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19 May 2016
Leaders of California-Based Cocaine Trafficking Organization Sentenced to 15 Years in PrisonRead the Press Release
BOSTON – Two California men were sentenced on Tuesday, May 17, 2016 in U.S. District Court in Boston for trafficking cocaine from Mexico into the United States.
Armando Meras Chavez, 37, of Visalia, Calif., and Arturo Rodriguez Ornelaz, 39, of Sanger, Calif. were sentenced by U.S. District Court Judge Nathaniel M. Gorton to 15 years in prison and five years of supervised release. In November 2015, Chavez and Ornelaz pleaded guilty to conspiracy to possess with intent to distribute and to distribution of five kilograms or more of cocaine and conspiracy to commit money laundering.
The charges resulted from a lengthy investigation that began in 2010 into the drug trafficking activities of the Chavez family, many of whom are Mexican nationals based in Washington and California. Chavez and Ornelaz were the leaders within the organization, which imported kilograms of cocaine into the United States from Mexico, transported the cocaine across the country using tractor trailers, and sold it to a local cocaine distributor based in Dorchester. During the course of the investigation, law enforcement seized approximately 50 kilograms of drugs and over $1 million in drug proceeds.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement. The case was prosecuted by Assistant U.S. Attorneys Nathaniel R. Mendell and Katherine Ferguson of Ortiz’s Narcotics and Money Laundering Unit.
Leader of Multi-Million Dollar Bank ‘Bustout’ Scheme that used Counterfeit Checks Sentenced to over 5 Years in Federal PrisonRead the Press Release
LOS ANGELES – A West Los Angeles man who masterminded a bank account ‘bustout’ scheme that defrauded financial institutions such as Bank of America and Chase Bank and cumulatively caused more than $15 million in losses has been sentenced to serve 63 months in federal prison.
Jae Ho Chung, 46, who resides in Westwood, received the prison sentence on May 12 from United States District Judge John A. Kronstadt, who also ordered the defendant to pay nearly $2.1 million in restitution to a variety of banks.
The overall scheme involved approximately $15 million in losses, but Chung was directly involved in criminal conduct that netted him approximately $2 million – money that prosecutors said Chung used to support his lifestyle, which included a home in Bel Air and gambling at casinos.
Chung pleaded guilty in October 2015 to two counts of bank fraud, admitting that he “conspired over a period of more than five years with 14 others to defraud banks by depositing fraudulent checks to inflate account balances so that, in the brief period that credited and reflected those deposits, defendant and others could withdraw provisionally-granted funds for their benefit,” according to a sentencing memorandum recently filed in federal court. “This scheme was defendant’s brain child.”
According to documents filed in the case, beginning in July 2008 and continuing until October 2013, Chung conspired with Michael Yeon Cho and 13 other co-defendants to defraud banks through the bustout scheme that used counterfeit checks to inflate account balances so that withdrawals could promptly be made before the banks learned that the deposited checks were worthless. Chung created and directed others to create counterfeit checks, directed others to arrange the establishment of “shell” corporations make it appear that bank accounts were legitimate; and withdrew funds from bustout accounts and transferred the fraudulent proceeds to himself and others.
“While members of the public may be familiar with high-tech scam such as so-called phishing schemes, they may not have heard of bustout schemes that have plagued financial institutions for years,” said United States Attorney Eileen M. Decker. “This type of fraud is very common and the threat is growing. Whether it is one person with a stolen credit or a sophisticated operation with numerous participants, the losses from one bustout scheme can be huge. We are continuing to work with the financial industry to address the problem and to prosecute those responsible for exploiting the goodwill banks extend to their customers.”
“This case shows that the appearance of success can be a mask for a tangled financial web of lies,” stated acting Special Agent in Charge Anthony J. Orlando for IRS Criminal Investigation’s Los Angeles Field Office. “Bustout schemes can thrive for a while until the source of funds is scrutinized and the perpetrators are identified. Now that time is gone, and as this sentence shows, it’s time for Mr. Chung to be held accountable.”
Cho, who was Chung’s primary co-conspirator, a 32-year-old Pacific Palisades resident, previously pleaded guilty and is scheduled to be sentenced by Judge Kronstadt on December 1.
Out of the remaining 13 defendants, the charges against 12 of them have been resolved either through pre-trial diversion or through guilty pleas. Several of those defendants have been sentenced to prison terms as long as 33 months. One remaining defendant is scheduled to go on trial in September.
The case against Chung, Cho and the 13 other defendants is the result of Operation “Check Kkang,” a multi-agency investigation into the bustout scheme that victimized financial institutions such as Bank of America, JPMorgan Chase, U.S. Bank and Wells Fargo Bank. Check Kkang refers to a Korean term that describes check kiting.
The investigation was jointly conducted by special agents with the Federal Bureau of Investigation and IRS Criminal Investigation.
Last of Six Defendants Pleads Guilty to Charges Related to Las Vegas Oxycodone RingRead the Press Release
COLUMBUS, Ohio – Rashod D. Todd, 28, of Columbus, pleaded guilty in U.S. District Court to conspiracy to one count each of conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Timothy Plancon, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS) and Ohio Attorney General Mike DeWine announced the plea entered into today before U.S. District Judge Michael H. Watson.
According to court documents, between 2012 and November 2015, Rashod Todd, Dajaun Brooks, Jordon Herring and Stephvon Covington conspired to possess and distribute Oxycodone from Las Vegas to Columbus, as well as conspiring to commit money laundering by concealing the source of the proceeds from the narcotics trafficking.
Todd obtained bulk amounts of Oxycodone from middle men. The Oxycodone was then transported and sold in Columbus for profit on the street to drug users. Todd frequently directed other members of the conspiracy to conceal the Oxycodone and cash inside containers before they were shipped through the U.S. mail. Additionally, on numerous occasions, Todd personally carried Oxycodone on commercial airline flights between Las Vegas and Columbus where the Oxycodone was distributed on the streets of Columbus through a network of individuals at Todd’s direction.
Todd attempted to conceal his illicit proceeds by depositing money into the bank accounts of other individuals. These cash deposits funded the purchase of airline tickets that enabled couriers to transport Oxycodone to Columbus and to transport bulk amounts of cash back to Todd in Las Vegas.
Todd pleaded guilty to one count each of conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering. Each crime is punishable by up to 20 years in prison.
On March 16, 2016 Danny R. Williams, 29, and Sukita M. Williams, 43, both of Las Vegas, pleaded guilty in U.S. District Court to one count each of conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering. A sentencing date has not been set.
According to court documents, since November 2012, the pair went to physicians to obtain fraudulent prescriptions and either arranged for others to do the same or used middlemen to obtain Oxycodone. Once they obtained bulk amounts of the drug, the pills were transported to Columbus via the mail or on commercial airlines to be sold on the street to drug users. In addition, the couple attempted to conceal their illicit proceeds by depositing money into bank accounts of other individuals.
On May 4, 2016 Joquline D. Harris, 28, of Columbus, pleaded guilty in U.S. District Court to one count of conspiracy to commit money laundering. A sentencing date has not been set.
Harris conducted financial transactions to funnel the proceeds of the illegal distribution of Oxycodone through two separate Ohio bank accounts opened by Sukita Williams, to bank accounts owned by Sukita Williams in Las Vegas. Harris further utilized the monies contained in these bank accounts and other illicit drug proceeds from Sukita Williams to purchase airline tickets for members of the drug trafficking organization to facilitate the transporting of Oxycodone and drug proceeds between Las Vegas and Columbus. In addition, Harris also utilized these illegal proceeds to make vehicle payments to a financial institution in Ohio for a vehicle that Sukita Williams operated in furtherance of drug and money laundering conspiracy.
On April 19, 2016, Dontonyo Courtney, 21, of Columbus, pleaded guilty in U.S. District Court to one count of conspiracy to possess with intent to distribute Oxycodone. A sentencing date has not been set.
Also, today, Alfred David James, Sr., 35, of Columbus, pleaded guilty in U.S. District Court to one count of conspiracy to possess with intent to distribute Oxycodone. A sentencing date has not been set.
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Acting U.S. Attorney Glassman commended the cooperative investigation by the DEA, IRS, USPIS and Ohio Bureau of Criminal Investigation (BCI), as well as OCDETF Chief Michael J. Hunter, who is representing the United States in this case.
Lake Charles woman pleads guilty to stealing more than $230,000 from employerRead the Press Release
LAKE CHARLES – United States Attorney Stephanie A. Finley announced today that a Lake Charles woman pleaded guilty to stealing more than $230,000 from her employer’s bank account.
Melissa D. Crookshank, 33, of Lake Charles, pleaded guilty before U.S. District Judge Patricia Minaldi to one count of wire fraud. According to the guilty plea, Crookshank, who worked as a bookkeeper for a Hackberry, La., company, stole $235,155.79 from her employer starting in 2009 and continuing until January of 2015. Crookshank issued checks to herself during that time without authorization from the company owners, which she deposited into her own bank accounts for personal use.
Crookshank faces 20 years in prison, three years of supervised release, a $250,000 fine and restitution. A sentencing date of August 25, 2016 was set.
The U.S. Secret Service and the Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.
Kittanning Man Indicted on Health Care Fraud ChargesRead the Press Release
PITTSBURGH - A resident of Armstrong County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of health care fraud, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on May 17, named Samirkumar J. Shah, 53 of Kittanning, PA, as a defendant.
According to the information presented to the court, Shah knowingly and willfully executed and attempted to execute a scheme to defraud health care benefit programs, such as, Medicare, Medicaid, Highmark, UPMC and Gateway, in connection with the delivery of and payment for health care benefits, items and services.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania Office of the Attorney General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Kenner Tax Preparer Pleads Guilty to Lying on Tax Returns and Failing to Declare More than $300,000 in IncomeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHRISTIE ROBINSON, 39, of LaPlace, pled guilty yesterday to four counts of false statements on tax returns, in violation of 26 U.S.C. § 7206(1).
According to court records, ROBINSON is the owner and operator of a tax return preparation business in Kenner, Louisiana, called CRR Services, LLC. ROBINSON received fees charged for the preparation of individuals’ tax returns. ROBINSON failed to include all of the substantial fees she received for income tax return preparation on her own returns. In 2007, she declared $80,000 in fees and failed to disclose $195,000. In 2009, she disclosed $100,000 but failed to include an extra $28,000. In 2010, she declared $76,000 but failed to declare $82,000. Finally, in 2011 she declared $175,000 but excluded $8,000. The total undeclared income for the four years 2007, 2009, 2010, 2011 is approximately $315,000. The total taxes due and owing are approximately $104,000.
ROBINSON faces a possible maximum sentence of three years imprisonment on each count, and/or a fine of $100,000 and up to three years of supervised release. as well as having to reimburse the United States for the cost of the investigation. U.S. District Judge Ivan L.R. Lemelle set sentencing for August 17, 2016.
U.S. Attorney praised the work of the Internal Revenue Service, Criminal Investigation Division, in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
KC Man Sentenced to 15 Years for Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute crack cocaine and for illegally possessing several firearms.
Marcus McIntosh, 60, of Kansas City, was sentenced by U.S. District Judge Stephen R. Bough to 15 years in federal prison without parole.
On Dec. 2, 2015, McIntosh was convicted at trial of his role in leading a conspiracy to distribute crack cocaine between April 1 and Aug. 8, 2014. McIntosh was also found guilty of distributing crack cocaine and being a felon in possession of several firearms.
McIntosh sold crack cocaine to undercover detectives and confidential informants on several occasions between May and August 2014. On Aug. 8, 2014, law enforcement officers executed a search warrant at a residence that McIntosh was using as a “trap house,” a place to store and sell crack cocaine. McIntosh was placed under arrest; an adult woman and a child were also inside the residence.
During their search of the residence, investigators found a safe under the bed in a bedroom that contained approximately 49.6 grams of crack cocaine, approximately 29.2 grams of powder cocaine and $1,820. In another bedroom, investigators found a loaded Ruger .22-caliber handgun on top of an entertainment center, a Remington 12-gauge shotgun located next to the entertainment center and a loaded PW Arms 9mm handgun between the mattresses on the bed.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. McIntosh has prior felony convictions for possessing crack cocaine with the intent to distribute, distributing cocaine, possessing cocaine with intent to distribute, carrying a concealed weapon and robbery.
Two co-defendants, who are brothers, have pleaded guilty to participating in the conspiracy by distributing crack cocaine that was supplied to them by McIntosh. Tyrone Campbell, Jr., 30, of Raytown, was sentenced to eight years in federal prison. Tyronn Campbell, 25, of Kansas City, Mo., was sentenced to three years and 10 months in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorneys Brent Venneman and Adam Caine. It was investigated by the Kansas City, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Justice Department Reaches Agreement with Philadelphia-Area YMCA to Ensure Equal Opportunities for Children with DiabetesRead the Press Release
The Justice Department reached a settlement agreement today with the Philadelphia Freedom Valley YMCA – Rocky Run Branch to resolve allegations that it violated the Americans with Disabilities Act (ADA) by denying a child the opportunity to participate in after-school and summer camp programs because of her type 1 diabetes.
Title III of the ADA prohibits discrimination on the basis of disability by public accommodations, including private camps and childcare programs. Under the ADA, such entities must make reasonable modifications to their policies, practices or procedures when necessary to provide equal access to a child with a disability, unless a modification would fundamentally alter the nature of the goods and services. When a parent and a child’s physician determine that it is appropriate for a trained layperson to assist a child with diabetes care, a camp or childcare program must provide this as a reasonable modification under the ADA, unless doing so would fundamentally alter the program.
The Philadelphia Freedom Valley YMCA – Rocky Run Branch refused to perform diabetes related tasks, including administering glucagon in the event of a low blood glucose level emergency and supervising the child to self-administer insulin. YMCA also limited the child’s participation in the after-school program by allowing her to attend only until 4:00 p.m., even though the program ran until 6:00 p.m. Finally, YMCA asked the child’s parents to supply an aide to monitor the child in the summer day camp program.
“After-school and camp programs enable children to learn and socialize with their friends, and enable parents to ensure that their children are well-cared for, and YMCAs are one of the key providers parents turn to for that care,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Such providers may not exclude children with disabilities, and the Department of Justice will continue to aggressively fight all forms of discrimination that deny children with disabilities the protections and opportunities they deserve.”
Under the terms of the agreement, the YMCA will:
• adopt a non-discrimination policy;
• develop a sample diabetes medical management plan;
• remove unnecessary inquiries from its application materials that tend to screen out individuals with disabilities;
• train its staff on the ADA and diabetes management;
• provide information for parents on how to request modifications for children with disabilities;
•designate an ADA compliance officer who will monitor compliance with the agreement and review requests for reasonable modifications, among other duties; and
• report annually to the United States on its compliance.
ADA enforcement is a top priority of the Justice Department’s Civil Rights Division. Those interested in finding out more about this settlement or the obligations of camps and child care programs under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
Philadelphia Freedom Valley YMCA – Rocky Run Branch
Honduran National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RONY GAVARRETTE, age 23, a native of Honduras, pled guilty yesterday to a one-count Indictment for illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, GAVARRETTE was previously removed from the United States on September 26, 2011. GAVARRETTE was later found in the Eastern District of Louisiana on November 10, 2015, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
GAVARRETTE faces a maximum term of imprisonment of ten years, as well as a fine of $250,000. U.S. District Court Judge Martin L.C. Feldman set sentencing for September 7, 2016.
U.S. Attorney Polite praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Heroin Dealer Sentenced to 35 Years for Overdose DeathRead the Press Release
NORFOLK, Va. – Gregory Hatt, 29, of Virginia Beach, was sentenced today to 420 months in prison for distribution of heroin resulting in death.
“The heartbreak for the Beaudry family is a tragedy unfolding in nearly every community across our country,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “While justice cannot restore the Beaudry’s daughter to their family, law enforcement can continue to aggressively prosecute those who seek to prey upon vulnerable members of our community. Law enforcement, however, does not possess the complete answer. We must continue to strive for increases in opioid awareness, education, prevention and treatment so that our communities can ride themselves of this invasive agent of human misery.”
“Burying a child is every parent's worst nightmare and my heart breaks every time I meet a family, like the Beaudrys, that has lost a child to these powerful drugs,” said Mark Herring, Attorney General of Virginia. “These families have such love for their children and they mourn the promising future that men like Gregory Hatt took from them. Even after his drugs claimed a life and shattered a family, Hatt continued to deal heroin and profit from addiction, showing no remorse or recognition of the damage he was causing. As we work to build a comprehensive, community-wide effort to prevent addiction and educate Virginians about the dangers of heroin and prescription opioids, we will continue to partner with U.S. Attorney Boente and local law enforcement to get these deadly drugs off the streets and bring the dangerous criminals that deal them to justice.”
“The Naval Criminal Investigative Service is committed to working with our law enforcement partners to bring to justice those who are driving the deadly heroin wave which is taking lives and destroying families in the Tidewater area, said Tim Quick, Special Agent in Charge of the NCIS Norfolk Field Office. “NCIS will use our unique authorities, resources and capabilities in combatting this growing problem, to help protect Sailors, Marines, Department of the Navy civilians and families, and the communities in which we work and live.”
According to court documents, Hatt sold heroin, cocaine, and other narcotics out of a rented house in Virginia Beach from December 2014 through July 2015. On Dec. 26, 2014, Hatt called Monica Beaudry, a 23-year-old Virginia Beach woman, to come to his house for what he described as “a birthday present.” Hatt distributed heroin to Beaudry and she subsequently displayed signs of an overdose by foaming at the mouth, exhibiting troubled breathing, and losing consciousness. Others at the house implored Hatt to call 911, but he refused. Approximately 40 minutes after displaying symptoms of overdose, Beaudry was driven to Chesapeake Regional Medical Center where she was pronounced dead. Hatt became aware of Beaudry’s death, but continued to distribute heroin from his residence and from other Virginia Beach locations for the following seven months. In February 2015, he distributed heroin to an active duty U.S. Navy sailor stationed on an aircraft carrier in Norfolk. That sailor and another sailor on the carrier also overdosed. Both sailors were immediately treated by medical personnel and survived. On July 24, 2015, law enforcement agents with Naval Criminal Investigative Service (NCIS) and officers with the Virginia Beach Police Department executed a search warrant on Hatt’s residence and recovered quantities of heroin, cocaine, various drug paraphernalia, and multiple firearms, including a loaded sawed-off shotgun.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, Timothy Quick, Special Agent in Charge for the NCIS Norfolk Field Office, made the announcement after U.S. District Judge Raymond A. Jackson announced the sentence. Special Assistant U.S. Attorneys Alyssa Nichol and John F. Butler prosecuted 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. 2:15-cr-153.
Grand Forks Bank Robber Pleads GuiltyRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on May 18, 2016, Charlene Mae Corona, 39, Crookston Minn., pled guilty before US District Judge Ralph R. Erickson to two counts of Bank Robbery.
At approximately 1:30 p.m. on September 30, 2015, a female entered the Bremer Bank at 921 North Washington St., in Grand Forks, ND and demanded money from the teller. The female pulled out a knife and pointed it at one of the employees. The employee provided money to the individual who put it into a tote bag. The FBI and Grand Forks Police Department began an investigation.
Then, on October 12, 2015, a female entered the Citizens Community Credit Union at 1215 N. 42nd St. Grand Forks and while displaying a handgun she threw down a black bag and demanded money from a bank teller. Again law enforcement investigated this robbery.
Surveillance video from each of the robberies showed that the same female committed both of the robberies. Law enforcement received tips that the robber was the defendant Charlene Mae Corona. She was later arrested in Moorhead, Minnesota.
Corona faces a maximum of 20 years in prison, a $250,000 fine, and three years of supervised release on each count. A sentencing will be set before Judge Ralph Erickson in United States District Court in Fargo North Dakota.
This case is being investigated by Federal Bureau of Investigation (FBI), Grand Forks Police Department, Grand Forks Sheriff’s Department, and the Moorhead Police Department.
First Assistant US Attorney Keith Reisenauer prosecuted the case.
Franklinville Man Sentenced for Illegally Buying and Selling Elephant TusksRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr., announced today that Ferdinand E. Krizan, 78, of Franklinville, NY, who was convicted of trafficking in prohibited wildlife, was fined $30,000 by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that on November 6, 2013, Krizan, owner of Fred’s Antiques in Franklinville, purchased two elephant tusks from an auction house in Montreal, Quebec for $4,320 Canadian dollars. The defendant then had the tusks shipped to an address in Niagara Falls, Ontario.
On November 28, 2013, Krizan transported the tusks from Niagara Falls, Ontario into the United States through the Rainbow Bridge port of entry, violating the Endangered Species Act. Subsequently, on May 31, 2014, the defendant sold the tusks, along with four additional tusks to a buyer in Massachusetts for $50,000 American dollars. At the time of that sale, Krizan knew that the two elephant tusks had been improperly transported into the United States. At no time did the defendant apply for or receive a permit under the Endangered Species Act authorizing the importation, delivery, receipt, transportation, or sale of elephant ivory.
The investigation also determined that the defendant also illegally trafficked in other protected wildlife including: • a Narwhal tusk, which he sold for $8,000 American dollars in violation of the Marine Mammal Protection Act; • two elephant tusks, which he sold for $66,000 American dollars; • a carved elephant ivory art object, which he purchased for $1,020 Canadian dollars; • one elephant tusk, which he purchased for $3,130.68 Canadian dollars; • one hippo ivory carving, which he sold for $1,400 American dollars; • one elephant ivory musician carving, which he sold for $2,525 American dollars; • one bronze and elephant ivory sosoon figurine, which he sold for $3,700 American dollars; • one elephant ivory trip-tix, which he sold for $2,700 Canadian dollars; and
• one carved coral figurine, which he sold for $3,400 American dollars.
The total value of the wildlife trafficked by the defendant is $141,877.00. As part of the plea, the defendant will also abandon approximately 100 pieces of elephant ivory carvings.
The sentencing is the culmination of an investigation by the U.S. Fish and Wildlife Service, under the direction of Honora Gordon, Special Agent in Charge, Northeast Region, and the New York State Department of Environmental Conservation, under the direction of Captain Frank Lauricella.Four Assistant United States Attorneys Honored by the Charlotte-Mecklenburg Police Department at Annual “Chief's Awards ” CeremonyRead the Press Release
CHARLOTTE, N.C. – Four Assistant United States Attorneys were honored today by the Charlotte-Mecklenburg Police Department at the annual “Chief’s Awards” ceremony, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. The four were presented with the “Chief’s Award for Excellence in Policing” for the federal prosecution of significant criminal cases. The ceremony was held at CMPD’s Police and Fire Training Academy.
“I congratulate our four Assistant United States Attorneys for receiving this special recognition today,” said U.S. Attorney Rose. “They are excellent prosecutors dedicated to the pursuit of justice and I want to thank each one for serving our district and the Department of Justice with distinction and integrity both in and out of the court room.”
Assistant U.S. Attorneys Robert Gleason, Jennifer Dillon, Elizabeth Greene and William Miller were the four prosecutors recognized for their respective work on three federal prosecutions. Assistant U.S. Attorneys Greene and Miller received the award for the ongoing prosecution of 37 MS-13 gang members, four of whom were convicted at trial in April 2016.
Assistant U.S. Attorneys Gleason and Dillon were recognized for their prosecution of Fathia Davis, who was sentenced in February 2016 to 10 years in prison in connection with a murder-for-hire plot against her ex-husband. Ms. Dillon also received an award for the prosecution of the “Carlton-Wilson Group,” involving four defendants responsible for multiple break-ins, burglaries and illegal gun sales in the Charlotte area. The defendants, Tory Vazquez, Brendan Penn, Dominic McDonald and Carlton Wilson, were sentenced to prison terms of up to 206 months for their crimes.
The United States Attorney's Office is responsible for representing the federal government in virtually all litigation involving the United States in the Western District of North Carolina. This includes all criminal prosecutions for violations of federal law, civil lawsuits by and against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Western District of North Carolina extends over 13,563.9 square miles and includes the state’s 32 westernmost counties.
Former Tukwila, Washington, Police Officer Charged with Using Excessive Force against Restrained ArresteeRead the Press Release
WASHINGTON – Former Tukwila, Washington, Police Department (TPD) Officer Nicholas Hogan was charged today with using excessive force on a restrained arrestee on May 20, 2011, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Annette L. Hayes of the Western District of Washington.
The indictment alleges that Hogan, while acting as a TPD officer, deployed oleoresin capsicum spray (commonly referred to as OC spray or pepper spray) against an arrestee who was in four-point restraints and shackled to a gurney in a hospital. The indictment identifies the arrestee only by the initials M.S. The indictment further alleges that M.S. suffered bodily injury as a result of Hogan’s use of excessive force.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Hogan faces a maximum sentence of 10 years in prison for the civil rights violation, as well as a potential $250,000 fine.
The case is being investigated by the FBI’s Seattle Division. The case is being prosecuted by Assistant U.S. Attorney Bruce Miyake of the Western District of Washington and Trial Attorneys Jared Fishman and Rose E. Gibson of the Civil Rights Division’s Criminal Section.
Former Tukwila, Washington, Police Officer Charged with Using Excessive Force Against Restrained ArresteeRead the Press Release
Former Tukwila, Washington, Police Department (TPD) Officer Nicholas Hogan was charged today with using excessive force on a restrained arrestee on May 20, 2011, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Annette L. Hayes of the Western District of Washington.
The indictment alleges that Hogan, while acting as a TPD officer, deployed oleoresin capsicum spray (commonly referred to as OC spray or pepper spray) against an arrestee who was in four-point restraints and shackled to a gurney in a hospital. The indictment identifies the arrestee only by the initials M.S. The indictment further alleges that M.S. suffered bodily injury as a result of Hogan’s use of excessive force.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Hogan faces a maximum sentence of 10 years in prison for the civil rights violation, as well as a potential $250,000 fine.
The case is being investigated by the FBI’s Seattle Division. The case is being prosecuted by Assistant U.S. Attorney Bruce Miyake of the Western District of Washington and Trial Attorneys Jared Fishman and Rose E. Gibson of the Civil Rights Division’s Criminal Section.
Hogan Indictment
Former Scott Credit Union Loan Officer Pleads Guilty to FraudsRead the Press Release
Theodore J. Longust, 50, formerly from Columbia, Illinois, entered pleas of guilty today to a nine-count Indictment charging, Count 1, Financial Institution Fraud; Counts 2-5, Misapplication of Funds; Counts 6-8, Money Laundering; and Count 9, Making a False Record to Scott Credit Union With The Intent to Deceive, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced. Longust was an employee of Scott Credit Union in the commercial loan department from November 7, 2005, continuing through December 8, 2014, and held the title of Business Relationship Manager. Longust executed a scheme to defraud through the embezzlement of credit union funds, the creation of fraudulent loans, the payment of loans through the misapplication of funds from other loans, the increase of credit limits on loans that did not have the requisite board approval, the issuance of business loans without the required documentation or security and the issuance of letters of credit without the required documentation and security. The indictment also alleges that he knowingly submitted a false report to Scott Credit Union for the 3rd quarter of 2014 that misstated loan balances and omitted loan amounts and underreported loans of over $12,000,000. Longust faces a prison sentence of up to 240 years, a fine of up to $4,500,000, and up to 5 years supervised release, and mandatory restitution when he faces sentencing before District Judge Yandle on September 6, 2016.
"While we are not in the business of giving the public financial or legal advice, the public should know that our investigation revealed that the safety and soundness of Scott Credit Union has not been adversely affected by the criminal conduct." noted Acting United States Attorney Porter. "We thank the Employees of Scott Credit Union who fully cooperated in our federal investigation."
The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service/Criminal Investigations with the assistance of Scott Credit Union. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former Mail Carrier Pleads Guilty to Obstruction of MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jennifer Serrano, 26, of Tonawanda, NY, pleaded guilty to obstruction of the mail before U.S. Magistrate Judge Jeremiah J. McCarthy. The charge carries a maximum penalty of six months in prison and a $5,000 fine.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that the defendant, at the time a United States Postal Service mail carrier, failed to deliver more than 700 pieces of mail between March 2013 and February 2014. Serrano brought the undelivered mail to her residence and stored it there instead of delivering it. The defendant has since resigned from the Postal Service.
The plea is the result of an investigation by the United States Postal Service, Office of the Inspector General, under the direction of Special Agent in Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
Sentencing is scheduled for August 16, 2016 at 2:00 p.m. before Judge McCarthy.
Former Employee Pleads Guilty to Embezzling More than $1M, Income Tax EvasionRead the Press Release
CINCINNATI – Steven J. Porges, 52, of Park City, Utah pleaded guilty in U.S. District Court to one count each of wire fraud and income tax evasion.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, and Angela L. Byers, Special Agent in Charge, FBI, Cincinnati Field Division, announced the plea entered into today before U.S. District Judge Michael R. Barrett.
According to court documents, between 2007 and October 2014 Porges devised a scheme to defraud KAO Brands Company, now known as Kao USA Inc. (KAO), of money and property by means of false and fraudulent pretenses. As a result of his conduct, the defendant caused a loss to KAO of more than $1 million.
KAO, with its principal office located in Cincinnati, Ohio, is a manufacturer and supplier of beauty care products. KAO promotes its products through promotional offers, which often include using grocery store end caps to showcase its products. The company uses third-party vendors to advertise and place its promotional products.
Porges was employed by KAO as a National Account Manager beginning in 2002, until his termination on October 9, 2014. In that capacity, he negotiated with third-party vendors to secure shelf space for KAO's products in retail stores, and managed KAO's contracts with those vendors. Porges worked remotely from his home in Park City, Utah.
Porges purchased American Express gift cards, generally in the amount of $2,000 per card, from third-party vendors. The vendors sent the gifts cards and invoices directly to Porges’ home. Porges purchased the gift cards on the premise that he was acting on behalf of KAO to provide the gift cards to retailers as incentives to run KAO promotions. In reality, KAO did not authorize the purchase of the gift cards, and used the majority of the gift cards for personal expenses.
Porges altered the invoices by falsely representing on the invoices that he had purchased shelf space, end cap space and promotional offers instead of gift cards. At times, Porges instructed the vendors on what wording to use on the invoices. Porges then faxed or emailed the false invoices to KAO for payment. Based on the false invoices provided by Porges, KAO made payments directly to the vendors for what it believed were legitimate business expenses without knowledge that Porges had purchased gift cards for his own personal benefit.
Porges paid various personal expenses with the fraudulent proceeds, including electric bills, dry-cleaning, Starbucks purchases, vacations, airline and sporting event tickets and jewelry.
For each of the calendar years 2009 through 2014, Porges willfully attempted to evade the income taxes due on the money he took from KAO by filing false income tax returns which did not include the wire fraud proceeds he had received.
For those years, he claimed taxable income in the amount of $779,052 and that the amount of tax due and owing was $137,697. The investigation revealed that Porges knew his true taxable income tax was in the amount of $1,608,568, resulting in an additional tax due and owing of $256,577.
Wire fraud is punishable by up to 20 years in prison, and income tax evasion is punishable by up to five years imprisonment.
"The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Acting U.S. Attorney Glassman commended the cooperative investigation by the IRS and FBI, as well as Assistant United States Attorney Deborah D. Grimes, who is representing the United States in this case.
Former Corporate Lawyer Sentenced in Manhattan Federal Court to Five Years in Prison in Connection with Multimillion-Dollar Ponzi SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CHARLES A. BENNETT was sentenced today in Manhattan federal court to five years in prison for securities and wire fraud charges stemming from his scheme to defraud over 30 investors of more than $5 million through a Ponzi scheme that he perpetrated for more than five years. Among other false and misleading statements, BENNETT lied to investors by claiming to have exclusive access to a highly successful privately held investment fund in which he would purportedly invest the investors’ money. BENNETT solicited millions of dollars from over 30 investors, including his close friends and family members, but never actually invested any of the money in the investment fund or any other investment vehicle. Instead, BENNETT used the investors’ money for his own personal benefit and to pay back other investors. BENNETT pled guilty on October 28, 2015, to one count of securities fraud and one count of wire fraud before United States District Judge Laura Taylor Swain, who imposed today’s sentence.
U.S. Attorney Preet Bharara said: “Charles Bennett lied to dozens of investors, including family and friends, to solicit millions of dollars for a purported investment vehicle. Then, rather than invest their money as he said he would, he spent most of it on himself. Today, he received a sentence reflecting the seriousness of his crimes.”
According to the Complaint, the Indictment, and other statements made in open court:
From 2008 through November 2014, BENNETT, a former corporate lawyer at a law firm based in New York City, engaged in a multimillion-dollar Ponzi scheme, during which he solicited money from investors based on materially false and misleading representations. Specifically, BENNETT told the investors that he himself had invested money in a highly successful privately held investment fund, and that, should they choose to invest, the investors’ money would be held in BENNETT’s account. BENNETT communicated by email and telephone with many of the investors in order to tell them about the purported status of their investments, including their purported returns. BENNETT also led most of the investors to believe that they were the only individuals to whom he had extended the offer to invest with him.
BENNETT created false and misleading paperwork in furtherance of the scheme, including “promissory notes” that he provided to the investors as a record of the amounts of money they had given to BENNETT to invest. BENNETT also provided certain investors with account statements that purported to show the amount that BENNETT (and the investors, through BENNETT) had invested. In fact, BENNETT never invested any of the investors’ money in the investment fund or in any other investment vehicle, but instead spent the money on his own personal expenses and to repay other investors.
During the course of the fraudulent scheme, BENNETT solicited more than $5 million from more than 30 investors.
* * *
In addition to the five-year prison sentence, BENNETT, 58, formerly of Manhattan, was sentenced to three years of supervised release. The Court further ordered BENNETT to forfeit the proceeds of the scheme and to pay restitution in amount to be determined.
Mr. Bharara praised the work of the Federal Bureau of Investigation.
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. Attorney Amy Lester is in charge of the prosecution.
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Former Chief Financial Officer Sentenced to 80 Months in Prison for Stealing $1.6 Million from Three EmployersRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Christopher C. Camut, age 53, of Baltimore, Maryland, today to 80 months in prison followed by three years of supervised release for conspiring to commit wire fraud arising from a scheme to fraudulently obtain at least $1.6 million from three companies at which he was employed as the chief financial officer. Judge Messitte also ordered Camut to forfeit and pay restitution of $1,618,951.
The sentence 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.
At various times between January 2007 and August 2014, Camut was the chief financial officer for three companies. Company A is a non-profit organization that develops microbicides which can provide women in developing countries with protection against HIV infection. Company B manufactures products for the medical industry, and Company C develops medical countermeasures against biological and chemical threats.
According to his plea agreement, from January 2008 to May 2014, Camut created false emails, engagement letters, agreements and invoices to make it appear as if financial institutions had provided services to the companies. He caused the companies to issue checks payable to the financial institutions, which Camut then deposited into his personal bank accounts. Over the period of six years, Camut stole at least $1,618,951 from the three companies.
Camut created agreements between coconspirator Kaitlyn Jones and Companies A, B and C, which falsely represented Jones’ profession. Camut caused the three companies to transfer by wire and issue checks payable to Jones, although Jones performed no work for the companies. Camut and Jones shared the proceeds received from the companies.
To facilitate the fraud, Camut repeatedly forged on documents the name and signature of a bank employee, to make it appear as if the bank had performed work for Companies A and C, when it had not. Camut forged the victim’s name over 15 times.
Kaitlyn Jones, age 48, of Reisterstown, Maryland, pleaded guilty to her participation in the conspiracy and is scheduled to be sentenced on June 29, 2016 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Leah Jo Bressack and David I. Salem, who prosecuted the case.
Former Bank Teller Pleads Guilty to Conspiring to Embezzle Money from Local BankRead the Press Release
BOSTON – A former teller at Lenox National Bank pleaded guilty today in U.S. District Court in Springfield in connection with embezzling more than $375,000 from the bank and concealing the theft with false bank records.
Melissa J. Scolforo, 47, of Lee, Mass., pleaded guilty to one count of conspiracy to embezzle bank funds and make false entries in bank records. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 15, 2016.
Scolforo was a teller at Lenox National Bank for 24 years. From 2009 to November 2013, Scolforo and co-defendant Bernadine Powers took cash from the bank’s teller drawers and bank vaults and used the money for personal expenses including traveling, shopping, dining at restaurants, and paying household bills. In addition, Powers made false entries in bank records to conceal their theft of $378,000 from the bank.
Earlier this month, Bernadine Powers, 40, of Becket, Mass., was indicted on the same charge.
The maximum sentence under the statute is five years in prison, followed by three years of supervised release and a $250,000 fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation in Boston made the announcement today. The case is being prosecution by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office.
Final Defendant Sentenced in Statesboro Area Drug Trafficking OrganizationRead the Press Release
STATESBORO, GA: Mark A. Green, 45, a citizen of Jamaica living in Statesboro, was sentenced earlier this week by Chief United States District Court Judge Lisa Godbey Wood to 11 years in prison for his role in a cocaine trafficking organization operating out of Evans, Tattnall, Camden and Bulloch Counties, Georgia, and elsewhere. A list of others convicted and sentenced in the case is included below. Chief Judge Wood also ordered that Green be delivered to the Bureau of Immigration and Customs Enforcement for deportation proceedings upon completion of his prison sentence.
Evidence presented during numerous guilty plea and sentencing hearings revealed that Green was the leader of an organization that supplied multi-kilogram quantities of cocaine to various individuals in the Evans, Tattnall, Camden and Bulloch County areas between 2012 and 2015. Several wiretaps were obtained which helped identify the members of the drug conspiracy and led to the seizure of a significant amount of cocaine.
United States Attorney Edward J. Tarver stated, “This case provides another example of the outstanding results achieved when federal and state law enforcements partner together to investigate and prosecute large-scale drug trafficking organizations. If you push poison in our communities, you can expect to spend years in a federal prison.”
Green was the eighth defendant to be sentenced for his role in the drug ring. Defendant Tyrone Scott remains a fugitive. The other defendants convicted and sentenced are:
Olaudah McKenzie, 37, of Claxton, sentenced to 169 months in prison;
Stephen Cummings, 34, of Glennville, sentenced to 156 months in prison;
Janario Smokes, 30, of Ellabell, sentenced to 151 months in prison;
Almonta Montez Moore, 37, of Claxton, sentenced to 92 months in prison;
Andrew Leadbeter, 48, of Statesboro, sentenced to 64 months in prison;
Xavier Mikell, 27, of Claxton, sentenced to 41 months in prison; and,
Ainsley Clark, 49, of Claxton, sentenced to 31 months in prison.
The case was investigated by the DEA and the Georgia Bureau of Investigation, with assistance from the United States Marshal Service. Assistant United States Attorneys Charlie Bourne and Tania Groover prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Edinboro Woman Sentenced to Time-Served for Allowing Her Home to be Used as Stash HouseRead the Press Release
ERIE, Pa. - A former resident of Edinboro, Pennsylvania, has been sentenced in federal court to the 15½ months of time already served in jail and was ordered to forfeit $14,340.00 on her conviction of making her home available for drug activities, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Christian Urrutia Rojas, 30.
According to information presented to the court, from June 2013 through February 2015, Rojas engaged in a conspiracy with eighteen co-defendants to distribute and possess with intent to distribute cocaine, ounces of high purity methamphetamine, and ounces of heroin. Rojas facilitated the conspiracy by knowingly having her home in Edinboro used as the drop-off point for drugs and money.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of Rojas.
Dubuque Woman Charged with Harboring a Federal Fugitive and Obstruction of JusticeRead the Press Release
Vivian Rochelle Weakley, age 28, from Dubuque, Iowa, has been charged with one count of concealing a person from arrest and one count of obstruction of justice. The charges are contained in an Indictment unsealed on May 18, 2016, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about April 19, 2016, Weakley harbored and concealed Antwain Deshaun Spratt, who at the time was a federal fugitive. It further alleges that, while knowing that Spratt was inside her residence, Weakley falsely told a Deputy United States Marshal that she did not know Spratt or where he was located.
If convicted on all charges, Weakley faces a possible maximum sentence of 15 years’ imprisonment, $500,000 in fines, $200 in special assessments, and not more than 6 years of supervised release following any imprisonment.
Weakley appeared on May 18, 2016, in federal court in Cedar Rapids and was released on bond. Weakley’s trial is set for July 18, 2016.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-30-LRR.
Follow us on Twitter @USAO_NDIA.
Drug Dealer Indicted for Distribution of FentanylRead the Press Release
NORFOLK, Va. – Eugene Deandre Tillery, 20, of Suffolk, was indicted by a federal grand jury yesterday on seven counts of distributing Fentanyl, which is a very potent pain killer used in the medical profession.
According to the indictment, from Nov. 14, 2015 through Dec. 2, 2015, the DEA with assistance from the Suffolk Police Department conducted a series of controlled purchases from Tillery. The agents thought they were purchasing heroin from Tillery, but an analysis of the drugs by a laboratory revealed that the drugs were Fentanyl. The agents made six purchases from Tillery which ranged from 45 to 100 capsules per purchase.
“Even a small amount of fentanyl can be lethal,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “There is a disturbing trend across the nation, including here in the Tidewater area, of heroin dealers adding fentanyl to their heroin to increase the potency. As a result, we have seen an alarming increase in overdoses, many of which have resulted in death. Arrests and criminal prosecutions alone will not solve this problem. We must continue to strive for increases in education, treatment, and prevention.”
“Drug dealers selling heroin-laced fentanyl or replacing the heroin entirely with fentanyl is an alarming trend and a tremendous threat to public safety,” said Karl C. Colder, Special Agent in Charge of the DEA’s Washington Field Division. “There is no safe amount of fentanyl that can be bought on the street. We are seeing fentanyl and heroin related overdose deaths in record numbers across Virginia, as people from all walks of life are becoming addicted to these highly dangerous drugs. DEA will continue to work with our law enforcement partners, as exemplified in this investigation, to aggressively pursue those who ruthlessly traffic these drugs.”
“Like most cities across the nation, Suffolk has seen a dramatic increase in the number of heroin and fentanyl overdoses and deaths,” said Thomas Bennett, Chief of Police, Suffolk Police Department. “Addressing this issue has become a priority for our agency, not only from an enforcement perspective but also from an emergency treatment standpoint.”
Tillery faces a maximum penalty of 20 years in prison, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the DEA’s Washington Field Division; and Thomas E. Bennett, Chief of Police, Suffolk Police Department, made the announcement after his arrest and initial appearance today. Assistant U.S. Attorney William D. Muhr is 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. 2:16cr77.
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.
Dorchester Man Sentenced to 30 Years in Prison for Sex Trafficking of MinorsRead the Press Release
BOSTON – A Dorchester man was sentenced today in U.S. District Court in Boston in connection with a long-running, cross-country teen sex trafficking operation and ordering a witness against him to be killed.
Raymond Jeffreys, a/k/a “Skame Dollarz,” a/k/a “Frenchy,” 28, of Dorchester, was sentenced by U.S. District Court Judge Denise J. Casper to 30 years in prison and five years of supervised release. In January 2016 he pleaded guilty sex trafficking,tampering with a witness by attempting to kill him, and making false statement to a federal agent.
“Raymond Jeffreys devastated the lives of his victims,” said United States Attorney Carmen M. Ortiz. “He feigned affection, instilled fear and used violence to control these young women. While no amount of jail time will undo the trauma he inflicted, his sentence demonstrates that those who violate the standards of human decency will face the force of justice.”
“With the identification and rescue of 20 victims in this case, and the lengthy prison sentence for one of those responsible, law enforcement has just dealt a serious blow to those who think they can sell a person in Boston for commercial gain,” said Special Agent in Charge Matthew Etre, of HSI Boston. “HSI and the Boston Police Department refuse to stand idly by, and will continue to aggressively pursue criminals who engage in sexual slavery at the cost of the victim’s lives.”
“This defendant preyed on the most vulnerable young women and girls and exploited them for his own selfish gain,” said Boston Police Commissioner William Evans. “I want to acknowledge the work of the Boston Police Department's Human Trafficking and Homicide Units and great collaboration and cooperation with our Federal law enforcement partners who investigated and prepared to prosecute this case.”
From 2006 to May 2014, Jeffreys, along with co-defendant Corey Norris, and others, trafficked women and minor girls, in Massachusetts, Maine, New Hampshire, Vermont, Rhode Island, Connecticut, Pennsylvania, New Jersey, New York, Maryland, Nevada, Georgia, Florida, and California. Jeffreys targeted vulnerable girls and women, including those who were poor and homeless, drug addicts, and those who were already working as prostitutes. Many of the women either had children when they met Jeffreys and became pregnant with his child. Jeffreys used a variety of techniques to persuade and manipulate the women, including making promises about providing for them and their children, and then only doing so if the women performed acts of prostitution. Jeffreys used a variety of techniques to control the girls and women, including by threatening the women that he would kill them. Jeffreys also taught other men how to engage in sex trafficking and worked with other men as “pimp partners” or “p partners” to share resources, such as car rides, hotel rooms, and payment for online advertisements.
During today’s sentencing hearing, Judge Casper stated, “the labels of these crimes do not convey the true harm you have caused.” After discussing the defendant’s criminal history, Jude Casper said, “I don’t accept that violence has to beget violence. Particularly where the victims were selected for their vulnerability. Judge Casper also stated that on other cases, she “struggled mightily” to impose sentences of this magnitude, but today, “I have not struggled so mightily.”
In January 2016, co-defendant Norris was sentenced to 15 years in prison.
The charge of tampering with a witness by attempting to kill him or conspiring to do so provides a sentence of no greater than 30 years in prison, five years of supervised release, a fine of $250,000, and restitution. Each of the charges of sex trafficking by force, fraud or coercion, provides for a mandatory minimum sentence of 15 years in prison and a maximum sentence of a lifetime in prison, a minimum of five years and a maximum of a lifetime of supervised release, a fine of $250,000, and restitution. Each of the charges of sex trafficking of a minor provides for a mandatory minimum sentence of 10 years in prison and a maximum of a lifetime in prison, five years of supervised release, a fine of $250,000, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz, HSI SAC Etre and Commissioner Evans, made the announcement today. The case was investigated by Homeland Security Investigations, the Boston Police Department’s Human Trafficking and Homicide Units, and the Federal Bureau of Investigation.
The U.S. Attorney’s Office also wishes to recognize and thank Shawn Meehan, Resident Agent in Charge of the Homeland Security Investigations’ Portland, Maine Office; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Aaron Steps, Supervisory Senior Resident Agent in Charge of the FBI Maine Office; the Suffolk County District Attorney’s Office; Cumberland County (Maine) District Attorney’s Office; the United States Attorney’s Office for the District of Maine; the Massachusetts State Police; the Portland (Maine), Old Town (Maine), Braintree, and South Portland (Maine) Police Departments; the Maine Drug Enforcement Agency; and the Cumberland County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Amy Harman Burkart and David D’Addio of Ortiz’s Civil Rights Enforcement Team and Special Assistant U.S. Attorney David S. Bradley from the Suffolk County D.A.’s Office.
Donora Man Charged in Series of Mon Valley Bank RobberiesRead the Press Release
PITTSBURGH – A Washington County resident has been indicted by a federal grand jury in Pittsburgh on charges of bank robbery, United States Attorney David J. Hickton announced today.
The three-count indictment, returned on May 17, named Aaron Huey, age 39, of Donora, PA, as the sole defendant.
According to the indictment, Huey committed the unarmed robbery of the Frick Tri-County Federal Credit Union, located at 235 Pittsburgh Street, in Uniontown, PA, on Dec. 11, 2015, and the armed robbery of the PNC Bank at 101 South Vine Street, in Carmichaels, PA, on March 16, 2016. The indictment also alleges that Huey attempted to rob the PNC Bank at 141 Pennsylvania Avenue, in Charleroi, PA, on March 18, 2016.
For the unarmed and attempted bank robberies, the law provides for a maximum total sentence of up to 20 years in prison, a fine of $250,000, or both. For the armed bank robbery, the law provides for a maximum total sentence of up to 25 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Conor Lamb is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, the Charleroi Regional Police Department, and the Uniontown Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Derby Line Woman Jailed for EmbezzlementRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Amy C. Fletcher, age 45, of Derby Line, Vermont, appeared for sentencing yesterday on her fraud and tax evasion convictions before Judge J. Garvan Murtha in the U.S. District Court in Brattleboro, Vermont. In June 2015, Fletcher pleaded guilty to wire fraud and filing a false tax return. As office manager of Derby Line Ambulance in 2009-12, she embezzled nearly $290,000. Derby Line Ambulance provides ambulance services to five northern Vermont towns. Now under different management, during 2009-12 it was operated by Brian and Amy Fletcher, then husband and wife. At sentencing yesterday before Judge Murtha, defense counsel David Sleigh urged a non-incarcerative sentence, protesting “mass incarceration.” The United States, represented by Assistant U.S. Attorney Bill Darrow, urged a jail term. Judge Murtha sentenced Fletcher to 15 months’ imprisonment, ordering her to report to the Bureau of Prisons on June 21, 2016, to serve her sentence. Judge Murtha also ordered Fletcher to pay restitution to Derby Line Ambulance in the amount of $289,864. The case was investigated by the Criminal Investigation Division of the Internal Revenue Service and the Federal Bureau of Investigation.Defendant Sentenced to 14 Years in Prison for Sex Trafficking of a Child in MarylandRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Rayvon O. Archibald, a/k/a “P Money,” “Keyvon M. Malone,” “Keyvon Smith,” and “Scoobie,” age 26, of Boston, Massachusetts, today to 14 years in prison followed by five years of supervised release for sex trafficking of a child. Judge Russell also ordered that upon his release from prison, Archibald must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Baltimore County State’s Attorney Scott Shellenberger.
According to his guilty plea, for several years Archibald was involved in recruiting, harboring and transporting individuals to engage in commercial sex acts. From April 2012 to March 2014, Archibald used the internet to buy and post advertisements for commercial sex in several states.
On March 5, 2014, Rayvon O. Archibald encountered a 13 year old girl in New York City. He provided her with alcohol and drugs. The next day, Archibald transported the girl by bus from New York to the Baltimore area, then by taxi to co-defendant Jonathan Went’s apartment in Gwynn Oak, Maryland. Archibald did not inform the girl before she left New York that she would be caused to engage in commercial sex.
On March 6, Archibald and Went posted an ad on a commercial sex website soliciting customers for the girl, which listed the number for a phone used by Archibald and Went, and an email controlled by Archibald. They also instructed the girl on pricing for commercial sex acts and provided her with a document that included prices.
After the ad was posted, numerous customers responded to the ad and they were directed to come to Went’s apartment. Archibald and Went caused the girl to meet clients in the living room. Multiple potential clients arrived at the apartment seeking sex for pay. At least one customer engaged in a sex act with the girl. The money paid by customers was given to Archibald and Went.
On the morning of March 7, 2014, the girl left Went’s apartment while Archibald and Went were asleep. According to court documents, the girl called 911 from Went’s phone. The police found the girl at a nearby intersection. The girl gave police the address of Went’s apartment and told police that there were two men and a woman inside the location. The girl reported that she was held against her will inside Went’s apartment building. The girl identified Archibald as her captor and stated that he had assaulted her.
According to court documents, police went to the apartment and arrested Went, Archibald and a woman. Both the girl and the woman who was arrested independently told police that one customer who came to the apartment demanded his money back because the girl was too young. The woman and the girl gave the money back to the customer, and when they told Archibald what happened, he slapped them both.
Archibald and Went remain detained.
Jonathan M. Went, a/k/a “Jon Maxx,” and “Max Out,” age 31, of Massachusetts and Gwynn Oak, Maryland, previously pleaded guilty to conspiring to commit sex trafficking of a child. He faces up to life in prison at his sentencing scheduled for July 5, 2016, at 9:30 a.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Maryland State Police and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Sandra Wilkinson, who prosecuted the case.
Dallas Man Faces up to 20 Years in Federal Prison on Wire Fraud ConvictionRead the Press Release
DALLAS — Kevin Kenard Howard of Dallas appeared in federal court today, before U.S. Magistrate Judge Irma C. Ramirez, and pleaded guilty to one count of wire fraud stemming from his work with Ellis Wamsley, IV and the FAIM Economic Development Corporation, announced U.S. Attorney John Parker of the Northern District of Texas.
Howard, 34, faces a maximum statutory penalty of 20 years in federal prison, a fine not to exceed $250,000, or twice any pecuniary gain to the defendant, and restitution. He will remain on bond pending sentencing, which is set for September 1, 2016, before U.S. District Judge Jane J. Boyle.
Ellis Wamsley, IV, of Grand Prairie, Texas, a co-defendant in the case, has filed plea papers and is scheduled to plead guilty on May 24, 2016, to one count of engaging in a monetary transaction with property derived from specified unlawful activity and aiding and abetting.
According to documents filed in the case, Wamsley formed FAIM in 2003, and in 2010, as its CEO, hired Howard to work as a financial consultant to assist in recruiting investors for FAIM. In summer 2010, while trying to recruit these investors to supply additional cash revenue for FAIM, Howard and Wamsley recruited “M.R.,” the owner/operator of “Company R,” in Flower Mound, Texas. They advised M.R. that a proposed joint venture between FAIM and Company R would generate funding for FAIM economic development projects in the southern sector of Dallas and throughout the U.S.
In August 2010, M.R. wired $2 million to a FAIM brokerage account at Charles Schwab. Approximately one month later, Wamsley transferred $1,791,703 in Company R’s investment funds from that account to a FAIM Merrill Lynch brokerage account that he had established and to which M.R. did not have access.
Wamsley told Howard that Howard would be FAIM’s primary point of contact with M.R. After the first few trades, the joint venture began to lose money. Wamsley told Howard to hide the investment losses from M.F. Howard agreed to, and did, lie to M.R. about the trading losses and the true balance of the investment account.
Howard knowingly participated in the fraud scheme by sending lulling emails to M.R. that contained false information about the true balance and value of the account. In November 2010, Howard sent an email to M.R. falsely assuring M.R. that profits in the investment account had increased. In December 2010, Howard sent an email to M.R. in which he falsely represented that the account balance was $2,436,611. In January 2011, Howard sent another email saying the total account balance was $2,500,000. In fact, from October 2010 to August 2011, Howard, at Wamsley’s instruction, sent several emails to M.R. with the specific intent to deceive, mislead and confuse M.R. about the account’s true balance. Wamsley and Howard also concealed that fact that Wamsley was diverting some of the funds in the account for his own personal benefit and use.
For instance, from October 2010 through April 2012, Wamsley fraudulently transferred more than $1.7 million of Company R investment funds to FAIM’s business accounts, and he unlawfully spent those funds for his, Howard’s and others’ personal benefits. For example, in November 2010, Wamsley used $40,024 in Company R investment funds to purchase a 2008 Cadillac Escalade for Howard; $41,764 of investment funds to purchase a 2008 Cadillac Escalade for a family member; and $125,477 in investment funds to purchase a 2007 Aston Martin for himself. Wamsley also used more than $200,000 in investment funds to host a Super Bowl fund-raising event in 2011.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. This defendant is the 13th defendant convicted since July 2014 as part of that initiative.
Internal Revenue Service Criminal Investigation investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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DEA Task Force Takes Down Fentanyl Distribution RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, New Britain Police Chief James P. Wardwell and Wethersfield Police Chief James Cetran, today announced that the following nine individuals were arrested today on federal charges related to the distribution of fentanyl, a powerful synthetic opioid:
JOHN CASADEI, 45, of Morris
JARED McBRIARTY, 31, of Bristol
KYLE PETERSEN, 30, of New Britain
CHARLES ORCUTT, 27, of Windsor
CARLOS ENRIQUEZ, 27, of Enfield
JESUS CORREA, 41, of New Britain
ISAAC ORTIZ, 35, of Newington
TOMASZ ZIOBRON, 30, of New Britain
DOMINIQUE GRECO, 29, of CromwellAs alleged in documents and statements made in court, in late December 2015, the DEA’s Hartford Task Force and New Britain Police Department received information that PETERSEN was selling fentanyl powder, prescription pills and marijuana. DEA Task Force Officers and the New Britain Police Department Special Services Unit initiated an investigation and made multiple controlled purchases of fentanyl from PETERSEN. Subsequent court-authorized wiretaps revealed that CASADEI supplied fentanyl and various prescription pills to McBRIARTY, who in turn supplied them to PETERSEN. Wiretaps further revealed that CASADEI used the darknet, a network that can only be accessed through the use of specific software or authorizations, to purchase large quantities of fentanyl that were shipped from China. CASADEI also obtained and distributed various prescription pills, including Xanax and oxycodone.
It is alleged that PETERSEN sold fentanyl and other drugs to ORCUTT, ENRIQUEZ, CORREA, ORTIZ, ZIOBRON, and prescription pills to GRECO. These defendants then sold the drugs throughout central Connecticut.
“We believe that this groundbreaking investigation has identified a major supplier of fentanyl in our state,” said U.S. Attorney Daly. “Fentanyl is a highly dangerous synthetic opioid which can be up to 50 times more potent than heroin. In the wrong hands, it’s deadly. Here in Connecticut, like other parts of the country, we are battling an escalating epidemic of opioid abuse. Tragically, this epidemic is leading to an increasing number of opioid deaths. Toxicology reports for these overdose victims often reveal the presence of fentanyl. This investigation has provided us with an important window into how fentanyl is winding up on our streets. I thank the DEA’s Hartford Task Force and all of it members – notably the New Britain and Wethersfield Police Departments – and our other federal, state and local law enforcement partners, for their superb efforts to shut down this deadly fentanyl distribution network. These defendants will now experience the full force of federal law.”
“Opioid abuse is at epidemic levels, and fentanyl and heroin are claiming too many lives in Connecticut and throughout New England,” said DEA Special Agent in Charge Ferguson. “Those affected are our neighbors, co-workers, friends and family members. DEA is committed to bringing to justice those who put these deadly poisons on our streets and in the hands of those struggling with addiction. This investigation demonstrates the strength of our collaborative law enforcement efforts in Connecticut to aggressively pursue anyone who distributes these lethal drugs.”
“After several months of intensive investigation, we are here today to report that this major source of fentanyl has been disrupted,” said New Britain Police Chief Wardwell. “It is now up to us not to relax and to recommit to battling the increase of opioids on our streets. The New Britain Police Department is a proud and active partner with the DEA as we work together to eradicate these drugs and stop the death and heartache they leave behind. This investigation is one example of how effective our collaboration is and how committed we all are in addressing these issues that impact our city, as well as towns across the northeast and country. Today, we have made some headway. Tomorrow we will be right back at it to show those who want to bring these poisons into our communities that we will not stand for it – not now – not ever.”
“I can’t express my gratitude for allowing us to be involved and for being able to contribute to such an important investigation,” said Wethersfield Police Chief Cetran. “I am very proud of our participation in this operation that has resulted in the taking off the streets a significant amount of fentanyl and those who traffic in this drug. Fentanyl has killed too many people in our state. This is a prime directive of law enforcement: Protecting people.”
CASADEI, McBRIARTY and PETERSEN are charged by criminal complaint with conspiracy to distribute, and to possess with intent to distribute, 400 grams or more of fentanyl, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. PETERSEN is also charged with possession with the intent to distribute, and distribution of, at least 400 grams of fentanyl.
ORCUTT, ENRIQUEZ, CORREA, ORTIZ, ZIOBRON and GRECO are charged by complaint with conspiracy to distribute, and to possess with intent to distribute, controlled substances, an offense that carries a maximum term of imprisonment of 20 years.
In association with today’s arrests, law enforcement executed 10 search warrants and seized approximately 2.5 kilograms of suspected fentanyl, approximately two kilograms of suspected molly, approximately 50,000 suspected counterfeit Xanax pills, approximately 40 pounds of marijuana, butane hash oil (BHO) and steroids. Agents also seized approximately $500,000 in cash.
Following their arrests, the defendants appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford. Eight of the defendants are detained, and ORCUTT was released on a $10,000 bond.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Wethersfield and Willimantic Police Departments. Agencies assisting the investigation include the U.S. Marshals Service, U.S. Postal Inspection Service, Homeland Security Investigations, New Britain State’s Attorney’s Office and Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney S. Dave Vatti.
Crownpoint Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Shiloh Y. McLemore, 36, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 63 months in prison followed by three years of supervised release for his assault conviction.
McLemore was arrested on April 15, 2015, on a criminal complaint charging him with assault with a dangerous weapon. The complaint alleged that on April 8, 2015, law enforcement officers responded to the campus of the Navajo Technical University (NTU), where McLemore had assaulted and battered a woman and had then barricaded himself inside an apartment on the NTU campus. When approached by a Navajo man, McLemore took out a handgun, loaded the handgun with a full magazine of bullets, chambered a bullet, and threatened the man.
McLemore was subsequently indicted on May 12, 2015, and charged with assault of a male victim with a dangerous weapon, assault of a female victim with a dangerous weapon, and using and brandishing a firearm during a crime of violence. The indictment alleged that McLemore committed the three crimes on April 8, 2015, on the Navajo Indian Reservation in McKinley County, N.M. On Sept. 17, 2015, McLemore pled guilty to the two assault charges.
The Gallup office of the FBI and the Crownpoint office of the Navajo Nation Department of Public Safety investigated this case, which was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Coronado Businessman and Arizona Lawyer Steal More Than $30 MillionRead the Press Release
Assistant U.S. Attorney Emily W. Allen (619) 546-9738
NEWS RELEASE SUMMARY – May 19, 2016
SAN DIEGO – San Diego businessman Courtland Gettel and Arizona attorney Jeffrey Greenberg pleaded guilty this week to participating in a massive scheme in which they obtained tens of millions of dollars in fraudulently-obtained loan proceeds.
The conspirators generated the money by taking out huge loans against multi-million dollar homes in La Jolla and Del Mar, then pretending those loans had been paid off in order to secure more loans from new lenders -- who were led to believe by forged documentation that the homes were debt-free.
To pull of the scam, Gettel, Greenberg, and their co-conspirators created forged real estate lien “releases” and recorded fraudulent records at the San Diego County Recorder’s Office, wreaking havoc on the chain of title for these homes. They then defaulted on their obligations to repay the loans, leaving the lenders to dispute the validity of their secured interests, and causing millions of dollars in losses from unpaid loans.
Gettel ran a real estate investment firm known both as Conix, Inc. and Variant Commercial Real Estate (“VCRE”), which refurbished single-family homes, purchased distressed debt, and purchased and refurbished commercial real estate projects. As part of his plea, Gettel admitted that he and his informal business partner acquired high-end homes in La Jolla and Del Mar by pretending to real estate lenders that they intended to use the homes as luxury rental properties—although in fact, they lived in the properties along with their families. When they needed money to fund other business deals, Gettel and his partner began negotiating with new lenders, pretending that the first loans never existed or had already been paid off.
Their attorney, Greenberg, admitted that he used his expertise as a lawyer to generate and record fraudulent records, making it appear that prior loans were paid off, to help close the fraudulent deals. This went on for more than a year, during which time Gettel, Greenberg, and their co-conspirators obtained at least $33.6 million in fraudulent proceeds from no less than eight multi-million dollar fraudulent loans.
Greenberg also pled guilty to participating in an equally massive fraud that occurred in Tucson, Arizona, where he worked for Conix and VCRE. In that scheme, Greenberg admitted that he and his co-conspirators obtained tens of millions of dollars in unearned payments from a real estate financing firm by creating false invoices and expense reports for work purportedly performed on their commercial real estate portfolio. Instead of using the money to refurbish their commercial properties as required, Greenberg and his co-conspirators used the tens of millions of dollars they generated for their own personal use and benefit.
Gettel relied on Greenberg to help hide the true nature of the transactions. He directed the proceeds to Greenberg’s attorney-trust bank accounts before distributing the money further. He also relied on other co-conspirators to forge his own signature and then fraudulently notarize the forgeries, so documents would be harder to trace back to the perpetrators. In late 2014, the lenders uncovered the fraud, and began to discover that their secured interests in the properties were worthless. Gettel and his partner agreed to conceal their fraud by falsely denying any knowledge about the fraudulent loans. They also tried to cover up the scheme further by creating yet more fraudulent documents to hide their tracks. Another co-conspirator – who was a notary public – notarized fraudulent documents, hid or destroyed her notary book, and then falsely reported it lost to the California Secretary of State.
As part of their pleas, Gettel and Greenberg agreed to forfeit the proceeds they stole from the various lenders and pay restitution to the victims.
“Wealth and privilege will not insulate anyone from aggressive prosecution for their crimes,” said U.S. Attorney Laura E. Duffy. “These defendants thought they could hide behind their status to pull off an extraordinary fraud—but as this case demonstrates, I am devoted to making sure the playing field is level and all criminals are held accountable.”
“The defendants in this case used their professional business and legal experience to feed their greed,” said FBI Special Agent in Charge, Eric S. Birnbaum. “The FBI is committed to pursuing those who engage in fraudulent schemes that line their pockets at the expense of others.”
Greenberg, who was charged in Tucson and San Diego before the cases were transferred to the Southern District of California, made his initial appearance in San Diego on May 17, 2016 before U.S. Magistrate Judge Karen S. Crawford, and entered his guilty pleas the following day. Gettel made his initial appearance today, also before Judge Crawford. Both defendants are scheduled to be sentenced before U.S. District Judge William Q. Hayes on August 8, 2016.
The swift resolution of this elaborate fraud case is the result of close collaboration and invaluable assistance from the U.S. Attorney’s Office in the District of Arizona, FBI Tucson Resident Agency and the IRS Criminal Investigations in Tucson.
DEFENDANTS:
Jeffrey Greenberg, 16CR1076-WQH and 1077-WQH Age: 66 Tucson, AZ
Courtland Gettel, 16CR1099-WQH Age: 42 Coronado, CA
CHARGES
Wire Fraud Conspiracy, in violation of 18 U.S.C. § 1349
Maximum Penalties: 20 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
Conspiracy, in violation of 18 U.S.C. § 371
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
AGENCIES
Federal Bureau of Investigation
Construction Company Owner Charged with FraudRead the Press Release
PHILADELPHIA - Yong Quan Zheng, 61, of Philadelphia, PA, was charged today by Information with mail fraud, tax fraud, and transporting illegal aliens, announced United States Attorney Zane David Memeger. Zheng was the owner of Hong Fai General Contractors, a construction company which performed general construction and remodeling work in the greater Philadelphia area. In addition to his ownership of a construction company, Zheng also owned a money service business which he operated at the same address as well as multiple residential and commercial properties in the Philadelphia area.
The Information alleges that Zheng employed workers and independent contractors at his businesses, many of whom he paid in cash, and that he failed to collect and pay over to the Internal Revenue Service employment and income taxes based on the wages paid to his workers. Some of the workers had entered or remained in the United States in violation of United States immigration laws. The Information further alleges that Zheng used the United States mail to send materially false information to the Pennsylvania Department of Labor and Industry regarding the number of individuals that he employed and the wages paid to the worker, in furtherance of a scheme to defraud the Pennsylvania Department of Labor and Industry out of unemployment compensation insurance premiums.
If convicted, Zheng faces a substantial period of incarceration, a $400 special assessment, a possible fine, and a period of supervised release.
The case was investigated by Homeland Security Investigations, the Federal Reserve Board Office of Inspector General, the Department of Labor Office of Inspector General, and IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Judy Smith and Floyd J. Miller.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Community Colleges Targeted in Financial Aid Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Ernest Xavier Taylor, Jr., 31, and Tracie Laverne Mixon, 34, both of Hammond, Louisiana, were indicted by a federal grand jury today on charges relating to stealing the identities of four people to fraudulently obtain federal student loans from Northern Virginia Community College (NVCC) and other schools.
According to the indictment, Taylor Jr. and Mixon are charged with conspiracy, mail fraud, wire fraud, financial aid fraud, and aggravated identity theft. In 2015, Taylor Jr. and Mixon engaged in a conspiracy to use the identity of four different people to fraudulently obtain federal student aid from NVCC and other schools. The four different people included three who were in prison at the time their identities were used, and the fourth person was recovering in a military hospital after suffering injuries while deployed as a member of the U.S. Army in Afghanistan.
The indictment alleges that Taylor Jr. and Mixon would use the names, dates of birth, and social security numbers of these four different people on various submissions, but Taylor Jr. and Mixon would supply their own addresses, emails, and telephone numbers to ensure that communications from the Department of Education, NVCC, and the other schools would be directed to Taylor Jr. and Mixon. The indictment also alleges that recorded telephone calls captured Taylor Jr. pretending to be the four different identities when calling to check on the status of financial aid from NVCC. Taylor Jr. and Mixon’s fraudulent actions allegedly caused NVCC and other schools to offer approximately $67,000 in federal student aid to the various identities used by Taylor Jr. and Mixon.
In addition to NVCC, the other schools targeted by Taylor Jr. and Mixon are: Front Range Community College; Community College of Denver; Portland Community College; and Black Hills State University.
Special Assistant U.S. Attorneys Brian D. Harrison and Edward P. Sullivan are prosecuting the case. The case is being investigated by the Department of Education, Office of Inspector General and the FBI. The investigation received assistance from the Northern Virginia Community College Police Department.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-CR-118.
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.
Columbia Man Sentenced to 19 Years for Leading Heroin Trafficking ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man was among five co-defendants sentenced in federal court for leading a conspiracy to distribute heroin in which one person died of an overdose.
James Delarosa Borden, also known as “Jimmy White,” “Detroit,” and “D,” 41, of Columbia, was sentenced by U.S. District Judge Brian C. Wimes on Tuesday, May 17, 2016, to 19 years and seven months in federal prison without parole.
On Jan. 5, 2016, Borden pleaded guilty to participating in a conspiracy to distribute heroin and to distributing heroin.
Borden was the leader of the drug-trafficking conspiracy responsible for distributing more than a kilogram, and up to three kilograms, of heroin. According to court documents, information from cooperating sources indicated that Borden was regularly obtaining 100 grams of heroin from various sources. Borden admitted that he had been obtaining heroin from sources in Detroit, Mich., and St. Louis, Mo.
Borden also admitted that he supplied heroin to Aaron Boren, who died after ingesting the heroin supplied by Borden.
Borden, who has an extensive history of violent criminal behavior, was sentenced as a career offender. For example, while on bond for the 1998 armed robbery of a St. Louis jewelry store (committed while on parole for an earlier offense), Borden committed an armed robbery in Detroit. Borden carjacked a victim in Detroit and drove the victim’s car to a church, where he pulled a revolver and robbed individuals of the cash box containing monies raised during a fundraiser.
Borden was among five co-defendants who were sentenced on Tuesday, May 17, 2016. Borden’s cousin and co-defendant, James Delvico Borden, 39, of Columbia, was sentenced to eight years and one month in federal prison without parole. Co-defendant Javis Deonn Wideman, 38, of Columbia, was sentenced to five years in federal prison without parole. Co-defendants Matthew Alec Ell, 21, and his girlfriend, Angelic Melanie Polston, 21, both of Columbia, received probationary sentences.
By pleading guilty today, Ell admitted that he participated in a conspiracy to distribute 100 grams or more of heroin in Boone County, Mo., from July to October 2014.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the Jefferson City, Mo., Police Department and MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group).
Chico Man Found Guilty of Child Pornography OffenseRead the Press Release
SACRAMENTO, Calif. — After a three–day trial, a federal jury found Frank W. Coon, 51, of Chico, guilty today of one count of receipt of child pornography, Acting United States Attorney Phillip A. Talbert announced. The trial was held before United States District Judge Garland E. Burrell Jr.
According to evidence presented at trial, when agents executed a search warrant in March 2012, they found Coon inside his apartment at the keyboard of a computer. That computer was later found to be filled with child pornography videos. It was ultimately determined that over the course of approximately seven months, Coon used peer-to-peer software to download 117 child pornography videos. Several videos involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Matthew G. Morris and Rosanne Rust are prosecuting the case.
After the jury verdict, the defendant was remanded into custody.
Coon is scheduled to be sentenced by Judge Burrell on August 5, 2016. Coon faces a mandatory minimum sentence of five years and a maximum possible penalty of 20 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety.
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Chicago Investment Advisor Charged with Fraud for Allegedly Misappropriating More Than $1.5 Million in Client FundsRead the Press Release
CHICAGO — The owner of Chicago financial firms defrauded dozens of clients out of more than $1.5 million by pocketing most of their money instead of investing it, according to federal criminal charges filed today.
Between 2010 and 2013, CLAYTON ANDREW COHN controlled Chicago-based Marketaction Inc., Marketaction Advisors LLC, and the hedge fund Marketaction Capital Management LLC. During this period, Cohn told potential investors that his firms were thriving from particular trading strategies, and that it had stakes in numerous private equity investments, when in reality there was very little investment activity, according to a criminal information filed in U.S. District Court in Chicago. During this time, Cohn made only minimal investments and instead misappropriated a large amount of his clients’ funds for his own personal benefit, the information states. Approximately 37 investors sustained losses of more than $1.5 million, according to the information.
The information charges Cohn, 29, of Chicago, with one count of wire fraud. An arraignment is scheduled for May 26, 2016, at 10:00 a.m., in federal court in Chicago.
According to the information, Cohn falsely represented to investors and prospective clients that redemption of their investments would be “simple” and “easy,” and would be available on a monthly basis. Cohn also deceived investors by distributing account statements that falsely stated the value of investor accounts, the information states.
Cohn falsely maintained that Marketaction retained a “fund accountant” to calculate the value of the fund, and an “auditor” to annually inspect it, according to the information. Cohn prepared and filed with the U.S. Securities and Exchange Commission false and misleading reports about his hedge fund, including how it was subject to annual audits, according to the information.
The information was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
In August 2013 the SEC, which provided helpful information to the criminal investigation, filed a civil lawsuit against Cohn and Marketaction Advisors LLC.
Wire fraud carries a maximum penalty of 20 years in prison, restitution to be determined by the Court, and a fine of up to $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.
The public is reminded that an information contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant United States Attorney Daniel Gillogly.
Information
Cheektowaga Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Paul Keener, a/k/a Aaron Silverman, a/k/a Paul Robison, a/k/a Scott Walker, 47, of Cheektowaga, NY, pleaded guilty to aggravated identity theft before Chief U.S. District Judge Frank P. Geraci. The charge carries a mandatory penalty of two years in prison.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that in 1996, the defendant escaped from state custody in Colorado. Soon thereafter, Keener purchased false identification documents associated with a confirmed missing person who has been missing from his family in Virginia since 1993. The defendant purchased the documents from a seller on Craigslist for $300.00.
From 1995 to the present, Keener maintained several aliases supported by false identification documents including U.S. passports and driver’s licenses. Law enforcement officials learned of the defendant’s presence in Western New York in January 2016. Using his aliases and false identification documents, Keener has crossed into Canada, registered to vote, applied for and received federal financial student aid, and has obtained Social Security cards.
The plea is the result of an investigation by the Diplomatic Security Service, U.S. Department of State, under the direction of William Ferrari, the Social Security Administration, Office of Inspector General, under the direction of Edward J. Ryan, and the United States Marshals Service, under the direction Charles Salina.
Sentencing is scheduled for August 18, 2016 at 11:00 a.m. before Judge Geraci.
California Man Pleads Guilty to Heroin Trafficking ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LUIS CEDILLO, 33, last residing in Sylmar, Calif., pleaded guilty today in Hartford federal court to one count of possession with intent to distribute one kilogram or more of heroin.
According to court documents and statements made in court, on November 14, 2013, members of the Drug Enforcement Administration’s New Haven Task Force followed a white Cadillac Escalade that CEDILLO was driving to a store where CEDILLO purchased items used in the processing and packaging of illegal drugs. After the Escalade traveled to a garage in Wolcott, agents approached CEDILLO, secured him in handcuffs and received consent from the owner of the property to search the garage. Agents observed that the vehicle, which was raised on a lift, had sheet-rock screws coming through the metal of the bottom of the car. After a canine alert, agents located and opened a trap in the rear of the vehicle and retrieved approximately six kilograms of heroin. CEDILLO was arrested at the time.
A subsequent search of a residence in Danbury connected to CEDILLO revealed approximately $400,000 in cash.
CEDILLO has been detained since his arrest. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on August 10, 2016.
This matter has been investigated by the DEA’s New Haven Task Force, which includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Derby and Meriden Police Departments, and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney S. Dave Vatti.
Buffalo Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Dana Washington, 36, of Buffalo, NY, who was convicted of possession with intent to distribute, and distribution of, crack cocaine, was sentenced to 77 months in prison by U.S District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that in January 2013, the defendant sold a half ounce of crack cocaine to a confidential source (CS) working with the Drug Enforcement Administration near Kensington and Fillmore Avenues in Buffalo. Washington sold a second quantity of cocaine to the CS in February of 2013 at William Street and Michigan Avenue in Buffalo.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.Buffalo Man Sentenced for Distributing FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr., announced today that Alexander Snow, 34, of Buffalo, NY, who was convicted of distribution of fentanyl, was sentenced to 27 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Caleb J. Petzoldt, who handled the case, stated that between December 2014 and January 2015, the defendant distributed fentanyl in the city of Buffalo which included six undercover controlled purchases by the Drug Enforcement Administration.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Buffalo Man Pleads Guilty to Trying to Renew the Passport of A Dead ManRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Porfirio Rosa, a/k/a Luis Rosa, 74, of Buffalo, NY, pleaded guilty to making false statements in application for a passport before Chief U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that on October 9, 2015, the Western Passport Center in Tucson, Arizona received a United States Passport Renewal Application from an individual identifying himself as Luis Rosa. The application was mailed from the defendant’s residence in Buffalo. As proof of identity and citizenship, the defendant submitted an expired U.S. passport issued in 2003 in the name of Luis Rosa.
Further investigation revealed that the name, social security number, and date of birth provided on the passport renewal application and original passport belonged to a man who died in 1995.
At the time of his arrest, the defendant was in possession of several New York State identification cards as well as federal Social Security cards containing several different names, dates of birth, and social security numbers.
The plea is the result of an investigation by the Diplomatic Security Service, U.S. Department of State, under the direction of William Ferrari and the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan.
Sentencing is scheduled for August 18, 2016 at 11:30 a.m. before Judge Geraci.
Brooklyn Man Admits Paying Others to Purchase 44 Firearms for His UseRead the Press Release
PITTSBURGH - A resident of Brooklyn, New York, pleaded guilty in federal court to a charge of making a false statement in connection with the acquisition of firearms, United States Attorney David J. Hickton announced today.
Michael Bassier, 31, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Bassier used straw purchasers to buy firearms for him in the Western District of Pennsylvania. The straw purchasers would state, at the time of purchase, that they were the actual buyers of the firearms, when in fact Bassier was the actual buyer. He provided money to the straw purchasers and told them what to buy, and then took possession of the firearms afterward. Overall, Bassier aided and abetted the purchase of 44 firearms between December 2014 and August 2015.
Judge Schwab scheduled sentencing for December 1, 2016. The law provides for a total sentence of ten years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Bassier remain detained.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with detectives from the City of Pittsburgh Bureau of Police and the Allegheny County Sheriff’s Office, conducted the investigation leading to the superseding indictment in this case. Assistant United States Attorney Conor Lamb is prosecuting this case on behalf of the government.
Brevard, N.C. Man Sentenced to 17 Years in Prison on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Martin Reidinger sentenced today Robert Joseph Lamb, 30, of Brevard, N.C., to 207 months in prison on child pornography charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Lamb, a/k/a “Ezra,” was also sentenced to a lifetime of supervised release and was ordered to register as a sex offender.
U.S. Attorney Rose is joined in making today’s announcement by Special Agent in Charge Alan K. Flora of SBI Computer Crimes Unit and Commander of the North Carolina Internet Crimes Against Children Task Force, Sheriff David Mahoney of the Transylvania County Sheriff’s Office and Chief Tammy Hooper of the Asheville Police Department.
According to filed documents and statements made in court, on or about January 7, 2014, the Transylvania County Sheriff’s Office received a tip that Lamb possessed images and videos of child pornography. A deputy with the sheriff’s office acting in an undercover capacity first contacted Lamb via the Internet. In a subsequent phone conversation, Lamb told the officer that he possessed child pornography and the two arranged to meet after the undercover officer expressed an interest in viewing Lamb’s child pornography collection. According to court records, Lamb met the undercover officer and the two went to Lamb’s residence, where Lamb proceeded to show the officer numerous images and videos of child pornography.
Court records show that Lamb had an extensive collection of child pornography, some of which depicted children under the age of five being sexually abused by adults. According to court records, over the course of the meeting, Lamb expressed an interest in engaging in sexual contact with young children. Lamb discussed with the undercover officer the idea of kidnapping, sexually abusing and murdering a child. According to court records, when the undercover officer told Lamb that he had a six-year-old daughter, Lamb offered to pay the officer to engage in sexual contact with her, and gave the officer $100 as “down payment.”
On October 31, 2014, law enforcement executed a search warrant at Lamb’s residence. A forensic analysis of devices seized from Lamb’s residence revealed that Lamb possessed an extensive collection of child pornography, consisting of 816 images and 72 videos. According to court records, Lamb had also distributed at least 314 times some of his child pornography images and videos via video and photo sharing applications and the Internet.
“Lamb had a sick appetite for watching horrific videos depicting the sexual abuse of very young children. His extensive child pornography collection included images that were among the worst ever described to the court. Thanks to the excellent investigative efforts of our law enforcement partners we have secured a long prison sentence against Lamb and have successfully removed this dangerous child predator from our community,” said U.S. Attorney Rose.
“Men like Lamb are the reason that the ICAC Task Force exists. Lamb epitomizes the type of dangerous predator we hunt. Even though we deal with this subject matter every day, the Lamb case was particularly horrific to those of us involved. We learned on the morning of Halloween that Lamb was fantasizing about kidnapping, raping and murdering a child. Thanks to the quick response by our partners in the ICAC Task Force, we were able to obtain and execute a search warrant at the home that afternoon, a short time before the first trick-or-treaters appeared on the streets of Brevard. We are very grateful that this case has resolved in such a way that no children were harmed, and a true predator has been removed from that community,” said Special Agent in Charge Flora.
Lamb pleaded guilty in October 2015 to one count of transportation of child pornography and one count of possession of child pornography. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by the SBI, the Transylvania Sheriff’s Office and the Asheville Police Department. These agencies are all members of the North Carolina Internet Crimes Against Children Task Force. The U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Boston City Official Charged with Union-Related ExtortionRead the Press Release
BOSTON – The City of Boston’s Director of the Office of Tourism, Sports and Entertainment was arrested this morning after a federal grand jury indicted him in connection with the extortion of a music festival production company.
Kenneth Brissette, 52, was indicted for extorting a company, which had already contracted with a non-union company to provide workers for a September 2014 festival, to hire members of the International Alliance of Theatrical Stage Employees (“IATSE”), Local 11 (“Local 11”).
According to the indictment, in order to stage its twice-yearly musical festivals, the company was required to apply for and receive permits from the City of Boston for each festival. At the relevant time, Brissette was the Director of the Boston Office of Tourism, Sports and Entertainment, which assists companies seeking to stage events in Boston in securing permits to use at public areas in the city.
It is alleged that between July and September 2014, while the company was awaiting the issuance of certain permits and approvals required for its music festival, Brissette, and at least one other city official, repeatedly advised the company that it would need to hire members of Local 11 to work at the music festival. Local 11 had attempted to obtain work from the company since March 2013. The company told Brissette that it had already entered into a contract with a non-union company and hired all of its labor. Nevertheless, Brissette allegedly insisted that half of the company’s labor force consist of union members, although he ultimately agreed that eight members of Local 11 would suffice. As a result of Brissette’s demands three days before the music festival the company entered into a contract with Local 11 for eight additional laborers and one foreman. Shortly thereafter, the City of Boston issued the necessary permits.
In closely related activity in the summer of 2014, Brissette was involved in pressuring a non-union production company filming a reality television show in Boston to hire union workers. When the Chief of Operations for the City of Boston and the Director of the Massachusetts State Film Office learned that Brissette had been pressuring a non-union film company to hire union workers, they separately told Brissette that it was not legal to withhold city permits based on a company’s union or non-union status and could not discriminate on the basis of whether or not a company was union or non-union.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; and Jonathan Mellone, Acting Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, New York Region made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Laura J. Kaplan and Kristina E. Barclay of Ortiz’s Organized Crime and Gang Unit and Public Corruption Unit, respectively.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bonita Couple Admit Lack of Money Laundering ControlsRead the Press Release
Assistant U. S. Attorney Robert Ciaffa (619) 546-7748
NEWS RELEASE SUMMARY – May 17, 2016
SAN DIEGO – Bonita residents Angelica Padilla and her husband, Valente Marquez, pleaded guilty in federal court today, admitting that they failed to establish and maintain an effective anti-money laundering program in connection with their money transmitting businesses. The guilty pleas were heard before U.S. Magistrate Judge Karen Crawford.
Under U.S. law, any business which provides check cashing, currency exchange, or money transmitting or remittance services, or any person who engages as a business in the transmission of funds, must register with the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). In addition, any such business must establish and maintain an anti-money laundering program including the development of internal policies, procedures and controls.
According to the plea agreements, Padilla and Marquez owned and operated money transmitting businesses in Bonita, through which they accepted and transmitted large amounts of U.S. currency. Although Padilla and Marquez registered their businesses with FinCEN, they admitted that they lied to financial institutions about the true nature of their operations.
Specifically, Padilla operated money transmitting businesses under the names “Giros Express” and “Liberty Metals and Coins,” while Marquez operated a money transmitting business under the name “Cuva.” Both falsely claimed that they were in the business of buying and selling precious metals. All three businesses operated from an office at 4045 Bonita Road.
As part of their plea agreements, Padilla and Marquez agreed to cease operating as money transmitters and to relinquish their licenses. In addition, both agreed to forfeit $400,000.
U.S. Attorney Laura Duffy said, “Those who choose to operate a money transmitting business under U.S. law must fully comply with all federal regulations governing their operations, and will be held to the highest standards to ensure that criminal proceeds do not filter into the financial system.”
The defendants are scheduled to be sentenced on August 8, 2016 at 9 a.m. before U.S. District Judge Cynthia Bashant.
DEFENDANTS Case Number 16cr1075
Angelica Padilla Age: 39 Bonita, CA
Valente Marquez Age: 41 Bonita, CA
SUMMARY OF CHARGES
Failing to Maintain Effective Anti-Money Laundering Program – Title 31, U.S.C., Section 5318(h)
Maximum penalty: 10 years’ imprisonment and $500,000 fine
AGENCY
Immigration and Customs Enforcement’s Homeland Security Investigations
Benton Man Sentenced to 30 Months in Prison for Possession of Illegal WeaponRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Justin Stegall, 30, of Benton, was sentenced to 30 months imprisonment for being in possession of an unregistered short-barreled rifle. United States District Court Judge Billy Roy Wilson, who presided over a two-day trial of Stegall, announced the sentence on Thursday.
A jury found Stegall guilty on February 17, 2016. As presented during trial, on September 10, 2013, Stegall was discovered to have a loaded, unregistered short-barreled rifle in his vehicle, which was located in a shopping center in Benton. Benton Police Department officers had responded to the scene to locate the vehicle after dispatch received a call from a driver who reported that a man had flashed a gun at him in a road rage incident. At sentencing, the victim of the road rage incident testified, and the Court found that Stegall did in fact threaten the other driver.
A vehicle matching the description given by the victim was seen driving into the shopping center. An employee of one of the stores informed the responding officers that she noticed the vehicle because it zoomed through a shopping center parking lot crowded with children and families. This employee then directed police to a neighboring restaurant where they located Stegall, the driver of the vehicle. After Stegall’s arrest officers found the loaded, unregistered short-barreled rifle, along with seven other firearms in his vehicle.
Stegall was also sentenced to serve the maximum three years supervised release upon the completion of his prison term.
The case was investigated by the Benton Police Department and Bureau of Alcohol, Tobacco, Firearms & Explosives, and prosecuted by Assistant United States Attorneys Edward Walker and Erin O’Leary.
Armed Drug Dealer Sentenced to 16 Years for Third Drug ConvictionRead the Press Release
NORFOLK, Va. – Myles Eugene Crandle, 33, of Virginia Beach, was sentenced today to 192 months in prison for conspiracy to distribute heroin and being a felon in possession of a firearm.
Crandle pleaded guilty on February 9. According to court documents, Crandle, who was convicted on federal drug and gun charges in 2008 and had another state felony drug conviction on his record, was caught by Virginia Beach Police with a stolen handgun in August 2015. Later that summer, Virginia State Police seized over 50 grams of heroin laced with acetyl fentanyl that Crandle had sold to another drug dealer, and found evidence of thousands of dollars in additional heroin transactions between the men. The second dealer, Henry Lee Giddens, pleaded guilty to the same heroin conspiracy and to possessing firearms in furtherance of a drug trafficking crime, and was sentenced to 10 years in prison on April 27.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael F. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) Washington Field Office; and Colonel W. Steven Flaherty, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Andrew Bosse prosecuted 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. 2:15-cr-158.
17 Individuals Charged with Drug Trafficking in the Municipalities of San Juan and CatañoRead the Press Release
SAN JUAN, Puerto Rico – On May 17, 2016, a federal grand jury in the District of Puerto Rico returned an indictment against 17 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation and the Puerto Rico Police Department (PRPD), San Juan Strike Force are in charge of the investigation.
The indictment alleges that beginning in 2007, and continuing up to 2015 the organization distributed heroin, crack, cocaine, and marihuana, at Las Monjas Ward in San Juan, and Los Bultrones Alley, in Cataño, and other areas within and near the Municipalities of San Juan and Cataño, Puerto Rico, all for significant financial gain and profit.
The seventeen defendants acted in different roles in order to further the goals of their organization, to wit: leader, managers/drug owners, enforcers, runners, drug processors, facilitators, and sellers. Sixteen defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime.
The defendants are: Franklin A. Valdez-Marcelino, a.k.a. “Popeye”; Omar A. Mangual Lanause, a.k.a. “Omar”; Carlos E. Carrión-Nieves, a.k.a. “Negro”; Raymond Fuentes-Echevarría, a.k.a. “R”, “Raymond”, “Doble Cincuenta”; David Oliveras-Lugo, a.k.a. “Ardilla”; David Manuel Vélez-Torres, a.k.a. “Tripa”, “Tribi”; Orlando Martínez-Núñez, a.k.a. “Irving”, “Elvin”; Frajamilis Maldonado-Cruz, a.k.a. “Coquito”; Luis Manuel Resto-Reyes, a.k.a. “Guitarreño”, “Guitarra”; Emmanuel Mercedes-Morán, a.k.a. “Mono”; Jorge L. Martínez-Rodríguez, a.k.a. “Chito”; Edgardo Lamboy-Ruiz, a.k.a. “Galdo”, “Al-Qaeda”; Frankie Junior Cruz, a.k.a. “Papa”; Erick J. Ortiz-Colón, a.k.a. “Gringo”; Joel Rosa-Robles, a.k.a. “Bobmar”; Carlos A. Sánchez-Rivera, a.k.a. “Casper”; and Victor A. Martínez-Rodríguez, a.k.a. “Vitito”.
The defendants and their co-conspirators routinely possessed, carried, brandished and used firearms of different brands and calibers, including fully automatic weapons, to protect themselves, their drug trafficking organization, maintain control of their drug points, intimidate and retaliate against other drug trafficking organizations and to expand their drug trafficking activities. They used the cellular phones to take pictures of themselves in possession of firearms, and of the drugs that they distributed. They used social media to post pictures of co-conspirators in possession of firearms, to maintain contact with each other, to promote their drug trafficking activities, and to threaten other persons.
“Drug trafficking organizations must be aggressively attacked and dismantled at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The result of this operation is nothing short of significant and it underscores law enforcement’s main goal: to keep drugs out of our neighborhoods. These arrests will keep the law abiding citizens of San Juan and Cataño safer from the inevitable violence that drug trafficking brings.”
“Over the course of three decades, the Los Lobos Gang controlled various communities in Puerto Rico, trafficking narcotics and weapons on a massive scale, while the honest residents of those communities suffered,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Division. “Today, the long term investigation of this criminal enterprise culminated with its dismantlement, by arrests in Puerto Rico and throughout the continental United States. The FBI thanks the United States Attorney, Drug Enforcement Administration, Homeland Security Investigations, the Police of Puerto Rico, and the San Juan Municipal Police Department, for our continued partnership and mission, the goal of which remains the safety and security of Puerto Rico and its citizens.”
Assistant U.S. Attorney Cesar Rivera-Giraud is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.