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29 June 2016
Former Navy Serviceman Pleads Guilty to Enticing Minors to Engage in Sexual Activity over the InternetRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ADAM M. SIMPSON, 29, a former member of the U.S. Navy who was stationed in New London, pleaded guilty today in Hartford federal court to one count of enticing minors to perform sexually explicit acts during online video chats.
According to court documents and statements made in court, between approximately January 2013 and November 2013, SIMPSON used internet-based video chatting services such as Skype, Omegle, and ooVoo, to entice girls between the ages of 12 and 16 to perform sexual acts and engage in sexually explicit conduct, which SIMPSON then recorded and saved on his computer. In order to deceive the minors, SIMPSON misrepresented his age and utilized videos of young boys to impersonate being a young boy himself.
SIMPSON is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 21, 2016, at which time he faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
SIMPSON has been detained since his arrest on related state charges on January 7, 2014.
This matter is being investigated by the Connecticut State Police Computer Crimes Unit, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The U.S. Naval Criminal Investigative Service also provided critical assistance in this investigation. The case is being prosecuted by Assistant U.S. Attorneys Neeraj Patel and Nancy Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Former Houston Police Officer Sentenced to over 30 Years in Prison on Federal Drug and Firearm ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NOE JUAREZ, a resident of Houston, was sentenced today by U.S. District Chief Judge Sarah S. Vance to serve 365 months in prison for his role in a large-scale drug conspiracy.
On January 15, 2015, JUAREZ was convicted by a federal jury for conspiracy to possess and distribute 5 kilograms or more of cocaine and a separate conspiracy to possess firearms in furtherance of a drug trafficking offense. JUAREZ, as a co-conspirator, assisted an organization responsible for distributing hundreds of kilograms of cocaine throughout the United States, to include Jackson, Mississippi; Pensacola, Florida; New York City, New York; Detroit, Michigan; Baltimore, Maryland, Dover, Delaware; and Houma, Louisiana.
According to evidence presented at trial, JUAREZ, a veteran Houston police officer, became involved with an international drug conspiracy that reached into the Eastern District of Louisiana. The conspiracy, spearheaded by co-conspirators and brothers EFRAIN and SERGIO GRIMALDO, distributed thousands of kilograms of cocaine throughout the United States. The drugs were supplied to the conspiracy by the Los Zetas drug cartel in Mexico. JUAREZ played a pivotal role by providing law enforcement sensitive information, including running license plates and sharing police tactics and activities with conspirators. JUAREZ further supplied vehicles, body armor, and semi-automatic handguns and assault rifles to the conspirators, some of which ended up among senior cartel leaders in Mexico.
“This prosecution is the result of significant collaboration by local, state, and federal agencies across Louisiana and Texas,” stated U.S. Attorney Polite. “Their collective work ensures that a crooked cop will now spend over 30 years in prison for pouring more illegal guns and drugs onto our streets.”
“The cartel’s efforts to infiltrate law enforcement are not limited to Mexico. They want to do it here as well, and we can't let them,” said DEA Special Agent in Charge Stephen G. Azzam. “We must and will remain diligent in finding and prosecuting anyone who supports, funds, or aids the cartels. Noe Juarez’ conduct unfairly tarnishes the proud reputation of law enforcement officers in this country who put their lives on the line every day to protect our residents and their communities. By doing so, he not only violated his duties as a police officer, but also endangered fellow law enforcement officers and the public trust/faith through his actions.”
U.S. Attorney Polite praised the work of the Drug Enforcement Administration (“DEA”) Offices in New Orleans and Houston, the Federal Bureau of Investigation (“FBI”) in Houston, and the Houston Police Department Internal Affairs Division in investigating this matter. Additionally, U.S. Attorney Polite thanked the U.S. Attorney’s Office for the Southern District of Texas for their assistance. Agents who assisted in the prosecution team included case agents William Johnson, DEA, and Jose Garcia, FBI, with assistance from agents and officers from DEA, Homeland Security Investigations (“HSI”), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and the Houston Police Department Internal Affairs Proactive Unit. Assistant United States Attorneys John F. Murphy, Theodore Carter, and James Baehr were in charge of the prosecution.
Former Detroit Public Schools Director of Grant Development Pleads Guilty to FraudRead the Press Release
The former Detroit Public Schools Director of Grant Development pleaded guilty today to federal program fraud, announced U.S. Attorney Barbara L. McQuade.
Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Pleading guilty today before United States District Judge Stephen J. Murphy was Carolyn StarkeyDarden, 69, of Detroit.
According to court records between 2005 and 2012, Carolyn StarkeyDarden, as president and/or agent of companies she established to provide supplemental educational services to eligible students in Michigan, obtained at least $1,275,000 from DPS through a scheme in which she submitted fraudulent invoices for payment to DPS for tutorial services that were never rendered to DPS students.
United States Attorney Barbara L. McQuade said, “We know that most school officials and teachers are honest, but we hope to deter fraud by holding accountable those who steal funds from our school children. It makes a difference when those who are tempted by greed know that someone is watching and there is a price to be paid.”
“Today’s guilty plea represents another step towards holding Ms. Starkey-Darden responsible for cheating Detroit Public Schools students out of valuable resources by fraudulently billing for her company’s services,” said David P. Gelios, Special Agent in Charge, FBI Detroit Division. “The message should be clear: Public funds allocated to educate our children must be utilized as intended. To those that would do otherwise, you will be held to account.”
StarkeyDarden faces up to 10 years in prison and fines of up to $250,000 on the charge of Federal Program Theft. Sentencing has been set for October 28, 2016 at 10 am..
This case was investigated by agents of the FBI. This case is being prosecuted by Assistant United States Attorney Dawn N. Ison.
The FBI Detroit Area Corruption Task Force (DACTF) is led by the FBI Detroit Field Office, and consists of Special Agents and law enforcement officers with the FBI Detroit; the Detroit Police Department; the Michigan State Police; the Michigan Attorney General’s Office; the Internal Revenue Service – Criminal Investigation Division; the U.S. Department of Housing and Urban Development–Office of Inspector General; the U.S. Environmental Protection Agency–Office of Inspector General; the U.S. Department of Transportation–Office of Inspector General; the U.S. Department of Homeland Security–Office of Inspector General; the U.S. Department of Education–Office of Inspector General; and the U.S. Department of Labor–Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Former Beverly Man Sentenced for Role in Bogus Loan SchemeRead the Press Release
BOSTON – A Florida man, formerly of Beverly, Mass., was sentenced today in connection with an fraud scheme involving 75 victims throughout the United States, including many in Massachusetts.
Robert E. O’Connor, 68, was sentenced by U.S. District Judge Richard G. Stearns to 29 months in prison, three years of supervised release and was ordered to pay restitution of $627,581. In June 2015, O’Connor pleaded guilty to 13 counts of mail fraud and 15 counts of wire fraud, all in connection with a fraudulent advance fee scheme in which individuals were induced to pay up-front fees to his co-defendant, Ann Ursiny, and her business Trace Financial Group, Inc., based on representations that those individuals would receive real estate loans, when in fact Ursiny never intended to make any such loans. O’Connor participated in the scheme by recruiting people to apply for loans and pay the advance fees. O’Connor received a “commission” of $1,000 for each person who paid the advance fees.
O’Connor, who was a self-employed mortgage broker before becoming involved with Ursiny in early 2010, personally solicited approximately 35 people to apply for Ursiny’s nonexistent loans, and also referred a Texas loan broker to Ursiny, which resulted in another 40 people being defrauded. In total, O’Connor was responsible for about $627,000 in losses out of a total of about $933,000 resulting from Ursiny’s scheme. Although O’Connor was unaware at the beginning that Ursiny was operating a scam, after several months when none of his clients received the promised funding, O’Connor began lying both to prospective applicants to get their fees and to existing clients to quiet their complaints. O’Connor told them that some of his clients had in fact received loans from Ursiny or Trace, which he knew was untrue. He also sent a fabricated letter to clients that purported to be from a satisfied customer claiming to have received financing from Trace, knowing the letter was a fake and that none of his clients ever received any funding from Ursiny/Trace. In fact, victims’ funds were used for Ursiny’s personal and family expenses, and to pay “commissions” to agents.
In May 2016, Ursiny was sentenced 50 months in prison, to be served consecutive to the 71 month federal prison sentence imposed for a separate fraud scheme she orchestrated in Colorado.
United States Attorney Carmen M. Ortiz; 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 Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Felon in Possession of Pistol Sentenced to 4 Years in PrisonRead the Press Release
EUGENE, Ore. – Steven Lee Simmons, 37, a resident of Harney County, Oregon, was sentenced on Monday, June 27, 2016, to four years in prison by U.S. District Judge Michael J. McShane, for being a felon in possession of a firearm, specifically a .22 caliber pistol. Simmons pled guilty on March 28, 2016.
On July 13, 2015, employees working at a bar in Burns, Oregon called 911 when Simmons arrived at the bar with a loaded pistol tucked in his waistband and repeatedly announced his threat to kill a man who had assaulted his girlfriend. Before Harney County deputies arrived, Simmons left the bar with his stepmother and with the pistol still in his possession. The stepmother took the pistol from Simmons and he was arrested shortly thereafter. Deputies later retrieved the pistol along with 500 rounds of ammunition.
At the time of his arrest, Simmons had 23 prior convictions and was on state probation. His 11 felony convictions included robbery, burglary, an attempt to elude police, two thefts, two unauthorized use of cars, escape, unlawful possession of methamphetamine, and being a felon in possession of firearms. Simmons also had 17 misdemeanor convictions, including several assaults.
Judge McShane referred to Simmons’ extensive criminal history and risk to reoffend before imposing the four-year prison term and a three-year term of supervision after he is released from prison.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco and Firearms and the Harney County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Frank R. Papagni, Jr., with the assistance of Harney County District Attorney Tim Colahan.
Federal Charges Filed Against 6 Prince George’s County Men as the Result of a Joint Investigation Targeting Armed Drug DealersRead the Press Release
Greenbelt, Maryland – Federal criminal complaints have been filed charging six Prince George’s County men with gun and drug crimes, as a result of a joint investigation by ATF, DEA and the Prince George’s County Police Department that targeted armed drug dealers in Prince George’s County.
In addition, over 150 members of law enforcement executed 12 search warrants at locations in and around Prince George’s County today. As a result of those searches, law enforcement recovered five firearms and 205 rounds of ammunition, over 300 grams of crack cocaine, 1.94 kilos of PCP, approximately $30,000 in cash, as well as codeine and marijuana.
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division (ATF); Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division (DEA); and Chief Hank Stawinski of the Prince George’s County Police Department (PGPD).
“ATF and our federal and local law enforcement partners will continue to be relentless in our pursuit of violent offenders in Prince Georges County,” said ATF Special Agent in Charge Daniel L. Board, Jr.
Three brothers are charged with conspiracy to distribute and possess with intent to distribute crack cocaine and phencyclidine (PCP). The defendants are: Ricky Lee Williams, a/k/a Slick, Pullaman, and Stacy, age 26; James Ricardo Williams, a/k/a Snipe, age 27; and Brooks Everett Williams, age 25, all of Forestville, Maryland. Ricky Lee Williams is also charged with being a felon in possession of a firearm. The criminal complaint was filed on June 28, 2016.
Three other defendants were charged today by criminal complaint. Tyrell Lamont Thompson, age 24, of Forestville, was charged with possession with intent to distribute crack cocaine, possession of a firearm by a previously convicted felon, and using and carrying a firearm during and in relation to a drug trafficking crime. Alvin Bradley, age 27, of Suitland, Maryland is also charged with possession of a firearm by a previously convicted felon. According to his criminal complaint, Bradley was on supervised release for previous federal drug and gun convictions at the time of his arrest. Darrell Glen Pinkney, age 32, of Temple Hills, Maryland, is charged with possession with intent to distribute crack cocaine.
James Williams, Thompson and Bradley were arrested today. Law enforcement is still looking for Ricky and Brooks Williams and Darrell Pinkney.
According to the affidavit filed in support of the Williams’ criminal complaint, the defendants conspired to distribute crack cocaine and PCP in Prince George’s County from September 2015 until the June 2016. Specifically, the affidavit alleges that in September and October 2015, an ATF source made controlled purchases of crack cocaine and a loaded .40 caliber semi-automatic pistol, respectively, from Ricky Williams. The meetings between the source and Ricky Williams were recorded. Ricky Williams has a prior felony conviction and is therefore prohibited from possessing a firearm or ammunition. In addition, the affidavit details phone calls overheard by law enforcement, in which Ricky, James and Brooks Williams, discuss their distribution of PCP.
The charges against Thompson, Bradley and Pinckney were filed after search warrants were executed at their residences.
James Williams, Thompson and Bradley had initial appearances today before U.S. Magistrate Judge Charles B. Day in U.S. District Court in Greenbelt. The defendants were detained pending detention hearings scheduled for next week.
If convicted, the Williams’ face a maximum sentence of 20 years in prison for the drug conspiracy. Ricky Williams, Thompson and Bradley face a maximum sentence of 10 years in prison for being a felon in possession of a firearm. Thompson and Pinkney each face a maximum of 20 years in prison for possession with intent to distribute crack cocaine. Thompson also faces a mandatory minimum of five years consecutive to any other sentence imposed, and up to life in prison for using and carrying a firearm during and in relation to a drug trafficking crime.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended ATF, DEA and the Prince George’s County Police Department for their work in the investigation and thanked the Metropolitan Police Department, Maryland National Capital Park Police and U.S. Marshals Service for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Michael T. Packard and Thomas M. Sullivan, who are prosecuting the case.
Employment Agency Owner Sentenced for Tax FraudRead the Press Release
PROVIDENCE, R.I. – Rossy Noriega, 50, of Providence, R.I., owner of New Diamond Work, Inc., a temporary employment agency based in Fall River, Mass., was sentenced in federal court in Providence today to two years probation, the first six months to be served in home confinement with electronic monitoring, for failing to pay employment taxes for employees she paid in cash and failing to pay personal income taxes on unreported cash she pocketed from her business.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Noriega to perform 100 hours of community service and to pay full restitution to the IRS. Noriega pleaded guilty on April 7, 2016, to income tax evasion and failure to withhold employment taxes.
Noriega’s sentence is announced by United States Attorney Peter F. Neronha and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation (IRS CI).
At the time of her guilty plea, Noriega admitted to the court that during tax years 2009-2013, she withdrew more than $2.5 million dollars in cash from company bank accounts, a portion of which was used to pay some of her employees in cash. A significant amount of the cash was withdrawn for her own personal use.
Noriega admitted to the court that she failed to accurately report to the IRS the number of paid employees, total payments to employees, and federal employment taxes due the IRS. She also failed to accurately report her own personal income, thus she failed to pay the appropriate amount of taxes due the IRS. In total, Noriega failed to pay $720,923 in employment and personal income taxes due the IRS.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
The U.S. State Department Office of Inspector General assisted IRS CI in the investigation of this matter.
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Jim Martin (401) 709-5357
email: [email protected]
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Dubuque Woman Pleads Guilty to Obstruction of JusticeRead the Press Release
A woman who lied to a Deputy United States Marshal about the location of a federal fugitive pled guilty today in federal court in Cedar Rapids.
Vivian Rochelle Weakley, age 28, from Dubuque, Iowa, was convicted of obstruction of justice.
In a plea agreement, Weakley admitted that on April 19, 2016, she knew Antwain Deshaun Spratt was inside her residence in Dubuque when Deputy United States Marshals arrived at the residence looking to arrest Spratt on an outstanding federal arrest warrant. Weakley falsely denied knowing Spratt, and claimed there was no one else in the home. Shortly thereafter, Spratt was found hiding in an upstairs bedroom closet. An unloaded handgun was found in Spratt’s clothes in a hamper right outside the closet.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Weakley remains free on bond previously set pending sentencing. Weakley faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and up to 3 years of supervised release following any imprisonment.
The case is being investigated by the United States Marshals Service and the Dubuque Police Department, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-30-LRR.
Follow us on Twitter @USAO_NDIA.
Detroit One Collaboration Arrests Gang Members for Shooting Involving Children on Detroit's East SideRead the Press Release
The collaboration of local, state and federal law enforcement under the Detroit One initiative has led to the indictment and arrests of two members of the 6 Mile Chedda Grove street gang for a shooting that involved children, United States Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement was Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division, and Chief James Craig, Detroit Police Department.
The indictment charges two defendants for their alleged involvement in a shooting on the afternoon of December 1, 2015, near a market on Hayes Street on Detroit’s east side. The indictment alleges that the two men fired gunshots at a car, killing the 21 year old driver and 13-year-old passenger. The indictment further alleges that the gunmen assaulted two other victims, ages 13 and 7 with their guns causing serious injury.
According to the indictment, “6 Mile Chedda Grove” is a street gang that operates primarily on the east side of Detroit. The indictment alleges that 6 Mile Chedda Grove is a violent organization responsible for murders, assaults, robberies and firearms and narcotics trafficking in the Detroit metropolitan area and in other states. The gang uses violence to retaliate against rivals, to intimidate witnesses and to advance members’ positions within the gang.
Under the Detroit One initiative, and through the lead efforts of the FBI’s Violent Gang Task Force and the Detroit Police Gang Intelligence Unit, law enforcement identified two violent members of this gang who have been charged by indictment in federal court. The Task Force includes representatives of the Detroit Police Department, Michigan Department of Corrections, and the U.S. Border Patrol.
The two defendants arrested today are:
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Edwin Lamont Mills, a/k/a “Edboy,” 26, of Detroit, charged with two counts each of murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering and using and carrying a firearm during a crime of violence causing death;
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Carlo Dajuan Wilson, a/k/a “Los,” 22, of Detroit, also charged with two counts each of murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering and using and carrying a firearm during a crime of violence causing death.
“This shooting, which occurred during broad daylight, killed a 13-year-old girl and 21-year-old man, and seriously injured two other children,” McQuade said. “The utter disregard for human life, including the lives of children, is simply unacceptable, and the Detroit One partners are committed to doing all that we can to end this epidemic of violence against our children.”
“These individuals had no regard for the welfare of these children. Today's arrests demonstrate the continuing commitment of law enforcement to work together to make the neighborhoods in which we raise our children safer," Special Agent in Charge Gelios said.
"The children of Detroit deserve a safe city in which they may grow and thrive," said Chief James E. Craig. "The Detroit One partnership is rooted in the belief that all citizens and neighborhoods deserve to be free of crime and our joint efforts to make that a reality will continue."
By working collaboratively, local, state and federal law enforcement investigate and prosecute individuals and groups initiating violence in Detroit. This indictment is the latest in a string of cases from the United States Attorney’s Office and Wayne County Prosecutor’s Office during the last three years involving violent street gangs in the city of Detroit. Detroit has seen a reduction in homicides every year since the Detroit One collaboration began in 2013.
The defendants will be making their initial appearances in federal court in Detroit this afternoon.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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Dallas County School Teacher Charged with Federal Child Pornography OffenseRead the Press Release
FORT WORTH, Texas — A 59-year-old teacher at Reinhardt Elementary School in Dallas, Mark Stutheit, remains in federal custody following his arrest last week on a federal complaint, filed on June 24, 2016, which charges him with receipt of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Following a probable cause and detention hearing this morning in federal court in Fort Worth, Texas, U.S. Magistrate Judge Jeffrey L. Cureton ordered that Stutheit remain in federal custody.
According to the complaint filed in the case and testimony presented at today’s hearing, the investigation began last month when an undercover officer with the Queensland Police Service (Brisbane, Queensland, Australia) and a person later identified as Stutheit exchanged emails about the sexual exploitation of children.
On June 23, 2016, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a search warrant at Stutheit’s residence in Saginaw, Texas. A forensic evaluation of evidence seized revealed numerous files containing child pornography on Stutheit’s computer and mobile devices.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense as charged is not less than five years or up to 20 years in federal prison, a $250,000 fine and a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Anyone who may have been victimized in this case is asked to contact HSI at its toll-free number: 1-866-347-2423.
ICE HSI is investigating the case. Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
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Credit Union Manager Pleads Guilty to Embezzling $478,000Read the Press Release
PITTSBURGH - A resident of Washington, Pennsylvania pleaded guilty in federal court to charge of embezzlement, United States Attorney David J. Hickton announced today.
Catherine M. Linton, 58, of Washington, Pennsylvania, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that from in and around January of 1998 to in and around May of 2015, Linton, as former manager of Trailblazer Federal Credit Union, embezzled the sum of approximately $478,000 from the credit union.
Judge Ambrose scheduled sentencing for October 25, 2016. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Linton’s release on bond.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Linton.
Columbus Gang Member Sentenced to 96 Months for Racketeering ConspiracyRead the Press Release
COLUMBUS, Ohio – Tysin L. Gordon, 30, of Columbus, was sentenced to 96 months in prison in connection with a racketeering case involving the organized criminal enterprise known as the Short North Posse.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien and Columbus Police Chief Kim Jacobs announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
A total of 20 individuals were indicted in the racketeering case with charges that included murders, attempted murders, drug trafficking, weapons offenses, witness tampering, extortion and robbery.
Gordon pleaded guilty on January 15 to one count of racketeering conspiracy. He is the first defendant in this case to be sentenced.
A United States District Court jury convicted five co-defendants of racketeering and murder earlier this month. After a two-month trial, the group of defendants was convicted on all counts, which accounted for 10 of 14 previously unsolved murders.
A second trial is scheduled to begin on July 11 and a third trial is currently scheduled to begin on September 26 for the remaining defendants.
Acting U.S. Attorney Glassman commended the two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez, and Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.
Citizen of the Czech Republic Is Sentenced to More Than 12 Years in Prison for Transporting, Receiving and Possessing Child Pornography While Visiting the United StatesRead the Press Release
CHARLOTTE, N.C. B Ales Svak, 43, and a citizen of the Czech Republic, was sentenced today to 151 months in prison for transportation, receipt and possession of child pornography he accessed while visiting the United States, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney presided over today’s hearing, and ordered Svak also to serve a lifetime of supervised release and to register as a sex offender. Svak will also be subject to deportation proceedings upon completion of his federal sentence.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Rose in making today’s announcement.
According to court documents and to information introduced at the sentencing hearing, Svak arrived in the United States in August 2014 on a 90-day visa, and was scheduled to return to the Czech Republic in November 2014. Court documents indicate that while visiting in the United States, Svak accessed child pornography online, and shared child pornography with an undercover FBI agent at least four times using a peer-2-peer network. During a subsequent search of Svak’s residence in Charlotte, law enforcement seized multiple electronic devices, including a laptop computer and two external hard drives. Forensic analyses of those devices revealed that Svak possessed 1,014 videos and 1,102 images of child pornography, some of which depicted prepubescent minors engaging in sadistic and masochistic or other violent conduct. Svak also admitted to engaging in a sexual act with a 15-year-old female on two occasions during a prior visit to the United States in 2003.
Svak pleaded guilty in March 2016 to one count of transportation, one count of receipt and one count of possession of child pornography. He is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Rose thanked the FBI for their investigation of this case. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children.By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims.For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Cincinnati Man Indicted for Sex Trafficking ChildrenRead the Press Release
CINCINNATI – A federal grand jury has charged Malik D.M. Bell, 23, of Cincinnati, with sex trafficking of children, production of child pornography and transportation of minors in an indictment that was unsealed today.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division and West Chester Police Chief Joel Herzog announced the indictment, which was returned in March.
The indictment alleges that in April 2015, Bell caused a 15-year-old female victim to engage in a commercial sex act. He allegedly created an advertisement for the victim to engage in commercial sex and drove the victim from Kentucky to Ohio with the intent that the victim engage in prostitution.
Sex trafficking of children and transportation of minors are crimes punishable by a range of 10 years to life in prison. Production of child pornography carries a potential sentence of 15 to 30 years in prison.
Bell’s initial appearance occurred at 1:30pm today, at which time the case was unsealed.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI and West Chester Police, as well as Assistant United States Attorney Kyle J. Healey, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Chinle Bank Robber Sentenced to over 12 Years in PrisonRead the Press Release
PHOENIX, Ariz. – Yesterday, Kristopher Andrew Jaramillo, 39, of Albuquerque, N. M., not a member of the Navajo Nation, was sentenced by U.S. District Judge Steven P. Logan to 151 months’ imprisonment followed by three years of supervised release. Jaramillo had previously pleaded guilty to bank robbery.
On Oct. 26, 2015, Jaramillo entered the Wells Fargo Bank located on the Navajo Nation Reservation in Chinle, Ariz., and gave the bank teller a note demanding money and instructed her not to alert the police. The bank teller complied and gave Jaramillo over $1800 from her drawer.
The investigation in this case was conducted by Navajo Nation Police Department and Federal Bureau of Investigation. The prosecution was handled by Kiyoko Patterson, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-08236-PCT-SPL
RELEASE NUMBER: 2016-054_Jaramillo
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Chinese National Sentenced to 30 Months in Prison for Smuggling High Tech U.S. Military Hardware to ChinaRead the Press Release
Kan Chen, 26, of Ningbo, China, in Zhejiang Province, was sentenced to 30 months in prison and three years of supervised release for conspiring to violate the Arms Export Control Act and International Traffic in Arms Regulations; attempting to violate the Arms Export Control Act and International Traffic in Arms Regulations; and violating the International Emergency Economic Powers Act.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Charles M. Oberly III of the District of Delaware, Acting Special Agent in Charge Gregory C. Nevano of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) Philadelphia and Special Agent in Charge Nasir Khan of the U.S. Department of Commerce-Bureau of Industry and Security’s Office of Export Enforcement Washington Field Office made the announcement.
On June 16, 2015, Chen was arrested by HSI agents on the Northern Mariana Island of Saipan following an eight-month long investigation into his illegal conduct and has remained in custody. He pleaded guilty to the offenses listed above on March 2, 2016.
“The United States will simply never know the true harm of Chen’s conduct because the end users of the rifle scopes and other technology are unknown,” said U.S. Attorney Oberly. “No matter their nationality, those individuals who seek to profit by illegally exporting sensitive U.S. military technology will be prosecuted. It is important that we take all necessary steps to prevent our military technology and equipment from being exported and possibly used against our service members and our allies overseas.”
“These sophisticated technologies are highly sought after by our adversaries,” said Acting Special Agent in Charge Nevano. “They were developed to give the United States and its allies a distinct military advantage, which is why HSI will continue to aggressively target the individuals who might illegally procure and sell these items.”
“Today's sentencing is the result of exceptional investigative work by the Office of Export Enforcement and our law enforcement partners to disrupt an illicit network and prevent sensitive technology from falling into the wrong hands,” said Special Agent in Charge Khan.
According to court documents, from July 2013 through his arrest in June 2015, Chen caused or attempted to cause the illegal export of over 180 export-controlled items, valued at over $275,000, from the United States to China. Over 40 of those items – purchased for more than $190,000 – were sophisticated night vision and thermal imaging scopes, which are designated by the International Traffic in Arms Regulations as U.S. Munitions List defense articles and can be mounted on automatic and semi-automatic rifles and used for military purposes at night.
Given the sensitivity surrounding these military-grade items, Chen devised a scheme to smuggle these items through Delaware and outside the United States. He purchased the devices via the internet and telephone and had them mailed to several reshipping services in New Castle, Delaware, which provide an American shipping address for customers located in China, accept packages for their customers and then re-ship them to China. In order to further conceal his illegal activity, Chen arranged for the re-shippers to send the devices to several intermediary individuals, who in turn forwarded the devices to Chen in China. Chen then sent the devices to his customers. During the course of this conduct, Chen made numerous false statements in order to knowingly and willfully evade the export control laws of the United States, including by undervaluing the shipments, unlawfully avoiding the filing of export information with the U.S. government, indicating that he was a natural-born U.S. citizen and providing the address of the reshipping service as his own.
During the sentencing hearing, the government noted the lethality of these items when combined with weapons designed for use on a battlefield. For example, the ATN ThOR 640-5x, 640x480-Inch Thermal Weapon Scope, 100 mm, which Chen purchased for $8,428.39, is described by the manufacturer as “an ideal product for force protection, border patrol officers, police SWAT and special operations forces providing them the tools they need to be successful in all field operations both day and night. Uncooled thermal imaging cuts through dust, smoke, fog, haze, and other battlefield obscurants.” These rifle scopes, therefore, are weapons of war, and Chen’s smuggling and subsequent sale of these military-grade items outside of the United States directly undermines our nation’s national security interests.
As the government further noted, Chen’s conduct was particularly harmful because he sold this military technology indiscriminately. Thus, it could have ended up in any number of nefarious hands – including agents of foreign governments, bad actors and brokers. Once these rifle scopes were exported to China and distributed by Chen to his customers, the military technology contained inside these items could have been reversed engineered or used anywhere in the world for a variety of purposes by oppressive regimes, terrorists, or others to threaten the United States or its allies’ military advantage or to commit human rights abuses.
This case was investigated by HSI and U.S. Department of Commerce-Bureau of Industry and Security’s Office of Export Enforcement. It is being prosecuted by Assistant U.S. Attorneys Jamie M. McCall and Elizabeth L. Van Pelt of the District of Delaware and the National Security Division’s Counterintelligence and Export Control Section.
Chinese National Receives 30 Month Sentence for Smuggling High Tech U.S. Military Hardware to ChinaRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Kan Chen, of Ningbo, China, in Zhejiang Province, age 26, was sentenced in U.S. District Court to 30 months in prison and three years’ supervised release, after pleading guilty to a three-count Felony Information that charged him with conspiring to violate the Arms Export Control Act and International Traffic in Arms Regulations; attempting to violate the Arms Export Control Act and International Traffic in Arms Regulations and violating the International Emergency Economic Powers Act.
Chen has been incarcerated since June 16, 2015, when he was arrested by Homeland Security Investigation agents on the Northern Mariana Island of Saipan following an eight-month long investigation into his illegal conduct. On March 2, 2016, Chen pled guilty to the offenses listed above.
According to court documents, from July 2013 through his arrest in June 2015, Chen caused or attempted to cause the illegal export of over 180 export-controlled items, valued at over $275,000, from the United States to China. Over 40 of those items – purchased at a cost of over $190,000 – were sophisticated night vision and thermal imaging scopes, designated by the International Traffic in Arms Regulations as United States Munitions List defense articles, which can be mounted on automatic and semi-automatic rifles and used for military purposes at night.
Given the sensitivity surrounding these military-grade items, Chen devised a scheme to smuggle these items through Delaware and outside the United States. He purchased the devices via the internet and telephone and had them mailed to several reshipping services in New Castle, Delaware. These Delaware-based service companies provide an American shipping address for customers located in China, accept packages for their customers, and then re-ship them to China. In order to further conceal his illegal activity, Chen arranged for the re-shippers to send the devices to several intermediary individuals, who in turn forwarded the devices to Chen in China. Chen then sent the devices to his customers. During the course of this conduct, Chen made numerous false statements in order to knowingly and willfully evade the export control laws of the United States. These false statements included undervaluing the shipments, unlawfully avoiding the filing of export information with the U.S. government, indicating that he was a natural-born U.S. citizen, and providing the address of the reshipping service as his own.
During the sentencing hearing, the Government noted the lethality of these items when combined with weapons designed for use on a battlefield. For example, the ATN ThOR 640-5x, 640x480-Inch Thermal Weapon Scope, 100 mm, which Chen purchased for $8,428.39, is described by the manufacturer as “an ideal product for force protection, border patrol officers, police SWAT and special operations forces providing them the tools they need to be successful in all field operations both day and night. Uncooled thermal imaging cuts through dust, smoke, fog, haze, and other battlefield obscurants.” These rifle scopes, therefore, are weapons of war, and Chen’s smuggling – and subsequent sale – of these military-grade items outside the United States directly undermines our nation’s national security interests.
As the Government further noted, Chen’s conduct was particularly harmful, because he sold this military technology indiscriminately. Thus, it could have ended up in any number of nefarious hands – including agents of foreign governments, bad actors, and brokers. Once these rifle scopes were exported to China and distributed by Chen to his customers, the military technology contained inside these items could have been reversed engineered or used anywhere in the world for a variety of purposes by oppressive regimes, terrorists, or others to threaten the United States or its allies’ military advantage or to commit human rights abuses.
Prior to issuing her sentence, U.S. District Court Judge Sue L. Robinson remarked that Chen’s case “was a sobering reflection of the world we live in” and that “the consequences [of Chan’s actions] were truly perilous.”
U.S. Attorney Oberly thanked special agents from both the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Department of Commerce’s Office of Export Enforcement divisions for their hard work, and stated, “The United States will simply never know the true harm of Chen’s conduct because the end users of the rifle scopes and other technology are unknown. No matter their nationality, those individuals who seek to profit by illegally exporting sensitive U.S. military technology will be prosecuted. It is important that we take all necessary steps to prevent our military technology and equipment from being exported and possibly used against our service members and our allies overseas.”
Gregory C. Nevano, Acting Special Agent in Charge of HSI Philadelphia, stated, “These sophisticated technologies are highly sought after by our adversaries. They were developed to give the United States and its allies a distinct military advantage, which is why HSI will continue to aggressively target the individuals who might illegally procure and sell these items.”
“Today's sentencing is the result of exceptional investigative work by the Office of Export Enforcement and our law enforcement partners to disrupt an illicit network and prevent sensitive technology from falling into the wrong hands,” said Nasir Khan, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement’s, Washington Field Office.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement. It is being prosecuted by Assistant United States Attorneys Jamie M. McCall and Elizabeth L. Van Pelt, and the Counterintelligence and the National Security Division’s Counterintelligence and Export Control Section.
Chinese National Indicted for Software Piracy SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Chinese national was indicted by a federal grand jury today for his role in an international, multi-million dollar software piracy scheme.
Wen Tao Liu, also known as Orland Liu, 36, a citizen of the People’s Republic of China, was charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint filed against Liu on June 13, 2016, and contains additional charges. Liu, who was arrested on June 15, 2016, at Dallas Fort Worth International airport on an American Airlines flight during his return flight to China, remains in federal custody.
Today’s indictment alleges that Liu, doing business as Haitu International Group Co. Limited (an entity based in Hong Kong), participated in a conspiracy from March 10, 2010, to Feb. 2, 2015, to commit the offenses of unauthorized solicitation of access devices, trafficking in counterfeit goods and smuggling goods into the United States.
Liu allegedly obtained and sold counterfeit, illicit, and/or unauthorized Microsoft software, software products and related components, including unauthorized product key codes and counterfeit product key cards, causing the Microsoft Corporation millions of dollars in losses.
According to an affidavit filed in support of the original criminal complaint, investigators identified at least 4,659 individual product activation key codes distributed by Liu to various resellers across the United States, which were collectively activated over 36,000 times. Microsoft had already blocked 1,111 of those keys due to suspicions of piracy and 2,267 of the keys were already identified in the course of other Microsoft fraud investigations. Microsoft’s loss from the repeated activations of the 4,659 product keys could total approximately $9 million.
Liu allegedly acquired unauthorized product key codes and counterfeit product key cards for Microsoft software from others within the People’s Republic of China. According to the indictment, Liu supplied them to Kansas City, Mo., resident Casey Ross, Damascus, Md., resident Reza Davachi and numerous other individuals across the country. Co-conspirators in the United States, the indictment says, then resold these unauthorized product key codes and counterfeit product key cards for Microsoft software products to unsuspecting customers through their companies and affiliated Web sites.
For example, the indictment cites 105 wire transfers, totaling approximately $1,591,193, made to Liu by an unnamed co-conspirator in Florida for the purchase of unauthorized product key codes and counterfeit Microsoft Office “Lenovo” product key cards between April 14, 2014, and Feb. 10, 2015.
In addition to the conspiracy, today’s indictment charges Liu with one count of trafficking in counterfeit goods. According to the indictment, an undercover agent purchased 500 counterfeit Microsoft Office “Lenovo” product key cards from Liu for $35,000. Liu is also charged with one count of smuggling goods into the United States and one count of the entry of goods by means of false statements. According to the indictment, Liu smuggled the 500 counterfeit Microsoft Office “Lenovo” product key cards into the United States by shipping them in packages that falsely labeled them as gift cards with a total declared value of $50.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Patrick D. Daly and Curt Bohling. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Chester Duo Pleads Guilty to Conspiracy and Other ChargesRead the Press Release
Steven Hameed, 57, and Darnell Young, 48, both of Chester PA, pleaded guilty today to all charges against them relating to a multi-year conspiracy to file false deeds on homes throughout Delaware County and file false tax forms against judges, law enforcement, and other government employees to try to intimidate and harass them in the course of their official duties, announced United States Attorney Zane David Memeger.
According to the Indictment, the defendants filed false land deeds with the Delaware County Recorder of Deeds Office in an attempt to claim ownership of homes owned by the government or by banks, and then to live in the homes, or rent/sell the homes to unsuspecting persons, for their own financial gain. The Indictment further charges that the defendants filed hundreds of false tax forms against police officers, judges, and other government employees to try to harass and intimidate them in the course of their duties. Defendants Hameed and Young also pleaded guilty to creating a false financial bond, which they mailed to a realtor in an attempt to purchase property.
The defendants face substantial periods of incarceration, five-year periods of supervised release, restitution and substantial fines. U.S. District Judge Timothy J. Savage has scheduled sentencing for September 28, 2016.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Housing and Urban Development – Office of Inspector General, the Treasury Inspector General for Tax Administration, the Federal Housing Finance Agency – Office of Inspector General, the Federal Deposit Insurance Corporation – Office of Inspector General, the Social Security Administration - Office of Inspector General, the Philadelphia Police Department, the Delaware County Detectives, the Aston Police Department, and the Upper Darby Police Department, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz and Assistant United States Attorney Vineet Gauri.
Charleston Man to Serve Nine Years in Federal Prison for Heroin, Gun OffensesRead the Press Release
Urbana, Ill. – Arnett Deshaun Brown, 43, last known address 1500 block Woodlawn Drive, Charleston, Ill., has been ordered to serve nine years in federal prison for drug and gun offenses. U.S. District Judge Colin S. Bruce sentenced Brown in Urbana on June 27. Brown was also ordered to remain on supervised release for a period of six years after his release from prison.
On Feb. 29, 2016, Brown pled guilty to possession of heroin with intent to distribute, possession of a firearm in furtherance of a drug crime and possession of a firearm by a felon. Brown’s sentence consists of 48 months in prison, to be served concurrently, for the possession of heroin with intent to distribute and possession of a firearm by a felon counts, followed by a consecutive sentence of 60 months for possession of a firearm in furtherance of a drug crime.
According to court documents, on June 11, 2014, when law enforcement officers executed a search warrant for an apartment where Brown allegedly stored drugs, they recovered 47.0 grams of heroin, and a loaded, Taurus, .45 caliber, semi-automatic pistol. At the time Brown possessed the gun, he had at least four prior felony convictions from Cook and Coles County.
The East Central Illinois Task Force investigated the charges. Assistant U.S. Attorney Eugene L. Miller prosecuted the case in the Central District of Illinois, Urbana Division.
Brown has remained in the custody of the U.S. Marshals Service since his arrest in September 2015.
Chalmette Man Sentenced for Violations of Federal Controlled Substances ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARQUIS JOHNSON, age 25, of Chalmette, was sentenced today on charges related to four violations of the Federal Controlled Substances Act. According to court records, JOHNSON conspired with others to possess with the intent to distribute and to distribute a quantity of a mixture or substance containing a detectable amount of heroin, a Schedule I drug controlled substance and a substance containing a detectable amount of cocaine base, a Scheduled II drug controlled substance. In addition to the conspiracy, JOHNSON was sentenced on three substantive distributions of heroin or cocaine base.
U.S. District Judge Susie Morgan sentenced JOHNSON to a 71-month term of imprisonment for the drug conspiracy and distribution charges. JOHNSON was also ordered to serve a 3-year term of supervised release following imprisonment and to pay a $400 special assessment.
U.S. Attorney Polite praised the work of the Special Agents of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorneys David Haller and Shirin Hakimzadeh were in charge of the prosecution.
Cana, Virginia Man Pleads Guilty to Federal Drug ChargeRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced the guilty plea today of a Virginia man to a federal drug conspiracy charge.
Rebel Steiner Akers, 59, of Cana, Virginia, pled guilty today in the United States District Court to one count of conspiring to distribute 500 grams or more of methamphetamine.
“We will continue to devout all appropriate resources to combating the rise of methamphetamine trafficking in Southwest Virginia,” United States Attorney John P. Fishwick said today. “I am grateful to all of the local, state and federal law enforcement agencies who work on the front lines of these investigations and take this dangerous drug off our streets.”
The investigation of the case was conducted by the Drug Enforcement Administration, the Carroll County Sheriff’s Office and the Surry County, North Carolina Sheriff’s Office. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Buffalo Man Pleads Guilty to Drug 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 Tramell Bishop, 37, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine, before U.S. District Judge Elizabeth A. Wolford. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a fine of $5,000,000, or both.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that between 2011 and August 13, 2013, Bishop conspired with others distribute cocaine. On August 13, 2013, Houston, Texas police officers encountered the defendant at the Mega Bus parking lot in Houston. Officers asked Bishop if they could search his suitcase and he consented. The officers discovered approximately five kilograms of cocaine hidden in the back of the suitcase. Bishop indicated that he was intending to travel back to Buffalo, New York.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge, and the Houston Police Department, under the direction of Police Chief Martha I. Montalvo.
Sentencing is scheduled for October 5, 2016 at 10:00 a.m. before Judge Wolford.
Brooke County man sentenced for lying to law enforcement officersRead the Press Release
WHEELING, WEST VIRGINIA – Matthew Ian Haught, 33, of Follansbee, West Virginia, was sentenced to twelve months and one day in prison for making a false statement to law enforcement officers, United States Attorney William J. Ihlenfeld, II, announced.
During an interview with Bureau of Alcohol, Tobacco, Firearms, and Explosives agents, Haught lied about how he came into possession of a stolen firearm. He later admitted to having stolen the firearm and to having possessed it before disposing of it. In February 2016, Haught pled guilty to one count of “False Statement to Law Enforcement.”
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge John Preston Bailey presided.
British Man Who Was Arrested at Trump Rally in Las Vegas Indicted on Weapons and Disruption ChargesRead the Press Release
LAS VEGAS, Nev. – The British man who was arrested two weeks ago at a Donald Trump rally in Las Vegas after he attempted to seize a law enforcement officer’s firearm, was indicted by the federal grand jury today on three felony charges, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Michael Steven Sandford, 20, of England, is charged with two counts of illegal alien in possession of a firearm and one count of impeding and disrupting the orderly conduct of government business and official functions. If convicted, he faces up to 10 years in prison and a fine of up to $250,000 on each count. He is currently in federal custody and scheduled for an arraignment and plea hearing on July 6, at 3:00 p.m.
According to the indictment and previously filed criminal complaint, on June 17, 2016, Sandford, who is a British citizen and was unlawfully in the United States, allegedly went to a gun range in Las Vegas and took shooting lessons using a Glock 9 millimeter handgun. The following day, on June 18, Sandford entered a political rally event for Donald Trump at the Mystere Theatre in the Treasure Island Casino. The event was under the protection of the U.S. Secret Service, and there were posters at the entrance to the event designating the grounds as restricted and under the protection of the U.S. Secret Service. Las Vegas Metropolitan Police Department (LVMPD) officers were also present at the rally to assist with security. Inside the rally, Sandford approached a uniformed LVMPD officer and attempted to seize the officer’s Glock 9 millimeter handgun by grabbing the holster and handle of the firearm with both hands in an attempt to remove it from the holster. Sandford was immediately arrested and removed from the rally.
The case is being investigated by the U.S. Secret Service, and prosecuted by Assistant U.S. Attorney Jared L. Grimmer.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Brevard Public Schools Employees Charged with Drug TraffickingRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the arrests of and unsealing of a criminal complaint charging Leonard Charles Agee Jr. (40, Titusville) and Benjamin S. Jenkins (36, Mims) with conspiracy to distribute and possession with intent to distribute controlled substances. If convicted, each faces a maximum penalty of 20 years in federal prison.
At the time of the investigation, Agee and Jenkins were football coaches and employees of Brevard Public Schools.
According to the complaint, between September 2015 and his arrest today, Agee sold heroin to a confidential informant, and he has been trafficking in cocaine and marijuana. On multiple occasions starting in 2015, Jenkins sold prescription pills and cocaine to a confidential informant.
Several search warrants have been executed in Titusville and Mims in connection with this investigation. Three additional individuals were also arrested today on state charges.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration, with assistance from the Brevard County Sheriff’s Office, the Titusville Police Department, the Melbourne Police Department, and the Florida Department of Corrections Probation and Parole Services. It will be prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.
Bessemer Grocer Sentenced to Nearly 4 Years in PrisonRead the Press Release
BIRMINGHAM – A federal judge this week sentenced a Bessemer grocery store owner to three years and 10 months in prison and ordered him to forfeit $5.2 million to the government for defrauding the food stamp program, structuring cash transactions and laundering money to hide the illegal profit, and evading federal income taxes, announced U.S. Attorney Joyce White Vance, IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot and U.S. Department of Agriculture Office of Inspector General, Investigations, Special Agent in Charge Karen Citizen-Wilcox.
HASAN F. AHMED, 50, owner and operator of Associated Discount Foods on Ninth Street South in Bessemer, pleaded guilty in March to one count each of food stamp fraud, tax evasion and structuring currency transactions, and four counts of money laundering. U.S. District Judge R. David Proctor sentenced him on the charges Monday. In accordance with Ahmed’s plea agreement with the government, the judge also ordered Ahmed to forfeit the $5.2 million as proceeds of illegal activity.
“For several years, this defendant misused thousands of dollars’ worth of food stamp benefits every day, enriching himself at the expense of American taxpayers and food stamp recipients,” Vance said. “The SNAP program provides assistance for those who need help to feed their families. We will not allow criminals to corrupt that program so they can feed their own greed.”
“Hasan Ahmed intentionally abused the SNAP program and lined his pockets with taxpayer funds,” Hyman-Pillot said. “His actions ultimately reduced the amount of benefits available to families in need of nutrition assistance. IRS-CI and our law enforcement partners will continue to work together and investigate similar schemes. We will trace every penny of illicit proceeds and return the funds to the United States Government.”
Associated Discount Foods is a mid-sized neighborhood grocery store that was authorized by the U.S. Department of Agriculture to accept Supplemental Nutrition Assistance Program food stamp benefits.
From January 2007 through December 2010, the store’s average monthly SNAP redemptions were $4,196, increasing to $17,457 in January 2011, according to Ahmed’s plea agreement. By April 2011, the store’s monthly SNAP redemptions surpassed the average monthly redemptions of five other medium-sized grocery stores within a 14-mile area.
“Based on ADF’s total SNAP redemptions and comparison analysis, the defendant acquired an estimated $5,243,866.49 in SNAP benefits from July 2011 through June 2014 in a way that was contrary to law,” the plea agreement said. Ahmed’s redemptions rose dramatically because he illegally swapped food stamps for cash, at less than the stamps’ face value, and allowed customers to purchase ineligible items with food stamp benefits at inflated rates, according to the document.
Ahmed evaded taxes on the illegal income when he filed a federal income tax return for the 2013 tax year claiming total income of $24,728 when his actual income was $210,927, according to his plea.
Court documents, including Ahmed’s plea agreement, outline his money laundering and illegal currency structuring as follows:
Ahmed controlled a BB&T checking account opened in the name of a relative, identified in court documents as R.N. Between June 2013 and June 2014, in four separate transactions, he deposited $58,100 in proceeds of his food stamp fraud into R.N.’s account. Ahmed moved money into R.N.’s account from his grocery store’s business accounts, where SNAP benefits were electronically deposited, to conceal or disguise that the money was the product of his food stamp fraud.
Ahmed illegally structured financial transactions in an Associated Discount Foods business account at BB&T, making two withdrawals of $10,000 and 36 withdrawals ranging from $9,200 to $9,900, for a total of $362,900, between January and May of 2013. After a bank teller informed Ahmed that transactions over $10,000 had to be reported, he made no further currency transactions over that amount.
Financial institutions are required by law to report currency transactions above $10,000 to the U.S. Department of Treasury. “The defendant engaged in these transactions to evade the reporting requirement” on the 38 withdrawals, according to Ahmed’s guilty plea.
IRS-CI and USDA-OIG investigated the case, which Assistant U.S. Attorneys Erica Williamson Barnes and Daniel Fortune prosecuted.
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Berrien County, Georgia, Sheriff Pleads Guilty to Using Excessive Force Against ArresteesRead the Press Release
Berrien County, Georgia, Sheriff Anthony Heath pleaded guilty today to two counts of violating the civil rights of two non-resistant arrestees by using excessive force against them. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and Acting U.S. Attorney G.F. Peterman III of the Middle District of Georgia announced the guilty plea. A sentencing date has not yet been set.
According to Heath’s guilty plea, on Jan. 12, 2012, Heath and deputies from the Berrien County Sheriff’s Office (BCSO) were engaged in a foot chase of an individual identified only as M.V., who had been banned from traveling through the county. During the chase, Heath saw M.V. and called out to him, “You better not run or I will beat your a**,” or words to that effect. M.V. responded by running into a nearby wooded area.
Heath and multiple BCSO deputies followed M.V. into the woods, where a BCSO deputy eventually saw M.V. and arrested him without incident. When a deputy reported that M.V. was in custody, Heath ordered deputies to wait and hold M.V. in the woods. When Heath arrived, M.V. was lying face-down on the ground, with his hands handcuffed behind his back and was not resisting arrest. Heath kicked M.V. in the ribs, punched him in the head with a closed fist multiple times and forcefully kneed him in the ribs multiple times, causing M.V. to experience pain and have difficulty breathing.
During a separate incident, on Oct. 1, 2014, Heath repeatedly punched and kicked an arrestee, identified only as J.H., even though J.H. surrendered, lay down on the ground and did not attempt to flee or threaten anyone at any point after his arrest. Heath punched J.H. with sufficient force to cause his own hand to become swollen and bruised. Heath’s punches caused J.H. to bleed from his mouth and to feel pain.
“As sheriff, Heath held the highest-ranking law enforcement position in Berrien County, but he violated the public trust when he chose to break the law and beat compliant arrestees,” said Principal Deputy Assistant Attorney General Gupta. “Our Constitution prohibits officers from using excessive and unnecessary force against non-resistant arrestees, and the Justice Department will continue to aggressively prosecute cases where law enforcement officers abuse their authority.”
“The people place tremendous power in the hands of someone they elect as county sheriff, and do so in faith that such power will be wielded appropriately,” said Acting U.S. Attorney Peterman. “The motto of our Sheriff’s in Georgia has traditionally been ‘To Serve and To Protect.’ Sheriff Heath abused that power and broke faith with those who elected him by physically abusing those he was sworn to protect.”
The case is being investigated by the FBI. Trial Attorneys Stephen Curran and Mary J. Hahn of the Civil Rights Division’s Criminal Section are prosecuting the case.
Heath Plea Agreement
Berrien County, Georgia, Sheriff Pleads Guilty to Using Excessive Force Against ArresteesRead the Press Release
WASHINGTON – Berrien County, Georgia, Sheriff Anthony Heath pleaded guilty to two counts of violating the civil rights of two non-resistant arrestees by using excessive force against them. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and Acting U.S. Attorney G.F. Peterman III of the Middle District of Georgia announced the guilty plea. A sentencing date has not yet been set.
According to Heath’s guilty plea, on Jan. 12, 2012, Heath and deputies from the Berrien County Sheriff’s Office (BCSO) were engaged in a foot chase of an individual identified only as M.V., who had been banned from traveling through the county. During the chase, Heath saw M.V. and called out to him, “You better not run or I will beat your a**,” or words to that effect. M.V. responded by running into a nearby wooded area.
Heath and multiple BCSO deputies followed M.V. into the woods, where a BCSO deputy eventually saw M.V. and arrested him without incident. When a deputy reported that M.V. was in custody, Heath ordered deputies to wait and hold M.V. in the woods. When Heath arrived, M.V. was lying face-down on the ground, with his hands handcuffed behind his back and was not resisting arrest. Heath kicked M.V. in the ribs, punched him in the head with a closed fist multiple times and forcefully kneed him in the ribs multiple times, causing M.V. to experience pain and have difficulty breathing.
During a separate incident, on Oct. 1, 2014, Heath repeatedly punched and kicked an arrestee, identified only as J.H., even though J.H. surrendered, laid down on the ground and did not attempt to flee or threaten anyone at any point after his arrest. Heath punched J.H. with sufficient force to cause his own hand to become swollen and bruised. Heath’s punches caused J.H. to bleed from his mouth and to feel pain.
“As sheriff, Heath held the highest-ranking law enforcement position in Berrien County, but he violated the public trust when he chose to break the law and beat compliant arrestees,” said Principal Deputy Assistant Attorney General Gupta. “Our Constitution prohibits officers from using excessive and unnecessary force against non-resistant arrestees, and the Justice Department will continue to aggressively prosecute cases where law enforcement officers abuse their authority.”
“The people place tremendous power in the hands of someone they elect as county sheriff, and do so in faith that such power will be wielded appropriately,” said Acting U.S. Attorney Peterman. “The motto of our Sheriff’s in Georgia has traditionally been ‘To Serve and To Protect.’ Sheriff Heath abused that power and broke faith with those who elected him by physically abusing those he was sworn to protect.”
The case is being investigated by the FBI. Trial Attorneys Stephen Curran and Mary J. Hahn of the Civil Rights Division’s Criminal Section are prosecuting the case.
Bergen County, New Jersey, Man Admits Helping Disguise Foreign Contributions During 2012 Presidential ElectionRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted helping funnel $80,000 in campaign contributions from a foreign source to the joint fundraising committee of the President of the United States during the 2012 presidential election, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey announced.
Bilal Shehu, 48, of Paramus, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with knowingly and willfully making foreign contributions and donations in connection with the 2012 presidential election and to a fundraising and political campaign committee of the president, aggregating $25,000 or more during a calendar year.
According to documents filed in this case and statements made in court:
In September 2012, Shehu, a U.S. citizen living in New Jersey, received approximately $80,000 from a foreign source and provided it to a joint fundraising committee – including the authorized campaign committee of the president – to disguise the true origin of the money and so that a foreign national could attend a campaign event on Oct. 8, 2012, in San Francisco. Federal law prohibits foreign nationals from making contributions to federal candidates or fundraising committees and, in order to attend the event, a foreign national needed to be accompanied by a U.S. citizen. Shehu admitted that he received an $80,000 wire transfer into his New Jersey-based bank account from a foreign bank account in late September 2012, knowing that he was to provide it to the joint fundraising committee. In early October 2012, Shehu flew to San Francisco and attempted to gain entry into the San Francisco fundraising event with the foreign national, who was denied entry but was allowed to be photographed with the President.
No one on the joint fundraising committee has been accused of any wrongdoing and the committee has fully cooperated in the investigation leading to today’s guilty plea.
The charge to which Shehu pleaded guilty carries a maximum potential penalty of five years and a $250,000 fine. Sentencing is scheduled for Oct. 5, 2016.
The FBI investigated the case. The government is represented by Assistant U.S. Attorney Mark J. McCarren of the District of New Jersey’s Special Prosecutions Division Trial Attorneys Charles Walsh and Peter Halpern of the Criminal Division’s Public Integrity Section.
Defense counsel: Alan M. Abramson Esq., New York
Alison Gu Arraigned on Charges of Bank Fraud, Aggravated Identity Theft, and False Statements in Connection with Passport ApplicationRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Alison Gu, 40, of Cheshire, Connecticut was arraigned today in federal court on a three-count indictment charging her with bank fraud, aggravated identity theft, and false statements in connection with a passport application. U.S. Magistrate Judge John M. Conroy ordered that Gu be released on conditions, including that she not open new lines of credit, pending trial in this matter. If convicted, Gu faces a maximum possible penalty of 30 years in prison for bank fraud; up to 10 years in prison for making a false statement in an application for a U.S. passport; and a mandatory 2-year sentence for using the identifying information of another person in connection with the passport application. Gu also faces potential fines of up to $1,000,000.
According to court records, between March and September 2015, Gu, using several aliases, obtained over $1,000,000 through submission of mortgage loan applications and re-financing applications to Bank of Bennington, First National Bank of America, and Emigrant Mortgage Company containing false information. The fraud scheme included the establishment of false identities using the Social Security Numbers of deceased individuals; the submission of altered bank statements, forged employment records, and forged pay statements to the financial institutions; and the forged signature of a United States consular official in China. Also according to the indictment, Gu made false statements in a March 27, 2015 application for a U.S. passport in Vermont. Gu submitted the passport application using the identifying information of another individual. The indictment also alleges that certain properties in Vermont and Florida are forfeitable to the United States as proceeds of the fraud scheme.
Gu was arrested in Connecticut on June 13, 2016, and made an appearance in federal court that day, where she was ordered to appear today in Burlington.
United States Attorney Eric S. Miller emphasized that the indictment is an accusation only and that the defendant is presumed innocent until and unless proven guilty. Should Gu be convicted of the charged crimes, the sentence will be advised by the Federal Sentencing Guidelines.
The investigative agency in this case is the United States Department of State Diplomatic Security Service, St. Albans, Vermont Resident Office. Assistant U.S. Attorney Kevin J. Doyle is handling the prosecution of this matter. Gu is represented by David L. McColgin, Esq. of the Federal Defender’s Office.
35 Individuals Charged with Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On June 23, 2016, a federal grand jury in the District of Puerto Rico returned an indictment against 35 defendants charged with conspiracy to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration and the Puerto Rico Police Department (PRPD), Ponce Strike Force Unit, are in charge of the investigation.
The indictment alleges that beginning in 2012, the organization distributed heroin, crack, cocaine, and marihuana, at the Rafael López Nussa, Ernesto Ramos Antonini and the Dr. Manuel De La Pila Iglesias Public Housing Projects in Ponce; and the El Pino Ward in Villalba, Puerto Rico, all for significant financial gain and profit.
The thirty-five defendants acted in different roles in order to further the goals of their organization, to wit: leaders, drug point owners, enforcers, runners, sellers, and facilitators. Ten defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime.
The defendants are: Miguel A. Pacheco-Mejías, a.k.a. “El Blanco/Miguel Ratón”; Mark W. Torres-O’Conner, a.k.a “Mawi”; Ronald Aponte-Castillo; Freddy Ferrer-Crespo, a.k.a. “Maldito”; José M. Torres-Rodríguez, a.k.a. “Pollina/Polli”; Luis A. Archeval, a.k.a. “Archeval”; José A. Avilés-Gilbert, a.k.a. “Berto/Lolo”; José Ortiz-Cedeño, aka “Monchi”; Orlando Arroyo a.k.a. “Casper”; Christopher De Jesús, a.k.a. “Planetario”; Ángel Pérez-Cancel, a.k.a. “Yanyel”; Anthony B. Rivera-López, a.k.a. “La B”; Arnaldo J. Santana-Ramos, a.k.a. “Naldy”; Walter Hernández-Rivera, a.k.a. “Walter Cabeza”; Alexis Soto-Vargas, a.k.a. “Bolillo”; Luis A. Santiago-Irizarry, a.k.a. “Kikologo”; Joshua Ortiz-Archeval, a.k.a. “Kikito”; Christian X. Lugo-Sopena, a.k.a. “Tostón”; Jorge L. Maldonado-Pacheco, a.k.a. “Barber”; Geremid F. Pérez-Banchs, a.k.a. “Bebo”; Nelson Lacourt-Linares, a.k.a. “Blaki”; Luis A. Ayala-Vega, a.k.a. “Mellao”; Byan Ocasio-Martínez, a.k.a. “Cuajo”; Richard Santiago-Santiago, a.k.a. “Güimo”; Miguel A. Pérez, a.k.a. “Pucho”; Christopher J. Bracero-Román, a.k.a. “Mono”; Carlos Padilla-Pérez, a.k.a. “Luis Padilla”; Félix J. González-Torres, a.k.a. “El Gato”; Giovany Matos-Vicenti, a.k.a. “Mueca”; Alexis G. Mercado-Sánchez, a.k.a. “Macri”; Jean L. Domínguez-Soto, a.k.a. “Chino”; Jesús M. Daliot-Ríos, a.k.a. “Chuchu”; Wilbert Rosado-Pérez, a.k.a. “Bebo Federal”; Steven Quintana-Cedeño, a.k.a. “Problematic Quintana/Nesti”; and Elizardo Ruiz-Tirado, a.k.a. Tito Línea/TL”.
The defendants and their co-conspirators routinely possessed, carried, brandished and used firearms to protect themselves and their drug trafficking organization, maintain control of their drug points, intimidate and retaliate against other drug trafficking organizations and expand their drug trafficking activities. The sellers would use masks to cover their faces and avoid detection by law enforcement while selling drugs at the drug points. Some defendants tattooed themselves and wore clothing items with the logo of the organization.
“We will continue our joint efforts to dismantle violent drug trafficking organizations at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “These arrests will keep the law abiding citizens of Ponce and Villalba safer from the inevitable violence that drug trafficking brings.”
“This DEA investigation and arrests have effectively dismantled the main drug trafficking organization in the Ponce area. DEA will continue its commitment to conduct high scale research to bring to justice these criminal organizations that strive to create violence and unrest in our communities and promote the use and abuse of controlled substances,” said Israel Alicea, Assistant Special Agent in Charge, DEA Caribbean Division.
Assistant U.S. Attorney María L. Montañez-Concepción and Assistant U.S. Attorney John A. Mathews II are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
28 June 2016
Woman Pleads Guilty and is Sentenced for Assault Aboard an AircraftRead the Press Release
United States Attorney Kenneth A. Polite announced that KATE LOHAN, age 33, a resident of Boca Raton, Florida, pled guilty today to a one-count Bill of Information for committing assault while aboard an aircraft.
U.S. Magistrate Judge Joseph C. Wilkinson, Jr. sentenced LOHAN to one year of probation with continued substance abuse treatment and ordered her to pay restitution in the amount of $7,212.25 for costs incurred such as a landing fee, fuel charges, flight delays, etc.
According to court documents, on November 25, 2015, LOHAN was a ticketed passenger on JetBlue flight number 101 traveling from Fort Lauderdale-Hollywood International Airport to Los Angeles International Airport. She became disruptive prior to takeoff after she was told by a flight attendant to put her seat in the upright position. During the course of the flight, witnesses stated that LOHAN was continuing to be disruptive, and later threw a cell phone at one of the flight attendants. Her actions caused the flight to be diverted to New Orleans.
U.S. Attorney Polite praised the work of the Special Agents of the Federal Bureau of Investigation and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Volkswagen to Spend up to $14.7 Billion to Settle Allegations of Cheating Emissions Tests and Deceiving Customers on 2.0 Liter Diesel VehiclesRead the Press Release
In two related settlements, one with the United States and the State of California, and one with the U.S. Federal Trade Commission (FTC), German automaker Volkswagen AG and related entities have agreed to spend up to $14.7 billion to settle allegations of cheating emissions tests and deceiving customers. Volkswagen will offer consumers a buyback and lease termination for nearly 500,000 model year 2009-2015 2.0 liter diesel vehicles sold or leased in the U.S., and spend up to $10.03 billion to compensate consumers under the program. In addition, the companies will spend $4.7 billion to mitigate the pollution from these cars and invest in green vehicle technology.
The settlements partially resolve allegations by the Environmental Protection Agency (EPA), as well as the California Attorney General’s Office and the California Air Resources Board (CARB) under the Clean Air Act, California Health and Safety Code, and California’s Unfair Competition Laws, relating to the vehicles’ use of “defeat devices” to cheat emissions tests. The settlements also resolve claims by the FTC that Volkswagen violated the FTC Act through the deceptive and unfair advertising and sale of its “clean diesel” vehicles. The settlements do not resolve pending claims for civil penalties or any claims concerning 3.0 liter diesel vehicles. Nor do they address any potential criminal liability.
The affected vehicles include 2009 through 2015 Volkswagen TDI diesel models of Jettas, Passats, Golfs and Beetles as well as the TDI Audi A3.
“By duping the regulators, Volkswagen turned nearly half a million American drivers into unwitting accomplices in an unprecedented assault on our environment,” said Deputy Attorney General Sally Q. Yates. “This partial settlement marks a significant first step towards holding Volkswagen accountable for what was a breach of its legal duties and a breach of the public’s trust. And while this announcement is an important step forward, let me be clear, it is by no means the last. We will continue to follow the facts wherever they go.”
“Today’s settlement restores clean air protections that Volkswagen so blatantly violated,” said EPA Administrator Gina McCarthy. “And it secures billions of dollars in investments to make our air and our auto industry even cleaner for generations of Americans to come. This agreement shows that EPA is committed to upholding standards to protect public health, enforce the law, and to find innovative ways to protect clean air.”
“Today’s announcement shows the high cost of violating our consumer protection and environmental laws,” said FTC Chairwoman Edith Ramirez. “Just as importantly, consumers who were cheated by Volkswagen’s deceptive advertising campaign will be able to get full and fair compensation, not only for the lost or diminished value of their car but also for the other harms that VW caused them.”
According to the civil complaint against Volkswagen filed by the Justice Department on behalf of EPA on January 4, 2016, Volkswagen allegedly equipped its 2.0 liter diesel vehicles with illegal software that detects when the car is being tested for compliance with EPA or California emissions standards and turns on full emissions controls only during that testing process. During normal driving conditions, the software renders certain emission control systems inoperative, greatly increasing emissions. This is known as a “defeat device.” Use of the defeat device results in cars that meet emissions standards in the laboratory, but emit harmful NOx at levels up to 40 times EPA-compliant levels during normal on-road driving conditions. The Clean Air Act requires manufacturers to certify to EPA that vehicles will meet federal emission standards. Vehicles with defeat devices cannot be certified.
The FTC sued Volkswagen in March, charging that the company deceived consumers with the advertising campaign it used to promote its supposedly “clean diesel” VWs and Audis, which falsely claimed that the cars were low-emission, environmentally friendly, met emissions standards and would maintain a high resale value.
The settlements use the authorities of both the EPA and the FTC as part of a coordinated plan that gets the high-polluting VW diesels off the road, makes the environment whole, and compensates consumers.
The settlements require Volkswagen to offer owners of any affected vehicle the option to have the company buy back the car and to offer lessees a lease cancellation at no cost. Volkswagen may also propose an emissions modification plan to EPA and CARB, and if approved, may also offer owners and lessees the option of having their vehicles modified to substantially reduce emissions in lieu of a buyback. Under the U.S./California settlement, Volkswagen must achieve an overall recall rate of at least 85% of affected 2.0 liter vehicles under these programs or pay additional sums into the mitigation trust fund. The FTC order requires Volkswagen to compensate consumers who elect either of these options.
Volkswagen must set aside and could spend up to $10.03 billion to pay consumers in connection with the buy back, lease termination, and emissions modification compensation program. The program has different potential options and provisions for affected Volkswagen diesel owners depending on their circumstances:
Buyback option: Volkswagen must offer to buy back any affected 2.0 liter vehicle at their retail value as of September 2015 -- just prior to the public disclosure of the emissions issue. Consumers who choose the buyback option will receive between $12,500 and $44,000, depending on their car’s model, year, mileage, and trim of the car, as well as the region of the country where it was purchased. In addition, because a straight buyback will not fully compensate consumers who owe more than their car is worth due to rapid depreciation, the FTC order provides these consumers with an option to have their loans forgiven by Volkswagen. Consumers who have third party loans have the option of having Volkswagen pay off those loans, up to 130 percent of the amount a consumer would be entitled to under the buyback (e.g., if the consumer is entitled to a $20,000 buyback, VW would pay off his/her loans up to a cap of $26,000).
EPA-approved modification to vehicle emissions system: The settlements also allow Volkswagen to apply to EPA and CARB for approval of an emissions modification on the affected vehicles, and, if approved, to offer consumers the option of keeping their cars and having them modified to comply with emissions standards. Under this option in accordance with the FTC order, consumers would also receive money from Volkswagen to redress the harm caused by VW’s deceptive advertising.
Consumers who leased the affected cars will have the option of terminating their leases (with no termination fee) or having their vehicles modified if a modification becomes available. In either case, under the FTC order, these consumers also will receive additional compensation from Volkswagen for the harm caused by VW’s deceptive advertising. Consumers who sold their TDI vehicles after the VW defeat device issue became public may be eligible for partial compensation, which will be split between them and the consumers who purchased the cars from them as set forth in the FTC order.
Eligible consumers will receive notice from VW after the orders are entered by the court this fall. Consumers will be able to see if they are eligible for compensation and if so, what options are available to them, at VWCourtSettlement.com and AudiCourtSettlement.com. They will also be able to use these websites to make claims, sign up for appointments at their local Volkswagen or Audi dealers and receive updates. Consumer payments will not be available until the settlements take effect if and when approved by the court, which may be as early as October 2016.
Emissions Reduction Program: The settlement of the company’s Clean Air Act violations also requires Volkswagen to pay $2.7 billion to fund projects across the country that will reduce emissions of NOx where the 2.0 liter vehicles were, are or will be operated. Volkswagen will place the funds into a mitigation trust over three years, which will be administered by an independent trustee. Beneficiaries, which may include states, Puerto Rico, the District of Columbia, and Indian tribes, may obtain funds for designated NOx reduction projects upon application to the Trustee. Funding for the designated projects is expected to fully mitigate the NOx these 2.0 liter vehicles have and will emit in excess of EPA and California standards.
The emissions reduction program will help reduce NOx pollution that contributes to the formation of harmful smog and soot, exposure to which is linked to a number of respiratory- and cardiovascular-related health effects as well as premature death. Children, older adults, people who are active outdoors (including outdoor workers), and people with heart or lung disease are particularly at risk for health effects related to smog or soot exposure. NO2 formed by NOx emissions can aggravate respiratory diseases, particularly asthma, and may also contribute to asthma development in children.
Zero Emissions Technology Investments: The Clean Air Act settlement also requires VW to invest $2 billion toward improving infrastructure, access and education to support and advance zero emission vehicles. The investments will be made over 10 years, with $1.2 billion directed toward a national EPA-approved investment plan and $800 million directed toward a California-specific investment plan that will be approved by CARB. As part of developing the national plan, Volkswagen will solicit and consider input from interested states, cities, Indian tribes and federal agencies. This investment is intended to address the adverse environmental impacts from consumers’ purchases of the 2.0 liter vehicles, which the governments contend were purchased under the mistaken belief that they were lower emitting vehicles.
FTC’s Injunctive Relief: The FTC settlement includes injunctive provisions to protect consumers from deceptive claims in the future. These provisions prohibit Volkswagen from making any misrepresentations that would deceive consumers about the environmental benefits or value of its vehicles or services, and the order specifically bans VW from employing any device that could be used to cheat on emissions tests.
The provisions of the U.S./California settlement are contained in a proposed consent decree filed today in the U.S. District Court for the Northern District of California, as part of the ongoing multi-district litigation, and will be subject to public comment period of 30 days, which will be announced in the Federal Register in the coming days. The provisions of the FTC settlement are contained in a proposed Stipulated Final Federal Court Order filed today in the same court.
To view the consent decree, visit: www.justice.gov/enrd/consent-decrees
To view the FTC proposed order, visit: https://www.ftc.gov/enforcement/cases-proceedings/162-3006/volkswagen-group-america-inc.
Consumer Fact Sheet
VW Partial 2L CD and Appendices
VW Notice of Lodging
U.S. Attorney Issues Second Statement on Twin Falls Assault CaseRead the Press Release
U.S. Attorney Wendy J. Olson issues the following statement:
“Many in the press, public and online bloggers are misinterpreting the statement I issued on Friday, June 24, 2016, in support of the five-year-old victim of an assault in Twin Falls, Idaho, and in support of the law enforcement authorities there who are prosecuting the case. The statement was not intended to and does not threaten to arrest or prosecute anyone for First Amendment protected speech.
I issued the statement because public officials in Twin Falls have received threats. Certain threatening or harassing communications may violate federal law and will be investigated. I am also concerned that intentionally false and inflammatory rumors are creating an unsafe environment in Twin Falls. In this case, it appears that the threats have resulted from false and inflammatory information spread about this crime, often times by those from outside of the community. I encourage all to be patient while the juvenile justice system works. I also encourage all to support this victim and her family.”
U.S. Attorney Charges Camp Counselor with Sexual Exploitation of MinorRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), announced today the arrest of MICHAEL BRYANT MARIN. MARIN is charged with communicating with an underage victim online and convincing her to take and send sexually explicit photographs and videos to MARIN online. MARIN was arrested this morning and presented today before U.S. Magistrate Judge Lisa Margaret Smith in White Plains federal court.
Manhattan U.S. Attorney Preet Bharara said: “Michael Marin’s alleged crimes are the nightmare of every parent. Using an easily accessible instant messaging application, Marin allegedly terrorized a middle-school student in her home and her school with threats to humiliate her if she refused his demands for sexually explicit photographs and videos. We will continue to do everything we can, with our partners at the FBI, to investigate and prosecute those who sexually exploit children.”
FBI Assistant Director Diego Rodriguez said: “Most teenagers are excited about summer and vacation, but as alleged, the victim in this case, and others we may not know about yet, are overcoming an atrocious ordeal no young child should ever have to experience. Parents need to talk with their children about being safe online, and making sure they know the minute anyone approaches them in a deviant way, they should immediately contact a trusted adult. We are also asking anyone who may have been contacted by the subject in this case to contact the FBI.”
According to the Complaint[1] unsealed today in White Plains federal court:
In or about March 2016, MARIN communicated online via Kik and through text messages with a 13-year-old minor female (“Victim-1”) in New Mexico, and convinced Victim-1 to take and send sexually explicit photographs and videos of herself to MARIN.
During his communications with Victim-1, MARIN utilized the screen name “mike___2016,” as well as another account associated with the phone number 914-920-1974. Further, while communicating with Victim-1, MARIN posed as a minor and threatened Victim-1 that if she did not send additional photos and/or videos, he would publicly post the photos and/or videos she had already sent to MARIN on social media sites such as Facebook, Twitter, and Instagram. MARIN also demanded that Victim-1 act as his “slave,” first attempting to pay Victim-1 and then threatening to post nude photos and videos of Victim-1 if she did not send him the specific photos and/or videos MARIN requested whenever he requested them. As part of this demand, MARIN instructed Victim-1 to photograph and film herself engaging in a number of sexually explicit acts, including bestiality with a pet cat and taking nude photos of herself in her school bathroom.
According to statements made during MARIN’s presentment this afternoon, MARIN is currently employed as a camp counselor in Greenwich, Connecticut.
There may be more victims of this alleged conduct. If you have information to report, contact the Federal Bureau of Investigation’s White Plains Resident Agency at 914-989-6000.
* * *
MARIN, 18, of Port Chester, New York, is charged with one count of sexual exploitation of a minor, which carries a minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the efforts of the Federal Bureau of Investigation, the Santa Fe County Sherriff’s Office, and the Santa Fe City Police Department in connection with this investigation. He added that the investigation is ongoing.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Maurene Comey is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two New York Residents Indicted on Charges Related to Theft of Firearms from Pennsylvania Gun StoresRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ben McCormack, age 31, Jamestown, New York and Jason William Thorne, age 36, also from New York, were indicted by a federal grand jury in Scranton in connection with a series of break-ins at federally-licensed gun stores in North Central Pennsylvania within the past month.
According to U.S. Attorney Peter Smith, McCormack and Thorne are charged with conspiracy to steal and unlawfully possess firearms from the inventories of licensed gun stores. On or about May 29, 2016, McCormack and an unindicted co-conspirator allegedly broke into Arrowhead Outdoors, a gun store in Tionesta, Pennsylvania and stole approximately 28 firearms. On or about June 17, 2016, McCormack and Thorne allegedly stole approximately 36 firearms from GNR Sporting Goods in Mansfield. On or about June 20, 2016, McCormack and an unindicted co-conspirator allegedly broke into and stole approximately 29 firearms from Fulmer’s Sporting Goods in Wysox Township.
In separate counts of the indictment McCormack and Thorne are charged individually with possession of stolen firearms and possession of firearms by a convicted felon.
Agents from Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) took McCormack into custody in New York on June 21, 2016. After an initial hearing before a U.S. Magistrate Judge in Buffalo, New York, McCormack was ordered to be transported to the Middle District of Pennsylvania for further proceedings. A criminal complaint was issued on June 21, 2016 by U.S. Magistrate Judge Joseph F. Saporito, Jr. in the Middle District of Pennsylvania charging that McCormack with alleged possession of stolen firearms and for illegal possession of firearms by a convicted felon. Thorne is presently in custody in New York on state charges.
The investigation by ATF is continuing in cooperation with the United States Attorney’s Offices in the Western District of New York and the Western District of Pennsylvania. At the present time, approximately 55 of the stolen firearms have been recovered by investigators.
“Gun thieves are a principal source of weapons that make their way into the hands of criminals. Stolen guns are quickly dispensed through underground transactions and the cycle of violence is initiated,” said ATF Special Agent in Charge Sam Rabadi. “I commend the diligent work of the investigators from ATF, the Pennsylvania State Police, and the Jamestown Police Department in New York, in this ongoing, wide-ranging and multi-jurisdictional investigation. Their outstanding investigative efforts led to the recovery of at least 55 of the stolen firearms that were destined for our communities and led to the swift identifications and arrests of those involved in these gun store burglaries.”
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, and the Jamestown, New York Police Department. The case is being prosecuted by Assistant U.S. Attorneys George Rocktashel and John Gurganus.
Anyone having information regarding the gun store burglaries should call the ATF 24/7 hotline at 1-888-ATF-TIPS (1-888-283-8477) or email: [email protected]
Indictments and Criminal Complaints are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
McCormack faces a maximum penalty of 55 years of imprisonment, and Thorne faces a maximum penalty of 35 years of imprisonment. Both also face a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Federal Inmates Indicted on Homemade Weapons ChargesRead the Press Release
SCRANTON-The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a federal grand jury in Scranton today indicted two inmates at the Schuylkill Federal Correctional Institution for illegal possession of homemade weapons in two separate cases.
According to United States Attorney Peter Smith, inmate Michael Thompson, age 30, was charged with possession of a homemade sharpened weapon known as a “shank” in January of 2016. Inmate James Bailey-Snyder, age 23, was charged for a similar offense which occurred in August 2015.
If convicted, the maximum sentence for both defendants is a sentence of up to five years and a fine in the amount of $250,000.
The investigations were conducted by the FBI. The cases are assigned to Assistant United States Attorney Todd K. Hinkley.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Convicted of Crack Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey or Chris Ruge
Assistant United States Attorneys
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jermaine Mitchell, a/k/a “Mello”, 44, formerly of New Haven, Connecticut and Akeen Ocean, a/k/a “A”, “Alex”, 42, of Bangor, were convicted yesterday in U.S. District Court following a six-day jury trial of conspiracy to distribute and possess with the intent to distribute 280 grams of cocaine base, commonly referred to as “crack.”
The trial evidence revealed that between January 2010 and August 2013, the defendants were part of a conspiracy that acquired crack cocaine in New Haven and brought it into the Bangor area where it was distributed through a network of New Haven dealers staying in the Bangor area and local residents. Proceeds of the sales were transported back to New Haven and used to purchase, among other things, more crack cocaine to send to Bangor.
Mitchell faces between ten years and life in prison and a $10,000,000 fine. Ocean faces up to 20 years in prison and a $1,000,000 fine. They will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. They are the final two defendants charged in an eleven defendant indictment returned in February 2015.
The case was investigated by the Maine Drug Enforcement Agency; the New Haven Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the New Haven Police Department. Assistant U.S. Attorneys Robert Spector and Peter Markle of the U.S. Attorney’s Office for the District of Connecticut also assisted in the investigation and prosecution of this case.
Two Chicago women plead guilty to credit card fraudRead the Press Release
CHARLESTON, W.Va. – Two Chicago women pleaded guilty today to credit card fraud, announced Acting United States Attorney Carol Casto. Christine Johnson, 26, and Stephanie Stevenson, 27, both entered guilty pleas to possession of 15 or more counterfeit access devices. A counterfeit access device is a credit card that has been altered so that it contains stolen information that has been re-encoded on the magnetic strip on the back of the card.
Johnson and Stevenson both admitted that they, along with two other codefendants, Wynesha Wilson-Robinson and Crystal Merritt, possessed over 100 counterfeit access devices. Johnson and Stevenson drove from Chicago to West Virginia in an attempt to use these counterfeit credit cards. On June 5, 2015, the women were observed at the South Charleston Target and Walmart attempting to use the counterfeit cards, and store employees alerted law enforcement to the suspicious behavior.
Johnson and Stevenson each face up to 10 years in federal prison and a $250,000 fine when they are sentenced on October 3, 2016.
The South Charleston Police Department and the United States Secret Service conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecutions. The plea hearings were held before United States District Judge John T. Copenhaver, Jr.
Wynesha Wilson-Robinson, 27, of Chicago, previously pleaded guilty in April 2016 to credit card fraud and is scheduled to be sentenced on August 11, 2016. The fourth codefendant, Crystal Merritt, 29, also of Chicago, is scheduled for a plea hearing on August 4, 2016. All of the defendants are presumed innocent unless and until they are proven guilty in a court of law.
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Three New Haven Men Charged with Distributing Drugs Involved in Spate of OverdosesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, and New Haven Police Chief Dean Esserman today announced that an investigation into numerous drug overdoses, including three overdose deaths, last week in New Haven has resulted in federal narcotics distribution charges against three New Haven residents. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
FRANK PINA, 57, and JEROME CLAY, SR., 55, were arrested yesterday on federal criminal complaints charging each with possession with intent to distribute, and distribution of, controlled substances, and conspiracy to distribute controlled substances. STEVEN WHALEY, 48, was arrested yesterday on a federal criminal complaint charging him with possession with intent to distribute, and distribution of, controlled substances.
The three defendants appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and are detained.
As alleged in court documents and statements made in court, the Drug Enforcement Administration and New Haven Police Department are investigating the drug overdoses of 17 individuals that occurred in New Haven on June 23, 2016. Three of the victims died, and four victims remain hospitalized.
The investigation has revealed that many or all of the victims believed the substance they were consuming was cocaine. However, based in part on DEA laboratory testing, it appears that the substance was pure fentanyl, a powerful opioid that can be at least 50 times more powerful than heroin. Naloxone, an emergency drug used to treat opioid overdoses, was effective in treating at least some of the victims, which indicates that the ingested substance was an opioid and not cocaine. Analysis of the substance involved in the overdoses is not yet completed.
It is alleged that PINA, CLAY and WHALEY supplied drugs to at least 12 of the individuals who overdosed on June 23, 2016, including at least two victims who died.
“Without the combined effort of federal and local law enforcement, emergency medical personnel and city officials, a terrible public health crisis could have been much worse,” said U.S. Attorney Daly. “We promised that we would act swiftly and that is exactly what our DEA agents, New Haven Police officers and federal prosecutors have done. I thank our partners at the DEA, particularly members of its Tactical Diversion Squad, and the New Haven Police Department for their excellent work in quickly and expertly tracking down the source of these deadly drugs. Now it is our job to bring those responsible for these overdoses to justice.”
“Anytime there is a loss of life involving a drug overdose it is a tragic event; but even more so in this case given the number of victims in less than one day,” said Special Agent in Charge Ferguson. “Those suffering from the disease of fentanyl and heroin addiction need access to treatment and recovery. But, those responsible for distributing these lethal drugs like fentanyl and purporting it to be cocaine to the citizens of New Haven need to be held accountable for their actions. In response to the ongoing opioid epidemic DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison.”
“New Haven Police detectives and the Criminal Intelligence Unit worked flat out from Thursday afternoon through this weekend to save New Haven lives and track down the individuals responsible for dealing these drugs,” said Chief Esserman. “I could not be more proud of them. I am just as grateful to our federal partners for working side by side with us. We came together in a time of emergency and stopped the dying.”
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the New Haven Police Department. The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Middlebury Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Douglas P. Morabito.
Three Men Indicted on Conspiracy to Distribute Ecstasy and MollyRead 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 a grand jury has returned a 14 count indictment charging Richard Clarke, 47, a Canadian citizen residing in Buffalo, Barrett Johnson, 32, of Jamestown, NY, and Joshua Castro, 31, of Buffalo, NY, with conspiracy to distribute controlled substances. The charge carries a maximum penalty of 20 years in prison and a fine of $1,000,000. In addition, Castro is charged with possession with intent to distribute controlled substances which is also punishable by 20 years in prison.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the indictment and a previously filed complaint again defendants Clarke and Johnson, the investigation began in February of 2015. Clarke was identified through surveillance as the supplier of MDA and MDMA, also known as ecstasy or molly, to Johnson over a 10-month period. On January 28, 2016, law enforcement officers established surveillance at Clarke’s Nottingham Terrace residence in Buffalo and Johnson’s business, Iconz Barbershop on Hertel Avenue in Buffalo. Officers trailed Clarke and Johnson to Elmwood Avenue where they observed Johnson approaching Clarke’s vehicle and the two exchanged what appeared to be a blue colored bottle.
Subsequently, officers executed a search warrant at Iconz Barbershop where Johnson was arrested. At the time of the arrest, the defendant threw all of the items in his hands to the ground including a blue Pepsi cup which contained a substance similar to molly.
During the execution of a search warrant at Clarke’s Nottingham Terrance residence, officers seized specific amounts of powder molly and ecstasy pills as well as approximately $13,000 in cash.
The defendants were arraigned before U.S. Magistrate Judge H. Kenneth Schroeder and were release on conditions.
The indictment is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Border Enforcement Security Taskforce which includes the Ontario Provincial Police, Niagara Regional Police, Peel Regional Police and Toronto Police Services.
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.
Three Charged in Conspiracy to Distribute Controlled Substances in Western PennsylvaniaRead the Press Release
PITTSBURGH - Two Pittsburgh residents and a Michigan man have been indicted by a federal grand jury in Pittsburgh on charge of conspiracy to distribute oxycodone and oxymorphone, United States Attorney David J. Hickton announced today.
The one-count indictment named William Richardson, 55, and Nicole Miller, 29, both of Pittsburgh, Pennsylvania, and Kavon Dawkins, 23, of Clinton Township, Michigan.
According to indictment, between March and May of 2016, Richardson, Miller and Dawkins conspired to possess with the intent to distribute and to distribute quantities of oxycodone and oxymorphone, also known as ‘Opana,’ schedule II controlled substances, in the Western District of Pennsylvania.
The law provides for a maximum total sentence of up to 30 years in prison, a fine of up to $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
This prosecution is the result of a federal Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Office of the Attorney General, the Pittsburgh Bureau of Police, the New Castle Police Department and the Allegheny County Police Department.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Charged with Heroin Conspiracy Resulting in Death of Overdose VictimRead the Press Release
CHATTANOOGA, Tenn. – On June 28, 2016, a federal grand jury returned a superseding indictment charging Darius Jermaine Blakemore, a.k.a. Tank, 27, of Chattanooga, Tenn., Joshua Corbett, 27, currently of Chattanooga, Tenn., and Jessica Rachels, 25, currently of Chattanooga, Tenn., with conspiracy to distribute heroin resulting in the death of another individual (victim) from his use of that heroin. The three were also each charged with distributing heroin resulting in the death of the victim from his use of that heroin.
Blakemore was charged individually with possession with intent to distribute cocaine, possession with intent to distribute cocaine base “crack,” possession with intent to distribute heroin, and possession of a firearm in furtherance of a drug trafficking crime. He was also charged with possession of a firearm as a convicted felon. More information regarding these charges can be found in the superseding indictment on file with the U.S. District Court in Chattanooga.
In February 2016, the victim was found dead at his residence in Red Bank, Tenn. The superseding indictment alleges that he died from a heroin overdose.
If convicted as charged, Blakemore faces a mandatory minimum sentence of 25 years up to a statutory maximum sentence of life in prison. Corbett faces a mandatory minimum sentence of 20 years up to a statutory maximum of life in prison. Rachels faces a mandatory minimum sentence of 20 years up to a statutory maximum sentence of life in prison.
Law enforcement agencies participating in the joint investigation include the Drug Enforcement Administration, Hamilton County Sheriff’s Office, Chattanooga Police Department, Red Bank Police Department, Tennessee Bureau of Investigation and Tennessee Highway Patrol. Assistant U.S. Attorney Michael D. Porter represents the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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South Carolina Man Sentenced to More Than 11 Years on Drug ChargesRead the Press Release
ASHEVILLE, N.C. –U.S. District Judge Martin Reidinger sentenced Cody Wayne Thomas, 25, of Cowpens, S.C., to 135 months in prison on federal drug charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Thomas was also ordered to serve five years under court supervision following his prison term.
According to filed court documents and today’s sentencing hearing, on October 20, 2015, an officer with the Cleveland County Sheriff’s Office observed Thomas’s vehicle parked in the parking lot of a convenience store. Court records show that the officer approached the vehicle and awakened Thomas who was asleep in the driver’s seat. According to court records, the officer observed an assault-style riffle located on the back seat of Thomas’s car, a second firearm in a cubby hole near the vehicle’s dashboard, and small bags containing a crystal substance later determined to be approximately eight ounces of methamphetamine. According to court records, Thomas was previously convicted of first degree burglary in South Carolina and is prohibited from possessing firearms. Thomas pleaded guilty in March 2016 to one count of possession with intent to distribute methamphetamine.
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In a separate case, Judge Reidinger also sentenced today Dallas Travolta McBride, 37, of Asheville, to 40 months in prison and three years of supervised release. According to court records, from on or about January 2015 to May 2015, McBride engaged in multiple drug sales of crack cocaine in the Asheville area. According to court records, when law enforcement arrested McBride, they recovered marijuana, $2,090 in cash, and a handgun hidden under the driver’s seat of McBride’s vehicle. In a separate incident, McBride was later arrested after being found in possession of another handgun. According to court records, McBride was previously convicted in North Carolina of attempted robbery with a dangerous weapon, second degree burglary, and assault with a deadly weapon inflicting serious bodily injury and is prohibited from possessing firearms. McBride pleaded guilty in December 2015 to one count of possession of a firearm by convicted felon.
In making today’s announcement, U.S. Attorney Rose thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), and the Cleveland County Sheriff’s Office for handling Thomas’s investigation. Rose also thanked the FBI and the Asheville Police Department for their investigation into McBride.
Assistant United States Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted both cases.
Smithville Man Sentenced for Internet Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Smithville, Mo., man was sentenced in federal court today for receiving child pornography over the Internet.
Jacob A. Arnold, 20, of Smithville, was sentenced by U.S. Chief District Judge Greg Kays to 12 years in federal prison without parole. The court also sentenced Arnold to supervised release for the rest of his life following incarceration. The federal sentence will be served concurrently with Arnold’s 15-year sentence for child molestation in Clay County, Mo.
Arnold, who pleaded guilty on Oct. 22, 2015, admitted that he received child pornography over the Internet on March 17, 2015. According to court documents, Arnold was on bond for the state child molestation charge at the time he committed the federal offense.
On April 29, 2015, the Western Missouri Cyber Crimes (WMCC) Task Force received a cybertip from the National Center for Missing and Exploited Children regarding a video of child pornography that had been uploaded from Arnold’s computer to a DropBox account. On June 4, 2015, members of the WMCC Task Force and officers of the Smithville Police Department executed a state search warrant at Arnold’s residence. Officers seized computers, cameras, digital storage devices and a cell phone.
Child pornography was located on each of the items seized from Arnold’s residence, which must be forfeited to the government. Approximately 170 videos and 1,600 images of child pornography were located on the seized items. The images and videos included graphic depictions of sexual acts by adults against children as young as three years of age. Investigators also discovered a photo of a 7-year-old boy Arnold had been charged in state court with molesting, one of three prepubescent boys who accused Arnold of molesting them.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the Western Missouri Cyber Crimes Task Force and the Smithville, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Silver Spring Man Admits Throwing Molotov Cocktails at Residence in Upper MarlboroRead the Press Release
Greenbelt, Maryland – Damien Travis Boddy, age 35, of Silver Spring, Maryland, pleaded guilty today to possession of an unregistered firearm and to transportation of explosive material with the intent to injure, kill or intimidate.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County Fire/EMS Chief Marc S. Bashoor.
According to his plea agreement, in the early morning hours of October 19, 2014, Boddy drove to a gas station in Upper Marlboro, Maryland and filled several empty beer bottles with gasoline. Boddy placed the bottles in his car and drove to a residence in Upper Marlboro. Using protective gloves and a lighter, Boddy set fire to at least two of the bottles filled with gasoline and threw the lit bottles at the residence. The lit bottles, which qualify as explosives, struck a window on the first floor and ignited a small fire on the exterior of the residence. The bottles did not penetrate to the interior of the residence and the fire was confined to the exterior of the window and shrubbery. Members of the Prince George’s County Fire Department responded and extinguished the fire. Fire investigators subsequently recovered the remnants of one of the gas filled beer bottles near the residence, gas residue on the window, and an intact gas-filled beer bottle on the sidewalk adjacent to the residence.
Members of the Prince George’s County Police Department encountered Boddy in his vehicle a short distance from the residence. Officers discovered a beer bottle filled with gasoline in the vehicle’s cup holder, a lighter, protective gloves and paperwork from the gas station where Boddy filled the beer bottles.
Boddy knew the owner of the residence and in previous years had set fire to a car parked at the victim’s residence, and had contacted the victim’s employer and threatened to kill the victim.
Boddy and the government have agreed that if the Court accepts the plea agreement Boddy will be sentenced to between 10 and 20 years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for October 3, 2016 at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County Fire/EMS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Daniel C. Gardner, Michael T. Packard, and Erin B. Pulice, who are prosecuting the case.
Rock Springs Resident Convicted of Tax Evasion and Misuse of a Social Security NumberRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on June 27, a jury convicted Jaime Nieto, age 53, of Rock Springs on charges of tax evasion and misuse of a social security number.
The evidence at trial showed that Jaime Nieto unlawfully concealed assets available to pay his tax debt by opening and maintaining bank accounts using a social security number which did not belong to him and by using his business checking account, which the IRS could not levy to collect his personal tax debt, for all of his personal expenses.
Sentencing is scheduled for September 5, 2016, before Chief United States District Judge Nancy D. Freudenthal. Jaime Nieto faces a maximum penalty for tax evasion of five years in prison and a $100,000 fine. Nieto faces a maximum penalty for misuse of a social security number of five years in prison and a $250,000 fine.
The case was investigated by special agents from the Cheyenne office of IRS Criminal Investigation and prosecuted by the United States Attorney’s Office for the District of Wyoming.
Roanoke Man Sentenced on Federal Firearm ChargeRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of a Roanoke man who previously pled guilty to a federal firearms charge.
Pierce Yarnell Brown, 38, of Roanoke, Va., pled guilty in March to one count of being a previously convicted felon illegally in possession of a firearm. Yesterday in the United States District Court for the Western District of Virginia in Roanoke, Brown was sentenced to 180 months in federal prison.
“We continue to be committed to taking illegal guns out of the hands of prohibited users like Mr. Brown and off our streets,” United States Attorney John P. Fishwick Jr. said today. “In order to keep our communities safe, we must rid them of illegal firearms and those who possess them.”
The investigation of the case was conducted by the Roanoke City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Rhode Island Woman Sentenced for Massive Immigration ScamRead the Press Release
BOSTON – A Woonsocket, R.I. woman was sentenced yesterday in U.S. District Court in Worcester in connection with a scheme that defrauded dozens of Hispanic immigrants of over $700,000.
“Sadly, undocumented immigrants frequently fall victim to immigration scams such as this one because unscrupulous criminals believe the victims will not report the crime to authorities,” said United States Attorney Carmen M. Ortiz. “Yesterday’s sentence affirms that those who prey upon the vulnerabilities of undocumented immigrants will be prosecuted. Furthermore, it sends a message to immigrant communities that the laws in this country are in place to protect everyone regardless of immigration status.”
Patria Zuniga, 53, was sentenced by U.S. District Court Judge Timothy S. Hillman to 78 months in prison, three years of supervised release and ordered to pay restitution of $713,850. In January 2016, Zuniga pleaded guilty to eight counts of wire fraud.
From 2009 through 2012, Zuniga targeted immigrant victims presenting herself as either an immigration attorney or an employee of U.S. immigration authorities. Zuniga told her victims that she could assist them in lawfully obtaining permanent resident immigration status. The victims typically had no lawful status or temporary legal status in the United States. Zuniga’s services were offered for $8,000 to $14,000; however, after the victims made the payments, Zuniga extorted additional funds by, among other things, threatening to have them deported if they refused to pay. Victim payments were initially made in cash, but later in the scheme Zuniga accepted money via cash deposits made directly into designated bank accounts (including accounts owned by her daughters), money orders, and bank and Western Union wire transfers. In total, victims paid more $700,000 over the course of the three-year fraud scheme.
In furtherance of her scheme, Zuniga employed a variety of tools to create the appearance of legitimacy in front of the victims. For example, in order to prove that she could in fact deliver the promised immigration benefits, Zuniga showed her victims photocopies of immigration documents with their names and photographs on them, which she had forged. Zuniga also routinely arranged for victims to travel to the U.S. Citizenship and Immigration Offices in Boston purportedly to take receipt of the immigration documents. Upon arrival, victims waited for hours only to have Zuniga contact them and cancel the non-existent appointment.
During yesterday’s sentencing hearing, 17 of Zuniga’s victims addressed the Court directly – detailing the toll Zuniga’s fraud, extortion, and threats had on their lives. Many victims reported how, in the face of Zuniga’s threats of deportation, they handed over all the money they had and even borrowed money in order to make the payments to her. As he announced the sentence, Judge Hillman remarked that Zuniga had “deliberately and systematically preyed on vulnerable victims[,]” for whom she showed no remorse.
Zuniga’s daughters, Alba Peña and Indranis Rocheford, have also been charged in connection with the fraud. They are scheduled for trial in August 2016. United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. The case was prosecuted by Assistant U.S. Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.