the U.S. Attorney’s Office for the Northern District of Alabama and the Civil Rights Division of the U.S. Department of Justice.
In Fall 2013, the U.S. Attorney’s Office and the Civil Rights Division contacted the University to inquire about the allegations of race discrimination in the selection process for new members in the University’s traditionally white sororities, and the University’s response. At that time, the University had undertaken a series of efforts to demonstrate the University’s commitment to a discrimination-free campus environment and to increase diversity in the University’s recognized Greek organizations. Following subsequent discussions with the U.S. Attorney’s Office and the Civil Rights Division, the University developed an action plan to memorialize the University’s efforts and serves as a roadmap for future efforts to remove barriers to the Greek system and improve how the University responds to allegations of discrimination. Specifically, the plan clarifies expectations for students and student organizations, and establishes clear and consistent procedures for reporting, investigating, and responding to allegations of discriminatory conduct.
“Greek life is a vital part of the college experience for many students. With today’s action plan, the University of Alabama makes a commitment that this important component of University life, which plays a significant role in the formation of relationships students will carry forward into their adult lives, is not tarnished by racial barriers,” said U.S. Attorney Joyce White Vance. “We look forward to the University’s prompt and full implementation of the action plan. We appreciate the students who came forward with allegations about discrimination in sorority rush and made this action plan possible. We urge the community to contact our office if they have any concerns about discrimination or other civil-rights violations on any campus.”
To make complaints about potential civil-rights violations, including complaints about discrimination based on race, religion, sex, gender, sexual orientation, disability, or veteran status, please call or e-mail the U.S. Attorney’s Office Civil Rights Intake Specialist at (205)244-2185 or [email protected]. To file a written complaint, mail the complaint to the U.S. Attorney’s Office for the Northern District of Alabama, 1801 Fourth Avenue North, Birmingham, Alabama 35203.
Statement from Attorney General Loretta E. Lynch Regarding State Department Email InvestigationRead the Press Release
Attorney General Loretta E. Lynch released the following statement today regarding the State Department email investigation:
“Late this afternoon, I met with FBI Director James Comey and career prosecutors and agents who conducted the investigation of Secretary Hillary Clinton’s use of a personal email system during her time as Secretary of State. I received and accepted their unanimous recommendation that the thorough, year-long investigation be closed and that no charges be brought against any individuals within the scope of the investigation.”
St. Francis Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man convicted of Abusive Sexual Contact was sentenced on July 5, 2016, by U.S. District Judge Roberto A. Lange.
Gregory Paul Quigley, age 51, was sentenced to 1 year and 1 day in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Quigley was indicted for Aggravated Sexual Abuse by Force by a federal grand jury on September 9, 2015. He pled guilty to a Superseding Information charging him with Abusive Sexual Contact on March 29, 2016.
On November 30, 2013, Quigley and a woman, the victim, were drinking alcohol together in an abandoned house in St. Francis. Quigley intentionally made sexual contact with the victim while the victim was incapable of appraising the nature of the conduct.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie Sanderson prosecuted the case.
Quigley was immediately turned over to the custody of the U.S. Marshals Service.
Savannah Residents Charged with Federal Firearm, and Drug Trafficking OffensesRead the Press Release
SAVANNAH, GA – Federal indictments were unsealed yesterday revealing that 8 Savannah residents have been charged with federal firearms and drug-trafficking offenses.
According to evidence presented on Tuesday during detention hearings before U.S. Magistrate Judge GR Smith, the federal indictments are the result of a joint FBI and the Savannah-Chatham Metropolitan Police Department (SCMPD) investigation into gang-related activities in the Savannah area. Law enforcement focused their attention on the Carver Village Thoroughbreds gang, a violent gang operating in the Carver Village neighborhood in Savannah. The gang is allegedly comprised of 15 to 20 members engaged in a number of criminal activities, including shootings, robberies, and the trafficking of narcotics.
Seven of the Defendants charged appeared before Judge Smith on Tuesday for their arraignments and detention hearings. Those Defendants included:
Dennis Lee Williams, 36,
Jermond Anderson Curtis, aka “Mon,” 27,
Adrian Tarazze Byrd, aka “Newie,” 40,
Shamon Antwon Williams, aka “Keith Anderson,” aka “Antonio Antwan Williams, 39,
Eugene Curtis, aka “Gene,” aka “Gene Williams,” aka “Ronnie Curtis,” aka “Eugene Curtis, Jr.,” 50,
Eusi Shango Sampson, 37, and
Felisha Dawn Byrd, 42.
U.S. Attorney Ed Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The Defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The operation was investigated by the FBI and SCMPD. Assistant United States Attorneys Tania Groover and Charlie Bourne are prosecuting the case for the United States. For additional questions, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
San Mateo Resident Pleads Guilty to Operating A Bay Area Prostitution Racketeering EnterpriseRead the Press Release
SAN FRANCISCO –Allen Fong pleaded guilty in federal court yesterday for his role in an international prostitution racketeering enterprise announced United States Attorney Brian J. Stretch and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan Spradlin. The defendant acknowledged being part of an enterprise that recruited women and facilitated their travel and entry into the United States to work as prostitutes in brothels located in the Bay Area.
Fong, 59, of San Mateo, is one of ten defendants named in a broad-ranging indictment filed October 16, 2014. Fong pleaded guilty to all 32 counts charged in the indictment. In pleading guilty, Fong admitted that, from at least August 2006 through July 2014, he was involved in the day-to-day operations of an ongoing racketeering enterprise that recruited women from overseas to work in brothels located in Bay Area cities, including Foster City, Cupertino, San Bruno, San Mateo, and Santa Clara. His activities included renting apartments for use as brothels; arranging for telecommunications services for advertising and arranging appointments for sexual activity between prostitutes and their customers; and transferring proceeds in amounts of thousands of dollars from the United States to Singapore. Fong also admitted he met a co-conspirator at the San Francisco International Airport who was traveling from Singapore to the United States and drove her to an enterprise brothel where she was housed and worked as a prostitute.
In all, the defendant pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, in violation of 18 U.S.C. § 1962(d); one count of conspiracy to use interstate and foreign commerce to promote prostitution in aid of a racketeering enterprise, in violation of 18 U.S.C. §§ 371 and 1952(a)(3); eleven counts of use of interstate commerce to promote prostitution in aid of a racketeering enterprise, in violation of 18 U.S.C. §§ 1952(a)(3) and 2; one count of conspiracy to launder monetary instruments, in violation of 18 U.S.C. §§ 1956(h) and 1956(a)(1)(A)(i); nine counts of substantive money laundering, in violation of 18 U.S.C. § 1956(a)(1)(A)(i) and 2; one count of conspiracy to transport funds from the United States to a foreign country to promote unlawful activity, in violation of 18 U.S.C. §§ 1956(h) & 1956(a)(2)(A); seven counts of transporting funds from the United States to a foreign country to promote unlawful activity, in violation of 18 U.S.C. §§ 1956(a)(2)(A) and 2; and one count of conspiracy to transport an individual in interstate in interstate and foreign commerce for prostitution and importation of alien for immoral purpose, in violation of 18 U.S.C. §§ 371 & 2421, and 8 U.S.C. § 1328.
Fong is scheduled to be sentenced by the Honorable Richard Seeborg, U.S. District Judge, in San Francisco on October 25, 2016, at 2:30. p.m. The defendant is facing the following maximum statutory penalties for the offenses to which he has pleaded guilty:
Statute
Offense
Maximum Penalty
18 U.S.C. § 1962(d)
Conspiracy to conduct enterprise affairs through a pattern of racketeering activity
20 years’ imprisonment and a $250,000 fine, or twice the gross profits or other proceeds
18 U.S.C. §§ 371 and
1952(a)(3)
Conspiracy to use facility in interstate commerce to promote prostitution
5 years’ imprisonment
$250,000 fine, or twice the gross gain or gross loss, whichever is greater
18 U.S.C. §§ 1952(a)(3)
and 2
Use of facility in interstate commerce to promote prostitution
5 years’ imprisonment
$250,000 fine, or twice the gross gain or gross loss, whichever is greater
18 U.S.C. §§ 1956(h) and 1956(a)(1)(A)(i)
Conspiracy to launder monetary instruments
20 years’ imprisonment
$500,000 fine or twice the value of the monetary instrument or funds involved in the transmission or transfer, whichever is greater
18 U.S.C. § 1956(a)(1)(A)(i) and 2
Money laundering
20 years’ imprisonment
$500,000 fine or twice the value of the monetary instrument or funds involved in the transmission or transfer, whichever is greater
18 U.S.C. §§ 1956(h) and 1956(a)(2)(A)
Conspiracy to transport funds from the United States to a foreign country to promote unlawful activity
20 years’ imprisonment
$500,000 fine or twice the value of the monetary instrument or funds involved in the transmission or transfer, whichever is greater
18 U.S.C. §§ 371 & 2421; 8 U.S.C. § 1328
Conspiracy to transport an individual in interstate and foreign commerce for prostitution and importation of alien for immoral purpose
10 years’ imprisonment and $250,000 fine, or twice the gross gain or gross loss, whichever is greater.
In addition to prison terms and fines, assessments, terms of supervised release, and forfeitures may be imposed; however, any sentence following conviction would 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.
Assistant U.S. Attorney Deborah R. Douglas is prosecuting the case with the assistance of Lance Libatique. Assistant United States Attorney David Countryman is handling aspects of the forefeiture matters. The prosecution is the result of a joint investigation by the Department of Homeland Security, Homeland Security Investigations San Francisco Field Office, and the San Mateo Police Department.
Prior Felon from Albuquerque Charged with Armed Bank Robbery and Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jason Blackwood, 43, of Albuquerque, N.M., was arraigned in federal court this morning on an indictment charging him with armed bank robbery, brandishing a firearm during a crime of violence, and being a felon in possession of a firearm. During this morning’s proceedings, Blackwood entered a not guilty plea to the indictment. He remains in federal custody pending trial.
Blackwood was arrested on June 1, 2016, on a criminal complaint charging him with the armed bank robbery of the Bank of the West at 780 Juan Tabo Blvd. NE in Albuquerque on that day. The complaint alleged that Blackwood entered the bank, pointed a handgun at a bank teller, and demanded money. After the bank teller responded to Blackwood’s demand for money, Blackwood left the bank.
Blackwood was charged by indictment on June 30, 2016, with armed bank robbery, brandishing a firearm during a crime of violence, and being a felon in possession of a firearm and ammunition. The indictment alleged that Blackwood committed the three crimes on June 1, 2016, in Bernalillo County, N.M. At the time, Blackwood was prohibited from possessing firearms or ammunition because he previously had been convicted of robbery and second degree commercial burglary.
If convicted, Blackwood faces a statutory maximum penalty of 25 years in prison on the armed bank robbery charge and a statutory maximum penalty of ten years in prison for being a felon in possession. If convicted of brandishing a firearm during a crime of violence, Blackwood faces a mandatory minimum penalty of seven years in prison, which must be served consecutive to the sentence imposed on other charges. Charges in criminal complaints and indictments are mere accusations. Defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Paul H. Spiers is prosecuting the case as part of 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 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 rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates under this initiative.
Owner of Mall Kiosk Businesses Pleads Guilty to Immigration and Money Laundering ChargesRead the Press Release
NEWPORT NEWS, Va. – Omer Gur, 36, of Raleigh, North Carolina, pleaded guilty today to charges relating to his leadership of a visa fraud conspiracy involving over 140 foreign workers from Israel.
According to the statement of facts filed with the plea agreement, Gur admitted that from 2012 through 2014, he operated several business entities known collectively as RASKO. During this time he and other co-conspirators illegally induced and recruited, for employment purposes, foreign nationals to enter the United States from Israel on B-2 visitor visas. Gur and the co-conspirators would then put them to work at mall-based kiosk business in Virginia (including in the Hampton Roads area), Georgia, Pennsylvania and New Jersey through which they sold Dead Sea Salt products. Gur and others paid for their travel to the United States, housed workers in leased apartments, transported workers to work locations and paid workers in cash, wire transfers and gift cards in order to avoid reporting workers and their earnings to employment and taxing authorities. From 2012 through 2014, RASKO earned over $14 million through its kiosk based sales.
To date, nine of the ten charged defendants in the case have been arrested (eight in the United States and one recently extradited from Romania). Gur is the fourth defendant to enter a plea of guilty.
Gur faces a maximum penalty of 25 years in prison and will be sentenced on October 27. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Robin Blake, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; and Bill A. Miller, Director of the Diplomatic Security Service for the U.S. Department of State, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Brian J. Samuels, Lisa R. McKeel and Kevin Hudson are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16cr17.
North Dakota Man Sentenced to Three Years for Traveling with A Stolen Passport and Aggravated Identity Theft ChargesRead the Press Release
CHARLOTTE, N.C. –William Albert Ulmer, aka “Bill Ulmer,” 49, of West Dickinson, North Dakota, was sentenced today to three years in prison for traveling with a stolen passport and aggravated identity theft charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. also sentenced Ulmer to three years of supervised release after he is released from prison.
Thomas Haycraft, Acting Special Agent in Charge of the Washington Field Office, Diplomatic Security Service, U.S. Department of State, joins U.S. Attorney Rose in making todays’ announcement.
According to filed court documents and today’s sentencing hearing, from about March 2009 to about December 23, 2010, Ulmer stole and used his brother’s passport, Wayne Jacob Ulmer, Jr. to travel between the United States and Costa Rica. Court records show that Ulmer used his brother’s passport to fly from Norfolk, Virginia, to San Jose, Costa Rica on March 11, 2009, where he resided for approximately 21 months. According to court records, at the time Ulmer used his brother’s passport to fly to Costa Rica, he was facing state charges in North Carolina related to a worthless check scheme. Court records show that Ulmer flew out of the United States in March 2009, failing to appear to a court hearing related to the pending state charges, scheduled for April 15, 2009, in Dare County Criminal Superior Court.
Ulmer used his brother’s passport again for his return trip to the United States. According to court records, Ulmer left Costa Rica in December 2010, around the time Costa Rican authorities began to investigate the disappearance of Ms. Barbara Strunkova, Ulmer’s live-in girlfriend at the time. According to court records, Ulmer landed at Charlotte Douglas International Airport on December 23, 2010, and presented his brother’s stolen passport to U.S. Customs officials, entering the United States under his brother’s name. After clearing U.S. Customs, Ulmer then used the stolen passport again to continue his air travel to his final destination in Norfolk, Virginia.
Ulmer pleaded guilty in September 2015 to one count of possession of identification document with intent to defraud and one count of aggravated identity theft. Ulmer is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement U.S. Attorney Rose thanked the U.S. Department of State’s Diplomatic Security Service for handling the investigation and the Kill Devil Hills Police Department for their assistance with this case.
Assistant U.S. Attorney Thomas O’Malley, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
New Orleans Man Pleads Guilty to Cocaine DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JEFFERY WILSON, age 31, of New Orleans, pled guilty today to two counts of distributing cocaine hydrochloride and cocaine base as charged in a Superseding Bill of Information.
According to court documents, WILSON made a sale of cocaine hydrochloride on May 13, 2014, to two confidential informants working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in the area near the former Melpomene Housing Development near Martin Luther King Boulevard. On May 30, 2014, WILSON made a second sale of cocaine base (or crack) to the same two informants.
WILSON is facing a term of imprisonment of not more than twenty years for each count, a fine of not more than $1,000,000 and at least three years of supervised release following any term of imprisonment. U.S. District Judge Kurt D. Engelhardt set sentencing for October 12, 2016.
U.S. Attorney Polite praised the work of the ATF in leading this investigation along with members of the NOPD led Multi-Agency Gang Unit (MAG UNIT). Assistant United States Attorneys Edward Rivera, Maurice Landrieu, Jr., Nolan Paige and Nicholas Moses were in charge of the prosecution.
New Jersey Woman Admits Conspiracy to Circumvent Minority Owned Business Requirements for Federal ProjectsRead the Press Release
NEWARK, N.J. –A Union County, New Jersey, woman today admitted accepting kickbacks in exchange for using her company as a “straw” contractor that allowed non-minority owned firms to circumvent regulations on federally funded transportation projects, U.S. Attorney Paul J. Fishman announced.
Carol Sanzo, 69, of Cranford, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging her with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
The U.S. Department of Transportation requires that general contractors seeking to perform certain work on federally funded transportation projects must either subcontract, or demonstrate a good faith effort to subcontract, a percentage of the work to Disadvantaged Business Enterprises (DBEs), which include small businesses that are at least 51 percent owned by women, Hispanic Americans, African Americans, Native Americans, and Asian Americans.
Sanzo owned Sanzo Ltd., a purported broker and supplier of construction materials that she operated as a DBE. Sanzo admitted that in return for kickbacks, her company would act as a “straw” or “pass-through” DBE and accept payment for goods and services that were actually provided by non-DBE contractors on federally funded projects.
For instance, Sanzo admitted that from 2008 through July 2011, she acted as a pass-through between a prime contractor and a non-DBE fuel provider on the Willis Avenue Bridge Project in New York. In order to circumvent the DBE requirements, Sanzo submitted multiple documents that falsely represented that Sanzo Ltd. was supplying fuel to the Willis Avenue Bridge Project when it was actually being supplied by the non-DBE fuel company.
The wire fraud conspiracy to which Sanzo pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Oct. 18. 2016.
U.S. Attorney Fishman credited special agents with the U.S. Department of Transportation, Office of Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker, and criminal investigators of the Port Authority, Office of Inspector General, under the direction of Inspector General Michael Nestor, with the investigation leading to today’s guilty plea.
The government is represented by Special Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward, Acting Chief of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Raymond Brown, Esq., Woodbridge, New Jersey
New Jersey Medical Device Manufacturer Admits Selling Contaminated Ultrasound Gel; Court Orders Permanent InjunctionRead the Press Release
Pharmaceutical Innovations Inc., based in Newark, New Jersey, pleaded guilty today to criminal charges and resolved a civil lawsuit arising from the company’s distribution of ultrasound gel contaminated with bacteria, the Department of Justice announced. The devices at issue are gels that doctors and hospitals use to take ultrasound scans, sonograms, EKGs and similar procedures.
Pharmaceutical Innovations Inc. pleaded guilty before U.S. District Court Judge Esther Salas in Newark federal court to an information charging it with two misdemeanor counts of introducing adulterated medical devices into interstate commerce. In addition to placing the company on two years of probation, Judge Salas ordered the company to pay a criminal fine of $50,000 and to forfeit an additional $50,000 – the approximate value of the adulterated gel.
In a related civil settlement, which was also resolved today, Pharmaceutical Innovations agreed to the forfeiture and destruction of particular gel products that tested exceptionally high for infectious bacteria and agreed to a permanent injunction that requires independent experts and auditors to conduct regular inspections and certifications at the company’s expense.
“The sale of adulterated medical devices puts patients at great risk,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Device manufacturers that fail to comply with good manufacturing practices, thereby threatening patient safety, will be held accountable.”
“Pharmaceutical Innovations shipped defective products that exposed hospital patients to dangerous bacterial contamination,” said U.S. Attorney Paul J. Fishman for the District of New Jersey. “Today’s plea agreement and civil settlement require Pharmaceutical Innovations to accept responsibility for the contamination and take the necessary steps to prevent it from happening again.”
According to documents filed in the case and statements made in court:
Doctors and hospitals use ultrasound gel to take ultrasound scans, sonograms, EKGs and similar procedures. In February 2012, a Michigan hospital reported that 16 surgical patients were infected with Pseudomonas aeruginosa, a bacterial pathogen. The hospital believed the infections were associated with a particular lot of Pharmaceutical Innovations ultrasound gel.
A sample of that lot then tested positive for Pseudomonas aeruginosa. A second lot was shipped in April 2012 and found to be contaminated with two types of bacteria, Pseudomonas aeruginosa and Klebsiella oxytoca, both at the Michigan hospital, and at the company’s Newark facility.
The U.S. Department of Justice filed suit in October 2014 against Pharmaceutical Innovations and its founder, owner, and longtime president, Gilbert Buchalter. (Gilbert Buchalter was later dropped from the case; his son, Charles Buchalter, became company president and was added to the case.) The civil complaint alleged that the company was selling medical devices that the U.S. Food and Drug Administration (FDA) had not approved or cleared, that it was violating current good manufacturing practices and that it failed to take required actions after receiving reports in February 2012 of serious injuries associated with its products.
The Consent Decree of Permanent Injunction requires Pharmaceutical Innovations to submit a detailed compliance plan to FDA within 20 days, and to have outside experts certify in writing by Oct. 31, that the company meets current good manufacturing practice requirements. The FDA will then conduct a follow-up inspection at the company’s expense. For the next three years, Pharmaceutical Innovations must hire outside auditors to conduct and submit detailed audit reports to FDA. In addition, the company will forfeit and pay for the destruction of contaminated “Other Sonic Gel” that the U.S. Marshals Service seized in April 2012 as part of a seizure and forfeiture case filed by the United States.
The criminal investigation in this matter was handled by special agents of the FDA’s Office of Criminal Investigations’ New York Field Office, under the direction of Acting Special Agent in Charge Jeffrey Ebersole.
The criminal prosecution was handled by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office for the District of New Jersey’s Health Care and Government Fraud Unit, with the assistance of Associate Chief Counsel Lynn M. Marshall of the Department of Health and Human Services’ Office of General Food-Food and Drug Division. The civil cases were handled by Trial Attorney Daniel K. Crane-Hirsch of the Civil Division’s Consumer Protection Branch and by Senior Counsel Michele Lee Svonkin and Associate Chief Counsel Julie A. Dohm of the Department of Health and Human Services’ Office of General Counsel–Food and Drug Division. Additional assistance in the civil cases was provided by Assistant U.S. Attorneys Lucy Muzzy, Marion Purcell, Peter Gaeta and Jacob Elberg of the U.S. Attorney’s Office for the District of New Jersey.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of New Jersey, visit its website at https://www.justice.gov/usao/district/nj.
New Jersey Medical Device Manufacturer Admits Selling Contaminated Ultrasound GelRead the Press Release
NEWARK, N.J. – Pharmaceutical Innovations Inc., based in Newark, New Jersey, pleaded guilty today to criminal charges and resolved a civil suit arising from the company’s distribution of ultrasound gel contaminated with bacteria, U.S. Attorney Paul J. Fishman of the District of New Jersey and Principal Deputy Assistant Attorney General Benjamin C. Mizer of Justice Department’s Civil Division announced.
Pharmaceutical Innovations pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging it with two misdemeanor counts of introducing adulterated medical devices into interstate commerce. In addition to placing the company on two years of probation, Judge Salas ordered the company to pay a criminal fine of $50,000 and to forfeit an additional $50,000 – the approximate value of the adulterated gel.
In the civil settlement, which was also resolved today, Pharmaceutical Innovations agreed to the forfeiture and destruction of particular gel products that tested exceptionally high for infectious bacteria and agreed to a permanent injunction that requires independent experts and auditors to conduct regular inspections and certifications at the company’s expense.
“Pharmaceutical Innovations shipped defective products that exposed hospital patients to dangerous bacterial contamination,” U.S. Attorney Fishman said. “Today’s plea agreement and civil settlement require Pharmaceutical Innovations to accept responsibility for the contamination and take the necessary steps to prevent it from happening again.”
“The sale of adulterated medical devices puts patients at great risk,” said Principal Deputy Assistant Attorney General Mizer. “Device manufacturers that fail to comply with good manufacturing practices, thereby threatening patient safety, will be held accountable.”
According to documents filed in the case and statements made in court:
Doctors and hospitals use ultrasound gel to take ultrasound scans, sonograms, EKGs, and similar procedures. In February 2012, a Michigan hospital reported that 16 surgical patients were infected with Pseudomonas aeruginosa, a bacterial pathogen. The hospital believed the infections were associated with a particular lot of Pharmaceutical Innovations ultrasound gel.
A sample of that lot then tested positive for Pseudomonas aeruginosa. A second lot was shipped in April 2012 and found to be contaminated with two types of bacteria, Pseudomonas aeruginosa and Klebsiella oxytoca.
The U.S. Department of Justice filed a civil suit in October 2014 against Pharmaceutical Innovations and its founder, owner, and longtime president, Gilbert Buchalter (Gilbert Buchalter was later dropped from the case; his son, Charles Buchalter, became company president and was added to the case). The civil complaint alleged that the company was selling medical devices that the Food and Drug Administration (FDA) had not approved or cleared, that it was violating current good manufacturing practices, and that it failed to take required actions after receiving reports in February 2012 of serious injuries associated with its products.
The Consent Decree of Permanent Injunction requires Pharmaceutical Innovations to submit a detailed compliance plan to FDA within 20 days, and to have outside experts certify in writing by Oct. 31, 2016 that the company meets current good manufacturing practice requirements. At the company’s expense, the FDA will then conduct a follow-up inspection. For the next three years, Pharmaceutical Innovations must hire outside auditors to conduct and submit detailed audit reports to FDA. In addition, the company will forfeit and pay for the destruction of contaminated gel that the U.S. Marshals Service seized in April 2012 as part of a seizure and forfeiture case filed by the United States.
The investigations leading to the corporate guilty plea and civil settlements were conducted by special agents of the FDA’s Office of Criminal Investigations’ New York Field Office, under the direction of Acting Special Agent in Charge Jeffrey Ebersole.
Assistant U. S. Attorney R. David Walk Jr. of the District of New Jersey’s Health Care and Government Fraud Unit represented the government in the criminal prosecution, with the assistance of Associate Chief Counsel Lynn M. Marshall of the Department of Health and Human Services’ Office of General Counsel-Food and Drug Division. The government was represented in the civil cases by Trial Attorney Daniel K. Crane-Hirsch of the Department’s Consumer Protection Branch, Senior Counsel Michele Lee Svonkin and Associate Chief Counsel Julie A. Dohm of the Department of Health and Human Services’ Office of General Counsel–Food and Drug Division, Assistant U.S. Attorney Lucy Muzzy of the District of New Jersey’s Health Care and Government Fraud Unit, and Peter Gaeta of the District of New Jersey’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Fishman reorganized the health care fraud practice at the U.S. Attorney’s Office of the District of New Jersey, including creating a stand-alone Health Care and Government Fraud Unit, which handles both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.29 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: A. Ross Pearlson Esq., West Orange, New Jersey
Navajo Man from To’hajiilee Arraigned on Indictment Charging Him with Assaulting a Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Bruce Piaso, 34, an enrolled member of the Navajo Nation from To’hajiilee, N.M., was arraigned today in federal court in Albuquerque, N.M., on an indictment charging him with assaulting a federal officer. Piaso entered a not guilty plea to the indictment and was ordered detained pending trial which has yet to be scheduled.
Piaso was arrested on June 3, 2016, on a criminal complaint charging him with assaulting a federal officer. According to the complaint, Piaso allegedly attacked an officer of the Navajo Nation Division of Public Safety on May 28, 2016, on the Navajo Indian Reservation by punching and kicking the officer while attempting to avoid arrest. Piaso allegedly jumped on the officer and attempted to take control of the officer’s weapon. At the time of the alleged assault, the tribal officer was commissioned as a Special Law Enforcement Officer by the BIA’s Office of Justice Services. Piaso was taken into tribal custody on May 28, 2016, and remained in tribal custody until his arrest on the federal charge.
Piaso was indicted on June 30, 2016, and charged with assault on a federal officer resulting in bodily injury, and assault on a federal officer with a dangerous weapon. The indictment alleged that Piaso committed the crimes on May 28, 2016, in Cibola County, N.M.
If convicted of the crimes charged in the indictment, Piaso faces a maximum penalty of 20 years in federal prison. Charges in complaints and indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Nicholas Marshall 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 Cibola County, under this initiative.
Morgantown man pleads guilty to synthetic marijuana distribution, money laundering chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Randolph Kocan, 61, of Morgantown, West Virginia, pled guilty to distribution of synthetic marijuana and money laundering, United States Attorney William J. Ihlenfeld, II, announced.
Kocan was the manager of Mid Nite Adult in Morgantown, WV where he sold synthetic cannabinoids, commonly referred to as “spice”, “K2”, “incense”, or “fake weed” for nearly two years. Synthetic cannabinoids are designer drugs that resemble a controlled substance in molecular structure and actual or intended physiological effect.
He pled guilty today to one count of “Conspiracy to Distribute Synthetic Cannabinoids and Schedule I Controlled Substance Analogue,” and one count of “Engaging in a Monetary Transaction with Cash Derived from Specified Unlawful Activity.” He faces up to twenty years in prison and a fine of up to $1,000,000 for the conspiracy charge and up to ten years in prison and a fine of up to $250,000 for the monetary laundering charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force and the Three Rivers Drug Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Mission Man Sentenced for Abusive Sexual Contact with a Child Under 12 Years OldRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Abusive Sexual Contact was sentenced on July 5, 2016, by U.S. District Judge Roberto A. Lange.
Graham Brody Good Shield, age 20, was sentenced to 9 years in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution has been left open for 90 days.
Good Shield was indicted on two counts of Aggravated Sexual Abuse of a Child by a federal grand jury on August 11, 2015. He pled guilty to Abusive Sexual Contact on March 29, 2016.
In June 2015, Good Shield was at a home in Rosebud, when he began drinking alcohol. An 11-year-old child, the victim, was also at the home. Good Shield intentionally made sexual contact with the victim and knew that the victim was a minor at the time.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Good Shield was immediately turned over to the custody of the U.S. Marshals Service.