Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 10 May 2016
Greenwood Men Plead Guilty to Mortgage Fraud ConspiracyRead the Press Release
Contact Person: Bill Watkings (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that John D. Harrison, Jr., age 53, Henry A. Dorn, age 63, Kevin Dempsey, age 45, and C. Jody Hazel, age 42, all of Greenwood , pled guilty today in federal court in Greenville, to conspiracy to commit bank fraud, a violation of Title 18, United States Code, Section 1349. United States District Judge Bruce Howe Hendricks, of Charleston accepted the pleas and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that John Harrison was a real estate developer who developed high end residential properties in North Carolina, South Carolina and Georgia. Henry Dorn, Kevin Dempsey and Jody Hazel were accountants for the accounting firm that prepared Harrison’s financial statements and tax returns. Dorn primarily serviced Harrison’s account. Harrison obtained loans from numerous banks and individuals to fund his real estate developments. A review of Harrison’s financial statements that were provided to banks from August 31, 2000 until May 31, 2008, indicated that Harrison significantly understated his total debt—that is, the financial statements contained false information and this false information was material to the lenders and was meant to influence the actions of the lenders. Dorn prepared these financial statements for Harrison. In essence, Dorn kept two sets of books for Harrison: one with false numbers and one with accurate numbers.
Harrison also entered into Accommodation Borrowing Agreements with Dorn, Dempsey and Hazel in which these three men served as straw purchasers for Harrison. The agreements allow for Harrison to sell the property to Dorn, Dempsey and Hazel and continue to develop and sell the properties. The interest payments would be paid by Harrison and the loans would be paid off when Harrison sold the property. The profit or loss would belong to Harrison and Harrison would pay a fee to Dorn, Dempsey or Hazel totaling 3% of the loan amount. The agreements were not disclosed to the banks until after the loans went past due.
In addition to the undisclosed agreements, Dorn, Dempsey and Hazel all understated their debt when applying for their respective real estate loans—that is, the financial statements contained false information. Law enforcement estimates that federally insured banks lost in excess of $10 million in scheme and artifice to defraud.
Mr. Nettles stated the maximum penalty the Defendants can receive is a fine of $1,000,000 and/or imprisonment for 30 years, plus a special assessment of $100.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
####
Galax Man Pleads Guilty to Methamphetamine Conspiracy ChargeRead the Press Release
ROANOKE, VIRGINIA – A Galax man pled guilty today to Federal drug trafficking charges, United States Attorney John P. Fishwick Jr. announced.
Sylvester Monroe Jackson, 42, of Galax, Virginia, pled guilty today in the United States District Court for the Western District of Virginia in Roanoke to one count of conspiracy to distribute 500 grams or more of methamphetamine.
“Methamphetamine continues to be a priority for law enforcement throughout Virginia,” United States Attorney John P. Fishwick Jr. said today. “We will continue to do all we can to get this dangerous drug out of our communities.”
At sentencing, Jackson faces a mandatory minimum sentence of 10 years in prison and a maximum statutory sentence of life in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Galax Police Department, the Carroll County Sheriff’s Office, the Grayson County Sheriff’s Office and the Wythe County Sheriff’s Office. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Former Santa Claus & Magician for Kid’s Parties Charged with the Manufacturing of Child Pornography Pleads GuiltyRead the Press Release
WILMINGTON – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday, LEANDER DEWEY JONES, 64, of Raleigh, North Carolina, pled guilty before Senior United States District Judge James C. Fox, to one count of manufacturing child pornography (CP).
JONES, who was employed as a Santa Claus and magician for kids’ parties, was discovered producing CP of his two grandchildren while in his care. On May 29, 2015, Jones brought his desktop computer in for repair to a store in Raleigh, and while examining the computer hard drive for viruses and malware, a computer technician located a folder containing CP. He alerted the store owner who in turn contacted the Raleigh Police Department regarding the CP.
A state search warrant was obtained and a subsequent computer forensics examination of items seized from JONES revealed approximately 4,000 images of CP on the computer and external hard drives. Further, on the CDs and floppy discs, revealed approximately 1,000 images of CP.
At sentencing, scheduled for the court’s August 1, 2016 term, JONES faces up to 30 years imprisonment.
The criminal investigation of this case was conducted by the Raleigh Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Former Police Department Employee Sentenced for Computer Intrusion in Connection with Stolen Identity Refund FraudRead the Press Release
Tampa, FL – U.S. District Judge Virginia Hernandez Covington has sentenced Tonia Bright (53, Tampa) to two years in federal prison for obtaining information from a protected computer for a fraudulent purpose. The Court also ordered her to forfeit $29,057 and to pay restitution totaling $166,026, which are the proceeds traceable to the offenses.
According to court documents, Bright was a civilian employee of the Tampa Police Department and worked as a community service officer. As part of her authorized duties, Bright took reports from citizens related to incidents not requiring the response of a sworn police officer. In this capacity, she had access to local, state, and federal law enforcement databases, including the National Crime Information Center (NCIC) computerized index that contains the personally identifiable information (PII) of millions of individuals. Bright’s use of these databases was restricted to the performance of her authorized duties.
Between 2009 and 2014, Bright accessed NCIC and other password-protected law enforcement databases to obtain PII, and then provided it to her friend, Rita Monique Girven, on at least ten occasions. for the purpose of Girven then used the information to file filing fraudulent federal income tax returns and claim refunds to which she was not entitled. When Girven received the fraudulently obtained refunds, she shared some of the proceeds with Bright.
Girven previously pleaded guilty in a separate case. On November 20, 2015, she was sentenced to 12 years in federal prison.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Tampa Police Department, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Former Phoenix Chiropractor Sentenced to Prison for Wire FraudRead the Press Release
PHOENIX, Ariz. – On May 9, 2016, Dr. Randal Curtis Pruitt, 44, of Salt Lake City, Utah, was sentenced by U.S. District Judge Diane J. Humetewa to 18 months in prison. Pruitt was also ordered to pay $478,549 in restitution and perform 100 hours of community service while serving a three-year term of supervised release upon release from prison. Pruitt had previously pleaded guilty to two counts of wire fraud.
“Patients seeking medical treatment expect the utmost discretion from health care professionals, who are persons they entrust with some of their most personal information. Dr. Pruitt abused his special position of trust and today was appropriately held accountable for his conduct,” stated United States Attorney John S. Leonardo.
Pruitt, while operating the Arizona Back Institute in Phoenix in 2010 and 2011, defrauded Synchrony Bank (formerly GE Money Bank) and JP Morgan Chase by assuming the identity of 56 patients and obtaining credit card accounts or lines of credit in their names. Once the credit accounts were obtained, Pruitt submitted false claims for services he had not performed or double billed for services for which he had already been paid. As part of his restitution, Pruitt was also ordered to repay 17 patients who had paid for services but did not receive them after he closed his practice. Pruitt’s license was previously revoked by the Arizona Board of Chiropractic Examiners. At sentencing, Judge Humetewa noted that Pruitt has yet to repay any of his creditors or patients.
The investigation in this case was conducted by the Federal Bureau of Investigation with assistance from the Phoenix Police Department. The prosecution was handled by Frederick A. Battista, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-838-01-PHX-DJH
RELEASE NUMBER: 2016-042_Pruitt
# # #
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.
Former Campaign Aide Sentenced for Making a False Statement in Federal Investigation Involving 2010 Mayoral CampaignRead the Press Release
WASHINGTON – Vernon Hawkins, who worked on an off-the-books get-out-the-vote effort preceding the 2010 District of Columbia mayoral primary, was sentenced today to six months of incarceration after earlier pleading guilty to making a false statement to federal authorities who were investigating allegations involving his candidate’s campaign.
The sentencing was announced by U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI Washington Field Office’s Criminal Division, and Thomas Jankowski, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Hawkins, 77, was a volunteer advisor for the mayoral candidate. He pled guilty on Aug. 13, 2013 in the U.S. District Court for the District of Columbia. In his plea, he admitted that he took part in a secret effort that channeled funding to his candidate. He also admitted that he later helped provide a potential witness with approximately $8,000 so that the witness would travel and stay out of town so that he would not be available to meet with federal agents investigating the campaign. Also, Hawkins admitted that, during a subsequent interview with the FBI, he stated that he did not know of anyone being asked or told to go out of town, that he never asked anyone to leave town so that they could not meet with investigators, and that he did not help or assist with sending anyone out of town so they would not be able to speak with federal agents in this investigation. He made these false statements in an attempt to influence the federal investigation.
He was sentenced by the Honorable Colleen Kollar-Kotelly. Following his incarceration, Hawkins will be placed on one year of supervised release.
Hawkins is among 13 people who pled guilty to charges in a broader investigation related to federal and local political campaigns, which uncovered evidence of over $3.3 million in illegal contributions to various campaigns between 2006 and 2011. He is among six defendants who pled guilty to offenses directly involving or connected to the 2010 District of Columbia mayoral election, which accounted for $668,800 of the illegal contributions.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate and Special Agent in Charge Jankowski commended the work of those who investigated the case for the FBI and IRS-CI. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Ellen Chubin Epstein, Criminal Investigators Mark Crawford and Melissa Matthews, and Paralegal Specialists Tasha Harris and Corinne Kleinman. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Michael K. Atkinson and Jonathan P. Hooks, who represented the government at sentencing.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Laurens Resident Charged with Theft of Government Funds
Tanesha Williams, age 31, of Laurens, South Carolina, was charged in a single-count indictment with theft of government funds, a violation of Title 18, United States Code, Section 641. The maximum penalty Williams could receive is ten years imprisonment and a fine of $250,000.00. The case was investigated by agents of the Social Security Administration, Office of Inspector General, and is assigned to Assistant United States Attorney David C. Stephens of the Greenville office for prosecution.Greenville Resident Indicted on Possession of Child Pornography
Christopher Taggart, age 55, of Fountain Inn, South Carolina, was charged in a 1-count indictment with Possession of Child Pornography, a violation of Title 18, United States Code, Section 2252A(a)(5)(B). The maximum penalty Taggart could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the United States Postal Inspection Service and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution. This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.Former Bed Bath & Beyond Assistant Manager Charged with Mail Fraud
Kelvin Abney, age 49, of Simpsonville, South Carolina, was charged in a 2-count indictment with Mail Fraud, a violation of Title 18, United States Code, Section 1341. The maximum penalty Abney could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the United States Postal Inspection Service and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.Director and Employee of Fresh Start Community Development Corporation (FSCDC) Indicted on Conspiracy and Monetary Transactions in Criminally Derived Property
Erick Bradshaw, Sr., age 40, and Augustina Cabral-Rice, age 61, both of Anderson, South Carolina, were charged in a 3-count indictment. Both defendants were charged with Conspiracy, a violation of Title 18, United States Code, Section 371, which carries a maximum penalty of 5 years imprisonment and a maximum fine of $250,000 and with Engaging in Monetary Transactions, a violation of Title 18, United States Code, Section 1957, which carries a maximum penalty of 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Federal Housing Finance Agency, Office of Inspector General; US Postal Inspection Service; Internal Revenue Service, Criminal Investigations; and the Anderson County Sheriff’s Office, and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
####
Federal Court Bars Tennessee Tax PreparerRead the Press Release
A federal court has barred a Nashville-area tax return preparer from preparing returns for others, the Justice Department announced today. The court’s injunction forbids LaVergne, Tennessee, resident Michelle Cole Theus, aka Michelle Cole, and Cole Tax Services from preparing federal tax returns or operating a return-preparation business. It also requires Theus to turn over a complete list of her customers to the government. Theus agreed to entry of the injunction without admitting or denying the factual allegations in the United States’ civil complaint.
According to the United States’ civil complaint in the case, Theus initially prepared accurate returns for her customers, then fraudulently increased the returns’ claimed refund—for example, by adding fictitious dependents or false education credits. Theus then caused the fraudulently inflated portion of the refund, or sometimes the entire refund, to be deposited to her own bank account, the complaint alleges. The Internal Revenue Service (IRS) estimates that Theus has claimed at least $788,220 in fraudulent refunds, according to the complaint.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Exeter Man Sentenced to 132 Months Imprisonment for Distributing Crack Cocaine at CasinoRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge Malachy Mannion sentenced Sekou Lashley, age 36, to 132 months’ imprisonment for distributing cocaine base (crack) at the Mohegan Sun Casino in Plains Township, Pennsylvania, on March 19, 2015. Judge Mannion found that Lashley qualified as a career offender, subject to enhanced penalties, after consideration of his extensive criminal history.
Lashley previously pleaded guilty to an indictment that charged him with the sale of four bags of crack cocaine to a confidential informant at the casino bar. Judge Mannion imposed a 120-month sentence for that offense. At the time, Lashley was serving a term of federal supervised release associated with a 2008 conviction, also in the Middle District of Pennsylvania, for conspiring to distribute and possess with intent to distribute more than a kilogram of heroin. Judge Mannion imposed a 12-month sentence for violating the terms of his supervised release, to run consecutive to the 120-month sentence. Lashley also was sentenced to a three-year term of supervised release, to commence at the conclusion of his term of imprisonment.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
# # #
Erie Man Charged with Violating Federal Bankruptcy LawsRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of violating federal bankruptcy laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Douglas A. Grooms, 45, as the sole defendant.
According to the indictment presented to the court, Grooms concealed property from the United States Bankruptcy Trustee in connection with his bankruptcy case.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dr. Wilcox Sentenced to 100 Months in Federal Prison for Distribution of Oxycodone ConvictionsRead the Press Release
SALT LAKE CITY – Dr. Simmon Lee Wilcox, age 60, of Las Vegas, who was found guilty in January of one count of conspiracy to distribute oxycodone and one count of distribution of oxycodone following a trial in U.S. District Court in Salt Lake City, will serve 100 months in federal prison.
U.S. District Judge Ted Stewart imposed the sentence Monday morning. Wilcox will be on supervised release for 36 months when he finishes his prison sentence. He will self-surrender to begin serving his prison sentence in August.
Evidence at the trial showed Dr. Wilcox wrote about 618 prescriptions resulting in the diversion of approximately 81,000 30-milligram oxycodone pills for non-medical purposes between July of 2010 and March of 2013. Dr. Wilcox wrote hundreds of prescriptions to people using false identifications that were filled at various pharmacies in Utah and Nevada. Those who filled the prescriptions and took possession of the oxycodone either sold it or used it personally.
Five co-conspirators in the case previously pleaded guilty to conspiracy to distribute oxycodone. Benjamin David Grisel, age 49, of Santa Clara, has been sentenced to 48 months in prison; Brenda Grisel, age 48, also of Santa Clara, will serve 12 months in prison. Jeron Scott Hales, age 40, of Hurricane, is serving a 32-month sentence and Jeremy Daniel Perkins, age 36, of Washington, was sentenced to time served. Randall David Ayrton, age 35, of St. George, is serving a 36-month sentenced. As a part of plea agreements reached with federal prosecutors, co-conspirators in the case admitted they conspired with Dr. Wilcox to use his medical license to write prescriptions for oxycodone pills. To facilitate the conspiracy, one of the co-conspirators created false identification documents for the group to use in filling the oxycodone prescriptions at various pharmacies.
The defendants in the case were charged in an indictment returned by a federal grand jury in October 2013 following an investigation by DEA drug diversion investigators.
In a sentencing memorandum filed in anticipation of Monday’s sentencing hearing, federal prosecutors highlight the tragic effects abuse of oxycodone is having throughout the United States. “Utah is not exempt from this tragedy. Just in the past week, the Utah Department of Health has noted that new data shows six people die each week in Utah as a result of overdosing on prescription opioids,” prosecutors noted in the memorandum.
“I have talked before about the heroin and opioid tsunami threatening Utah. In 2012, 31.71 pounds of heroin were seized in Utah. In 2014, that number grew to 244.04 pounds,” U.S. Attorney John W. Huber said today. “The 81,000 oxycodone pills that found their way into our communities through the 618 prescriptions Dr. Wilcox wrote are no different than a drug dealer selling heroin on the corner. In fact, these crimes are worse because they abuse the trust we place in physicians. To stop the wave we are seeing, we need to attack every angle of the heroin and opioid problem in our state,” Huber said.
“DEA takes its responsibility to prevent the distribution of dangerous and addictive drugs to those who do not have a medical reason to have them very seriously,” Acting DEA Assistant Special Agent in Charge John Eddington said today. “We are pleased with the sentence imposed on Dr. Wilcox today and believe it reflects the seriousness of the conduct involved in this case.”
Crawford County Man Charged with Receiving and Possessing Child PornographyRead the Press Release
ERIE, Pa. - A former resident of Crawford County, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
The two-count superseding indictment named Alan Thomas Rigby, 68, as the sole defendant.
According to the indictment presented to the court, Rigby possessed and received computer images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The law provides for a maximum total sentence of 60 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Connecticut Man Pleads Guilty to Bank Robberies in Rhode Island, Pennsylvania and ConnecticutRead the Press Release
SCRANTON, PA - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 5, 2015, David Sandy Lee Parks, age 60, of New Haven, Connecticut, pleaded guilty to six bank robberies, including two bank robberies in Rhode Island.
According to United States Attorney Peter Smith of the Middle District of Pennsylvania, in July 2015, a grand jury in Scranton returned a two-count Indictment alleging that Parks committed the armed robbery of the Peoples Security Bank, Duryea, Pa., on July 3, 2015, and the armed robbery of the Wells Fargo Bank, Plymouth, Pa., on July 10, 2015.
A subsequent Criminal Information charged Parks with four additional bank robberies:
-
the Savings Institute Bank & Trust, Westerly, Rhode Island, on February 20, 2015;
-
the Coastway Community Bank, Warwick, Rhode Island, on June 16, 2015;
-
the Citizen’s Bank, Stonington, Connecticut, on June 24, 2015; and
-
the First Niagara, Upper Macungie Township, PA, on July 17, 2015.
On May 5, 2016, Parks appeared before Senior United States District Court Judge Edwin M. Kosik in Federal Court in Scranton, Pa., and pleaded guilty to all six robberies.
Parks has been in custody since July 17, 2015, the day officers from the Upper Macungie Police Department arrested and charged him with the robbery of the First Niagara Bank which occurred earlier that day.
The case was jointly investigated by federal, state and local law enforcement agencies: the Federal Bureau of Investigation, Pennsylvania State Police, the Duryea, Plymouth Township, Upper Macungie, Pittston, Wilkes-Barre, Wilkes-Barre Township, Plains Township, Jenkins Township, West Pittston, Edwardsville, Warwick and Westerly, Rhode Island, Hanover, Kingston Police Departments, and the Luzerne County District Attorney’s Office. The prosecution was conducted and coordinated by Assistant United States Attorney John Gurganus.
###
-
Cohoes Man Charged with Child Pornography PossessionRead the Press Release
ALBANY, NEW YORK – George Muzio, Jr., age 34, of Cohoes, New York, was charged and arrested last week for possessing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations.
Muzio was charged with possession of child pornography by a criminal complaint filed on May 3, 2016. The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
If convicted on the possession charge, Muzio faces a maximum term of imprisonment of 10 years, a mandatory term of supervised release of 5 years and up to life, mandatory registration as a sex offender, and a maximum $250,000 fine.
Muzio appeared yesterday for a detention hearing before United States Magistrate Judge Daniel J. Stewart. Judge Stewart released Muzio to home confinement, with limited exceptions including for court appearances and work. Muzio must also wear an electronic location monitor.
This case is being investigated by Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Cincinnati Trio Sentenced to up to 25 Years for Armed RobberyRead the Press Release
CINCINNATI – Three Cincinnati men were sentenced in U.S. District Court yesterday for charges related to armed robbery.
Aaron Murray, 22, and Savoy Carpenter, 21 were each sentenced to 300 months in prison and James Crawford, 22, was sentenced to 54 months in prison.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, announced the sentences handed down by U.S. District Court Judge Susan J. Dlott.
The agencies involved in the investigation include:
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
Cincinnati Police Department
Colerain Police Department
Covington Police Department
Hamilton County Police Association SWAT
Hamilton County Prosecutor’s Office
Hamilton County Sheriff’s Office
Kenton County Sheriff’s Office
Sharonville Police Department
Springfield Township Police Department
Woodlawn Police Department
According to court documents, the three participated in the robbery of the Micro Center electronics store on Mosteller Road in Cincinnati on August 17, 2014, taking approximately $29,000. Specifically, Murray and Carpenter planned and performed the robbery. They mapped out escape routes and rode to the store together.
During the robbery, Murray ordered several customers and employees to the ground, pointed a firearm at the manager of the store and demanded that he take him to the safe. He ordered the manager to empty the contents of the safe into a black trash bag.
Upon fleeing the scene, Murray and Carpenter abandoned Carpenter’s car and ran into a nearby wooded area, where they called Crawford and asked that he come to their rescue. Murray gave Crawford $270 from the proceeds for picking them up and driving them to safety.
Murray also robbed Fifth Third Bank on Ferguson Road in Cincinnati at gunpoint on October 15, 2014, taking approximately $10,900.
Carpenter brandished a firearm while robbing the Family Dollar on Ferguson Road in Cincinnati on October 29, 2014. After an employee advised that he could not open the safe, Carpenter demanded the employee empty the cash register, and took $167 in cash. Nine days later, Carpenter robbed the same store by gunpoint again. During his second robbery at the store, he passed out shopping bags to customers and encouraged them to steal from the store as well. As he was approaching the store, an individual called 911 and Carpenter was apprehended after a brief foot chase.
“These were hostile takeover robberies that terrorized multiple victims,” Acting U.S. Attorney Glassman said. “People who commit crimes like this should expect to end up spending a long time in federal prison. These are serious crimes that warrant the serious penalties that the district court meted out today.”
Acting U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Assistant United States Attorney Anthony Springer, who is representing the United States in this case.
Carlsbad Woman Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Suzanne Marie Villa, 37, of Carlsbad, N.M., was sentenced today in federal court in Las Cruces, N.M., to 24 months in prison for his methamphetamine trafficking conviction. Villa will be on supervised release for three years after completing her prison sentence.
Villa was arrested on Aug. 25, 2015, on a criminal complaint charging her with possession of methamphetamine with intent to distribute on June 12, 2015, in Eddy County, N.M. According to the criminal complaint, Villa was arrested after Pecos Valley Drug Task Force agents notified U.S. Border Patrol Agents at the Border Patrol Checkpoint on Highway 62/180 near El Paso, Texas, to be on the lookout for her vehicle based on investigation indicating that Villa would be transporting drugs to Carlsbad. The U.S. Border Patrol later seized 25.7 grams of methamphetamine and drug paraphernalia from Villa’s vehicle during a checkpoint inspection. Villa was subsequently indicted on Nov. 19, 2015, and charged with conspiracy to possess methamphetamine with intent to distribute on June 12, 2015, in Eddy County.
On Jan. 26, 2016, Villa pled guilty to the indictment. In her plea agreement, Villa admitted that on June 12, 2015, she was stopped by law enforcement officers and found to be in possession of 25.7 grams of methamphetamine together with other items associated with methamphetamine trafficking including a scale, plastic bags, a glass smoking pipe and $820.00 in cash.
This case was investigated by the Las Cruces office of the DEA, the Pecos Valley Drug Task Force and the U.S. Border Patrol. The case was prosecuted by Assistant U.S. Attorney Selesia Lee Winston of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Calipatria State Prison’s Drug Counselor, Inmates and Others Indicted in Drug Smuggling ConspiracyRead the Press Release
Assistant U. S. Attorney Orlando Gutierrez (619) 546-6958
NEWS RELEASE SUMMARY – May 10, 2016
SAN DIEGO – Eight people, including a supervisory drug counselor at Calipatria State Prison and inmates who participated in the drug rehabilitation program, were indicted by a federal grand jury on charges that they were members of a network that smuggled methamphetamine, heroin and marijuana into the prison.
This is the first large-scale drug smuggling conspiracy prosecuted in connection with a prison in the Southern District of California. The drugs and scores of cell phones smuggled into the prison by the drug counselor on one occasion were estimated to have a prison value of nearly $1.2 million.
This is also the first time that the San Diego Federal Bureau of Investigation and California Department of Corrections and Rehabilitation officials have targeted not only the corrupt prison official, but inmates and their conspirators on the outside. Federal law enforcement officials announced today that, going forward, they will continue to take an aggressive stand against this dangerous activity and targeting all involved.
“We are putting everyone on notice: Whatever part you play in the prison smuggling equation, you’re going to be held accountable,” said U.S. Attorney Laura Duffy. “If you smuggle drugs and contraband into prisons located in the Southern District of California, we will prosecute you federally. And if you’re in prison, we’re not going to overlook you just because you’re already there.”
“While occupying a position of trust Ms. Carr is alleged to have facilitated the distribution of drugs within the prison population at Calipatria State Prison, thereby undermining the correction and rehabilitation of its inmates,” commented FBI Special Agent in Charge (SAC), Eric S. Birnbaum. “The smuggling of contraband is not only a threat to the integrity of our prison system, but to the safety of the American public which is why the FBI is committed to rooting out corruption at all levels within our prison system.”
“We take allegations of staff smuggling drugs into prison very seriously,” said CDCR California Department of Corrections and Rehabilitation Secretary Scott Kernan. “CDCR fully investigates, and assists in any prosecutions. In this case, we appreciate the collaboration with the FBI and the U.S. Attorney’s Office.”
The key defendant, Angela Carr, was a supervisory drug counselor at the prison. In that capacity, she routinely met with inmates attending the prison’s substance abuse program. Four of Carr’s co-conspirators are inmates – three of whom participated in her drug-addiction recovery program. One of those inmates, D’Mondo Burns, was a drug counseling mentor to other inmates. The other inmates charged include Ryan Hawes, Nathaniel Frazier and Brandon Carroll.
So while these inmates purported to be seeking help in kicking their drug habits, in fact, they were utilizing the prison’s drug counseling program to smuggle drugs and other contraband into the facility.
Hawes was arrested this morning in Lancaster; Walters was arrested in West Covina and Frazier was arrested in Los Angeles. Burns and Carroll were already in custody; Watson and Turner are at large.
According to a search warrant affidavit, Carr received the drugs from three women who have relationships with inmates at Calipatria. They are identified as Brittney Turner, Tameika Watts and Myesha Walters.
According to the search warrant, Carr would meet the women in parking lots of bowling allies and big-box stores in Palmdale and Moreno Valley to receive the drugs and contraband. Carr then would bring the controlled substances - including methamphetamine, heroin, marijuana, Xanax, Valium, Soma and Norco - into the prison, concealed in chip bags, Quaker Oatmeal boxes and cookie and coffee containers. The indictment also alleges that Carr smuggled as many as 40 cell phones at a time into the prison.
These phones were to be sold to other inmates, and used to coordinate criminal activity both inside and outside the facility. All told, authorities believe Carr smuggled drugs and contraband into the Calipatria prison on at least three occasions.
In return, Carr was paid about $3,500 in total. Prison staff do not end up making as much money from these criminal enterprises as they might expect. Manipulative inmates convince correctional staff to first bring in items that seem innocuous, like tobacco and currency. But once the official has done so, inmates quickly begin pressuring the official, under threat of exposure, to bring in drugs, cell phones or other dangerous contraband including items that could be used as weapons. These crimes endanger the safety of the staff and inmates and undermine the security of the public at large.
Carr’s alleged corruption was discovered in August of 2015 when she was confronted at the staff entrance of the prison, reeking of marijuana. She was found to be secretly carrying all of these contraband items. She had almost a pound of methamphetamine; 4 pounds of marijuana; a quarter-pound of heroin; 409 tablets of Soma, Xanax, Valium and Norco; 212 grams of tobacco; four bottles of cough syrup and 39 cell phones. Carr was detained and her case is pending.
Calipatria State Prison opened in 1992 and houses about 3,661 inmates. There are 1,280 employees at the prison.
The FBI encourages the public to report allegations of public corruption to our hotline at (877) NO-BRIBE (662-7423).
DEFENDANTS Case Number 15cr3087
Angela Carr Age 44 Moreno Valley
Ryan Hawes Age 25 Lancaster
Brittney Turner Age 29 Lancaster
Nathaniel Frazier Age 28 Los Angeles
Tameika Watts Age 29 Los Angeles
D’Mondo Burns Age 26 Calipatria State Prison
Brandon Carroll Age 34 Calipatria State Prison
Myesha Walters Age 34 West Covina
SUMMARY OF CHARGES
Possession of Controlled Substances with Intent to Distribute – Title 21, U.S.C., Section 841(a) (1)
Maximum Penalty: Life in Prison
Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Sections 841(a) (1) and 846
Maximum Penalty: Life in Prison
AGENCY
Federal Bureau of Investigation
California Department of Corrections and Rehabilitation’s Office of Internal Affairs
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
**This case stems from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the agencies noted above. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
For Visuals, please see www.justice.gov/usao-sdca/gallery/photos-press-conference-may-10-2016
Blue Springs Man Sentenced for Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., man was sentenced in federal court today for his role in a conspiracy to commit several armed robberies at restaurants in the metropolitan area.
Isiah G. Etienne, 21, of Blue Springs, was sentenced by U.S. District Judge Beth Phillips to 10 years in federal prison without parole.
Etienne pleaded guilty to participating in the conspiracy to commit armed robberies, to one count of armed robbery and to one count of using a firearm during a crime of violence.
Etienne is the fourth defendant to plead and guilty and be sentenced for the armed robbery conspiracy and related charges. Mikah M. Labayen, 20, of Blue Springs, was sentenced to six years in federal prison without parole. Renargo L. Martin, 46, of Kansas City, Mo., was sentenced to five years in federal prison without parole. Jeremy Hunter, also known as “Heat,” 26, of Kansas City, was sentenced to 10 years in federal prison without parole.
Co-defendant William H. Parker III, 21, of Kansas City, pleaded guilty on April 19, 2016, and awaits sentencing.
Etienne, Parker, Labayen, Martin and Hunter each admitted that he participated in a conspiracy to rob several fast food restaurants in the Kansas City area in the fall of 2014. Parker, Labayen and Etienne were employed at a Chipotle restaurant in Blue Springs. Using their knowledge of procedures commonly used by such establishments, conspirators would wait until the end of a business day, and then rob restaurants by waiting until an employee opened a door to take trash out of the premises. They rushed the door to gain access, and then forced the manager or shift supervisor to give them access to the restaurant’s safe. Conspirators threatened restaurant employees with an assault rifle in order to force their cooperation.
Conspirators robbed a Chipotle restaurant in Lee’s Summit, Mo., on Nov. 3, 2014, taking $1,600; a Burger King restaurant in Independence, Mo., on Nov. 10, 2014, taking $914 and again on Nov. 30, 2014, taking $565; and a Chipotle restaurant in Blue Springs on Nov. 16, 2014, taking $6,800.
Following these robberies, Parker, Etienne and Labayen were captured after an attempted robbery of a motel.
This case is being prosecuted by Assistant U.S. Attorney Patrick Edwards. It was investigated by the Kansas City, Mo., Police Department, the Lee’s Summit, Mo., Police Department, the Blue Springs, Mo., Police Department and the FBI.
Barge Operator Pays United States over $800,000 in Civil PenaltiesRead the Press Release
As part of a voluntary agreement, Indiana-based American Commercial Lines, Inc. (ACL), and its wholly-owned subsidiary, ACBL Transportation Services, LLC (ACBLTS), have paid the United States $805,440.00 in civil penalties to resolve Clean Water Act (CWA) violations, Acting United States Attorney James L. Porter announced.
"Clean water is a precious resource." Porter said, "When it is threatened in the Southern District of Illinois, this office will not stand idly by. We take seriously our responsibility to uphold and enforce federal environmental laws, and we will continue to vigorously prosecute these cases."
According to a federal complaint filed earlier this year in the Southern District of Illinois, over a span of nearly seven years – from June 2007 to February 2014 – ACL and ACBLTS repeatedly discharged sewage and polluted wastewater to the Ohio River from their barge cleaning facility in Cairo, Illinois, in violation of their National Pollutant Discharge Elimination System permits. The wastewater exceeded permit limits for four separate pollutants: biochemical oxygen demand, total suspended solids, total residual chlorine, and fecal coliform. The complaint states that the companies violated their allotted limits for daily maximum levels and/or monthly averages on at least 554 separate occasions.
Reports submitted by ACL and ACBLTS to the Illinois Environmental Protection Agency show that in many instances, the violations were egregious. On 16 occasions, the amount of fecal coliform in ACL’s discharges measured at least 100 times higher than the permit limit. During another month, the concentration of total residual chlorine in the wastewater rose to more than 700 times the permit limit. Most of the polluted water that ACL and ACBLTS discharged to the Ohio River came from two office septic systems and a marine sanitation device. A barge cleaning station also contributed to the CWA violations described in the complaint.
The objective of the Clean Water Act is to restore and maintain the chemical, physical and biological integrity of the Nation’s waters. In reaching the settlement figure, the United States took into account the seriousness of the violations and the impact they had on the environment, as well as the corrective measures the companies eventually took to eliminate future violations and bring their Cairo facility into compliance. "This settlement illustrates the importance and value of protecting the Ohio River," said Robert A. Kaplan, Acting EPA Region 5 Administrator. "U.S. EPA will take action whenever necessary to protect our freshwater resources."
This case was prosecuted by Assistant United States Attorneys Nathan D. Stump and Nicholas J. Biersbach, in concert with the Environment and Natural Resources Division of the U.S. Department of Justice, the U.S. Environmental Protection Agency, and the Illinois Environmental Protection Agency.
Alien Who Returned to USA Sentenced to PrisonRead the Press Release
SYRACUSE, NEW YORK - Jorge Lopez-Castaneda, 61, of Mariel, Pinar del Rio, Cuba, was sentenced yesterday to serve forty-eight months imprisonment for illegally reentering the United States, announced United States Attorney Richard S. Hartunian. Lopez-Castaneda was sentenced by Senior United States District Judge Thomas J. McAvoy in Albany, New York.
Lopez-Castaneda is a citizen of Cuba who was convicted of Arson in the First Degree in Florida in 1996. Sometime thereafter, he voluntarily left the country. In 2013 he was denied admission to the USA when he tried to cross the border from Mexico. In 2015, he was arrested in Cortland, New York, with no record of having legally entered the country or having applied to do so.
This case was investigated by the United States Department of Homeland Security, Immigration and Customs Enforcement, and was prosecuted by Assistant U.S. Attorney Carina H. Schoenberger.
Albuquerque Man Sentenced for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jimmy Marquez, 38, of Albuquerque, N.M., was sentenced today in federal court to 60 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Marquez was arrested on June 30, 2015, on an indictment charging him with distributing methamphetamine on April 17, 2015 and May 29, 2015, in Bernalillo County, N.M. The indictment included forfeiture allegations requiring Marquez to forfeit $600 and a motorcycle to the United States.
On Oct. 23, 2015, Marquez pled guilty to one count of distribution of methamphetamine and admitted that on April 17, 2015, he sold 13.6 grams of 98.4% pure methamphetamine to an undercover law enforcement officer.
This case was investigated by the Albuquerque office of the DEA and was prosecuted by Assistant U.S. Attorney Jennifer M. Rozzoni.
7th Street Gang Member Sentenced on Rico ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Sammy Ortiz, 28, of Buffalo, NY, who was convicted of RICO Conspiracy, was sentenced to 57 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that as a member of the 7th Street Gang, the defendant sold cocaine, heroin and marijuana. In addition, Ortiz possessed and stored firearms at his 7th Street residence on behalf of other gang members.
A total of 18 defendants were charged in the prosecution of the 7th Street gang. All 18 defendants have now been convicted.
The 7th Street Gang was responsible for narcotics trafficking, numerous shootings and multiple murders in the 7th Street area of the West Side of Buffalo between 2000 and 2012.
Today’s sentencing is the culmination of an investigation on the part of Special Agents of the FBI Safe Streets Task Force, the New York State Police, under the direction of Major Steven Nigrelli, the Buffalo Police Department under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
Monday 9 May 2016
Youngstown man sentenced to life in prison for raping childRead the Press Release
A Youngstown man was sentenced to life in prison after he was convicted of crossing state lines to rape an 11-year old, law enforcement officials said.
Iraephraim Underwood, 59, was convicted following a jury trial of one count of crossing a state line to engage in a sexual act with a person who had not attained the age of 12 years old and one count of crossing a state line to engage in a sexual act with a person who had not attained the age of 18 years old.
This case was prosecuted by Assistant U.S. Attorneys Michael A. Sullivan and Benedict Gullo following an investigation by the Federal Bureau of Investigation, the Youngstown Police Department and the Boardman Police Department.
York Man Sentenced in Prosecution of Latin KingsRead the Press Release
HARRISBURG- On May 5, 2016, a federal judge sentenced a York man to federal prison for his involvement in the importation and distribution of cocaine and heroin in York County.
According to United States Attorney Peter J. Smith, Daniel Pacheco-Morales, age 44, of York, was sentenced to fifteen years in prison. U.S. District Court Judge Yvette Kane indicated during sentencing that the violence associated with his activities and his long history of drug trafficking separated him from the other defendants sentenced in the prosecution of Latin Kings in York.
On April 6, 2015, the day of his scheduled jury trial, Daniel Pacheco-Morales entered a guilty plea to conspiracy to distribute heroin from 2011 to 2013. He also admitted to his participation in conspiracy to distribute heroin throughout York. He later attempted to withdraw his guilty plea, but the court denied his request.
Pacheco-Morales’s sentence is the culmination of a multi-year investigation by the Pennsylvania State Police and the York County Drug Task Force, into the Latin King Street Gang in York. In that investigation, hundreds of purchases of heroin, cocaine, and crack cocaine were made from over one hundred individuals in York, and resulted in the arrest of most of those individuals in a sweep that began on February 6, 2013. Thereafter, the United States Attorney’s Office indicted fifteen individuals for leadership roles in the heroin and cocaine trafficking, including Daniel Pacheco-Morales.
As part of this larger investigation, the United States charged multiple others affiliated with the distribution of heroin and cocaine in York. The other cases are as follows:
-
Angel Mendez-Castro, age 27, of York and Puerto Rico, entered a guilty plea to conspiracy to import and distribute kilograms of heroin and cocaine. He was sentenced to fifteen years in prison.
-
Christian Mendez-Castro, a/k/a “King Rampage,” age 22, of York and Puerto Rico, entered a guilty plea to conspiracy to distribute heroin and cocaine. He was sentenced to nine years in prison.
-
Hector Castro-Padro, age 22, of Puerto Rico and York, entered a guilty plea drug trafficking and possession of a firearm in furtherance of drug trafficking. He was sentenced to six years and six months in prison.
-
William Ortiz, age 53, or York, entered a guilty plea to drug trafficking. On August 21, 2014, he was sentenced to 10 years in prison.
-
Luis Angel Ortiz, a/k/a “C Lo,” age 31, of York, entered a guilty plea to drug trafficking. On April 15, 2014, he was sentenced to twelve (12) years and six (6) months in prison.
-
Jose Cartegena, Jr., a/k/a “Warrior,” age 35, of York, entered a guilty plea to drug trafficking. On April 28, 2014, he was sentenced to five (5) years in prison.
-
Marcus Garcia, a/k/a “King Paradise,” age 28, of York, entered a guilty plea to drug trafficking. On September 5, 2014, he was sentenced to six (6) years and five (5) months in prison.
-
David Ramsey, a/k/a “King Knuckles,” age 32, of York, entered a guilty plea to drug trafficking. On December 9, 2014, he was sentenced to five (5) years in prison.
-
Carlos Villalongo-Martinez, age 38 of York, entered a guilty plea to drug trafficking. On July 29, 2014, he was sentenced to two (2) years in prison.
-
Brandon Jones, age 27, of York, entered a guilty plea to drug trafficking. On June 3, 2014, he was sentenced to six (6) years in prison.
-
Antonio Navarro-Garcia, a/k/a “King Trigger,” age 22 of York, entered a guilty plea to drug trafficking. On November 25, 2014, he was sentenced to five (5) years in prison.
-
Michael Enriquez, a/k/a “King Rage,” age 30, of Camden, New Jersey, entered a guilty plea to drug trafficking. On January 27, 2015, he was sentenced to ten (10) years in prison.
-
Hector Rengifo, age 40, of York, entered a guilty plea to drug trafficking on August 4, 2014. He was sentenced to ten (10) years in prison.
- August Ranalli, age 31, of York, was convicted of drug trafficking and conspiracy after bench trial. He was sentenced to twelve (12) years in prison.
Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.
# # #
-
Yiwei Zheng Sentenced to Pay $500,000 Fine for Smuggling Elephant Ivory and Rhinoceros HornsRead the Press Release
United States Attorney Andrew M. Luger and Ed Grace, Deputy Assistant Director for the U.S. Fish and Wildlife Service (USFWS), today announced the sentencing of YIWEI ZHENG, A/K/A “Steve Zheng,” 43, for smuggling elephant ivory and illegally exporting rhinoceros horns from the United States to China.
ZHENG was ordered to pay $500,000 into the Lacey Act Reward Fund, which is used by USFWS to reward those who provide information about wildlife crimes and to pay the costs incurred in caring for fish, wildlife or plants that are being held as evidence in ongoing investigations. The defendant was also sentenced to serve three years’ probation, a six-week period of intermittent confinement, and to perform 150 hours of community service.
Under the Lacey Act, it is unlawful to import, export, transport, sell or purchase wildlife, fish or plants that were taken, possessed, transported or sold in violation of a state, federal or foreign law. When it was passed in 1900, the Lacey Act became the first federal law protecting wildlife.
“Those who engage in this illegal trade create demand, and a market for, the exploitation of endangered species such as black rhinoceros,” said Assistant United States Attorney Laura M. Provinzino. “This defendant helped to sustain this illegal market for years, engaging in more than 300 sales and earning more than $1 million. His profit was earned at the expense of these threatened and endangered species.”
“Stopping wildlife trafficking and trade in ivory and rhino continues to be a huge conservation priority for us,” said U.S. Fish and Wildlife Service Deputy Assistant Director for Law Enforcement Ed Grace. “It takes all of us to protect these endangered species, here and around the world.”
According to the defendant’s guilty plea and documents filed in court, on April 30, 2011, ZHENG smuggled elephant ivory out of the United States to a recipient in Shanghai, China. ZHENG also violated the Lacey Act by exporting two rhinoceros horns from the U.S. between July 25, 2010 and July 27, 2010, with knowledge that the two rhinoceros horns were transported and sold in violation of the laws and regulations of the United States, including the Endangered Species Act.
ZHENG operated an online business known as Crouching Dragon Antiques. As part of this business, ZHENG offered for sale and sold a variety of items, including items made of elephant ivory and rhinoceros horn. On May 5, 2011, U.S. Customs and Border Protection officers identified a package containing a number of elephant ivory carvings being shipped from the United States to an individual in Shanghai, China. The shipper was identified as YIWEI ZHENG. The ivory contained within the shipment had not been declared to the U.S. Fish and Wildlife Service upon export nor had ZHENG obtained any Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) permits for the ivory being exported as required.
In total, ZHENG smuggled into and out of the United States and sold in China and elsewhere, elephant ivory, rhinoceros horn and other items worth more than $1,000,000.
ZHENG pleaded guilty on January 13, 2016, and was sentenced today by U.S. District Chief Judge John R. Tunheim in U.S. District Court in Minneapolis.
This case is the result of an investigation by the U.S. Fish and Wildlife Service.
The case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.
Defendant Information:
YIWEI ZHENG, A/K/A “Steve Zheng,” 43
St. Cloud, Minn.
Convicted:
-
Smuggling goods from the United States, 1 count
- Violation of the Lacey Act, 1 count
Sentenced:
-
$500,000 fine payable to the Lacey Act Reward Fund
-
Three years’ probation
-
Six weeks of intermittent confinement
-
150 hours community service
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
-
Webster Man Pleads Guilty to Failing to Report More Than $571,000 of Income to IRSRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Brent Derouen, 37, of Webster, NY, pleaded guilty to two misdemeanor counts of failing to file federal income tax returns before U.S. Magistrate Judge Jonathan W. Feldman. The charges carry a maximum penalty of one year in prison and a $100,000 fine.Assistant U.S. Attorney John J. Field, who is handling the case, stated that Derouen operated a stock promotion business, OTC Advisors LLC. In 2009 and 2010, the defendant earned income of approximately $181,000 and $390,000. Derouen knew he was obligated to report this income to the Internal Revenue Service, and pay taxes on it, but deliberately failed to do so. As a result, the defendant has agreed to pay more than $460,000 to the United States for taxes he owes, plus penalties and interest on the unpaid taxes.
The plea is the result of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.
Sentencing is scheduled for July 11, 2016 at 9:30 before Judge Feldman.
Waterville Man Pleads Guilty to Selling Counterfeit CoinsRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Mwashuma M. Sithole, 31, of Waterville, Maine pleaded guilty today in U.S. District Court to selling counterfeit coins.
Court records show that the defendant began ordering counterfeit Morgan dollars online in May 2014. Over the next several months, the defendant placed orders online for items that looked like genuine Morgan dollar coins. The Morgan dollar is a United States dollar coin minted from 1878 to 1904 and then again in 1921. The coins that the defendant ordered and received were offered as counterfeits and made in China. The defendant would pay about $2 each for the coins. The coins resembled genuine Morgan dollars in appearance, design, and weight.
The defendant sold and pawned several counterfeit Morgan dollars in Maine in 2014. He knew that the coins were counterfeit but told the buyers that the coins were genuine Morgan dollars. He sold and pawned coins in Augusta, Newport, Farmington, Lewiston, and South Portland. Law enforcement officers executed a warrant at the defendant’s residence on January 22, 2015. They seized approximately 1200 counterfeit Morgan coins that belonged to the defendant.
Sithole faces up to 15 years in prison, a $250,000 fine, and he may be ordered to pay restitution. He will also forfeit all of the coins seized from him. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Augusta Police Department, the Franklin County Sheriff’s Office, the Waterville Police Department, the Auburn Police Department, the Lewiston Police Department, the South Portland Police Department, the Newport Police Department, the Maine State Police, and the United States Secret Service.
Two L.A. County Sheriff’s Deputies involved in Use-of-Force Incident against Shackled Inmate Sentenced to PrisonRead the Press Release
LOS ANGELES – Two Los Angeles Sheriff’s deputies who were found guilty after a two-week trial earlier this year of falsifying reports with the intent to obstruct justice related to their assault of a waist-chained inmate were sentenced to prison terms today.
Former deputies Joey Aguiar, 28, and Mariano Ramirez, 40 were sentenced respectively to 18 months and 13 months in prison by the Honorable Beverly Reid-O’Connell. When imposing sentence Judge O‘Connell found that, in addition to falsifying their reports, Aguiar and Ramirez had engaged in excessive force against the shackled inmate, who was struck, kicked, repeatedly hit by a flashlight, and pepper-sprayed, while he was on the ground.
Aguiar was convicted of one count of falsification of records for submitting a report that falsely stated the inmate, Bret Phillips, who is now 44, was beaten after he had attempted to headbutt deputy Aguiar’s face and that Phillips violently kicked at Aguiar. Mr. Phillips did neither, according to testimony presented at the trial.
It was undisputed that Mr. Phillips was waist-chained with handcuffs binding his hands to a chain around his stomach throughout the entire beating.
During the trial, Chaplin Paulino Juarez, who was an eyewitness to the event, testified that he repeatedly raised concerns about what he had seen with senior LASD officials, but was rebuffed. Chaplin Juarez ultimately relayed his concerns to the ACLU. The information provided to the ACLU by the chaplain later came to the attention of the FBI. By this time the FBI had begun a wide-ranging investigation into civil rights abuses by the LASD in custodial settings, particularly excessive uses of force by deputies on the 3000 Floor of the Men’s Central Jail. Another witness, who was an inmate when Mr. Phillips was beaten, testified that he hid in the shower to avoid being seen by LASD personnel as he watched the deputies beat a defenseless and unmoving inmate. During the sentencing, Judge O’Connell stated that she believed the testimony of Chaplain Juarez and Mr. Maestaz.
“These defendants attempted to cover up an unwarranted attack upon an inmate who was restrained with waist chains,” said United States Attorney Eileen M. Decker. “The reprehensible conduct of these defendants in this case undermines the work of law enforcement everywhere, tarnishing the outstanding performance of the vast majority of officers.”
The jury in the case had been unable to reach a unanimous decision on a civil rights offense that alleges the deputies unlawfully beat the victim during the incident on February 11, 2009. The jury reported in open court that it was split 10-2 in favor of guilt. The jury acquitted Aguiar and Ramirez of conspiring to violate the inmate’s civil rights.
The case against Aguiar and Ramirez is the result of an investigation by the FBI, and is one in a series of cases resulting from an investigation into corruption and civil rights abuses at county jail facilities in downtown Los Angeles. As a result of the investigation, 18 current or former members of the Los Angeles Sheriff’s Department have now been convicted of federal charges.
Transnational Drug Trafficking Organization Ringleader Pleads Guilty to Drug Conspiracy and Related ChargesRead the Press Release
TULSA, Okla.—The ringleader of a Tulsa-based drug trafficking organization pleaded guilty today to drug conspiracy, engaging in a continuing criminal enterprise, and conspiracy to sponsor and exhibit an animal in an animal fighting venture, announced U.S. Attorney Danny C. Williams Sr. of the Northern District of Oklahoma. United States District Judge John E. Dowdell presided over the change of plea hearing.
Donald Walters, 35, of Tulsa, was charged in a sixth superseding indictment on August 13, 2014. Walters was charged along with 50 co-defendants who were members and associates of the Hoover Crips Street Gang and the Donald Walters Drug Trafficking Organization in the 241 criminal count indictment. Since the indictment, 32 defendants have pleaded guilty.
According to the plea agreement, Walters admitted that he purchased cocaine and arranged to have it cooked into crack cocaine at drug houses operated by conspirators. The drugs were then sold throughout Tulsa. Walters frequently used telephones to facilitate the drug conspiracy, and he and co-conspirators used coded terms in order to keep the conspiracy a secret. Walters further admitted that he was the leader and organizer of a continuing criminal enterprise with at least five co-conspirators. In addition, from 2011 to 2014, Walters sold, trained, raised, and transported dogs to fight and travelled out of state to fight.
The drugs came from Mexican cartels and were transported through Dallas, Oklahoma City, and Tulsa as they moved toward Ohio and the northeastern United States.
During the investigation of Operation Battlefield, law enforcement discovered that the Hoover Crips and Walters DTO brought approximately $10,000,000 worth of cocaine and marijuana through Tulsa over a three-year period.
At sentencing, Walters faces a mandatory minimum sentence of 20 years of imprisonment and a maximum penalty of life and a fine of up to $20,000,000. Under the terms of the plea agreement, the parties have agreed to a prison sentence of 30 years, subject to the court’s acceptance of the plea agreement at sentencing. In addition to the prison sentence, he will forfeit seized criminal proceeds, facilitating real property and vehicle, and a $10,000,000 criminal forfeiture judgment representing proceeds of the drug conspiracy.
The charges were the result of a three-year U.S. Attorney’s Office, Organized Crime Drug Enforcement Task Force investigation, led by the Tulsa Police Department’s Homicide and Special Investigation Divisions and the Federal Bureau of Investigation, in collaboration with the U.S. Drug Enforcement Administration; the Tulsa County District Attorney’s Office; the U.S. Marshals Service; the Oklahoma Attorney General’s Office; the Tulsa County Sheriff’s Office; the Broken Arrow Police Department; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Oklahoma Highway Patrol; and the Norman Police Department.
Assistant United States Attorneys Allen J. Litchfield, Robert T. Raley, Eric O. Johnston, Andrew J. Hofland, and Catherine Depew prosecuted the case.
###
Texas Man Pleads Guilty to Theft of Public Money for Role in Stolen Identity Refund Fraud Scheme Involving IRS “Get Transcript” DatabaseRead the Press Release
A Houston, Texas, man pleaded guilty today in the U.S. District Court for the Southern District of Texas in Houston to one count of theft of public money, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
An indictment returned on Nov. 10, 2015, charged Denzel Roberts, 24, with participating in a scheme that used stolen personal identification information to file false federal income tax returns for tax year 2014. The indictment alleged that participants in the scheme obtained means of identification of actual individuals, including their names and social security numbers, and used this information to access the Internal Revenue Service’s (IRS) “Get Transcript” database. Using the stolen identities and information obtained from the Get Transcript database, other members of the scheme prepared and filed false tax returns fraudulently requesting refunds. According to the plea agreement, Roberts used a fraudulent passport to open several bank accounts into which the refunds were deposited. Roberts withdrew the illicit proceeds, retaining a portion of the money as a fee and providing the remainder of the funds to others.
Roberts faces a statutory maximum sentence of 10 years in prison and a maximum fine of $250,000. As part of his plea agreement, Roberts agreed to pay restitution to the IRS in the amount of $74,341.39. U.S. District Judge Lynn Hughes of the Southern District of Texas set sentencing for Aug. 8.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Magidson thanked special agents of IRS-Criminal Investigation and the FBI Houston Area Cyber Crime Task Force, who investigated the case and Trial Attorneys Michael Boteler and Grace Albinson of the Tax Division, who are prosecuting this case with assistance from Assistant U.S. Attorney Jimmy Sledge of the Southern District of Texas.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
South Paris Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that David Foster, 39, of South Paris, Maine pled guilty today in U.S. District Court to being a felon in possession of a firearm.
According to court records, on November 21, 2015, a Maine Game Warden discovered Foster in possession of a rifle in the Paris, Maine area. Foster was prohibited from possessing firearms based on three prior felony convictions for burglary.
Foster faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Maine Warden Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Real Estate Developer Sentenced to Two Years in Prison and $1 Million Fine for Insider TradingRead the Press Release
BOSTON – A Boston-area real estate developer was sentenced to two years in federal prison and ordered to pay a $1 million fine after he was convicted earlier this year of engaging in insider trading for buying – and later selling – shares of Wainwright Bank & Trust Company (“Wainwright”) based on a tip that Wainwright would be acquired. Prior to the acquisition, shares of Wainwright traded on the Nasdaq Stock Market.
Robert H. Bray, 78, of Watertown, was sentenced today by U.S. District Court Judge William G. Young. In January, Bray, the owner of R&B Construction, a construction and
real estate development company, was convicted of one count of securities fraud following a four-day trial. In June 2010, Bray was tipped by a friend who was an executive at Boston-based Eastern Bank Corp. that Wainwright would be acquired. The tip – more than two weeks before the acquisition was publicly announced – was passed on a napkin slipped to Bray over drinks at the bar of a Watertown country club where both men are members. Bray ultimately used the tip to trade Wainwright shares for a profit of approximately $300,000, an amount Bray must also forfeit as part of his sentence.U.S. Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The United States Attorney’s Office also received valuable assistance from the U.S. Securities and Exchange Commission in the course of investigating this case. The case was prosecuted by Stephen E. Frank and Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
Pleasants County woman sentenced for role in manufacturing methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Bonnie Jean Butler, 55, of St. Marys, West Virginia, was sentenced today to 30 months in prison for her role in manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced.
Butler was among six individuals charged in June 2015 when a 19-count federal indictment disrupted a methamphetamine manufacturing operation in Pleasants County, West Virginia.
Butler was discovered in February 2014 in possession of various materials commonly used to manufacture methamphetamine. She pled guilty in August 2015 to one count of “Aiding and Abetting Possession of Material Used in the Manufacture of Methamphetamine.”
Assistant U.S. Attorney Shawn Adkins prosecuted the case on behalf of the government. The West Virginia State Police and the Pleasants County Sheriff’s Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Philadelphia Bank Employee Charged in Fraud and Identity Theft CaseRead the Press Release
PHILADELPHIA - Michael Tuffour, 27, of Philadelphia a was charged by Indictment, unsealed May 6, 2016, with one count of bank fraud and three counts of aggravated identity theft, announced United States Attorney Zane David Memeger.
The indictment alleges that while he was working as a customer service representative for TD Bank, Tuffour abused his position of trust in numerous ways including: opening fraudulent accounts for co-conspirators so that they could deposit counterfeit checks into those accounts; helping the co-conspirators withdraw the cash before TD Bank discovered that the checks were fraudulent; wiring money from the fraudulent accounts before TD Bank discovered that the checks were fraudulent; and secretly stealing customer information that he sold to co-conspirators, who used it to manufacture false IDs and counterfeit checks that they then used to unlawfully access the customers’ accounts.
Tuffour faces a mandatory minimum term of two years in prison with a statutory maximum sentence of 36 years, a period of supervised release, a possible fine, and a $400 special assessment.
The case was investigated by the United States Secret Service and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Charged with Hacking Gas Company's ComputersRead the Press Release
PHILADELPHIA - Marc Fox, 44, of Shoemakersville, Pennsylvania, was charged today by Information with one count of intentionally causing damage to a computer, announced United States Attorney Zane David Memeger. The Information alleges that between September 11, 2015 and October 2, 2015, Fox sent unauthorized commands to a computer owned by UGI Utilities, Inc., a company that supplies natural gas to customers in Pennsylvania. The Information alleges that by sending these unauthorized commands, Fox intentionally changed the passwords and permissions for certain accounts on UGI’s computers. It is further alleged that Fox then sent commands to a UGI computer that caused the rerouting of emergency calls to UGI during certain time periods so that these emergency calls were not directed to the proper UGI telephone representatives, thus delaying the response to these high priority calls. The Information alleges that Fox’s computer intrusions caused more than $5,000 in damage and caused a threat to public safety.
If convicted the defendant faces a statutory maximum sentence of 10 years in prison, a possible fine, restitution to UGI, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Parma man charged with sex trafficking of childrenRead the Press Release
Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Division, Northern District of Ohio, and Acting U.S. Attorney Carole S. Rendon announced the arrest of Richard Purnell, 54, of Parma.
Purnell has been charged in federal court with Sex Trafficking of Children, Title 18, U.S.C. Section 1591.
In November 2015, the FBI’s Child Exploitation Task Force became aware of an online advertisement for a “lovely college girl” who has a “thing for older men.” Photos were attached to this advertisement and appeared to indicate a female under the age of 18. An investigation ensued and agents confirmed that the “lovely college girl” was in fact 14 years of age, according to court documents.
A federal arrest warrant was obtained on May 6, 2016 and Purnell was taken into custody by the FBI’s Child Exploitation Task Force that evening at approximately 8:30pm in Parma, Ohio. The Child Exploitation Task Force is comprised of the Adult Parole Authority, Cleveland Metro Housing Authority, Cleveland Police Department and Cuyahoga County Sheriff’s Office. The Parma Police Department provided substantial assistance to this successful investigation and arrest.
Purnell has been held in the Parma jail since his arrest Friday night. He is scheduled to appear before federal Judge Parker today at 2:30 p.m.
A complaint is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any; their role in the offenses; and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
Any questions regarding this news release can be directed to SA Vicki D Anderson at the Cleveland Office of the FBI, 216-522-1400 or [email protected].
Owner of Santa Fe Springs Trucking Company Pleads Guilty to Dumping 11,000 Gallons of Waste Soap into San Gabriel RiverRead the Press Release
LOS ANGELES – A man who ran a trucking company pleaded guilty today to dumping 11,000 gallons of waste water and soap into a tributary of the San Gabriel River in Santa Fe Springs.
David Lee Flury, the 61-year-old owner and operator of Flury Industries, Inc., a Santa Fe Springs-based waste-hauling company, pleaded guilty to a felony charge of water pollution. United States District Judge Stephen V. Wilson set Flury’s sentencing hearing for August 15.
The San Gabriel River, one of the three most important waterways in Southern California, flows into the Pacific Ocean at Alamitos Bay between the cities of Long Beach and Seal Beach. Flury admitted that the City of Santa Fe Springs spent nearly $750,000 cleaning up the soapy waste that he illegally dumped into Los Coyotes Creek.
“Water is a resource that we cannot afford to waste or pollute in drought-stricken Southern California,” said United States Attorney Eileen M. Decker. “This defendant’s crime caused significant harm to the public, taxpayers and the environment.”
Flury had previously been indicted with multiple felony counts, including water pollution, mail and wire fraud, witness tampering, destruction of evidence and identity theft. The federal grand jury indictment alleged that Flury used interstate wire communications and the mail system to defraud approximately 17 customers out of more than $350,000. The indictment alleges that Flury told his customers that he would pick-up their various waste products and transport the waste for disposal at a facility licensed to receive and dispose of such waste products. Instead, Flury illegally dumped tens of thousands of gallons of waste products into the San Gabriel River and desert areas in Riverside County, according to the indictment.
As a result of today’s conviction, Flury faces a statutory maximum sentence of three years in prison and a $250,000 fine.
This case was investigated by the City of Santa Fe Springs Fire Department, the City of Santa Fe Springs Police Department, the Los Angeles Department of Public Works, the California Department of Toxic Substances Control, and the United States Environmental Protection Agency – Criminal Investigations Division.
Owner of Commercial Fishing Business and Local Sherrif’s Deputy Indicted in Scheme to Falsify Fishing RecordsRead the Press Release
BOSTON – The owner of one of the largest commercial fishing businesses in the United States and a Bristol County Sheriff’s Deputy were charged in connection with a long-running scheme involving submitting falsified records to the federal government to evade federal fishing quotas and then smuggling the profits to Portugal. The federal indictment charging the two men was unsealed today after the arrest of the Sheriff’s Deputy.
Carlos Rafael, 64, of Dartmouth, the owner of Carlos Seafood, Inc., was indicted on one count of conspiring to falsify reports submitted to the federal government, 25 counts of submitting falsified records and one count of bulk cash smuggling. Rafael was previously arrested on a criminal complaint filed in February 2016.
Antonio Freitas, 46, of Taunton, a Sheriff’s Deputy with the Bristol County Sheriff’s Office, was indicted on one count of bulk cash smuggling and one count of structuring the export of U.S. currency. Freitas was arrested this morning and will appear today in U.S. District Court in Worcester. The charges arose out of an undercover investigation in which federal agents posed as organized crime figures interested in buying Carlos Seaford. According to the indictment, from 2012 to January 2016, Rafael routinely lied to the National Oceanic and Atmospheric Administration (NOAA) about the quantity and species of fish his boats caught, in order to evade federal quotas designed to guarantee the sustainability of certain fish species.
As alleged in the indictment, during that period, Rafael misreported to NOAA approximately 815,812 pounds of fish, telling NOAA the fish was haddock, or some other abundant species subject to high quotas, when in fact the fish was cod, sole, or other species subject to strict quotas. After submitting false records to federal regulators, Rafael allegedly sold most of the fish to a wholesale business in New York City in exchange for bags of cash. During meetings with the undercover agents, Rafael allegedly said that in his most recent dealings with the New York buyer he received $668,000 in cash.
The indictment alleges that Rafael, with the assistance of Freitas – who was also a Department of Homeland Security Task Force Officer which gave him access to restricted areas of Logan Airport – smuggled at least some of that cash out of the United States to his native Portugal. The indictment alleges that, on Feb. 5, 2016, with assistance of another individual, Freitas smuggled $17,500 through airport security and later deposited the money in a Portuguese bank account belonging to Rafael.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Twenty-three of the charges of falsifying records submitted to the federal government carry the same potential sentence, while two counts, brought under a different statute, provide for a sentence of no greater than 20 years in prison and a fine of $250,000. The charges of bulk cash smuggling and monetary structuring provide a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Rear Admiral Linda L. Fagan, Commander of the First Coast Guard District; Timothy Donovan, Acting Assistant Director of the National Oceanic and Atmospheric Administration, Office of Law Enforcement; Gregory K. Null, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Philadelphia Field Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Andrew E. Lelling, of Ortiz’s Economic Crimes Unit, and David G. Tobin, of Ortiz’s Major Crimes Unit.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Owner of Bodybuilding Drug Companies Sentenced for Selling Misbranded DrugsRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Gavin Burns Smith, age 45, of New Port Richey, Florida, today to six months of home confinement followed by three years of probation for selling peptides to bodybuilders which were not approved by the FDA for human use. Judge Hazel also entered an order requiring Smith to forfeit $2,102,684.06, the value of the misbranded drugs subject to seizure.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Mark McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office.
“Non-FDA approved drugs may be dangerous and contain unknown and harmful ingredients.” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Office. “As we did in this case, we will continue to protect the public by bringing these peddlers of dangerous unapproved drugs to justice.”
According to his plea agreement, from 2010 to April 2012, Smith owned and operated Precision Peptides, located in Lutz, Florida; and from April 2012 to May 2015, he owned and operated DNA Peptides, located in New Port Richey, Florida. Smith placed advertisements on the companies’ websites and sold body-enhancing injectable drugs to individuals seeking to enhance their physiques. These drugs were not approved by the FDA for human use.
On August 22, 2012, law enforcement executed federal search warrants at Precision Peptides and DNA Peptides. At some time thereafter, Smith began operating DNA Peptides out of his residence and continuing to sell drugs using a different website to avoid detection by law enforcement.
Smith caused DNA Peptides and Precision websites to display numerous disclaimers stating that all products sold were for “research/laboratory use only.” Additionally, prior to purchasing the products from the website, each customer was asked to certify that he or she read the disclaimer that the “chemicals/materials for sale here are . . . not intended for human ingestion.” Smith used these disclaimers as a ruse to avoid FDA scrutiny.
He advertised his products and website extensively in bodybuilding magazines and conventions. Smith hired professional bodybuilders to promote his products and to claim that they personally experienced results from taking certain products he sold. He also provided information to customers, via the company websites and Facebook pages, on how to self-administer drugs, including recommended dosages and placement of the injections, in order to best produce the desired bodily enhancements.
The drugs Smith sold included Growth Hormone Releasing Peptide-2, Growth Hormone Releasing Peptide-6, Melanotan II, Growth Hormone Releasing Hormone, Ipamorelin, Human Growth Hormone Fragment, Mechano Growth Factor, and Dehydroepiandrosterone, none of which the FDA has approved for use in humans.
On seven occasions from November 21, 2011 to March 12, 2015, Smith sold misbranded drugs to an undercover officer and shipped those drugs from Florida to locations in Laurel, Columbia and Beltsville, Maryland. None of the drug shipments included any directions for use of the products. Additionally, although the labels stated that the products were for research only, Smith intended that the products be consumed by humans.
United States Attorney Rod J. Rosenstein commended the FDA Office of Criminal Investigations for its work in the investigation and thanked Assistant U.S. Attorneys James A. Crowell IV and Kelly O'Connell Hayes, who prosecuted the case.
Orchestrator of More Than 40 Pump and Dump Schemes and Secret Owner of Offshore Brokerage Firm Pleads Guilty To$250 Million Money Laundering SchemeRead the Press Release
BROOKLYN, N.Y. – Earlier today, Gregg R. Mulholland, a dual U.S. and Canadian citizen and secret owner of Legacy Global Markets S.A. (Legacy), an offshore broker-dealer and investment management company based in Panama City, Panama, and Belize City, Belize, pleaded guilty to money laundering conspiracy for fraudulently manipulating the stocks of more than 40 U.S. publicly-traded companies and then laundering more than $250 million in profits through at least five offshore law firms. Pursuant to his plea agreement with the government, Mulholland has agreed to forfeit, among other things, a Dassault-Breguet Falcon 50 aircraft, a Range Rover Defender vehicle, two real estate properties in British Columbia, and funds and securities on deposit at more than a dozen bank and brokerage accounts. When sentenced, Mulholland faces up to 20 years in prison.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York (IRS-CI); and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations, New York (HSI).
“Mulholland’s staggering fraud perpetrated on the investing public was built on an elaborate offshore shell game, which included his secret ownership of an offshore brokerage firm. Through manipulative trading, Mulholland generated profits of more than $250 million and used a corrupt lawyer to launder the proceeds into the United States to pay his fraudulent network of stock promoters and broker-dealers,” stated United States Attorney Capers. “We are steadfast in our commitment to protect the investing public and will vigorously prosecute those who seek to abuse the financial markets through fraudulent means.” Mr. Capers thanked the Securities and Exchange Commission (SEC), the Department of Justice’s Office of International Affairs (OIA), the Department of State’s Diplomatic Security Service (DSS), and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG) for their cooperation and assistance in the investigation.
“Mulholland pleaded guilty today for his role in a stock manipulation and profit hiding scheme totaling more than $250 million. Making sure our markets are fair to all investors and bringing charges against those who profit illegally remains a top priority for the FBI,” stated FBI Assistant Director-in-Charge Rodriguez.
“This investigation highlights the government’s ability and resolve to combat global money laundering, in this case, the laundering of illicit proceeds from a stock manipulation scheme,” stated IRS-CI Special Agent-in-Charge Kitchen. “Prospective money launderers should take note of Mr. Mulholland’s conviction and think twice about the consequences of such actions. The same holds true for individuals who attempt to criminally circumvent IRS reporting requirements regarding foreign accounts, as their actions will attract the attention of IRS-Criminal Investigation.”
“Laundering more than a quarter of a billion dollars, this defendant used multiple schemes including manipulating the stocks of more than 40 companies in order to line his pockets at the expense of the U.S. financial system. HSI remains committed to using its unique authorities to arrest those that seek to conceal and launder illicit proceeds, causing harm to our economy,” said Special Agent-in-Charge Melendez.
Between 2010 and 2014, Mulholland controlled a group of individuals (the Mulholland Group) who together devised three interrelated schemes to: (1) induce U.S. investors to purchase stock in various thinly-traded U.S. public companies through fraudulent promotion of the stock, concealment of their ownership interests in the companies, and fraudulent manipulation of artificial price movements and trading volume in the stocks of those companies; (2) circumvent the IRS’s reporting requirements under the Foreign Account Tax Compliance Act (FATCA); and (3) launder the fraudulent proceeds from the stock manipulation schemes to and from the United States through five offshore law firms. Through these schemes, the Mulholland Group laundered more than $250 million in fraudulent proceeds.
To facilitate the interrelated schemes, the Mulholland Group used shell companies in Belize and Nevis, West Indies, which had nominees at the helm. This structure was designed to conceal the Mulholland Group’s ownership interest in the stock of U.S. public companies, in violation of U.S. securities laws, and enabled the Mulholland Group to engage in more than 40 “pump and dump” schemes. For example, this structure enabled the Mulholland Group to manipulate the stock of Cynk Technology Corp, which traded on the U.S. OTC markets under the ticker symbol CYNK. Using aliases such as “Stamps” and “Charlie Wolf,” Mulholland was intercepted on a court-authorized wiretap on May 15, 2014, admitting to his ownership of “all the free trading” or unrestricted shares of CYNK. Prior to this conversation between Mulholland and his trader at Legacy, there had been no trading in CYNK stock for 24 trading days. Over the next two months, the stock of CYNK rose from $0.06 per share to $13.90 per share, a more than $4 billion stock market valuation for a company that had no revenue and no assets.
Mulholland used the services of a U.S.-based lawyer to launder the more than $250 million generated through his stock manipulation of CYNK and other U.S. companies – directing the fraud proceeds to five law firm accounts and transmitting them back to members of the Mulholland Group and its co-conspirators. These concealment schemes also enabled Mulholland to evade reporting requirements to the IRS.
Today’s guilty plea took place before United States District Judge I. Leo Glasser.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jacquelyn Kasulis, Winston Paes, and Michael Keilty are in charge of the prosecution. Assistant United States Attorney Brian Morris of the Office’s Civil Division will be responsible for the forfeiture of assets.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The Defendant:
GREGG R. MULHOLLAND
Age: 46
San Juan Capistrano, California
Vancouver, CanadaEDNY Docket No. 14-CR-476 (ILG)
Office on Violence Against Women Announces New Program to Support Tribal Governments Exercise Special Domestic Violence Criminal JurisdictionRead the Press Release
The Justice Department’s Office on Violence Against Women (OVW) today released a grant solicitation launching the new Grants to Tribal Governments to Exercise Special Domestic Violence Criminal Jurisdiction Program (Tribal Jurisdiction Program). This new program was authorized in the Violence Against Women Reauthorization Act of 2013 (VAWA 2013) and received its first appropriation in fiscal year 2016.
VAWA 2013 recognizes tribes’ inherent power to exercise “special domestic violence criminal jurisdiction” (SDVCJ) over certain defendants, regardless of their Indian or non-Indian status, who commit acts of domestic violence or dating violence or violate certain protection orders in Indian country. Specifically, tribes can investigate, prosecute, convict and sentence Indians and non-Indians who assault Indian spouses or dating partners or violate a protection order in Indian country.
“VAWA 2013 closed jurisdictional gaps that had long compromised American Indian and Alaska Native women’s safety and access to justice,” said Principal Deputy Director Bea Hanson for OVW. “And this new grant program is another step in the department’s ongoing effort to help tribes across the country make full use of the SDVCJ authority.”
The Tribal Jurisdiction Program encourages the coordinated involvement of the entire tribal criminal justice system and victim service providers to incorporate systemic change that ensures victim safety and offender accountability. Funds from the Tribal Jurisdiction Program can be used to:
- strengthen tribal criminal justice systems to assist Indian tribes in exercising SDVCJ;
- provide indigent criminal defendants with the effective assistance of licensed defense counsel, at no cost to the defendant, in criminal proceedings in which a participating tribe prosecutes a crime of domestic violence or dating violence or a criminal violation of a protection order;
- ensure that, in criminal proceedings in which a participating tribe exercises SDVCJ, jurors are summoned, selected and instructed in a manner consistent with all applicable requirements; and
- accord victims of domestic violence, dating violence and violations of protection orders rights that are similar to the rights of a crime victim described the federal Crime Victims’ Rights Act, consistent with tribal law and custom.
OVW anticipates making 36-month awards in the range of $300,000 to $450,000. Applications are due by 11:59 p.m. Eastern Time (E.T.) on June 20.
OVW will conduct a pre-application webinar on Wednesday, May 25, 4:00 – 5:00 p.m. E.T. During this webinar, OVW staff will review the FY 2016 Tribal Jurisdiction Program solicitation and grant requirements followed by a brief question and answer session. To register, e-mail [email protected] no later than Monday, May 23.
All OVW open solicitations are posted at www.justice.gov/ovw/open-solicitations.
OCDETF District Specific TrainingRead the Press Release
U.S. Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands (NMI), announced that Organized Crime Drug Enforcement Task Force (OCDETF) trainers provided training to law enforcement partners on Guam and in Saipan, NMI. The OCDETF training was conducted by Lela Johnson, Attorney Advisor from the OCDETF Executive Office in Washington, D.C.; Mark Sweeting, Deputy United States Marshal from Chicago, Illinois; Oscar F. Hagelsieb, Deputy Director, OCDETF Fusion Center in Fairfax, Virginia; Karen D. Beausey, Assistant U.S. Attorney’s Office in Boston, Massachusetts; Jamie Harrison, Special Agent with the IRS in San Diego, California; and Joseph (Josh) Green, Deputy Chief, Criminal Enterprises Section of the U.S. Attorney’s Office in San Diego, California. The training was held at the U.S. Attorney’s Office in Guam on May 4, 2016, and in Saipan on May 5, 2016. The training was attended by approximately 60 local and federal law enforcement officers in Guam and Saipan.
The training topics included Developing a Financial Case; OCDETF Resources; Information Sources for Financial Investigations; OCDETF Fusion Center; Exploiting Financial Evidence and Charges to Improve the Drug Case; Traditional and Alternative Money Laundering Charges; Obtaining Foreign Records; Preparing and Presenting Financial Evidence at Trial; Plea Agreements; Search and Seizure Warrants; and Case Study of a Successful Investigation.
The OCDETF Program was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General's drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises.
OCDETF investigations involve a focused multi-agency, multi-jurisdictional task force that investigates and prosecutes the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
An OCDETF investigation involves federal agents and local law enforcement officers of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigations (FBI), the Internal Revenue Service–Criminal Investigations (IRS-CI), the U.S. Coast Guard Criminal Investigative Service (CGIS), the U.S. Department of Homeland Security Investigations (HSI), the U.S. National Oceanic Atmosphere Administration (NOAA), the U.S. Marshal’s Service, the U.S. Postal Inspection Service (USPIS), the Guam Police Department (GPD), Guam Customs and Quarantine Agency (GCQA), the CNMI Department of Public Safety, the CNMI Division of Customs, and other law enforcement partners.
Participants at the OCDETF Training held in Guam
U.S. Attorney Alicia Limtiaco shows appreciation to the trainers for their roles in the OCDETF Training held in Guam and Saipan, NMI
Participants at the OCDETF Training held in Saipan, NMINorthern West Virginia law enforcement officers recognized for outstanding investigationsRead the Press Release
WHEELING, WEST VIRGINIA – A variety of local, state, and federal law enforcement officers were recognized for outstanding contributions to regional law enforcement objectives and prosecutions during an awards ceremony today hosted by United States Attorney William J. Ihlenfeld, II.
Officers throughout the Northern District of West Virginia were honored today, including:
2016 Outstanding Prescription Drug Investigative Effort Award
The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, was recognized for its investigative efforts in the cases of United States v. Edita Milan, M.D. and United States v. Mario Blount. Milan, a physician with a medical practice in Bridgeport, West Virginia, and Blount, a licensed pharmacist and former mayor of Bridgeport, conspired to unlawfully distribute prescription painkillers. Milan was sentenced in May 2015 to 60 months in prison. Blount was sentenced in February 2015 to 36 months in prison.
Maryland Natural Resources Police Office Barry D. Ball was recognized for his investigative efforts in the case of United States v. Tressie Duffy, M.D. Duffy, a physician in Martinsburg, West Virginia, repeatedly signed blank prescription orders and allowed unlicensed members of her staff to issue prescriptions for narcotic medications to patients that had not been seen by a physician. Duffy is awaiting sentencing after she pled guilty in December 2015 to seven counts of “Distribution of Oxycodone.”
2016 Outstanding Drug Interdiction Award
The Mountaineer Highway Interdiction Team was recognized for its investigative efforts in the case of United States v. Shawn McClain. McClain was sentenced in March 2015 to 120 months in prison after he admitted to traveling from Ohio into West Virginia to sell heroin.
2016 Outstanding Drug Investigative Effort Award
The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, was recognized for its investigative efforts in the case of United States v. Brian Hall, et. al. Hall coordinated an interstate heroin trafficking operation in which heroin was transported from Maryland to locations in Pennsylvania, Virginia, and West Virginia. The drug distribution network was disrupted in June 2015 by a 163-count federal indictment targeting 41 defendants. Forty of the defendants have been convicted in federal court. Hall was sentenced in February 2016 to 100 months in prison for orchestrating the heroin trafficking scheme.
West Virginia State Police Sergeant Charles T. Kessel was recognized for his investigative efforts in the case of United States v. Noel Barrera Silva. Silva, a Mexican national living in Moorefield, West Virginia, was sentenced in May 2016 to 78 months in prison after he was discovered in possession of approximately four pounds of methamphetamine.
2016 Outstanding Firearm Investigative Effort Award
Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent Matthew H. Bassett was recognized for his investigative efforts in the case of United States v. Jarrud Dixon, et. al. Throughout 2013 and 2014, Dixon conspired with other individuals, including a licensed firearms dealer in Pocahontas County, West Virginia, to unlawfully transport firearms across state lines from West Virginia into Maryland. Dixon was convicted in February 2016 and is awaiting sentencing.
2016 Outstanding Healthcare Fraud Investigative Effort Award
Department of Health and Human Services Office of Inspector General Special Agent Scott A. Noullet and Department of Defense Office of Inspector General Special Agent Jennifer L. Jezewski were recognized for their investigative efforts in the case of United States v. Samer Kuzbari, M.D. Kuzbari, a physician in Fairmont, West Virginia, recently paid $440,232 to settle claims that he fraudulently requested reimbursement for medical services that were not actually rendered.
2016 Outstanding Investigative Effort Award
Federal Bureau of Investigation Special Agent Edward P. Ryan and Wheeling Police Department Detective Brandi N. Alderman were recognized for their investigative efforts in the case of United States v. Kevin Wick. Wick repeatedly traveled across state lines from West Virginia to Ohio for the purpose of engaging in unlawful sexual conduct with five minor victims. He was convicted in January 2106 and is awaiting sentencing.
The United States Attorney’s Awards ceremony was held at the United States Courthouse in Wheeling today and included remarks from Senior U.S. District Judge Frederick P. Stamp, Jr. and U.S. Attorney Ihlenfeld.
Minneapolis Man Sentenced for Transporting Women for ProstitutionRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on May 9, 2016, Ronnel Johnson, 31, Minneapolis, Minn., was sentenced before U. S. District Judge Ralph R. Erickson to serve three (3) years and four (4) months years in prison for Transportation for the Purposes of Prostitution. Judge Erickson also ordered that Johnson serve five (5) years supervised release and he must pay a $100 special assessment to the Crime Victims’ Fund.
This case came to the attention of law enforcement after the North Dakota Highway Patrol stopped a rental vehicle driven by Johnson on I-94 near Valley City, North Dakota. Johnson and his female passenger were traveling from Minneapolis, Minnesota, to Williston, North Dakota. When interviewed by law enforcement during the traffic stop, Johnson and his passenger gave conflicting stories about the purpose of their trip to Williston. A subsequent search of the vehicle revealed cell phones which contained text messages sent and received by Johnson which revealed that he was involved in directing prostitution. Johnson’s cell phone also revealed sexually explicit photographs of at least two women that were identical to photographs that ran in Backpage.com advertisements for commercial sex in western North Dakota.
One such victim depicted in photographs that were recovered from Johnson’s cell phone and the Backpage.com advertisement reported that Johnson had previously transported her to Williston, North Dakota, for the purpose of prostitution.
This case was investigated by the North Dakota Highway Patrol, North Dakota Bureau of Criminal Investigation, Minneapolis Police Department, and the Federal Bureau of Investigation.
Assistant U. S. Attorney Jennifer Puhl prosecuted the case.
Mexican citizen sentenced to 57 months in prison for illegally reentering the countryRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a man from Mexico was sentenced last week to 57 months in prison for re-entering the United States after removal.
Francisco Hernandez-Urtusoastigui, 37, of Sinaloa, Mexico, was sentenced Thursday by U.S. District Judge Patricia Minaldi on one count of illegal re-entry of a removed alien. According to the December 2, 2016 guilty plea, Lake Charles Police stopped the defendant for a traffic violation on July 28, 2015. He did not have identification and admitted to being in the country illegally. Hernandez-Urtusoastigui has been deported at least five times. He also has a previous federal conviction in 2009 and in 2012.
Homeland Security Investigations-Immigrations and Customs Enforcement and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Robert F. Moore prosecuted the case.
Mexican Mafia Member who Controlled Latino Street Gangs in Orange County Sentenced to 15 Years in Federal PrisonRead the Press Release
SANTA ANA, California – A longtime member of the Mexican Mafia prison gang who controlled Latino street gangs in Orange County for at least three decades was sentenced today to 15 years in federal prison after being found guilty earlier this year of federal racketeering offenses.
Peter Ojeda, 74, was sentenced this morning by United States District Judge James V. Selna, who said the defendant, notwithstanding his age, still represented a “danger to the community.”
A federal jury in January found Ojeda guilty of two offenses: conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO) and conspiracy to commit violent crimes in aid of racketeering. The jury found that Ojeda ordered murders and assaults while incarcerated in federal prison for a prior racketeering conviction.
Ojeda, who is also known as “Sana” and “The Big Homie,” has been in federal custody since he was indicted in the prior racketeering case in 2005.
“Ojeda is a career criminal and a Mexican Mafia leader, which means he is intimately familiar with the violence, drug trafficking, and extortion that fuels this criminal organization,” said United States Attorney Eileen M. Decker. “Prior criminal cases against Mr. Ojeda have not had any deterrent effect, but today’s sentence makes it unlikely that Mr. Ojeda will ever be able to walk freely on the streets where his criminal organization has caused so much harm.”
Ojeda was convicted by a jury that heard evidence during a two and half month trial before the United States District Court in Santa Ana. The jury found that both conspiracies involved plots to murder other gangsters as part of a turf war with a rival Mexican Mafia member who attempted to assert control over local street gangs after Ojeda was imprisoned in his prior case.
In relation to the RICO conspiracy, the jury found that Ojeda was involved in the operation and management of the Mexican Mafia’s activities in Orange County, which included conspiring to commit murder, extortion, and narcotics trafficking. Ojeda ordered Latino street gangs in Orange County to pay “taxes” that consisted of a portion of the proceeds the gangs earned from various criminal activities, including drug trafficking. In return, gang members were permitted to exert influence over their neighborhoods and territories and seek protection or assistance from the Mexican Mafia.
Ojeda’s girlfriend, Suzie Rodriguez, 53, was also found guilty in the RICO and VICAR conspiracies for acting as a messenger between Ojeda and local gang leaders while Ojeda was housed in a federal prison in Pennsylvania. During the trial, prosecutors argued that Rodriguez acted as Ojeda’s eyes, ears, and voice on the streets of Orange County. Judge Selna is scheduled to sentence Rodriguez on June 6, 2016.
The Mexican Mafia is a powerful and violent prison gang that controls drug distribution and other illegal activities within the California penal system and on the streets of Southern California by organizing Latino street gang members for the purpose of establishing a larger network for the Mexican Mafia’s illegal activities. If a street gang does not comply with the demands of the Mexican Mafia, the prison gang will order the assault or murder the offending gang’s members, whether they are in custody or on the streets.
In the prior federal case, Ojeda pleaded guilty to conspiring to violate RICO and conspiring to distribute narcotics. In late 2006, he was sentenced to 14 years in federal prison. It was while in federal prison that he participated in the subsequent conspiracy that led to his indictment, conviction, and today’s sentencing.
Ojeda’s conviction was the result of Operation “Black Flag,” an investigation conducted by the Santa Ana Gang Task Force. As a result of the investigation, 59 defendants were convicted on federal charges, and another 40 defendants were prosecuted by the Orange County District Attorney’s Office.
The Santa Ana Gang Task Force is made up of agents and officers with the Federal Bureau of Investigation; the Santa Ana Police Department; the Orange County Sheriff’s Department; the Bureau of Alcohol, Tobacco and Firearms and Explosives; and the California Department of Corrections and Rehabilitation. The Anaheim Police Department, the Los Angeles Sheriff’s Department and the United States Bureau of Prisons provided substantial assistance.
Media AdvisoryRead the Press Release
There will be a press conference held on Tuesday, May 10, 2016, at 2:00 p.m. at the United States Attorney’s Office, 111 7th Avenue SE, Cedar Rapids, Iowa, 52401. Randall C. Thysse, Special Agent in Charge of the Omaha Office of the Federal Bureau of Investigation (FBI) and others will discuss the arrests and search warrants executed at various locations across Iowa and Wisconsin during a multiagency investigation of a suspected methamphetamine ring.
The investigation is coordinated through the Organized Crime Drug Enforcement Task Force program of the United States Department of Justice and is being investigated by the FBI, Iowa Division of Narcotics Enforcement, Tri-County Drug Enforcement Task Force (Waterloo Police Department; Cedar Falls Police Department; Waverly Police Department; Bremer County Sheriff's Office; Black Hawk County Sheriff's Office; La Porte City Police Department; Evansdale Police Department; Hudson Police Department), Mid Iowa Drug Task Force (Marshalltown Police Department; Marshall County Sheriff's Office; Tama County), and Dubuque Drug Task Force (Dubuque Police Department; Dubuque County Sheriff's Office).
Press releases and interview opportunities will be available. Follow us on Twitter @USAO_NDIA.
Marion Man Pleads Guilty to Federal Drug ChargeRead the Press Release
ROANOKE, VIRGINIA – A Marion, Virginia man, who conspired with others to distribute methamphetamine, pled guilty today in the United States District Court for the Western District of Virginia in Roanoke to Federal drug trafficking charges, United States Attorney John P. Fishwick announced today.
Jason Dee Howell, 36, of Marion, Virginia, pled guilty today to one count of conspiring to distribute more than 500 grams of a mixture containing methamphetamine.
“Methamphetamine continues to be a growing threat throughout the Western District of Virginia,” United States Attorney John P. Fishwick Jr. said today. We will continue to work with our local, state and federal law enforcement partners to combat the rising tide of methamphetamine abuse in our communities.”
At sentencing, Howell, faces a mandatory minimum sentence of ten years in prison and a maximum statutory sentence of life in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Wythe County Sheriff’s Office, the Smyth County Sheriff’s Office and the United States Marshals Service. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Man Arrested at Nudist Park in Kansas Charged in Boston with Child PornRead the Press Release
KANSAS CITY, KAN. – An Olathe man arrested at a nudist park near Leavenworth appeared in U.S. District Court in Kansas City, Kan., Monday on child pornography charges.
Christopher Jon Saemisch, 58, Olathe, Kan., is charged in federal court in Boston with one count of distributing child pornography. He was arrested May 6 at the Gaea Retreat Center near Leavenworth, Kan.
A criminal complaint and affidavit filed in federal court in Boston alleges Saemisch, who is a registered sex offender, used the Internet to distribute child pornography to an inmate in the federal Bureau of Prisons’ custody at FMC-Devans in Ayer, Mass. The inmate has been incarcerated since 1977 following convictions for child exploitation offenses.
The affidavit alleges that in emails to the inmate Saemisch said he was collecting child pornography and wanted to travel to Europe to have sex with children. The affidavit alleges Saemisch used code words in his communication including “antiques” for child pornography and “puppies” for children.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Department of Homeland Security investigated. The U.S. Attorney’s Office for the District of Massachusetts is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
MS-13 Gangsters Convicted of Multiple Murders and Attempted MurderRead the Press Release
ALEXANDRIA, Va. – Six members of the street gang La Mara Salvatrucha, or MS-13, were convicted today by a federal jury for their roles in three murders and one attempted murder in Northern Virginia, among other charges.
“These violent gang members brutally murdered three men and attempted to murder a fourth,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Extreme violence is the hallmark of MS-13, and these horrific crimes represent exactly what the gang stands for. This was a highly complicated, death penalty eligible case with 13 defendants and more than two dozen defense attorneys. To say I am proud of our trial team and investigative partners is an understatement. I want to thank them for their terrific work on this case and for bringing these criminals to justice.”
“The defendants terrorized our local communities with senseless, depraved acts of threats, intimidation and violence,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “They murdered in the name of MS-13, but as this jury’s verdict makes clear, no gang can protect them from facing justice for their crimes. This verdict sends a clear message that the FBI will hold violent gangs and murderers fully accountable for their actions. I would like to thank the agents, analysts and prosecutors for their tireless efforts to eradicate gang violence in our communities.”
A total of 13 defendants were charged in this case. Of those, six defendants went to trial and were convicted of all charges. Six defendants pleaded guilty prior to trial, and one defendant was severed from the case and will have a separate trial at a later date. Please see the table at the end of this press release for additional information on each defendant.
According to court records and evidence presented at trial, on Oct. 1, 2013, Jose Lopez Torres, Jaime Rosales Villegas and others drove to Gar-Field High School in Woodbridge to murder a fellow gang member. However, one of the gang members in the car had not only alerted police to the murder plot, he also made recorded phone calls and wore a body wire to a meeting where the gang members, including Pedro Anthony Romero Cruz, who participated from prison on a contraband cell phone, planned the murder. The gang members’ vehicle was under surveillance that night, the victim had been warned to not be at school, and the informant was wearing a body wire.
According to court records and evidence presented at trial, on Oct. 7, 2013, Torres, Omar DeJesus Castillo, Juan Carlos Marquez Ayala, Araely Santiago Villanueva, Jose Del Cid, and three others murdered fellow gang member Nelson Omar Quintanilla Trujillo. The gang believed Trujillo was a snitch, and so the gang members lured him to Holmes Run Park in Falls Church, and brutally killed him by stabbing him with knives and slashing him with a machete. When they were done they buried Trujillo in a shallow grave. Several gang members returned a short time later and, with the assistance of Alvin Gaitan Benitez, reburied the body of Trujillo.
According to court records and evidence presented at trial, on March 29, 2014, Castillo, Benitez, Christian Lemus Cerna, Manuel Ernesto Paiz Guevara, Villanueva, Del Cid, and one other murdered Gerson Adoni Martinez Aguilar, a gang recruit, for breaking gang rules. Like Trujillo, the gang members lured him to Holmes Run Park and killed him. They stabbed him repeatedly, cut off his head, and then buried him in a shallow grave.
According to court records and evidence presented at trial, on June 19, 2014, Jesus Alejandro Chavez, Del Cid, and Genaro Sen Garcia murdered Julio Urrutia. Several gang members including Chavez, who had been released from prison eight days earlier, were out looking for rival gang members when they approached a group of young men, flashed their gang signs, and challenged them about their gang affiliation. During the exchange Chavez pulled out a gun and shot Urrutia in the neck at point blank range.
Each defendant convicted at trial faces a mandatory sentence of life in prison when sentenced. Villegas and Cruz face a maximum sentence of 10 years in prison on the conspiracy to commit murder charge, in addition to a consecutive minimum sentence of 10 years in prison for possession of a firearm in furtherance of a crime of violence. Villegas also faces a maximum sentence of 10 years in prison on the attempted murder charge. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler, Jr., Chief of Police, Fairfax County Police Department; Earl L. Cook, Chief of Police, Alexandria City Police Department; and Stephan M. Hudson, Chief of Police, Prince William County Police Department, made the announcement after the verdict was accepted by U.S. District Judge Gerald Bruce Lee.
Assistant U.S. Attorneys Julia K. Martinez and Tobias D. Tobler are prosecuting the case. The case was investigated by the FBI’s Washington Field Office, the Fairfax County Police Department’s Gang Investigations Unit, the Prince William County Police Department, and the Alexandria City Police Department.
The case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-306.
###
Name
Age, Hometown
Charges Convicted of
Sentence or
Sentencing Date
Pedro Anthony Romero Cruz
28, unknown
Conspiracy to Commit Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
July 15
Jose Lopez Torres
26, Falls Church
Conspiracy, Attempted, and Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
August 5
Jaime Rosales Villegas
31, Richmond
Conspiracy and Attempted Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
May 20
Juan Carlos Marquez Ayala
22, Falls Church
Murder in Aid of Racketeering
June 3
Omar Dejesus Castillo
26, Arlington
Two Counts of Murder in Aid of Racketeering
August 12
Alvin Gaitan Benitez
23, Falls Church
Murder in Aid of Racketeering, Accessory After the Fact
September 9
Christian Lemus Cerna
20, Falls Church
Murder in Aid of Racketeering
September 9
Araely Santiago Villanueva
18, Falls Church
Two Counts of Murder in Aid of Racketeering
Life sentence
Manuel Ernesto Paiz Guevara
21, Falls Church
Murder in Aid of Racketeering
September 9
Jose Del Cid
18, Alexandria
Two Counts of Murder in Aid of Racketeering
Two life sentences
Jesus Alejandro Chavez
25, Alexandria
Murder in Aid of Racketeering; Use of a Firearm During a Crime of Violence Resulting in Death; Felon in Possession of a Firearm
August 5
Genaro Sen Garcia
19, unknown
Murder in Aid of Racketeering
Life sentence