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Tuesday 17 May 2016
Former Restaurateur Pleads Guilty to Stealing More Than $585,000 in Withheld Employees' TaxesRead the Press Release
United States Attorney Andrew M. Luger announced the guilty plea of KELLY LOUISE JAEDIKE, 46, for failing to pay taxes that she withheld from her employees. JAEDIKE pleaded guilty yesterday to conspiracy and attempting to evade or defeat tax and for failing to hold in trust and pay over to the IRS, employee money for which she was responsible. JAEDIKE’s brother, DAVID AHERN, 49, pleaded guilty on October 13, 2015, to conspiracy.
“The defendants used their restaurant as a personal piggy bank,” said Assistant United States Attorney Tracy L. Perzel. “What should have been an extremely profitable restaurant bounced employee paychecks, issued IOUs to servers for tips, and couldn’t get deliveries from vendors because of rampant overspending. Employees and the vendors who serviced this restaurant deserved better.”
“Kelly Jaedike and David Ahern cheated their employees by failing to hold in trust and pay over the employees’ taxes, as required by law,” said IRS Criminal Investigation Special Agent in Charge Shea Jones. “In these situations, employees suffer. Their social security statements may not match their actual work histories. And, if those employees do not contact the Social Security Administration to correct this, it will have a lifelong effect on their social security payments. IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves on the backs of hardworking people.”
According to the defendants’ guilty pleas and documents filed in court, from at least 2006 through 2012, the defendants, who are siblings, operated a Melting Pot restaurant franchise in Minneapolis, Minn. As employers, the defendants were responsible for withholding taxes from their employees and paying those withheld taxes to the IRS. In 2006, the IRS imposed a penalty on JAEDIKE for $266,000 because she had failed to pay over taxes withheld from her employees’ paychecks. Instead of working to pay off the debt, JAEDIKE, AHERN, and others worked to hide JAEDIKE’s income and assets to prevent the IRS from seizing them to repay the debt. Among other methods of deception, JAEDIKE and others transferred the restaurant to a nominee entity and issued paychecks that falsely made her wages appear to be wages of her husband, with the intent to hide JAEDIKE’S income and assets.
According to the defendants’ guilty pleas and documents filed in court, from 2009 to 2011, JAEDIKE and AHERN again failed to pay over employment taxes totaling $680,000, including more than $404,000 that was withheld from employee paychecks. JAEDIKE, AHERN and members of their family received more than $1.29 million in personal payments from the restaurant between 2007 and 2011.
According to the defendant’s guilty plea and documents filed in court, JAEDIKE and AHERN used the proceeds of their crime to pay mortgage loans on three family residences, vehicle leases and loans, and expenses for unrelated business ventures like Ahern’s Irish Pub, a restaurant JAEDIKE sought to open in Minneapolis.
JAEDIKE pleaded guilty yesterday before U.S. District Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.
This case is being prosecuted by Assistant United States Attorney Tracy L. Perzel.
Defendant Information:KELLY LOUISE JAEDIKE, 46
Eagan, Minn.Convicted:
- Conspiracy to defraud the United States, 1 count
- Attempt to evade or defeat tax, 1 count
DAVID DALE AHERN, 49
Eau Claire, Wisc.Convicted:
- Conspiracy to defraud the United States, 1 count
Former Purchasing Agent for the Jicarilla Apache Nation Pleads Guilty to Federal Embezzlement ChargeRead the Press Release
ALBUQUERQUE – The former purchasing agent for the Jicarilla Apache Nation pled guilty yesterday in federal court in Albuquerque, N.M., to embezzling funds from the Jicarilla Apache Nation.
Vanessa Cohoe, now known as Vanessa Vicenti, 46, formerly of Dulce, N.M., was charged in an indictment filed on Dec. 17, 2015, with theft of funds belonging to the Jicarilla Apache Nation, an organization receiving more than $10,000 in federal funds. The indictment alleged that Cohoe committed the crime by embezzling approximately $23,039.23 from the Tribe between Dec. 2010 and May 2011. The indictment also charged Cohoe with embezzling more than $1000 in funds belonging to an Indian Tribal organization by using the Jicarilla Apache Nation’s credit card on eight separate occasions between Jan. 2011 and April 2011.
During yesterday’s proceedings, Cohoe pled guilty to the theft charge, and admitted embezzling funds belonging to the Jicarilla Apache Nation. The plea agreement states that Cohoe committed the crime while employed as the purchasing agent for the Jicarilla Apache Nation, a position she held from Feb. 2007 through June 2011. In that capacity, Cohoe had access to and use of the Tribe’s Sam’s Club credit card for authorized purchases. From Jan. 2010 through May 2011, Cohoe made unauthorized purchases using the Tribe’s credit card for gift cards, alcohol, groceries, clothes and cosmetics for herself and her family. Cohoe concealed her embezzlement scheme by intercepting the credit card bills and modifying them before submitting them to the billing department for payment. Cohoe was suspended from her position in May 2011 and was terminated after a full investigation in June 2011.
Under the terms of her plea agreement, Cohoe will be sentenced to a one to five year term of probation. Cohoe also will be required to pay $5,000 in restitution to the Tribe, the amount being the difference between the total unauthorized purchases and the amount that the Jicarilla Apache Nation has been reimbursed by its insurer. Cohoe will remain on conditions of release and under pretrial supervision pending her sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI. Assistant U.S. Attorney Kristopher N. Houghton is prosecuting the case.
Former Lee Police Chief Sentenced to Prison for ExtortionRead the Press Release
BOSTON – The former chief of the Lee Police Department was sentenced today in U.S. District Court in Springfield for extorting a $4,000 payment from a couple facing prostitution charges in Southern Berkshire District Court.
“Mr. Buffis abused his position of authority by extorting cash for his own benefit and greed,” said United States Attorney Carmen M. Ortiz. “This degrades the respect and trust that communities place in their law enforcement officials, and is contrary to the values promoted by those who uphold the law.”
“Mr. Buffis turned his back on his law enforcement profession and his community, choosing instead to break the laws he was sworn to uphold,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The FBI hopes this sentence sends a clear message—corruption at all levels of government will not be tolerated.”
Joseph Buffis, 57, of Pittsfield, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 27 months in prison, two years of supervised release and forfeiture of $4,000. He was convicted following a three-week trial in June 2015 of extortion under color of official right.
As the Lee Police Chief, Buffis solicited and controlled public donations to the Edward J. Laliberte Toy Fund, a children’s holiday toy fund. On Feb. 21, 2012, Buffis extorted a $4,000 “donation” check to the toy fund from two individuals who were facing prostitution-related charges. Buffis deposited the $4,000 check into the toy fund’s bank account and then quickly withdrew $3,990 of these funds in three checks that he wrote to “cash.” Buffis did not cash these checks, but instead deposited them into a personal bank account, and then used the diverted funds to pay various personal expenses. When law enforcement commenced an investigation into this activity, Buffis repeatedly lied about the funds.
At today’s sentencing, Judge Mastroianni stated that, “Mr. Buffis used his position as the highest ranking police officer to essentially auction off his own concept of justice.” He went on to say, “To impugn the integrity of a department like you did is a monumental, terrible, unfair thing, a selfish thing.”
U.S. Attorney Ortiz; SAC Shaw; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Steven H. Breslow and Deepika Shukla of Ortiz’s Springfield Branch Office.
Former Airman Pleads Guilty to Possession of Child PornographyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that on May 16, 2016, Ronald W. McNair, Jr., 25, formerly stationed at Scott Air Force Base, pled guilty to Possession of Prepubescent Child Pornography. McNair faces a term of imprisonment of not more than twenty years, a fine up to $250,000, and a term of supervised release of five years to life. Sentencing for McNair is set for September 6, 2016, in Benton, Illinois.
The charge arose after the National Center for Missing and Exploited Children ("NCMEC") produced three (3) CyberTipline reports after receiving information from Microsoft that an individual, identified as Ron McNair, was uploading what appeared to be images of child pornography to his Microsoft SkyDrive Account. The first CyberTipline Report noted that Ron McNair, using an e-mail address of "[email protected]," had uploaded one image to his SkyDrive account on March 24, 2014. The second CyberTipline Report noted that Ron McNair, using the e-mail address "[email protected]," uploaded one image to that account on April 14, 2014. Finally, the third CyberTipline Report noted that the person identified as Ron McNair uploaded twenty-one images to that account, again using the e-mail address "[email protected]," on April 14, 2014. All of the CyberTipline Reports reported that McNair used the IP address 75.132.130.141 when he uploaded the images.
An administrative subpoena determined that the subscriber of the IP address used at the time of the uploads belonged to McNair, who was stationed at Scott Air Force Base but resided in Belleville, Illinois.
The Department of Homeland Security executed a search warrant at McNair’s address. When McNair and his roommate were asked if they shared electronic devices, both individuals indicated that they did not. The roommate also indicated that the two even had separate wi-fi accounts. During the search, McNair made some statements about viewing child pornography on the Torrent network but refused to divulge the specific websites that he had visited. Among the items seized from McNair was a Western Digital, My Passport, external hard drive.
A forensic review of the Western Digital, My Passport, external hard drive, revealed that it contained 4,522 image and 144 video files of child pornography. A large number of these image and video files were of prepubescent children.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Belleville Police Department, the Air Force Office of Special Investigations, and the Department of Homeland Security – Homeland Security Investigations. The case is assigned to Assistant United States Attorney Angela Scott and Special Assistant United States Attorney Shane Kelbley.
Florida Man Sentenced to 8 Years in Prison for Role in Heroin-Cocaine Trafficking Conspiracy in Monroe-Wayne CountiesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a man who pleaded guilty to participating in a heroin and cocaine trafficking conspiracy that operated in Monroe and Wayne Counties in 2011-2014, was sentenced to eight years in prison today by Senior U.S. District Court Judge Richard P. Conaboy in Scranton.
According to United States Attorney Peter Smith, the defendant, Carlos Ruben Cruz, age 48, who resided in Wayne and Monroe Counties in Pennsylvania throughout much of the drug conspiracy but was arrested in the state of Florida, previously admitted to overseeing the conspiracy which involved three of his children and the distribution of between 400 and 700 grams of heroin, which is equivalent to between 13,000 and 23,000 retail bags of heroin.
Cruz was indicted by a federal grand jury in Scranton in August 2014, as a result of an investigation by the Drug Enforcement Administration, the Pennsylvania State Police, the Wayne County District Attorney’s Office, and Pocono Mountain Regional Police.
Three of Cruz’s children, Rubie Cruz, age 26, Tiffanyann Cruz, age 22, and Brandon Cruz, age 24, have previously pleaded guilty to participating in the drug conspiracy. Brandon Cruz and Tiffanyann Cruz were sentenced to prison terms. Rubie Cruz is awaiting sentencing.
Judge Conaboy also ordered Carlos Cruz to serve three years on supervised release following his prison sentence.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Florida Man Convicted of Cocaine Conspiracy Involving over 5 KilogramsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that JACOBO GARCIA, age 28, of Ft. Meyers, Florida, pled guilty before U.S. District Judge Shelly D. Dick to conspiring to possess with the intent to distribute over five kilograms of cocaine. Following his conviction, GARCIA was remanded into the custody of the U.S. Marshal’s Service. A sentencing hearing has not yet been scheduled.
During his guilty plea hearing, GARCIA admitted that, on February 29, 2016, Baton Rouge Police Officers found 5.7 kilograms of cocaine hidden in the gas tank of GARCIA’s vehicle. The cocaine was packaged in fifteen (15) vaccum sealed bags. GARCIA admitted that he and a passenger had picked up the aforementioned cocaine in Houston, Texas.
U.S. Attorney Green stated: “This case is yet another example of the drug pipeline that runs through and into our district. We will continue to work aggressively with the DEA, the Baton Rogue Police Department, and our many other federal, state, and local law enforcement partners to fight this menace.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Drug Enforcement Administration, and the Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Final Defendant Pleads Guilty to Armed Robberies, Killing of Store ClerkRead the Press Release
ABINGDON, VIRGINIA – The last of three individuals who went on an armed robbery spree that ended with the killing of a store clerk in Mr. Airy, North Carolina in 2012, pled guilty today in federal court to a number of charges that carry the potential for a life sentence, United States Attorney John P. Fishwick Jr. announced today.
Joshua Robert Berry, 32, of Bluewell, Virginia, pled guilty today to two counts of armed robbery, two counts of brandishing a firearm during those armed robberies, one count of conspiring to commit armed robbery and one count of using a firearm in the commission of an armed robbery that resulted in the death of another person.
Last week, two others involved in the crime spree, Emmanuel William Foster, 27, of Bluewell, Virginia, pled guilty to two counts of armed robbery, two counts of brandishing a firearm during those armed robberies, one count of conspiring to commit armed robbery and one count of using a firearm in the commission of an armed robbery that resulted in the death of another person. Sarah Looney Berry, 28, of Bluewell, Virginia, pled guilty last week to one count of conspiring to commit armed robbery and one count of using a firearm in the commission of an armed robbery that resulted in the death of another person.
“These individuals took part in a crime spree that ultimately robbed a man of his life,” United States Attorney John P. Fishwick Jr. said today. “For nearly a month, a community was terrorized as these defendants committed armed robbery after armed robbery. Justice has been served today and I am thankful to the brave men and women who investigated this case and ultimately put an end to this group’s actions.”
According to evidence presented at previous hearings by First Assistant United States Attorney Anthony P. Giorno and Assistant United States Attorney Zachary T. Lee, Joshua Beery, Foster, and Sarah Berry, conspired to commit a series of armed robberies in Virginia, West Virginia and North Carolina from April 2012 through May 2012.
Berry admitted today that on April 29, 2012, he and Foster robbed the Marquee Cinema in Wytheville, Virginia. Both men carried firearms during the robbery and were wearing black hoodies with bandanas covering their faces. Berry said they entered the business with their weapons drawn and ordered the manager to empty the registers. When they were told there was no money in the registers, Joshua Berry and Foster took the manager, and another employee, into a back room and told them to open a safe. As the manager was having trouble opening the safe, Foster put his handgun to the manager’s head and threatened to kill him if the other employee did not get the safe open. The manager was able to open the safe, which contained $4,317. Video from a nearby Wal-Mart showed a dark colored, four-door sedan, matching a vehicle commonly operated, at that time, by Sarah Berry, waiting in the parking lot behind the theater. Sarah Berry admitted last week in federal court to driving Joshua Berry and Foster away from the robbery in the sedan.
Joshua Berry also admitted today that on May 21, 2012 he and Foster robbed the Abingdon Cinemall. The two men once again entered the business wearing black hoodies, but this time wore full-face masks and sunglasses and once again had guns drawn. When the manager observed the men entering the business, she ran to her office, one of the men saw her and chased her. Foster and Joshua Berry robbed the cash registers of the business and left with approximately $200 in cash. Video surveillance from Abingdon High School, which is located nearby, showed a pick-up truck waiting behind the business with its lights on during the robbery. Sarah Berry admitted last week to using her father’s pick-up truck during the robbery to drive Foster and Joshua Berry away from the scene.
On May 25, 2012, at approximately 11:50 p.m., Joshua Berry and Foster entered Eddie’s Zip Foods in Mt. Airy, North Carolina. The store owner, Donald Arnder, and his employee, Gerardo Rojas, were reviewing the days’ receipts and getting ready to close the store at midnight. The two men entered the store with Joshua Berry carrying a rifle and Foster carrying a handgun. Joshua Berry admitted today that he and Foster entered the store and that Foster and Arnder, who had a .38 caliber revolver, exchanged gunfire. Foster shot Arnder twice with a .9 mm handgun, once in the arm and once in the abdomen. Arnder died at the scene. During the exchange, Foster was shot once. After Joshua Berry carried Foster to Sarah Berry’s waiting car, the two brought Foster to a nearby residence and tried to remove the bullet themselves. When they could not get the bullet out, they took Foster to a hospital in Bland, Virginia for treatment. Foster was eventually transferred to a trauma center in Roanoke, Virginia for treatment.
The investigation of the case was conducted by the Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mt. Airy, North Carolina, Police Department, the Abingdon Police Department, the Wytheville Police Department and the Bluefield, West Virginia Police Department. First Assistant United States Attorney Anthony P. Giorno and Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Eight Defendants Charged with Bankruptcy Fraud Involving over $3 Million in Concealed AssetsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Guy G. Gebhardt, Acting United States Trustee for Florida, Georgia, Puerto Rico and the U.S. Virgin Islands (Region 21), announce the filing of federal charges against 8 defendants in 5 separate cases, involving the alleged concealment of over $3 million dollars in assets from the United States Bankruptcy Court, the United States Trustee’s Office in Miami, Florida, and the defendants’ chapter 7 bankruptcy trustees. The alleged conduct was committed in order to shield assets from creditors and avoid the repayment of outstanding debts.
United States Attorney Wifredo A. Ferrer stated, “The U.S. Attorney’s Office and our law enforcement partners are committed to bringing to justice those who defraud the United States Bankruptcy Courts and the United States Trustee’s Office, and abuse the bankruptcy process in order to escape the repayment of personal debts. Each year, countless bankruptcy petitions are filed by law-abiding individuals who face difficult financial circumstances. The cases announced today reaffirm our dedicated efforts to protect the federal bankruptcy system from fraud and ensure that those in need can benefit from vital governmental support services.”
“Federal bankruptcy proceedings can be a lifesaver for honest individuals overwhelmed by debt,” said William J. Maddalena, Assistant Special Agent in Charge, FBI Miami. “Yet others seek to line their pockets through illicit actions. The FBI takes seriously our responsibility to pursue allegations of bankruptcy fraud and will investigate debtors who corrupt the bankruptcy process through deceit and lies.”
Acting United States Trustee Guy G. Gebhardt stated, “Criminal bankruptcy fraud threatens the integrity of the bankruptcy system, as well as public confidence in that system. We are deeply grateful to U.S. Attorney Wifredo A. Ferrer and our partners for their commitment to combating bankruptcy-related crimes, as demonstrated by the charges announced today against eight defendants.”
The U.S. Trustee Program is the Justice Department component that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 21 is headquartered in Atlanta, Ga., with additional offices in Miami, Orlando, Tallahassee, and Tampa, Fla.; Macon and Savannah, Ga.; and San Juan, P.R.
Today, United States Attorney Ferrer, the FBI and Acting United States Trustee Gebhardt announce the most recent results of their joint investigative efforts to combat bankruptcy fraud.
1. United States v. Kathleen Anne Smith Cutuli and Gregory Lee Cutuli, Case No. 16-20233-CR-Altonaga
On April 8, 2016, Kathleen Anne Smith Cutuli, 65, and Gregory Lee Cutuli, 65, both of Plant City, were charged in a seven-count indictment with committing criminal offenses related to Kathleen Cutuli’s petition for chapter 7 bankruptcy.
According to allegations contained in the indictment, the defendants falsely and fraudulently transferred and concealed property and then Kathleen Cutuli declared bankruptcy to avoid paying money to Kathleen’s former business partner. Specifically, Kathleen and Gregory Cutuli transferred Kathleen’s $1,819,068 federal income tax refund to Gregory and concealed the transfer from the Bankruptcy Court, the U.S. Trustee’s Office and the chapter 7 bankruptcy trustee. Additionally, Kathleen Cutuli made false statements in her bankruptcy petition filed with the U.S. Bankruptcy Court in Miami, FL, and concealed from the Bankruptcy Court, the U.S. Trustee’s Office and the chapter 7 bankruptcy trustee approximately $32,000 in furs and jewelry, approximately $114,000 in household goods and furnishings, and approximately $117,404 in cash. In total, Kathleen Cutuli and Gregory Cutuli transferred and concealed more than $2,000,000 in assets.
Kathleen and Gregory Cutuli are charged with conspiracy to fraudulently transfer and conceal property in contemplation of a bankruptcy proceeding under Title 11 of the U.S. Bankruptcy Code, in violation of Title 18, United States Code, Section 371. Kathleen Cutuli is also charged with the fraudulent transfer and concealment of property in contemplation of a case under Title 11, in violation of Title 18, United States Code, Section 152(7); concealment of property in connection with a case under Title 11, in violation of Title 18, United States Code, Section 152(1); and making a false oath and account in relation to a case under Title 11, in violation of Title 18, United States Code, Section 152(2).
This case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
2. United States v. Rolando Garcia and Aileen Crespo, Case No. 16-20297-CR-Scola
On April 29, 2016, Rolando Garcia, 52, and Aileen Crespo, 43, of Miami, were charged in an eleven-count indictment for committing criminal offenses related to Garcia’s petition for chapter 7 bankruptcy.
According to the allegations contained in the indictment, from at least as early as February 28, 2012, and continuing through October 10, 2014, Garcia and Crespo conspired to commit bankruptcy fraud by transferring assets they held jointly to Crespo in a divorce settlement, before Garcia filed for bankruptcy. These pre-bankruptcy transfers shielded the assets from Garcia’s creditors once Garcia filed a false and fraudulent bankruptcy petition on July 19, 2013 in U.S. Bankruptcy Court in Miami, Florida. Among the assets concealed were properties in Ashe County, North Carolina, valued at approximately $366,300.00; $36,000 in cash used to purchase a Jaguar vehicle valued at approximately $80,000; and $100,257.60 in cash from the sale of a condo in the Bahamas.
Garcia and Crespo are charged with conspiracy to commit bankruptcy fraud, the fraudulent transfer and concealment of property in contemplation of a case under Title 11, and the fraudulent transfer and concealment of property in connection with a case under Title 11. Garcia is also charged with making false oaths and accounts in relation to a case under Title 11.
This case is being prosecuted by Assistant U.S. Attorney Daniel Cervantes.
3. United States v. Rebecca Solemani-Appelbaum, Case No. 16-20212-CR-Williams
On April 1, 2016, Rebecca Solemani-Appelbaum, 50, of Boca Raton, was charged in a ten-count indictment for committing criminal offenses related to her petition for chapter 7 bankruptcy.
According to the allegations contained in the indictment, on or about February 13, 2012, before filing for chapter 7 bankruptcy in U.S. Bankruptcy Court in Miami, Florida, Solemani-Appelbaum liquidated approximately $102,445.89 from her IRA Account. Solemani-Appelbaum then transferred the money into a family member’s account, over which the defendant had sole authority. Between March 1, 2012, and April 11, 2012, Solemani-Appelbaum used almost all of the transferred funds. Solemani-Appelbaum failed to disclose the transfer of those funds, as required in her bankruptcy petition and various amended filings. When asked about the accuracy of her disclosures in the bankruptcy petition, Solemani-Appelbaum made false representations to the U.S. Bankruptcy Court, the U.S. Trustee’s Office and the chapter 7 trustee.
Solemani-Appelbaum is charged with the fraudulent transfer and concealment of property in contemplation of a case under Title 11, concealment of property in connection with a case under Title 11, and making a false oath and account in relation to a case under Title 11.
The case is being prosecuted by Assistant U.S. Attorney Daniel Cervantes.
4. United States v. Walter Alexander Lista, Case No. 16-20318-CR-Martinez
On May 5, 2016, Walter Alexander Lista, 43, of Pinecrest, was charged in a twelve-count indictment for committing criminal offenses related to his petition for chapter 7 bankruptcy.
According to the allegations contained in the indictment, from on or about March 26, 2012, through on or about February 21, 2014, Lista transferred and concealed his assets, including a Jeep Wrangler, a thirty-four foot boat (“the Isabella”), approximately $41,200 in cash, and his interest and roles in companies that he owned. On or about May 30, 2013, Lista filed for chapter 7 bankruptcy in U.S. Bankruptcy Court in Miami, Florida. The indictment alleges that Lista failed to disclose the transfer of these assets, the value of which exceeds approximately $160,000, as required in his bankruptcy petition and his various amended filings. When asked about the accuracy of his disclosures in the bankruptcy petition, Lista made false representations to the U.S. Bankruptcy Court, the U.S. Trustee’s Office and the chapter 7 trustee.
Lista is charged with conspiracy to fraudulently conceal and transfer property in connection with a case under Title 11, the fraudulent transfer and concealment of property in contemplation of a case under Title 11, concealment of property in connection with a case under Title 11, and making a false oath and account in relation to a case under Title 11.
The case is being prosecuted by Assistant U.S. Attorney Jonathan K. Osborne.
5. United States v. Yechezkel Nissenbaum and Tamar Nissenbaum, Case No. 16-20333-CR-Cooke
On May 6, 2016, Yechezkel Nissenbaum, 39, and Tamar Nissenbaum, 35, both of Miami Beach, were charged in a three-count indictment for committing criminal offenses related to their joint petition for chapter 7 bankruptcy.
According to the allegations contained in the indictment, on or about March 3, 2010, the Nissenbaums liquidated a Regions Bank Certificate of Deposit. On or about February 10, 2011, the Nissenbaums filed a joint petition for chapter 7 bankruptcy in U.S. Bankruptcy Court in Miami, Florida. The indictment alleges that the Nissenbaums failed to disclose the liquidation of the Certificate of Deposit, worth approximately $141,829.61, as required in their bankruptcy petition. When asked about the accuracy of her disclosures in the bankruptcy petition, Yechezkel Nissenbaum made false representations to the U.S. Bankruptcy Court, the U.S. Trustee’s Office and the chapter 7 trustee.
The Nissenbaums are charged with conspiracy to fraudulently transfer or conceal property in contemplation of a case under Title 11 and the fraudulent transfer and concealment of property in contemplation of a case under Title 11. In addition, Yechezkel Nissenbaum is charged with making a false oath and account in relation to a case under Title 11.
The case is being prosecuted by Assistant U.S. Attorney Jonathan D. Stratton.
Mr. Ferrer commended the investigative efforts of the FBI and thanked the U.S. Trustee’s Office for referring each of these matters.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Detroit Man Sentenced to More Than 7 Years on Federal Drug Conspiracy ChargeRead 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 Raymond “Ken” Ferris, 60, of Detroit, Maine, was sentenced today in U.S. District Court in Bangor, Maine to a 87 month term of imprisonment and a 3 year term of supervised release for conspiracy to possess with the intent to distribute and distribute oxycodone.
According to court records, between April 2013 and April 2015, Ferris conspired with others in Somerset County to distribute and possess with intent to distribute oxycodone supplied by an out-of-state source of supply. He was arrested on April 16, 2015 when deputies and agents with the Somerset County Sheriff’s Department and the U.S. Drug Enforcement Administration executed a search warrant at his Detroit, Maine residence. Agents seized 100 oxycodone 30 mg tablets, heroin, marijuana and an assortment of drug paraphernalia. During the course of the investigation an undercover DEA agent purchased oxycodone from Ferris on two separate occasions.
Ferris was prosecuted federally in 2006 for possession with intent to distribute over a kilogram of cocaine. He was sentenced in U.S. District Court in Bangor to 51 months imprisonment.
Danville Man Sentenced for Manufacturing and Distributing Illegal Dietary SupplementsRead the Press Release
ABINGDON, VIRGINIA – A Danville business owner, who manufactured and shipped illegal pro-hormones, designer steroids, throughout the United States, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon.
Steven Donald Wood, 38, of Danville, Va., previously waived his right to be indicted and pled guilty to a one count Information charging him with illegally distributing misbranded drugs in interstate commerce. United States District Judge James P. Jones granted the United States’ motion for a reduced sentence based on Wood’s extraordinary assistance in the investigation and prosecution of others and sentenced Wood to probation for a term of one year. Judge Jones also ordered Wood to forfeit $1.5 million which had been paid prior to Wood pleading guilty and pay a fine of $10,000. Since soon after his arrest in 2011, Wood has provided extensive cooperation in the United States’ investigation and prosecution of others in the pro-hormone business.
“The misbranding of drugs is a serious offense that puts those who ingest these substances in danger,” United States Attorney John P. Fishwick Jr. said today. “I am grateful to our law enforcement partners who continue to investigate the misbranding of these powerful steroids.”
“Dietary supplements that contain active pharmaceutical ingredients not approved by FDA present a serious health risk to those who take them,” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigation’s Metro Washington Field Office. “Our office will continue our vigilance and work to remove these dangerous drugs from the U.S. marketplace.”
Wood, through his business entities Competitive Edge Labs, LLC, and MKZ Exports, LLC, caused the manufacture and distribution of large amounts of dietary supplements, specifically “pro-hormones,” a new generation of steroids not specifically listed as an anabolic steroid under the Controlled Substances Act. Wood obtained his raw powder from Xinli “Eric” Li, a Chinese national, who pleaded guilty in federal court in Abingdon on December 4, 2015. Li forfeited $1.6 million and served five months in prison prior to being deported to China.
The dietary supplements were M-Drol and H-Drol. M-Drol listed its single active ingredient as 2a, 17a di methyl etiocholan 3-one, 17b-ol, a chemical nomenclature for methasterone, also known as “Superdrol.” In 2011, the FDA identified methasterone as a “designer steroid” or “designer drug”, a structural or functional analog of a controlled substance designed to mimic the pharmacological effects of the original drug. H-Drol listed its single active ingredient as 4-chloro-17a-methyl-androst-1,4-diene-3-17b-diol, the nomenclature for a designer drug identified as halovar, a clone of halodrol. Both products were deemed to be misbranded drugs because the label was false, that is, the product was labeled as a “dietary supplement” but contained a “steroid” or drug. Therefore, neither product met the definition of a dietary supplement. Both products were popular among those seeking an increase in muscle mass and loss of body fat and were distributed widely in the U.S. and overseas, both at retail stores and via the internet. The use of anabolic steroids or dietary supplements that contain anabolic steroids or designer steroids may trigger numerous adverse health effects in the human body.
The investigation, known as Operation Grasshopper, continues into others in the United States who illegally manufactured pro-hormones. Additional charges are anticipated.
The investigation is being conducted by the United States Food and Drug Administration – Office of Criminal Investigations. The Pittsylvania County Sheriff’s Office and Pittsylvania County Commonwealth’s Attorney’s Office provided assistance in the case. Assistant United States Attorney Randy Ramseyer and Special Assistant United States Attorney Kevin Jayne are prosecuting the case for the United States.
Conway Man Sentenced to 25 Years in Prison for Production of Child PornographyRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Special Agent in Charge Diane Upchurch, of the Little Rock Field Office for the Federal Bureau of Investigation (FBI), announced today that Nicholas Tensley, age 29, of Conway, Arkansas, was sentenced to 25 years imprisonment for production of child pornography.
Nicholas Tensley was indicted on May 6, 2015, with one count of production of child pornography and one count of distribution of child pornography. On October 9, 2015, Tensley pled guilty to production of child pornography. On Tuesday, Tensley was sentenced by Chief United States District Judge Brian S. Miller to 25 years imprisonment, and ten years of supervised release.
"All too often some people argue that the downloading of child pornography from the internet is a ‘victimless’ crime. Nothing could be further from the truth." Thyer said. "As a matter of fact this case clearly demonstrates that as long as there is a market for individuals who would download child pornography, there will be individuals like Tensley who will sexually abuse other children so that they can then trade or sell those images of abuse with like-minded people." Thyer went on to say, "The sexual exploitation of a four-year-old child in the care of a trusted individual is despicable and sickening in and of itself. However, this child—along with thousands of others like her—will be victimized over and over again as sexual deviants download and view the images of her abuse from the internet. "
The charges in the Indictment were based upon an investigation that began in March 2015 when an undercover police officer (UC) with the FBI and the District of Columbia Metropolitan Police Department (MPD) Child Exploitation Task Force posted an advertisement in an area of a website site frequented by individuals who have a sexual interest in children and incest.
On April 14, 2015, Nicholas Tensley answered the UC’s advertisement stating, "I just moved to the area and looking for like minded people. Im 5’10" 28 blk male." The UC responded, "Sweet DC hereinto yng incest, etc…You a dad?" Tensley responded and stated he had two female children, ages six and ten. After a brief email exchange, Tensley provided his KIK screen name. During the communications with the UC, Tensley sent two images of child pornography and indicated they were pictures of his daughters.
On April 14, 2015, Tensley stated he had engaged in vaginal intercourse with his daughter as recently as two weeks prior to the messaging conversation and had performed oral sex with her more recently. On April 15, 2015, during a chat with the UC on KIK, Tensley sent seven images of his purported daughter. Several of the images contained sexually explicit images of a prepubescent female.
On April 16, 2015, members of the Little Rock Division of the FBI located and arrested Tensley. Tensley was advised of his Miranda rights and confessed to distribution of the pictures in his conversation with the UC. Tensley provided written consent to search his Samsung S-4 Galaxy telephone and showed agents the conversation in his KIK application. Tensley initially denied taking the photographs; however, he later admitted to taking the photographs using his Samsung Galaxy S-4 telephone in the Fred’s Store parking lot in Star City, Arkansas. The victim was identified by Tensley as a four-year-old female. Tensley does not have any minor daughters but was left to babysit the minor female. Tensley further stated he had deleted the images from his telephone after communicating with the UC because he became nervous he might be speaking with law enforcement officials.
"The production of pornography involving children is an affront to our communities. The sentencing today reflects our disgust at the actions of Tensley," stated Special Agent In Charge Diane Upchurch with the FBI in Little Rock. "We appreciate the efforts of the United States Attorney’s Office, the Conway Police Department, and the District of Columbia Metropolitan Police Department in this case, and will continue to work with all of our partners to identify these predators and their victims."
The investigation was conducted by the Little Rock Office of the Federal Bureau of Investigation and the Federal Bureau of Investigation (FBI)/MPD Child Exploitation Task Force. The case was prosecuted by Assistant United States Attorney Kristin Bryant.
Cape Girardeau County Man Pleads Guilty to Federal Charges Involving Food Stamp FraudRead the Press Release
Cape Girardeau, MO – The co-owner of B & H Convenience store pled guilty Monday to charges of misusing the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program. Patrick Buck admitted with his plea that he illegally redeemed up to $550,000 in SNAP benefits between January 2010 and March 2014.
According to court documents, the Missouri Department of Social Services, Family Support Division (FSD) issues Electronic Benefits Transfer Cards (EBT) for the Supplemental Nutrition Assistance Program (SNAP), more commonly known as food stamps. Authorized grocery retailers can only accept and redeem SNAP benefits for the sale of eligible food items. They are not permitted to exchange or redeem SNAP benefits for cash or other ineligible items such as household goods, alcoholic beverages, tobacco products, cellular telephones or other non-food items.
Patrick Buck, Cape Girardeau, MO, pled guilty to four felony counts of unauthorized use of SNAP benefits. He appeared Monday in Cape Girardeau before United States District Judge Ronnie L. White. Sentencing has been set for August 15, 2016.
Each count carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Department of Agriculture, Office of Inspector General-Investigations and Sikeston Department of Public Safety. Assistant United States Attorney Anthony L. Franks is handling the case for the U.S. Attorney’s Office.
Cape Girardeau County Man Pleads Guilty to Federal Charges Involving Crop Insurance FraudRead the Press Release
Cape Girardeau, MO – Bobby David Lowrey pled guilty to multiple charges involving federal crop insurance fraud, theft of government property and wire fraud.
According to court documents, Bobby David Lowrey owned and operated farms and related businesses in Parma, New Madrid County, Missouri, including Bobby David Lowrey Farms, Lowrey and Lowrey, Inc. of Parma, Missouri, John Radin Farms and Kathy Ellsworth Farms.
Bobby David Lowrey placed farms in other people’s names in order to obtain Direct and Counter-cyclical Payment Program proceeds that he was not eligible to receive under the federal government’s crop insurance program. The investigation disclosed that John Radin, the alleged operator of Radin Farms, was employed by Bobby David Lowrey and not actively engaged in farming and did not have any financial interest in the farming operations. Lowery made false statements to the United States Department of Agriculture pertaining to the Federal Crop Insurance Corporation and Direct and Counter-cyclical Payment Program.
From 2007 to 2012, Bobby David Lowrey obtained $240,367 in Direct and Counter-cyclical Payments in the name of John Radin Farms. Additionally, $207,729 worth of Multiple Peril Crop Insurance Indemnities, premium subsidies and administrative subsidies were paid on behalf of John Radin Farms between 2008 and 2012.
The investigation also disclosed that between 2006 and 2011, Bobby David Lowrey transmitted by wire “Extended Work Search Waivers” to the Missouri Division of Employment Security and reported that his employees were on a temporary layoff when in reality they were still working and being paid. The transmissions made to the Missouri Division of Employment Security resulted in more than $60,000 worth of unemployment Insurance benefits being paid to employees that they were not eligible to receive.
Bobby David Lowrey, Parma, MO, pled guilty to two felony counts of making false statements regarding crop insurance benefits, one felony count of theft of government property and one felony count of wire fraud before United States District Judge Stephen N. Limbaugh, Jr., in Cape Girardeau. Sentencing has been set for August 16, 2016.
These charges carry penalties ranging from 5 to 30 years in prison and or fines up to $1 million. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Department of Agriculture-Office of Inspector General-Investigations, Missouri State Highway Patrol-Rural Crimes Investigative Unit and United States Department of Labor-Office of Inspector General-Investigations. Assistant United States Attorney Anthony L. Franks is handling the case for the U.S. Attorney’s Office.
Cambria County Man Pleads Guilty to Firearms ViolationsRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty to a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Montez Ricardo Holland, 54, of Johnstown, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Jan. 4, 2013, Holland possessed a Sturm, Ruger & Company, Model P95DC, 9 mm semi-automatic pistol. On Apr. 27, 1998, Holland was convicted in Lycoming County, Pa., of a drug trafficking crime, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms or ammunition.
Judge Gibson scheduled sentencing for Aug. 30, 2016, at 1:00 p.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Holland.
According to Mr. Hickton, Holland is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Buffalo Woman Pleads Guilty to Conspiracy to Distribute HeroinRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jeannette Knightner, 34, of Buffalo, NY, pleaded guilty before U.S. District Judge William M. Skretny to conspiracy to possess with intent to distribute, and to distribute, heroin within 1,000 feet of public housing authority property. The charge carries a mandatory minimum penalty of one year in prison, a maximum of 40 years, and a fine of $2,000,000.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that in June of 2014, the defendant agreed with Reginald Royal, Sr. to store heroin at her previous residence at 31 Olcott Lower in Lackawanna. On June 11, 2014, Reginald Royal, Sr. sold $100 worth of heroin to a confidential informant at Royal, Sr.’s residence at 1 Olin Lane which is part of the Baker Homes Public Housing Projects, a public housing facility owned by the Lackawanna Municipal Housing Authority. The heroin sold to the confidential informant was retrieved from the defendant’s residence.
In addition, at the request of co-defendant Royal, Sr., on June 17, 2014, the defendant drove to Columbus, Ohio with another individual and purchased 23.5 grams of heroin for $2,200 that Royal, Sr. had provided to her. On June 18, 2014, as Knightner was driving back to New York, she and the other individual were pulled over by the Erie County Sheriff’s Office near Angola, NY and the heroin was discovered in the defendant’s purse.
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge, the Lackawanna Police Department, under the direction of James L. Michel, Chief of Police, and the Erie County Sheriff’s Office, under the direction of Timothy B. Howard, Sheriff.
Sentencing is scheduled for August 31, 2016 at 11:00 a.m. before Judge Skretny.
Buffalo Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr., announced today that Renwick Samuel, 51, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine, was sentenced to time served (41 months) in prison.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that between 2006 and December 2012, the defendant conspired with three co-defendants to possess and distribute cocaine in Buffalo. Samuel was arrested in December 2012 along with Angel Gonzalez and Mica Donadelle. Another co-defendant, Kevin Liburd, was arrested in 2014 in the Virgin Islands and extradited to the Western District of New York. Gonzales and Liburd have been convicted and sentenced. Donadelle has been convicted and is awaiting sentencing.
Today’s sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes representatives of the Amherst Police Department, the Buffalo Police Department the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Erie County Sheriff’s Department, the Hamburg Police Department, the Niagara Frontier Transportation Authority Police, the New York State Police, the Town of Tonawanda Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and U.S. Immigration and Customs Enforcement, Office of Enforcement & Removal Operations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Boston Man Sentenced to Ten Years in Prison for Child Sex TraffickingRead the Press Release
BOSTON – A Boston man was sentenced today in U.S. District Court in Boston in connection with sex trafficking a 16-year-old girl.
Jonathan White, 29, of Dorchester, was sentenced by U.S. District Court Judge Indira Talwani to 10 years in prison and five years of supervised release. In December 2014, White pleaded guilty in U.S. District Court for the Eastern District of New York to recruiting and transporting a minor to engage in prostitution. The matter was transferred to the District of Massachusetts for sentencing.
In June 2012, a 16 year-old girl from Georgia began chatting, over Tagged.com, a social networking site, with an individual who was working for White as a prostitute and recruited others to prostitute for White. White paid for the victim’s bus ticket from Atlanta to Orlando, Fla. Once there, the victim engaged in commercial sex acts with clients solicited through Backpage.com ads, with White ultimately receiving the money that customers paid. White and the prostitute then drove the victim from Florida to Brooklyn, where she engaged in more commercial sex acts solicited over the Internet. A few weeks later, the victim became involved with another pimp. After that pimp was arrested, law enforcement discovered White’s role in the victim’s exploitation and he was charged.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation in Boston, made the announcement today. The case was prosecuted in Boston by Assistant U.S. Attorney Seth Kosto of Ortiz’s Civil Rights Enforcement Team, and in Brooklyn by Assistant U.S. Attorney Soumya Dayanana.
Blue Springs Man Sentenced to 20 Years for PCP ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Blue Springs, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute PCP as well as a money-laundering conspiracy.
Walter Deandre Sorrells, also known as “Juice,” “Waterboy,” and “Walt,” 39, of Blue Springs, was sentenced by U.S. Chief District Judge Greg Kays on Monday, May 16, 2016, to 20 years in federal prison without parole.
On Aug. 13, 2015, Sorrells pleaded guilty to participating in a conspiracy to distribute at least one kilogram of PCP from Jan. 1, 2007, to March 13, 2013, as well as a conspiracy to conduct financial transactions that involved the proceeds of illegal drug trafficking.
Co-defendant Stephon Donte Williams, 32, of Lynwood, Calif., supplied Sorrells with PCP. Williams, who pleaded guilty to his role in the drug-trafficking and money-laundering conspiracies, was sentenced on May 13, 2016, to 20 years and two months in federal prison without parole.
Sorrells admitted that he purchased large quantities of PCP from Williams and re-sold it in smaller quantities in the Kansas City metropolitan area. Thirteen controlled drug purchases, totaling well in excess of one kilogram of PCP, were made directly with Sorrells. Additionally, at least two shipments of PCP (and other controlled substances) were taken by law enforcement before they were delivered to Sorrells and containers of another shipment were recovered from Sorrells. These shipments, in total, exceed one kilogram of PCP.
Sorrells and Williams are among 20 defendants charged in the indictment, all of whom have either been convicted at trial or pleaded guilty.
According to the indictment, at least 10 law enforcement-controlled purchases of PCP, cocaine and crack cocaine were conducted with at least five of the defendants. At least 10 arrests or searches of co-conspirators occurred where PCP, cocaine or crack was recovered, the indictment says, and on multiple occasions during the conspiracy, defendants were found in possession of hundreds or thousands of dollars in cash, with no known legitimate income.
All of the co-defendants are severally and jointly liable to forfeit to the government $814,000, which was received in exchange for the unlawful distribution of PCP, cocaine or crack cocaine. According to the indictment, that is based upon a conservative street price of $200 per ounce of PCP (3,099 ounces distributed), $1,000 per ounce of cocaine (129 ounces distributed) and $1,100 per ounce of crack cocaine (60 ounces distributed).
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the FBI and IRS-Criminal Investigation.
Amsterdam Man Pleads Guilty to Trafficking CocaineRead the Press Release
ALBANY, NEW YORK – Matthew Clark, age 32, of Amsterdam, New York pled guilty on May 17, 2016 to conspiracy to possess with the intent to distribute more than 500 grams of cocaine, announced United States Attorney Richard S. Hartunian.
Senior U.S. District Judge Gary L. Sharpe is scheduled to sentence Clark on September 12, 2016. Clark faces at least five years in prison and up to 40 years in prison, a fine of up to $5 million, and at least five years and up to a life term of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
During the plea hearing, Clark admitted that he recruited at least one other person to accept packages of cocaine mailed from Puerto Rico to the Capital Region which he collected for redistribution. On October 2, 2014, federal law enforcement officers watched a letter carrier deliver a package to a house in Amsterdam. After the package was delivered, Clark walked up to the porch, picked up the package, and placed it under his sweatshirt. When an Amsterdam police officer arrived, Clark threw the package into the brush on the side of the street. The package contained 571 grams of cocaine inside a DVD player.
This case was investigated by the U.S. Postal Inspection Service, Homeland Security Investigations, the Drug Enforcement Administration, and the Amsterdam Police Department, and is being prosecuted by Assistant U.S. Attorney Elizabeth R. Rabe.
Alleged Athens Shooter Sentenced to Federal Prison on Multiple Gun ConvictionsRead the Press Release
G. F. Peterman, III, Acting United States Attorney for the Middle District of Georgia, announced that Rico Antonio Barnett, age 33, from Athens, Georgia, was sentenced today by the Honorable C. Ashley Royal, United States District Judge. Mr. Barnett was sentenced to serve 156 months’ imprisonment for possession of a firearm in furtherance of a drug trafficking crime on May 1, 2015, and possession of a firearm by a convicted felon on May 8, 2015. The second gun conviction involved Mr. Barnett allegedly shooting another man in an aggravated assault case that remains pending in Athens-Clarke County Superior Court.
“Mr. Barnett has proven himself a violent and dangerous man, and the streets of Athens will be a safer place without him,” said Acting U.S. Attorney George F. Peterman, III. “In just one week last May, he was arrested twice in possession of multiple guns, illegal drugs, and after having allegedly shot a man. His conduct is even more disturbing when one considers that he has more than 45 prior state convictions, including for battery, family violence battery, and being a felon in possession of a firearm.”
On May 1, 2015, Mr. Barnett was arrested by officers with the Athens-Clarke County Police Department (ACCPD) who responded to a call that a man and woman were arguing in the parking lot of a gas station on Highway 29 in Athens. In the course of their investigation, ACCPD officers found a loaded .45 caliber handgun and a quantity of marijuana hidden in the bushes near the gas station which Mr. Barnett ultimately admitted to having possessed. A week later, on May 8, 2015, ACCPD police officers responded to a report of a shooting in a residential neighborhood. Upon arrival, the police located a victim who had been shot in the leg and who identified the shooter as Mr. Barnett, who had recently received bond from his arrest the week before. Shortly thereafter, the police located a car matching the description of the car that had fled the shooting, and after a high-speed car chase through another residential neighborhood, the police apprehended Mr. Barnett, who had fled on foot from the car while throwing two firearms away.
The case was investigated by the Athens Clarke County Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Peter Leary is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Acting U.S. Attorney Tom Beall to Speak to Wyandotte County Bar Assn.Read the Press Release
KANSAS CITY, KAN. -- Acting U.S. Attorney for the District of Kansas Tom Beall will speak Wednesday to the Wyandotte County Bar Association.
Beall will speak at 6:15 p.m. May 18 during the association’s meeting at the Hollywood Casino at the Kansas Speedway in Kansas City, Kan. He will be talking about his work overseeing 50 assistant U.S. Attorneys and their support staff members in offices in Kansas City, Kan., Topeka and Wichita.
Beall took the position in April after Barry Grissom stepped down as U.S. Attorney.
More information about the U.S. Attorney’s Office for the District of Kansas is available online at https://www.justice.gov/usao-ks .
Monday 16 May 2016
Western District’s U.S. Attorney’s Office remembers fallen law enforcement officers during National Police Week 2016Read the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La.: Members of the public join with law enforcement across the country for National Police Week – May 15th through May 21st – to honor law enforcement officers who made the ultimate sacrifice, as well as the family members, friends and fellow officers they left behind.
“National Police Week is a special opportunity to recognize the great and heroic work of law enforcement officers,” said U.S. Attorney Stephanie A. Finley. “We pay a special tribute to those who have lost their lives in the line of duty for the safety and protection of others. There is no greater service to one’s community than to be prepared to die for the safety of others.”
This year, the names of 128 officers killed in the line of duty are being added to the National Law Enforcement Officers Memorial in Washington, D.C., during the 28th Annual 2016 Candlelight Vigil on the evening of May 13th. These names include officers who were killed during 2015 and officers who died in previous years who have not been previously added to the Memorial. The fallen officers of 2015 include four members of the law enforcement community in the Western District of Louisiana:
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Juandre Devon Gilliam Sr., Jeanerette Police Department, who died April 8, 2015;
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Thomas Joseph LaValley, Shreveport Police Department, who died August 5, 2015;
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Steven J. Vincent, Louisiana State Police, who died August 24, 2015; and
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Henry Andres Nelson, Sunset Police Department, who died August 26, 2015.
To assist local public safety officers in the work that they do, the U.S. Attorney’s Office offers a number safety and survival training throughout the year. The Western District’s Law Enforcement Community Coordinator is Mike Campbell, a former Shreveport Police Chief, who oversees the course curricula and sessions. The courses are open to federal, state, local, military and tribal law enforcement officers.
“We are committed to provide training to assist our law enforcement officers to do their jobs better and safer,” Finley stated. “Our goal is for all public safety officers to return home to their families at the end of their shifts each and every day.”
National Police Week is a collaborative effort of many organizations dedicated to honoring America’s law enforcement community.
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West Mifflin Man Sentenced to 5½ Years in Prison for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 66 months’ imprisonment on his conviction of conspiracy to distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Aaron Atkins, 34, of West Mifflin, PA.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Aaron Atkins was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Atkins.
Washington County Man Indicted for Receiving and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Tristan Shaw, age 31, of Granville, New York, was indicted on May 11 for receiving and possessing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations.
If convicted of all charges, Shaw faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Shaw was arraigned today in Albany before United States Magistrate Judge Daniel J. Stewart, and released under pretrial supervision conditions pending a trial scheduled for July 18, 2016 before Senior United States District Judge Gary L. Sharpe.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Warwick Man Detained in National Child Pornography InvestigationRead the Press Release
PROVIDENCE, R.I. – Jordan Monroe, 50, of Warwick, R.I., was ordered detained in federal custody on Friday following an initial appearance in U.S. District Court in Providence on child pornography charges.
Monroe was charged by way of a federal criminal complaint with receiving and distributing child pornography, and possessing and accessing with intent to view child pornography after Homeland Security Investigations (HSI) agents allegedly discovered tens of thousands of computer file folders containing images and videos of alleged child pornography on numerous computers seized from Monroe’s Rhode Island residence.
Monroe’s arrest and detention is announced by United States Attorney Peter F, Neronha and Matthew J. Etre, Special Agent in Charge of HSI for New England.
During the execution of a court authorized search warrant at Monroe’s residence on Friday, HSI agents, assisted by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force and the Warwick Police Department, seized six computers, three which act as servers. A brief forensic review of the contents of four of the computers by HSI and ICAC agents with expertise in forensic computer examinations revealed a massive collection of computer files which allegedly contain images and videos of child pornography. A forensically trained HSI agent advised investigators that he saw tens of thousands of files with names consistent with child pornography that he has seen in other investigations in his experience.
According to court documents and information presented to the court, a nationwide investigation launched in September 2015 by HSI’s Cyber Crimes Center Child Exploitations Unit and the Department of Justice, Child Exploitation and Obscenity Section, High Technology Investigative Unit has identified Internet billboards allegedly used for posting, sharing and viewing child pornography. It is alleged that numerous IP addresses in the United States and outside the country have been identified as allegedly viewing and sharing child pornography on the billboards. It is alleged that one such IP address was identified as belonging to a person at Monroe’s residence.
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 John P. McAdams.
The FBI is assisting HSI in the investigation of Jordan Monroe.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
United States and State of Vermont Resolve Matter with Accountant Raymond Kushi and Accounting Firm Kushi and Myers, PCRead the Press Release
The Office of the United States Attorney for the District of Vermont and the office of the Vermont Attorney General announced the resolution of their investigations of accountant Raymond Kushi and accounting firm Kushi and Myers, PC for submitting or causing to be submitted false claims for payment to Medicaid as part of the rate setting process for the Bennington School, Inc. Under the terms of the agreement, Mr. Kushi and Kushi and Myers, PC paid $105,000 to resolve the matter. Of the $105,000 settlement, the State of Vermont will receive approximately $51,618 and the United States will receive approximately $53,382.
Until 2013, BSI, a for-profit, closely-held corporation, operated a residential program in Bennington, Vermont that offered therapeutic and educational services for socially and emotionally challenged boys and girls. The State of Vermont placed many students at BSI, and was responsible for their tuition and other expenses. The funding for these placements came from the Vermont Medicaid program (approximately 60% federal funding and 40% state funding) and from several Vermont state agencies, including the Agency of Education, the Department of Mental Health, and the Department for Children and Families. This funding was based on a per diem rate for each student, determined on an annual basis by the Division of Rate Setting (DRS), within the Vermont Agency of Human Services. The formula for the rate calculated by DRS for Medicaid and Education payments to BSI was based upon the school’s reported allowable expenses. From at least 2002 through 2011, Raymond Kushi and Kushi and Myers, PC submitted the rate setting materials, including the school’s reported allowable expenses, to DRS for purposes of BSI obtaining Medicaid funding. The Government’s investigation showed that not all of BSI’s claimed allowable expenses contained in the materials submitted by Raymond Kushi and Kushi and Myers, PC were in fact legitimate and allowable for the rate calculation. In 2013, in connection with the global resolution of the criminal and civil investigation of BSI, four former officers of BSI paid a total of $4.3 million to resolve potential civil health care fraud liability.
The current settlement resolves allegations that Raymond Kushi and Kushi and Myers, PC shared responsibility for the false information provided, resulting in an inflated Medicaid reimbursement rate and Medicaid overpayment to BSI from at least 2002 through 2011.
Pursuant to the terms of the settlement agreement, the agreement and payment are neither an admission of liability by Raymond Kushi or Kushi and Myers, PC, nor a concession by the United States or the State of Vermont that their claims were not well founded. The United States and the State of Vermont acknowledge that the scheme at issue here did not impact the quality of services offered to students at BSI.
This matter, in connection with the larger BSI case, was investigated by the United States Attorney’s Office, the Medicaid Fraud and Abuse Unit of the Vermont Attorney General’s Office, the Office of Inspector General of the U.S. Department of Health and Human Services, the Internal Revenue Service, and the Federal Bureau of Investigation.
Raymond Kushi and Kushi and Myers, PC were represented by Warren Hutchison, Esq., of LeclairRyan of Boston, Massachusetts. The United States was represented by Assistant U.S. Attorney Nikolas P. Kerest. The State of Vermont was represented by Assistant Attorney General Steven Monde.
United States Reaches Settlement with Defense Contractor over Yacht ExpensesRead the Press Release
PHILADELPHIA - Materials Sciences Corporation, a government contractor headquartered in Horsham, Pennsylvania, has agreed to pay the United States $219,909 to resolve allegations that the company unreasonably billed federal agencies to cover depreciation and other expenses associated with a 58-foot-long Hatteras Yacht Fisherman. The settlement was announced by United States Attorney Zane David Memeger.
Specifically, the United States contended that between 2006 and 2015, Materials Sciences Corporation described the yacht as the company’s Mississippi office and incorporated yacht-related expenses into the company’s indirect cost rate submissions to receive payment under government contracts, primarily with the United States Navy. The United States contended that the yacht-related costs were unreasonable and therefore unallowable.
Materials Sciences Corporation also agreed not to use the yacht for any purpose and to dispose of the vessel within a specified period of time. The agreement therefore ensures that the company’s billing practice will not repeat itself in the future.
As part of this settlement, Materials Sciences Corporation did not admit liability or wrongdoing.
This investigation was led by the United States Naval Criminal Investigative Service and the United States Department of Defense Criminal Investigative Service. The case was handled by Assistant United States Attorneys Michael S. Macko and Virginia Powel.
Ukrainian Hacker Admits Role in Largest Known Computer Hacking and Securities Fraud SchemeRead the Press Release
First Hacker Convicted in Conspiracy to Steal 150,000 Press Releases from Three Major Newswire Companies for Use in Illicit Trades
NEWARK, N.J. – A Ukrainian hacker today admitted his role in an international scheme to hack into three business newswires, steal yet-to-be published press releases containing non-public financial information, and use the information to make trades that allegedly generated approximately $30 million in illegal profits, U.S. Attorney Paul J. Fishman announced.
Vadym Iermolovych, 28, of Kiev, Ukraine, pleaded guilty before U.S. District Judge Madeline Cox Arleo to a three-count information charging him with conspiracy to commit wire fraud, conspiracy to commit computer hacking, and aggravated identity theft.
Iermolovych was arrested on Nov. 12, 2014 in connection with other charges related to computer hacking and credit card fraud. Today’s guilty plea marks the first conviction of one of the hackers responsible for breaching the networks of Marketwired L.P. (Marketwired), PR Newswire Association LLC (PRN), and Business Wire (collectively, the “Victim Newswires”), and stealing press releases containing confidential nonpublic financial information relating to hundreds of companies traded on the NASDAQ and NYSE.
According to documents filed in this case and statements made in court:
At today’s plea hearing, Iermolovych admitted that he was personally involved in the hacks into the Victim Newswires. He admitted to hacking into PRN’s network between January 2013 and March 2013. He also admitted that he obtained a set of user credentials of PRN employees stolen from a computer hack into a social networking website and then used at least one of those credentials to ultimately gain access into PRN’s computer network. Iermolovych also admitted that he sold press releases stolen from the network intrusion into Marketwired, and purchased access into Business Wire’s network, all in furtherance of a larger conspiracy to profit from the stolen draft press releases.
Five other members of the conspiracy – two computer hackers and three securities traders – were charged by federal indictment brought by the District of New Jersey (DNJ). The related 23-count DNJ indictment charged Ivan Turchynov, 28, Oleksandr Ieremenko, 24, and Pavel Dubovoy, 33, all of Ukraine, Arkadiy Dubovoy, 51, and Igor Dubovoy, 29, of Alpharetta, Georgia. Arkadiy Dubovoy and Igor Dubovoy both pleaded guilty to the wire fraud conspiracy charged in Count One of the DNJ indictment on Feb. 18, 2016 and Jan. 20, 2016, respectively.
The Eastern District of New York (EDNY), in a related indictment, charged four securities traders: Vitaly Korchevsky, 50, of Glen Mills, Pennsylvania, Vladislav Khalupsky, 45, of Brooklyn, New York and Odessa, Ukraine, Leonid Momotok, 48, of Suwanee, Georgia, and Alexander Garkusha, 48, of Cummings and Alpharetta, Georgia. Garkusha pleaded guilty to the wire fraud conspiracy charged in Count One of the EDNY indictment on Dec. 21, 2015.
As alleged in the indictments, between February 2010 and August 2015, computer hackers based in Ukraine, gained unauthorized access into the computer networks of Marketwired L.P. (Marketwired), PR Newswire Association LLC (PRN), and Business Wire. They used a series of targeted cyber-attacks, including “phishing” attacks and SQL injection attacks, to gain access to the computer networks. The hackers moved through the computer networks and stole press releases about upcoming announcements by public companies concerning earnings, gross margins, revenues, and other confidential and material information.
The hackers shared the stolen releases with the traders using overseas computer servers that they controlled. In a series of emails, the hackers even shared “instructions” on how to access and use the overseas server where they shared the stolen releases with the traders, and the access credentials and instructions were distributed amongst the traders. In an email, which was sent by one of the traders, the instructions for accessing the overseas server suggested that users conceal their Internet Protocol address when accessing the server as a precaution to avoid detection. The traders created “shopping lists” or “wish lists” for the hackers listing desired upcoming press releases for publicly traded companies from Marketwired and PRN. Trading data obtained over the course of the investigation showed that, after the shopping list was sent, the traders and others traded ahead of several of the press releases listed on it.
The traders generally traded ahead of the public distribution of the stolen releases, and their trading activities shadowed the hackers’ capabilities to exfiltrate stolen press releases. In order to execute their trades before the releases were made public, the traders sometimes had to execute trades in extremely short windows of time between when the hackers illegally accessed and shared the releases and when the press releases were disseminated to the public by the newswires, usually shortly after the close of the markets. Frequently, all of this activity occurred on the same day. Thus, the trading data often showed a flurry of trading activity around a stolen press release just prior to its public release.
The traders traded on stolen press releases containing material nonpublic information about the following publicly traded companies that included, among hundreds of others: Align Technology Inc., Caterpillar Inc., Hewlett Packard, Home Depot, Panera Bread Co., and Verisign Inc.
The traders paid the hackers for access to the overseas servers based, in part, on a percentage of the money the traders made from their illegal trading activities. The hackers and traders used foreign shell companies to share in the illegal trading profits.
The conspiracy to commit wire fraud charge is punishable by a potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The conspiracy to commit fraud and related activity in connection with computers carries a potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The aggravated identity theft charge carries a mandatory penalty of two years in prison consecutive to any sentence received in connection with the other two counts. Iermolovych’s sentencing is scheduled for Aug. 22, 2016.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations Division, under the direction of Director Joseph P. Clancy, and special agents from the Newark Field Office, under the direction of Acting Special Agent in Charge Jeffrey Wood, with the ongoing investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Andrew S. Pak and Daniel Shapiro of the Economic Crimes Unit, Computer Hacking & Intellectual Property Section, David M. Eskew, Deputy Chief of the General Crimes Unit, Assistant U.S. Attorney Svetlana M. Eisenberg of the General Crimes Unit, and Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture and Money Laundering Unit.
Defense counsel: K. Anthony Thomas, Esq.
Two sentenced in cigarette smuggling operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two individuals were sentenced in federal court in Martinsburg today for their roles in an unlawful cigarette smuggling scheme, United States Attorney William J. Ihlenfeld, II, announced.
Fahd Hamood Aljahaf, 38, of Bronx, New York, and Muneer Kaid Khaled, 26, of Brooklyn, New York, collaborated to facilitate a trafficking network designed profit from the unlawful sale of contraband cigarettes. The defendants transported large quantities of cigarettes across state lines for redistribution and sale. The cigarettes were acquired in Virginia, where the tax rate for cigarettes is one of the lowest in the nation, and sold in New York, which has one of the nation’s highest tax rates. The cigarettes were possessed and transported in West Virginia.
Each of the defendants pled guilty in February 2016 to one count of “Conspiracy to Traffic in Contraband Cigarettes.” Aljahaf was sentenced today to 18 months in prison. Khaled was sentenced today to probation for a term of 36 months.
Assistant U.S. Attorneys Michael Stein and Shawn Adkins prosecuted the case on behalf of the government. Homeland Security Investigations, the Frederick County, Virginia Sheriff’s Office, the Virginia Office of Attorney General, the Alcohol and Tobacco Tax and Trade Bureau, the West Virginia State Police, the New York Department of Taxation and Finance, the Federal Bureau of Investigation, and the Internal Revenue Service - Criminal Investigation led the inquiry.
Chief U.S. District Judge Gina M. Groh presided.
*NOTE* This press release was corrected at 6:16PM on 5/16/2016 to reflect the accurate sentences imposed.
Two Men Extradited from Mexico and Charged with Participation in Murder of ICE Special Agent Jaime Zapata and Attempted Murder of ICE Special Agent Victor AvilaRead the Press Release
Five Others Have Been Extradited in This Matter
Two Mexican nationals have been extradited from Mexico to face charges for their alleged participation in the murder of U.S. Immigration and Customs Enforcement (ICE) Special Agent Jaime Zapata and the attempted murder of ICE Special Agent Victor Avila on Feb. 15, 2011, in Mexico.
The charges and extraditions were announced today by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Channing D. Phillips of the District of Columbia, Assistant Director Stephen E. Richardson of the FBI Criminal Investigative Division and Director Sarah R. Saldaña of ICE.
Jesus Ivan Quezada Piña, aka Loco, 28, and Alfredo Gaston Mendoza Hernandez, aka Camaron, aka Burger, 33, both of San Luis Potosi, Mexico, were charged on May 16, 2013, in a four-count indictment with murder of an officer or employee of the United States; attempted murder of an officer or employee of the United States; attempted murder of an internationally protected person; and using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence causing death. The indictment was unsealed today when Quezada Piña and Mendoza Hernandez made their initial appearances before Senior U.S. District Judge Royce C. Lamberth of the District of Columbia. Quezada Piña and Mendoza Hernandez were ordered detained without bail.
Four defendants—Julian Zapata Espinoza, aka Piolin, 35; Ruben Dario Venegas Rivera, aka Catracho, 28; Jose Ismael Nava Villagran, aka Cacho, 33; and Francisco Carbajal Flores, aka Dalmata, 41—previously pleaded guilty to offenses based on their roles in the murder and attempted murder of the ICE agents. As part of their guilty pleas, Espinoza, Rivera and Villagran admitted that they participated directly in the Feb. 15, 2011, ambush of the two special agents as part of a Los Zetas hit squad. The fourth defendant, Flores, acknowledged assisting Zetas members after the attack. A fifth defendant, Jose Emanuel Garcia Sota, aka Juan Manuel Maldonado Amezcua, aka Safado, 35, was extradited to the United States on Oct. 1, 2015, for his participation in this attack and is currently awaiting trial.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The FBI is investigating the case with substantial assistance from ICE, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, U.S. Customs and Border Patrol, the U.S. Department of State’s Diplomatic Security Service and the U.S. Marshals Service. The investigation was also coordinated with the assistance of the Government of Mexico.
The Criminal Division’s Organized Crime and Gang Section and Narcotic and Dangerous Drug Section and the U.S. Attorney’s Office of the District of Columbia are prosecuting the case. The Criminal Division’s Office of International Affairs provided substantial assistance.
Two Men Extradited from Mexico and Charged with Participation in Murder of ICE Special Agent Jaime Zapata and Attempted Murder of ICE Special Agent Victor AvilaRead the Press Release
WASHINGTON – Two Mexican nationals have been extradited from Mexico to face charges for their alleged participation in the murder of U.S. Immigration and Customs Enforcement (ICE) Special Agent Jaime Zapata and the attempted murder of ICE Special Agent Victor Avila on Feb. 15, 2011, in Mexico.
The charges and extraditions were announced today by U.S. Attorney Channing D. Phillips, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director Stephen E. Richardson of the FBI Criminal Investigative Division, and Director Sarah R. Saldaña of ICE.
Jesus Ivan Quezada Piña, aka Loco, 28, and Alfredo Gaston Mendoza Hernandez, aka Camaron, aka Burger, 33, both of San Luis Potosi, Mexico, were charged on May 16, 2013, in a four-count indictment with one count of murder of an officer or employee of the United States; one count of attempted murder of an officer or employee of the United States; one count of attempted murder of an internationally protected person; and one count of using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence causing death. The indictment was unsealed today when Quezada Piña and Mendoza Hernandez made their initial appearance before Senior U.S. District Judge Royce C. Lamberth of the District of Columbia. Quezada Piña and Mendoza Hernandez were ordered detained without bail pending further court proceedings.
“These extraditions reflect the continued determination of law enforcement to prosecute all who took part in the ambush of two federal agents,” said U.S. Attorney Phillips. “Together with our law enforcement partners in the United States and in Mexico, we are committed to holding those responsible for the murder of Agent Zapata and the wounding of Agent Avila accountable for this brazen attack.”
“With the extradition of these two individuals from Mexico, a total of seven people have been charged for their role in the murder of ICE Special Agent Zapata and attempted murder of Special Agent Victor Avila," said Assistant Director Richardson. "An attack against any federal agent serving his or her country remains a priority for the FBI until all responsible individuals are brought to justice."
“Today is another step toward justice,” said ICE Director Saldaña. “The brutal attack on Special Agents Zapata and Avila and the murder of Agent Zapata will not go unanswered. The ICE family is deeply grateful to the Government of Mexico, the Department of Justice, and all of our other partners engaged in the relentless pursuit of the perpetrators of this heartless attack.”
Four defendants previously pleaded guilty to offenses based on their roles in the murder and attempted murder of the ICE agents. Julian Zapata Espinoza, aka Piolin, 35, pleaded guilty on May 23, 2013, to the murder of Special Agent Zapata and the attempted murder of Special Agent Avila. Ruben Dario Venegas Rivera, aka Catracho, 28, pleaded guilty on Aug. 1, 2011, to federal charges concerning the murder of Special Agent Zapata and attempted murder of Special Agent Avila. Jose Ismael Nava Villagran, aka Cacho, 33, pleaded guilty on Jan. 4, 2012, also to federal charges concerning the murder and attempted murder of the ICE agents. Francisco Carbajal Flores, aka Dalmata, 41, pleaded guilty on Jan. 10, 2012, to conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and to being an accessory after the fact to the murder and attempted murder of the ICE agents.
As part of their guilty pleas, Espinoza, Rivera and Villagran admitted to being members of a Los Zetas hit squad and to participating directly in the Feb. 15, 2011, ambush of the two special agents. The fourth defendant, Flores, acknowledged assisting Zetas members after the attack. A fifth defendant, Jose Emanuel Garcia Sota, aka Juan Manuel Maldonado Amezcua, aka Safado, 35, was extradited to the United States on Oct. 1, 2015, for his participation in this attack and is currently awaiting trial.
An indictment is a formal charging document and defendants are presumed innocent until proven guilty.
The case is being investigated by the FBI, with substantial assistance from ICE, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the U.S. Customs and Border Protection, the U.S. Department of State’s Diplomatic Security Service and the U.S. Marshals Service. The investigation was also coordinated with the assistance of the Government of Mexico. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and Narcotic and Dangerous Drug Section and the U.S. Attorney’s Office for the District of Columbia. The Criminal Division’s Office of International Affairs has provided substantial assistance.
Two Men Arrested, Charged in Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Clarence Adams, 34, of Buffalo, NY, and Michael Knight, 27, of California, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine. The charges carry a mandatory minimum 10 years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, on May 13, 2016, law enforcement officers seized three packages containing suspected cocaine that were shipped from Texas to Buffalo. The cocaine was hidden inside air purifiers. Officers seized two of the packages before they were delivered and set up controlled deliveries to addresses on Tyler and Custer Streets in Buffalo.
Before the controlled deliveries occurred, officers observed the defendants in a car parked near Main and Custer Streets. Adams was observed using multiple cellular telephones. Adams was also observed entering 36 Custer Street, leaving shortly after, and departing in the Black Mazda 6 he had been driving.
Around that time, the first package was delivered to a residence at 49 Tyler Street where the resident of that address accepted and signed for the package. The defendants arrived at 49 Tyler Street shortly after in the black Mazda 6. The recipient of the package exited her residence with the package, walked over to the black Mazda 6 and placed the package in the trunk. At that time, law enforcement officers arrested Adams and Knight.
The second package was delivered to the residence at 36 Custer Street. Ultimately, search warrants were executed and the package that had been delivered was found in the upstairs apartment. A third package was found in the downstairs apartment. Like the other packages, it also contained cocaine hidden in an air purifier.
According to the complaint, the three packages contained a total of five kilograms of cocaine and the recipients indicated they had been paid in crack cocaine to receive the packages.
During a subsequent search of a Mount Vernon Street residence where the defendants were staying, officers recovered a drug ledger that calculated the amount necessary to purchase 5 kilograms of cocaine from Adams’s bedroom. Also recovered were a digital scale and other drug preparation materials.
The defendants made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and are being held pending a detention hearing on May 19, 2016.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast, and the Cheektowaga Police Department, under the direction of Chief David Zack.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Two Former L.A. Sheriff’s Deputies Found Guilty of Violating Civil Rights of Jail Inmate who was Beaten as PunishmentRead the Press Release
LOS ANGELES – Two former deputies with the Los Angeles Sheriff’s Department were found guilty today of violating the civil rights of a mentally ill jail inmate by beating, kicking and pepper spraying the victim after he showed disrespect to a jail employee.
Bryan Brunsting, 31, and Jason Branum (also known as Jason Johnson), 35, were each found guilty of three felony counts related to the unprovoked attack on March 22, 2010.
The evidence presented during a one-week trial in United States District Court showed that Brunsting and Branum assaulted the victim, who was an inmate at the Twin Towers Correctional Facility in downtown Los Angeles. The assault occurred after the inmate mouthed-off to a civilian Sheriff’s Department employee. Brunsting, who was a training officer assigned to a rookie deputy who had just started working at the jail, told his trainee that they were going to “teach [the inmate] him a lesson.”
Brunsting, Branum and the rookie deputy brought the victim out of the visiting area and directed him to a locked hallway without any surveillance cameras. Once in the hallway, the inmate realized he was going to be assaulted and began to run. The victim was tackled. Brunsting and Branum then beat the victim with fists, kicked him in the genitals and sprayed him in the eyes with pepper spray. Once other deputies arrived, they instructed the rookie deputy to handcuff the victim before he was led away for medical treatment.
After the beating, Brunsting, Branum and the rookie deputy met to coordinate and falsify their stories. The rookie deputy testified that he was told what to say and how to write his report. As prosecutors argued at trial, the reports submitted by Brunsting and the rookie were strikingly similar, and were written to justify the use of force by falsely claiming that the victim had attempted to punch the rookie.
“The civil rights in the Constitution are guaranteed to everyone in the United States, even those who are being held in jail,” said United States Attorney Eileen M. Decker. “A violation of any civil right is a crime against the United States and affects the nation’s entire citizenry, which is why we will tirelessly work to prosecute civil rights violations, especially when they are committed by people who have sworn to uphold the Constitution.”
After approximately one hour of deliberations, the jury convicted Brunsting and Branum of conspiracy to violate civil rights, deprivation of civil rights with bodily injury, and falsification of records for preparing reports that tried to justify their use of force against the victim.United States District Judge George W. Wu is scheduled to sentence the two defendants on August 22, at which time they each will face a statutory maximum penalty of 40 years in federal prison.
Brunsting still faces civil rights charges in relation to another alleged use-of-force incident on August 20, 2009 at Twin Towers, and he is scheduled to go on trial later this year. It is important to note that Brunsting is only charged in relation to the 2009 incident and is considered to be innocent of these charges until he is proven guilty in court.
The case against Brunsting and Branum is the result of an investigation by the FBI, and is one in a series of cases resulting from an investigation into corruption and civil rights abuses at county jail facilities in downtown Los Angeles. As a result of today’s guilty verdicts, 21 current or former members of the Los Angeles Sheriff’s Department have now been convicted of federal charges.
Two Columbia Men, Arizona Man Sentenced for Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three men were sentenced in federal court today for their roles in a conspiracy to distribute methamphetamine after law enforcement officers seized several pounds of methamphetamine from a Columbia, Mo., hotel room.
Todd Michael Zazilenski, 40, of Phoenix, Ariz., was sentenced by U.S. District Judge Stephen R. Bough to 10 years in federal prison without parole. Ryan Roger Ellingboe, 41, of Columbia, was sentenced to six years and eight months in federal prison without parole. Shane Alan Callahan, 30, of Columbia, was sentenced to five years in federal prison without parole.
Zazilenski, Ellingboe and Callahan each pleaded guilty to participating in a conspiracy to distribute methamphetamine in Boone County and elsewhere from April 2015 to May 14, 2015.
A deputy with the St. Charles County, Mo., Sheriff’s Department stopped a Cadillac Escalade driven by Ellingboe for a traffic violation on May 14, 2015. Callahan was a passenger in the vehicle. The deputy smelled burnt marijuana upon approaching the vehicle and conducted a search of the vehicle. The deputy found a vacuum-sealed bag that contained approximately one pound of methamphetamine behind the glove box.
Ellingboe and Callahan told law enforcement officers they had traveled from Columbia that morning to meet a customer in St. Charles, Mo., who wanted to purchase the methamphetamine. Callahan stated that he was brokering the methamphetamine transaction between Ellingboe and another individual. Ellingboe had access to a pound of methamphetamine and had asked Callahan if he knew of a customer. Callahan located a customer in St. Charles who wanted to purchase one pound of methamphetamine.
When Ellingboe picked up Callahan in Columbia that morning, he was already in possession of the one pound of methamphetamine. Ellingboe and Callahan then began driving to St. Charles to complete the transaction.
Zazilenski admitted that he provided the methamphetamine to Ellingboe to sell in St. Charles. Ellingboe was supposed to pay Zazilenski $8,000 for the methamphetamine. Law enforcement officers searched Zazilenski’s room at the Howard Johnson Inn in Columbia and found three bags, each containing approximately one pound of methamphetamine, for a total weight of 1.369 kilograms.
Zazilenski also admitted that he provided an additional 1.5 pounds of methamphetamine to Ellingboe during a visit to Columbia on April 17-19, 2015.
This case was prosecuted by Assistant U.S. Attorney Larry Miller. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the St. Charles, Mo., Police Department and the St. Charles County, Mo., Sheriff’s Department.
Two Additional Members of Drug Conspiracy Plead GuiltyRead the Press Release
ABINGDON, VIRGINIA – Two more members of a drug conspiracy that trafficked methamphetamine into Southwest Virginia pled guilty today in the United States District Court for the Western District of Virginia, United States Attorney John P. Fishwick Jr. announced.
Ralph Marlow, 59, of La Follatte, Tennessee, pled guilty today in District Court to one count of conspiracy to possess with the intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime and using and carrying a firearm during and in relation to a drug trafficking crime.
Lloyd Steven Knuckles, 42, of Middlesborough, Kentucky, pled guilty today to one count of conspiracy to possess with the intent to distribute methamphetamine.
“These defendants, and others involved in this conspiracy, were involved in the trafficking of crystal methamphetamine, a very addictive and dangerous form of an already dangerous substance,” United States Attorney John P. Fishwick Jr. said today. “The success of this investigation can be credited to the cooperative work displayed by authorities on the local, state and federal level.”
The investigation of the case was conducted by the Bell County, Kentucky Sheriff’s Office, the Middlesborough, Kentucky Police Department, the Lee County Virginia Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives Bristol and Atlanta Field Divisions. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Trenton Man Sentenced to 37 Months in Prison for Possession of More Than 100 Grams of Heroin with Intent to DistributeRead the Press Release
TRENTON, N.J. – A Trenton man who was found in possession of 143 grams of heroin and a loaded firearm was sentenced today to 37 months in prison for narcotics possession, U.S. Attorney Paul J. Fishman announced.
Dorian Brown, 37, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with possession with intent to distribute heroin. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On June 4, 2014, Brown, who had been the target of an investigation led by detectives from the Mercer County Prosecutor’s Office, Special Investigations Unit, and officers from the Trenton Police Department, in cooperation with the U.S. Drug Enforcement Administration (DEA), was apprehended during the execution of search warrants on his car, as well as his Trenton home. Law enforcement seized approximately 130 grams of heroin from Brown’s home, where detectives also discovered a loaded semi-automatic handgun. An additional 13 grams of heroin was seized from Brown’s car.
In addition to the prison term, Judge Wolfson sentenced Brown to three years of supervised release.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, and detectives of the Mercer County Prosecutor’s Office, Special Investigations Unit, under the direction of Acting Prosecutor Angelo J. Onofri, with the investigation leading to today’s sentencing. He also thanked officers of the Trenton Police Department under the direction of Police Director Ernest Parrey for their assistance.
The government is represented by Assistant U.S. Attorney Molly Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, TrentonTexas man sentenced for using stolen identities to collect fraudulent tax refunds in excess of $500,000Read the Press Release
MARTINSBURG, WEST VIRGINIA – Oluwabunmi Idris Odu-Onikosi, 29, of Dallas, Texas, was sentenced today to 18 months in prison for using stolen identities to obtain fraudulent federal income tax refunds, United States Attorney William J. Ihlenfeld, II, announced.
Odu-Onikosi repeatedly and fraudulently obtained personal identifying information from a variety of individuals, including names, dates of birth, and Social Security numbers. He utilized that information to create and prepare fraudulent income tax returns and false earnings statements containing fictitious wage, withholding, gambling winnings, and other fabricated information.
Odu-Onikosi filed more than 400 false federal individual income tax returns with the Internal Revenue Service. These returns fraudulently claimed tax refunds in excess of $3,000,000. Odu-Onikosi received fraudulent tax refund payments in excess of $500,000 in the form of United States Treasury Checks and direct deposits to bank accounts and prepaid debit cards maintained and controlled by Odu-Onikosi.
“Today’s legal proceedings bring Mr. Oluwabunmi Odu-Onikosi to justice,” noted Thomas M. Jankowski, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Washington, D.C. Field Office. “Mr. Odu-Onikosi violated the privacy of people, used this to cheat our tax system and pocket ill-gotten gains. This ID theft prosecution of Mr. Odu-Onikosi in West Virginia marks a milestone in the prosecution as the fraudulent tax returns he filed electronically were received by the IRS Enterprise Computing Center located in Martinsburg. This is a very serious crime throughout our nation; those committing crimes such as this should take notice that you will receive a harsh sentence when you are convicted of this crime in the Northern District of West Virginia. My office will continue to work with the United States Attorney’s Office to see that these offenses are investigated and prosecuted to assure compliance with our nation’s tax laws.”
Odu-Onikosi pled guilty in January 2016 to one count of “Wire Fraud.” As part of the sentenced imposed today, he was also ordered to pay restitution in the amount of $539,899.
Assistant U.S. Attorney Andrew Cogar prosecuted the case on behalf of the government. The Internal Revenue Service – Criminal Investigation led the inquiry with assistance from the New Orleans, Louisiana Police Department and the United States Secret Service.
Chief U.S. District Judge Gina M. Groh presided.
Syracuse Man Indicted for Two Bank RobberiesRead the Press Release
SYRACUSE, NEW YORK – James Chisholm, 26, of Syracuse, New York was indicted on two counts of bank robbery, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
The indictment alleges that on March 12, 2016 and again on March 16, 2016, Chisholm robbed the Chase Bank branch office at 801 James Street in Syracuse, stealing a total of over $3,000 in the two robberies. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Each charge against Chisholm carries a maximum sentence of 20 years in prison, a fine of up to $250,000 and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Chisholm was arrested on March 16, 2016 and is being held without bail pending trial.
This case is being investigated by the Syracuse Resident Agency of the Albany Division of the Federal Bureau of Investigation and the Syracuse Police Department and is being prosecuted by Assistant U.S. Attorney Robert S. Levine.
Store Owner Sentenced to Federal Prison for Food Stamp FraudRead the Press Release
ATLANTA - Sholondrell Denise Taylor has been sentenced to federal prison for the theft of $1.9 million in a food stamp fraud scheme. Her Atlanta stores allowed customers to exchange their food stamps for cash, and purchased Women, Infants, and Children (WIC) vouchers at less than face value, eventually redeeming them with the United States Department of Agriculture (USDA) at full price.
“Taylor cost taxpayers hundreds of thousands of dollars and diverted scarce resources intended to assist those most in need,” said U.S. Attorney John Horn. “Store owners who provide an outlet for people to commit fraud, while taking profits for themselves, should expect to be caught and prosecuted.”
“The prosecution of this individual should send a strong message to those individuals who defraud governmental programs that the USDA-OIG will continue to aggressively investigate individuals and businesses that take advantage of our SNAP and WIC programs. Sholondrell Taylor used her businesses for fraudulent purposes and profited immensely in doing so. The victims of these types of crimes are the children that were deprived of the food benefits that they were entitled to. We would like to thank the U.S. Attorney’s Office, the Georgia Department of Public Health and the Georgia Department of Human Services, Office of Inspector General, for assisting us with this investigation” says Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG.
According to U.S. Attorney Horn, the charges and other information presented in court: From January 2008 through March 2011, Taylor operated Dandes Food Center, LLC, in Forest Park, Georgia, and Shop Rite Food Mart, LLC, located in Atlanta, Georgia, where she unlawfully allowed customers to exchange their food stamp benefits for cash at the rate of 50 cents on the dollar. Taylor also purchased WIC vouchers from benefit recipients at less than their actual value and redeemed the vouchers for full value with the USDA.
Taylor set the rates of redemption, and instructed her employees to keep detailed ledgers of all transactions to ensure that they were not stealing from her. She trained her employees how to determine the available balances on food stamp cards; and required employees to obtain WIC voucher codes and usable voucher dates before purchasing the vouchers. Many of the customers who sold their WIC vouchers and food stamp benefits never visited Dandes or Shop Rite. Taylor employed a driver who travelled throughout metropolitan Atlanta to retrieve WIC vouchers and food stamp cards and dispense illegal payments.
This case came to the attention of federal authorities as a result of an investigation involving Georgia Department of Human Services employees. In 2011, Gene Tell and Kristy Williams were charged with conspiracy and mail fraud for their roles in the fraudulent creation and distribution of thousands of food stamp cards. Many of the fraudulent cards were illegally redeemed at Dandes Food Center operated by Taylor.
Sholondrell Denise Taylor, 47, of Ellenwood, Georgia, has been sentenced to four years, six months in prison to be followed by three years of supervised release, ordered to pay restitution in the amount of $1.9 million, and a $100 Special Assessment. Taylor was convicted on these charges on February 29, 2016, after she pleaded guilty.
This case was investigated by the U.S. Department of Agriculture, Office of Inspector General.
Assistant United States Attorney Loranzo M. Fleming prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Son of the Former President of Honduras Pleads Guilty in Manhattan Federal Court to Conspiring to Import Cocaine into the United StatesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that FABIO PORFIRIO LOBO pled guilty in Manhattan federal court to a charge that he conspired to import cocaine into the United States. LOBO, who was arrested in the Republic of Haiti on May 20, 2015, and arrived in the United States on May 21, 2015, pled guilty before U.S. District Judge Lorna G. Schofield. LOBO’s father, Porfirio Lobo, served as president of Honduras between 2010 and 2014.
Manhattan U.S. Attorney Preet Bharara said: “Fabio Lobo has now admitted in court that he conspired to import thousands of kilograms of cocaine into the United States. Whether you are a street-level dealer, a member of a cartel, or the son of a former foreign president, drug dealing is drug dealing. It is a serious federal crime for which you will be prosecuted.”
According to the Indictment, other court filings, and statements made during court proceedings:
In 2014, LOBO agreed to assist two purported Mexican drug traffickers, who were in fact confidential sources (the “CSes”) acting at the direction of the Drug Enforcement Administration (“DEA”), with the transportation of a multi-ton load of cocaine through Honduras so that the narcotics could be imported into the United States. In exchange, LOBO was to receive a financial interest in a portion of the cocaine that was intended to be sold and distributed in the United States. In furtherance of the conspiracy, LOBO introduced the CSes to, among others, Honduran police officials who agreed to participate in the cocaine transaction by providing security and logistical support for the transportation of the cocaine through Honduras. During 2015, in consensually recorded calls and emails between LOBO and one of the CSes, LOBO agreed to travel to Haiti for the purpose of receiving payment from the proceeds of the cocaine transaction. LOBO subsequently traveled to Haiti in May 2015 and was arrested.
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LOBO, 44, pled guilty to one count of conspiring to (i) import five or more kilograms of cocaine into the United States from a foreign country; and (ii) distribute five or more kilograms of cocaine knowing and intending that it would be imported into the United States. The charge carries a maximum term of life in prison, and a mandatory minimum term of 10 years in prison. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
LOBO will be sentenced on September 15, 2016.
Mr. Bharara praised the outstanding efforts of the Special Operations Division of the DEA. Mr. Bharara also thanked the DEA’s Port-au-Prince Country Office, the Government of the Republic of Haiti and its Bureau de Lutte Contre le Trafic Illicite de Stupefiants, and the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Matthew J. Laroche, and Michael D. Lockard are in charge of the prosecution.
Securities Attorney Convicted of Market Manipulation SchemeRead the Press Release
BOSTON – A California-based securities attorney was convicted today by a federal jury in U.S. District Court in Boston in connection with his role in manipulating the stock of a series of publicly traded companies, including CitySide Tickets, Inc., a Boston-based ticket reseller.
Richard Weed, 53, of Newport Beach, Calif., was convicted following a 10 day trial of conspiracy, securities fraud and wire fraud. Senior U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Aug. 16, 2016.
Weed, along with at least two others, conspired to create the appearance that CitySide was a growing company when, in fact, it was in dire financial straits. Weed, who served as CitySide’s Secretary and as one of two members of CitySide’s Board, was responsible for drafting false and misleading legal opinion letters so that his co-conspirators could obtain free trading stock. Weed also helped his co-conspirators to conceal their control and ownership of CitySide by directing the stock to be distributed to different entities that they controlled. This allowed the conspirators to manipulate CitySide’s stock and sell their shares at artificially high prices. In addition to assisting with the manipulation itself, Weed was also responsible for responding to any inquiries from investors or securities regulators.
The conviction follows a multi-year investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies per share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the Securities and Exchange Commission.
The charges of securities and wire fraud each provide for a sentence of no greater than 20 years in prison and three years of supervised release. The maximum fine for securities fraud is $5 million and the maximum fine for wire fraud is $250,000, or twice the gross loss to the victim. The conspiracy charge provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000, or twice the gross loss to the victim. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The Securities and Exchange Commission, which conducted a parallel civil investigation, cooperated with criminal authorities in bringing this case.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sarah E. Walters, Chief of Ortiz’s Economic Crimes Unit and SEC Attorney Eric A. Forni, who was appointed as a Special Assistant U.S. Attorney.
Sally Kirby Pleads Guilty to Hunger Free Vermont EmbezzlementRead the Press Release
The United States Attorney for the District of Vermont announced that Sally Kirby, 61, of Essex, pleaded guilty today in United States District Court in Burlington to a federal forgery charge. U.S. District Judge William K. Sessions III released Kirby on conditions pending sentencing, which is set for September 26.
On April 25, 2016, the United States Attorney's Office filed a one-count information charging Kirby with forging checks of her employer, Hunger Free Vermont. Kirby pled guilty to that charge today. According to the information, Hunger Free Vermont is a non-profit educational and advocacy organization which provides nutrition education and access to nutrition programs to Vermont's children, families and communities. In 2004, Sally Kirby was hired as the Director of Finance for HFV. Her duties included handling payroll, accounts payable, financial statements and grant allocations.
According to the information, between June 2009 and September 2015, Kirby embezzled about $165,000 from the organization. She did that primarily by issuing HFV checks to herself without authorization, then forging the signature of HFV's executive director on the checks. She deposited many of the checks into a personal credit union account she maintained. Kirby attempted to conceal her embezzlement by altering some entries in HFV's accounting system to make it appear as though checks she issued to herself had been made payable to vendors. The embezzlement was discovered last October.
Kirby faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Federal Bureau of Investigation.
Kirby is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Plymouth Woman Pleads Guilty to Scamming Insurance Company for $2 Million Life Insurance PayoutRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of IRINA VOROTINOV, 49, to defrauding Mutual of Omaha Insurance Company of more than $2 million in life insurance proceeds by falsely claiming that her former husband died.
“The FBI and Criminal Investigation Division of the IRS determined that Igor Vorotinov’s death was faked,” said Assistant United States Attorney David J. Maclaughlin. “The hard work of the agents on this case illustrates the ability of the United States government to effectively investigate complex international crimes. Would-be fraudsters should be warned that it is very difficult to steal millions of dollars from United States insurance companies with impunity.”
According to the defendant’s guilty plea and documents filed in court, in March 2010, Igor Vorotinov purchased a life insurance policy on his own life from Mutual of Omaha, and listed IRINA VOROTINOV as the beneficiary. On October 1, 2011, police in Moldova received a phone call reporting a dead body at the entrance of the Cojusna village in central Moldova. Documents recovered from the body, including a passport, hotel cards, and contact phone numbers, identified the man as Igor Vorotinov.
According to the defendant’s guilty plea and documents filed in court, on November 7, 2011, IRINA VOROTINOV filed a death claim with Mutual of Omaha, despite the fact that she knew IGOR was not dead. Mutual of Omaha paid the claim to the defendant with a check for $2,048,414.09.
According to the defendant’s guilty plea and documents filed in court, IRINA VOROTINOV recruited a third party to open an account at a local branch of U.S. Bank and to deposit the insurance check into the account. She then caused the third party to transfer $1.5 million to another account at US Bank in the name of her son, Alkon Vorotinov. Ultimately, Between March 29, 2012 and January 2015, the defendant caused more than $1.5 million of the life insurance proceeds to be transferred to accounts located in Switzerland and Moldova.
The defendant pleaded guilty today before U.S. District Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minn.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.
Assistant U.S. Attorney David J. Maclaughlin is prosecuting the case.
Defendant Information:
IRINA VOROTINOV, 49
Plymouth, Minn.
Convicted:
- Mail Fraud, 1 count
- Engaging in a monetary transaction in criminally derived property, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Pennsylvania Man Pleads Guilty to Federal Drug ChargeRead the Press Release
ROANOKE, VIRGINIA – A Pennsylvania man pled guilty today in the United States District Court for the Western District of Virginia in Roanoke to Federal heroin charges, United States Attorney John P. Fishwick Jr. announced.
Orlando Sanchez, 29, of Reading, Pennsylvania, pled guilty today to one count of conspiracy to distribute 100 grams or more of heroin.
“All across the Commonwealth, we see the crisis of heroin abuse spreading at alarming rates,” United States Attorney John P. Fishwick Jr. said today. “We will continue to work to prosecute those who trafficking in this dangerous drug while also providing support for prevention and treatment programs for those addicted to this deadly substance.”
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Town of Vinton Police Department, the Roanoke City Police Department and the Roanoke County Police Department. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
North Carolina Man Pleads Guilty to Federal Drug ChargeRead the Press Release
ROANOKE, VIRGINIA – A North Carolina man pled guilty this morning in United States District Court for the Western District of Virginia in Roanoke to conspiring, with others, to distributing methamphetamine throughout the Western District of Virginia, United States Attorney John P. Fishwick Jr. announced.
Michael Allen Kerns, 23, of Clemmons, North Carolina, pled guilty today to one count of conspiracy to distribute 50 grams or more of methamphetamine.
“Law enforcement continues to effectively respond to the rising tide of methamphetamine abuse in the Western District of Virginia,” United States Attorney John P. Fishwick Jr. said today. “This is a dangerous drug that destroys lives and we are proud to work with our local, state and federal partners to rid it from our communities.”
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Wythe County Sheriff’s Office, the Smyth County Sheriff’s Office and the United States Marshals Service. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
New York Man Pleads Guilty to Distribution of Heroin Resulting in DeathRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dameon Lattimore, age 39, of New York, pleaded guilty today before U.S. District Court Judge John E. Jones, III in Harrisburg, to distributing heroin and crack cocaine that led to the death of a York City man.
According to United States Attorney Peter Smith, Lattimore was charged by a grand jury in Harrisburg in December 2015 with codefendants Yushonda Durant, age 40, of New York, and Frederick Gladfelter, age 46, of York.
Gladfelter pleaded not guilty in December 2015 and is awaiting trial. Durant remains a fugitive.
The investigation was conducted by the Drug Enforcement Administration, the York City Police Department and the York County District Attorney’s Office and is assigned to Assistant U.S. Attorney William A. Behe.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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 life imprisonment on the drug charges. The charge of causing death from drug distribution carries a mandatory minimum 20 year term of imprisonment. 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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New Carrollton Man Pleads Guilty to Stealing over $110,000 in Social Security BenefitsRead the Press Release
Baltimore, Maryland – Calelah John Lattisaw, age 58, of New Carrollton, Maryland, pleaded guilty today to wire fraud arising from a scheme to steal $110,107 in social security benefits.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division; and John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
According to his guilty plea, in February 1993, Lattisaw began receiving Supplemental Security Income through the Social Security Administration (SSA) for a disability. In order to receive benefits, Lattisaw was required to report to SSA information regarding his income, resources and living arrangements. Lattisaw admitted that at the time of his application, he concealed from SSA that he was living with two other individuals, both of whom were also receiving SSA benefits.
In addition, Lattisaw took steps to hide additional income and assets from SSA. Specifically, in 1997, Lattisaw was living with his sister-in-law, S.L., who died on November 23, 1997. At the time of her death S.L. was receiving Social Security Survivor Benefits, as well as a D.C. pension, administered by the U.S. Treasury. Both benefits were paid by direct deposit to her bank account. Prior to her death, Lattisaw was added as a co-signor to S.L.’s bank account under the name John. H. Lattisaw, using the social security number of another individual, B.K. Neither SSA, nor the U.S. Treasury were advised of S.L’s death. Although Lattisaw knew that he had no legal entitlement to S.L.’s beneifts, he withdrew virtually all of the SSA and pension benefits from S.L.’s account via ATM withdrawals and debit purchases. Lattisaw did not advise SSA of this additional income and because he had used an alias and the SSN of another person on the bank account, any check run by SSA to locate additional income would have been unsuccessful.
In 2003, while Lattisaw was receiving S.L.’s benefits and his own SSI benefits, Lattisaw married an elderly woman, M.B. Shortly after marrying M.B., Lattisaw attempted to sell her home, but her family blocked the sale and had the marriage annulled. In 2006, Lattisaw moved M.B. out of her nursing facility and in to the home he shared with his girlfriend. Lattisaw remarried M.B. and became power of attorney over one of her bank accounts and the co-signor on another bank account, again using his alias, John H. Lattisaw, and B.K.’s SSN. M.B. died on June 11, 2006 at Lattisaw’s home. Five days later, Lattisaw liquidated a certificate of deposit at one of M.B’s accounts and withdrew $161,000. Lattisaw subsequently deposited those funds into a new account opened in the name of his alias, using B.K.’s SSN. Lattisaw did not report the change in his living conditions, nor this additional income to SSA.
Had SSA been aware of Lattisaw’s income, resources, or living arrangements, he would not have qualified for SSI benefits. Between 2000 and 2015, Lattisaw received $110,107 in SSI benefits to which he was not entitled.
Lattisaw and the government have agreed that if the Court accepts the plea agreement Lattisaw will be sentenced to three years in prison followed by three years of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for August 24, 2016 at 2:30 p.m.
United States Attorney Rod J. Rosenstein commended the Social Security Administration - Office of Inspector General and U.S. Department of the Treasury - Office of Inspector General for their work in the investigation and thanked Special Assistant U.S. Attorney Lauren E. Perry and Assistant U.S. Attorney Tamera L. Fine, who are prosecuting the case.
Missouri man sentenced for selling LSDRead the Press Release
WHEELING, WEST VIRGINIA – Casey Tyler Nagy, 29, originally of Missouri, was sentenced today to 46 months in prison for drug trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Nagy distributed lysergic acid diethylamide (LSD) in June 2015 in Wetzel County, West Virginia. Nagy pled guilty in March 2016 to one count of “Distribution of LSD.”
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Martinsville Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Minneapolis Man Sentenced in Human Trafficking of a ChildRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on April 18, 2016, Anthony Lamarr Sims, 21, a.k.a. Mar Mar, Minneapolis, Minn., was sentenced before U. S. District Judge Ralph R. Erickson to serve 14 years in prison for one count of Sex Trafficking of Children. Judge Erickson also sentenced Sims to serve 10 years of supervised release and to pay a $100 special assessment to the Crime Victims’ Fund.
"For predators convicted of the horrendous crime of sex trafficking minors, there are severe consequences in the form of a lengthy prison sentence, as Mr. Sims has learned firsthand," said Special Agent in Charge Alex Khu of HSI in St. Paul. "This case is a result of the excellent relationship between HSI special agents and local police officers who continuously work together to root out this type of violent activity to keep communities safe"
This case came to the attention of law enforcement after a Fargo Police Officer encountered the 15-year-old victim during a traffic stop on January 16, 2015. At the time of the traffic stop the victim provided a false name to law enforcement. The victim was then transferred to the Cass County jail, after which law enforcement discovered she was a runaway from a St. Paul, Minnesota. A subsequent investigation revealed that Sims brought the victim from Minneapolis to Fargo for the purpose of prostitution. Before he traveled to Fargo on January 15, 2015, Sims directed another individual to post an advertisement on backpage.com wherein it was advertised that there were women available for commercial sex.
This case was investigated by the Fargo Police Department and the Department of Homeland Security - Homeland Security Investigations.
Assistant U. S. Attorney Jennifer Puhl prosecuted the case.
This case was prosecuted with the assistance of the North Dakota Human Trafficking Task Force (NDHTTF), which includes regional response teams that consist of federal, state, and local law enforcement and victim service providers working together to identify and rescue human trafficking victims as well as investigate and prosecute human trafficking cases. Led by the U.S. Attorney’s Office, BCI, and the North Dakota Counsel on Abused Women Services (CAWS), the NDHTTF is dedicated to addressing the individualized needs of human trafficking victims and the apprehension, investigation, and prosecution of the perpetrators of human trafficking.
Methodist University Hospital Agrees to Settle Allegations that it Violated the Americans with Disabilitiees ActRead the Press Release
Memphis, TN –Methodist University Hospital, in order to resolve allegations that it violated the Americans with Disabilities Act, has agreed to improve its procedures regarding effective communication to people who are deaf or have hearing disabilities. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the settlement today.
"Protecting citizens by ensuring full compliance with the Americans with Disabilities Act remains a priority for the U.S. Attorney’s Office," said U.S. Attorney Stanton. "We appreciate the cooperation of Methodist Healthcare in quickly resolving this matter and recognizing the importance of communicating effectively with its hearing impaired patients."
The Americans with Disabilities Act requires businesses serving the public to provide the means for effective communication with hearing impaired persons. Depending on the length and complexity of the communication, providing the means for effective communication can range from exchanging written notes to using a sign language interpreter.
The United States’ investigation revealed that a hearing impaired person presented herself to the emergency room (ER) and initially wrote notes to explain why she was there. However, emergency room personnel did not follow through by initiating a request for an interpreter and actually thought the patient had left the ER when she did not respond to her name being called. Even after this mistake was discovered, an interpreter never arrived at the hospital to assist the patient. In all, the patient spent nine hours in the Methodist University ER.
Under the Settlement Agreement with Methodist Healthcare, the hospital will improve its procedures for identifying and tracking the needs of hearing impaired patients and its procedures for using interpreters. Methodist will also pay damages to the person who filed the complaint in the amount of $8,000.
Assistant U.S. Attorney Gary A. Vanasek investigated the complaint and negotiated the Settlement Agreement.