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Wednesday 4 May 2016
Silver Spring Man Convicted for Internet Romance Scheme in which Victims were Defrauded of over $600,000Read the Press Release
Greenbelt, Maryland – A federal jury convicted Evans Appiah, a/k/a Sean Carter, age 27, of Silver Spring, Maryland today for conspiracy, mail and wire fraud, and aggravated identity theft arising from an internet romance scheme in which the victims were defrauded of more than $600,000. Following the verdict, U.S. District Judge George J. Hazel ordered that Appiah be immediately taken into custody and detained pending sentencing, which is scheduled for August 29, 2016, at 2:00 p.m.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to testimony at his six day trial, Appiah and his co-conspirators searched online dating websites and initiated romantic relationships with male and female victims in order to obtain money from them. The relationships began with emails and instant messaging and escalated to telephone calls and primarily text messages. After gaining the victims trust, Appiah and his co-conspirators began asking for money for a variety of reasons, often invoking false stories and promises to convince the victims to send them money.
According to evidence presented at trial, from December 2013 through June 2015, Appiah opened and maintained accounts in order to receive money from the victims. Once the victims had deposited the funds requested by Appiah and the co-conspirators into the accounts controlled by Appiah, he disbursed the money by transferring it to other accounts, withdrawing cash, and by purchasing goods for shipment to co-conspirators outside of the United States. At least seven confirmed victims were defrauded of more than $600,000.
Appiah also used the name and identifying information of one victim in particular, while depositing one of the victim cashier’s checks into his own bank account.
Appiah faces a maximum sentence of 20 years in prison for the conspiracy, and for each of two counts of wire fraud and for mail fraud. In addition, he faces a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the U.S. Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom and Special Assistant U.S. Attorney Jennifer L. Wine, who are prosecuting the case.
Seymour Man Who Assaulted Girlfriend Sentenced to 42 Months in Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MAURICE EARLEY, 50, of Seymour, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 42 months of imprisonment, followed by three years of supervised release, for unlawful possession of a firearm by a convicted felon.
According to court documents and statements made in court, on June 28, 2013, EARLEY was arrested by Connecticut State Police after he physically assaulted his girlfriend. EARLEY punched the victim in the face while they were traveling on I-95 in Bridgeport, then pulled over, dragged her from the car, choked her and punched her several more times. The victim was able to escape and was treated at the hospital for a fractured nose, a fractured collar bone and other injuries.
A subsequent search EARLEY’s residence revealed a loaded 9mm handgun with an obliterated serial number, and 93 rounds of 9mm ammunition, including hollow-point bullets.
EARLEY’s criminal history includes felony convictions for drug trafficking and robbery offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
“It is our priority to prosecute all defendants who are prohibited from possessing firearms,” said U.S. Attorney Daly. “We are particularly concerned about guns in the hands of predators who commit acts of domestic violence preying on an especially vulnerable population. This defendant not only possessed a loaded firearm with an obliterated serial number, but also 90 rounds of ammunition. Domestic violence affects women and children across all socio-economic, cultural and racial lines. According to a 2011 Center for Disease Control survey, one in four women experience severe physical violence by an intimate partner. Each year, this country witnesses more than a million acts of domestic violence that result in hundreds of deaths.”
On February 19, 2015, a grand jury in Bridgeport returned an indictment charging EARLEY with one count of being a felon in possession of a firearm. He has been detained since March 2, 2015. On December 14, 2015, EARLEY pleaded guilty to the charge in the indictment.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Connecticut State Police and Seymour Police Department. The case was prosecuted by Assistant U.S. Attorney Alina P. Reynolds.
Saugus Store Owner and Brother Sentenced for Trafficking in Counterfeit iPhone ComponentsRead the Press Release
BOSTON – Two Peabody men were sentenced today in U.S. District Court in Boston for trafficking in counterfeit iPhone components at Accessory Depot, a store in Square One Mall in Saugus.
Mickey Punjabi, 36, was sentenced by U.S. District Court Judge Denise J. Casper to six months of home incarceration, two years of probation, 200 hours of community service and a fine of $7,500. His brother, Hitesh Punjabi, 33, was sentenced by Judge Casper to three months of home confinement, two years of probation, 100 hours of community service and a fine of $7,500. Both men were jointly ordered to pay restitution of $114,751 and forfeit assets seized from their home, which includes over $200,000 in cash and cash equivalents. In January 2016, the men were charged with conspiring to traffick in counterfeit goods, specifically iPhone components that bore Apple trademarks but were not genuine Apple products. Micky Punjabi, who owned the store, was also charged with trafficking in the counterfeit Apple components.
From December 2010 to February 2015, the Punjabis sold counterfeit Apple merchandise at Accessory Depot. Micky Punjabi also repaired genuine iPhones using counterfeit components purchased from sources outside the United States and from a supplier within the United States. Micky Punjabi knew that the goods he was selling were counterfeit, but sold and attempted to sell thousands of pieces of counterfeit merchandise.
At today’s sentencing, Judge Casper stated, “This is a serious crime…[T]here is harm not just to companies involved in terms of their reputation and the integrity of their products but also to the members of the public who bought those products.”
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
Retired Colonel in Orleans Parish Sheriff’s Office Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROY AUSTIN, 69, of St. Tammany Parish and a retired Colonel of the Orleans Parish Sheriff’s Office (“OPSO”), pled guilty today to conspiracy to commit wire fraud.
According to court documents, AUSTIN admitted that in his role as a Colonel in the Orleans Parish Sheriff’s Office, he arranged for security details through a private company (Austin Sales and Service) for local entities and events, including Mardi Gras Krewes, music and food festivals, and sporting events, and engaged in a scheme to defraud those local entities and events by padding the billing documents with names of individuals who did not in fact provide any security services (“Ghost Employees”).
Additionally, AUSTIN admitted that after submitting the fraudulently inflated invoices via interstate wires, AUSTIN kept a portion of the overbilled amount in the Austin Sales and Service corporate bank account for his own personal use. In some instances, AUSTIN drafted Austin Sales and Service corporate checks made payable to the Ghost Employees who did not work and then fraudulently endorsed those checks and deposited them into his personal bank account for his own personal use. AUSTIN also admitted drafting checks made payable to other OPSO employee(s)’ family members under the fraudulent guise of payments for detail work that in fact did not take place as those employee(s)’ share of the fraudulently collected funds.
AUSTIN faces statutory penalties of up to five years in prison, a $250,000 fine, and three years of supervised release. U.S. District Judge Kurt D. Engelhardt set sentencing for August 3, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter and would also like to acknowledge the assistance provided by the Louisiana Legislative Auditors. Assistant U.S. Attorney Sean Toomey is in charge of the prosecution.
Randolph County, WV man sentenced for role in multi-state painkiller, marijuana trafficking networkRead the Press Release
ELKINS, WEST VIRGINIA – Chad Allen Workman, 38, of Beverly, West Virginia, was sentenced today to 97 months in prison for his role in an oxycodone and marijuana distribution operation, United States Attorney William J. Ihlenfeld, II, announced.
Workman participated in an extensive and long-term multi-state drug trafficking operation. Workman, along with other individuals, conspired to transport large quantities of oxycodone and marijuana across state lines into West Virginia. The oxycodone was commonly transported from sources in Detroit, Florida and New Jersey. The marijuana was commonly obtained from sources in Pennsylvania and California. Workman further utilized the unlawful proceeds of the drug trafficking operation to purchase vehicles, real estate, and personal vacations.
Workman pled guilty in October 2015 to one count of “Money Laundering.” As part of the sentenced imposed today, Workman was ordered to pay a money judgment of $224,400 and to forfeit his interest in a Harley-Davidson Motorcycle.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force led the inquiry. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Upshur County Sheriff’s Office also investigated.
U.S. District Judge John Preston Bailey presided.
Prison Guard Convicted of Having Sex with InmateRead the Press Release
HOUSTON - A former prison guard at the Federal Detention Center in Houston has entered a guilty pleato one count of sexual abuse of a ward, announced U.S. Attorney Kenneth Magidson.
Samuel Hawkins, 51, of Houston, was charged by criminal information with engaging in a sexual relationship with an inmate while he was employed as a correctional officer. On or about Nov. 15, 2015, Hawkins did knowingly engage in a sexual act with an inmate who was officially detained at the Federal Detention Center.
U.S. District Judge Sim Lake accepted the plea today and has set sentencing for July 27, 2016. At that time, he faces up to 15 years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
The charges are the result of an investigation conducted by the Department of Justice - Office of Inspector General. Assistant U.S. Attorneys Andrew Leuchtmann and Ruben R. Perez are prosecuting the case.
Previously Deported Foreign National Pleads Guilty to Passport FraudRead the Press Release
SACRAMENTO, Calif. — Leonardo Cesar Pulido-Escamilla, 39, a Mexican national who previously resided in Yuba City and other California cities, pleaded guilty today to making a false statement in an application for a United States Passport, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Pulido-Escamilla fraudulently applied for a U.S. Passport in 2012, using another person’s name and birth certificate in connection with the application. Pulido-Escamilla had been deported from the United States in 1997 and 2004, and on March 20, 2016, he was apprehended by border patrol agents in Arizona.
This case is the product of an investigation by the U.S. Department of State’s Diplomatic Security Service. Assistant U.S. Attorney Nirav Desai is prosecuting the case.
Pulido-Escamilla is scheduled to be sentenced by United States District Judge Kimberly J. Mueller on July 20, 2016. Pulido-Escamilla faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Pittsburgh Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of violation federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
Paris Wilson, 24, pleaded guilty on Monday to three counts before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that from in and around October, 2013, and continuing thereafter to in and around May, 2014, Wilson conspired with others known to the grand jury to distribute and possess with intent to distribute one kilogram or more of heroin; Wilson also pleaded guilty to one count of employing or using a person under 18 years of age in drug operations and one count of conspiracy to carry and possess a firearm in relation to and in furtherance of a drug trafficking crime.
Judge Conti scheduled sentencing for Aug. 19, 2016 at 3 p.m. The law provides for a mandatory minimum of 10 years and up to a maximum total sentence of life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation that led to the prosecution of Paris Wilson. The task force is headed by the Federal Bureau of Investigation and is comprised of members drawn from the FBI Greater Pittsburgh Safe Street Task Force including Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, and the Pittsburgh Bureau of Police conducted the investigation leading to the Second Superseding Indictment and Superseding Indictments in this case.
Pittsburgh Man Charged with Distributing Fentanyl Resulting in Two Deaths, Three Non-Fatal OverdosesRead the Press Release
PITTSBURGH - A former Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of distribution and possession with intent to distribute fentanyl, resulting in serious bodily injury and/or death; and distribution and possession with intent to distribute heroin and fentanyl, United States Attorney David J. Hickton announced today.
The seven-count Superseding Indictment, which was returned yesterday, named Jocquinn Lamont Harris, 29, formerly of Pittsburgh, PA as the sole defendant.
According to the Superseding Indictment, on or about Nov. 29, 2015; Dec. 3, 2015; Dec. 4, 2015; and Dec. 5, 2015, Harris distributed and possessed with the intent to distribute fentanyl, resulting in serious bodily injury and/or the deaths of persons known to the grand jury. The Superseding Indictment further alleges that on or about Dec. 15, 2015, and Dec. 16, 2015, Harris distributed and possessed with intent to distribute heroin and fentanyl.
The law provides for a maximum total sentence of not less than 20 years and up to life in prison, a fine of $1,000,000, 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 Cindy K. Chung is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police conducted the investigation leading to the Superseding Indictment in this case.
A Superseding Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New York Man Admits Robbing Bergen County BankRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man who was on the FBI’s Ten Most Wanted Fugitive List in 1988 today admitted robbing a TD Bank in Oakland, New Jersey, in April 2013, U.S. Attorney Paul J. Fishman announced.
John Edward Stevens, 62, pleaded guilty before U.S. District Judge Claire C. Cecchi to Count Two of an indictment charging him with armed bank robbery.
According to documents filed in this case and statements made in court:
Stevens admitted that on April 15, 2013, he robbed a TD Bank in Oakland. After entering the bank, Stevens approached several bank employees while carrying a zipper pouch. He opened the zipper pouch, pulled out what appeared to be a black handgun, and brandished it at one of the bank employees. He then took several thousand dollars in cash and fled the scene.
Approximately 20 minutes after the robbery, law enforcement stopped a vehicle that was reported stolen. The driver of the stolen vehicle was identified as Stevens. Law enforcement arrested Stevens and located a TD Bank bag filled with money in the vehicle.
Stevens has been convicted of at least eight prior armed bank robberies in the Central District of California and the Southern District of Ohio. Under the terms of today’s plea agreement – if accepted by the court – Stevens will be sentenced to 240 months in prison and three years of supervised release. Sentencing is scheduled for Sept. 7, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s plea. He also thanked the Waldwick Police Department, the Oakland Police Department, the Ho-Ho-Kus Police Department and the Bergen County Sheriff’s Office for their contributions to the case.
The government is represented by Assistant U.S. Attorneys Melissa Wangenheim and Melissa Jampol of the Criminal Division in Newark.
Defense counsel: Lorraine Gauli-Rufo Esq., Verona, New Jersey
New York Business Owner Pleads Guilty to Filing False Tax ReturnsRead the Press Release
Failed to Report More than $650,000 in Income from Online Sales of Sunglasses and Eyeglasses
A Brooklyn, New York, business owner pleaded guilty today to two counts of filing false tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to court documents and information presented in court, Michael Stern, 48, was the founder and operator of Prestige Optical, a retailer of sunglasses and eyeglasses. For the 2006 and 2007 tax years, Stern filed false federal income tax returns with the Internal Revenue Service (IRS) on which he failed to report approximately $656,780 of income from online retail sales.
U.S. District Judge Nicholas G. Garaufis of the Eastern District of New York set sentencing for Sept. 9. Stern faces a statutory maximum sentence of three years in prison and a fine of $250,000 for each count of filing a false tax return. As part of his plea agreement, Stern also agreed to pay restitution to the IRS in the amount of $190,781.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Mark Kotila and Jack Morgan of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
New Orleans Area Merchant Sentenced for Food Stamp FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HENRIETTA KAMBI, age 59, of New Orleans, was sentenced after previously pleading guilty to Food Stamp Fraud for receiving approximately $132,768 from the United State Department of Agriculture based upon food stamp benefits through her store, CTN Grocery, located in New Orleans, that were not authorized.
U.S. District Judge Martin L.C. Feldman sentenced KAMBI to three years probation and restitution in the amount of $132,768.
According to court documents, grocery retailers who participate in the Supplemental Nutrition Assistance Program (SNAP), a federal government program formerly known as the Food Stamp Program, may only accept and redeem food stamp benefits in exchange for the sale of eligible food items. Retailers may not exchange food stamp benefits for cash or any other ineligible items of value such as tobacco products or alcoholic beverages. Store owner KAMBI knowingly presented for payment and redemption SNAP benefits which had been purchased in exchange for cash money and ineligible items through her store.
U.S. Attorney Polite praised the work of the United State Department of Agriculture, Office of Inspector General, in investigating this matter. Assistant United States Attorney Loan “Mimi” Nguyen was in charge of the prosecution.
Nevada Man Charged in $5 Million Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – A Nevada man was arrested today and charged with defrauding investors out of more than $5 million dollars, U.S. Attorney Paul J. Fishman announced.
Lee Vaccaro, 44, of Las Vegas, Nevada, was arrested by special agents of the FBI this morning and charged by complaint with one count of conspiracy to commit securities fraud and one count of securities fraud. He is scheduled to appear later today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this case and statements made in court:
Vaccaro and “Conspirator #1” allegedly sold investors interests in companies they controlled, and falsely represented to investors that the companies held warrants in eAgency, a California-based company developing mobile security products. Warrants are derivative securities that give the holder the right to purchase common stock at a specific price within a certain time frame.
Vaccaro and conspirator #1 allegedly made oral and written misrepresentations concerning the existence, number, validity, and term of eAgency warrants purportedly owned by the investment companies, as well as about the amount of money conspirator #1 had personally invested in and raised for eAgency, and conspirator #1’s current position at eAgency.
Vaccaro and conspirator #1 also allegedly created and showed to investors numerous forged documents purporting to reflect the issuance of warrants to entities controlled by Vaccaro, and the transfer of those warrants to a company controlled by conspirator #1. Most of the eAgency warrants purportedly transferred by Vaccaro to conspirator #1’s company had, in fact, never been issued.
Beginning in January 2011, the dollar amount of interests Vaccaro and conspirator #1 sold in the investment companies began to surpass the dollar amount of valid warrants held by the investment companies. Neither Vaccaro nor conspirator #1 disclosed to investors the risk that their investments would be diluted by the sale of additional interests in the companies.
Vaccaro and conspirator #1’s actions allegedly defrauded investors of more than $5 million.
The conspiracy to commit securities fraud count carries a maximum potential penalty of five years in prison and a fine of up to $250,000, or twice the gross amount of pecuniary gain or loss resulting from the offense. The securities fraud count carries a maximum potential penalty of 20 years in prison and a fine of up to $5 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Sanjay Wadhwa and the New Jersey Bureau of Securities, under the direction of Laura Posner.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
If you believe you are a victim of or otherwise have information concerning this alleged scheme, you are encouraged to contact the FBI at 973-792-3000.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Today’s charges are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov
Defense counsel: Robert C. Scrivo Esq., Newark
Navy Senior Chief Indicted in ID Theft and Bank Fraud SchemeRead the Press Release
NORFOLK, Va. – Clayton A. Pressley, 40, of Chesapeake, was indicted by a federal grand jury today on charges of bank fraud, aggravated identity theft, and unlawfully possessing identity documents.
According to the indictment, Pressley used his position as a senior enlisted member of a local military command to access personal identity information and identification documents of members of his command. Using that information, he applied for and received several loans from Pioneer Mid-Country Bank, pretending to be two of his subordinates. He also possessed identity documents at his residence for eight other members of his military command.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Tim Quick, Special Agent in Charge of NCIS Norfolk Field Office, made the announcement after the grand jury returned the indictment. Special Assistant U.S. Attorney Alyssa Nichol and Assistant U.S. Attorney Steve Haynie are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-66.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Navajo Man from Waterflow Charged with Federal Murder and Kidnapping ChargesRead the Press Release
ALBUQUERQUE – Tom Begaye, Jr., 27, an enrolled member of the Navajo Nation from Waterflow, N.M., made his initial appearance this morning in federal court in Farmington, N.M., on a criminal complaint charging him with kidnapping and murdering an 11-year-old Navajo child. Begaye remains in federal custody pending a preliminary hearing and a detention hearing both of which are scheduled for May 6, 2016, at the federal courthouse in Albuquerque, N.M. The criminal complaint alleges that on the evening of May 2, 2016, Begaye picked up the victim and a boy (witness) at a location near Shiprock, N.M., and drove them in his vehicle towards the Shiprock Pinnacle. It further alleges that the witness observed Begaye, who was carrying a piece of metal, take the victim out of his vehicle and walk towards a hill leaving the witness alone in the vehicle. Begaye allegedly returned about an hour later, still carrying the piece of metal but without the victim. Upon his return to the vehicle, Begaye allegedly told the witness to get out of the vehicle. Thereafter, the witness provided a description of Begaye and his vehicle to the police, and a second witness corroborated the descriptions.
According to the criminal complaint, on May 3, 2016, investigators located and arrested Begaye at a sweat lodge outside of Shiprock based on the descriptions provided by the two witnesses. Investigators located the victim’s body near Navajo Route 13, which is located within the Navajo Indian Reservation, and observed that the victim’s head was bloody and appeared to have sustained blunt force trauma.
If convicted on the kidnapping of a minor charge, Begaye faces a statutory mandatory minimum of 20 years and a maximum sentence of life imprisonment. If convicted on the murder charge, Begaye faces a statutory maximum sentence of life imprisonment. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The FBI and Navajo Nation Division of Public Safety investigated the case with assistance from the U.S. Marshals Service, New Mexico State Police, San Juan County Sheriff’s Office and the Farmington Police Department. Assistant U.S. Attorneys Niki Tapia-Brito and David Adams are prosecuting the case.
Begaye Criminal Complaint
Nanticoke Man Charged in Straw Purchase of FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal Grand Jury in Scranton indicted Damone Whitley, age 22, on May 3, 2016, with making false statements to a federally licensed firearms dealer.
According to United States Attorney Peter Smith, Whitley, a resident of Nanticoke, provided false information for the purchase of two firearms from a gun shop in that city on April 5, 2016. The indictment alleges that Whitley stated that he was the true buyer of the firearms when, in fact, he was buying them for others.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Prosecution has been assigned to Assistant U.S. Attorney Robert O’Hara.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is ten years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Monrovia Woman Arrested for Allegedly Pepper Spraying Mail CarrierRead the Press Release
LOS ANGELES – Postal Inspectors this morning arrested a Monrovia woman on federal charges of assaulting a mail carrier, who allegedly was subjected to racial epithets and then pepper sprayed in the face.
Ruby Guerrero Valenzuela, 64, was arrested on charges of assaulting the United States Postal Service employee in an incident on April 20 in Pasadena.
Valenzuela is expected to make her initial appearance this afternoon in United States District Court.
According to the affidavit in support of the criminal complaint, Valenzuela apparently believed that the mail carrier’s vehicle had cut her off at an intersection in Pasadena. Valenzuela shouted obscenities and followed the victim to her next stop, where Valenzuela ran up the victim, who had walked to the entrance of a building on Lake Avenue. According to witnesses, Valenzuela screamed additional obscenities and racial epithets at the victim before spraying the victim in the face with pepper spray, which caused the victim to suffer severe pain and blurred vision.
“The evidence in this case indicates that a postal carrier carrying out her duties was the victim of an unwarranted attack,” said United States Attorney Eileen M. Decker. “All federal employees should be able to carry out their duties without fear of attacks based on the performance of those duties.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge of assaulting a federal employee in a manner that inflicts bodily injury carries a statutory maximum penalty of 20 years in federal prison.
This case was investigated by the United States Postal Inspection Service, which received assistance from the Pasadena Police Department and the Monrovia Police Department.
Mexican national sentenced for methamphetamine trafficking in Hardy County, WVRead the Press Release
ELKINS, WEST VIRGINIA – Noel Barrera Silva, 27, a Mexican national living in Moorefield, West Virginia, was sentenced today to 78 months in prison for methamphetamine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Silva was discovered in possession of four pounds of methamphetamine during a traffic stop in Wardensville, West Virginia. He pled guilty in November 2015 to one count of “Possession with Intent to Distribute Methamphetamine.”
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug and Violent Crime Task Force and the West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Mexican National Sentenced for Illegal Use of a Social Security NumberRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SERGIO GALVEZ-VELAZQUEZ, age 40, a citizen of Mexico, was sentenced today after previously pleading guilty to the illegal use of a Social Security Number.
U.S. District Judge Sarah S. Vance sentenced GALVEZ-VELAZQUEZ to seven months imprisonment and ordered that he pay a special assessment of $100. Following completion of his sentence, GALVEZ-VELAZQUEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court records, GALVEZ-VELAZQUEZ illegally obtained a Louisiana Identification Card from the Louisiana DMV office in Houma by using a Social Security number that did not belong to him.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations, in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Mexican Drug Trafficker First to Plead Guilty in Multi-Drug Conspiracy Netting $1MRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Ariel Vergara, age 49, of Bear, Delaware, pled guilty yesterday in federal court to conspiracy to distribute methamphetamine and heroin. Vergara faces a mandatory minimum sentence of five years and a maximum sentence of forty years, a fine of $5 million, and four years of supervised release following his prison sentence. He is currently scheduled to be sentenced on August 17, 2016, by the Honorable Sue L. Robinson of the United States District Court for the District of Delaware.
Vergara’s plea is the first conviction resulting from a long-term Drug Enforcement Administration (“DEA”) Group 41 High Intensity Drug Trafficking Area (“HIDTA”) investigation known as “Operation Bear Trap.” The investigation involved the wiretap of five phones, seizures including more than $1,000,000, approximately 2.5 kilograms of cocaine, approximately one kilogram of crystal methamphetamine, and nine firearms. At his change of plea hearing, Vergara admitting to obtaining drugs from Mexico so that he and his associates could sell the drugs in the City of Wilmington, the greater New Castle County area, and southern Chester County, Pennsylvania. The investigation also revealed that Vergara sought to obtain drugs from other out of state sources in California.
According to charging documents, the investigation led to the Indictment of eight people in addition to Vergara:
• Leticia Beltran, age 32, of Wilmington, DE;
• Luis Bustos, age 35, of Wilmington, DE;
• Richard Cephas, age 51 of Wilmington, DE;
• Sergio Flores-Lopez, age 41, of Wilmington, DE;
• Jamal Maddox, age 31, of Wilmington, DE;
• Miguel Martinez, age 64 of Wilmington, DE;
• Juan Rosas-Guadarrama, age 24, of New Castle, DE; and
• Juan Carlos Segura-Lorzo, age 25, of Wilmington, DE;
U.S. Attorney Oberly stated, “This plea represents a significant achievement for law enforcement in Delaware. With the help of the DEA, HSI, and our HIDTA partners across the entire Delaware Valley, we were able to dismantle a significant group of drug traffickers with ties back to Mexico.”
“Today’s conviction sends a clear message that narcotics trafficking in Delaware will not be tolerated and the repercussions will be severe,” stated Special Agent in Charge Gary Tuggle. “As a result of this investigation, and efforts by both federal and local law enforcement the final chapter of this Narcotic Trafficking Organization is being written.”
“This guilty plea marks a great victory in our multi-agency effort against illegal narcotics trafficking in Delaware,” said Gregory C. Nevano, acting special agent in charge of HSI Philadelphia. “When we dismantle and cripple the organizations behind those drugs, we make an indelible impact on public safety in our communities.”
Chester County District Attorney Hogan stated, “Operation Bear Trap was a model of inter-agency cooperation to take on a large-scale drug dealing operation. Working separately, these law enforcement agencies are very good. But working as a team, we are unstoppable.”
DEA Group 41 is part of the New Castle County HIDTA, a collaborative effort established in January 2015 among federal, state, and local law enforcement agencies. This case would not have been possible without the substantial coordination and cooperation between DEA Group 41 and two other HIDTA agencies, the Chester County (Pennsylvania) District Attorney’s Office Drug Unit, and HSI Wilmington. Other agencies that provided assistance included: Newark Police Department, Kennett Square Police Department, Pennsylvania State Police, Delaware State Police, New Castle County Police Department, Wilmington Police Department, Delaware Probation and Parole, Wilmington SWAT, and Delaware State Police SORT.
The charges in the Indictment are only allegations. The defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted by Assistant United States Attorney Jennifer K. Welsh and Special Assistant United States Attorney Christopher L. de Barrena-Sarobe.
Management Firm Owner Admits to Stealing over $2.5 Million from Client Homeowner and Condo AssociationsRead the Press Release
Baltimore, Maryland – William Kyndall Francis, age 39, of Elkridge, Maryland pleaded guilty today to wire fraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
Francis owned and operated Legacy Investment and Management, Inc. (Legacy Inc.) and Legacy Investment and Management, LLC (Legacy LLC), which were both located at 10015 Old Columbia Rd. in Columbia, Maryland. Legacy Inc. and Legacy LLC (collectively Legacy) were both management firms that provided financial and property services primarily to homeowner and condominium associations (HOAs) in Maryland, Washington D.C. and Virginia in exchange for a monthly fee. One of the services that Legacy provided was management of the HOAs’ reserve funds, which were typically held in savings or money market accounts and were to be used to cover long term and unexpected capital expenses.
According to his plea agreement, from October 2011 to August 2012, Francis defrauded at least 51 of Legacy’s HOA clients by taking reserve funds that belonged to the HOAs. For many of the HOAs, Francis created false bank statements that he gave to the HOA representatives that falsely reflected that their reserve funds were intact and earning returns. In fact, Francis had spent the funds for his own personal and business benefit, including: $7,165.70 to Dogtopia, a dog grooming service; $2,339 to Delicate Touch Nails, a nail salon; $8,244.42 to the Washington Wizards; $1,000.01 to Bare Exposure and $3,848.67 to Pure Gold, adult entertainment clubs; $2,088.50 to A Platinum Plus Limousines; $3,700 to Shadow Room, a Washington D.C. night club; thousands of dollars for the purchase of clothing, liquor, restaurant meals, groceries and other living expenses; $40,025.07 for payroll for Legacy Inc. employees; and payment to AT&T.
The total loss caused by the fraudulent scheme was at least $2,573,753.92. Francis has agreed to the entry of a money judgment forfeiting $2.5 million.
Francis faces a maximum sentence of 20 years in prison and a fine of $250,000 for wire fraud. U.S. District Judge Ellen L. Hollander scheduled his sentencing for September 13, 2016, at 10:00 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the case.
Man indicted for two Canton bank robberiesRead the Press Release
A man was indicted for robbing two Canton banks last month, Acting U.S. Carole Rendon said.
Richard Ricky Hampton, 58, robbed the First Merit Bank on Atlantic Boulevard of $4,820 on April 8. Three days later, he robbed the Key Bank on Cleveland Avenue South of $2,183, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Linda Barr following an investigation by the FBI and the Stark County Sheriff’s Office.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment 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.
Leader of Drug Trafficking Organization Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Tampa, Florida – United States District Judge Charlene E. Honeywell has sentenced Isaias Villa, a/k/a “Fish” (44, Duluth, GA) to 21 years and 10 months in federal prison for conspiracy to distribute methamphetamine. He pleaded guilty in February 2016.
According to court documents, Villa began obtaining methamphetamine from Georgia in approximately 2013. He arranged for shipments of multiple kilograms of methamphetamine to be delivered to others in the Polk County area. He then directed co-conspirators to collect the drug proceeds and transport them to him in Georgia.
On September 3, 2015, Villa was arrested in a Winter Haven motel room. He had in his possession close to a half kilogram of methamphetamine and more than $30,000. On September 8, 2015, while in the Polk County Jail, Villa was recorded calling co-conspirators regarding the delivery of drug proceeds and methamphetamine. An additional $42,000 in drug proceeds was recovered as a result of those calls.
To date, the investigation has resulted in the federal convictions of five individuals and the seizure of approximately two kilograms of methamphetamine, more than $100,000, and homemade explosives.
This case was investigated by the Drug Enforcement Administration and the Polk County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Dan Baeza.
Justice Department Reaches $475,000 Settlement with Beaumont, Texas, to Resolve Disability Discrimination in Housing LawsuitRead the Press Release
The Justice Department today announced that the city of Beaumont, Texas, has agreed to pay $475,000 and change its zoning and land use practices to resolve a lawsuit alleging that it discriminated against persons with intellectual or developmental disabilities who sought to live in small group homes in the city’s residential neighborhoods. The consent decree must still be approved by the U.S. District Court for the Eastern District of Texas.
The lawsuit, filed on May 26, 2015, alleged that the city violated the Fair Housing Act and the Americans with Disabilities Act when it imposed a one-half mile spacing rule that prohibited many small group homes from operating in Beaumont. The suit further sought to prohibit the city from imposing fire code requirements that exceeded those imposed by the state of Texas as part of its certification and funding of such homes. These restrictions prohibited numerous persons with intellectual or developmental disabilities from living in Beaumont and resulted in the institutionalization in a nursing home of a woman who was forced to move out of her home. Although the city alleged that its restrictions were justified by a Texas statute, the state of Texas later clarified in a statement it submitted to the court during the litigation that neither the spacing requirement nor the heightened fire code requirements were required by Texas law.
Under the terms of the consent decree, the city will allow small group homes to operate in any residential district and will not subject such homes to fire code requirements that exceed the state’s requirements for certification of such homes. The city will also pay $435,000 in monetary damages to 11 individuals with disabilities, their family members and companion care providers who were subject to the city’s discriminatory code enforcement practices. The city will also pay $15,000 to the United States as a civil penalty and $25,000 to Disability Rights Texas, the organization that represents the individuals who filed the U.S. Department of Housing and Urban Development (HUD) complaints and intervened in the United States’ lawsuit. Beaumont will take other remedial measures, including implementing a comprehensive reasonable accommodation policy, requiring its officials to attend fair housing training and appointing a fair housing compliance officer.
“Persons with disabilities have the same right to live in and enjoy their communities as all other families do throughout our nation,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Justice Department will continue to eliminate discriminatory barriers that impede these individuals from doing so.”
“I applaud the parties for reaching this common-sense, fair agreement,” said U.S. Attorney John M. Bales of the Eastern District of Texas. “Beaumont is a great city in which to live and the prior restrictions now being set aside were inconsistent with that greatness. Now everyone can reside where they wish in an environment that is best for their lives.”
“Group homes provide a critical source of housing for persons with disabilities and their availability shouldn’t be limited by discriminatory practices,” said Gustavo Velasquez, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “Today’s settlement reaffirms HUD and the Justice Department’s commitment to ensuring that jurisdictions meet their obligation to adhere to the nation’s fair housing laws.”
The lawsuit arose as a result of complaints filed with HUD by persons with intellectual or developmental disabilities whose homes were closed and were threatened with closure under the city’s challenged housing restrictions. After conducting an investigation, HUD referred the matter to the Justice Department. The individuals who had filed complaints with HUD later intervened in the United States’ lawsuit. Today’s settlement resolves their lawsuit as well.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe that they have experienced unlawful housing discrimination may contact the Justice Department at 1-800-896-7743 or by e-mail at [email protected].
Beaumont Consent Decree
Jury Convicts Bank RobberRead the Press Release
HOUSTON – A federal jury sitting in Houston has convicted a 48-year-old Houston man for the robbery of two local banks and the attempted robbery of another as well as another charge of escape, announced U.S. Attorney Kenneth Magidson. The jury deliberated for approximately five hours before convicting Henry Lee London Jr. on all counts as charged following a three-day-trial.
During the trial, the jury heard that London escaped from the Leidel Sanction Center on Commerce Street in Houston on March 20, 2014, where he was serving the remainder of a federal sentence. He was wearing a plain blue baseball hat, black shirt, a tan backpack and shoes. Shortly thereafter, a man wearing the same clothing robbed the BBVA Compass bank on 43rd Street in Houston. The robber handed a teller a demand note that read “This is a robbery give large bills.”
Four days later, a man wearing the same clothing and plain blue baseball hat attempted to rob an IBC bank on Katy Freeway in Houston. He was unsuccessful. The teller testified that she was trying to get the money but the robber became frustrated and left. Less than an hour later, the same man wearing the same clothes and plain blue baseball hat robbed the Comerica Bank on Highway 6 South in Houston.
The jury saw videos and photos from each of the robberies and heard testimony from 10 witnesses. Three of the witnesses knew London well from his personal life and were able to identify him in all of the robberies.
London’s defense did not dispute the fact that he escaped from the halfway house. They also did not dispute that the banks were robbed, but contended London was not the robber. The jury was not convinced and found him guilty on all counts.
U.S. District Judge Melinda Harmon presided over the trial and has set sentencing for Aug. 12, 2016. At that time, London faces up to 20 years in federal prison on each of the bank robbery and attempted bank robbery convictions. He also faces another five years of imprisonment for the escape. London will remain in custody pending that hearing.
The FBI Bank Robbery Task Force which included the U.S. Marshals Service, sheriff’s offices in Harris and Fort Bend Counties and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Jennie Basile and Jill Stotts are prosecuting the case.
Judge Sends Armed Carjacker to Prison for More Than 40 YearsRead the Press Release
PHILADELPHIA - Desmond Janqdhari, 29, of Philadelphia, was sentenced on May 2, 2016, to 481 months in prison for armed carjacking, robbery, and firearms crimes. On January 28, 2016, a federal jury found Janqdhari guilty of robbery which interfered with interstate commerce (Hobbs Act robbery), armed carjacking, and two counts of using and carrying a firearm during a crime of violence.
On January 6, 2014, Janqdhari stole a 2005 Toyota Corolla by forcing the car’s owner to surrender her keys at gunpoint. On January 11, 2014, Janqdhari and co-defendant Keith Williams robbed the Wireless Factory Store at 5618 Germantown Avenue in Philadelphia. They stole $300 from the store while holding employees at gunpoint. Williams pleaded guilty and is awaiting sentencing.
In addition to the prison term, U.S. District Court Judge Michael M. Baylson ordered restitution to the victims in the amount of $440, five years of supervised release, and a $400 special assessment.
The case was investigated by the FBI and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Jose Arteaga.
Indictment Charges Philadelphia Man in Fraud Conspiracy Involving Tax and Other Financial CrimesRead the Press Release
PHILADELPHIA - A multi-count superseding indictment, unsealed Monday, charges Zaki M. Bey, 38, of Philadelphia, PA, with conspiracy to file false claims with the IRS, conspiracy to commit loan fraud and bank fraud, conspiracy to commit wire fraud and related charges, announced United States Attorney Zane David Memeger. According to the indictment, Bey conspired to file false federal income tax returns for tax years 2007, 2008, 2009 and 2010. Bey allegedly filed these tax returns claiming false withholding payments and Form 1099-OID (“Original Issue Discount”) income for his company, Natural Home Builders. Bey also allegedly assisted another individual in filing a false amended tax return with the IRS that included false withholding and Form 1099-OID income.
It is further alleged that beginning in 2007, Bey conspired with other individuals to submit false information in mortgage applications for at least 13 properties in the Germantown section of Philadelphia and in New Jersey. Bey was responsible in securing more than $2 million in residential mortgage loans on these properties, which were allegedly purchased by straw purchasers acting on Bey’s behalf. With the assistance of a co-conspirator who was a mortgage broker, Bey submitted loan applications to lenders containing false information about the straw buyers’ income, assets, extent of pre-existing liabilities and the intent to occupy the properties as primary residences. Bey and the co-conspirators also created and submitted altered payroll, wage and tax documents to lenders to support the fraudulent loan applications.
It is further alleged that beginning in 2010, Bey conspired with others to create false employment and payroll documents and make fraudulent loan applications made to lenders through auto dealerships in Philadelphia and New Jersey. Bey was able to obtain at least six automobiles purchased through straw buyers by submitting false loan applications based on income used from the fraudulent payroll documents.
If convicted, Bey faces a statutory maximum sentence of 253 years in prison, a possible fine, a period of supervised release, and a $1,500 special assessment.
This case was investigated by IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorney James Pavlock.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Honduran National Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN CARLOS FERRERA-RAMIREZ, age 44, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Court Judge Sarah S. Vance sentenced FERRERA-RAMIREZ to 9 months of incarceration, followed by 1 year of supervised release, and a $100 special assessment fee. Following completion of his sentence, FERRERA-RAMIREZ will be surrendered to the custody of U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on December 2, 2015, FERRERA-RAMIREZ was found in the United States after having been previously deported from the United States on June 24, 2013.
U.S. Attorney Polite praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Homestead Man Admits Participating in Heroin Trafficking ConspiracyRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to a charge of violation federal narcotics laws, United States Attorney David J. Hickton announced today.
Shelby Jeffries, Jr., 33, of Homestead, Pennsylvania, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that from in and around January 2014, and continuing thereafter to in and around April 2014, Jeffries, Jr. conspired with others known to the grand jury, to distribute and possess with intent to distribute one kilogram or more of heroin.
Judge Conti scheduled sentencing for Aug. 19, 2016 at 10:00 a.m. The law provides for a mandatory minimum of ten years and up to a maximum total sentence of life in prison, a fine of $10,000,0000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the indictment in this case. The task force is headed by the Federal Bureau of Investigation and is comprised of members drawn from the FBI Greater Pittsburgh Safe Street Task Force including Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Shelby Jeffries, Jr.
Hazleton Resident Charged with Trafficking in Heroin, Methamphetamine, and Cocaine, and Illegally Possessing FirearmRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury returned a superseding indictment on May 3, 2016, charging a 55-year-old Dominican national who resided in Hazleton with distributing heroin on two occasions between December 2015 and January 2016, trafficking in cocaine and methamphetamine, and possessing a firearm in connection with drug trafficking.
According to United States Attorney Peter Smith, the superseding indictment alleges that Juan Elvis Monsanto, who used the street name “Elvi,” distributed heroin on December 15, 2015, and January 28, 2016; possessed with intent to distribute cocaine and in excess of 50 grams of methamphetamine on February 10, 2016, and possessed a firearm in furtherance of drug trafficking.
The charges against Monsanto resulted from an investigation by the Drug Enforcement Administration (DEA) and Hazleton Police.
Monsanto faces a mandatory minimum sentence of 5 years in prison and a potential maximum sentence of life in prison, if he is convicted of the charges.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Georgia Man Pleads Guilty to Failure to Appear for SentencingRead the Press Release
BOISE - Terrance Barimah, 28, of Lawrenceville, Georgia, pleaded guilty today to failure to appear for sentencing, U.S. Attorney Wendy J. Olson announced. The defendant was indicted by a federal grand jury in Boise on July 15, 2015.
According to the plea agreement, Barimah admitted that on April 23, 2015, he pleaded guilty to the charge of illegal possession of device-making equipment. At the change of plea hearing, the defendant was informed that the sentencing was scheduled for July 8, 2015. On July 8, 2015, the defendant failed to appear for sentencing and the Court issued a warrant for the defendant’s arrest. On February 5, 2016, law enforcement authorities in Atlanta, Georgia, arrested the defendant on the warrant. The defendant admitted that his failure to appear for sentencing was willful.
The charge of failure to appear is punishable by up to 10 years in prison to be served consecutively to the sentence of imprisonment for any other offense, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing for both of the defendant’s cases is set for July 20, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the United States Secret Service with assistance from the United States Marshals Service.
Forty-Eight Alleged Members of Gangster Disciples Indicted on Federal Racketeering ChargesRead the Press Release
Forty-eight alleged members of the violent Gangster Disciples Gang – including the top leaders in Tennessee and Georgia – have been charged in two indictments and accused of conspiring to participate in a racketeering enterprise that included multiple murders, attempted murder and drug crimes.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John A. Horn of the Northern District of Georgia, U.S. Attorney Edward L. Stanton III of the Western District of Tennessee, Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Division and Special Agent in Charge A. Todd McCall of the FBI’s Memphis Division made the announcement.
A 12-count indictment was returned by a grand jury on April 27, and unsealed today in the U.S. District Court of the Northern District of Georgia. Thirty individuals were taken into custody today and two remain at large. A 16-count indictment was returned by a grand jury on April 22, and unsealed today in the U.S. District Court of the Western District of Tennessee. Fifteen individuals were taken into custody today and one remains at large.
“It is the very of core of law enforcement’s mission to ensure that everyone feels safe in their homes and neighborhoods, and it is a hard reality that many people across our country simply do not enjoy this basic sense of security because of gangs like the Gangster Disciples,” said Assistant Attorney General Caldwell. “That is why it is so significant that today’s indictments charge top leaders within the Gangster Disciples. There are a lot of people out there willing to join gangs, and eager to get easy money from criminal activity. But there are far fewer people with the wherewithal to lead organizations like the Gangster Disciples. These are the people who keep gangs like the Gangster Disciples alive, year in and year out, generation after generation. Cases like these make a difference, and I want to thank all the law enforcement and U.S. Attorney Office and Organized Crime and Gang Section prosecutors who worked so hard to build this case.”
“Atlanta has historically been resistant to the incursion of these national gangs, but unfortunately today’s indictment shows how this landscape has changed in just the last few years, as the Gangster Disciples are only one of several gangs that now boast a strong foothold,” said U.S. Attorney John Horn. “These charges show how a national gang like Gangster Disciples can wreak havoc here and in communities across the country, with crimes that run the gamut from murder to drug trafficking to credit card fraud. Within Georgia, the leadership of the Gangster Disciples resided mostly in metro Atlanta, yet the reach of the crimes committed extended into far south and west Georgia. We hope this indictment warns the leaders of these gangs that Atlanta is not a good place to do business.”
“As the indictment alleges, the Gangster Disciples flooded communities throughout the southeast and beyond with large amounts of drugs, and ruthlessly used fear, intimidation, and even murder to promote and protect their nationwide criminal enterprise,” said U.S. Attorney Stanton. “We will continue to work with our law enforcement partners to eliminate the terror gang members inflict upon our communities, and will exhaust every available resource, including the federal RICO statute, to bring them to justice. Dismantling violent gangs at the highest levels remains a priority for the U.S. Attorney's Office.”
“Today's Gangster Disciple arrests across nine states merely marks the first wave of the FBI’s strategic campaign to dismantle this violent criminal organization,” said Special Agent in Charge Johnson. “The Gangster Disciples are a highly organized and ruthless gang that recognizes no geographical boundaries, and its members have far too long indiscriminately preyed upon and infected the good people of our communities like a cancer. The FBI’s Safe Streets Gang Task Forces recognize no boundaries either, and we are committed to identifying, disrupting and dismantling the most violent gangs that seek to harm our communities. The FBI, along with our law enforcement partners, are committed to seeing this campaign through, and once and for all putting an end to the Gangster Disciples' reign of violence.”
According to court documents, the Gangster Disciples is a national gang active in more than 24 states with a highly organized structure including board members and governor-of-governors who each controlled geographic regions; governors, assistant governors, chief enforcers and chiefs of security for each state or regions within the state where the Gangster Disciples were active; and coordinators and leaders within each local group. To enforce discipline among Gangster Disciples and adherence to the strict rules and structure, members and associates were routinely fined, beaten and even murdered for failing to follow the gang’s rules.
The scope of the Gangster Disciples’ crimes is wide-ranging and consistent throughout the national operation. The RICO conspiracies charged here include attempted murder, narcotics trafficking, extortion, firearms crimes, obstruction of justice and other crimes in furtherance of the Gangster Disciples enterprise and to raise funds for the gang. In Georgia, for example, the Gangster Disciples brought money into the gang through, among other things, drug trafficking, robbery, carjacking, extortion, wire fraud, credit card fraud, insurance fraud and bank fraud.
The gang protected its power and operation through threats, intimidation and violence, including murder, attempted murder, assault and obstruction of justice. It also promoted the Gangster Disciples enterprise through member-only activities, including conference calls, birthday celebrations of the gang’s founder, the annual Gangster Ball, award ceremonies and other events.
The gang also provided financial and other support to members charged with or incarcerated for gang-related offenses and members who were fugitives from law enforcement were provided “safe houses” in which to hide from police. To introduce the criminal nature of the Gangster Disciples to a new member, older members and leaders in the various local groups ordered newer members to commit crimes, including murder, robbery and drug trafficking. Further, Gangster Disciples members would teach other members how to commit certain crimes, including frauds and would provide drugs on discount to other Gangster Disciples members for resale.
The Atlanta RICO conspiracy indictment names the following defendants and their alleged roles within the Gangster Disciples:
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Shauntay Craig, 37, of Birmingham, held the rank of Gangster Disciples board member;
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Alonzo Walton, 47, of Atlanta, held at different relevant times the positions of governor of Georgia and governor of governors, the latter position controlling Georgia, Florida, Texas, Indiana and South Carolina;
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Kevin Clayton, 43, of Decatur, Georgia, was the chief enforcer for the state of Georgia;
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Donald Glass, 26, of Decatur, served as a first coordinator of the eastside group of the Gangster Disciples;
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Lewis Mobely, 38, of Atlanta, was an enforcer;
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Vertious Wall, 40, of Marietta, was a first coordinator for the Macon Gangster Disciples group;
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Adrian Jackson, 37, of San Jose, California, was the national treasurer for the Gangster Disciples;
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Terrence Summers, 45, of Birmingham, held at different relevant times the positions of governor of Alabama and governor of governors for Georgia, Alabama, South Carolina and Florida;
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Markell White, 43, of Atlanta, was a regional leader in Macon;
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Ronald McMorris, 34, of Atlanta, was first coordinator of the Atlanta group;
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Perry Green, 29, of Decatur, was a member of the Gangster Disciples and acted as enforcer of a Gangster Disciples group;
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Dereck Taylor, 29, of Macon, was a member of the Gangster Disciples and acted as security for a Macon group;
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Alvis O’Neal, 37,of Denver, was a senior member of and money launderer for the Gangster Disciples;
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Jeremiah Covington, 32, of Valdosta, Georgia, was a first coordinator for the Valdosta region;
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Antonio Ahmad, 33, of Atlanta, was the chief of security for the state of Georgia;
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Eric Manney, 39, of Atlanta, was a member of the Gangster Disciples and stored multiple guns at his house;
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Quiana Franklin, 33, of Birmingham, served as treasurer for the state of Alabama;
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Frederick Johnson, 37, of Marietta, was a chief enforcer for a Gangster Disciples group;
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Charles Wingate,25, of Conyers, Georgia, was chief of security for a Covington, Georgia group;
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Vancito Gumbs, 25, of Stone Mountain, Georgia, was a member of the Gangster Disciples while at the same time serving as a police officer with the DeKalb County Police Department;
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Thomas Pasby, 42, of Cochran, Georgia, was a member of the Gangster Disciples;
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Denise Carter, 41, of Detroit, was a member of the Gangster Disciples;
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Carlton King Jr., 25, of Cochran, was a member of the Gangster Disciples;
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Kelvin Sneed, 26, of Cochran, was a member of the Gangster Disciples;
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Arrie Freeney, 32, of Detroit, was a member of the Gangster Disciples;
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Myrick Stevens, 26, of Madison, Wisconsin, was a member of the Gangster Disciples;
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Curtis Thomas, 45, of Cochran, was a member of the Gangster Disciples;
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Yohori Epps, 36,of Marietta, was a member of the Gangster Disciples; and
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Michael Drummound, 49, of Marietta, was a member of the Gangster Disciples.
In addition to the RICO conspiracy, Glass and Mobely are each charged with committing or attempting to commit murder in aid of racketeering and using firearms during those crimes. Mobely, Glass, Craig, O’Neal, Covington and Travis Riley, 35, of Wichita, Kansas are also charged with various drug distribution crimes and Mobely and Glass are further charged with related firearms crimes. Walton, Ahmad and Laderris Dickerson, 45, of Chicago, are also charged with carjacking and Walton and Dickerson are charged with a related firearms offense.
The Memphis RICO conspiracy indictment names the following defendants and their alleged roles within the Gangster Disciples:
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Byron Montrail Purdy, aka “Lil B” or “Ghetto,” 37, of Jackson, Tennessee, served as Gangster Disciples leader in Tennessee;
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Derrick Kennedy Crumpton, aka “38,” 32, of Memphis, served as Gangster Disciples leader in Tennessee;
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Demarcus Deon Crawford, aka “Trip,” 32, of Jackson, served as leader of security in Tennessee;
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Henry Curtis Cooper, aka “Big Hen,” 36, of Memphis, served as leader of security in Tennessee;
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Rico Terrell Harris, aka “Big Brim,” 43, of Memphis, served as leader of security in Tennessee;
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Shamar Anthony James, aka “Lionheart,” 37, of Memphis, held the rank of governor of a region in Memphis;
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Demario Demont Sprouse, aka “Taco,” 35, of Memphis, held the rank of chief of security of a region in Memphis;
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Robert Elliott Jones, aka “Lil Rob” or “Mac Rob,” 36, of Memphis, held the rank of governor of a region in Memphis;
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Denton Suggs, aka “Denny Mo” or “Diddy Mo,”40, of Memphis, held the rank of chief of security in a section of Memphis;
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Santiago Megale Shaw, aka “Mac-T,” 23, of Jackson, was a member of the security team or blackout squad in Jackson;
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Tarius Montez Taylor, aka “T,” 26, of Jackson, was a member of the security team or blackout squad in Jackson;
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Tommy Earl Champion Jr., aka “Duct Tape,” 27, of Jackson, held the rank of chief of security of Jackson;
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Cory Dewayne Bowers, aka “Bear Wayne,” 32, of Jackson, was associated with the Gangster Disciples and acted as a member of the security team in Jackson;
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Gerald Eugene Hampton, aka “G30,” 30, of Jackson, held the rank of assistant chief of security and was a member of the security team’s blackout squad in Jackson;
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Daniel Lee Cole, aka “D-Money,” 37, of Jackson, acted as assistant governor and assistant education coordinator for the Gangster Disciples in Jackson; and
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Tommy Lee Wilkins (Holloway), aka “Tommy Gunz,” 28, of Memphis, was a member of the security team in Memphis.
In addition to the RICO conspiracy, all 16 defendants are charged with a cocaine-distribution conspiracy, and Crawford, Shaw, Taylor, Champion and Bowers are charged with seven counts of attempted murder in aid of racketeering and using a firearm during the commission of those offenses.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The Atlanta case is being investigated by the FBI Atlanta's Safe Streets Gang Task Force (composed of members of the FBI, Alpharetta Police Department (PD), Atlanta PD, Clayton County PD, DeKalb PD, Forest Park PD, GA Dept. of Community Supervision, GA Dept. of Corrections, Gwinnett County PD, and Marietta PD), Internal Revenue Service Criminal Investigation, United States Marshal's Service and United States Postal Inspection Services. The Atlanta case is being prosecuted by Trial Attorney Hans B. Miller of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kim S. Dammers, Ryan K. Buchanan and Stephanie Gabay-Smith of the Northern District of Georgia.
The Memphis case is being investigated by a multi-agency task force consisting of the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Memphis Multi-Agency Gang Unit; the Memphis PD; the Shelby County, Tennessee Sheriff’s Office; the Jackson PD Gang Enforcement Team; the Tennessee Bureau of Investigation; the Madison County, Tennessee Sheriff’s Department; the 28th District West Tennessee Drug Task Force; the Tipton County, Tennessee, Sheriff's Office; the 26th Judicial District Attorney General’s Office; the 25th Judicial District Attorney General’s Office; the Atascosa County, Tennessee District Attorney’s Office; and the Shelby County District Attorney General’s Office. The Memphis case is being prosecuted by David N. Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Jerry Kitchen, Samuel Stringfellow, Beth Boswell, and Michelle Parks of the U.S. Attorney’s Office for the Western District of Tennessee.
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Fort Thompson Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Stuart Dion, age 32, was indicted on December 8, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 29, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 1, 2015, and December 8, 2015, Dion, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, knowingly failed to register and update his registration.
The charge is merely an accusation and Dion is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Dion was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Former South Carolina State Trooper Convicted of Conspiracy to Distribute A Controlled SubstanceRead the Press Release
SAN FRANCISCO- A federal jury convicted John David McGaha today of conspiracy to distribute a controlled substance, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Acting Special Agent in Charge Bertram Fairries.
McGaha, 36, of Myrtle Beach, South Carolina, was charged, along with six co-conspirators, with conspiracy to distribute a controlled substance and conspiracy to possess with intent to distribute a controlled substance as part of a superseding indictment filed March 24, 2015. McGaha was a state trooper with the South Carolina Highway Patrol at the time of the charged conduct. McGaha was accused of agreeing to accept $5,000 in exchange for providing security during a planned drug transaction.
The superseding indictment described a criminal conspiracy that worked for years laundering what the defendants believed to be the proceeds of cocaine trafficking. According to the indictment, some of the defendants eventually decided to become drug traffickers themselves. The evidence at trial showed that other members of the conspiracy asked McGaha to protect a drug transaction that would take place the following day. McGaha stated that the less he knew about the transaction the better, but he agreed to be present at the transaction in his marked Highway Patrol car. Later, McGaha was questioned by investigating agents from the Federal Bureau of Investigation and he admitted he met with the co-conspirators, that he was asked to be present in a parking lot while the business was conducted, that he knew the transaction was illegal, and that he accepted $5,000 to be present in the parking lot.
The jury found that McGaha conspired to distribute a controlled substance or to possess a controlled substance with the intent to distribute it, in violation of 21 U.S.C. § 846. Each of his co-conspirators pleaded guilty to charges related to the conspiracy.
The guilty verdict followed a four-day jury trial before the Honorable William Alsup, U.S. District Court Judge. McGaha remains free pending his sentencing scheduled for August 23, 2016, before Judge Alsup, in San Francisco.
Assistant U.S. Attorneys Lloyd Farnham and Andrew Dawson are prosecuting the case with the assistance of Michelle Alter. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former Federal Correctional Officer Sentenced to Seven Years for Sexually Abusing an InmateRead the Press Release
Earlier today at the federal courthouse in Brooklyn, New York, Rudell L. Clark Mullings, a former federal correctional officer at the Metropolitan Correctional Center (MCC) in Manhattan, was sentenced to seven years’ imprisonment by United States District Judge Edward R. Korman.
On February 14, 2015, Mullings was working as a correctional officer at the MCC. On that day, he was tasked with overseeing a female inmate, who was cleaning the hallways and corridors of the MCC. Mullings approached the inmate and sexually assaulted her in the corridor. Thereafter, Mullings returned to the hallway to ensure no security cameras had caught the assault. A DNA test later confirmed that Mullings had engaged in sex with the victim.
Mullings pled guilty to sexual abuse of an inmate on November 23, 2015.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Ronald G. Gardella, Special Agent in Charge, United States Department of Justice, Office of the Inspector General, New York Field Office.
In announcing the sentencing, Mr. Capers extended his grateful appreciation to the Office of the Inspector General.
The government’s case is being prosecuted by Assistant United States Attorney Hiral D. Mehta.
The Defendant:
RUDELL L. CLARK MULLINGS
Age: 54
Brooklyn, New YorkE.D.N.Y. Docket No. 15-CR-538 (ERK)
Federal Court of Appeals Affirms Conviction and Sentence of Aaron Johnson in Federal Farm Fraud CaseRead the Press Release
Fargo – U.S. Attorney Christopher C. Myers announced that on May 4, 2015, the United States Court of Appeals for the Eighth Circuit has affirmed the conviction and sentence of Aaron A. Johnson.
Aaron A. Johnson, along with his brother Derek M. Johnson, farmed potatoes in eastern North Dakota for many years. A federal grand jury indicted the two brothers for fraudulently damaging their own potato crops to obtain crop insurance and disaster payments and then lying to cover up their fraud from at least as early as 2002 until approximately January 20, 2010. In particular, the grand jury alleged that the brothers intentionally damaged their potato seeds and harvested crops through various means, including: (1) adding chemicals such as septic system products Rid-X and Flush to their potato seeds and harvested crops; (2) piling frozen potatoes onto their stored potatoes; and (3) adding extreme heat to their stored potatoes. At the conclusion of a two-week trial, on December 11, 2014, the jury returned verdicts convicting both brothers on all counts.
On March 9, 2015, U.S. District Judge Ralph R. Erickson sentenced Aaron Johnson to four years’ imprisonment, followed by five years of supervised release. Judge Erickson sentenced Derek Johnson to eighteen months’ imprisonment, followed by five years of supervised release. Judge Erickson also ordered forfeiture and restitution as joint obligations in the amount of $932,000. Derek Johnson did not appeal his conviction or sentence.
The United States Secretary of Agriculture (USDA) acknowledged the national significance of this case to the federal farm programs when the Secretary of Agriculture recognized the case with the USDA’s 2015 “Award for Excellence” recognition.
United States Attorney Christopher C. Myers also emphasized the importance of this prosecution on the federal farm programs: “Federal programs like the federal farm programs are based on an honor system. Unfortunately, there are a few who take advantage of this system and some, like Aaron Johnson, who brag about defrauding the system. Today’s affirmance of his conviction and sentence sends a clear message to all those honest farmers who follow the rules and hate seeing some people take advantage of the system.”
The case was investigated by the United States Department of Agriculture and the Risk Management Agency.
Assistant U.S. Attorneys Clare Hochhalter and Nick Chase prosecuted the case.
Father of Investment Banker Sentenced in Manhattan Federal Court for Million-Dollar Insider Trading SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ROBERT STEWART, a/k/a “Bob,” was sentenced to four years’ probation, with the first year to be served in home detention, and $150,000 in forfeiture for conspiring to use inside information provided by Sean Stewart, the defendant’s son and co-conspirator, to trade and cause another to trade in the securities of five different health care companies. The insider trading conspiracy spanned over four years and generated profits of approximately $1.16 million, with STEWART himself reaping approximately $150,000 of those gains. ROBERT STEWART pled guilty on August 12, 2015, to one count of conspiracy to commit securities fraud and fraud in connection with a tender offer before the Honorable James C. Francis, United States Magistrate Judge. U.S. District Court Judge Laura Taylor Swain imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Robert Stewart received nonpublic mergers and acquisitions information from his investment banker son, and then used this illegal edge to earn substantial trading profits. Stewart has admitted to violating federal securities laws and now stands a convicted felon.”
According to the Complaint, Indictment, other documents filed in the case, and statements made in open court:
In early 2011, Sean Stewart, who at the time held the position of Vice President in the Healthcare Investment Banking Group of a global bank headquartered in Manhattan (“Investment Bank A”), began tipping his father, ROBERT STEWART, with nonpublic information about upcoming mergers and acquisitions. The first of these deals involved the acquisition of Kendle International Inc. by INC Research, LLC, which was announced publicly on May 5, 2011. Sean Stewart worked on the deal, representing Kendle. ROBERT STEWART made about $7,900 in profits on purchases of Kendle stock executed in February and March of 2011. When questioned about his Kendle trades by the Securities and Exchange Commission in May 2013, ROBERT STEWART reported that he used the proceeds of those trades to pay expenses related to Sean Stewart’s June 2011 wedding.
The second deal about which Sean Stewart tipped ROBERT STEWART was the acquisition of Kinetic Concepts, Inc. (“KCI”) by Apex Partners, announced on July 13, 2011. Although ROBERT STEWART purchased some stock in KCI based on Sean Stewart’s tip, he sold that stock before the acquisition was announced, around the same time that Sean Stewart learned the Financial Industry Regulatory Authority was conducting an inquiry into ROBERT STEWART’s Kendle trading.
Also around this time, in the spring of 2011, ROBERT STEWART expressed a concern to Richard Cunniffe, a co-conspirator and cooperating witness, that ROBERT STEWART was “too close to the source” to be trading KCI stock in his own account, and asked Cunniffe to make purchases of KCI call options for ROBERT STEWART in Cunniffe’s brokerage account. Cunniffe agreed to do so, and also mirrored for his own benefit the KCI trades that ROBERT STEWART was directing.
When the KCI/Apax Partners deal was announced, ROBERT STEWART and Cunniffe reaped profits totaling approximately $107,790. Around this time, ROBERT STEWART told Cunniffe that the source of the KCI tip and the earlier Kendle tip had been ROBERT STEWART’s son. Later, around the spring of 2012, ROBERT STEWART clarified for Cunniffe that the son in question was Sean Stewart, who worked on the “sell side” on Wall Street.
In October 2011, Sean Stewart left Investment Bank A. A few months later, he joined an investment banking advisory firm headquartered in Manhattan (“Investment Bank B”) as a Managing Director.
During Sean Stewart’s tenure with Investment Bank B, based on tips concerning nonpublic acquisition-related information supplied by Sean Stewart, ROBERT STEWART had Cunniffe conduct options trading in advance of the public announcements of three more deals: (1) the acquisition of Gen-Probe Inc. by Hologic, Inc., announced on April 30, 2012; (2) the acquisition, by tender offer, of Lincare Holdings Inc. by Linde AG, announced on July 1, 2012; and (3) the acquisition of CareFusion Corp. by Becton, Dickinson & Co. (“Becton”), announced October 4, 2014. Investment Bank B represented Hologic in connection with its acquisition of Gen-Probe; Linde in connection with its acquisition of Lincare; and CareFusion in connection with its acquisition by Becton. The profits that ROBERT STEWART and Cunniffe reaped from illegal insider trading in advance of the announcements of these three deals totaled over $1 million.
To try to avoid detection for their crimes, ROBERT STEWART and Cunniffe refrained from speaking explicitly about their trading over the phone or via e-mail, sometimes using codes to hide their criminal activity from authorities who might be listening to their phone calls or reading their email. Other steps ROBERT STEWART and Cunniffe took to avoid detection included trying to discuss their trading at face-to-face meetings and adopting a profit-splitting mechanism that had Cunniffe paying ROBERT STEWART his portion of the illegal proceeds in small increments, over time, typically in cash.
In March and April of 2015, Cunniffe recorded meetings he had with ROBERT STEWART. During one such meeting, ROBERT STEWART accepted a payment of $2,500 cash from Cunniffe, which was the balance of the proceeds owed to ROBERT STEWART for profitable trading executed in Cunniffe’s account in advance of the CareFusion acquisition announcement. Also during this meeting, ROBERT STEWART admitted that Sean Stewart once chastised him for failing to make use of a tip, saying, “I can’t believe I handed you this on a silver platter and you didn’t invest in it.”
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ROBERT STEWART, a/k/a “Bob,” 61, of North Merrick, New York, was sentenced to four years’ probation, with the first year to be served in home detention, $150,000 in forfeiture, and a $100 special assessment.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and also thanked the Securities and Exchange Commission, which has brought civil actions against the defendant.
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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Sarah E. McCallum and Brooke E. Cucinella are in charge of the prosecution.
Fatal Car Crash in Great Smoky Mountains National Park Nets Driver 36 Months in Federal Prison for Involuntary ManslaughterRead the Press Release
KNOXVILLE, Tenn. – On May 4, 2016, Joshua Michael Sizemore, 26, of Morristown, Tenn., was sentenced by the Honorable Thomas W. Phillips, Senior U.S. District Judge, to serve 36 months in federal prison for involuntary manslaughter for killing Ashley Marie Trent. Upon his release from prison, he will be supervised by the U.S. Probation Office for three years.
In November 2015, Sizemore pleaded guilty to the offense described above. According to documents on file with U.S. District Court, on Oct. 4, 2014, after drinking alcohol, Sizemore crashed his car while driving within the Great Smoky Mountains National Park (GSMNP). At the time of the crash, he had three passengers in his car. Two of the three suffered serious bodily injuries. The third, Trent, suffered multiple blunt force injuries resulting in her death. Sizemore’s car contained a black box that recorded the car’s speed at 97 miles per hour two seconds prior to the crash in a 45 mile per hour zone on the GSMNP Spur.
The case was investigated by the National Park Service. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
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Escaped Prisoner Pleads Guilty to Assaulting a Federal Officer in Order to Evade CaptureRead the Press Release
TULSA, Okla.—Ronald Gene Thomas, 38, pleaded guilty in federal court today to the charge of Assaulting a Federal Officer, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. United States District Court Judge John E. Dowdell will sentence Thomas on July 13, 2016.
On June 8, 2015, Thomas escaped from the Jackie Brannon Correctional Center in McAlester, Oklahoma. A team of law enforcement officers were assembled to apprehend Thomas, which included: The United States Marshals Services in the Eastern and Northern District of Oklahoma, the Oklahoma Department of Corrections Investigators, and the Eastern Oklahoma Violent Crimes Fugitive Task Force.
On June 9, 2015, law enforcement tracked Thomas to a home in Sapulpa, Oklahoma. Thomas was spotted driving a truck and ordered to surrender. However, Thomas drove his truck straight at a Deputy United States Marshal in order to force him to get out of his way so he could evade capture. Thomas avoided capture that day, but he was apprehended days later after a high speed chase.
“Law enforcement officers put their lives on the line every day they go to work in order to keep the public safe. The safety of those officers is a paramount concern to the United States Attorney’s Office,” stated United States Attorney Williams.
This case was investigated by the United States Marshals Services in the Eastern and Northern District of Oklahoma, the Oklahoma Department of Corrections Investigators, and the Eastern Oklahoma Violent Crimes Fugitive Task Force. Assistant United States Attorney Neal C. Hong prosecuted the case.
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Eighth Circuit Court of Appeals Affirms Conviction and Sentence of Belle Fourche Man for Commercial Sex TraffickingRead the Press Release
United States Attorney Randolph J. Seiler announces that the Eighth Circuit Court of Appeals has affirmed the federal conviction and sentence of a Belle Fourche, South Dakota, man.
Jerry Lane Golliher, age 33, was convicted in October of 2014, in federal district court in Rapid City of Commercial Sex Trafficking. The conviction stemmed from Golliher attempting to have sex with a 13 year-old girl for $150 during the 2013 Sturgis Motorcycle Rally. In February of 2015, the district court sentenced Golliher to 15 years’ imprisonment.
During his trial, the federal jury heard that Golliher negotiated online with an undercover agent posing as a “pimp” to engage in sexual acts with a 13 year-old girl in exchange for money, and that he showed up at the meeting time and place with the appropriate amount of money, and confirmed he was there to have sex with the girl.
In his appeal, Golliher argued that: (1) trial counsel was ineffective, prejudicing Golliher’s defense; the district court, the Honorable Karen E. Schreier, U.S. District Court Judge for the District of South Dakota, erred by (2) committing prejudicial error in refusing to admit evidence offered by Golliher in support of his defense; and (3) abused its discretion by not allowing the jury to review trial testimony during deliberations; and (4) the government’s misconduct deprived Golliher of a fair trial.
In the published opinion, the federal court of appeals affirmed the district court in all respects.
Assistant U.S. Attorneys Sarah B. Collins and Ben Patterson prosecuted the case at trial, and Assistant U.S. Attorney Kevin Koliner handled the appeal for the government. The investigation was conducted jointly by the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office.
Eight Charged in Drug Conspiracy Operating in Rutherford and Cleveland CountiesRead the Press Release
ASHEVILLE, N.C. – United States Attorney Jill Westmoreland Rose announced that eight individuals are facing multiple federal drug charges for their involvement in a drug conspiracy operating in Rutherford and Cleveland Counties. A criminal indictment was returned on April 21, 2016, and was unsealed today in federal court. Law enforcement arrested yesterday six of the eight charged during an early morning round-up. One defendant was previously in custody and one has not been arrested yet.
C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Sheriff Chris Francis of the Rutherford County Sheriff’s Office and Sheriff Alan Norman of the Cleveland County Sheriff’s Office join U.S. Attorney Rose in making today’s announcement.
According to allegations contained in the criminal indictment, from on or about May 2015 to about January 2016, the defendants operated as a drug conspiracy responsible for trafficking cocaine and crack cocaine in and around Rutherford and Cleveland Counties. Over the course of the investigation law enforcement have seized narcotics and three firearms.
The eight defendants named in the 22-count indictment are each charged with conspiracy to distribute cocaine and crack cocaine and related drug offenses. They are:
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Kevin McArthur Bailey, 37, of Shelby, N.C. (previously in custody)
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James Rollins Glover, Jr., 30, of Spindale, N.C. (arrested)
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Anthony Price Laney, 34, of Forest City, N.C. (arrested)
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Lonnie McDowell, 65, of Shelby, N.C. (arrested)
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Craig Vinshun Mosley, 32, of Forest City, N.C. (not arrested yet)
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Justin Latrey Mosley, 26, of Forest City, N.C. (arrested)
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Vincent G. Mosley, 55, of Forest City, N.C. (arrested)
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Heather Michelle Shehan, 28, of Rutherfordton, N.C. (arrested)
(See chart below for federal charges and penalties for each defendant).
In making today’s announcement, U.S. Attorney Rose said, “The arrests in this case are part of my office’s ongoing effort to combat drug trafficking throughout our district.I want to thank all the law enforcement agencies that participated in this investigation for joining forces in our fight against drug distribution and the violence that comes with drug trafficking.”
“The Rutherford County Sheriff’s Office is committed to reducing drug availability and the negative side effects that come along with illegal narcotics distribution. We believe working with our local, state, and federal partners to build and take strong cases to the US Attorney's Office for prosecution is an extremely effective strategy. Without our strong working relationship with the ATF, the results of this investigation and its long lasting positive impacts on our communities would not be possible. I am grateful for these valuable partnerships,” said Rutherford County Sheriff Francis.
The defendants will appear in federal court today in Asheville before a U.S. Magistrate Judge. The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville is handling the prosecution.
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Edgemont Man Indicted for Multiple OffensesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Edgemont, South Dakota, man has been indicted by a federal grand jury for Transportation of a Minor, Attempted Enticement of a Minor Using the Internet, and Transfer of Obscene Material to a Minor.
Darren Scott Heller, age 48, was indicted on March 22, 2016. Heller appeared before U.S. Magistrate Judge Daneta Wollmann on April 29, 2016, and pleaded not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 10 years up to life imprisonment and/or a $250,000 fine, 5 years up to lifetime supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Heller transporting a minor female intending to engage in sexual activity with her, and using the internet and cellular connections to attempt to persuade her to engage in sexual activity and to send her obscene material. The charges are merely an accusation and Heller is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Heller was released on bond pending trial.
Eagle Woman Pleads Guilty to Obtaining Controlled Substances by Fraud and Identity TheftRead the Press Release
BOISE - Susan Roberts, 57, of Eagle Idaho, pleaded guilty today in United States District Court to obtaining controlled substances by fraud and identity theft by unauthorized use of a means of identification, U.S. Attorney Wendy J. Olson announced.
According to the filed plea agreement, Roberts worked with a medical center that had offices in Nampa and Boise, Idaho. As a result of her employment, she had access to doctors’ names and DEA numbers and knowledge of the prescription writing process. Between October 2014 and February 2015, Roberts knowingly and intentionally forged approximately eleven prescriptions for hydrocodone-acetaminophen 10-325, a Schedule II controlled substance. In particular, she forged prescriptions using the names of Dr. H. and Dr. A, and using their assigned DEA registration numbers. These were actual doctors and their names and DEA numbers constituted means of identification as defined at 18 U.S.C. § 1028(d)(7). Roberts presented the forged prescriptions to pharmacies, and received by fraud approximately 1,320 dosage units (pills) of hydrocodone-acetaminophen 10-325, which is commonly referred to by the name brands Norco, Vicodin, or Lortab.
The charge of obtaining controlled substances by fraud is punishable by up to four years in prison, three years of supervised release, and a $250,000.00 fine. Identity theft by unauthorized use of a means of identification is punishable by up to five years prison, three years of supervised release, and a $250,000 fine. Prison can be up to 15 years if the offense obtained anything of value aggregating $1,000 or more during any one year period.
Sentencing is scheduled for July 27, 2016, before Senior U.S. District Judge Edward J. Lodge.
The case was investigated by the DEA Office of Diversion Control, assisted by the Tactical Diversion Squad.
Detroit man pleads guilty to role in interstate heroin trafficking networkRead the Press Release
CLARKSBURG, WEST VIRGINIA – Draylon Eric Beecham, 40, of Detroit, Michigan, pled guilty to heroin trafficking today, United States Attorney William J. Ihlenfeld, II, announced.
Beecham participated in a heroin trafficking network designed to transport heroin across state lines from Michigan to West Virginia for redistribution and sale. Beecham was among fourteen individuals charged with heroin trafficking when three separate federal indictments disrupted the drug trafficking scheme in February 2016.Specifically, Beecham sold heroin in January 2015 near an elementary school in Monongalia County, West Virginia. He pled guilty today to one count of “Distribution of Heroin within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.U.S. Magistrate Judge Michael John Aloi presided.
Commercial driver’s license skills examiner pleads guilty to falsifying test resultsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Louisiana third party commercial driver’s license skills examiner pleaded guilty to falsifying test results by indicating a passing grade for driving skills tests that never took place.
Christopher D. Pender, 40, of Stonewall, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of making and using a false writing and document. According to the guilty plea, Pender, who was certified to administer commercial driver’s license skills tests, provided an applicant with a “Commercial Driver’s Skills Test Certificate” in November of 2014 when the applicant had not even taken, much less passed, the federally required test. He did this in exchange for cash, which allowed the applicant to fraudulently obtain a Louisiana commercial driver’s license.
Pender faces a maximum penalty of five years in prison, three years of supervised release and a $250,000 fine. Sentencing is scheduled for September 8, 2016.
The U.S. Department of Transportation Office of Inspector General and the Louisiana State Police conducted the investigation. Assistant U.S. Attorneys William J. Flanagan and Michael O’Mara are prosecuting the case.
Cleveland, Va. Man Pleads to Federal Gun ChargesRead the Press Release
ABINGDON, VIRGINIA – A Russell County man, who was prohibited from possessing firearms due to previous criminal convictions, pled guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon to being in possession of a variety of guns, guns parts and a blasting cap, United States Attorney John P. Fishwick Jr. announced.
Roger Allen Combs, 50, of Cleveland, Virginia, pled guilty yesterday in District Court to one count of possession of an explosive device by a convicted felon, one count of possession of a firearm not registered on the National Firearms Registry and Transfer Record and one count of being a convicted felon illegally in possession of a firearm.
“Keeping illegal guns out of the hands of prohibited users is critical in keeping our communities safe,” United States Attorney John P. Fishwick Jr. said today. “We want to continue to work with our partners in law enforcement to find these illegal guns and get them off the streets.”
According to evidence presented at previous hearings by Russell County Commonwealth’s Attorney and Special Assistant United States Attorney Brian Patton, Combs, who has several prior criminal convictions, was observed by law enforcement coming in and out of a storage unit in Russell County with a bag. Law Enforcement officers executed a traffic stop on a vehicle Combs was traveling in and found a firearm. Based on that evidence, officers obtained a search warrant for the storage unit where they found several guns, parts of guns, ammunition and a blasting cap.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Russell County Sheriff’s Office and the Virginia State Police. Russell County Commonwealth’s Attorney and Special Assistant United States Attorney Brian Patton prosecuted the case for the United States.
Cleveland men indicted for cocaine conspiracyRead the Press Release
Two Cleveland men were indicted for conspiring to possess with intent to distribute cocaine, said Acting U.S. Attorney Carole S. Rendon.
Indicted are Noel Del Valle Cruz, 31, and Carlos Juan Torres Mendoza, 36.
They are accused of conspiring to distribute 500 grams or more of cocaine between January and April, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the U.S. Postal Inspection Service.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment 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.
Cleveland man indicted on firearms and assault chargesRead the Press Release
A federal grand jury returned a three-count indictment charging Maurice J. Sinkfield, 33, of Cleveland, with assaulting federal officers as well as firearms offenses, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
The indictment alleges that Sinkfield, who was wanted on an arrest warrant, assaulted a Deputy U.S. Marshal and a Special Deputy U.S. Marshal with a motor vehicle. Sinkfield also possessed a firearm and ammunition despite prior convictions for robbery and domestic violence that precluded him from having firearms.
Assistant United States Attorney Megan R. Miller is prosecuting the case following an investigation by the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment 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.
California man indicted for bringing a kilo of methamphetamine to ClevelandRead the Press Release
A federal grand jury returned a two-count indictment charging a California man with trafficking methamphetamine, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and U.S. Drug Enforcement Administration Special Agent in Charge Timothy J. Plancon.
George Schepp, 53, brought in more than one kilogram of methamphetamine for distribution in the Cleveland area in April. Based on the methamphetamine’s purity, Schepp trafficked into Cleveland at least 10,000 doses of methamphetamine.
Metroparks rangers seized methamphetamine, cocaine, ecstasy, LSD, GHB and marijuana during a traffic stop earlier this year. That led to information that Schepp regularly brings two to three pounds of methamphetamine to Cleveland from the Los Angeles area. Schepp normally drove the methamphetamine to Cleveland but sometimes flew it in, according to court documents.
Schepp was arrested on April 10 at the baggage claim area at Cleveland Hopkins Airport. This happened after a drug dog alerted to the presence of narcotics on Schepp’s suitcase, according to court documents.
“This defendant brought drugs worth tens of thousands of dollars into our community from California,” Rendon said. “The law enforcement agents who worked this case should be credited for turning routine police work into a major drug bust.”
Plancon said: “Methamphetamine is a dangerous and addictive drug. Thanks to good investigative work and cooperation between our law enforcement partners, we have successfully halted this individual from regularly importing large amounts of this addictive drug into Ohio to be distributed and ultimately consumed.”
“We are pleased to have launched an investigation, and worked side-by-side with our law enforcement partners at the DEA, to help disrupt the supply of methamphetamine to Greater Cleveland,” said Chief Daniel J. Veloski of the Cleveland Metroparks Rangers. “Through collaborative efforts such as this, we are able to significantly curtail drug trafficking and safeguard our communities.”
Assistant U.S. Attorney Matt Cronin is prosecuting the case following an investigation by the Drug Enforcement Administration, the Cleveland Metroparks Ranger Department and the Lakewood Police Department.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment 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.
California Man Found Guilty in Manhattan Federal Court of Orchestrating $31 Million Mortgage Modification Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Christy Goldsmith Romero, Special Inspector General of the Troubled Asset Relief Program (“SIGTARP”), announced that DIONYSIUS FIUMANO, a/k/a “D,” was found guilty late yesterday in Manhattan federal court of orchestrating a massive mortgage modification scheme through which he and his co-conspirators defrauded more than 30,000 American homeowners out of a total of approximately $31 million.
Manhattan U.S. Attorney Preet Bharara said: “Dionysius Fiumano was the ringleader of a heartless criminal conspiracy that preyed on desperate homeowners struggling to pay their mortgages. Claiming to offer a lifeline to homeowners, Fiumano deceived tens of thousands into paying exorbitant fees for mortgage modification services they never got.”
Special Inspector General Christy Goldsmith Romero said: “A jury convicted Dionysius Fiumano for his role in orchestrating an elaborate advance fee scheme that defrauded more than 30,000 struggling homeowners out of more than $30 million. Using the Treasury’s Home Affordable Modification Program (HAMP) as the backdrop for their fraud, Fiumano and his co-conspirators conned homeowners who had fallen behind on their mortgage payments into believing their mortgages were being modified. In reality, they did little or nothing to help these homeowners. And when consumer complaints attracted attention, the co-conspirators renamed their companies to continue the fraud. These crimes were uniquely despicable, as HAMP is a free federal government housing program designed to help those most impacted by the financial crisis. Rather than offer relief, Fiumano added to the distress and despair of thousands of innocent Americans struggling to stay in their homes.”
According to the Indictment other filings in Manhattan federal court and the evidence presented at trial:
FIUMANO was the general manager of sales at Vortex Financial Management, Inc., a/k/a Professional Marketing Group, a/k/a Professional Legal Network (“PMG”), an Irvine, California, company that offered purported “mortgage modification” services, that is, assistance persuading the homeowner’s lender to agree to a modification to the terms of the homeowner’s mortgage to make it more affordable. In that capacity, FIUMANO oversaw PMG’s sales staff of approximately 65 telemarketers and managers.
From about November 2011 through May 2014, FIUMANO perpetrated a scheme to defraud homeowners in dire financial straits who were seeking relief through government mortgage relief programs. Through a series of false and fraudulent representations, FIUMANO duped thousands of homeowners into paying thousands of dollars each in up-front fees in exchange for little or no mortgage modification service. In total, through their scheme, FIUMANO and his co-conspirators obtained approximately $31 million from more than 30,000 victim-homeowners throughout the United States.
PMG purchased thousands of “leads,” consisting of the name, address, and other contact information of homeowners who had fallen behind in making mortgage payments on their homes. PMG then sent false and fraudulent solicitation letters by e-mail to the homeowners they identified through the “leads,” misleading these homeowners into believing that their mortgages were already under review and that new, modified rates had already been contemplated and approved by the homeowners’ lenders.
At FIUMANO’s direction, FIUMANO’s sales staff called and emailed homeowners who received PMG’s fraudulent solicitations. During these calls, in an effort to convince the homeowners to pay up-front fees, FIUMANO, through his sales staff, regularly lied to homeowners, including by saying that (a) the homeowners were retaining a “law firm” and an “attorney” who would complete a mortgage modification application and negotiate aggressively on the homeowners’ behalf with banks to modify the terms of the homeowners’ mortgages; (b) the homeowners had been “pre-approved” or “pre-qualified” to receive a mortgage modification; (c) PMG employed underwriters who would calculate and guarantee the homeowners a new, modified rate and monthly mortgage payment; and (d) the up-front fees paid by the homeowners would be paid directly to the homeowners’ lenders, to the attorneys to pay their fees, or to pay the purported “hard costs” of the modification. In truth and in fact, and as FIUMANO well knew, all of these representations were false.
* * *
FIUMANO, 43, of Irvine, California, was convicted of one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a statutory maximum sentence of 20 years in prison. FIUMANO is scheduled to be sentenced by U.S. District Judge John F. Keenan on September 13, 2016, at 11:00 a.m.
Three other co-conspirators have also been convicted for their roles in the scheme:
Pedram Abghari, a/k/a “Ted Allen,” 38, of Irvine, California, pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a statutory maximum sentence of 20 years in prison, and one count of misprision of a felony, which carries a statutory maximum sentence of three years in prison.
Justin Romano, 41, of Blue Point, New York, pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud.
Mahyar Mohases, 33, of Irvine, California, pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud.
Abghari, Romano, and Mohases are scheduled to be sentenced in the coming months.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the Office of the Special Inspector General for the Troubled Asset Relief Program.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Edward A. Imperatore and Patrick Egan are in charge of the prosecution.